Transcript of "Consumer Buying Behaviour - Diamond Jewellery"
PRAXIS BUSINESS SCHOOL Consumer Behaviour Project – Diamond Jewellery A report Submitted to Prof. Prasenjit Das PurkayasthaIn partial fulfillment of the requirements of the course Consumer Behaviour On 5th February 2013 By Arunachalam Ramanathan B11010 1
BACKGROUND:The Indian Kings once used diamonds, which are now considered to be as precious stones, aspaperweights! Later, the preciousness was created in the minds of the consumers as royalfamilies wore them as jewels. This created the aspiration for the common man to buy thediamond jewels as it portrayed their richness to their society. This evolution in the mindset ofthe people about diamond jewels, created the urge to understand about the current consumers’buying behaviour and their perception about diamond jewellery.DESIGN OF THE STUDY:Target Group: Women who have purchased atleast three diamond jewels Age: Above 30 years Occupation: HomemakerNo. of interviewees: 2 My Sister: 30-45 years My Mother:>45 yearsMethodology to be used:A questionnaire will be given to the interviewee, so that their decision making process can beunderstood. After this, an in-depth interview will be conducted and will be personallyobserved (during their purchase of a diamond jewel). The interview will be recorded in anaudio format. 2
THE FAMILY AND SOCIAL CLASS: Mother SisterType of Family Nuclear NuclearHousehold Size 3 4Location Urban – Metro Urban – MetroMajor Age Subcultures Baby Boomers Generation XDynamics of Husband- Joint Wife DominatedWife Decision MakingTraditional Family Life Post-Parenthood ParenthoodCycleSocial-Class Profiles Upper Middle Class Upper Middle ClassStereotype Relationship-dictated Achievement driven Only Savings Oriented Partly Savings OrientedThe stereotypes of the women explain the Dynamics of Husband-Wife Decision Making.CRITERIA OF EVALUATION:The parameters that are considered by the respondents to choose their preferred jewel shopare:Mother’sCriteria ofEvaluation: Very Important Important Not Important • Purity of • Customer Service • Ambience of the Gold/Platinum • Jewel Making ShopSister’s Criteria of Very Important • 4C’s – Carat Charges • PeerEvaluation: Weight, Cut, ClarityGold/Platinum Wastage recommendation • Purity of • Jewel and Colour Charges • 4C’s – Carat Weight, Cut, Clarity and Colour • Dosham (daag) free • Dosham (daag) free Advertisement • diamond diamond • Variety of Jewels • Variety of Jewels • Design of the Jewels • Design of the Jewels • Jewel Making Charges • Jewel Wastage Charges • Ambience of the Shop • Customer Service • Brand Name of the Jewel Shop • Peer recommendation • Advertisement 3
KNOWLEDGE OF BRANDS:Sister’s Knowledge of Brands: Acceptable (Evoked Set): Purchased: Kirtilal, Mehta Kirtilal, Mehta Jewellery Known Brands: Jewellery Tanishq, Kirtilal, Khazana Unacceptable Jewellery, Mehta (Inept Set): All Jewellery, GRT Jewellers, Jos Brands Tanishq, Khazana Alukkas, Joy Alukkas, Nalli Jewellers, Kalyan Jewellery, GRT Jewellers, PC Jewellers Jewellers, Jos Alukkas, Joy Alukkas, Nalli Jewellers, Kalyan Jewellers Acceptable (Evoked Set): Purchased: Kirtilal, Mehta Known Brands: Kirtilal, Mehta Jewellery Tanishq, Kirtilal, Khazana Jewellery Jewellery, Mehta Unacceptable Jewellery, GRT (Inept Set): Jewellers, Jos Alukkas, Joy Tanishq, KhazanaAll Brands Alukkas, Nalli Jewellery, GRT Jewellers, Kalyan Jewellers, Jos Jewellers Alukkas, Joy Unknown Brands: PC Alukkas, Nalli Jewellers Jewellers, Kalyan JewellersMother’s Knowledge of Brands:BUYING ROLES: Mother SisterInitiator Herself HerselfInfluencer Husband/Children MotherDecider Whether to buy Husband Herself What to buy Herself Herself Which shop to buy Herself Herself When to buy Herself HerselfBuyer Husband and Her Herself 4
CONSUMER DECISION:Both the respondents are ‘Practical Loyalists’ and they follow a ‘Conjunctive DecisionRule’ (Non-Compensatory rule). They establish a minimum acceptable level for eachattribute present in the criteria of evaluation. Since, they are very particular about all theattributes, they have very less acceptable brands such as Mehta Jewellery and KirtilalJewellery.CONSUMER MOTIVATION: Mother Sister Maslow’s Need Hierarchy: Maslow’s Need Hierarchy: Basic Need: Custom in a marriage Social Affiliation: Social Needs Social Affiliation: Social Status Status Esteem: Prestige McClelland’s Trio of Needs Theory McClelland’s Trio of Needs Theory Need for Affiliation Need for Affiliation Motives To show their peer about the financial wealth of my familyConsumer Both the respondents have frequently bought diamond jewellery and hence, haveBehaviour well-established set of criteria (High LOI in the product). They prefer to buy diamond jewellery either from Mehta or Kirtilal Jewellery (Very less acceptable brands). Routinized Response Behaviour Dissonance Reducing Buying BehaviourCONSUMER INVOLVEMENT:The Diamond Jewellery falls under ‘High Involvement and High Thinking’ quadrant of the‘Learn-Feel -Do Hierarchy Matrix’.Process: Learn: The respondents learn a lot about diamond jewellery by going through the list of parameters (criteria of evaluation) Feel: After evaluating the parameters, the respondents visualise/trial the experience by wearing the diamond jewel Do: After experiencing it, the respondents come to a conclusion about their purchase 5
CONSUMER LEARNING: Mother Sister Motivation To show prestige and financial To show prestige and financial wealth wealth of my family of my family (Cognitive Arousal) (Cognitive Arousal) Cues On seeing my peer group On seeing my peer group or any advertisement Response Will purchase only when my father Will start saving money on a monthly has surplus cash in hand or will basis (like Recurring Deposit or join purchase for a very important any scheme conducted by Mehta function Jewellery or Kirtilal) The stereotype explains the ‘Response (Consumer Learning)’ as my mother (relationship- dictated) is dependent on my father’s income (or prefers to purchase in exchange of gold jewels) whereas my sister (achievement driven) is self-dependent and saves her own money. PERSONALITY: Mother SisterConsumer Dogmatism Low LowSocial Character Other-directed Inner-directedNeed for Uniqueness High HighOptimum Stimulation Level Low Low Both the respondents prefer variety and trendy diamond jewels. (Consumer Dogmatism- Low). Both the respondents prefer unique diamond jewels. (Need for Uniqueness: High) Both the respondents are not willing to take a risk in purchasing a diamond jewel from shops that they are unaware and from the unacceptable jewel shops as it is of high investment. (Optimum Stimulation Level: Low) o Incident:My mother mentioned that she purchases gold jewel from Tanishq because it is a part of the Tata group, which is known for its trust. But, she lost the trust or got the suspicion about the diamond jewels that were displayed as they were categorised into: Consumers who are particular about daag-free diamonds Consumers who are not particular about daag-free diamonds Consumers who prefer American diamonds (artificial diamonds) The respondents differed only in their ‘Social Character’ as it is explained by their stereotypes. 6
Cognitive Personality Factors: Mother SisterNeed for Cognition:High, if the respondent is responsive to High Highproduct related information in anadvertisementInterpersonal Influence:Value expressive, if consumers enhancetheir social standing to be similar to Value Expressive Value Expressivethose with whom they comparethemselves Mother SisterConsumer Materialism:Happiness, if respondents consider that the Happiness Happinesspossessions are necessary for well-being andsatisfaction in lifeFixated Consumption Behaviour: Yes YesYes, if respondents display their possessionsConsumer Ethnocentrism:Yes, if the respondent feels if it is No Yesinappropriate to purchase foreign-madeproductsCONCLUSION:Based on the study conducted on my mother and sister, it was found that, both therespondents have the same decision rule, motivational factors, learning process andpersonality traits. They differed in their ‘Buying Roles’, ‘Social Character’ and ‘Response tothe Cue’ as they were an outcome of their stereotype.Hence, new brands (as unacceptable brands have failed to earn the trust) have to earn the trustamongst families having a relationship-dictated mother and an achievement-driven daughter(who are well aware about the product category) by meeting their criteria of evaluation. 7