A REPORT

ON

‘Brand Management in the Emerging Jewellery

Industry in India.’

By:
SHATANJAY DHAMEJA
09BSHYD0771

IBS Hyderabad Page 1

 A REPORT
ON

‘Brand Management in the Emerging Jewellery

Industry in India.’
By

SHATANJAY DHAMEJA

09BSHYD0771

Report submitted in partial fulfillment of

the requirements of MBA program of IBS Hyderabad

Submitted to

Faculty Guide: Prof. Sriram Rajan, faculty member IBS Hyderabad

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 Acknowledgement

I am grateful to Prof. Sriram Rajan for providing me an opportunity to conduct this project
and enlightening me through his knowledge and experience. It has been a very enriching and
learning experience. I express my sincerest gratitude to him for his encouragement, support
and valuable guidance throughout the duration of the project.

I am extremely thankful to our colleagues who have been pillars of

support to me and provided me necessary inputs to make this work an
enjoyable experience.

Shatanjay Dhameja

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Table Of Contents
Abstract………………………………………………………………..3

Introduction…………………………………………………………….4-5

Objective………………………………………………………………6

Literature Review……………………………………………………..7-9

Segments Targeted by Branded Jewellery Players…………………….10

Major Players in the Market……………………………………………11

Methodology……………………………………………………………12

Methods of Survey Research……………………………………………13-16

Use of Likert scale………………………………………………………17

Data Collection………………………………………………………….18-19

Stastical Analysis………………………………………………………..22-35

Recommendations………………………………………………………..36

Conclusion………………………………………………………………. 37

Refrences………………………………………………………………… 38

Annexures……………………………………………………………….. 39- 48

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ABSTRACT

Jewellery today has become more of an element of fashion statement rather than treating it as an
asset for value as perceived in the past. The market in India has a huge potential to capture
branded jewellery segment to name a few brands Tanishq, Gili, Carbon and Oyzterbay.

This is also a reflective of changing perspective of consumer‟s tastes and preferences. The
subject of the research has been to find out the factors that induce the customer to purchase
branded jewellery.

Variables were indentified with an in-depth study of relevant literature, experiences survey, and
focus group discussion.

A structured questionnaire has been used to collect the data from 217 respondents. The
questionnaire was a mix of demographic and physiographic variables to understand the purchase
behavior of the respondents on a five point Likert scale.

Factor analysis was run on the data collected on those variables using SPSS 13.0 version

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 1. INTRODUCTION

Gems and jewellery form an integral part of Indian tradition, a legacy passed from one
generation to another. Till the early 1990s, the average Indian bought jewellery for investment
rather than for adornment. Confidence in the local jeweler was the hallmark of the gold jewellery
trade in India. A jeweler or goldsmith in a local area had a fixed and loyal clientele and catered
to the local taste for traditional jewellery.

However, since the late 1990s, there was a shift in consumer tastes: women were increasingly
opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. There
was a rise in demand for lightweight jewellery, especially from consumers in the 16 to 25 age
group, who regarded jewellery as an accessory and not an investment. The new millennium
witnessed a definite change in consumer preferences.

Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding.
Given the opportunities the branded jewellery market offered; the number of gold retailers in the
country increased sharply. Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened
outlets in various parts of the country. Traditional jewelers also began to bring out lightweight
jewellery, and some of them even launched their in-house brands. However, the share of branded
jewellery in the total jewellery market was still small (about Rs. 10 billion of the Rs. 400 billion
per annum jewellery market in 2002), though growing at a pace of 20 to 30 percent annually.
The branded jewellery segment occupied only a small share of the total jewellery market because
consumers trusted only their family jewelers when buying jewellery.

Although, the market is highly dominated by the unorganized players, with increase in consumer
income and economic prosperity, the future of organized retail in India is very bright. The braded
jewellery sector is estimated to reach US$ 2.2 billion by 2010 on the back of quality
consciousness among target consumers, as per a McKinsey report.

Branded jewellery players face a lot of competition from local jewelers. In order to gain market
share, they will have to come up with designs that customers want and win the trust and
confidence of consumers by hallmarking and demonstrating the purity of the gold used by them.

To compete with traditional players, branded players must also find some way to differentiate
themselves. While the success of a particular brand will depend on differentiation, affordability
and quality will be a key element in sustaining a brand.

In addition, branded players require focused advertising and astute salesmanship to compete with
traditional jewelers. Besides the major brands- Tanishq, Carbon, Oyzterbay,Gili and Trendsmith
- several regional players have opened branches to leverage the trust and reputation that they
have built up over the years.

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The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on the back of
improving lifestyle and availability of skilled labour, as per a report „Indian Gems and Jewellery
Market – Future Prospects to 2011‟, by RNCOS.

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 2. OBJECTIVE

The objective of the study is as follows :-

 To check for the Factors affecting the Buying Behavior of the Customer towards Branded
Jewellery.
 To check for the Positioning of Major Players in the Indian Branded Jewelry Market with
respect to various factors obtained.
 To understand the branding techniques in the jewellery industry in India,
 To gain an insight into the transformation that has happened in this sector.

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 3. LITERATURE REVIEW

3.1. Branded Jewelry

Branded jewellery is a term used for jewellery that is identified by its brand name unlike the
traditional jewellery market. In the late 1990‟s, the Indian jewellery market witnessed a shift in
consumer perception of jewellery. Instead of being regarded as only an investment option,
jewellery was now being prized for its aesthetic appeal. Branded players such as Tanishq, Gili,
Carbon and Oyzterbay entered the market. However the share of branded jewellery in the total
market was still small.

The abolition of the Gold Control Act in 1992 allowed large export houses to import gold freely.
In 1993, gold and diamond mining were opened up for private investors. In 1997, overseas bank
and bullion suppliers were also allowed to import gold into India(1). This entire shift in norms
allowed the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market.

Branded jewellery has found a niche for itself in the Indian market and its increasing growth
rates show that before long it will corner a significant share of the jewellery market. Such is the
potential of this industry that McKinsey estimates the branded jewellery market in India to grow
at the rate of 40% per annum to touch Rs. 10,000 crores by 2010.

Gili – In 1994, Gili jewellery was established as a distinct brand by Gitanjali jewels. Gili offered
a wide range of 18 carat plain gold and diamond studded jewellery, designed for contemporary
Indian woman. The designs combined both the Indian and western styles and motifs. Gili had a
0.3 % of the total market share and 1.4 % of the branded market share.

Tanishq – In 1995 Titan established Tanishq as its jewellery segment in the branded market.
Among the branded jewellery players tanishq is considered to be a trendsetter. It began by selling
18 carat jewellery. However the 18 carat jewels did not sell well in the domestic market and
hence tanishq expanded its product line to include 22 and 24 carat jewels as well. In 1998,
tanishq decided to set up its own retail showrooms to create a distinctive brand image. Tanishq
had a 0.66 5 share of the total market and 27 % share of the branded market.

3.1.1. Frontline Magazine, volume 22, Brand appea(2)

The report talks about the niche market of branded jewellery in India. Jewellery market in India
was mainly dominated by family owned shops however the increasing demand for jewellery in
India drove the attention of a few big brands into this market segment. Brands like Tata‟s,
D‟damas and Gitanjali have given an impetus to branding of jewellery. Though branded
jewellery accounts for less than 10 % of the jewellery market it‟s growing at a pace of 20 to 30
% per annum because of increasing awareness among people. The report also talks about how
the Mall culture has helped the increase in the branded jewellery market. Branding of jewellery
has also given various price options for different segments of the consumers. Further the report
highlights the challenges that the branded jewellery market faces in terms of tough competition
and customer education.

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 3.1.2. The Hindu, October 2001

The article talks about branded jewellery emerging as the fashion accessory in the current Indian
market. The liberal economy has given rise to a professional class of customers who demand
jewellery in the form of fashion accessory. This has encouraged a lot of players in the market to
come up with designs that are lightweight and more contemporary in nature than the traditional
heavy weight gold jewels. Now the focus has shifted to carving out jewellery that can be used in
the day to day life rather than just special occasions3. This results in an increase in the impulsive
buying as these daily wear jewellery costs less than the traditional jewellery and also provides
you with the trendy look. Moreover after the entry of branded players in the market jewellery is
available in Shop in Shop outlets.

3.2. Branded jewellery and consumer wants

To compete with traditional players branded players need to differentiate their products on the
emotional quotient. While the success of a particular brand would depend on differentiation,
affordability and quality will be the other issues that these players need to look at. Affordability
is a concern because the jewellery carries a brand image and hence has an additional cost
attached to it. Moreover the branded players would require focused advertising and astute
salesmanship to reach out to the consumers. According to a study conducted by Trendsmith
(TBZ jewelers) in 2002 –
The Indian market was witnessing a shift from viewing jewellery as an investment to considering
it as an ornament of aesthetic appeal. The focus had shifted from content to design.
The younger generation was looking for trendy and contemporary jewels and clearly avoided the
heavy, traditional jewellery.
The consumer wanted a wider selection at a single convenient location and expected an
international shopping experience.
The Indian consumer was willing to experiment with designs.

3.3. Wooing the customers

Players in the branded jewellery market formulated various strategies to woo the Indian
customer. According to Jacob Kurian, chief operating officer at Tanishq, the challenges were
many. As the jewellery market was highly fragmented, lacked branding and allowed many
unethical practices to flourish, Tanishq worked hard on a two pronged brand building strategy:
cultivate trust by educating customers about the unethical practices in the business and change
the perception of jewellery as a high priced purchase. Kurian says “We are changing the attitude
of customers from blind trust to informed trust”.

To create differentiation, Tanishq set up a 7 member team for in-house designing. In 2002, they
came up with a new collection called “Lightweights” which became a huge success. They
focused on quality control(4).
CARBON focused on moving jewellery from the vault to the dressing table. They sold their
jewellery as gift items over internet. To attract younger population, they launched “sun sign”
collection based on zodiac symbols. Their focus was to give style value to jewellery instead of
the traditional investment value. They emphasized on ad and marketing strategies and media
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campaigns to position their brand as jewellery for office wear, evening wear or even a fitness
session.

GILI products were made available through a mail-order catalogue with a guarantee of diamond
and gold quality. Their “diamond heart collection” targeted at teenagers and priced between
Rs.500-Rs.2500 became a huge hit. They promoted it at college campus with catchy ads and
special packaging.

One of the reasons why branded jewellery is doing well is that now anyone can walk into a mall,
window shop and decides at their own what they would like to buy. Rima Khan, a brand
executive
says “You no longer have the sales staff who look at you and decide whether you are worth
serving or not. Everyone is a potential customer in the new market”.

Another major factor that attracts customers to the branded jewels is the wide array of prices that
these players offer. Now you can get a piece of jewellery with a diamond for as little as Rs.1500.
this has made jewellery accessible and affordable for almost all income brackets. The store
ambience is another brand builder, with Tanishq boasting of 41 exclusive stores and the other
brands into shop-in-shop retailing at lifestyle stores(5).

Celebrity endorsements have also helped the branded players in attracting customers to their
shops. Indian consumer has been found to be highly influenced by celebrity endorsements as
they recognize themselves with their favorite celebrity. Hence branded players have targeted the
consumers with the help of rigorous celebrity advertisements.

Post by RNCOS on October 27, 2009 says that branded jewellery market in India is growing at a
CAGR of 41 %. Indian consumers are now moving towards branded jewellery as it is more
reliable in terms of quality and design(6).

1 www.indialawoffices.com/pdf/jewellerymarket.pdf

2 http://www.flonnet.com/menue

3 http://www.hinduonnet.com/2001/10/icons/hindux

4 : http://www.scribd.com/doc/33877880/Branded-Gold-Jewellery-Market-in-India

5 http://m.timesofindia.com/PDATOI/articleshow/30761366

6 http://www.rncos.com/Report/IM148.htm

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3.4. Segments Targeted By Branded Jewellery Players

3.4.1. Indian Middle Class Population

The demand for gold and diamond jewellery is driven by festivals, weddings and gifts, the
increasing affluence of the middle class population and the increase in per capita spent on luxury
items.

\3.4.2. Younger Working Generation

The CARE Research expects organized retail of Gems & Jewellery to grow because of the
changed buying preference of the increasing younger population through the introduction of
hallmarking and certifications. The key drivers for growth in the industry are increasing
disposable income, conscious marketing efforts, rising young population with the urge to spend
on jewellery since it‟s regarded a fashion accessory.

3.4.3. Upper Class

Most of the diamond jewellery and heavy god jewellery produced by the branded players targets
the upper class of people who tend to spend more on such exquisite designs.

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3.5 Major Players in the market

Major players for branded jewellery in the market are ASMI, EROS, TANISHQ, SOLITIARE,
SIGNATURE, GILI, AGNI, KIAH etc. Of late, some of the world's biggest names in the
jewellery and luxury items such as watches and cuff-links are making inquiries to set up shop in
India. Multi-national jewellery brands such as Tiffany, Cartier, Zales and Harry Winston are all
said to be interested in coming here following the Government's decision to allow foreign direct
investment of up to 51 per cent in single brand retail stores. Most of these stores have been
sourcing cut and polished diamond and gold items from Indian firms. Now they are making
inquiries for possible tie-ups in India.

Simultaneously, domestic players are also drawing aggressive plans

 Shrenuj & Company Ltd has acquired 84.6 per cent stake in the US-based jewellery
distributor Simon Golub & Sons Inc for US$ 22.7 million.

 Kerala-based jeweller Malabar Gold will spend US$ 48 million over the next year in
order to expand its presence in southern India as well as abroad.

 Gitanjali Gems Ltd, a Mumbai-based jeweller, has incorporated a wholly-owned

subsidiary in Dubai, Gitanjali Ventures DMCC, whose main activity is trading in
diamonds, precious stones, diamond jewellery and pearls.

 Also, the Gitanjali Group has announced its foray into the luxury retail market through a
new entity ‘Luxury Connexions'. The company will invest US$ 24.5 million over three
years to set up luxury malls in eight leading cities across the country.

Two new special economic zones (SEZs) for gems and jewellery are to come up at Goregaon and
Dhulia, both in Maharashtra. Also, the state-run Minerals and Metals Trading Corp. (MMTC),
plans to establish a gems and jewellery special economic zone (SEZ) in partnership with a
private company.

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 4. METHODOLOGY

4.1. Type Of Research

The study is a combination of 3 types of business research

4.1.1. Exploratory
A less expensive and more readily available sources of information was employed for the
research objective at hand. The purpose of the exploratory research was to narrow the scope of
the research topic. Exploration activities included the study of literature and interacting with the
salesman and customers of Sagar Jewellers (Multi-Brand Retail Shop) located in Banjara Hills.

After exploratory research a fair idea of the data that is to be collected was taken which included
the variables which may affect the perception/ preference of the customer on purchase of
branded jewellery. The idea about the potential techniques that can be used for the study was
also known.

The following technique for the exploratory analysis-

 FGDs
 Pilot Test for Questionnaires
 Experience Survey

4.1.2. Descriptive
This study helped in identifying the target market and the segment. It helped in identifying
various demographic variables like age, gender, income, region etc. which are used in the study.

4.1.3. Causal
Here, which variables caused the change in the buying behavior of the branded jewelry was
known. How the sales in the branded jewelry market are affected by the different variables or
factors were also studied.

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4.2. Method of Survey Research
The purpose of using different methods of survey research was to obtain the different factors or
variables which affect the preference or perception of a potential customer to buy a branded
jewelry. The study employs the use of FGD and Self-administered mail questionnaire methods.

4.2.1. FGD
A focus group discussion was conducted by the researchers as a part of the exploratory
qualitative study. The aim of the researchers was to identify the attributes influencing the
consumer purchase for branded jewelry segment. The group constituted of the fourth semester
students of IBS Hyderabad. The group included 9 respondents – 6 males and 3 females. The
formation of the group was based on the availability and convenience of the respondents. First of
all the moderator (one of the researchers) initiated the process by welcoming all the respondents
and briefing them on the discussion objective. The researcher encouraged the respondents to
discuss the topic freely, as there is no right or wrong answers. The respondents actively
participated in the discussion, moderated by the moderator wherever required. The attributes that
came out of the discussion were :-

 Customization
 Design of the jewelry
 Quality of the jewelry
 Jewelry used more for a fashion purpose rather than investment purpose
 Purity of the jewelry purchased
 Jewelry seen as a style statement
 Occasional (Functional) purchase
 Price of the jewelry
 Trust element perceived for a particular brand
 Resale value of the jewelry
 Warranties given by a particular brand
 Ambience of the store/outlets
 Display of the jewelry in a particular store/outlet
 Variety of jewelry offered by a particular brand
 Promotional offers given by various brands
 Packaging – protective as well as attractive
 Social Status that a customer associates with a brand
 Presence of the brand
 Awareness about the brand
 Celebrity endorsing the brand

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  Word Of Mouth
After the fruitful discussion, the moderator extended a vote of thanks to all the respondents for
taking out their precious time and ended the focus group discussion.

4.2.1.1. Advantages of conducting a Focus Group Discussion

 It is a qualitative technique which allows the researcher to obtain rich data in participants'
own words and developing deeper insights
 It is Quick, cheap and relatively easy to assemble
 Respondents are able to build on one another's responses and come up with ideas they
might not have thought of in a 1-on-1 interview
 Respondents can act as checks and balances on one another - identifying factual errors or
extreme views

4.2.1.2. Limitations
 The sample was selected as per the convenience of the researchers and availability of the
respondents
 The responses of each participant may not be independent
 As the discussion was moderated by one of the researcher, so the experience and the skill
required for being a moderator may be lacking
 There may be a gap in the interpretation of the discussion by the researcher due to their
inexperience

4.2.2. Questionnaires
Non-interactive mailed questionnaire method were used to collect the responses from the sample
chosen. We distributed the questionnaires in 2 ways- First, the questionnaire was electronically
uploaded as a google spreadsheet and responses were obtained from the respondents. Second,
copy of questionnaires were distributed to the respondents both students as well as those who
came to the jewellery shop. Assistance was provided to the customers, if needed.

4.2.2.1. Advantages of using the Questionnaire Method to the study

Geographical Flexibility- We was able to send the questionnaires across different segments of
the people across India.
Cost- The electronic self-administered form of survey method is cost free
Respondents Convenient- We were able to get the responses without taking much time of the
customers visiting the jewelry shop.

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4.2.2.2. Variables Determination
Variables were determined from the literature study and the FGD that was conducted. While
constructing the questions, it was made sure that the relevance and accuracy of the questionnaire
was maintained.
Questionnaire Relevancy- It was checked by ensuring that no unnecessary information was
collected. Important demographic and psychographic variables were also considered.
Questionnaire Accuracy- It was made sure that the questions are reliable and valid. The
questions were simple, understandable, unbiased, unambiguous etc.

Explanation of questions :-

 Have you ever bought branded jewelry?

This is a Simple –Dichotomy question which requires the respondent to choose one of the two
alternatives. This is an eligibility question which is asked to the respondent which is required to
check whether that the respondent„s is eligible for our analysis.

 If yes, how often do you buy?

This is a frequency –determination question, it is a determinant‐choice question that asks for an
answer about general frequency of occurrence. This question is being only answered when the
respondent opts for yes option in the previous question.

 What is the annual income of your parents?

This question is a determinant choice question which requires the respondents to choose one and
only one response from among several possible alternatives. Its helps us in determining the
buying capacity of the respondent.

 Would you prefer to buy jewelry of particular brand because of its

celebrity association?
This question is a loaded question which suggests a socially desirable answer or an emotionally
charged. The answers might be different if the loaded portion of the statement, i.e. ―prefer to
buy jewelry of particular brand because of its celebrity association had another wording
suggesting a problem of less magnitude than a celebrity association.

 Do you prefer gifting a branded jewelry over a traditional jewelry?

This is also a loaded question which is checking the respondent's response in judging the
behavior in gifting jewelry whether it is branded as compared to the traditional jewelry.

 If offered a discount, you are motivated to buy a set of matching

accessories over an individual piece.?

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This loaded question asks the respondent his behavior to the discount being offered when a
bundled accessory is being offered. This pulsates the respondent's buying behavior and helps in
determining the impulsive reason to purchase a particular branded jewelry.

 Does packaging makes a lot of difference in branded jewelry purchase?

This question checks the respondent's behavior towards the aesthetics of packaging of the
branded jewelry, how much importance does the packaging weighs in the buying behavior of the
respondent.

 Your trust in the brand is based upon the guarantee offered by it?
This question checks the respondent's behavior in buying of the branded jewelry in accordance to
its brand loyalty with the trust of guarantee offered by the company. Thus how much the
guarantee plays role in the respondents mind during the purchase of the branded jewellery.

 Design variety makes an impact while choosing branded jewelry?

This question checks the respondent's behavior in buying the branded jewelry accordance with
the design variety available with the particular branded jewelry company.

 How important is price to you while making a branded jewelry

purchase?
This question check the respondent„s reaction on the buying behavior in accordance with the
price associated with particular branded jewelry which he /she is going to buy.

 A promotional campaign (i.e. movie sponsorship) invites you for an

impulsive purchase?
This question checks the respondents reaction to the promotion campaign used by the branded
jewelers in order to increase their buying from the customers for example as giving free movie
tickets along with the purchase of a particular branded jewellery.

4.2.2.3. Validation of questionnaire- Pretest

Once the questionnaire was made it was tested for a group of respondents that was based on a
convenience basis and is similar to the sample chosen. The pretest helped us understand the
difficulties faced by the respondents and to check for consistency in responses.

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4.2.3. Likert Scale

4.2.3.1. Advantages of Using the Likert Scale

Likert Scales help in finding out the attitudes and buying behavior of people as we can see the
majority of questions we have used in the questionnaires help us to find out that how far a
consumer is affected by a particular behavior pattern or a factor that may be requires inducing a
purchase behavior.

4.2.3.2. Aim in Using Likert Scale

We would like to find out how far he agrees and disagrees to a particular thing so that by giving
them weights we can identify the importance of that particular variable .As we are focusing on
the behavioral pattern of what consumer wants and their willingness for the purchase behavior of
branded jewelry. Likert scale has been appropriately used to retrieve information and come to a
conclusion using inferences from the data collected.

4.2.3.3 MDS Questionnaire Design

Once the factors were derived from factor analysis, a rectangular matix was constructed. The
matrix included the 4 brands, selected on the basis of market share, as rows and the factors
determined as columns. Thus, we had a 4x6 rectangular matrix.

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4.3. DATA COLLECTION

FACTOR ANALYSIS:
Data collection has a huge impact on the proposed methodology since this a live project, so
majority of the data collected and used are primary in nature. Since, the data was primary in
nature so we have tried to keep error margin very small almost negligible. Hence, care is taken
on the designing of the data collection tools, drawing inference from the data and henceforth
generalizing it.

4.3.1. Sample Selection

Here the main objective was to determine the consumer buying behavior of branded jewelry in
India. Questionnaires were provided to the consumers online over a spreadsheet and printed copy
to the customers coming to the jewellery shop. The sample selected for the study was random in
nature, the electronic questionnaires were sent across all the students of IBS Hyderabad and all
the friends known. the questionnaire were also filled from the customers coming to Sagar
Jewelers. The data collection is thus, made possible by covering a sample size of 230
respondents. The only limitation to this mode has been time constraint.

4.3.3. Data coding

Numerical scores were assigned to every response. The negative questions in the questionnaire
were to check for the consistency and accuracy in the responses and to eliminate the response
bias. These questions were not included ion the analysis to avoid data redundancy. The questions
that were framed were positive or affirmative in nature. The Scale used was Likert Scale, where
a 5 point response was used, i.e. from strongly agree to strongly disagree. The coding was done
as follows :-

Demographic Questions

Gender-
 Male was coded as 0
 Female was coded as 1
Frequency of purchase
 Once in 5 Years as 1
 Once in 3 Years as 2
 Once in 2 Years as 3
 Once in a Year as 4
 Half Yearly as 5
Annual Income
 Less than 4 Lakhs as 1
 4-6 Lakhs as 2
 6-8 Lakhs as 3
 8-10 Lakhs as 4
 More than 10 Lakhs as 5

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Psychographic Questions
 Strongly Disagree as 1
 Disagree as 2
 Neutral as 3
 Agree as 4

MDS: This questionnaire was used for the data collection from 40 respondents. Every
respondent was asked to rank the brands on the basis of the factors. Thus the ranking order
ranged from 1( being the highest) to 4(being the lowest).

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 5.0 STATISTICAL ANALYSIS AND OBSERVATIONS

The data that we obtained from the data collection technique was the raw information. The most
important part of the research method was the data analysis part where the raw data was given a
structured format. The main aim of data analysis was to reduce size complexity of the collected
data, looking for relations between the accumulated data and applying statistical techniques to
the data set to generate some result set. These derivations or data interpretations in turn
determined the consumer buying behavior of branded jewelry. Here for the data analysis and
data interpretation we took the help of SPSS software package and MS Excel.

Here in our project we have identified 20 variables to determine the factors affecting the buying
behavior of customer towards branded jewelry. Total 230 respondents filled the questionnaire
but out of these we have selected 217 respondents for our analysis.

We have selected these respondents based on the response of key question i.e.‘ Have you ever
bought branded jewelry? ’
If respondent has said ‘yes’ i.e. he is knowledgeable about branded jewelry and is eligible for our
analysis. On the other hand, if respondent has answered ‘no’ then he is not aware about the
branded jewelry and so is not fit for the analysis.
So we have excluded 12 respondents based on the answer of above key question. Before running
the statistical technique, we observed the data carefully and found that all the respondents have
filled all the responses required and there is no missing value.
After ensuring that data is complete, we have adopted run the factor analysis by taking following
options as shown in screen shots below. We have used SPSS V 13.0 for our analysis.

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5.1 Descriptive Analysis

The data obtained after coding the responses of the survey was a raw data. To obtain useful
information we computed frequency distribution table.

Tables can be seen from the annexues.

Gender

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 0 118 54.4 54.4 54.4
d 1 99 45.6 45.6 100.0
Total 217 100.0 100.0

Frequency_Purchase

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 45 20.7 20.7 20.7
d 2 39 18.0 18.0 38.7
3 69 31.8 31.8 70.5
4 53 24.4 24.4 94.9
5 11 5.1 5.1 100.0
Total 217 100.0 100.0

Annual_Income

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 37 17.1 17.1 17.1
d 2 82 37.8 37.8 54.8
3 41 18.9 18.9 73.7
4 21 9.7 9.7 83.4
5 36 16.6 16.6 100.0
Total 217 100.0 100.0

Further tables are attached in annexures

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5.2. Factor Analysis

We used factor analysis technique to reduce the variables and extract factors. Factor Analysis is a
very useful method of reducing data complexity. We have used SPSS V 13.0 for our analysis.

Under the Extraction button we have selected Principal Component Analysis. The number of
factors to be extracted is determined using the concept of Eigen Value. The higher the Eigen
Value of a factor the higher is the amount of variance explained by the factor. So our main
objective is to extract the least number of factors which will maximize the explained variance.
Before extraction it is assumed that each of the original variables has an Eigen Value of 1. So we
would accept any single factor which is a linear combination of some of the original variables to
exceed the value of 1.

The second stage of factor analysis is rotation of the principal components. After the factors are
extracted from stage 1 the next phase is to name the factors and to interpret the results. So
association is created between the variables and the factors. The original factor matrix is
obtained from the output of stage 1. At the stage 2 the SPSS package is requested to perform a
rotation and gives a rotated factor matrix.
Thereafter, we go for selection of ‘descriptive and options’. Through the descriptive part we set
the coefficients and the determinants of the correlation matrix between the variables.
We also check the option of KMO and Bartlett‘s test of sphericity. Through the options we can
set to suppress the absolute values less than 0.430.

Here in our data interpretation part our main objective is to reduce the number of variables from
20, and to determine factors which influence the buying behavior of consumer for branded
jewelry purchase.

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5.2.1. Correlation Matrix

Correlation Matrix gives us the idea that which of the variables correlated with other variables.
From observation we see that even the highest correlation of one factor with other factors is less
than 0.4, it shows that here variables have correlation with other variables but extent of
correlation is not very high, it is just average.

5.2.2. KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of
Sampling Adequacy. .638

Bartlett's Test of Approx. Chi-

465.295
Sphericity Square
df 136
Sig. .000

The KMO test actually determines the adequacy of the sample in relation to number of variables.
If the value of the sampling adequacy is more than .5 then the sample is adequate for factor
analysis. Here we find the value to be .638 which is greater than .5 so we can interpret that our
sample is adequate enough.

Bartlett's Test of Sphericity tests the null hypothesis that the original correlation matrix is an
identity matrix. Here this test is significant (i.e. significance value < .05), since the significance
level has come out to be .000, hence we can conclude that sample correlation matrix did not
come from a population in which the correlation matrix is an identity matrix.

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5.2.3. Communalities

Extractio
Initial n
Excahnge_Incentive 1.000 .667
Discount_Motivation 1.000 .646
Packaging 1.000 .504
Brand_Ambassador 1.000 .534
Design_Variety 1.000 .691
Branded_Gift 1.000 .557
Price_Sensitivity 1.000 .375
Promotion_Influence 1.000 .636
Hospitality_Showroo
1.000 .557
m
Purchase_Occasions 1.000 .574
Trust_Guarantee 1.000 .531
Jewelry_Investment 1.000 .660
Wardrobe_MatchJewe
1.000 .512
lry
Variety_Content 1.000 .392
Customer_Relationshi
1.000 .645
p
Shop_Ambience_Loc
1.000 .486
ality
Society_Influence 1.000 .543
Extraction Method: Principal Component Analysis.

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 5.2.4. Total Variance Explained
This table explains that how much variance is explained by factor 1 out of 20. From the table we
see that factor 1 explains 16.28%, factor 2 explains 10.84%, factor 3 explains 7.72%, factor 4
explains 7.56%, factor 5 explains 7.14%, factor 6 explains 6.37%.
We do not take any factor which is not explaining even 1 out of 20. So we neglect all the factors
from 7 to 20 as they are explaining even less than the initial variance of 1.

We also interpret that cumulative percentage explained is 55.93% by taking 6 factors in account.

Total Variance Explained

Compo Extraction Sums of Squared Rotation Sums of Squared

nent Initial Eigen values Loadings Loadings
% of Cumulati % of Cumulati % of Cumulati
Total Variance ve % Total Variance ve % Total Variance ve %
1 2.768 16.284 16.284 2.768 16.284 16.284 1.702 10.013 10.013
2 1.843 10.843 27.127 1.843 10.843 27.127 1.655 9.736 19.748
3 1.313 7.726 34.853 1.313 7.726 34.853 1.610 9.470 29.218
4 1.286 7.564 42.417 1.286 7.564 42.417 1.599 9.408 38.626
5 1.214 7.141 49.558 1.214 7.141 49.558 1.510 8.884 47.510
6 1.084 6.379 55.936 1.084 6.379 55.936 1.433 8.427 55.936
7 .976 5.743 61.680
8 .924 5.434 67.114
9 .878 5.167 72.280
10 .769 4.525 76.806
11 .726 4.273 81.079
12 .685 4.032 85.111
13 .583 3.428 88.539
14 .571 3.356 91.895
15 .530 3.119 95.014
16 .453 2.663 97.677
17 .395 2.323 100.000
Extraction Method: Principal Component Analysis.

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5.2.5. Scree Plot
Scree plot helps in deciding the number of factors to be retained. The point after which the curve
begins to even out is taken as the final no. of factors. Here in our case Scree plot begins to even
out after the extraction of 7th factor therefore only 6 factors should be retained out of the 20
variables. We can eliminate factors from the graph that have Eigen values less than 1.

Scree Plot

3.0

2.5

2.0
Eigenvalue

1.5

1.0

0.5

0.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Component Number

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5.2.6.

Component Matrix
The component matrix shows the loadings of the variables on the 6 extracted factors. The
loading shows the extent to which the factor contributes to the variable. Loadings less than .4 are
not shown here as ―suppress loadings less than .4 were entered in the factor analysis options
dialog box.
Component Matrix(a)

Component
1 2 3 4 5 6
Branded_Gift .593
Trust_Guarantee .589
Variety_Content .512
Wardrobe_MatchJewe
.493 -.420
lry
Brand_Ambassador .430
Excahnge_Incentive .630
Promotion_Influence .579
Packaging .506
Customer_Relationshi
.450 -.464
p
Discount_Motivation .426 -.408
Purchase_Occasions .405 .479
Price_Sensitivity .451
Hospitality_Showroo
.409 -.442
m
Society_Influence
Jewelry_Investment -.410 -.493
Design_Variety .454 -.509
Shop_Ambience_Loc
.436
ality
Extraction Method: Principal Component Analysis.
a 6 components extracted.

The variable with highest loading is grouped under one factor. But in some cases like Customer
Relations, we can see cross-loadings, making interpretation difficult. So we go for rotation and

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get rotated component matrix to clearly identify the highest loading of variables under one
factor.

Rotated Component Matrix(a)

Component
1 2 3 4 5 6
Jewelry_Investment .796
Trust_Guarantee .578
Variety_Content .449
Discount_Motivation .778
Excahnge_Incentive .630
Design_Variety .786
Wardrobe_MatchJewe
.541
lry
Branded_Gift .540
Promotion_Influence .772
Packaging .661
Brand_Ambassador .552
Hospitality_Showroo
.706
m
Customer_Relationshi
.660
p
Price_Sensitivity .441
Society_Influence .723
Purchase_Occasions .583
Shop_Ambience_Loc
.471
ality
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 18 iterations.

5.3. MDS
The data collected from 40 respondents was arranged on an excel sheet and the mean responses
were calculated. The same formed the input for the PERMAP software. The On-line controls
were specified as follows-

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The MDS type was selected as Ratio
The BADNESS measure was taken as Stress1
DISTANCE was taken to be Euclidean distance
The DIMENSIONS were chosen to be 3 in number

Then we load the text file which has the data in the following format.

After loading the data, we clicked on start and stop at least 3 to 4 times to obtain a constant and a
lower objective Function Value (0.00001). The following output was obtained which is the next :

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Then we placed the vectors on the perceptual map by selecting attributes under Map Evaluations
Tab.

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6.0. FINDINGS

Through this rotated component matrix, we identify that which are the variables contained in
each factor.
 Factor 1 consists of 3 variables – MOTIVATION TO BUY
o Investment in Jeweller(.796)
o Trust due to Guarantee(.578)
o Impact of Variety(.449)

 Factor 2 consists of 2 variables- TEASERS-OFFERS

o Motivation by Discout(.778)
o Exchange Incentive(.630)

 Factor 3 consists of 3 variables- ADVERTISING

o Variety in Designs(.786)
o Wardrobe Matching Jewelry(.541)
o Branded Gifts(.540)

 Factor 4 consists of 3 variables-RANGE OF PRODUCTS

o Influence by Promotions(.772)
o Packaging(.661)
o Brand Ambassadors(.552)

 Factor 5 consists of 2 variables-SERVICES OFFERED

o Hospitality at Showroom(.706)
o Customer Relationships(.660)

 Factor 6 consists of 4 variables- SOCIAL STATUS

o Price Sensitivity(.441)
o Purchasing on Ocassions(.583)
o Influence of Society(.723)
o Shop’s Ambience and Locality(.471)

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 6.1.1. MDS

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7.0. Recommendations

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8.0. CONCLUSION

Considering the analysis of the variables included in this research all the taking all factors under
consideration we can conclude that youth‘s buying behavior in branded jewelry is majorly
determined by 6 broad heads.
 Motivation to Buy
 Teasers-Offers
 Advertising
 Range of Products
 Services Offered
 Social Status

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9.0. References:

Book references:

 Kotler P., KellerK.L. , Koshy A. , Jha M. , 2009. Marketing Management, 13th edition.
New Delhi:Dorling Kindersley (India) Pvt. Ltd.
 Malhotra, N.K., Marketing Research

 Marketing Research by William ChurchHill.

Internet references:

 http://www.cbi.eu/marketinfo/cbi/docs/chapter_1_consumption_of_jewellery
 http://www.myjewelersplace.com/categories/Jewellery-Industry/?Page=2
 http://www.myjewelersplace.com/articles/1473/1/The-Jewellery-Industry-
Analysis/Page1.html

 http://www.reports-research.com/market-surveys/global-jewelry-market-emerging-
markets-driving-growth-p-61462.html
 www.tanishq.co.in
 www.oyzterbay.com
 www.gili.com
 www.ibef.org/industry/gemsjewelry.aspx -
 www.pressabout.com/indian-customers-showing-internet-in-branded-jewelry-
24860 .

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10.0. Annexures
10.1. Factor Analysis Questionnaire

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 10.2. MDS Questionaire

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 10.3. Descriptive Analysis

Frequency Distribution Table

Excahnge_Incentive

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 39 18.0 18.0 18.0
d 2 83 38.2 38.2 56.2
3 61 28.1 28.1 84.3
4 32 14.7 14.7 99.1
5 2 .9 .9 100.0
Total 217 100.0 100.0

Discount_Motivation

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 10 4.6 4.6 4.6
d 2 28 12.9 12.9 17.5
3 58 26.7 26.7 44.2
4 107 49.3 49.3 93.5
5 14 6.5 6.5 100.0
Total 217 100.0 100.0

Brand_Ambassador

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 2 9 4.1 4.1 4.1
d 3 19 8.8 8.8 12.9
4 106 48.8 48.8 61.8
5 83 38.2 38.2 100.0
Total 217 100.0 100.0

Design_Variety

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 2 1 .5 .5 .5
d 3 18 8.3 8.3 8.8
4 86 39.6 39.6 48.4
5 112 51.6 51.6 100.0
Total 217 100.0 100.0

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 Branded_Gift

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 1 .5 .5 .5
d 2 11 5.1 5.1 5.5
3 32 14.7 14.7 20.3
4 139 64.1 64.1 84.3
5 34 15.7 15.7 100.0
Total 217 100.0 100.0

Price_Sensitivity

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 2 .9 .9 .9
d 2 7 3.2 3.2 4.1
3 18 8.3 8.3 12.4
4 118 54.4 54.4 66.8
5 72 33.2 33.2 100.0
Total 217 100.0 100.0

Promotion_Influence

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 16 7.4 7.4 7.4
d 2 89 41.0 41.0 48.4
3 70 32.3 32.3 80.6
4 39 18.0 18.0 98.6
5 3 1.4 1.4 100.0
Total 217 100.0 100.0

Hospitality_Showroom

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 3 1.4 1.4 1.4
d 2 15 6.9 6.9 8.3
3 38 17.5 17.5 25.8
4 134 61.8 61.8 87.6
5 27 12.4 12.4 100.0
Total 217 100.0 100.0

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 Purchase_Occasions

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 3 1.4 1.4 1.4
d 2 14 6.5 6.5 7.8
3 32 14.7 14.7 22.6
4 126 58.1 58.1 80.6
5 42 19.4 19.4 100.0
Total 217 100.0 100.0

Trust_Guarantee

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 7 3.2 3.2 3.2
d 2 9 4.1 4.1 7.4
3 29 13.4 13.4 20.7
4 130 59.9 59.9 80.6
5 42 19.4 19.4 100.0
Total 217 100.0 100.0

Jewelry_Investment

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 5 2.3 2.3 2.3
d 2 24 11.1 11.1 13.4
3 30 13.8 13.8 27.2
4 85 39.2 39.2 66.4
5 73 33.6 33.6 100.0
Total 217 100.0 100.0

Wardrobe_MatchJewelry

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 4 1.8 1.8 1.8
d 2 13 6.0 6.0 7.8
3 32 14.7 14.7 22.6
4 114 52.5 52.5 75.1
5 54 24.9 24.9 100.0
Total 217 100.0 100.0

Variety_Content

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 Frequenc Valid Cumulative
y Percent Percent Percent
Vali 1 1 .5 .5 .5
d 2 20 9.2 9.2 9.7
3 61 28.1 28.1 37.8
4 115 53.0 53.0 90.8
5 20 9.2 9.2 100.0
Total 217 100.0 100.0

Customer_Relationship

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 1 .5 .5 .5
d 2 4 1.8 1.8 2.3
3 20 9.2 9.2 11.5
4 102 47.0 47.0 58.5
5 90 41.5 41.5 100.0
Total 217 100.0 100.0

Shop_Ambience_Locality

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 7 3.2 3.2 3.2
d 2 16 7.4 7.4 10.6
3 43 19.8 19.8 30.4
4 97 44.7 44.7 75.1
5 54 24.9 24.9 100.0
Total 217 100.0 100.0

Society_Influence

Frequenc Valid Cumulative

y Percent Percent Percent
Vali 1 7 3.2 3.2 3.2
d 2 33 15.2 15.2 18.4
3 42 19.4 19.4 37.8
4 101 46.5 46.5 84.3
5 34 15.7 15.7 100.0
Total 217 100.0 100.0

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