INDIVIDUAL ASSIGNMENT

CONSUMER DECISION MAKING MODEL FOR JEWELLERY

SUBMITTED TO:
Dr. Vikas Nath

SUBMITTED BY:
Preeti Sen Gupta PGFA1159

CONSUMER DECISION MAKING MODEL FOR THE PRODUCT JEWELRY

BEHAVIOR DETERMINANTS Personality Social Class

INHIBITORS Price of the product Brand availability Financial status Time constraint

INPUTS Products (necklace, earring, etc) Services Brands (Tanishque, Ddmas, etc) Facts (warranty
& guarantee)

PERCEPTUAL REACTION Perceptual bias sensitivity to information Filtering of information

PROCESSING DETERMINANTS Purchase motivation Available satisfaction Past experience Judgmental criteria

OUTPUT Attention Understanding Attitude Purchase intention Purchase behavior Purchase decision Actual purchase/ no purchase/ delay

What feeling does it gives to buyers

HOWARD SHETH MODEL FOR JWELLERY

The decision for purchase of jewellery is explained below by using Howard Sheth model. INPUTS: The input variable includes information inputs about the product and services and brands. By information it means the following:Product: There are various options for the consumer before they go and purchase jewellery. The consumer needs to decide which product in jewellery they need to buy. The various options that lie in the hands of consumer while buying the product will be necklace, earring, anklet or bangles. Services: The consumer needs to see what all services are provided by the company. What are the EMI facility given on purchase, the type of warranty & guarantee given on the products, and also the facility of the polish given to the product. Brands: there are various brands in diamond and gold jewellery are available to the consumer, so they gets sufficient amount of choice for their purchase. Facts: facts like RIAA certification and price forms key role while purchase. PERCEPTUAL REACTION: The inputs received from the environment bring in perceptual biasness or the consumer will be sensitive to information & further filter out the unwanted information. At the time of filtering of information behavioral determinants plays vital role. The behavior determinants include various parameters like personality, culture, and social class. These variables are the pre-existing element in consumers mind and existing predisposition of the consumer influenced by his culture, family and other such factors.

Behavior Determinants

Personality: Personality is defined as characteristics of a particular person, physical and psychological, which influence behavior and responses to the social and physical environment. So people will tend to buy jewellery according to their personality. There exists two types of motives behind buying jewellery, i.e. from investment point of view and the other is for the sake of fashion. So people buying from investors perspective will not have keen interest in designs rather they will much focus on its quality. Whereas consumers buying

for the sake of fashion will mainly focus on designs. Personality is influenced by the demographic factors like age, gender, place etc. Like younger generation people will like to go for trendy and peppy designs, while the older age people would generally prefer sober designs. Traits like confidence and authority also assists in making the choice. An active person will always be aware about the brands and quality available, so he/she will always be able to buy confidently by bargaining rationally. Culture: The items that the consumer purchases are reflection of the inherited patterns of consumption. But when it comes to purchase of jewellery culture doesnt play any role as such. Social class: The consumer tries to conform to the values and norms of the class of people they belongs to, in order to enjoy their praise and acceptance of the product. People of higher income group will generally buy diamonds whereas lower or middle income group will confined them with gold. Importance of Purchase: The consumer measures the perceived role of each product or service. If a specific product or service is more important than the rest, it limits the information search by ignoring other products or services. But in case of purchase of jewellery, this is not very applicable as purchase is more influenced by liking, design and pattern of the jewellery. PROCESSING DETERMINANTS: Once a positive perceptual reaction is achieved the consumer will then start gathering and processing of the information. The quality of processing will depend upon the motivational cues which in turn affect the purchase intention of the consumer. There can be following reasons behind purchase of jewellery as mentioned below: Whether the consumer wants to buy it for investment purpose as gold and diamonds has consistently increased in value and thereby considered as a safe and secure investment. For gifting purpose: gold and diamonds are precious and worthy across all cultures and times. The gold/ diamond jewellery is given as gifts during weddings, festivals and other special occasions.. Great Ornamental Value: Women of every age and time have always loved wearing gold and diamond ornaments. Moreover, gold ornaments are never out of fashion.

The processing of the information further depends upon the availability of satisfaction with the present jewellery being used by the consumer (except for the purpose of gifting). The amount that the consumer willing to pays for the jewellery is it worth giving it or not is also one of the factors for gaining satisfaction. If the consumer is satisfied by the present ornaments then their motivation for new jewellery will be less vice- versa. The judgmental criteria depend upon the inhibitions along with the past experience associated with the product & services being offered by the particular brand. Having positive experience will lead the consumer purchase from brand or else consumer will tend to experiment new brands depending upon their availability.

INHIBITORS Consumer has inhibitions with the price, brand availability, financial status and the time constrain. When buying jewellery, consumers are eager to upgrade with high quality product, so price and the purchasing power of the consumer plays an important role in buying decision. Then further the consumers look for other brand availability so as to get various options while buying. The degree of urgency leads to the time constraint for the buyer that may not allow the consumer to carefully analyze substitutes or various options for the product. But in case of the purchase of the jewellery people will never buy in hurry rather they would like to spend maximum time in order to decide so as to purchase the best item, because purchase of gold or diamond jewellery requires investing of handsome amount of money. OUTPUT After considering various inputs and facilitating factors the consumer makes output decision on the basis of following: Attention: the amount of attention the advertisement and information of product captures. If a consumer is willing to spend in jewellery, he will spend more time in watching the advertisements of jewellery brand and other related information. Understanding: How does the consumer interprets the information provided and which information does he consider to be most important. Attitude: What is the attitude of a person towards buying that product. Based on attitude the consumer decides his purchase intention, purchase behavior, and purchase decision. Based on the following outputs the consumer decides which decision to take. The decision may vary from actual purchase, no purchase or delay.