Introduction to Research and Methodology Business research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific business problem. As we all know market research is an ancient technique to find out how one things rank against each other. It has been used since the time began. Market research comprises one of the most important and fascinating facets of marketing. The ethical aspects of market research and the responsibilities each of the marketing research stakeholders have to themselves, one another, and the research project presented and developed in more detail throughout the text. Research can be one of the most interesting features of any degree course
Transcript
Introduction to Research and Methodology
Business research is the process of designing, gathering, analyzing, and reporting
information that may be used to solve a specific business problem. As we all know
market research is an ancient technique to find out how one things rank against
each other. It has been used since the time began. Market research comprises one
of the most important and fascinating facets of marketing. The ethical aspects of
market research and the responsibilities each of the marketing research
stakeholders have to themselves, one another, and the research project presented
and developed in more detail throughout the text.
Research can be one of the most interesting features of any degree course
As it offers you a measure of control and autonomy over what you learn.
It gives you an opportunity to confirm, clarify, pursue – or even discover –
New aspects of a subject or topic you are interested in. Research is a process of
enquiry and investigation; it is systematic, methodical and ethical; research can
help solve practical problems and increase knowledge.
Study of Consumer Behavior
Society is a diversified in all aspects. We see this among consumers, marketers,
producers and even among consumer behavior from theoretical aspects. The study
of consumer behavior enables marketer to predict consumer behavior in the
market; it also produces understanding of the role that consumption has in the lives
of individuals. Consumer behavior is defined as a behavior that consumers display
while searching for purchase, using, evaluation and disposal of products, services
and ideas that they to satisfy their needs. The study o f consumer behavior is
concerned not only with what consumers buy, but also with what they buy it,
when, from where and how they buy it and how often they buy it. It is concerned
with learning the specific meanings that products hold for consumers. Consumer
research takes place at every phase of the consumption process; before the
purchase, during the purchase and after purchases.
Consumer behavior is the study of how people buy, what they buy, when they buy
and why they buy. It attempts to understand the buyer decision processes/buyer
decision making process, both individually and in groups. It studies characteristics
of individual consumers such as demographics, psychographics, and behavioral
variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups,
and society in general. What we buy, how we buy, where and when we buy, in
how much quantity we buy depends on our perception, self concept, social and
cultural background and our age and family cycle, our attitudes, beliefs, values
motivation, personality, social class and many other factors that are both internal
and external to us. Consumer behavior is interdisciplinary; i.e. it is based on
concepts and theories about people that have been developed by scientist in such
diverse disciplines as psychology, sociology, social psychology, cultural
anthropology and economics.
Factors Influencing Consumer Behavior
The factors that influence consumer behavior can be classified into internal factors
and external environmental factors. External factors do not affect the decision
process directly, but percolate or filter through the individual determinants, to
influence the decision process.
The individual determinants that affect consumer behavior are:
Motivation and involvement
Attitudes
Personality and self concept
Learning and memory
Information processing
The external influences or factors are:
Cultural influences
Sub-cultural influences
Social class influences
Social group influences
Family influences
Personal influences
Tools of study Consumer Behavior
It is important to marketer to regularly study buyer behavior. The different tools
available to him or her are:
Surveys
This is the most common technique used in studying consumer behaviour. It
involves the use of questionnaires. Different scaling techniques like Likert and
Thurstone are used to measure consumer attitudes. The problem with survey
methodology is that it gives to marketer only conscious response of the customer.
Projective Techniques
To throw the customer off his or her conscious level and to get know
subconscious-level responses, projective techniques like word association, picture
association and thematic appreciation tests have been used. This provides valuable
information on his or her product or brand and about the customer’s lifestyle and
self concept.
Purchase Behavior
We have seen that in many products, decision-making is a very lengthy process,
and takes a very long time. The problem is recognized and a lot of information is
gathered. After this is done, the last two stages of decision-making, that is, the
purchase and post purchase come into play. Purchase is very important as it
generates revenue, and post purchase gives us an idea of the likes and dislikes of
the consumer. Post purchase behavior also establishes s link between the marketer
and the target market segment.
Purchase is important to the marketer as the product was planned, produced,
priced, promoted and distributed after a lot of effort. If purchase does not take
place, the marketer has failed in his marketing effort. He then needs to change the
marketing mix. He has to change entire strategy, as the ultimate aim of the
marketer is to float a product which will generate revenue and bring satisfaction to
the customers. Purchase is important for his success, for achieving his objectives
and for formulating competitive strategies against the competitors. It marks the end
of his search, end of his efforts and chooses the brand of his choice for expected
Objective Study
To analyze the behavior of customers of Malabar Gold.
To know the motivating factors of consumers in purchasing products of
Malabar Gold.
To know how brand preference is formed in purchasing Malabar Gold’s
ornaments among consumers.
To analyze marketing strategies of Malabar Gold.
To ascertain the level of brand loyalty and brand image associated by
consumer with a brand name ‘Malabar Gold’ and the reason for this.
To measure the level of satisfaction of customers of Malabar Gold.
To study the consumer perception towards Malabar Gold.
The MALABAR GROUP OF COMPANIES has launched its gold ornaments
outlet named MALABAR GOLD with entire package of offers and with unique
collections of designs. So after 15 years of business and service, it is important to
know how the customers’ behavior is against its competition and how effective has
been the product positioning. After the purchase of specialty goods or shopping
goods, the customer exhibits post purchase behavior. It may be either cognitive
consonance or cognitive dissonance. The consonance leads to dissatisfaction. But
when it comes to customers going in high value premium segment goods such as
gold, diamond and platinum ornaments, in a high competitive with too many
players in the market, then the customer surely has a wide range of choice to
choose from and carefully evaluates the different showrooms before making a
purchase decision. In such a situation, any of purchase dissonance will lead to very
high degree of dissatisfaction, which may also lead to spreading negative option to
the prospective buyer of jewelers’ outlet. The MALABAR GROUP OF
COMPANIES has launched its gold ornaments outlet named MALABAR GOLD
with entire package of offers and with unique collections of designs. So after 15
years of business and service, it is important to know how the customers’ behavior
is against its competition and how effective has been the product positioning. After
the purchase of specialty goods or shopping goods, the customer exhibits post
purchase behavior. It may be either cognitive consonance or cognitive dissonance.
The consonance leads to dissatisfaction. But when it comes to customers going in
high value premium segment goods such as gold, diamond and platinum
ornaments, in a high competitive with too many players in the market, then the
customer surely has a wide range of choice to choose from and carefully evaluates
the different showrooms before making a purchase decision.
Methodology of Data Collection
Source of data: There are broadly two types of data available to a researcher.
They are ;(a) Primary data (b) Secondary data.
Primary data: It refers to the first hand information collected by the researcher,
specific to the research problem. It includes using different primary data collection
tools such as personal interview using questionnaires, telephone surveys, mail
surveys etc. For the present study, primary data was collected by survey method
using questionnaires.
Secondary data: It is the information that already exists for another purpose. This
refers to all those data which are collected for some earlier research work. The
secondary data for this work was obtained form company profile, company
magazines, website, newspapers, internet, text books, reports and form company
brochures and other promotional materials.
Sampling: In the consumer market research, there is a problem of selecting a
sample of few hundred respondents from a vast population. The reason for
sampling is that it is not possible to cover the entire population in the field of
research.
Limitations of the Study
Time limitation for compelling the project.
The data obtained in some cases may be biased.
Difficulty in communication within the city while conducting the survey.
The information obtained from the consumers based on questionnaires was
assumed to be factual.
Since the survey is based on sampling method, it does not disclose the
character of the entire customers.
Introduction to Gold
The history of gold starts from 2600BC. A huge description is available in the
Egyptian Hieroglyphs. It may be the first metal used by humans and was valued for
ornamentation and rituals. Important locations famous in the name of gold are Red
sea in Saudi Arabia, Lydia, Romania, Las medullas, in Spain, Russia Montana in
Transylvania, Central America, Peru and Columbia.
Today, gold has emerged as an important mean for investments also. Volatile
markets and unstable economic conditions have also added to it. China is largest
producer followed by South Africa. But India is the largest consumer of gold,
Application and Medium of Monetary Exchange
Gold coins intended for circulation from 1526 into the1930s were typically a
standard 22k alloy called crown gold, for hardness. Modern collector/investment
bullion coins are typically 24k, although the American Gold Eagle and British gold
sovereign continue to be made at 22k, on historical tradition. The world wide used
coins are American Gold Eagle, British Gold Sovereign, Canadian Gold Maple
Leaf, Gold Kangaroos, Australian Gold Nugget, Australian Lunar Calendar Series,
Austrian Philharmonic and American Buffalo.
Price of Gold
Like other precious metals, gold is measured by troy weight and by grams. When it
is alloyed with other metals the term carat or karat is used to indicate the amount of
gold present, with 24 karats being pure gold and lower ratings proportionally less.
The purity of a gold bar can also be expressed as a decimal figure ranging from 0
to 1, known as the millesimal fineness, such as 0.995 being very pure. The price of
gold is determined on the open market, but a procedure known as the Gold Fixing
in London, originating in September 1919, provides a daily benchmark figure to
the industry. The afternoon fixing appeared in 1968 to fix a price when US markets
are open.
Factors influencing Price
Today, like all investments and commodities, the price of gold is ultimately driven
by supply and demand, including hoarding and disposal. Unlike most other
commodities, the hoarding and disposal plays a much bigger role in affecting the
price, because most of the gold ever mined still exists and is potentially able to
come on to the market for the right price.
Production
Production in 1970 accounted for 79% of the world supply, producing about 1,000
tones. However by 2007 production was just 272 tones. This sharp decline was due
to the increasing difficulty of extraction, changing economic factors affecting the
industry, and tightened safety auditing. In 2007 China (with 276 tones) overtook
South Africa as the world's largest gold producer, the first time since 1905 that
South Africa has not been the largest.
Overview of Gold Industry
o India is the largest consumer of gold in the world followed by China and
Japan.
o India is emerging as world’s largest trading centre of gold with a target of
US$18 bn set for 2011.
o India dominates the world’s cut and polished diamonds (CPD) market.
o In value terms, the country accounts for approximately 55% of global
polished diamond market and nearly 9% of the jewellery market.
o Surat contributes 90% of India’s total diamond exports.
o India’s domestics branded jewellery market is estimated at Rs 600-700
crores.
o There are 13 bullion importing bank in India.
o India’s gem and Jewellery Exports Promotion Council (GJEPC) is aiming at
turning India into an international diamond trading centre.
o Since India is already enjoying 80-85% of the world CPD market, scope for
further growth in diamond exports is limited. Hence, if India’s gems and
jewellery sector is to substantially increase exports, the best lies in the
jeweller sub sector.
o India’s imports an average of 18000 bars a day, about 70% of the total
demand and the balance is being sourced to indigenous output and metal
recycled from old jewelleries.
o The main reason why India has not made a dent in jeweller exports market is
the existence of government restrictions in their domestic jewellery industry
in the pre-economic liberalization era.
Introduction to Malabar Gold
Malabar Gold Pvt Ltd is a unit of a corporative setup called Malabar Group of
Companies. It is one among the 26 units or firms under Malabar Group of
Companies. Today Malabar Gold is a leading jeweller in south India and Middle
East. It has not only retail outlets but also runs wholesale outlets too. Malabar Gold
is reputed jeweller maker and has millions of customers across India and outside.
The name “Malabar” itself gives a clear idea of its origin, it was born on 5th July
1993 at Kozhikode, which is known as heart of Malabar i.e., northern Kerala. The
founder of Malabar Gold is Mr M.P Ahamed, who is the present chairman.Earlier
Malabar Gold was known as “Malabar Jewellers”. The present corporate office is
at Kozhikode. Within 15 years Malabar Gold is successful in spreading its wings
throughout Karnataka, Kerala, Andhra Pradesh, and Gulf countries.
Social Responsibility toward Customer Behavior
Social responsibility means the obligation of a business to act in manner, which
will serve the best interest of the society. The satisfaction of the customers should
be the primary concern of every business concern. Malabar Gold ensures
marketing of such goods which are demanded by the customers based on their taste
and preferences. It also ensures adequate supply of good quality products at
reasonable price. After all their punch line is “beauty meets quality”.
Collections of Malbar Gold
The exclusive collections of Malabar Gold include:
World class designer jewellery from Italy, Turkey, Korea, Bahrain and
Singapore.
Traditional jewelleries from Karnataka and Kerala.
Royal Mughal collections
Karachi bangles.
Calcutta collections.
Rajkot collections.
Zara collections.
Antique collections.
Hansa collections.
Bombay and Bombay special collections.
Signity studded jewelry.
Daily wear bangles and chains.
Formal or work wear jewelry.
Navrathna, birthstones, lucky stones studded with gold.
Platinum ornaments with “950 Purity Assurance Card”.
Wide range world class branded watches like Omega, Rado, Mont Blanc,
Seiko, Foce, Tissot, Espirit, Continental, Police, Tag Heuer, Caterpillar, D4
swiss, Accurate and Citizen.
Varied collections of their own brand diamond collection called MG
diamonds.
Consumer Behavior of Customers of Malbar Gold
In this chapter an attempt is made to study about behavior of consumers of
consumers in Kasaragod district about Malabar gold.
Showing the no. of customers in sex classes:
Category No. ofRespondents
Percentage
Male 10 10 %Female 90 90 %Total 100 100 %
We have surveyed 100 people from which 90 were female and 10 were men. We
chose women as the dominating influence as jewellery is mostly a women’s’
accessory. Women mostly use jewellery such as bangles, necklace, rings etc. But
men mostly use rings and a bit of necklace as their jewellery. So women use more
variety of jewellery than men, hence we concentrated on surveying women rather
than men.
Showing the no. of respondents belonging to different income level
Income Group (in Rs) No. ofrespondents
Percentage
Below 12000 10 1012000-16000 30 30
16000-20000 40 40
Above 20000 20 20
Total 50 100
10
30
40
20
No of respondents
Below 12000 12000-1600016000-20000Above 20000
We have found that 40% of the 100 people we surveyed had their family income in
between rs 16000-20000. 30% of them ranged about 12000-16000 and below
12000 gathered 10 candidates. We then have the above average group with rs
20000 as their family income. Hence we come to the conclusion that the average
family income of the middle class people who buy golden jewellleries from
MALABAR GOLD is between 16000-20000.
Showing the marital status of the customers
Status No. of Respondents PercentageUnmarried 12 12%Married 88 88%Total 50 100%
Through this survey we found out that 88% of the of the 100 people we surveyed
are married. It gives us a clear indication that married men and women use
jewellery more as after marriage one has to wear more jewellery than that of the
unmarried ones. 12 of the 100 people who were shopping at Malabar Gold wore
rings and bangals before marriage.
Showing the no. of respondents belonging to different age groups
Age No. Of respondents Percentage
Below 18 16 16%
18-28 44 44%
28-38 28 28%
Above 38 12 12%
Total 100 100%
16
44
28
12
Percentage of age group
Below 1818-2828-38Above 38
Through the study we found that women and men’s age ranging from 18-28 wear
most of the jewelleries as this is the best age for getting married and we found that
women and men above the age wear too little jewellery. Men and women falling
below the age of 18 also wear little jewellery.
Product wise classification of customers
Product No. Of respondents
Percentage
Gold 70 70%
Watch 10 10%
Platinum 10 10%
Diamond 10 10%
Total 100 100%
We have surveyed to find that Malabar Gold customers buy gold more than their
platinum, diamonds and watches. We discovered that 70 people out of 100
customers buy gold from their shops. Watches, Platinum and diamonds are bought
by 10 people each. So it gives us a clear indication that gold is the favourite
product of the customers of Malabar Gold.
Showing no of customers aware of products other than gold available in Malabar
Gold
Status No of respondents Percentage
Yes 88 88%
No 12 12%
Total 100 100%
88
12Awareness of people
YesNo
It is good to know that, 88% of the customers know that other products are
available in the stores of Malabar Gold. 12% of the people don’t even know what
the materials available in the stores are even. Whether the customers discover those
materials by advertisements or merchandise is a different issue.
Showing the no. of respondents belonging to different groups of the amount of
gold they own
Amount of Gold No. Of respondents
Percentage
Below 56 08 11.43%
56-120 22 31.43%
120-200 26 37.14%
Above 200 14 20%
Total 70 100%
We found that most of the customers are loyal to Malabar Gold and have at least
120 carat gold along with them. Their maximum inventory of the customers would
be close to 200 carat. The Customers buy freely from the stores of Malabar Gold
and find the venture satisfactory.
Showing no. of customers satisfied with making charges of ornaments in Malabar
Gold.
Status No of respondents Percentage
Yes 80 88.88%
No 10 11.12%
Total 90 100%
Showing the media through which the customers came to know about Malabar
Gold.
Media No of respondents Percentage
Newspaper 20 20
Television 40 40
Yellow pages 10 10
Friend & Relatives 30 30
Total 100 100
20
4010
30
Percentage of media effect
NewspaperTelevisionYellow pagesFriend & Relatives
Our survey amicably shows that the customers are made aware of Malabar Gold
through Newspaper mainly. Plus this store relies on mouth to mouth publicity.
40% of 100 people knew about Malabar through Newspapers. 30 out of 100 people
are made aware by their friends and relatives. It is maybe because of women
conversing about the jewellery they wear when they go to parties and other social
gathering
Showing how the customers rate the designs of ornaments.
