Research Regarding Buying Behavior

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BUSINESS RESEARCHASSIGNMENT-1

Buying behaviourof goldwith regards to Tanishq

SHIV MOHAN SINGH

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1STYEAR P.G.D.M. C

Submitted To:

PROF. RAJESH SINHA


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Business Research Shiv 20/132 Page 2

DECLARATION

This project report entitled study of customers perception has been submitted to Apeejay

school of management, new delhi, in partial fulfilment of Business Research assignment.

Here by I, undersign that this project report has been completed by me under the guidance

of Professor Rajesh sinha (Faculty: business Research Apeejay school of management, new

delhi)

Study of this Project Report is entirely result of my own efforts and research is original in

nature. This Project Report is not submitted either in part or whole to any other institute for

any other degree.

Place: Dwarka, New Delhi

Date: 14th march 2013

Shiv mohan singh

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ACKNOWLEDGEMENT

I would like to express my gratitude to:

(i) Professor Rajesh sinha, for giving me a chance to learn things in a practical andinnovative way, and gain some experience for the same. I would also like to thank

his for all his support and to encourage us and motivate us to learn new things

and in different ways.

(ii) Mr Ajay Bhadwar (manager TANISHQ, CP, New Delhi) for his co-operation, andinformation sharing.

(iii) Mr Gaurav (RBM, TANISHQ north region).

I m greatly thankful to all the advisors who helped me knowingly and for giving information

and interest in report.

Thanking You,

Shiv mohan singh

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Content index

Executive Summary

Introductioni) Tanishq profileAbout The Research

i) Purpose Of The Researchii) Problem Of The Researchiii) Objective Of The Researchiv) Limitations Of The Research

v) Significance Of The ResearchSample

i) Sampling Frameii) Sampling Unitiii) Sample Sizeiv) Sample Size Selection

Research Methodologyi) Research Tools

a) Exploratory Research Questionnaire Survey

b) Descriptive ResearchDetailed FindingsConclusionRecommendation & Conclusion


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EXECUTIVE SUMMARY

INTRODUCTIONTANISHQ PROFILE

Evolution of Tanishq

Titan came into existence in July 1984, when the Tata Group joined hands with the Tamil

Nadu Industrial Development Corporation (TIDCO) to make a foray into the watch industry.

Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully

integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to

manufacture four tonnes of gold in a year. Titan launched these products under the brand

name ofTanishq, in 1995. The name Tanishq, a blend of two words, 'tan' (body) and 'ishq'

(love), was coined by Xerxes Desai, the Vice-Chairman and Managing Director of Titan.To change its image from a watch manufacturer to a fashion accessories manufacturer, Titan

was renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to

4.18 million units in 1996 to meet the domestic and international demand. From the late

1990s, Titan's commitment to the jewellery business increased.

When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000

crore was mostly unorganized, with around 3.5 lakh players. Before 1992, only the Metal and

Mineral Trading Corporation and the State Bank of India were allowed to import gold. In

1992, as part of economic liberalization, the government abolished the Gold Control Act of

1962, allowing free import of gold. In 1993, private companies were allowed to enter

the hitherto restricted gold and diamond mining industry. Foreign investors wereallowed to hold up to 50% equity in mining ventures.


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Growth of Tanishq

Revenue in million Rupees

0

5000

10000

15000

20000

25000

2000 2001 2002 2003 2004 2005 2006 2007 2008


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SWOT ANALYSIS

STRENGTH Purity of jewellery through karat meter is still the sign of total purity. Distribution network and retailing store are in place for the company with 130 stores

countrywide.

Mind boggling/award winning designs have come for the company. Diversity in jewellery gold/diamond/platinum enhances the product range of the

company.

They also have competitive prices for the entire product ranges as compared to thecompetitors.

WEAKNESSESCapture Rs 70,000-crore Indian jewellery market. Tanishq comprises a small share of the

overall Rs 70,000-crore Indian jewellery market and hence it needs to increase its market

share in this huge industry. Escalated gold costs has caused lower margins is to push sales as

much as possible.

OPPORTUNITIES

Global markets like USA needs to be looked at.

Low cost and easy to wear jewellery should be further promoted. Customized jewellery

designs should provided to the customers. Concentrate on Gen-X by having trendy jewellery.

Expand retail stores in India to further increase reach.

STRENGTH

Purity (karat meter)

Distribution network and retailing store

Award winning designsDiversity in jewellery

gold/diamond/platinum

Competitive prices

OPPORTUNITIES

Global markets

Low cost jewellery

Customized jewellery designsConcentrate on Gen-X by having

trendy jewellery

Expand retail stores

WEAKNESS

Capture Rs 70,000-croreEscalated gold costs lower margins

No gold hall marking on their product.

THREATS

CompetitionIncreasing gold cost.

Gold not seen as s source of

investment. (Luxury is needed).


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THREATS

Competition from local jewellers all over India. Lack of Skilled workers in jewellery industry.

Gold is no longer seen as source of investment.

People are more concerned about design and luxury.

Major Products of Tanishq In GOLD

ZoyaHigh value product with high value workmanship and diamonds

Secrets of the Egyptian pharaohs masked with the mystery of the comos; Oriental art

embellished with occidental architecture

Fashion Earrings The Fashion earring collection; has a ranged of over 300 exclusive designs

Wedding Collection The bride blushes

Taj collection Awesome workmanship of kundan with polka stones.

Mia collection Working women collection


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ABOUTTHERESEARCH

THE PURPOSE OF THE RESEARCH

The basic purpose of this research is to find the buying behaviour of people of New

Delhi toward gold and gold jewellery.

PROBLEM

Why customer hav to pay little higher price for the gold in tanishq

OBJECTIVESThe objectives of the study are as follows:

1) The objective of study was to find the actual reason why middle class people are not going toTanishq

2) To find what they like & dislike about Tanishq.3) On the basis of in depth interview i got 6 criteria in which i could measure the attitude of

people towards Tanishq.

Limitations

The survey was conducted within the limited time frame; so few shortcomingsmay be expected.

The respondents personal bias may be another factor, which isuncontrollable.

The finding of the survey is strictly based on the responses of the respondents.It is difficult to find the euthenics be true, so i am assuming them to be true.

It was very difficult to explain the respondents about how to fill thequestionnaire & it took time for data collection.


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Hypothesis

a) Price does not affect the buying of gold.b) Quality of gold does not affect the buying of goldc) Service does not affect the buying of goldd) Pattern does not affect buying of golde) Location of store does not affect buying behavior of gold.f) Ambiance of store effect buying behavior of gold.

VIEW ABOUT THE TOPIC

SAMPLE

Sampling Frame:

A Sampling frame consists of a list of item from which the sample is to

be drawn.

The sample frame for this research constitutes all the customers who

have visited Tanishq store for purchasing gold.

Sampling Unit:

A decision has to be taken concerning a sampling unit before selectingsample sampling unit may be a geographical one, a construction unit, a social unit

or it may be an individual.

The sample unit for this research constitutes the organization that is

Tanishq only dealer in new delhi.

Sample Size:

The sample size of my research was 150 but only 121 people have visited

tanishq store.

Sample Size Selection:

sample size was selected on the basis of the 3 factors.

a) It was difficult to locate the customer who have visited totanishq.

b) The respondents were not much educated so it was difficultto make them understand about the questionnaire.


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c) People were not easily available outside Tanishq.

RESEARCH METHODOLOGY

Research Tools:

The research tool used for this research is PRIMARY DATA

In primary data the following research design is being followed:

i) Exploratory Research:Questionnaire Survey (Sample Size 150)

ii) Descriptive Research:On the basis of the questionnaire survey, the analysis is

done in order to find out the reason why people are not visiting

Tanishq

Research Design

I have used 2 types of research design they are

a) Exploratory researchb) Descriptive research

Exploratory research because I m not knowing the actual problem faced by tanishq. So for

that i did an In-depth interview of 3 people to find what are the major findings & difficultiesare faced by them.

I did Interview of

a) Mr Vidya Sagar who is the RBM of tanishq of north and central region.In the interview i asked him diifrent question regarding the sales & their way of operation &

different aspects about Tanishq.

From the answers given by Mr Vidya sagar, I found that major reason why people are not

turning out towards Tanishq is because of Price a bit higher & pattern availability in

Tanishq. He also told me the major reason why people are coming to Tanishq is the quality


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of gold & services provided by them. He also said that people who love the ambiance of store

may affect the buying decision.

Then I interviewed Mr Suresh Mehta the owner of a franchise store of Laxminagar, New

Delhi it own & I asked him the same questions what I asked Mr. Vidya Sagar

I found that

a) Major people who buy gold from there are their regular customers from long timeb) The people have trust on the purity of goldc) He also said that people are having bad experience of going to Tanishq as the

price of gold is more than what they are paying to normal retailers.

d) He also said that middle class people of New Delhi are more price conscious & notquality conscious.

Then I interviewed Mr Ajay Bhadwar the manager of a company store of cannought

place, New Delhi. I asked him the same questions what I asked Mr. Vidya Sagar. Actuallywith him I wanted to know the on the floor experience of his own with customers.

He told me that people who purchase from us they always love to purchase with us

just because not the quality but also we provide the best shopping experience, service,

greeting, service and well informed executives.

From the detailed interview of these 2 people I thought that major reasons which can affect

the purchase decision of people buying gold are

1) Price2) Quality3) Service4) Availability of pattern5) Proximity to market6) Ambiance of store


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DETAILED FINDINGS

Over All Sample size

The sample was 150 but out of which 29 people didntwent to Tanishq for buying of

gold. So my sample size came to 121.

Segmentation According to Gender

Out of 121 there were 65 female that constitute 54% of total sample & rest are male

they are 56 which contributes 46% of total sample.

81%

19%

Sample Size

Visited

Not visited

male, 56

female, 65

male

female


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Annual income of Respondents

The respondents average income lies from 5000 to 30000 & above so respondents

were

a) 5000 10000 = 6b) 10000 20000 = 11c) 20000 30000 = 18d) 30000 & above = 86

People who said they visit Tanishq & again goes for repurchase

The above charts gives me the detail of people who visits Tanishq for repurchase.

5000-10000

10000-20000

20000-30000

30000 & Above

Yes, 28

No, 93


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Hypothesis Testing

X2 = (o-e)2/ e

1)Price does not affect the buying of gold.Price

Particular 1 2 3 4 5 Total

1 3 12 11 4 0 30

2 8 15 31 12 0 66

3 1 0 6 7 4 18

4 0 0 1 1 2 4

5 0 0 0 1 2 3Total 12 27 49 25 8 121

Observed Expected o-e 2(o-e) 2(o-e)/e

3 2.97 0.03 0.0009 0.000303

12 6.69 5.31 28.1961 4.214664

11 12.14 -1.14 1.2996 0.107051

4 6.19 -2.19 4.7961 0.774814

0 1.98 -1.98 3.9204 1.98

8 6.54 1.46 2.1316 0.325933

15 14.72 0.28 0.0784 0.005326

31 26.2 4.8 23.04 0.879389

12 13.63 -1.63 2.6569 0.19493

0 4.36 -4.36 19.0096 4.36

1 1.78 -0.78 0.6084 0.341798

0 4.01 -4.01 16.0801 4.01

6 7.28 -1.28 1.6384 0.225055

7 3.71 3.29 10.8241 2.917547

4 1.19 2.81 7.8961 6.6353780 0.39 -0.39 0.1521 0.39

0 0.89 -0.89 0.7921 0.89

1 1.61 -0.61 0.3721 0.231118

1 0.82 0.18 0.0324 0.039512

2 0.26 1.74 3.0276 11.64462

0 0.29 -0.29 0.0841 0.29

0 0.66 -0.66 0.4356 0.66

0 1.21 -1.21 1.4641 1.21

1 0.61 0.39 0.1521 0.249344

2 0.19 1.81 3.2761 17.24263


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The hypothesis of these question is that the price does not effect the buying behavior of

consumer that is Ho.

So from the calculation i got the value of H0 as 59.8149

So when compared to tabulated value of the number that is (r-1)*(c-1) gives me the tabulated

value so for my question (5-1)*(5-1) = 16 is the degree of freedom.

The value for the 16 is 26.3

So Ho>H1 so hypothesis is rejected.

2) Quality of gold does not effect the buying of goldQuality

Particular 1 2 3 4 5 total

1 3 2 2 0 0 7

2 1 4 5 2 0 12

3 2 10 20 11 3 46

4 6 9 18 8 5 465 0 2 4 4 0 10

Total 12 27 49 25 8 121


3 0.69 2.31 5.3361 7.733478

2 1.56 0.44 0.1936 0.124103

2 2.83 -0.83 0.6889 0.243428

0 1.44 -1.44 2.0736 1.44

0 0.46 -0.46 0.2116 0.46

1 1.19 -0.19 0.0361 0.030336

4 2.67 1.33 1.7689 0.662509

5 4.85 0.15 0.0225 0.004639

2 2.47 -0.47 0.2209 0.089433

0 0.79 -0.79 0.6241 0.79

2 4.56 -2.56 6.5536 1.437193

10 10.26 -0.26 0.0676 0.006589

Total 59.8194


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20 18.62 1.38 1.9044 0.102277

11 9.5 1.5 2.25 0.236842

3 3.04 -0.04 0.0016 0.000526

6 4.56 1.44 2.0736 0.454737

9 10.26 -1.26 1.5876 0.154737

18 18.62 -0.62 0.3844 0.020644

8 9.5 -1.5 2.25 0.236842

5 3.04 1.96 3.8416 1.263684

0 0.99 -0.99 0.9801 0.99

2 2.23 -0.23 0.0529 0.023722

4 4.04 -0.04 0.0016 0.000396

4 2.06 1.94 3.7636 1.82699

0 0.66 -0.66 0.4356 0.66

Total 18.99311

The hypothesis of these question is that the Quality does not affect the buying behavior of






So Ho


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0 0.22 -0.22 0.0484 0.22

1 0.4 0.6 0.36 0.9

0 0.2 -0.2 0.04 0.2

0 0.06 -0.06 0.0036 0.06

1 0.09 0.91 0.8281 9.2011110 0.22 -0.22 0.0484 0.22

0 0.4 -0.4 0.16 0.4

0 0.2 -0.2 0.04 0.2

0 0.06 -0.06 0.0036 0.06

1 2.08 -1.08 1.1664 0.560769

6 4.68 1.32 1.7424 0.372308

5 8.5 -3.5 12.25 1.441176

8 4.33 3.67 13.4689 3.1106

1 1.3 -0.3 0.09 0.069231

6 6.94 -0.94 0.8836 0.12732

15 15.62 -0.62 0.3844 0.024609

33 18.35 14.65 214.6225 11.69605

10 14.46 -4.46 19.8916 1.375629

6 4.63 1.37 1.8769 0.405378

4 2.78 1.22 1.4884 0.535396

6 6.25 -0.25 0.0625 0.01

10 11.34 -1.34 1.7956 0.158342

7 5.79 1.21 1.4641 0.252867

1 1.85 -0.85 0.7225 0.390541

32.08133

The hypothesis of these question is that the service does not effect the buying behavior of







So service does matter in buying gold.

4 )Pattern does not effect effect buying behavior of consumers.

Particular 1 2 3 4 5 total

1 0 2 4 0 0 6

2 5 7 16 8 3 39

3 3 11 16 7 2 39


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4 3 6 4 6 1 20

5 1 1 9 4 1 17

Total 13 27 49 25 7 121

PATTERN


0 0.65 -0.65 0.4225 0.65

2 1.34 0.66 0.4356 0.325075

4 0.45 3.55 12.6025 28.00556

0 1.25 -1.25 1.5625 1.25

0 0.35 -0.35 0.1225 0.35

5 4.19 0.81 0.6561 0.156587

7 8.7 -1.7 2.89 0.332184

16 2.9 13.1 171.61 59.17586

8 8.06 -0.06 0.0036 0.000447

3 2.26 0.74 0.5476 0.242301

3 4.19 -1.19 1.4161 0.337971

11 8.7 2.3 5.29 0.608046

16 2.9 13.1 171.61 59.17586

7 8.06 -1.06 1.1236 0.139404

2 2.26 -0.26 0.0676 0.029912

3 2.15 0.85 0.7225 0.336047

6 4.46 1.54 2.3716 0.531749

4 1.49 2.51 6.3001 4.228255

6 4.13 1.87 3.4969 0.846707

1 1.16 -0.16 0.0256 0.022069

2 1.83 0.17 0.0289 0.015792

1 3.79 -2.79 7.7841 2.053852

9 1.26 7.74 59.9076 47.54571

4 3.51 0.49 0.2401 0.068405

1 0.98 0.02 0.0004 0.000408

206.4282

4) Pattern does not effect buying behavior of gold.The hypothesis of these question is that the pattern does not effect the buying behavior of


So from the calculation i got the value of H0 206.4282





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So it has been analyzed that Tanishq has good variety of pattern.

5)Proximity does not affect buying of gold.Particular 1 2 3 4 5 Total

1 2 0 6 2 0 10

2 2 2 3 0 1 8

3 4 6 18 8 4 40

4 3 7 14 9 1 34

5 1 12 8 6 2 29

Total 12 27 49 25 8 121

Proximity

Observed expected o-e 2(o-e) 2(o-e)/e

2 0.99 1.01 1.0201 1.030404

0 2.23 -2.23 4.9729 2.23

6 3.88 2.12 4.4944 1.158351

2 2.07 -0.07 0.0049 0.002367

0 0.67 -0.67 0.4489 0.67

2 0.79 1.21 1.4641 1.853291

2 0.79 1.21 1.4641 1.853291

3 3.11 -0.11 0.0121 0.003891

0 1.65 -1.65 2.7225 1.65

1 0.53 0.47 0.2209 0.416792

4 3.97 0.03 0.0009 0.000227

6 8.93 -2.93 8.5849 0.961355

18 15.54 2.46 6.0516 0.389421

8 8.27 -0.27 0.0729 0.008815

4 2.64 1.36 1.8496 0.700606

3 3.37 -0.37 0.1369 0.040623

7 7.59 -0.59 0.3481 0.045863

14 13.21 0.79 0.6241 0.047245

9 7.02 1.98 3.9204 0.558462

1 2.25 -1.25 1.5625 0.694444

1 2.88 -1.88 3.5344 1.227222

12 6.47 5.53 30.5809 4.726569

8 11.26 -3.26 10.6276 0.943837

6 5.99 0.01 1E-04 1.67E-05

2 1.92 0.08 0.0064 0.003333

Total 21.21642


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The hypothesis of these question is that the proximity does not effect the buying behavior of



So when compared to tabulated value of the number that is (r-1)*(c-1) gives me the tabulatedvalue so for my question (5-1)*(5-1) = 16 is the degree of freedom.


So Ho


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4 2.38 1.62 2.6244 1.102689

Total 15.61287

The hypothesis of these question is that the proximity does not effect the buying behavior ofconsumer that is Ho.





So Ho


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Questionnaire

APEEJAY SCHOOL OF MANAGEMENT

Dear Sir/Madam

I am the students of 1st Year PGDM Course of Apeejay School of Management. As a part of my

research study I am conducting a survey regarding the perception of people regarding the purchase of

gold from different organized & Unorganized Retailers.

Guidelines for filling the form:-

1) Please check the box wherever required.2) Only 1 check per question.

Q 1 ) Name:_______________________________________________________

Q 2) Gender - male female

Q 3) Age :- _________________

Q 4) Occupation: - Service Business Others

Others:-__________________________

Q 5) Monthly average INCOME?

5000-10000 10000-20000 20000-30000 30000 &

above

Q 6) how often you visit jewellery store?

Once a month once a year

On Occasion

Q 7) You Buy jewellery from

Place Store Name

delhi ___________________


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UP ___________________

Gurgaon ___________________

Rajasthan ___________________

Uttarakhand ___________________

Q 8) do you buy jewellery from same store every time ?

Yes No

If Yes/No

Why?___________________________________________________________

Q 9 ) Rate your jewellery store from 1 to 5

where 1 is the WORST & 5 is the BEST

a) Product are worth price you payb) Purity & quality of gold

c) The service you get in the stored) The Number of patterns available

e) Proximity to marketf) Ambiance of Store

Q 10) Are You aware about Tanishq showroom opened in New Delhi?

Yes No

Q 11) How did you come to know about Tanishq?

TV News Paper Hoardings

Pamphlets Friends/relatives Others

Q 12) Have you visited Tanishq Store?

Yes No


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Q 13) Rate Tanishq on flowing Criteria Given below

Particular V.Good Good Average Bad V.bad

a) Priceb) Purity & Quality of Goldc) Service Offeredd) Patterns Availablee) Location of Storef) Ambiance of store

Q 14) During Re-Purchase you often go to Tanishq?

Yes No

Q 15) Would you recommend others for Buying Tanishq Products?

Yes No

Q 16) Rate tanishq on over all basis?

Particular V.Good Good Average Bad V.bad

Tanishq As a Store

Thank You


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FINDINGS

On the basis of chi-square test the relation between the variables are significant & few are

not significant.

Variables which were significant in the research & which affects the buying behavior of gold

are

a) Because of price people are not visiting Tanishq.b) People are happy with the quality of Tanishq & they go to Tanishq only because

the purity & quality of gold.

c) The people also visit Tanishq because they provide better services then the otherretailers.

d) The pattern are also major factor because of which people does not preferTanishq.

e) The people say that the location of store is not affecting them to visit Tanishq.f) People are not affected by the ambiance of store

From these i can conclude that people are more sencisitve towards price, Quality &

availability of pattern. If they find these 3 things ok & they fill that this is what they wanted

they will buy from there only.

For people of New Delhi ambiance, proximity to market & service are less important.


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RECOMMENDATION

&

CONCLUSION

Conclusion

People are more price conscious & they feel that the price in Tanishq are more than what the

normal retailers have. They also feel that the quality they get is much higher than the quality

what the normal retailers give. They also found that the patterns available are lesser than

what they get in the normal retail store. They also are service oriented so they are more

attracted because of service they get. People are not affected with the ambiance of the shop.

Recommendation

I would recommend Tanishq following things

a) The making charge is affecting their sales so they should cut down their prices.b) The patterns are comparative less so they should provide more number of

patterns

c) they should increase their market share by bringing more innovation on theirgoing on schemes & loyalty programs criteria should reduce, occasional gifts to

their high value customers.

d) People are more service conscious so they can target young business man & youngprofessional as they are now more in investing money in gold. Such as Mia

collections.

e) Creating more knowledge to the people about diamond and gold purity.

THANK YOU

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Research Regarding Buying Behavior

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