Top Banner
70 CHAPTER 3 RESEARCH METHODOLOGY 3.1 CONCEPTUAL FRAMEWORK The framework of this research seeks to understand perceptions of various value dimensions of branded gold jewellery and its impact on buying decisions. The first part gives an idea of general definitions of concepts and the models which help in understanding and deriving the factors to be studied in this research. This research explores to understand the factors that influence the perception of women when they want to buy branded gold jewellery, their awareness levels about gold brands in Bangalore. Four key psychological processes motivation, perception, learning and memory fundamentally influence consumer responses. This study focuses on perception factors. Below model were used as framework for the research purpose. Consumer Decision Model The Consumer Decision Model (also known as the Engel-Blackwell-Miniard Model) was originally developed in 1968 by Engel, Kollat, and Blackwell and has gone through numerous revisions; Problem / Need Recognition Information Search Evaluation of Alternatives Purchase Post-purchase Evaluation Consumer buying decision process Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.
16

CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

Mar 29, 2018

Download

Documents

leliem
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

70

CHAPTER 3

RESEARCH METHODOLOGY

3.1 CONCEPTUAL FRAMEWORK

The framework of this research seeks to understand perceptions of various value

dimensions of branded gold jewellery and its impact on buying decisions. The first

part gives an idea of general definitions of concepts and the models which help in

understanding and deriving the factors to be studied in this research. This research

explores to understand the factors that influence the perception of women when they

want to buy branded gold jewellery, their awareness levels about gold brands in

Bangalore. Four key psychological processes – motivation, perception, learning and

memory – fundamentally influence consumer responses. This study focuses on

perception factors. Below model were used as framework for the research purpose.

Consumer Decision Model

The Consumer Decision Model (also known as the Engel-Blackwell-Miniard Model)

was originally developed in 1968 by Engel, Kollat, and Blackwell and has gone

through numerous revisions;

Problem / Need Recognition

Information Search

Evaluation of Alternatives

Purchase

Post-purchase Evaluation

Consumer buying decision process

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 2: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

71

The following flow diagram narrates how a consumers’ buying decision happens

when a perceived need arises.

Problem / Need Recognition - Perceiving a Need

Information Search Seeking - Value

Evaluation of Alternatives - Assessing Value

Purchase - Buying Value

Post-purchase Evaluation - Value in Consumption or Use

When a brand is notified in the minds of consumers and when there is harmony

between the content of the message and its perception, a marketing message

reinforces the organizations or Brand Trust.

Problem / Need Recognition

Memory Search

Intention

Purchase

Problem solving behaviour

A satisfied customer may take a shorter route while repeating the purchase. Above is

the stages. Need recognition leads to memory search which reveals clear intentions to

buy on account of previous satisfaction. Ultimately, it leads to purchase. There is an

element of brand loyalty here, which gets reinforced by continued satisfaction since

quality/ trust is maintained.

Problem / Need Recognition

Purchase Decision

Brand Evaluation

Brand beliefs formed by learning from various sources

Feedback

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 3: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

72

The consumer involvement is high, but in his/her perception, there are minor

differences between the competing brands. Certain set of perceptions are strong and

when this is aligned with the marketer efforts, it can create a strong influence to buy

from same seller. Hence it is important to understand the factors which influence their

perception which ultimately leads to buying decisions.

Schiffman and Kanuk (2007) defines consumer behaviour: “the behavior that

consumers display in searching for, purchasing, using, evaluating, and disposing of

products and services that they expect will satisfy their needs”

A genuine brand, according to Duane E Knapp, has three basic characteristics: (1)

The internalized sum of impressions as received by the consumers (2) leading to a

distinctive position in their mind space (3) based on emotional and functional benefits

Perception is important because people selectively perceive what they want and it

affects how people see risks in a purchase

Howard-Sheth Model on Consumer Behaviour

The model clearly states that the Perceptual constructs are strongly influenced by

Input variables like: Significative, Symbolic and Social. These concepts were used

while framing the questionnaire.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 4: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

73

Fig 3-1: Howard-Sheth Model on Consumer Behaviour

Input variables are the environmental stimuli that the consumer is subjected to, and is

communicated from a variety of sources.

Significative stimuli are actual elements of products and brands that the buyer

confronts (Loudon & Della Bitta 1993), while

Symbolic stimuli refers to the representations of products and brands as constructed

by marketers through advertising and act on the consumer indirectly (Foxall 1990)

(Howard & Sheth 1969). Social stimuli include the influence of family and other peer

and reference groups. The influence of such stimuli is internalised by the consumer

before they affect the decision process.

As shown in Model the Hypothetical Constructs (or Intervening Variables) can be

classified in two categories: those described as Perceptual constructs, and those

described as Learning constructs. Perceptual constructs include:

•Sensitivity to information – the degree to which the buyer controls the flow of

stimulus information.

•Perceptual bias – distortion or alteration of the information received due to the

consumers fitting the new information in to his or her existing mental set.

• Search for information – the active seeking of information on consumption choices.

In combination these perceptual constructs serve to control, filter and process the

stimuli that are received.

The model draws heavily on learning theory concepts (Loudon ANDDella Bitta1993),

and as such six learning constructs are represented:

•Motive – described as either general or specific goals impelling action.

•Evoked Set – the consumers’ assessment of the ability of the consumption choices

that are under active consideration to satisfy his or her goals.

•Decision mediators – the buyer’s mental rules or heuristics for assessing purchase

alternatives.

•Predispositions – a preference toward brands in the evoked set expressed as an

attitude toward them.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 5: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

74

•Inhibitors – environmental forces such as limited resources (e.g. time or financial)

which restrain the consumption choice.

•Satisfaction – represents a feedback mechanism from post-purchase reflection used

to inform subsequent decisions

Another theoretical model of Determinants of a consumers’ luxury value perception

from Wiedmann, Hennigs, Siebels - Measuring Consumers’ Luxury Value

Perception: A Cross-Cultural Framework was used to support the research which

included:

FINANCIAL DIMENSION OF LUXURY VALUE PERCEPTION – The financial

dimension addresses direct monetary aspects such as price, and best value for money.

FUNCTIONAL DIMENSION OF LUXURY VALUE PERCEPTION – The

functional dimension of brands refers to the core benefit and basic utilities that drive

the consumer based luxury value such as the quality, uniqueness, usability, reliability,

and durability of the product

INDIVIDUAL DIMENSION OF LUXURY VALUE PERCEPTION – The individual

dimension focuses a customer’s personal orientation on luxury consumption and

addresses personal matters such as materialism self-identity value

SOCIAL DIMENSION OF BRAND – The consumption of luxury goods appears to

have a strong social function. Therefore, the social dimension refers to the perceived

utility individuals acquire by consuming products or services recognized within their

own social group(s) such as conspicuousness and prestige value, which may

significantly affect the evaluation and the propensity to purchase or consume brands

Luxury brands have three components: the objective (material), the subjective

(individual) and the collective (social).

Above models contributed in the Conceptualization for the research. The section C

part of the questionnaire is strongly driven from the factors from these models to

study the determinants of a women consumers’ value perception of branded gold

jewellery like price, resale, functional aspects, status etc.,

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 6: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

75

3.2 OPERATIONAL DEFINITIONS

A. General Definitions

Brand can be defined as a "name, term, symbol, logo, design, or combination of

them, aims at identifying a product or service of either one seller or a group of sellers,

and distinguishing these products or services from those of competitors". Brand

further can refer to "set of expectations and perceptions that rose from the experience

of the product or the organization" (Davis, 2002).

‘Jewellery’ is literally any piece of fine material that someone uses to adorn

themselves. Derived from the word jewel, which was anglicized / in English idiom

from the old French “Jouel” in around the 13th century. In Old English gelo, stands

for yellow.

Perception : the act or the effect of perceiving

These factors reside:

i) In the perceiver

ii) In the Object or target being perceived or

iii) In the context of the situation in which the perception is made.

According to Al Ries and Laura Ries (1998), a brand is a singular idea or concept that

you own inside the mind of the prospect.

Luxury is particularly slippery to define. A strong element of human involvement,

very limited supply and the recognition of value by others are key components

(Cornell 2002, p. 47). Defined as goods for which the simple use or display of a

particular branded product brings esteem for the owner, luxury goods enable

consumers to satisfy psychological and functional needs.

B. Operational Definitions

Assay: To test a metal for purity.

Assaying: The method of accurate determination of the gold content of the sample

expressed in parts per thousand (%).

Bullion Coin: A legal tender coin whose market price depends on its gold content,

rather than its rarity or face value.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 7: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

76

Bullion: Refined gold that is at least 99.5% pure, usually in the form of bars, wafers

or ingots.

Carat: One-twenty fourth part by mass of the metallic element gold.

Consumer demand: The sum of jewellery and total bar and coin purchases for a

country (i.e. the amount of gold acquired directly by individuals).

Fabrication: Fabrication is the first transformation of gold bullion into a semi-

finished or finished product.

Fine Gold: It is gold having fineness 999 parts per thousand and above without any

negative tolerance. Gold is produced in bars up to a purity of 999.9 (often referred to

as “four nines”).

Gold Standard: A monetary system based on convertibility into gold; paper money

backed and interchangeable with gold.

Gold: The metallic element gold, free from any other element.

Grades: Gold and gold alloys shall be classified in accordance with the following

grades depending upon

Grain: One of the earliest weight units used for measuring gold. One grain is

equivalent to 0.0648 grams.

Hallmark: Mark, or marks, which indicate the producer of a gold bar and its number,

fineness, etc.

Karat: Unit of fineness, scaled from one to 24. 24 karat gold (or pure gold) has at

least 999 parts pure gold per thousand; 18-karat has 750, parts pure gold and 250 parts

alloy, etc.

Gold Bar: A Gold bar weighing one kilogram – approximately 32.1507 troy ounces.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 8: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

77

Marking : The gold, gold alloys, jewellery/artifacts shall be stamped with the

Standard Mark in this case known as the “Hallmark” by BIS recognized assaying and

hallmarking centers only.

Physical bar demand: Global investment in physical gold in bar form.

Recycled gold: Gold sourced from previously fabricated products which has been

recovered and refined back into bars.

Technology: This captures all gold used in the fabrication of electronics, dental,

medical, industrial, decorative and other technological applications, with electronics

representing the largest component of this category. This includes gold destined for

plating jewellery.

Tonne: 1,000 kg or 32,151 troy ounces of fine gold.

Troy Ounce: The word ounce when applied to gold, refers to a troy ounce. 1 troy

ounce is equivalent to 31.1034768 grams.

Chapter note no. 12 of Central Excise Tariff provides that, ‘brand name’ or ‘trade

name’, whether registered or not, is a name or a mark, such as symbol, monogram or

label which is used to indicate a connection, in the course of trade, between a product

and some person using the name or mark with or without indicating the identity of

that person.

Exclusive Outlet : where only one brand of jewellery is sold and mostly these outlets

are spread in many places with their branches.

Speciality Stores: Outlets which are popular for particular designs or stlye of

jewellery.

General Jeweller : Any seller who owns the business individually , mostly caters to

smaller needs and works on personal customer network.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 9: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

78

3.3 HYPOTHESIS DEVELOPMENT

With regard to the objectives mentioned, the following null hypotheses were

developed.

Hypothesis

H1: The perception of various value dimensions is same across the age levels

of respondents.

H2: The perception of various value dimensions is same across the education

levels of respondents.

H3: The perception of various value dimensions is same across the

occupations of respondents

H4: The perception of various value dimensions is same across religions of

respondents.

H5: The perception of various value dimensions is same across the income

levels of respondents

H6: The perception of various value dimensions is same across the buying

preferences of respondents

H7: There is no linear relationship existing between social status, quality

oriented value and branded gold jewellery decision making

3.4 SOURCES OF DATA

DATA SOURCES:

This is a combination of descriptive and analytical research. Data was collected from

both primary and secondary sources.

Primary source of data was majorly through questionnaires and interviews with gold

industry experts, Designers and Faculty teaching at Vogue Institute of Fashion

Technology, Bangalore were consulted to collect the primary data.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 10: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

79

Secondary Data was from various Reports from world gold council , KPMG,

Jewellery research organizations were studied for the research. Numerous Journals,

Case Studies, Newsletters, Bulletins, Newspaper, Magazines and website information

were studied to collect the data for the research.

Primary Data collection instrument:

Since the study demands the collection of customer perceptions of women, a detailed

questionnaire was prepared for collecting data which contained the following aspects :

Demographic details

Preferences during buying gold jewellery

Role of brand perception in choosing branded gold jewellery

Influencers during buying decisions of branded gold jewellery

Occasions of gold purchase

Frequency of purchase

Brand awareness and marketing efforts by brands etc.,

Types of Gold jewellery purchased

Assess various well known brands

The questionnaire is divided into Section A, B and C to collect data about the above

listed factors as follows :

SECTION A - Profile of the Respondents

SECTION B - Purchase Behaviour

SECTION C - Perception towards Branded Jewellery over Unbranded

Constructs in section C were measured on Five-point Likert scales, ranging from

1(strongly disagree) to 5 (strongly agree).

Before the questionnaire was finalized, academic professionals reviewed the

questionnaire to assure content validity. Revisions and corrections were made

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 11: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

80

accordingly. The instrument was pilot-tested with a sample of 100 and later used for

the actual sample data collection.

3.5 STUDY PERIOD

A Cross sectional study was chosen and data was collected from women in the age 18

years to 45 years. Data was collected at a stretch during month of July to August,

2011.

3.6 SAMPLE DESIGN :

With an estimated population of 8.5 million in 20117 Bangalore is the fourth most

populous city in India and the 28th most populous city in the world.

As the study pertains to women consumers in the age group of 18 to 45 years, precise

data about women population in the age group of 18 to 45 years was not available.

Sample size was arrived on the following basis :

Sample Size Formulae found in most statistics textbooks, especially statistics dealing

with probability.

Sample Size – Infinite Population ( where the population is greater than 50000)

Z2 x (p) x (1-p)

SS =

C2

SS = Sample Size

Z = Z value ( e.g 1.96 for a 95 % confidence level )

P = Percentage of population picking a choice, expressed as decimal

C= Confidence interval, expressed as decimal ( e.g., .04 = +/-4 percentage points )

7 "Urban Agglomerations/Cities having population 1 lakh and above". Census India. The

Registrar General & Census Commissioner, India. Retrieved 17 October 2011

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 12: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

81

A Z-value ( cumulative Normal Probability Table) represent the probability that a

sample will fall within a certain distribution.

@ 95% confidence level and 5% confidence interval

= (1.96) 2 x (p) x (1-p)

C2

= (1.96) 2 x .5 x (1- .5)

.05 x .05

= 3.8416 x .5 x .5

0.0025

= 384.16

As per sample formula its 384.16

Sloven’s formula was used for calculating sample size to determine the ideal sample

size for a population, as Slovin's formula is used when nothing about the behavior of a

population is known at all.

N

n =

( 1 + (N*e^2))

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 13: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

82

Where:

n = number of samples

N = total population

e = margin of error

If a sample is taken from a population, a formula must be used to take into account

confidence levels and margins of error. When taking statistical samples, sometimes a

lot is known about a population, sometimes a little and sometimes nothing at all.

Population (18-40) Person/Male/Female//Total/Rural/Urban) in Bangalore District (Karnataka)

District Total Rural Urban

Persons Males Females Persons Males Females Persons Males Females

Bangalore

All ages 6537124 3426599 3110525 777137 406201 370936 5759987 3020398 2739589

18-40 3085963 1628987 1456976 351464 185516 165948 2734499 1443471 1291028

Karnataka

All ages 52850562 26898918 25951644 34889033 17648958 17240075 17961529 9249960 8711569

18-40 21436256 10835690 10600566 13590146 6807195 6782951 7846110 4028495 3817615

Source : Datanet India Pvt. Ltd.

As per above source women population in Bangalore is : 1291028

So its

N

n =

( 1 + (N*e^2))

Where:

n = number of samples

N = total population = 1291028

e = margin of error – lets decide as 5% i.e., .05

1291028

=

1+ 1291028 x (.05) 2

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 14: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

83

1291028

=

1+ 1291028 x .0025

1291028

=

1+ 3227.57

1291028

=

3228.57

= 399.876

ie., 400

To achieve better accuracy a sample of higher value 400 was decided.

Sample size :

The sample size is decided as 400.

The sample was covered in and around shopping malls, banks, corporate areas and

commercial zones, made the sample more relevant to the objectives. The survey was

conducted through personal interviews over a period of 40 days.

Sample Method : Multi – Stage

Stage 1 – Stratified Random sampling : Gender based – Women population in

Bangalore

Stage 2 – Judgement sampling: Women in the age group of 18-45 years [ Source :

Datanet and General formula ]

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 15: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

84

Collect samples using Judgment sampling i.e., women in the age group 18-45 who

have purchased both branded and unbranded jewellery are randomly selected from

different zones of Bangalore and asked to distribute that questionnaires to people

whom they know.

Stage 3 is Snowball sampling [distributing questionnaires to people whom they knew

].

525 questionnaires were collected and further incomplete questionnaires were

eliminated and arrived at 500 samples. But the sample size required to represent the

universe is 400 so selected only 400.

To avoid biasness of selection, modern MS-excel tool rand( ) was used which

generates random numbers, by sorting all 500 in ascending order and select top 400.

Remaining 100 questionnaires were used for pilot study.

Area :

The study is conducted in Bangalore city.

Respondents :

Since the study focuses on perceptions of women in Bangalore city Women within the

age group of 18 to 45 years were selected as respondents.

3.7 TOOLS USED FOR DATA ANALYSIS

Descriptive and Analytical Techniques:

Descriptive analysis was made through percentage, mean, standard deviation,

Graphs and Tables.

The following were the techniques used for analysis

An elaborate spreadsheet was constructed for data entry. Data was coded

and entered for analyses.

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

Page 16: CHAPTER 3 RESEARCH METHODOLOGY - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33645/13/13_chapter3.pdf · dimensions of branded gold jewellery and its impact on buying decisions.

85

ANOVA was used to analyse the variances across various value

dimensions across demographic factors.

Reliability Test

Cronbach’s alpha value was 0.865. Going by the thumb rule, alpha value

of 0.8 ≤ α < 0.9 translates into ‘Good’ internal consistency.

Factor Analysis was done Section C part of questionnaire with 13 factors

Correlation was done to know the relation between various value

dimensions and identified attributes of Branded gold Jewellery Decision

Making

Regression Analysis was done to understand the impact of social status,

quality oriented value (Independent Variables) on branded gold jewellery

decision making ( Dependent Variables).

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.