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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.
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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.

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  • 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

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    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

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    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.

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    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 buyers mental rules or heuristics for assessing purchase

    alternatives.

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

    attitude toward them.

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    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 customers 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.,

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    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.

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    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.

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    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.

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    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.

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    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

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    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

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    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

    Slovens 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))

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    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

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    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 ]

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    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.

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    ANOVA was used to analyse the variances across various value

    dimensions across demographic factors.

    Reliability Test

    Cronbachs alpha value was 0.865. Going by the thumb rule, alpha value

    of 0.8 < 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).

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