INTRODUCTION

The colored gemstone market consists of any gemstone excluding Diamonds. The market is broken down into two main categories; precious and semi-precious. Precious stones consist of Rubies, Emeralds, Sapphires and natural Pearls. All other stones are considered to be semi-precious. For example Amethyst, Citrine, and Tanzanite are semi-precious stones. The reason for this classification scheme was that precious stones had higher taxes and tariffs when importing and exporting to different countries, in comparison to semi-precious stones.

The major difference between precious and semi-precious stones is the durability and hardness of the gemstone. Hardness is measured by the Mohs Scale of Hardness. This scale ranges from one that is Talc to a ten that is a Diamond. Precious stones range from eight to nine on the Mohs scale of hardness. Semi-precious stones fall below an eight on the Mohs scale. Precious stones are more durable than semi-precious stones. The reason is that it is much harder to scratch or damage a precious stone than a semi-precious stone.

Consumer Behavior

Consumer Behavior is influenced by cultural, social, personal and psychological characteristics. Psychological characteristics include Motivation, perception, learning, beliefs and attitudes also influence buyer behavior

Motivation: Boyer’s needs are normally biogenic and psychogenic.

When they are aroused to a sufficient level of intensity they become

motives, urging the buyer to seek satisfaction. Abraham Maslow

explained the driving force of people’s needs as consisting of a need

hierarchy. This included physiological needs, safety needs, social needs,

esteem needs and self-actualization needs.

Perception: Once motivated, how the motivated buyer acts is influenced

by his or her perception of the situation. That is, how the buyer receives,

selects, organized and interprets information. Buyers can emerge with

different perception of the same stimulus object because of three

perceptual processes – selective exposure, selective distortion and

selective retention.

Learning: Buyers learn through their action. Learning involves changes

in the buyer’s behavior as a result of his experiences. The buyers

learning is produced through his interplay of drives, stimuli, responses

and reinforcement.

Beliefs and attitudes: People beliefs and attitudes also influence the

buyer behavior. Beliefs may be found on knowledge, opinion. Attitudes

reveal the judgments, feeling and tendencies of the buyer towards an

objects or an idea. Marketers should try to fit their product offerings into

the buyers existing attitudes rather than trying to change attitudes, which

is a difficult task.

Consumer Perception:-

“Perception includes all those process by which an individual receives information about his environment – seeing, hearing, tasting, feeling and smelling”.

-JOSEPH REITZ.

Customer perception is defined as the way that customers usually view or feel about certain services and products. It can also be related to customer satisfaction which is the expectation of the customer towards the products.

Characteristics of the Perceiver:-

One’s needs and motives: Perceiver’s needs and motives effect his perception. A

need is a feeling of tension when one thinks he is missing something.

One’s beliefs: An individual’s beliefs have got a deep effect on one’s perception. A

fact is conceived not on what it is but what a person believes it to be.

One’s past experience: One’s past experience good or bad, effects the one’s

perception.

One’s expectations: It is the expectations which effect the perception of a person. In

an organization technical, non-technical, financial and non-financial people have got

different expectations and perception.

Current psychological state: An individual psychological and emotional and mental

setup may influence how he perceives the things.

One’s Self-concept: In fact one’s self concept plays an important role in perceptual

selectivity.

Situation: The situation in which an individual sees the objects deeply effects one’s

perception.

Factors affecting Perception while buying precious and semi-precious stones:-

a. Size: Size takes that larger the object, the more likely it will be

perceived. Bigger stones get more attention than smaller ones.

b. Intensity: Intensity, normally attracts to increase selective perception.

Strong and high intensity likes leads to high perception while doing

“neon signs advertisements”.

c. Repetition: Generally repeated external stimulus attracts more attention

than a single time.

d. Status: It is seen that one’s perception is also influenced by the status of

perceiver.

e. Contrast: The contrast principle states that external stimuli which stand

out against the background will attract more attention.

f. Need and desire: Prof. Maslow has given needs hierarchy what effects

individual perception like basic need, safety and security needs, love and

affection needs, ego and esteem needs and finally self-fulfillment needs

Consumer Buying Process

Step 1. NEED RECOGNITION

Need recognition or need identification is the first and foremost step where consumer identifies the need of certain product where the need of customer arouses for the product before purchasing the precious stones consumer identifies what and why they need to purchase the product.

Step 2. INFORMATION SEARCH

After the need is identified, consumer goes for the information search that is consumer tries to collect information about the product where he is going to get the product, what will be the price of the product, where he can get the best quality precious/semi-precious stones. Quality and price is the major attribute which effect the consumer purchasing power.

Nicosia Model: this model establish the link between the consumer and the firm. Advertising message of the firm influence the predisposition of the consumer. The consumer develops the attitude for the product search for the information.

Step 3. EVALUATION OF ALTERNATIVE

Once the information collected, the consumer will be able to evaluate the different alternatives

that offer to him, evaluate the most suitable to his needs and choose the one he think it’s best for

him.

In order to do so, he will evaluate their attributes on two aspects. The objective characteristics

(such as the features and functionality of the product) but also subjective (perception

and perceived value of the brand by the consumer or its reputation).

Each consumer does not attribute the same importance to each attribute for his decision and his

Consumer Buying Decision Process. And it varies from one shopper to another. Mr. Smith may

prefer a product for the reputation of the brand X rather than a little more powerful but less

known product. While Mrs. Johnson has a very bad perception of that same brand.

The consumer will then use the information previously collected and his perception or image of a

brand to establish a set of evaluation criteria, desirable or wanted features, classify the different

products available and evaluate which alternative has the most chance to satisfy him.

Step 4. PURCHASE DECISION

Now that the consumer has evaluated the different solutions and products available for respond

to his need, he will be able to choose the product or brand that seems most appropriate to his

needs. Then proceed to the actual purchase itself.

His decision will depend on the information and the selection made in the previous step based on

the perceived value, product’s features and capabilities that are important to him.

But his Consumer Buying Decision Process and his decision process may also depend or be

affected by such things as the quality of his shopping experience or of the store (or online

shopping website), the availability of a promotion, a return policy or good terms and conditions

for the sale.

Step 5. POST PURCHASE BEHAVIOR

Once the product is purchased and used, the consumer will evaluate the adequacy with his

original needs (those who caused the buying behavior). And whether he has made the right

choice in buying this product or not. He will feel either a sense of satisfaction for the product

(and the choice). Or, on the contrary, a disappointment if the product has fallen far short of

expectations.

An opinion that will influence his future decisions and buying behavior. If the product has

brought satisfaction to the consumer, he will then minimize stages of information search and

alternative evaluation for his next purchases in order to buy the same brand. Which will produce

customer loyalty.

On the other hand, if the experience with the product was average or disappointing, the consumer

is going to repeat the 5 stages of the Consumer Buying Decision Process during his next

purchase but by excluding the brand from his “evoked set”.

Example of Consumer Buying Decision Process

Stage 1 –Need Recognition: Seth Chand is a jeweler who has started his business for the making of designer jewelries. He has to make his jewelries look attractive so that his business can survive in the long term. Here the need of Seth Chand arouses for the purchase of precious and semi-precious stones. After the need is recognized he goes to the next step.

Stage 2 –Information Search: After identifying his need for precious and semi-precious stones he goes searching for information about products like diamond, ruby, jade, sapphire and tries to figure out at which market he will get it at effective price and quality.

Stage 3-Evaluation of Alternative: If Seth Chand is evaluating the attributes he finds necessary while purchasing precious/ semi-precious stones he identifies three attributes brand, price and value. During the evaluation, he will place different levels of importance with each attribute based off of what is most important to him. He will “evaluate” each brand and form beliefs on how each brand rates on each attribute.

Stage 4-Purchase Decision: Seth Chand after evaluating the precious/ semi-precious stones he chooses the precious/ semi-precious stones with the best attributes and finally make a purchase which is cost effective and with quality assurance which will satisfy his future need.

Stage 5-Post Purchase Behavior: After purchasing the precious/ semi-precious stones, Seth Chand evaluates his purchase whether it is effective or not and does it meet his requirement. He will either feel satisfied with his choice or feel remorse for it.

CONCLUSION

The report was supposed to analyse how a consumer perceives a product and the process of decision making based on analysis and references. By improving their knowledge of the Consumer Buying Decision Process, brands can improve their marketing strategy to effectively respond and be present with their customers at each stage of their buying behavior. And thus raise and create a need, strengthen their relationship with their customers and grow their sales.

During the “alternative evaluation” stage of the Consumer Buying Decision Process, consumers

look for solid, reliable and tangible information that will allow them to make their choice.

Especially for purchasing any products with high level of involvement.

The brand’s interest should be to provide concrete information and proof of the product features,

its added value compared to its competitors and how it will respond to their need in order to

provide consumers with the information they need and positive influence in their decision

making process.