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, meralds, !apphires and natural Pearls. "ll other
stones are considered to be semi-precious. #or example "methyst, $itrine, and
Tan%anite 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 ma&or difference between precious and semi-precious stones is the durability and
hardness of the gemstone. 'ardness is measured by the (ohs !cale of 'ardness. This
scale ranges from one that is Talc to a ten that is a Diamond. Precious stones range
from eight to nine on the (ohs scale of hardness. !emi-precious stones fall below an
eight on the (ohs 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
$onsumer )eha*ior is influenced by cultural, social, personal and psychological
characteristics. Psychological characteristics include (oti*ation, perception, learning,
beliefs and attitudes also influence buyer beha*ior
Motivation: )oyer+s needs are normally biogenic and psychogenic.
,hen they are aroused to a sufficient le*el of intensity they become
moti*es, urging the buyer to seek satisfaction. "braham (aslow
explained the dri*ing force of people+s needs as consisting of a need
hierarchy. This included physiological needs, safety needs, social needs,
esteem needs and self-actuali%ation needs.
Perception: -nce moti*ated, how the moti*ated buyer acts is influenced
by his or her perception of the situation. That is, how the buyer recei*es,
selects, organi%ed and interprets information. )uyers can emerge with
different perception of the same stimulus ob&ect because of three
perceptual processes . selecti*e exposure, selecti*e distortion and
selecti*e retention.
Learning: )uyers learn through their action. /earning in*ol*es changes
in the buyer+s beha*ior as a result of his experiences. The buyers
learning is produced through his interplay of dri*es, stimuli, responses
and reinforcement.
Beliefs and attitudes: People beliefs and attitudes also influence the
buyer beha*ior. )eliefs may be found on knowledge, opinion. "ttitudes
re*eal the &udgments, feeling and tendencies of the buyer towards an
ob&ects or an idea. (arketers 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:-
0Perception includes all those process by which an indi*idual recei*es information
about his en*ironment . seeing, hearing, tasting, feeling and smelling1.
-2-!P' R3T4.
$ustomer perception is defined as the way that customers usually *iew or feel about
certain ser*ices and products. 3t can also be related to customer satisfaction which is
the expectation of the customer towards the products.
Characteristics of the Perceiver:-
Ones needs and motives: Percei*er+s needs and moti*es effect his perception. "
need is a feeling of tension when one thinks he is missing something.
Ones beliefs: "n indi*idual+s beliefs ha*e got a deep effect on one+s perception. "
fact is concei*ed not on what it is but what a person belie*es it to be.
Ones past experience: -ne+s past experience good or bad, effects the one+s
perception.
Ones expectations: 3t is the expectations which effect the perception of a person. 3n
an organi%ation technical, non-technical, financial and non-financial people ha*e got
different expectations and perception.
Current psychological state: "n indi*idual psychological and emotional and mental
setup may influence how he percei*es the things.
Ones Selfconcept: 3n fact one+s self concept plays an important role in perceptual
selecti*ity.
Situation: The situation in which an indi*idual sees the ob&ects deeply effects one+s
perception.
Factors afecting Perception while
buying precious and semi-precious
stones:-
a. Si!e: !i%e takes that larger the ob&ect, the more likely it will be
percei*ed. )igger stones get more attention than smaller ones.
b. "ntensity: 3ntensity, normally attracts to increase selecti*e perception.
!trong and high intensity likes leads to high perception while doing
0neon signs ad*ertisements1.
c. #epetition: 5enerally repeated external stimulus attracts more attention
than a single time.
d. Status: 3t is seen that one+s perception is also influenced by the status of
percei*er.
e. Contrast: The contrast principle states that external stimuli which stand
out against the background will attract more attention.
f. $eed and desire: Prof. (aslow has gi*en needs hierarchy what effects
indi*idual perception like basic need, safety and security needs, lo*e and
affection needs, ego and esteem needs and finally self-fulfillment needs
Consumer Buying Process
Step %& $''( #'CO)$"*"O$
6eed 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 +& "$,O#M-*"O$ S'-#C.
"fter 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 7uality precious8semi-precious stones. 9uality and price
is the ma&or attribute which effect the consumer purchasing power.
6icosia (odel: this model establish the link between the consumer and the firm. "d*ertising
message of the firm influence the predisposition of the consumer. The consumer de*elops the
attitude for the product search for the information.
Step /& '0-L1-*"O$ O, -L*'#$-*"0'
-nce the information collected, the consumer will be able to e*aluate the different alternati*es
that offer to him, e*aluate the most suitable to his needs and choose the one he think it+s best for
him.
3n order to do so, he will e*aluate their attributes on two aspects. The ob&ecti*e characteristics
;such as the features and functionality of the product< but also sub&ecti*e ;perception
and percei*ed *alue of the brand by the consumer or its reputation<.
ach consumer does not attribute the same importance to each attribute for his decision and his
$onsumer )uying Decision Process. "nd it *aries from one shopper to another. (r. !mith may
prefer a product for the reputation of the brand = rather than a little more powerful but less
known product. ,hile (rs. 2ohnson has a *ery bad perception of that same brand.
The consumer will then use the information pre*iously collected and his perception or image of a
brand to establish a set of e*aluation criteria, desirable or wanted features, classify the different
products a*ailable and e*aluate which alternati*e has the most chance to satisfy him.
Step 2& P1#C.-S' ('C"S"O$
6ow that the consumer has e*aluated the different solutions and products a*ailable 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.
'is decision will depend on the information and the selection made in the pre*ious step based on
the percei*ed *alue, product+s features and capabilities that are important to him.
)ut his $onsumer )uying Decision Process and his decision process may also depend or be
affected by such things as the 7uality of his shopping experience or of the store ;or online
shopping website<, the a*ailability of a promotion, a return policy or good terms and conditions
for the sale.
Step 3& POS* P1#C.-S' B'.-0"O#
-nce the product is purchased and used, the consumer will e*aluate the ade7uacy with his
original needs ;those who caused the buying beha*ior<. "nd whether he has made the right
choice in buying this product or not. 'e will feel either a sense of satisfaction for the product
;and the choice<. -r, on the contrary, a disappointment if the product has fallen far short of
expectations.
"n opinion that will influence his future decisions and buying beha*ior. 3f the product has
brought satisfaction to the consumer, he will then minimi%e stages of information search and
alternati*e e*aluation for his next purchases in order to buy the same brand. ,hich will produce
customer loyalty.
-n the other hand, if the experience with the product was a*erage or disappointing, the consumer
is going to repeat the > stages of the $onsumer )uying Decision Process during his next
purchase but by excluding the brand from his 0e*oked set1.
Example of Consumer Buying ecision
Process
Stage % 4$eed #ecognition: !eth $hand is a &eweler who has started his business for the
making of designer &ewelries. 'e has to make his &ewelries look attracti*e so that his
business can sur*i*e in the long term. 'ere the need of !eth $hand arouses for the
purchase of precious and semi-precious stones. "fter the need is recogni%ed he goes to
the next step.
Stage + 4"nformation Search: "fter identifying his need for precious and semi-
precious stones he goes searching for information about products like diamond, ruby,
&ade, sapphire and tries to figure out at which market he will get it at effecti*e price and
7uality.
Stage /'valuation of -lternative: 3f !eth $hand is e*aluating the attributes he finds
necessary while purchasing precious8 semi-precious stones he identifies three attributes
brand, price and *alue. During the e*aluation, he will place different le*els of importance
with each attribute based off of what is most important to him. 'e will 0e*aluate1 each
brand and form beliefs on how each brand rates on each attribute.
Stage 2Purchase (ecision: !eth $hand after e*aluating the precious8 semi-precious
stones he chooses the precious8 semi-precious stones with the best attributes and finally
make a purchase which is cost effecti*e and with 7uality assurance which will satisfy his
future need.
Stage 3Post Purchase Behavior: "fter purchasing the precious8 semi-precious stones,
!eth $hand e*aluates his purchase whether it is effecti*e or not and does it meet his
re7uirement. 'e will either feel satisfied with his choice or feel remorse for it.
C!"C#$%&!"
The report was supposed to analyse how a consumer percei*es a product and the process of
decision making based on analysis and references. )y impro*ing their knowledge of the
$onsumer )uying Decision Process, brands can impro*e their marketing strategy to effecti*ely
respond and be present with their customers at each stage of their buying beha*ior. "nd thus
raise and create a need, strengthen their relationship with their customers and grow their sales.
During the 0alternati*e e*aluation1 stage of the $onsumer )uying Decision Process, consumers
look for solid, reliable and tangible information that will allow them to make their choice.
specially for purchasing any products with high le*el of in*ol*ement.
The brand+s interest should be to pro*ide concrete information and proof of the product features,
its added *alue compared to its competitors and how it will respond to their need in order to
pro*ide consumers with the information they need and positi*e influence in their decision
making process.