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: Boyers 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 peoples 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 buyers 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:-



Ones needs and motives: Perceivers needs and motives effect his perception. A
need is a feeling of tension when one thinks he is missing something.

Ones beliefs: An individuals beliefs have got a deep effect on ones perception. A
fact is conceived not on what it is but what a person believes it to be.

Ones past experience: Ones past experience good or bad, effects the ones
perception.

Ones 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.

Ones Self-concept: In fact ones self concept plays an important role in perceptual
selectivity.
Situation: The situation in which an individual sees the objects deeply effects ones
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 ones 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 its 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, products 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 brands 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.