CHAPTER – II

REVIEW OF LITERATURE

The main purpose of review of literature is not only to identify the research
gap and also to understand various approaches adopted and followed in various
research works in Indian as well as other works. Especially for this research work
the researcher has done a comprehensive literature which helped to develop the
conceptual framework and ideas in theoretical as well as empirical aspects. The
present study needs different dimension of literature review, because the study is
related to identification of numerical relations in respect of gold price and the
association between the opinions expressed by the respondents and their ornamental
gold purchasing pattern. The researcher concentrated on more reviews related to the
topic on different dimensions namely 1. Gold demand and Gold price movements,
2. Fascinating facts about investing in ornamental gold and 3. Ornamental gold
buyers‟ behaviour and attitudes are presented below.

II.I. Gold Demand and Gold Price Movements

Reddy Y.V (1996)1 said in his report that, in India, the share of gold import
in total import bill rose from 8.1 per cent in 2001-02 to 9.6 per cent in 2010-11. The
yearly growth rate of gold imports during the period of 2008-09, 2009-10, and
2010-11 was 23 per cent, 38.1 per cent and 18.3 per cent respectively. The overall
average growth rate during the periods was 26.8 percent. Such a high levels of gold
consumption indicate India‟s obsession with gold.

Business Economics (2006)2, reported that gold price in 1970 was as low as
Rs 208 per 10 grams and it even further declined to Rs 195 in just one year. The
price in 70‟s fluctuated between Rs 200 to Rs 700 but in the next decade it reached
four digit price levels. In 1981, the 10 grams gold price was Rs 1,740 and again it
declined to Rs. 1,710 in 1982. After these periods, the gold price steady increased to
Rs. 5,140 in the year 1996. In the year 1997, price again reduced to Rs. 4,590,
followed by Rs. 4,350 and Rs. 4,485 in 1998 and 1999 respectively. In 2001, gold
price again rosé to Rs. 5,800, but next year it dropped to Rs. 5,090. During 2004,
the ten gram gold price reached Rs. 6,350, but the price increased by three times in

18
2008. The rapid growth of price trend shows that gold is still maintaining its
demand among the people.

The Hindu (2009)3 reported that the Indian total demand for gold, the
world‟s largest market for the metal about 84 per cent in tonnage terms in the fourth
quarter of 2008, followed by 107 per cent growth in gold jewels demand.
According to the World Gold Council (WGC), gold demand trends in
internationally, total demand rose to 26 per cent at 1,036 tonnes or $ 26.6 billion in
value terms. When people think of an alternative metal to wear then only the
demand for gold will reduce is an observation of researcher.

According to the Associated Chambers of Commerce and Industry of India

(2011)4 in the year 2010-11, India‟s gold imports were not only higher than the
twelve states‟ GSDP and also higher than the budget estimated expenditure for
development of urban, housing and family welfare. Hence for the purpose of
sustainable development of financial sector, urgently we need to encourage the
substitution of gold purchases. Gold is the best financial instrument to protect
against political and economic threats for a developing country like India. But in
India domestic production of gold is very less and rising demand for gold is
managed by import from other countries. Gold does not support the productive
capacity of the economy, because it is either stored in safety lockers or hang in the
neck of women as converted jewels. In both the cases money is stuffed into non
productive assets.

Vandana (2013)5 reported that, India imported 162 tonnes of gold in May
2013, more than twice the monthly import the previous year. Coins, however,
account for less than 5 per cent of the gold Indians buy-the rest is bought as
jewellery. The current account deficit, the difference between exports and imports,
was 6.7 per cent in October-December 2013 owing mainly to the outgo on oil and
gold imports and the floundering exports. Economists say that the country should
start worrying if the Current Account Deficit goes above 2.5 per cent. When gold
prices fell recently, buyers bought more gold, expecting a rebound. The gold buyer
in tier II and tier III cities does not really worry about the taxes. Fund managers and
bankers say if banks stop selling coins, buyers will move to gold exchange-traded

19
funds. The continued depreciation in the value of the rupee might see investors
flocking to gold ETFs. Also, experts warn that the duty hike has encouraged the
smuggling of gold. The demand for gold will continue as long as the conservative
sections of the middle class see it as a safer saving option than bank deposits or
even real estate. While gold has given an annual return of 17.64 per cent in five
years, a debt fund in the same period has given only 8.63 per cent and the Nifty a
mere 5.05 per cent. Retail savers always look out for an avenue to grow their
money, but, that has not been happening for the past few years because of high
inflation and lower growth. The government should come up with some financial
instrument to solve this problem.

6 th
The Hindu (2014) reported that 22 karat one gram gold price on 7
November 2014 was Rs.2,424 and eight gram gold price was Rs.19,392. The next
day on 8th November 2014, one gram gold price increased by Rs.44 and eight gram
increased to Rs.19,744. This is tremendous change in the ornamental gold price
during 2014. But before these days, the eight gram ornamental gold was sold at Rs.
21,000 and above. This price fall was due to increasing demand for dollar.

II.II. Fascinating facts about investing in Gold Ornaments:

The Hindu (2007)7 stated that the professional investors all over the world
are again reinforcing their faith in the yellow metal. Studies in 2002 show that since
1999, slowly but surely gold has edged back into being the preferred investment
with the money savvy across the world, just goes to show that tradition is rarely
wrong. With steadily falling interest rates and unstable share markets, gold is the
best. Not only does it increase in value, it is portable, and you also get an added
advantage of looking good. Gold has international credibility and its value does not
fluctuate like that of foreign currency. As per the minimum Reserve System the
Reserve Bank of India has to have gold coins and bullions worth Rs. 115 carriers
and foreign exchange reserves worth Rs. 85 crores with it to issue currency notes of
every denomination except one rupee note. Even in case of foreign exchange
reserve gold is preferred to others. This system has been in existence since 1957.
Till 1956 the proportional Reserve System was prevalent where gold, bullion for
foreign exchange reserves worth 40% of the total assets had to be maintained to

20
issue notes. Such is the economic value of gold. With most Non-banks financial
companies were closed in India, hence investment in gold is the best assets
appreciations. Researcher pointed out over the above article that the Indian middle
class not willing to invest in securities, because they are risk averse, so investment
in gold is safe alternative to them.

The Hindu (2009)8 intimated that, during 2008, among the various
investment avenues, gold gives a maximum of 32 per cent returns more than other
investment avenues . In annualized return aspects, gold gives 19.54 per cent return
in the last five years ending 2008. At the same time the gold has appreciated by
10.1 per cent and annualized return of 8.1 per cent in 2009. Because of the worst
condition of stock market and investors‟ perception against investment aspects,
dollar demand for gold increased to $ 102 billion, a 29 per cent increase. This
condition increased the gold demand to 3,569 tonnes. But the current market
conditions show that people are ready to buy more ornamental gold, because they
feel that gold is always maintaining its intrinsic value and it plays a vital role in
providing stability to professional investors and household buyers around the world.
Gold is not only the best investment for best return and also protects investors‟
monetary prospects.

The Hindu (2011)9 gave the message that gold is the safest investment for
the masses, and people here believe that buying gold on this day will usher
prosperity into their lives. Gold investors‟ interest would never wane, and would in
fact be redefined by the higher returns they get on their investment. Talking about
the trends in the gold market for the current year, it says the market is bullish on
gold and will continue to remain so. For instance, in 2010 (during Akshaya Tritiya)
gold was sold at $1,236 an ounce at the international level and in 2011 it jumped by
25 per cent to $1,544 an ounce. In current times, this is a fabulous return on your
investment. People should allocate at least 15-20 per cent of their portfolio to
buying of gold. For people in smaller cities and towns with a significant
dependence on agriculture, investing in gold is the simplest way to possess liquidity
in funds. India is one of the key markets for gold in the world and a record import
of 963 tonnes was made in 2010. This is a clear indicator of the fact that gold

21
buying has not seen a dip in the country, and has in fact cut across the various
income brackets, as per the report of World Gold Council. Another important
indicator is the reeling of gold purchases, timed to coincide with different festivals
in the country, with Akshaya Tritiya is the most favoured. Endorsing this trend, Mr.
Shivram feels that it is always better to buy gold in small tranches at different
points in time, so that prices in the end averaged out. For the more matured
investor, the option of Exchange Traded Funds (ETF) is fast catching up. This
scheme is still in its nascent stage in India, but several big players like Reliance and
Kotak are offering ETFs. Like mutual funds they allow the accumulation of gold,
without an actual purchase. For this Akshaya Tritiya, World Gold Council has
prepared a print campaign in the southern region and a television campaign for the
northern and western regions. Besides, it has retail activities lined up, for which it
has partnered several trade entities from across the region. Even when the gold
price is in the upper trend the demand for gold never changes, during the period. It
intimates us that people have strong belief in gold as a good investment.

Senthil Raghavan A, Nisar Ahmed N (2011)10 stated that gold is the first
known metal which for its beauty, scarcity, pliability, and creepy conflict to
corrosion and decay. In India, gold has several implications like wearing of
ornamental gold for many purposes. The main purpose of wearing ornamental gold
is a form of decoration and also a status symbol. The value of gold has gone beyond
all national, political, and cultural limits, making it the ideal nature of Investment.
The Indian families are buying more gold than in any other country, because they
have very much love and a strong affection and belief on gold so that they intent to
save more ornamental gold. The author also brings out how gold is bought for
Savings Avenue by the Indian families and the demand of Indian families for
ornamental jewels and their responses to changes in the gold price.

Himanshu Pandya (2013)11 informed that the gold has always been a good
investment option and will continue to be so. But if you are looking for a repeat of
the superlative performance of the recent past, you may have to tone down your
expectations. There is every possibility that the gold delivers lackluster
performance in the near future. It would be advisable to increase /maintain exposure

22
in line with your strategic asset allocation derived from your financial plan. But if
you are looking for a medium-term tactical investment, equities could be a better
bet in the prevailing circumstances. With macro- economic variables turning
benign, this may just be the right time to enter the equity market. In India, buying
gold has traditionally been an integral part of social and religious customs. Gold is
less correlated to other assets and, hence, it carries importance as a diversification
tool. We have been recommending investors to allocate a certain percentage of
overall portfolios to gold in the form of an ETF or gold funds. In recent years, gold
has given very good returns since it has been on the rise on account of global
uncertainties, high inflation and rupee depreciation. Investor, seeing the returns has
shown a lot of interest in gold funds and Exchange Trade Funds. The recent
correction makes investors wary of the risks involved in investing in this asset class
and gives them an opportunity to make allocation from an overall perspective.

II.III. Ornament Gold Buyers‟ Behaviour and Attitude

Itamar Simonson and Russell S. Winer (1992)12 identified consumers‟

purchases which are systematically influenced by the quantity they purchase. For
this purpose the researchers hypothesized those consumers‟ purchase non routine
items when they purchased routine item in their shopping occasion practices. For
this purpose the author has attempted laboratory experiments also.

Mehta, Belk (1999)13 reported in their study that gold played a significant
position in Indian culture. Because on any good occasion Indian‟s want to present
gold in any form even not specifically mentioned as an artifact, is also a valued
ownership. Price, Linda L., Arnould, Eric J, Curasi, Carolyn Folkman (2000)14 said
that gold is matchless, however, because it is not necessarily an appreciated
ownership. Gold is purchased by parents, with the intention that it will be passed on
to their children at future date.

15
Luna, David and Gupta, Susan Forquer (2001) , stated that there is
relationship between gold, culture and the behaviour of the buyers. The purchasing
behaviour of the buyers suggested that gold buying is a custom. The social setup
only insists people to consume gold, because cultural values are only durable. The

23
role of gold price never affects the buying capacity or size of gold, because gold
wearing is custom of Indians.

Kolter et al., (2005)16 explains that the consumers‟ purchasing decision is

based on comparison between various similar products with branded products.
Commonly consumers pay particular attention in respect of various attributes like
price, size, quantity and quality between similar products with branded products
before they judge to buy. The product selection may be affected when there are
changes in their attributes. The above findings are not only suitable for consumable
products, but also luxury products like gold and gold ornaments. This judgment has
come across by researchers through study.

Jewellery Consumer Opinion Council (2005)17 reported in their Survey that

consumers still love gold jewels. The survey found that, most of them liked 14 karat
yellow gold. 79.3 per cent respondents had unplanned purchasing behavior and only
12.4 per cent had planned purchasing behavior. Among the respondents 77.5 per
cent preferred necklaces followed by earrings 70.2 per cent, bracelets 62.5 per cent,
wedding bands 48.9 per cent and fashion rings by 44.8 per cent respondents. 69.3
per cent of the respondents purchased ornamental gold for their own use and 36.7
per cent for Christmas and 36.3 per cent for birthday. Regarding the question
related to preferable metal among the respondents, white gold was ranked first by
18.96 per cent respondents, followed by yellow gold 18.53 per cent, platinum 17.92
per cent, sterling silver 13.75 per cent, rose gold 13.17 per cent, titanium 11.32 per
cent and stainless steel 6.35 per cent. This interpretation shows that people have
even faith on yellow and white metal. And the survey also brings out that the sales
volume during the month of August 2005, when the gold price increased was 11 per
cent better and now 40.3 per cent worse. Whereas the sales condition during the
month of August 2004 fell 19.8 per cent when things were better and 28.1 per cent
when things were worse. At the same time the buyers said that in the month of
August 56 per cent purchased gold from retail stores, 20.8 per cent online, and 8.4
per cent trough TV shopping channels. The significant change happened from last
August, when 63.5 per cent was done in retail store, 13.3 per cent online and 6.6 per

24
cent TV shopping channels. This survey shows that every individual followed
his/her own perception to buy ornamental gold.

Yeong Bin Cho,Yoon Ho Cho and Soung Hie Kim (2005)18 stated in their
article that the identification of customers preferences are changeable one and it is
never constant over the time. Mostly customers follow any kind of information
which is available in the market area during the particular time or period for their
purchasing decisions. The particular information which is adopted by the customers
during the particular time need not be adopted in the same situation or period in
future. Because information required by the customers is not only determined by
any single factor and many factors are going to determine them. This study
proposed a new methodology for improving the standard of collaborative filtering
information that is used for customers‟ purchase sequences. This kind of modified
methodology is used in many departmental stores in Korea.

Dempster, Natalie (2006)19 stated that gold is the status symbol of India and
gold plays in rites continues the culture. Rites include not only consumer behaviour
and also the various occasion related opportunities to buy gold such as religious
festivals and marriages. These kinds of various occasions also tend or attach people
into cultural practices; otherwise Indians‟ attachment on gold is question mark. In
this article the author strongly said that the buying ability of the people not only
decided by monetary status of people but also by the cultural belief and practices.

Solomon et al (2006)20, searched about what kind of information has been

gathered by online and by other gold buyers before they planned to buy ornamental
gold. The information from the marketplace is gathered by physical buyers whereas
the online buyers follow different information is available in websites. Consumers‟
motivations can also change the consumer behaviour and attitude in regards to
choice or selection of ornamental gold. And finally the author concluded that
aspiration values of buying of ornamental gold are not only suitable for the
European market but also for Indian market.

Huma Tariq, Donelda S. McKechnie, Jim Grant, Janice Phillips (2007)21

stated in their article that every one out of seven ladies, bought ornamental gold on

25
the basis of the information. Quantity and occasion determined the volume of
ornamental gold buying and many respondents agreed that the reason for
continuously wearing ornamental gold even after marriage was only cultural and
they wanted to maintain their social status. And, the reason for purchasing new
ornamental gold was the appreciation in their investments. The authors brought out
the unbelievable findings that mothers and daughters have the habit to buy gold for
time passing rather than for investment purpose. The information about models,
designs and volume of gold was exchanged between female and female only and
not between other genders. The consumers differ from each other by age, income,
education, lifestyle, character, etc and all these influence their purchasing decisions
of ornamental gold.

22
Kapferer, (2008) said that brand is not only decided by the personality but
it also shows consumers‟ sense of stability and consistency. The author pointed out
that a brand is less flexible, because once the image of brand personality is shaped
in the minds of consumers; it is very difficult to alter. As per researcher‟s
observation, in Tamil Nadu the role of brand in determination of the purchasing
pattern of ornamental gold is very low.

Saravanan S (2010)23 found in his article that the present modern market is
very competitive and celebrity insists an individual consumer to make purchasing
decision. At present women play important roles not only in other all fields but also
play a major role in determining marketing condition particularly taking purchase
decisions. His study moulds the present study the extent to which women‟s role
plays on the purchase of luxury products like gold ornaments in Tamil Nadu.

Vijay Durga Prasad (2010)24 carried out his study to understand the
perception of customers‟ awareness levels and purchasing pattern of gold
ornaments after the Government of India introduced voluntary hall marking of gold
jewellery through the Bureau of Indian Standards in April 2000. Because the
performance in this regard was very slow and very few of the jewellery shops
accepted the necessary certification, most of them were having only partial stocks
of their jewels hallmarked. This article helps to understand the consumers‟

26
perception, awareness and their buying behaviour of gold ornaments after the
regulation in gold market taken up by the Government of india.

Prabhakar Rajkumar (2010)25 stated in his article that the most influencing
perception towards the purchase of gold is the long term capital appreciation. Most
of the gold buyers believe that gold is having an unassailable value accepted by all
at all times. The second and most influencing factor is an assurance of confidence
that gold gives to the possessor or investor. The next influencing factor is its
suitability for Indian skin, most of the gold buyers feel that the yellow metal makes
their appearance glowing and enhance their personalities. Natural portfolio
diversified is the next influencing factor. Here the gold buyer feels that gold is
riskless investment and at the same time gives more returns. Gold satisfies the
buyer in various dimensions and hence people like gold for different reasons.
Versatile quality of the gold is the next influencing factor. Store of value is the next
influencing factor, because gold always maintains its intrinsic value for a long time.
The next influencing factor is that gold is considered as the asset of last resort,
because the gold buyer feels that gold is the ultimate asset and it stands above all
other assets. Next important factor is that gold is auspicious metal, because in Tamil
Nadu, gold is considered as Goddess Lakshmi, and people give more importance to
gold on all auspicious days and occasions. Festivals and conventions are the next
influencing factors, because people in Tamil Nadu never think of any festival
without associating it with gold and it is being conventionally accepted by all.
Advertisements are the least influencing factors, because gold buyer feels that
advertisements are not great motivators to buy gold. The overall perception of the
respondents about gold purchases significantly differs with respect to the age
groups, gender and place of living of the respondents; because the age of the
respondent plays a major role to buy or prefer gold. Because, usually young and
middle aged group of people prefer gold more than the older age groups. At the
same time, male respondents have different opinion about the gold purchase of
female respondents, because in general female gender always likes gold more than
the male gender. Income and educational level of the respondents are not having
significant influence on perception of gold purchases. Income and education level
of the respondents are the main factors to determine the level of gold purchase. To

27
boost exports of gold jewellery from India, this could perhaps bring an end to the
exploitation of consumers by jewellers. A gold ornament seller is to be more
strategic than others to make the gold sale more effective. In order to attract the
middle income class and poor people to buy gold ornaments, the seller runs chits,
especially prize chits. Some sellers made even the chit still more attractive by
offering bonus and gifts. He can also offer lottery prizes on days of importance like
New Year's Day, Deepavali, etc. A few sellers offer discount, special package like
bags, gifts like purses, wallets, etc. Though these strategies on the part of gold seller
are not necessary to attract the buyer with the cultural urge for gold such efforts
give individual seller the competitive edge. In the process of the research study,
through the survey of people in four major districts of Tamil Nadu it is found that
investment in gold jewels shows that gold is to be considered a safe alternative and
saving of gold in any form is a means of security for the future. In rural Tamil
Nadu, the people never considered investment in life insurance and Mutual fund as
a best investment mode. Gold certainly has its own value for even with the soaring
gold prices, we still find out jewel shops floated by people, which easily explains
that still we feel that gold is the best investment.

Anu Singh Lather and Puja Khatri (2011)26 stated in their article that
according to the estimate of World Gold Council, in India, 60 per cent of the gold
was consumed by small towns and villages. The Indian over all jewellery market
value is Rs. 70,000 crore and rural and urban jewellery market worth is Rs. 42,000
crore and Rs. 28,000 crore respectively. Gold Plus is a new brand of ornamental
gold, introduced by Tanishq jewellery and according to their statement they have
obtained big market place when they understand the customer‟s expectations in the
aspects of purity, discounts, low prices, trust, good retail experience etc. It shows
that when the gap between the expectations of buyers and market offerings is
identifiable then survivable is not a big thing.

Huma Tariq, Donelda S. McKechnie, Jim Grant, Janice Phillips (2011)27, in

their study, try to find out the answers for three questions related to purchasing
attitude of ornamental gold namely 1) when, 2) why and 3) how Indian women buy.
The answer for when they buy is: Indian women buy gold at specific times or

28
events like festive, great occasions and when discount offered. Why is answered by
appreciation of investments value, self motivation, religious belief and increase of
traditional value. How is ratified through six dimensions expressed in terms of the
trend of gold price, preferences and faith on jewel shop and salespersons.

Henri Jokinen (2011)28 adopted two fold study methods; in the first method
there are sixteen qualitative researches interviewed with gold professionals in
Finland, England, Italy, and Australia. The second method approached was survey
method and used 407 Finnish respondents to understand the consumers‟ perceptions
and behavior of ornamental gold. The consumer behaviour on jewels is determined
by designs, price, and trust of ornamental gold. The study shows that 34 per cent of
respondents are willing to make extra efforts to get ethically designed jewels. 90 per
cent are really interested and concerned about ethical, social and environmental
issues in jewels.

Asha. K. Moideen, Rashid Khan, K.Sreeranganadhan (2012)29 examined in

their article the impact of marketing strategies on consumers purchasing behaviour
in the ornament gold market in India. The researchers adopted multistage random
sampling technique to collect 1,312 respondents from all over India. The
researchers used primary and secondary data sources and some objectives and
hypotheses were formulated through the review of the literature in this field. This
study revealed that the income of the respondents plays main role on the influence
of the marketing strategies of jewellery. The lower income group of the respondents
had a strong agreement related to the influence of the marketing strategies of
jewellery retailers and the higher income group had only low influence. This study
helps the researcher to understand how gold marketing strategies differ from other
marketing strategies and has included this concept in his study.

Balanaga Gurunathan and Muniraj (2012)30 investigated in their article that

the impact of customer awareness on behaviour and buying pattern of ornamental
gold in Tamil Nadu. The social status played a significant role in Tamil Nadu for
buying and investing in ornamental gold. The impact of awareness among the
respondents on investments in ornamental gold was evaluated in terms of their
preference to buy. The respondents‟ first preference was investment in yellow metal

29
(mean value is 4.60), followed by white metal (mean value is 2.30), diamond jewels
(mean value is 1.12) and Platinum jewels (mean value is 0.62).

Annadurai Pughazhendi and Sudharani Ravindran (2012)31 have

investigated in their article that the importance of celebrity effectively builds a
brand. The study focused to identify the impact of celebrity support on effective
construction of consumers‟ buying behaviour and their attitude. Finally the study
found that the celebrity endorser is very much associated with brand name and
these two important factors play an important role in determining purchasing
decision of buyers. Most of the respondents choice their product or brand through
their favorite celebrity endorsing their products or brands. Here the researcher
emphasized that the celebrity also determine the purchasing behavior of the
consumers.

Prasad and Ramakrishna (2012)32 attempted to associate the different store

features as perceived by the buyers with the motivations of various buyers in
purchasing and patronizing organized outlets. This article brings out the various
attributes influencing the purchasing pattern and behavior of an Indian consumer.
This kind of review not only promotes the researcher‟s research idea and also
identifies the real attitude of the consumer in India.

33
Kumar and Varadaraj (2013) brought out the buying behaviour of women
buyers‟ towards ornamental gold with special reference to Tirupur in Tamil Nadu,
India. The study, based on primary data which brought out the various factors
affecting buying behaviour of ornamental gold products, measures the awareness on
brand and buying attitude of the women buyers‟ in purchasing of ornamental gold
in different jewels retail stores in Tirupur. The authors found that the three fourth of
the female respondents agree that jewels retail stores gives brand awareness. 36.5
per cent of the female respondents, purchase ornamental gold once in three months.
67 female respondents agree that they frequently buy ornamental gold during the
festival seasons. 36.5 per cent of the female respondents spent Rs. 20,000 in a year
for purchasing ornamental gold and 46.5 per cent of the female respondents made
gift purchases of Rs.10,000. Maximum number of the respondents agreed that they
have pre determination towards purchase of any kind of ornamental gold before

30
they buy and always take their children or related persons when they buy
ornamental gold. Half of the respondents like ornamental gold. The branded
ornamental gold is preferred by majority of the respondents and they are interested
in jewel work of branded shop. 34.5 per cent respondents give importance to gold
purity in jewels at the time of purchase. 50 per cent of the respondents know brands
through their friends. Majority of the respondents believed that a brand choice
improves their personality. Majority respondents are expecting offers and discounts
at the time of purchase. In addition maximum respondents are expecting price
discount provided at the time of purchasing of ornamental gold and investment
schemes is available in gold purchase. Finally the researchers brought the
unbelievable findings that the maximum respondents take the final decision to
purchase the ornamental gold through their children.

Mary Honey O J (2013)34 tries to find out how the various incentives
introduced could encourage the people to invest in gold and also measure the
awareness level of investment in gold. In addition, the researcher gives attention to
uniqueness in consumer behavior towards selection and choosing of ornamental
gold. The finding revealed that the demand for gold by the buyers is because of
their strong belief that gold is best investment option, especially in Cochin and
Delhi. The study makes it clear that gold price is sensitive at low prices but it is
insensitive when price increases, especially in Kerala.

Balaji and Maheswari (2014)35 emphasized in their article that

modernization is the most important one according to organized retailers. Secondly,
the changing of buying preference of consumers in India towards ornamental gold
is appropriated to the growth of branded gold retailers. The study confirmed that the
conversion of family owned gold business, into professionally managed gold
business, is eye witness of changes that were made in buying behaviour and attitude
of ornamental gold buyers in India.

Srinivas Rao, Padma Charan Sahu, Sathyapriya and Deepa Ittimani Tholath
(2014)36 stated in their article that the chemical form of gold is marked Au which
comes from Latin word of gold aurum. It means shining dawn. This article focused
the customer's attitude and behaviour toward purchase of ornamental gold. In this

31
article the authors suggested through their study that the ornamental gold has not
only considered for maintaining the status of any individual or respect and also
considered as a liquid asset. Basically, Indians buy gold in any form very frequently
irrespective immaterial of any occasions like weddings and worshipping events.
The Indian concern for gold is not only symbol of richness and also associated with
religious and cultural significance. This is main reason for gold is inevitable place
in Indians‟ life. The article ends with statement that the customer's attitude and
behaviour on ornamental gold purchasing in Chennai City have played a significant
role.

Asha and Edmund Christopher (2014)37 examined the factors which

determine the behaviour of consumers towards branded and non branded jewels.
For this purpose the researcher identified various factors like increasing consumer‟s
false belief, decreasing investment compulsive purchases, fascinating retail
channels and competition from other expensive products. And the result showed
that consumers are rationally aware of the branded players and like to purchase
branded jewels in the near future and frequently visit to the jewels market.

II.IV. Research gap

Through a thorough investigation of review of literature, the researcher

identified the uniqueness of the study. Here, the researcher tries to specify research
gap and highlight the way in which the research study is different from the other
studies and they are narrated below.

There has been a number of valuable research works in gold and its impact
on Indian economics system. Many of the research works are related to the various
factors which are influencing the purchasing pattern of gold and related. A very few
research work measured gold price movements and its association with dollar and
other valuable commodity like crude oil etc. Most of the research work weather
based on quantitative or qualitative aspect and none of the work associated these
two aspects. This study is comprehensively evaluate the gold price trend and the
purchasing sequential pattern of ornamental gold buyers in different period of time
in the journey of gold price movements. Among the south India, Tamil Nadu is one

32
of the state which gives more important to sentimental and emotional values.
Hence, the following questions arise: How for these psychological values play
crucial role on purchasing decision of ornamental gold? In addition, how for gold
price fluctuation also enter into the purchasing size of ornamental gold?

Sequential pattern is a terminology which is used in technical subjects. But

here the researcher bring out the concept of sequential pattern in nontechnical
subjects and ratified the usage of idiom of sequential pattern in social subject with
in-depth analysis of review of literature.

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