How is the consumer’s behavior influenced by their perceived ethical, environmental and social factors in luxury jewellery industry in India?

Abstract In the early times in India, majority of the consumers believed in satisfying their basic needs only and save the rest for bad times. But with the emergence of modern India, there is a shift in the consumption patterns. Nowadays, the consumers believe in satisfying their psychological needs that give them pleasure and status. India is emerging to be one of the largest consumers of luxury good like gold across the globe. This research enabled us to learn that a consumer’s behavior is by and large affected by social, cultural and environmental factors. Apart from these, the psychological needs of an individual also drive humans to purchase luxury gold. The research talks about the motivation cues and new experiences that influence the consumers. The study uses a questionnaire distributed randomly amongst different people. Some of the respondents especially females were attendant of a jewellery show organized in the city. The research focused on the social, environmental and perceived ethical factors that can shape and frame consumer’s mind for the consumption of luxury gold. It also studied some aspects related to offered services (both post sales and during the sales) and buying-selling or trading channels of gold (Crane and Matten, 2007). As expected, the consumers responded and agreed that their consumption depends largely on the personal benefit factors and the cultural & traditional factors. They also confirmed to be influenced by the marketing and promotional cues of discounts, easy buy back offers, etc. The economic status of an individual and the price fluctuation in gold are also in direct and indirect relation, respectively, with the consumption of luxury commodity gold. Apart from all this, the study revealed that most of the respondents believed that investment in gold is safe and will yield high returns in future. In other words, the study brings out the fact that investment in gold involves low risk with high returns