The paper "Understanding the Purchasing Environment" is a great example of a Marketing Case Study. This research was done to test the hypothesis mentioned. Out of 12 hypotheses, six hypotheses were accepted. This research was done to test the hypothesis H01 that cultural value is positively related to the loyalty of gold buying behavior. The findings found out that this hypothesis is supported. Several communities with different cultures use gold to maintain their identity. Huma et al. (2013) in their research found out that in India, the expatriates use gold artifacts to sustain their culture and show that they have not diverged from their original culture.
The research further illustrates that the expatriates valued gold due to the link it has to their cultural community. Then it can be seen that gold possession constitutes culture and the role it has in various societal rituals sustains the culture. According to Douglas and Craig (2006), these cultural rituals include customer behavior as well as other occasions such as marriages, religious holidays and festive seasons. However, gold does not have a similar status in other cultures other than the Indian culture.
In other cultures, gold does not have a considerate value as inculcated in the cross-generational relationships and tradition. Thus, generalization to other consumer societies and cultures is limited without accuracy and depth of comparison across various situations and contexts (Douglas and Craig, 2006). The relationship of gold purchasing within the culture and the consumer's behavior suggests that gold buying is a ritualistic activity. Gold buying is a social action that engages various individuals with consumption. Apparently, gold reinforces cultural values through the meanings it brings to society.
The gold purchase is not limited by price and other related issues due to its important role in society. This research set out to test hypothesis H02, which states that economic Value is related to the product loyalty of gold buying behavior. The findings of this study show that the hypothesis is supported. Most individuals purchase gold as a means of investment. They would rather buy gold when the prices are low and sell it when the price goes up. However, most individuals purchase gold at a larger quantity when their prices go down, but this demand is not reduced when the gold prices increase particularly in Cochin.
As to this, it is clear that gold is price sensitive at a low cost but it is also insensitive to the increase in prices. This notion possesses a lot of challenges to various authorities formulating various policies curbing gold consumption (CPPR, 2013). A study conducted by CPPR (2013) in Delhi and Cochin shows that most individuals are of the opinion that the government needs to reduce the import duty on gold since gold is an essential product for making jewelry and for investment.
Through this, the consumers believe that the gold prices are likely to go down and make it easy for the lower and middle-class consumers to obtain gold. Most individuals in countries like India attach more value to Gold due to various purposes it offers in their societies. As to this, the prices should be reduced at all costs to improve the consumers’ loyalty. From the study, it can be concluded that most individuals in Delhi and Cochin take gold to be a significant investment.
Economic value is the primary determining factor for the consumers while deciding to buy gold.
Chartered Institute of Purchasing & Supply. (2010). Understanding the purchasing environment: The official CIPS course book. Maidenhead: Profex.
CPPR. (2013). Gold and consumer behavior. Retrieved from: http://www.cppr.in/wp- content/uploads/2013/12/goldstudymaryhoney-131121055002-phpapp02.pdf
Douglas P and Craig C. (2006) Beyond national culture: implications for cultural dynamics for consumer research, International Marketing Review, 23(3), 322-342
Huma T, Donelda S., Grant, J. and Janice P. (2013). Shopping for gold. A Ritualistic experience. Retrieved from https://www.google.com/
Luna, Gupta, Forquer S. (2010). An integrative framework for cross-cultural consumer behavior, International Marketing Review, 18(1), 45-69
Maceda, C.(2014). Gold prices will stabilize this year expert’s say. Gulf News