how thai consumers choose a retailer for fine jewellery in
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HOW THAI CONSUMERS CHOOSE A RETAILER FOR
FINE JEWELLERY IN BANGKOK
BY
MR. TANASE SRIKRISANAPOL
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2017
COPYRIGHT OF THAMMASAT UNIVERSITY
Ref. code: 25605902040392BDT
HOW THAI CONSUMERS CHOOSE A RETAILER FOR
FINE JEWELLERY IN BANGKOK
BY
MR. TANASE SRIKRISANAPOL
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2017
COPYRIGHT OF THAMMASAT UNIVERSITY
Ref. code: 25605902040392BDT
(1)
Independent Study Title HOW THAI CONSUMERS CHOOSE A
RETAILER FOR FINE JEWELLERY IN
BANGKOK
Author Mr. Tanase Srikrisanapol
Degree Master of Science Program in Marketing
(International Program)
Major Field/Faculty/University Faculty of Commerce and Accountancy
Thammasat University
Independent Study Advisor Professor Paul G. Patterson, Ph.D.
Academic Year 2017
ABSTRACT
People purchase fine jewelry for many reasons and use different criteria in
their purchasing decision. Due to rising middle-class income, the Thai market is
expected to be the second largest market for fine jewellery in ASEAN. In order to
capture this growth, retailers must adopt digital technology applications as an
additional, emerging channel to connect with their target market. This consumer
group considers online as an expression platform and a mean to facilitate their lives.
They often search for information both offline and online in order to get the best
product with the best price before making their decision.
The main objective of this study was to understand “How Thai Consumers
Choose a Retailer for Fine Jewellery in Bangkok”. The study focused on the
consumer journey of purchasing fine jewellery and examined the consumer brand
choice decision. The knowledge gained would provide a reliable guide for Thai
jewellery retailers in developing effective marketing plans in a digital age.
Both secondary and qualitative research were completed prior to
administering an online questionnaire. The qualitative research was conducted using
in-depth interviews with seven respondents who have purchased fine jewellery in past
year. This was done in order to get insights on consumer purchasing behavior and
attitudes toward jewellery brands and local retailers. Then, key qualitative findings
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were used to design a descriptive survey.
The results based on consumer decision process showed that at the
information search stage, consumers paid heavy attention to brand image and WOM
referral. These two factors were the key drivers in creating brand awareness and
attracting new consumers to a particular retailer store. However, at a purchasing stage,
Thai consumers considered product features and service experience as the main
factors in their choice of jewellery retailers. The findings imply that in order to better
capture the rising middle-class consumers, Thai jewellery retailers should invest in
branding (online and offline) and continuously improve personalized products and
services simultaneously.
Keywords: Jewellery retailer, Choice criteria, Brand, Thailand
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ACKNOWLEDGEMENTS
Firstly, I would like to express my gratitude to my advisor, Prof. Dr. Paul
G. Patterson, for his valuable guidance and contribution throughout the course of
independent study. His advices are helpful and guide me in the right direction.
Without his participation and input, the report could not have been successfully done.
I truly appreciate this encouragement and dedication of both time and effort.
I would like to sincerely thank you to every interview participant for support,
kind cooperation and useful information to complete this study.
I also would like to sincere thanks all my supporters and research
participants including my family and MIM friends for their contribution through the
completion of this research. All your supports are inspiration to the success of this
research, without your helping hands it would not be accomplished.
Mr. Tanase Srikrisanapol
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TABLE OF CONTENTS
Page
ABSTRACT (1)
ACKNOWLEDGEMENTS (3)
LIST OF TABLES (7)
LIST OF FIGURES (8)
CHAPTER 1 INTRODUCTION 1
1.1 Background of study 1
1.2 Definition of words in the study 2
1.2.1 Definition of Jewellery 2
1.2.2 Definition of Fine Jewellery 2
1.2.3 Definition of Costume Jewellery 2
1.2.4 Definition of Jewellery retailer 2
1.2.5 Definition of Jewellery brand name 2
1.3 Study purpose and objectives 3
CHAPTER 2 REVIEW OF LITERATURE 4
2.1 Fine jewellery market landscape change 4
2.2 Growth of branded jewelry 5
2.3 Business opportunities in e-commerce 6
2.4 New potential model for digital age 6
2.5 Digital media affect consumer decision journey 7
2.6 Shifting customer path 8
2.7 Theoretical Foundation: Consumer buying process 9
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CHAPTER 3 RESEARCH METHODOLOGY 12
3.1 Exploratory research method 12
3.1.1 Secondary research 12
3.1.2 In-depth interview 13
3.1.3 Questionnaire survey 13
3.2 Key research variables 13
3.3 Data analysis plan 14
CHAPTER 4 RESULTS AND DISCUSSION 15
4.1 Key findings from in-depth interview 15
4.2 Key findings descriptive, quantitative analysis 16
4.2.1 Sample demographic profile 16
4.2.2 Testing hypothesis on occasion of purchase 17
4.2.1.1 Testing hypothesis on attitude factors of purchase 17
4.2.2.2 Testing hypothesis on consumer journey 17
4.2.3 Consumer characteristics 18
4.2.4 Consumer segmentation 19
4.2.5 Consumer segments decision journey 20
4.2.5.1 Start searching information at information search stage 20
4.2.5.2 Jewelry retailer alternatives at evaluation stage 21
4.2.5.3 Price comparison at purchase decision stage 22
4.2.6 Comparing important variables between international 23
brand name and Thai local retailer
CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 25
REFERENCES 26
APPENDICES 27
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APPENDIX A: Hypothesis on important factors 28
APPENDIX B: Factors analysis 29
APPENDIX C: Questionnaire Survey 30
BIOGRAPHY 35
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LIST OF TABLES
Tables Page
4.1 Interviewee demographic profiles 15
4.2 Chi-Square result based on crosstab analysis between 17
information search behavior and reason to purchased
4.3 Summary of 14 dependent variables derived from factor analysis 18
4.4 Consumer segment name and characteristic 20
4.5 Consumer segments started searching information about fine jewellery 20
4.6 Jewelry retailer that the consumer chose to go or to purchase 21
4.7 The Consumer compared on price before making a decision 22
4.8 Result from Independent Sample Test comparing important variables 23
towards International brand and Thai local retailer
4.9 Mean value of important variables towards International brand and 23
Thai local retailer
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LIST OF FIGURES
Figures Page
2.1 Rising of income per capita in 10 ASEAN countries 4
2.2 Rising of branded jewelry 5
2.3 Percentage of Thai population having mobile phone 6
2.4 C2B (customer-to-business) model 7
2.5 Traditional & digital consumer decision journey 8
2.6 The Shifting customer path in a connected world 9
2.7 Consumer buying process 9
4.1 Five clusters analysis derived from factor analysis 19
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CHAPTER 1
INTRODUCTION
1.1 Background of study
Jewellery is one of the major industries that drive the economy of Thailand.
Thailand is targeted to be a manufacturing hub and opened flagship stores of many
international brands such as Cartier, Bvlgari, Piaget, Chopard, Van cleef & Arpels,
Tiffany&Co. and Mikimoto. This is due to high quality sources of gemstones and Thai
people service-minded characteristic. Moreover, Thailand is also well known for
delicate handcraftsmanship in making jewellery. Thai goldsmiths’ skills and
experience are full of traditional wisdom, hence they are able to create high quality
jewellery pieces and distinguished world-class designs.
With urbanization expansion of the middle-class, most of the middle-class are
the Millennial or Generation Y, who are targeted by many brands. Due to higher
purchasing power, this target consumer group demands more than a basic product to
express their unique lifestyle. Growing e-commerce platforms, rapid changing
lifestyles and digital technologies pose a big challenge for brands to capture the Gen
Y consuming patterns. The influencing factors from social networks, new experience
events and marketing and overwhelming information support from the internet
become a common measure in their decision making process.
This report, “How Thai Consumer Choose a Retailer for Fine Jewellery in
Bangkok” is a study of consumer behavior on how Thai consumers purchased fine
jewellery in this modern age of technology by tracking their decision journey. By
determining the important factors and helping marketing managers of Thai local
jewellery retailers, we can understand consumer’s attitude in each stage of the
decision making process. Therefore, this proposed topic is an applied marketing study
of consumer decision journey.
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1.2 Definition of terms in the study
1.2.1 Definition of Jewellery
Jewellery is small decorative items worn on human body for
personal adornment such as; ring, earring, necklace, brooch, pendant, bangle or
bracelet.
1.2.2 Definition of Fine Jewellery
Fine jewellery can be defined as precious personal accessories which are
made from precious metals such as gold, platinum or palladium together with or
without natural diamond and/or precious gemstones such as ruby, blue sapphire,
emerald, opal, tanzanite, topaz, amethyst, aquamarine, tourmaline, tsavorite, jade or
real pearl. Sterling silver 925 are excluded from this study due to the material price of
silver is much cheaper than gold which creates a different market characteristic.
Precious watches are also excluded in this study.
1.2.3 Definition of Costume Jewellery
Costume jewellery can be defined as fashion accessories which are made
from non-precious metals such as brass, pewter, nickel with inexpensive synthetic
gemstones such as crystal, cubic zirconia which are man-made gemstones. The
intention of costume jewellery is to substitute precious jewellery in terms of cost
production. Consumers purchase costume jewellery to keep up with fast fashion
accessories and match their clothes with their ideal image at an affordable price.
1.2.4 Definition of Jewellery retailer
Jewellery retailer can be defined as Thai local retailers which most are
typically family business for many decades. Some retailers have only one standalone
store while others have expanded to various locations in Bangkok, usually in
departmental stores and community malls.
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1.2.5 Definition of Jewellery brand name
Jewellery brand can be defined as international jewellery brands which
opened a flagship store in Thailand such as Cartier, Bvlgari, Piaget, Chopard, Van cleef
& Arpels, Tiffany&Co. and Mikimoto.
1.3 Study purpose and objectives
The main objective of this study is to understand “How Thai Consumer
Choose a Retailer for Fine Jewellery in Bangkok”. It focuses on the consumer journey
when they purchased fine jewellery and examines the consumer brand choice decision
for Thai retailers to develop their marketing plan to capture consumer mind in the
digital age. In order to achieve the main objective, the study is divided into the
following:
1.3.1 To understand the current perception of Thai local jewellery retailers
and international brand flagship store in Bangkok in consumers’ minds towards
purchasing fine jewellery.
1.3.2 To identify consumers’ needs and their attitudes towards purchasing
fine jewellery in order to group consumer segments.
1.3.3 To map the consumer journey when they purchased fine jewellery in
Bangkok.
1.3.4 To examine factors contributing to the consumer brand choice
decision.
1.3.5 To recommend the strategies for Thai jewellery retailers to become
the ‘retailer of choice’.
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CHAPTER 2
REVIEW OF LITERATURE
2.1 Fine jewellery market landscape change
Fine jewellery was the second most significant export product with a
share of 25.03 percent of the Thailand’s export value of gem and jewelry, decreased
3.56 percent from the previous year. Behaviors of millennial or generation Y which is
the world’s largest consumer group has changed. They chose to spend on
technological gadgets and traveling rather than purchase jewelry. (The Gem and
Jewelry Institute of Thailand, 2016)
Figure 2.1 Rising of income per capita in 10 ASEAN countries
By prediction, luxury products will have 10-20% growth rate in global
demand in 2020. Thailand market is expected to be the second most significant
growth in ASEAN due to the rise of middle-class consumer income. The challenge is
that consumers regard fine jewellery as overpriced luxurious products and
unnecessary despite of having a well-known brand. The key is to capture the
consumption pattern of Gen Y, age 17-36 years old, which differs from their parent’s
generation. They grew up in the digital age and consider technology as a tool that
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made their lives easier. Before making a decision, they often looking for information
both offline and online and compare prices in order to get the best product with the
best deal. Furthermore, they seek a new value or experience from purchasing
products. (The Gem and Jewelry Institute of Thailand , 2017)
2.2 Growth of branded jewelry
McKinsey research revealed the interview with all executives in jewellery
business, branded jewelry will claim a higher share of the market by 2020 with three
types of consumers driving branded jewellery: 1) New way to show-off their acquired
wealth 2) Emerging-market consumers, sense of an upgraded lifestyle 3) Young
consumers to express themselves. Jewellery manufacturers can use digital media as a
platform for conveying information, shaping brand identity, and building customer
relationships. According to a McKinsey survey, two-thirds of luxury shoppers say
they engage in online research prior to an in-store purchase while one to two-thirds
say they frequently turn to social media for information and advice. (Linda Dauriz,
2014)
Figure 2.2 Rising of branded jewelry
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2.3 Business opportunities in e-commerce
From the research, it is estimated that by 2020 ASEAN countries
including Thailand will have as many as 290 million people in the middle class. The
development of IT infrastructure in these countries will come thereafter, hence
promoting ASEAN to be the next e-commerce destination. In Thailand, internet
accessibility has been steadily increasing at around 40%. As a result, there are
opportunities for existing and new entrepreneurs to expand their business into the
online platform. Facebook and Instagram lead the term “M (mobile) – Commerce.”
However, online shopping for fine jewellery is not quite popular in Thailand because
buyers are still afraid to pay before receiving these high-priced products. Therefore,
the seller should create reliability by providing complete product information,
including quality photographs, product price, and accurate material specifications.
Product guarantee is a must to make customer satisfied with the product. If confidence
is built, the online channel is a chance of survival for small enterprises in this rapidly
changing world, without taking any risks and high cost from opening branches. (The
Gem and Jewelry Institute of Thailand, 2016)
Figure 2.3 Percentage of Thai population having mobile phone
2.4 New potential model for digital age
In order to capture these Gen Y consumption patterns, Thai jewellery
retailers should adapt their business model to align with digital trends in 2018. From a
study of SCB-EIC introduced C2B (customer-to-business) model, which focused on
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customer drive, along with the possibility of digital platform will be a game changer
for the next industrial era. Data of customers can create new purchasing experience
for young generation. Customization and personalization on products and services can
add value to satisfy their needs and demand. The meaning of customization is that you
can have the same base product but you provide variants for your customer to adjust
your product to fit customer style and need and make them more satisfied.
Personalization is a pattern that consumers propose their own idea on product or
service with a quoted price, and the deal is completed when both seller and buyer
agree to the terms. (Economic Intelligence Center, 2017)
Figure 2.4 C2B (customer-to-business) model
2.5 Digital media affect consumer decision journey
Digital and traditional media planning should be fully integrated to reflect
the integrated, multichannel nature of the “consumer decision journey”. Integration
requires strong signaling from management teams—bold, visible moves that highlight
digital marketing and sales as priorities for the organization. (Nicolò Galante, 2013)
Especially for traditional jewellery stores, depending solely on offline marketing is
not sufficient to survive and it is a big challenge for the company to acquire digital
capabilities.
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Figure 2.5 Traditional & digital consumer decision journey
2.6 Shifting Customer Path
In the pre-connectivity era, Derek Rucker of the Kellogg School of
Management (Philip Kotler, 2017) offered a way to understand how people buy with
four A’s: aware, attitude, act and act again. Customer determines his/her own attitude
towards a brand. But in the new customer path in connectivity era, loyalty should be
redefined as the willingness to advocate a brand. Customer might currently not use the
product from a particular brand but he or she is satisfied and willing to recommend it
and the appeal of a brand is driven by the community. Based on this new journey, the
four As of customer path should be modified into five As: aware, appeal, ask, act and
advocate. During the stage of building ask-and-advocate relationship, customer is
trying to understand the brand by asking friends for advice or searching a review
online which is a crucial connection part that either strengthens or weakens the brand
from the initial appeal
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Figure 2.6 The Shifting customer path in a connected world
2.7 Theoretical Foundation: Consumer buying process
Consumer buying process is a simple psychological process in which a
person starts recognizing a problem or need that is triggered by internal or external
stimuli. Consumers will often search for more information to evaluate all the options
before making a purchase decision, and thereafter experience the value of that product
or service. (Keller, 2016) Need recognition is the cause of any purchase intention.
After the need is recognized, marketers can help consumers narrow down their
choices and support their decisions with appropriate marketing campaigns. These
marketers help shorten the time spent during ‘Information search’ and ‘Evaluation of
alternative’ process. Jewellery retailers are in the role of marketers who can create
awareness in their online platform with contact for further information and drive
consumer to go to physical stores and treat customer with an appropriate approach to
enhance reliability in order to make customer feel satisfied and make the purchase
decision. (Keller, 2016)
Figure 2.7 Consumer buying process
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This is the summary of the literatures:
(1) Characteristics of potential middle class consumer has changed
to be Generation Y preference which they often look for information both offline and
online in order to get the best product with the best deal.
(2) Research has shown that in 2020, branded jewellery will claim
more share in the market. Jewellery manufacturers should use digital media as a
platform for conveying information, shaping brand identity, and building customer
relationships.
(3) Research has shown that 90% of people who live in Bangkok
have smart phone and there are huge opportunities in e-commerce platform. However,
Thai buyers are still afraid to pay before receiving the high-priced fine jewellery
online. Therefore, the seller should enhance their reliability by providing complete
product information and product guarantee in order to ensure customers are satisfied
with the product.
(4) Research on consumer behavior suggested a new core model of
business is consumer-driven centric. Customization and personalization on products
and services can add value to satisfy their needs and demand.
(5) Digital media now take part in every touch points of consumer
decision journey
(6) Consumer path have shifted in connectivity era to five A’s:
aware, appeal, ask, act and advocate. Loyalty is redefined as the willingness to
advocate a brand.
(7) The core of consumer buying process is still the same to capture
consumer mind.
From literature reviews, we know that social platform takes an important
part in digital business era and embed in each touch point of consumer journey. But
most of the researches or articles were analyzed based on commodity product. Unlike
fine jewellery (a luxury category with a high price), Thai consumers still need a
physical store for selecting a real product before making their decision. Most of the
consumers do not have enough knowledge to differentiate the real diamond and
gemstones from imitations. How consumers choose a reliable jewellery store is
another crucial issue for Thai local retailer managers to determine. This study will fill
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up in areas of limited knowledge and identify important factors and consumer
attitudes in making their decision to purchase precious fine jewellery in particularly
retailer.
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CHAPTER 3
RESEARCH METHODOLOGY
The purpose of this report is to study consumer behavior along with
consumer decision journey of Thai consumer when they purchased fine jewelry for
any occasion. Exploratory research is used in order to understand the overall jewellery
industry. This gave a clearly insight of current consumer attitude toward this specific
luxury product.
3.1 Exploratory research method
3.1.1 Secondary research
This study is conducted by searching the secondary data of jewellery
industry and market overview at global landscape and scaling down to Asian region
and Thailand. These overview researches are the way to answer the research
objectives in 1.3.1 and also provide some useful information as a guideline for
preparing questions, interviewing consumers to answer the objectives in 1.3.2, 1.3.3,
1.3.4, and 1.3.5.
Most sources of secondary data are available on the internet and by
selecting information that were currently published no more than four years and also
come from creditable sources such as global market research company, global
published magazines, Thailand government resources, Thailand public organization as
the detail as follows
(1) Euromonitor International
(2) McKinsey & Company
(3) The Gem and Jewellery Institute of Thailand (GIT)
(4) Government Agencies such as National Statistical Office,
Ministry of Commerce
(5) Siam Commercial Bank - Economic Intelligence Center
(6) Previous study, survey, research paper, report in related topic.
(7) Published and trade news & magazines.
(8) Text books
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3.1.2 In-depth interview
In-depth interviews were conducted separately with 7 qualified
respondents who purchased fine jewellery within 1 year before the interview date.
The respondents were involved in decision making process to select that particular
jewellery retailer either local jewellery retailers or jewellery brand.
Type of questions were an open-ended style to avoid guiding the answer
and gave respondents freedom to express their thoughts within area of study topic.
During the interview session, laddering technique were used to probe the causes of
behavior in each situations and examining the hidden issue in order to get insight of
attitude, specific problems and satisfaction which they have experienced. All
respondents were digitally recorded.
3.1.3 Questionnaire survey
Key findings from in-depth interview were used as a guideline for
designing questionnaire survey. The survey was launched online through channel of
social media. Due to time constraint, the study was used a convenience sampling
method, recruiting 214 respondents. The respondents were male or female aged
between 25 – 80 years old who had:
(1) Purchased fine jewellery within 1 year and were involved in
decision making process to select that particular jewellery. Or,
(2) Planned to purchase fine jewellery in the next twelve months.
3.2 Key research variables
Key variables of this study are 1) Thai consumers’ profile such as gender,
age, monthly income, education, occupation and residence. 2) Thai consumer
behaviors such as information search process and evaluation thinking that exposed to
purchase decision. 3) Reason or occasion of purchasing that particular jewellery and
frequency of purchase in a year. 4) Internal influencers who take part in consumer
decision process. 5) External influencers and factors that affect purchase decision
such as social voices on social platforms, brand awareness, brand image, location of
jewellery store. 6) Ideal attitude comparing between international brand name retailer
and Thai local retailer. 7) Attitude towards decision to purchase in terms of;
credibility of retailer, product variety & design, salesperson service, price and
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promotion.
This study processed quantitative data which divided respondents into
two situations. Firstly, a group of respondents who have purchased jewellery before
and secondly, the other group who did not purchase but did planned to purchase. The
data can be classified into better understanding for key findings.
The study separated questions such as occasions of purchase like wedding
and other purchase reasons. The reason for dividing into these two groups is to test the
hypothesis that occasion of purchase may cause a different attitude in purchasing fine
jewellery among the target respondents.
From the in-depth interview, key findings found that the reason behind
purchasing decision is mostly relying on trust and reliability of that retailer. This
study divided 214 respondents from questionnaire survey into segments and classified
by using attitude factors towards decision to purchase in order to trace the different
attitudes among consumer segments.
3.3 Data analysis plan
For in-depth interview, the analysis and summary of response was
recorded in written of following: respondent general profile (gender, age, income,
education and occupation), consumption behavior (frequency, searching process),
attitude of purchasing fine jewellery (social status, relationship with family and
friends, interests, lifestyle), Consumer purchasing factors (product, price, place,
promotion, reliability, store image, sale person, experience).
The data analysis for questionnaire was analyzed through the Statistic
Program for the Social Sciences (SPSS) by using frequency, factor analysis, cluster
analysis and crosstabs analysis to see the relationship of the attribute brand and
consumer behavior, using Independent Sample Test as mean comparisons to compare
mean of two factors and other appropriate statistical analysis deemed necessary.
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CHAPTER 4
RESULTS AND DISCUSSION
4.1 Key findings from in-depth interview
In-depth interviews were conducted separately with 7 respondents who
have purchased fine jewellery within 1 year before the interview date. There are 4
females, 3 males are shown in table of In-depth interview respondents’ demographic
below
Table 4.1 Interviewee demographic profiles
Gender
Age
Education
Occupation
Monthly income
Female
28
Bachelor degree
Visual merchandiser
25,000 baht
Female
29
Bachelor degree
Sale executive
45,000 baht
Female
32
Master degree
Marketer
35,000 baht
Female
33
Bachelor degree
Online marketer
70,000 baht
Male
29
Master degree
Property consultant
85,000 baht
Male
32
Master degree
Business owner
70,000 baht
Male
47
Master degree
Marketing vice president
200,000 baht
All respondents said they were searching for jewellery design and
information on estimated diamond prices from various retailers on internet and social
media pages at the beginning of the journey. “I mainly look for a familiar name or
brand in department store, seeking for the best promotion. Eventually, I ignored all
those brand’s promotions because they offer a fixed design for each promotion that I
do not like.”, one female respondents, age 28 said.
Five respondents said referral from friends and family is the most
important criteria that make them decide to try the real jewellery at the physical store
before purchasing. Two of them said they collected diamond prices from three
different retailers before deciding which store they would purchase. The rest of the
three respondents only went to one recommended retailer.
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One respondent experienced a quality customer service from well-trained
service providers at an internationally acclaimed brand’s flagship store in Thailand. “I
particularly went to Cartier’s store for my proposal ring as I knew that this jewellery
brand is in my girlfriend’s dream list. I am very satisfied with the purchasing
experience. I feel it is worth the money I have paid, comparing with high service I
was treated. My fiancée and I also ended up purchasing our couple rings with them”,
one male respondent, age 29 said.
Meanwhile, there were some respondents who ignored these international
brands from their consideration set. “I perceived that most of this high price label is a
mark up of brand value, not a reasonable cost of gemstones or precious metal itself.
Because I am familiar to purchase fine jewelry with my parents since I was young, so
I have enough knowledge and reference prices to evaluate the cost of diamond and
gemstones. I mainly acquired lowest price with the best quality. I also prefer retailers
who have their own stock of diamond together with a reliable laboratory’s certificate.
Because some retailers require me to deposit money before they import that specific
diamond from other country.” one female respondent, age 29 said.
Important factors all respondents mentioned respectively are diamond
prices, jewellery design matching with their style, atmosphere of physical store and
service provider.
All respondents had a good experience with their jewellery retailer. They
said that they will recommend the same jewellery retailer they have bought to their
friends if they were asked.
4.2 Key findings from descriptive, quantitative analysis
4.2.1 Sample demographic profile
The total respondents were 214, the profile were 77% female, 23% male
with 92% age between 25 to 57 years old. Their occupation, 43% is an office worker
and 27% is a business owner. 64% of their education have bachelor’s degree with
60% gained monthly income between 15,000 – 50,000 baht. 70% live in Bangkok.
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4.2.2 Testing hypothesis on occasion of purchase
According to the expertise of researcher in fine jewellery business,
researcher believed that consumer decision for purchasing jewellery is mostly based
on emotional and psychological reasons. There were two main hypothesis tested about
the occasion of purchase – whether wedding ceremony or other reasons could have
caused different attitude factors of purchase fine jewellery and different decision
journey.
4.2.2.1 Testing hypothesis on attitude factors of purchase
From the total 214 respondents, the reason they purchased or
involved in the selection process of fine jewelry in the past year (2017) are 16%
purchased for wedding ceremony and 84% purchased for other reasons.
For respondents who purchased for other reasons can be divided into
68% purchased for their own collection and 23% purchased as a gift for other people,
while the rest of the 9% purchased for other specific reasons.
The study tested hypothesis using Independent Samples Test. The
result showed that there were no significant different attitude factors of purchasing
decisions between these two groups. (See Appendix A)
4.2.2.2 Testing hypothesis on consumer journey
The study tested the hypothesis that occasion of purchase could have
caused different consumer journey. Using Crosstabs analysis between reason of
purchase and information search behavior. The result is shown on table of Chi-Square
test below.
Table 4.2 Chi-Square result based on crosstab analysis between
information search behavior and reason to purchased
Value df
Asymptotic Significance
(2-sided)
Pearson Chi-Square 1.475a 3 0.688
Likelihood Ratio 1.598 3 0.66
Linear-by-Linear Association 0.223 1 0.637
N of Valid Cases 214
There is no difference between the two group as significant value =
0.688. With these two hypothesis tests, we concluded that there is no different
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between this two group of consumer purchased for wedding ceremony and purchased
for other reasons. Therefore, factor analysis was selected to explain the consumer
segmentation.
4.2.3 Consumer characteristics
Factor analysis was completed in order to identify consumer’s important
variables in their purchase decision (as shown in Appendix B) based on 14 variables
asking from respondents about important factors when they make decision to
purchase jewellery in particularly retailer. Table 4.2 explained the characteristics -
five dependent variables derived from 14 factors using factor analysis with Varimax
rotation with KMO of 0.874. It explained 74 percent of the total variations with
Eigenvalues > 0.70.
Table 4.3 Summary of 14 dependent variables derived from factor analysis
Factor
Dependent Variables
Factor Name
1
- Have discount price or premium promotion
- Can bargain with price
Price offering
2
- Have variety of products to try on
- Well design with modern and fashionable style
- Can customize or made to order product
- Have certificate of gemstone and jewelry
Product variety &
Personalize design
3
- Retailer has positive feedbacks from social media
- Retailer place at well-known department store
Positive brand image
4
- Retailer's name frequently mentioned or
open for a long time
- Family, friend or acquaintance recommend
that retailer
- Your friend or acquaintance is that retailer's owner
Personal referral
5
- Salespersons provide a good service and do not
push customer to buy
- Salespersons are knowledgeable to answer
customer's questions
- Salespersons can suggest jewelry design that
suit with customer need
Salesperson service
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Apart from common 4Ps of business components, consumer personal
referral took an important role to build trust in consumer mind at the first stage of
brand awareness. Meanwhile salesperson service would help emphasize brand image
and reinforce consumer trust at evaluation stage.
4.2.4 Consumer segmentation
Figure 4.1 Five clusters analysis derived from factor analysis
Based on factor analysis with five main important variables to consumers,
the consumers can be segmented into 5 main clusters as displayed in figure 4.1. Using
two-step cluster analysis, the consumer can be distinguished into 5 clusters with
characteristic as shown in table 4.3.
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Table 4.4 Consumer segment name and characteristic
Cluster
N
Segment name
Characteristic
1
65
Referral believer
They trust brand through personal referral, but also
seeking for good deal.
2
66
Brand believer
They first determined brand image from the place of
retailer and positive social comments as external
factor, then evaluated more from salesperson service.
3
36
Salesperson
influencer
They evaluated brand from internal factors which
focus on salesperson performance and reliability.
4
38
Individualist
They focused on the variety of product to try on
together with personalize design, willing to pay for
their desire product.
5
9
Price sensitive
Mainly focused on price with the best deal product,
neither care with other people comments nor brand
image.
4.2.5 Consumer segments decision journey
The study used crosstabs analysis derived between each variable and five
clusters to find a significant value in order to distinguish the different consumer
journey.
4.2.5.1 Start searching information at information search stage
Table 4.5 Consumer segments started searching information about fine jewellery
Cluster
Name
Count
internet
/ social
media
Jewelry
retailer in
department
store
Jewelry
retailer
recommend by
acquaintance
Acquaintance who is
a jewelry retailer
owner or working in
jewelry industry
Total
N
Referral
believer
Count 29 17 9 10 65
% within
5 Clusters 44.60% 26.20% 13.80% 15.40% 100%
Brand
believer
Count 26 20 11 9 66
% within
5 Clusters 39.40% 30.30% 16.70% 13.60% 100%
Salesperson
influencer
Count 14 11 7 4 36
% within
5 Clusters 38.90% 30.60% 19.40% 11.10% 100%
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Table 4.5 Consumer segments started searching information about fine jewellery
(continue)
Cluster
Name
Count
internet
/ social
media
Jewelry
retailer in
department
store
Jewelry
retailer
recommend by
acquaintance
Acquaintance who is
a jewelry retailer
owner or working in
jewelry industry
Total
N
Individualist
Count 16 8 7 7 38
% within
5 Clusters 42.10% 21.10% 18.40% 18.40% 100%
Price
sensitive
Count 4 1 2 2 9
% within
5 Clusters 44.40% 11.10% 22.20% 22.20% 100%
Total
Count 89 57 36 32 214
% within
5 Clusters 41.60% 26.60% 16.80% 15.00% 100%
Table 4.4 showed that internet and social media are the first easy
access every segments chose to collect the information about fine jewellery. Retailer
manager should not ignore creating brand awareness in online channel as a marketing
tool in order to appeal new consumers and drive them to physical store.
4.2.5.2 Jewelry retailer alternatives at evaluation stage
Table 4.6 Jewelry retailer that the consumer chose to go or to purchase
Cluster
Count
International brand
name flagship store
Local standalone
retailers
Local retailer opened
at department store
Selected Total Selected Total Selected Total
Referral
believer
Count 22 65 25 65 49 65
% within
5 Clusters 33.80% 100% 38.50% 100% 75.40% 100%
Brand
believer
Count 20 66 30 66 43 66
% within
5 Clusters 30.30% 100% 45.50% 100% 65.20% 100%
Salesperson
influencer
Count 6 36 18 36 25 36
% within
5 Clusters 16.70% 100% 50.00% 100% 69.40% 100%
Individualist
Count 8 38 19 38 27 38
% within
5 Clusters 21.10% 100% 50.00% 100% 71.10% 100%
Price
sensitive
Count 2 9 2 9 5 9
% within
5 Clusters 22.20% 100% 22.20% 100% 55.60% 100%
Total
Count 58 214 94 214 149 214
% within
5 Clusters 27.10% 100% 43.90% 100% 69.60% 100%
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Table 4.5 showed that local retailers opened at department store is
most selected in every segments alternative. Whether local retailers were chosen more
than international brand name flagship store, but local retailer who opened in well-
known department store have more credibility and gain more trust on brand
preference in consumer mind than standalone local retailer.
4.2.5.3 Price comparison at purchase decision stage
Table 4.7 The Consumer compared on price before making a decision
Cluster
Count
Did not compare
(only one retailer)
Compare 2-3
retailers
Compare more
than 3 retailers
Total N
Referral
believer
Count 15 34 16 65
% within
5 Clusters 23.10% 52.30% 24.60% 100%
Brand
believer
Count 19 37 10 66
% within
5 Clusters 28.80% 56.10% 15.20% 100%
Salesperson
influencer
Count 11 20 5 36
% within
5 Clusters 30.60% 55.60% 13.90% 100%
Individualist
Count 10 23 5 38
% within
5 Clusters 26.30% 60.50% 13.20% 100%
Price
sensitive
Count 5 2 2 9
% within
5 Clusters 55.60% 22.20% 22.20% 100%
Total
Count 60 116 38 214
% within
5 Clusters 28.00% 54.20% 17.80% 100%
Table 4.6 showed that the consumers mostly compared prices of fine
jewellery with 2-3 retailers before making a purchase decision. Especially for
consumers who are price sensitive, they tend to compare prices with more than three
retailers.
In conclusion, all of these three findings using crosstabs analysis showed
that there was no significant different value between five clusters. But these findings
about consumer journey were interesting that researcher suggests doing a further
specific research in each stage of consumer decision process with a large number of
sample size in order to obtain a more significant result.
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4.2.6 Comparing important variables between international brand
name and Thai local retailer
Based on the objective of study to understand the current perception of
consumer mind between Thai local jewellery retailers and international brand flagship
store in Bangkok, researcher used the same seven important variables for both two
compare factors. Independent sample tests were conducted in order to compare mean
of seven variables used for this objective.
Table 4.8 Result from Independent Sample Test comparing important variables
towards International brand and Thai local retailer
T-test for Equality of Means
Independent Variables F Sig. (2-tailed) Mean Difference
Quality of product 20.077 0.000 -0.500
Variety of product to try on 3.262 0.003 -0.305
Quality of salesperson service
(before and after sale) 1.607 0.194 -0.131
Bargaining on price 6.68 0.024 -0.267
Store atmosphere 0.001 0.330 -0.107
Appealing promotion 0.184 0.175 -0.141
Easy to access location 0.265 0.455 -0.079
Table 4.7 showed the results when comparing mean of important factors
of attitude to purchase jewellery between international brand and Thai local retailer.
There were three variables that were significantly different – quality of product,
variety of product to try on and bargaining on price which all of these factors were a
product functional benefit.
Table 4.9 Mean value of important variables towards International brand and
Thai local
Independent Variables Type N Mean SD
Quality of product
Inter Brand 213 4.91 1.303
Thai Local 214 5.41 0.939
Variety of product to try on
Inter Brand 214 4.91 1.116
Thai Local 213 5.22 0.957
Bargaining on price
Inter Brand 213 4.88 1.356
Thai Local 214 5.15 1.064
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Table 4.8 showed the mean difference between international brand and
Thai local retailer among three significant variables. Respondents gave an important
value for Thai local retailer higher than international brand. It could describe that Thai
consumers were more focused on the products if that retailer was unbranded local, but
less focus on products if that retailer an international brand. This is why international
brand continuously create their brand value in consumer perspective.
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CHAPTER 5
CONCLUSIONS AND RECOMMENDATIONS
From the research analysis, it could be implied that brand image, social
referral and referral from the people around target consumer took an important role at
the information search stage to create a brand awareness and appealed new consumers
to go to the retailer store. The more positive the brand image is, the more opportunity
to acquire a new consumer. But when it came to the purchasing stage, Thai consumers
considered product features and service experience as main important factors.
Jewellery retail manager can consider five main factors – price offering,
product variety & personalized design, positive brand image, personal referral and
salesperson service as a measurement of their brand. From research analysis, we
classified consumer into five segments which they gave an important factor
differently on each of this five factors. If jewellery retail manager could have aligned
their strength to this guideline, they could acquire more customers. Majority of
consumers is a “Referral believer” and “Brand believer” segment, which means that
jewellery retailers should develop their product by creating more variants to adapt to
each consumer satisfaction. Moreover, salesperson training was also crucial to suggest
and give advice to consumer when they have a first visit to the store in order to
capture their satisfaction experience and create more positive referral to their brand.
Research analysis showed that Thai consumers were more focused on the
products if that retailer is unbranded, but less focused on products if that retailer is an
international brand which continuously create their brand value. Having a good
product is just a point of parity that any jewellery retailer should have, but to have a
good brand is a point of difference that you will create more loyal customers. Thai
local retailer must start to invest in their branding in order to survive in the future.
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REFERENCES
Economic Intelligence Center. (2017, September 28). Outlook Quarter 4/2017. EIC
Analysis / Outlook , 56-59.
Keller, K. (2016). Marketing Management (Vol. 15). Harlow, England: Pearson.
Linda Dauriz, N. R. (2014, February). A multifaceted future:The jewelry industry in
2020. McKinsey&Company , 2-3.
Nicolò Galante, C. M. (2013, December 1). Building capabilities in digital marketing
and sales: Imperatives for consumer companies . (N. F. Monica Toriello,
Ed.) Perspectives on retail and consumer goods , 2, pp. 12-14.
Philip Kotler, H. K. (2017). Marketing 4.0 Moving from Traditional to Digital.
Hoboken, New Jersey, Canada: John Wiley & Sons, Inc.
The Gem and Jewelry Institute of Thailand. (2016). Thailand's Gem and Jewelry
Import-Export Performance 2016. Retrieved November 26, 2017, from
The Gem and Jewelry Institute of Thailand (Public Organization):
https://www.git.or.th/thai/info_center/trade_review/
2017/GIT_TRADE_REVIEW_2016_en.pdf
The Gem and Jewelry Institute of Thailand . (2017). GIT Trade Publication.
Retrieved 11 26, 2017, from The Gem and Jewelry Institute of Thailand
(Public Organization): https://www.git.or.th/thai/info_ center/trade_review
/2017/ASEANReview2-2017.pdf
The Gem and Jewelry Institute of Thailand. (2016). ASEAN: Business Opportunities
in E-Commerce. Gem and Jewelry Information Center , 1,2.
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APPENDICES
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APPENDIX A
HYPOTHESIS ON IMPORTANT FACTORS
Levene's Test for Equality of Variances
t-test for Equality of Means
Important variables F
Sig. (2-
tailed)
Mean
Difference
Retailer's name frequently mentioned
or open for a long time 1.471 0.173 -0.25817
Family, friend or acquaintance
recommend that retailer 1.667 0.637 0.09673
Retailer has positive feedbacks from
social media 1.005 0.696 -0.09706
Your friend or acquaintance is that
retailer's owner 0.399 0.681 0.10033
Retailer place at well-known
department store 0.055 0.711 0.09118
Have variety of products to try on 3.454 0.767 -0.04967
Well design with modern and
fashionable style 0.238 0.206 -0.23497
Can customize or made to order
product 3.489 0.026 -0.41373
Have certificate of gemstone and
jewelry 0.058 0.997 0.00065
Salespersons provide a good service
and do not push customer to buy 0.17 0.692 -0.06699
Salespersons are knowledgeable to
answer customer's questions 0.101 0.475 -0.11536
Salespersons can suggest jewelry
design that suit with customer need 0.758 0.767 0.04967
Have discount price or premium
promotion 0.464 0.079 -0.31209
Can bargain with price 0.007 0.264 -0.20392
Can remake a new jewelry from the
old one 0.791 0.880 -0.02843
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APPENDIX B
FACTORS ANALYSIS
Important Variables 1 2 3 4 5
Retailer's name frequently mentioned or
open for a long time
0.516
Family, friend or acquaintance
recommend that retailer
0.828
Your friend or acquaintance is that
retailer's owner
0.673
Retailer has positive feedbacks from
social media
0.764
Retailer place at well-known department
store
0.902
Have variety of products to try on
0.805
Well design with modern and fashionable
style
0.703
Can customize or made to order product
0.785
Have certificate of gemstone and jewelry
0.550
Salespersons provide a good service and
do not push customer to buy
0.775
Salespersons are knowledgeable to answer
customer's questions
0.771
Salespersons can suggest jewelry design
that suit with customer need
0.765
Have discount price or premium
promotion 0.790
Can bargain with price 0.736
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APPENDIX C
QUESTIONNAIRE SURVEY
Screening Questions
1. Did you purchased or involved in the selection process of fine jewelry in the
past year (2017)?
Yes - go to Q.3 No - go to Q.2
2. Did you have a plan to buy or in the process of purchasing fine jewelry in this
year (2018)?
Yes - go to Q.3 No - Screen out
3. Where is the fine jewelry store that you buy?
Bangkok - go to Q.4 Upcountry - Screen out
4. Did you have a plan to buy or in the process of purchasing fine jewelry in this
year (2018)?
Yes No
5. What is the reason you purchased or involved in the selection process of fine
jewelry in the past year (2017)?
Wedding - go to Q.6 Other reasons - go to Q.11
Section A: For people who purchased jewelry for wedding
6. How long did you purchase fine jewelry before your wedding day?
Within 1 month before
Within 2-3 months before
Within 4-6 months before
More than 6 months before
7. What is a total budget of fine jewelry (both for groom and bride) for “Your
Wedding”?
Below 25,000 baht 25,000 – 55,000 baht
55,001 – 150,000 baht
150,001 – 350,000 baht
350,001 – 650,000 baht
650,001 – 1,000,000 baht
More than 1,000,000 baht
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8. Which type of fine jewelry that you purchased or involved in the selection
process?
Rings only
Rings with 1 or 2 other jewelry such as earring, necklace,
bracelet
Full set; ring, earring, necklace, bracelet or bangle
9. Who is involved in choosing “wedding jewelry” with you?
Only you
You and your fiancé
You and your close friend
You and your family or fiancé’s family
10. Who has an authority to choose fine jewelry design for wedding?
Bride
Groom
Parents of couples
Everyone have equal authority
Section B: For people who purchased jewelry for other reasons
11. What is the reason you purchased or involved in the selection process of fine
jewelry in the past year (2017)?
For your own collection
Gift for other
ETC:_______________
Section C: Purchasing Behavior of fine jewelry
12. How do you start searching for the information? (1 selection)
Internet / social media
Jewelry retailer in department store
Jewelry retailer recommend by acquaintance
Acquaintance who is a jewelry retailer or working in jewelry
industry
13. Which information you need most when you need to buy fine jewelry?
(Rank 1-5)
Least important Most important
1 2 3 4 5 6
- Level of diamond grading and quality
- Price of diamond grade that you wish
- Jewelry design that suit to you
- Promotion or seasonal discount
- Name of reliable jewelry retailers
from person who purchased before
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14. Do you have habitual fine jewelry retailer?
Yes - go to Q.15 No - go to Q.16
15. How many habitual retailers that you have?
only one retailer
2-3 retailers
more than 3 retailer
16. Which type of fine jewelry retailer that you used to purchased or thinking to
go? (can choose more than one)
International brand name retail (e.g. Tiffany, Cartier)
Only retailers that your acquaintance recommends
Local retailer at department store
Local retailer outside department store
Bag mobile retailer (person who put jewelry in a bag and go to
meet customer at their home or work office)
17. Who is involved in choosing “Your own jewelry” with you? (can choose
more than one)
Only you
You and your family
You and your close friend
You and your partner
Other ____________________
18. How frequently did you purchase fine jewelry?
Never buy before
Once for more than 1 year
Once in a year
2-4 times in 1 year
more than 4 times in 1 year
19. Normally, how many retailers that you compare the price of fine jewelry
before you decide to purchase at particular retailer?
Did not compare
Compare 2-3 retailers
Compare more than 3 retailers
20. How frequent you share the experience of service including during purchase
and after purchase fine jewelry to other people?
Never Sometime Often
Good experience
Bad experience
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Section D: Attitude towards jewellery retailer
21. In your opinion, how important you give for each factor for purchase fine
jewelry at International brand flagship store?
Least important Most important
1 2 3 4 5 6
Quality of product
Variety of product to try on
Quality of salesperson service (before and after sale)
Bargaining
Store atmosphere
Appealing promotion
Easy to access location
22. In your opinion, how important you give for each factor for purchase fine
jewelry at local retailer in Bangkok?
Least important Most important
1 2 3 4 5 6
Quality of product
Variety of product to try on
Quality of salesperson service (before and after sale)
Bargaining
Store atmosphere
Appealing promotion
Easy to access location
23. In your opinion, how important you give for each factor for “decision to
purchase” fine jewelry at particularly jewelry retailer in term of “Credibility of
retailer”?
Less important Most important
1 2 3 4 5 6
Retailer's name frequently mentioned or open for a long time
Family, friend or acquaintance recommend that retailer
Retailer has positive feedbacks from social media
Your friend or acquaintance is that retailer's owner
Retailer place at well-known department store
24. In your opinion, how important you give for each factor for “decision to
purchase” fine jewelry at particularly jewelry retailer in term of “Product
variety & design”?
Less important Most important
1 2 3 4 5 6
Have variety of products to try on
Well design with modern and fashionable style
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Can customize or made to order product
Have certificate of gemstone and jewelry
25. In your opinion, how important you give for each factor for “decision to
purchase” fine jewelry at particularly jewelry retailer in term of “Salesperson
service”?
Less important Most important
1 2 3 4 5 6
Salesperson provide a good service and do not push customer to buy
Salesperson are knowledgeable to answer customer's questions
Salesperson can suggest jewelry design that suit with customer need
26. In your opinion, how important you give for each factor for “decision to
purchase” fine jewelry at particularly jewelry retailer in term of “Price &
Promotion”?
Less important Most important
1 2 3 4 5 6
Have discount price or premium promotion
Can bargain with price
Can remake a new jewelry from the purchased one
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BIOGRAPHY
Name Mr. Tanase Srikrisanapol
Date of Birth October 18, 1989
Educational Attainment
2012: Bachelor of Architecture (Industrial Design)
King Mongkut’s Institute of Technology
Ladkrabang
2013: Graduated Gemologist
Gemological Institute of America
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