Factors Affecting Consumer Behavior Towards Gold Ornaments
The high financial returns associated with trading the different forms of gold usually attract different classes of stakeholder, both as investors or gold collectors.
The movement of gold CFD prices in the market is influenced by various factors, which differ from those that influence the trade of physical gold. Simply put, the market prices for gold are mainly determined by economic factors, such as demand and supply in the market.
On the contrary, the exchange of physical gold assets, such as gold ornaments, is mainly influenced by the consumer’s behaviour and attitude towards the asset.
Understanding the consumer behaviour towards a commodity market allows you to devise strategic methods of buying and selling the asset.
In this article, we will discuss the six major factors that affect the consumer’s behavior towards gold ornaments. But before we discuss these factors, it would help to understand what is meant by consumer behavior.
What is Consumer Behavior?
In the business world (especially in the investment markets), consumer behaviour is useful in determining the best marketing tactics to employ when creating awareness for a brand or a commodity.
The main purpose of building strategies around a consumer’s needs is to influence their buying decision and incline it more towards buying from you.
In other words, consumer behaviour is the general attitude a consumer has towards a particular commodity or brand. Therefore, it would help to understand consumer attitudes because they determine the time, place, and amount of money they will spend on an item.
A good example is when people want to buy gold ornaments, whereby many people associate gold with wealth and high social status. For these reasons, a gold ornament is usually used to mark important occasions such as weddings and birth ceremonies.
Additionally, gold ornaments is used as a way of storing wealth (generational), which is easily passed down to future generations through inheritance.
The most important aspect a gold trade is turning your gold assets into liquid cash. Thus, when you want to sell gold jewelry in Rochester MI, it is crucial that you assess the consumer’s perception towards your ornaments.
What Factors Influence Consumer Behaviour towards Your Gold Ornaments?
Consumer behaviour towards gold ornaments is mainly influenced by the following six factors:
- Dealers Reputation
A bullion trader who has made a good name for themselves and their shop is likely to instil buying confidence in a buyer looking to buy gold ornaments, while a bad reputation shuns the buyer away.
- Purity and Concentration of the Gold
It is very inconvenient to use weight as unit of measurement when you are trading gold ornaments. As such, most bullion traders and ornaments buyers value your gold ornaments by assessing the concentration and purity of its gold.
Purity refers to the absence of foreign contaminants in the gold ornaments. Concentration, on the other hand, refers to the amount of gold in an ornament.
For instance, a necklace made of 24- carats, 99.9% pure gold is likely valued at a higher price than an identical necklace made of 18-carats, 97% pure gold.
- Price
The primary method with which most consumers make buying decisions is by comparing the prices of similar commodities. A consumer is more likely to buy your gold ornaments when the marked price lies within their budget.
- Purpose of the Ornaments
Antique gold ornaments are sold in auctions, which attract heavy rollers who try to outbid each other for the piece.
In that case, a buyer looking for a golden wedding ring has no business in an auction unless they are looking for a rare ancient golden ring.
- Brand Dealer
Consumers tend to buy gold from reputable manufacturing or dealer brands that are often associated with high social status and elegance. In such cases, the consumers are looking to stand out by associating with the brand.
- Consumer’s Income
A high-income consumer has a lot of money at their disposal. As such, they will have a wide range of gold ornaments to select from compared to a low-income consumer.
Conclusion
Consumer behavior trend determines how they make particular buying decisions. You will able to package your gold ornaments and align them with the needs of your consumers. Proper behavior analysis not only ensures that you satisfy the consumers’ needs, but also help you increase your sales.
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