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A PROJECT ON

A STUDY ON THE INFLUENCE OF BRAND AWARENESS, BRAND TRUST AND BRAND LIKING WITH RESPECT TO THE PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS

SUBMITTED TO AMITY UNIVERSITY IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF PROF. ANITHA SURESH SUBMITTED BY: SANTY SAJI JOHN ENROLLEMENT NUMBER: A31101911036 BATCH: 2011-2013

AMITYGLOBALBUSINESSSCHOOL RAJAJI ROADKOCHI-35

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE
This is to certify that the project entitled A STUDY ON THE INFLUENCE OF BRAND AWARENESS, BRAND TRUST AND BRAND LIKING WITH RESPECT TO THE PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS has been successfully carried out by Ms. SANTY SAJI JOHN in partial fulfilment of Master of Business Administration under my guidance during academic year 2011-2013.

Place: Kochi Date:

Ms. ANITHA SURESH (Internal Guide)

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE

This is to certify that the project entitled A STUDY ON THE INFLUENCE OF BRAND AWARENESS, BRAND TRUST AND BRAND LIKING WITH RESPECT TO THE PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS has been successfully carried out by Ms. SANTY SAJI JOHN in partial fulfilment of Master of Business Administration under my guidance during academic year 2011-2013.

Place: Kochi

Prof. BIJU VITHAYATHIL

Date: AMITY GLOBAL BUSINESS SCHOOL KOCHI

DIRECTER, AGBS, KOCHI

DECLARATION I, SANTY SAJI JOHN do hereby declare that the project entitled A STUDY ON THE INFLUENCE OF BRAND AWARENESS, BRAND TRUST AND BRAND LIKING WITH RESPECT TO THE PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS is an original work carried out by me under the guidance of Prof .ANITHA SURESH and has not been presented earlier for any other university for the award of degree in Master of Business Administration of Amity University.

Place: Kochi

SANTY SAJI JOHN

Date:

Roll No. : A31101911036

ACKNOWLEDGEMENT

TABLE OF CONTENTS
I. II. III. IV. V. EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE OF THE RESEARCH RESEARCH METHDOLOGY SAMPLE DEIGN a. SAMPLE TECHIQUE b. SAMPLE SIZE c. SAMPLE TYPE d. QUESTIONNAIRE

VI.LITERATURE REVIEW VII.PROBLEM FORMULATION VIII.DATA ANALYSIS AND INTERPRETATION IX.FINDINGS X.RECOMMENDATION XI.CONCLUSION XII.BIBLOGRAPHY XIII.ANNEXURE

Executive Summary
Gold has long been a valued commodity, particularly in India where it is considered auspicious, and has been in use for centuries in the form of jewelry, coins and other assets. Though gold is a highly liquid asset, it wasnt until recently that consumers leveraged it effectively to meet their liquidity needs. Lenders provide loans by securing gold assets as collateral. Compared with the rest of the world, in India the gold loan market is big business. Until a decade back, most of the lending was in the unorganized sector through pawnbrokers and money lenders. However, this scenario changed with the entrance of organized sector players such as banks and non-banking finance companies (NBFCs) which now command more than 25% of the market. The project intends to find out the relationship of the brand awareness, brand liking and brand trust with the purchase intentions of the gold loan customers. Furthermore, the study also tries to understand the important factors that lead to purchase decision of a gold loan.

CHAPTER 1
INTRODUCTION TO RESEARCH

INTRODUCTION Advertising is defined as the art of positioning and creating brands and persuading consumers to buy them through messages in mass media or personalized media that is gaining much attention these days. It is also the means of informing as well as influencing the general public to buy products or services through visual or oral messages. A product or service is advertised to create awareness in the minds of potential buyers. Some of the commonly used media for advertising are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As a result of economic liberalization and the changing social trends advertising industry has shown rapid growth in the last decade. Advertising is one of the aspects of mass communication. Advertising is actually brand-building through effective communication and is essentially a service industry. It helps to create demand, promote marketing system and boost economic growth. The final cost of advertising for any company includes creative and agency costs; local branding and marketing efforts; catalogs, brochures and other printed matter; the creation and maintenance of web sites and myriad other components, in addition to expenses for media. Thus advertising forms the basis of marketing.

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OBJECTIVE
To study the relationship of brand awareness and purchase intentions To study the relationship of brand trust and purchase intentions To study the relationship of brand liking and purchase intentions To understand the most important factor for choosing a gold loan

SCOPE OF STUDY
The study was conducted among the general public customers within Cochin.

LIMITATIONS OF STUDY
Time limit Sample size is small Rural or semi urban areas were not covered

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RESEARCH METHODOLOGY

Chapter 2

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Research Methodology
This research consists of primary and secondary research. Primary Sources
Face-Face interaction with customers (questionnaires).

Secondary Sources
Books Internet Articles Magazines News papers

Sampling technique
In this project the target population is the general public of Cochin who are associated with gold loans.The research was carried out through non probability sampling technique. Convenience sampling technique in specific out of the non probability sampling technique .

Sample size

In order to get an clear understanding of customers I opted for a sample size of 30 units spread across the city.

Sample Frame
Area Sampling -Cochin

Tools for Data collection

The questionnaire that has been drafted for this research is a structured questionnaire. It includes various scaling techniques like numerical scale and constant scale.

TYPE OF RESEARCH Descriptive hypothesis DATA ANALYSIS TOOL SPSS 17.0

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CHAPTER 3
LITERATURE REVIEW

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Evolution of advertising industry There are four very influential inventions that have shaped the media and thus the advertising industry - the printing press, radio, television and the Internet. The printing press made the wide dissemination of information with words on paper possible, mainly advertisements in newspapers and magazines. Selling material had to be created and advertising agencies were born. The first advertising agency, Volney B. Palmer, was opened in Philadelphia in 1841. By 1861 there were 20 advertising agencies in New York City alone. Among them was J. Walter Thompson, today the oldest American advertising agency in continuous existence. Radio became a commercial medium in the 1920s. For the first time, advertising could be heard, not just seen. Soap operas, music, and serial adventures populated the new medium, and as radios appeared in virtually every home in America, sales of products advertised on the air soared. Advertisers rushed to write infectious advertising jingles, an art form that still has its place in the advertising repertoire of today. Then television changed everything. Although TV was invented in the 1920s, it didn't become a mass commercial medium until the 1950s when the prices of television sets began to approach affordability. Print and radio had to take a back seat because, for the first time, commercials were broadcast with sight, sound and motion. The effect of the television on the advertising industry and the way products were sold was remarkable. Advertising agencies not only had to learn how to produce these mini movies in units of 30 and 60 seconds, they had to learn to effectively segment the audience and deliver the right commercial message to the right group of consumers. Cable television was the

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next great innovation, offering a greater variety of channels with more specific program offerings. That allowed advertisers to narrowcast. Before the advent of cable television, the networks attempted to reach demographics by airing at different times throughout the broadcast period. Soap operas were broadcast during the day to reach women, news in the evening to reach an older target audience. Cable television, on the other hand, brought with it channels like MTV that catered to young music lovers, ESPN, for (typically) male sports fans, and the Food Network, for people who love cooking (or at least love to watch others cook). These new advertising channels were delightful for advertisers who wished to target certain audiences with specific interests, though less so for the networks who saw their share of ad revenue dwindle. In the 1880s a new era of advertising began: New methods of manufacturing led to greatly increased outputs and decreased costs for the producers of consumer goods. The products at that time could be packaged at the plant itself. Moreover, the telegraph network came into existence and a network of rail - roads, had also crisscrossed the continent. All these were the factors, which allowed a nation-wide distribution and nation-wide advertising. Advertising plays a significant role in today's highly competitive world. Whether its brands, companies, personalities or even voluntary or religious organizations, all of them use some form of advertising in order to be able to communicate with the target audience. Broadly speaking the history of advertising might be divided into six periods or stages as follows: a) Pre-printing period, prior to the Fifteenth century. b) . Early printing period from the Fifteenth century to about 1840.

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c) Period of expansion, from 1840 to 1900. d) Period of consolidation from 1900 to 1925. e) Period of scientific development, from 1925 to 1945. f) Period of business and social integration from 1945 to the present.

a) Pre-Printing Period: The 'Town crier' was the first means of supplementing sign advertising during the Pre-printing period. The 'criers' had charters from the Government and were often organized in a sort of union. Their numbers were usually restricted. In the province of Berry, in France, in the year 1141, twelve 'criers' organized a company and obtained a charter from Louis VII giving them the exclusive privileges of town crying in the province. The Power of commercial criers grew until they were able in some instances to obtain an edict from the ruler of the land forcing shopkeepers to employ a 'crier' b). Early Printing Period: The invention of the printing press and the revival of learning meant much to business. It had led to the production of advertisements in large quantities for wide distribution. The first printed English advertisement was a 'handbill' or poster announcement written by William Caxton in 1472.

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c). Period of Expansion: This period includes, roughly, the sixty years between 1840 and' 1900. It was during these six decades that the great changes, which had a vital influence on the business of advertising, were witnessed in the United States. By 1840, railroads in the United States were recognized as an efficient means of transportation. This had led to the broadening of markets and had resulted in an increase in the number of advertisements in magazines, which served large territories. The growth in the numbers and the circulation of magazines were mainly due to the development of rapid and long distance transportation. This parallel movement is rather striking, while it does not prove a casual relationship between the growth of advertising media, it is logical to long distance transportation and that the increase of believe

transportation facilities did have a definite influence on the rapid rise in the number of publications. In fact, the increased revenue from the sale of advertising space encouraged a growth in the number of publications and their wider circulations. Advertisements during that period were mostly trade advertisements in nature, announcing the arrival of shipments of Coffee, Tea, Silk cloth, etc. Advertisements at that time were also designed specially for dealers in consumer goods as well as grocery or dry goods. Advertisements were mostly handled by printers and publishers of newspapers, who used to sell advertisement space to procure necessary finances for their survival and growth. In 7893 more than half of over a hundred firms spending more than fifty thousand dollars annually on advertising were patent medicine manufacturers. But only 20 years later, many of these firms were not

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patent medicine manufacturers anymore but manufacturers of food, soap, cosmetics and automobiles. These firms began to market their packaged goods under various brand names. Some of the first brands were of the firms like Ivory, Colgate, Wrigley and Coca Cola, etc. Previously household products of daily use like milk, sugar, soap, rice and candles had been sold in the neighborhood shops in bulk packages. Emergence of consumer market during mid Nineteenth century gave rise to the modern marketing system, which had led to the emergence of consumer advertisements on the scene in late nineteenth century.

d). Period of Consolidation: This period stretches over a period of 25 years from 1900 to 1925.1n 1911 a crusade against the ranker types of untruthfulness in advertising was launched in the united states". Printers Ink. Inc., the Curtis Publishing Company and other organizations led the fight to reduce or eliminate the use of gross exaggeration, false testimonials and other forms of misleading and untruthful advertising1'. It was also during this period that trust - busting, expose and reform programs became popular. It is not surprising that The Associated advertising was caught up in this clean up movement.

Advertising clubs of America helped in launching a campaign to promote truthful and ethical advertising. Consequently, several codes for truth in advertising were devised. Probabh the most famous was the Printers Ink. Statute, published in 1911. It was a model that indicated the types of activities that were considered ethical, unethical and questionable.

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The establishment of the Audit Bureau of Circulations in 1914 was another move for fewer untruths in the field. This Bureau sewed to validate the circulation statements made by publishers. This was a measure for self preservation but it sewed to consolidate the gains made in the heyday of publication and advertising growth. By the advertisers end of this period many had established their own market and consumer research

departments and specialized research firms had been organized to make independent and unbiased investigations for advertisers and media. This increased the quality of advertising strategy and the performance as well as benefits rendered to consumers. The advent of Radio in 1920 marked a remarkable development in the advertising world. The initial stages excluded the use of radio for advertising; only to be included two years later with the W.E.A.F. broadcasting station in New York selling radio time to producers. Thus during 1920s advertisers and their agents had come to realize the possibilities of radios as a means for attracting the prospective consumers of various products and services. With its drama and immediacy, radio could convey their messages directly to the consumers who would not need to purchase a publication or even need to be literates. By the mid 1920bs, advertisers' sponsored programmes on Radio were a common feature in the US. Only to be joined by T.V. e). Period of Scientific Development: This period saw the application of the scientific methods to resolve the problems of advertising. Knowledge was systematized to a much greater degree than before; and facts were observed, recorded and classified through the application of various scientific devices. There were a few "radical"

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advertising men who were so bold as to suggest that advertising be subjected to tests to prove or disprove its ability to work the wonders claimed for it. Not until the depression, starting in 1929, did these men get much of a hearing. But with advertising appropriations receiving liberal cuts, both professional advertising men and advertisers set out to test the effectiveness of advertising as a selling tool. Consequently, emphasis began to be placed on consumer research with a view to making advertisements more meaningful and ethical. Efforts in this direction include the Audience Research Institute formed by A.C. Nielson and George Gallup in order to evaluate the advertisements on psychological basis, which had enabled the businessmen in improving considerably the quality of advertisements. During this period of scientific development serious attention was given by many agencies and organizations to various methods for testing the sales effectiveness of advertising strategy, media and copy. This was a new philosophy in the sense that it had meant subjecting the work yardsticks. of the creative man, the artist, the person who depended upon his own insights and intuition to some kind of performance

f. Period of Business and Social Integration: The post war years were characterized by prosperity in advertising. In the 1950s came television which developed fast to the advertising-media .The growing popularity of T.V as an important media of mass communication and recreation had contributed greatly in bringing about this situation and had also provided the much needed momentum to the advertising business. This,

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in its turn, had led to a host of American companies to start sponsoring T.V programmes. These advertisers could demonstrate the use of their products and services and present well-known figures to praise such products and services. They also could arrange emotions through television. With the passage of time, advertising assumed an important position as a means of mass communication in Industrial societies. It not only generated greater sales but also had played an active role in boosting the images of companies. The increased recognition which the advertising organizations attained as a part of the total fabric of the society had enabled such organizations all over the world to establish themselves as an integral factor of vital information in the dissemination pertaining to various products and

services beneficial to

the society. Advertisements also have become a

common medium through which churches, political parties, labour groups, trade associations and the ordinary people communicate their ideologies, ideas and concepts to many of the publics making up the total society. Advertising has also become an institution of persuasion to promote such social and economic values as safety, health, education benevolence. Liberty, democracy, free enterprise and tolerance. The salary structure in advertising is quite high and if you have the knack for it one can reach the top. It is an ideal profession for a creative individual who can handle work-pressure. Today, new areas are emerging within advertising like event management, image management, internet marketing etc. Event management is wherein events are marketed; Image management is wherein a particular profile of an individual or an organization is projected. Internet marketing has also brought about a lot of changes in advertising as Internet means that one is catering to a select group of audience rather than a mass audience.

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International scenario
The world advertising industry is characterized by a large number of small and medium sized advertising agencies that operate primarily in one country and by a small number of very large advertising agencies with operations in many countries. These agencies have developed extensive networks of offices throughout the world in order to coordinate the advertising process in all the countries where their clients do business. These networks often include both wholly-owned subsidiaries and formal relationships with local advertising agencies to establish a presence in new markets, particularly in emerging markets. The advertising industry enjoyed a rebound in 2010-11, as significant economic growth boosted emerging nations, and the U.S. and other mature nations found themselves on firmer ground. Analysts at Magna estimated global advertising revenues at $427 billion in 2011 and $449 billion for 2012 (an increase of about 5%). Media-buying firms, TV broadcasters and radio and billboard companies are making positive noises about the future. Print advertising looks more promising and several US magazines saw ad pages increase quite dramatically. Worldwide over $400 billion is spent on advertising. Approximately half of that amount is spent in the US and the other half outside the US. The bulk of expenditure outside the US takes place in Europe and Japan, although Brazil, Canada, Mexico, and Australia are also important advertising markets. Outside of these markets, China is the next largest advertising market and is also growing rapidly. The future of the

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advertising industry is not in doubt, things will get better, but only companies that have positioned themselves correctly will be able to capitalize on the upswing. To do this, many firms are looking toward technology as the point of departure for huge returns. The convergence of the Internet with television, the growth of wireless communication, and the increasing use of digital video recorders all offer new avenues and challenges for advertisers. Further consolidation across national borders is also expected as advertising firms try to deliver global capabilities in an increasingly competitive market. In international market the process of communicating to a target audience is more complex because communication takes place across multiple contexts, which differ in terms of language, literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying different appeals. A message may, therefore, not get through to the audience because of people's inability to understand it (due to literacy problems), because they misinterpret the message by attaching different meanings to the words or symbols used, or because they do not respond to the message due to a lack of income to purchase the advertised product. Media limitations also play a role in the failure of a communication to reach its intended audience. The world advertising industry is characterized by a large number of small and medium sized advertising agencies that operate primarily in one country and by a small number of very large advertising agencies with operations in many countries. These agencies have developed extensive networks of offices throughout the world in order to coordinate the advertising process in all the countries where their clients do business. These

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networks often include both wholly-owned subsidiaries and formal relationships with local advertising agencies to establish a presence in new markets, particularly in emerging markets. In an effort to establish greater control over their advertising, many major advertisers are consolidating all their advertising with one agency. For some major advertisers such as IBM and Citibank, this represents annual advertising expenditures in excess of $500 million worldwide. The majority of these large advertising agencies are headquartered in the US. Of the ten largest advertising agency groups, seven are headquartered in the US, and one each in the UK, France and Japan, although WPP, the British agency holding company, is made up of two large US-based agencies. With the exception of Dentsu, the Japanese agency, most other agency networks generate the majority of their revenues outside their home country. The largest agency group, Omnicom, places over $37 billion of advertising for its clients around the world and derives half its revenue from outside the US. Omnicom has 891 offices in over 85 countries and employs 35,600 persons worldwide (57 percent work outside the US). US-based advertising agencies and their subsidiaries are responsible for most of the advertising throughout the world. Worldwide over $400 billion is spent on advertising. Approximately half of that amount is spent in the US and the other half outside the US. The bulk of expenditure outside the US takes place in Europe and Japan, although Brazil, Canada, Mexico, and Australia are also important advertising markets. Outside of these markets, China is the next largest advertising market and is also growing rapidly.In the view of the advertiser the primary objective of advertising is to sell products or services. In achieving this primary goal, there are often profound secondary

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consequences. Advertising exerts a formative influence whose character is both persuasive and pervasive. Through the selective reinforcement of certain social roles, language and values, it acts as an important force fashioning the cognitions and attitudes that underlie behavior not only in the market place, but also in all aspects of life. In an international setting, advertising has an important social influence in a number of ways. First, much international advertising is designed to promote and introduce new products from one society into another. Often this results in radical change in life-styles, behavior patterns of a society, stimulating for example the adoption of fast food, casual attire or hygiene and beauty products. International advertising also encourages desire for products from other countries, it creates expectations about " the good life", and establishes new models of consumption. Advertising is thus a potent force for change, while selectively reinforcing certain values, life-styles and role models. Often the symbols, ideals and mores that international advertising portrays and promotes are those of Western society and culture. Through the reach of advertising, brands such as Levi's, Nike, Marlboro and McDonalds are known by and have become objects of desire for teens and young adults throughout the world. Similarly, images and scenes depicted in much international advertising are either Western in origin or reflect Western consumption behavior and values. Even where adapted to local scenarios and role models, those shown often come from sectors of society, such as the upwardly mobile urban middle class, which embrace or are receptive to Western values and mores. At the same time, international advertising also acts as an integrating force across national boundaries. It disseminates messages using universal symbols and slogans, and establishes a common mode of communication

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among target audiences in different parts of the world. At the same time, multicultural values are reinforced by advertisers, who adopt images incorporating peoples of different nations and diverse cultural backgrounds, as, for example, the Colors of Benetton campaign or the British Airways "Peoples of the World" campaign. The impact of such campaigns is further reinforced by the growth of global media such as Star TV, CNN, MTV or print media that target global audiences worldwide. Consequently, while, on the one hand, international advertising can be viewed as a colonizing force propagating Western values and mores throughout the world, it is also an important force integrating societies and establishing common bonds, universal symbols and models of communication among peoples in different parts of the globe. The top five advertising companies in the world are: a) Omnicom Group: b) WPP Group c) Interpublic Group d) Publicis Group e) Dentsu Group

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Indian scenario
The Indian advertising industry is talking business today. It has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Advertising industry is a rapidly growing industry and determines to a considerable extent the gross domestic product of any country. The advertising industry besides functioning as an intermediate between the manufacturers and the customers plays an important role in the economy of the country. This industry necessitates investment for funding different resources. One cannot measure the degree of development by interpretation of inputs in the economy which yields some production. In the event when consumption levels far exceed than what is reckoned, this is not a means of triggering or bringing about transformation in the culture, society or development in human resources or economy. What the time demands is optimum and efficient execution of advertising projects by involving appropriate technology along scientific lines. Indian advertising industry with an estimated value of RS 13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of

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advertising. Indian advertising industry is well recognized all over the world for its creative output and high quality advertisements. The performance of Indian agencies and advertisements and marketing campaigns has been well noted and awarded at various global stages such as Cannes Lions. The industry is continually evolving to give better returns to clients and memorable ads for the target audience. What the Indian ad industry has managed to achieve become more significant if you realize the challenges before it. The industry caters to a really huge populace, though the real challenge lies in addressing the stunning diversity. The ads have to cater to the different tastes and preferences of hundreds of languages, dozens of religions, diversity of regions, age groups and castes, and churn out advertisements that appeal to all of them, without offending any of them. Perhaps it is because of this reason that Indian oriented campaigns of even giant MNCs are handled separately by India based agencies and have largely localized content. Indian advertising industry with an estimated value of 13,200 cores has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mind- boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies in the country too have taken a leap. They have come a long way from being small and medium sized industries to become well-known brands in the business. Mudra, Ogilvy and Mather are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to

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advertising as a tool to cash in on lucrative business opportunities. Growth in business has led to a consecutive boom in the advertising industry as well. The Indian advertising handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, branding and public relation services. Indian advertising has had many changing faces. The pre independence advertisements were mostly about ladies goods, gents' clothes, travelling, restaurants and hotels and entertainments for the British people in India. Motor cars, electricity and lifts in houses were considered to be the items of luxuries in those periods. Many of the early advertisements were about hotels ,four wheelers, tea, gramophones, cotton goods, tailoring shops, etc., and As against 14 Advertising agencies in 1914, there were 45agencies in 1944, indicating over a threefold increase in the number of agencies. However, the gross annual media billing was just Rs. 5 core. This indicates that the initial stages were marked by a slow growth in advertising agencies in the country. Among the reasons cited for such a sluggish growth were the unfavorable attitudes of companies towards advertising, limited market, slow pace of industrialization and lack of competition. Their target audiences were the British people in India, the princely families and the people from the upper strata of the society. It is only after independence and the abolition of the princely order that a new -born middle class received attention of advertisers. The Indian market is also unique in the sense that TV advertising is actually increasing and set to overtake print advertising over the coming years.

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Leading ad planners believe that the Indian audience still loves watching TV, and is very receptive to TV ads. In addition, the TV ads are very audio visual in nature, and can easily overcome any barriers of illiteracy, which is a major impediment for print ads in India. Another notable trend on a global level that still evades the Indian advertising industry is the mass migration of ad spending to online and digital media. In highly developed ad markets such as US and UK, the ad spending on digital and online media has increased exponentially, and has actually exceeded ad spending on print advertising. Now online ad spending constitutes almost 15% of overall ad spending in these markets. In India, online advertising are still to take off. This trend will continue for at least the medium term, unless something on the lines on the mobile phone revolution happens, and more Indian get access to reliable internet access. Advertising agencies in the country too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Keeping in mind the current pace at which the Indian advertising industry is moving, the industry is expected to witness a major boom in the times ahead. With all this, there is definitely no looking back for the Indian advertising industry that is all set to win accolades form the world over. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well.

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The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services. Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. With all this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over. Therefore for more information on Indian advertising, advertising agencies, marketing and advertising.

The top 5 advertising companies in India are:a) Ogilvy and Mather Limited b) J Walter Thompson India c) Mudra Communication Pvt. Ltd d) FCB-Ulka Advertising Ltd e) Rediffusion-DY&R

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State scenario
Before 1890, Advertisements in this region were mainly in the forms of Government notifications. During that period the people were informed of such notifications put by the authorities through the beating of drums. In addition to the Government notifications and the proclamations of the king, advertisements of Pharmaceuticals, Watches, Religious books, Electric galvanic rings and lockets had appeared in the newspapers. Dailies were not popular during that period and the newspapers at that time had been brought out without any regular periodicity. Rates of advertisements, both the rates per insertion and for a long duration, were also published in these newspapers. Advertisements appeared in the newspapers during that period were also in the form of descriptive write ups. Majority of the advertisements appeared in the newspapers between 1901-1910 were concerned with Ayurvedic medicines, Silver and Nickel Watches, Fountain pens, Chitty Companies and Rubber companies, which had a significant influence on society at that time. Advertisements of medicines concentrated mainly on diseases that were common to little children, Medicines for the health of pregnant women, purgatives and medicines that can improve one's facial glow Advertisements on various types of watches and fountain pens had usually appeared in newspapers along with their pictures. Details regarding the issue of share of companies like Travancore Brotherhood Company, Kollam were also put as advertisements in newspapers in 1920. In this advertisement there was reference to the total number of shares, its face value, how the amount would be collected.

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Imported seeds, optical, Harmoniums, Violins, Bicycle, Alarm clocks and Time pieces, Second hand Type writers, etc., where the main items that covered a substantial part of the advertisement spaces of the newspapers during the period 1921-1928. By this time advertisements on films also began to appear in the newspapers and magazines published from the State Advertisements of Jewelers, like the Unniyattil Kuttanmenon Jewellers, Trichur, Eswaramenon Jewelers, Kozhikode and Trissur also came up during this time. Many of the advertisements during 1931-1940 were either descriptive or informative type Advertisements about Hotels advertisements making awareness to the public such as the advertisements of insurance Companies like Star of Travancore Life Assurance Co. Ltd, Thiruvalla Associated insurance bank Co. Ltd, Kottayam Pioneer Insurance and banking Co. Ltd and those inculcating the habit of saving among the people such as State bank , Nedugadi Bank, Pala Central bank were the main categories of advertisements capturing the attention of the readers of the newspapers and magazines during this period. Besides these, advertisements of Jewelers, Furniture marts, Bookstall, Studios, Toilet soaps and Vegetable oils like Dalda and the producers of Ayurvedic medicines like Kotackal Dhanvanthary Vaidyasala Arya Vaidyasala and had appeared frequently in newspapers and

magazines during this period. In addition to the advertisements mentioned above, during 1941-50 advertisements of some of the newly emerged banks such as the Pala Commercial Bank, Catholic Bank of India Ltd and South Indian Bank Ltd. Allopathic Medical shops , Malayalam Dictionary, Science books , Watch dealers, Radios (Philips and Murphy), Lamps (Ever shine Lamps ), Hindustan Umbrella factory, Automobile Workshops, Printing Press,

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Fertilizers, Cameras, Textile shops. Washing soaps (Swan 58 soaps), Toilet soaps (Pears, Lux, Lifebuoy, sunlight, Rexona. Godrej etc.),Tea, Foot wares(Bata), Advertising agency ( Associated Advertisers, Kottayam) , FACT, National saving scheme( National Defense Savings Certificates) , Films ( like Sasidharan ) . Instead of giving long sentences and elaborate statements, advertisers during this period used to advertise their products and services wit big pictures, catchy words and captions. Advertisers of consumer non-durables especially Toilet soaps (like Lux Toilet soap) had started giving advertisements portraying beautiful ladies besides offering rare, vivid photos highlighting the dressing patterns of Punjabi, Madrasi, Malayalee, Bengali, Marwari and Marathi women with a view to motivate the female households to buy this product Several companies had adapted these similar styles and strategies during that period while advertising products in the print media. During 1948-1950, Malayalam magazines and periodicals like 'Naradan', "Vikatan, were flooded with a variety of advertisements ranging from the advertisements of stationary shop, Gingally oil. Health tonics to Gems and Jewels Advertisements of Ayurvedic Pharmacies, Ayurvedic medicines, Book stalls, Textiles. Ayurvedtc toilet soaps (like Chandrika and Sasindra) ,Other Toilet soaps (such as Pears, Lux, Lifebuoy, Rexona, Godrej Pyary), Watches (Omega) , Coffee houses, Vegetable Oils (Dalda, Crown mark gingerly oil .etc.). Lamps (ever shine lamps). Tea. Banks(such as the Catholic Syrian Bank, South Indian Bank), Radio sets, Jeweleries, Hotels, Films, Dairy products, Studios, Advertising Agencies and Electro plating their

35

works assumed prominence among the advertisements that had appeared in the news papers and journals between 1951 -1960 .There had also been a significant increase in the number of advertisements during this period when compared to the earlier periods. Some of the advertisements had also started appearing in the newspapers in multi colours. A large number of Cine exhibitors had emerged in Kerala in the 1960s necessitating wide advertisements for films in various forms to attract more and more one viewers to the cinema theatres. This had led to the emergence of certain categories of artists and specialists well versed in the designing and publication of Cine Advertisements. In certain regions of the State the Cine Advertisements were exhibited by displaying such advertisements in the night on square boxes with hurricane lamps / petromaxes put inside the boxes .People were usually hired for carrying the same on head loads to exhibit the same in public places and at places where people were gathered during ceremonial occasions. Handcarts decorated with big cinema posters on either side of the carts were usually pulled on the roads in various residential areas with the help of hired labour to attract the attention of the people from each locality People were informed of the arrival of a new film by means of Wall Posters notices and beating of the drums. Persons deployed by the advertisers and cine exhibitors to advertise the same also carried posters mounted on frames affixed with wooden poles, accompanied by drumbeaters. Film advertising, extending for a short time span of two to three minutes also became popular in Kerala by the end of this period.

36

Advertisements of Malayalam films released in the beginning of 1960s had in had any technological superiority when compared to the present day advertisements. The art of advertisement assumed a new dimension due to the gradual advancement in the spheres of processing, printing, lithography, off set printing and photography, Entering of new artists, especially in the field of Malayalam film advertisements had made spectacular strides in the Malayalam advertisement scenario. Pioneer in this field was Sri.S.Appukuttan Nair (known as S.A). The advertisements which he designed for the Malayalam film Chemmeen had elevated him as an international fame for the same'". He was the person who had designed the maximum number of cine advertisements in Kerala during that period. Later, artists like Salam, Kurian, etc., had followed his style in designing the cine advertisements. By 19711980 in addition to the advertisements mentioned above, advertisement of biscuits, health drinks, baby soaps, ayurvedic toilet Soap like Radhas and Medimix ayurvedic soaps, paints, etc , had started appearing , During 1980s cosmetic items had attracted the attention of the women folk through the wide publicity given by the manufacturers of such items in the women's magazines like Vanitha,Grehalakshmi,Women's Era, Femina and other Malayalam magazines like Manorajyam, Manorama, Mathrubhoorn Mangalam, Nana. Keralasabdam, Kalakaumudi and Kurnkumarn, which had been gaining wide popularity among the households of Kerala during that period. Educated women of Kerala who had been going through these magazines had been tempted to buy many of the cosmetic items appeared in these magazines. The advertisements of these products have been able to create a wide publicity and increased consumption of these products in the State. During 1988 Video cassette recorders have started becoming popular in Kerala. Later,

37

Video parlours had mushroomed in different park of the State. Consequently, video cassette shops and video cassette recording studios Had also emerged to cater to the needs of the people. Viewing of video cassettes during leisure time has become one of important entertainments of the households of Kerala during this period. There was also a high demand for video cassettes in Kerala at that time. Several advertisers had started exhibiting the advertisements of these products through this media along with the video films and songs. The development in the field of Agriculture and Industry, improved infrastructural facilities, the coming up of new educational institutions, Development of Banks (Branch expansion), the revival of the co-operative sector, growth of head Centers, high rates of remittances by Keralities working abroad the nuclear family system, etc. have made the State's economy to a consumerism economy. The improvement in the economic status and the aspiration for attaining a high standard of living have necessitated the purchase of severa costly consumer non durables and items of luxuries by a majority of the households in Kerala. The emergence of banks and other financial institutions offering various credit schemes at low rates of interest and easy methods of Remittances have further increased the consumption propensity of the people of Kerala to a great extent. All these have led to a growth in the sales of new products, which were widely advertised through newspapers, journals, radio and TV. A stage has come in Kerala whereby it is realized that establishments and products have existence only through advertisements. Consequently, cut

38

throat competition among advertisers, advertising agencies and among various media for their survival. Advertising agencies and print and electronic media had started canvassing advertisements even without enquiring the genuineness of advertisements and integrity of the advertisers. It had resulted in the frequent appearance of misleading advertisements of Teak, Manjium, and Goatl Sheep Investment Schemes. Real Estates - inside and outside Kerala, Blade companies, etc. During that period, a large number of individuals, craving for huge returns for the investments, got attracted by such misleading advertisements of innovative business ventures had lost their savings in. The various rules and regulations formulated by the Government proved to be a failure in safeguarding the interests of the investors in this regard. Due to the progress in the IT sector during 1998-99, several companies and firms in Kerala, especially those in the fields of Tourism, Ayurvedic medicines, Education, Banking, etc., had come out with Internet based advertisements. Increase in the circulation of newspapers, increase in the number of advertisers, the opportunities provided by electronic media, competition due to globalization, channel wars, added importance given to the consumers, etc., had enhanced the pace of developments in the advertising industry of Kerala during that period, During 2003 several small, medium and largescale firms and companies started introducing various innovative advertising strategies. These include supplying of calendars to the pilgrims with the pictures of Gods and Goddesses; offering a product of the company at free of cost to the consumers while purchasing another product of the same company; sponsoring of festivals; supplying beautiful cards with the

advertisement of products on the one side and with the picture of God /

39

Goddess on the reverse side; sponsoring of bus tickets ;sponsoring a full programme in TV; arranging many gift schemes in co-operation with the leading Malayalarn dailies; arranging many gift schemes by conducting Quiz Programmes: offering gold sovereigns and gift packages sponsored by advertisers to the winners of different programmes on the Malayalam TV channels; supplying fans made of papers in alluring colours and designs with the advertisements; Advertisernent Tags, containing general financial and personal loan schemes of private financial institutions, put or) parking Vehicles to attract the personal attention of prospective consumers; sponsoring and exhibiting banners and posters; etc. Another remarkable trend in the advertising arena of Kerala, during this period, is the publication of two issues of the same dailies and periodicals of the two prominent Malayalam newspaper groups namely, 'Malayala Manorama' and 'Mathrubhumi. With different contents, due to the flooding of advertisements. These newspaper groups have brought out many more novel strategies in their attempts in grabbing more advertisements and for enhancing their circulation. The subscribers of Malayala Manorama' daily has been trying their level best to attract the readers by presenting a game called 'Manorama Swarna Thambola'. The game is sponsored by Joy Alukkas Group of Jewelers. Those who win the game are offered with gold coins and several other items. On the other hand, the 'Mathrubhumi' daily has also been trying their level best as a counter retaliatory measures with the same objective by offering a 'rain of prizes' like residential flats, cars, bikes, gold coins, silk sarees, etc. These prizes are sponsored by Kalayan Silks, Southern investments, V-Guard Industries, BPL, Cuticura Talcum Powder, etc.

40

Top 5 advertising companies in Kerala are: a) Idea teams 4 ads b) Wheel-ur-ads c) Adview advertisers d) Liberty media e) Matre advertising

As the state is developing the advertising industry will witness a steady growth in the coming future and more innovative mediums of advertisings would be witnessed in the near future.

41

Key Features of Gold Loans

The key features of gold loans in the Indian context are described in Figure 5. With easy disbursals, few limits on cash usage, high LTVs and flexibility, it is easy to see why gold loans are becoming more and more popular.

Figure 1

42

Why NBFCs Are Growing ?

By virtue of their business model, NBFCs have grown rapidly over the last few years as evidenced by their increase in market share. A comparison of gold loan features across key players is highlighted in Figure 2. The key differentiators for the NBFCs as compared to the banks and cooperatives are: Quick loan approvals and disbursals, with minimal documentation. Multitude of loan options with higher LTVs. Greater accessibility due to better penetration. Non-bankable customers are also served. Better operating cost structure vis--vis banks. Convenient hours of operation. Flexibility: Provision of very small and very large loan amounts.

43

Figure 2

44

Loan Rate Comparison Across Categories

A comparison of interest rates charged by lenders across loan categories is shown in Figure 7. The comparison of interest rates shows that gold loans fetch banks higher rates as compared to home loans and car loans. Hence, this category is being targeted aggressively by banks. However, NBFCs have a much greater focus on gold loans and continue to provide attractive loan features which enable them to charge higher rates, generate higher profits and grow rapidly in a singular direction.

Figure 3

45

Risks to Borrowers and Lenders

Since lenders take possession of the gold assets in a loan transaction, in case of a theft they may not have sufficient funds to compensate all the borrowers for their loss in its entirety. This is more important for loans placed in the unorganized sector; banks/NBFCs usually have better security and insurance coverage. Furthermore, financial packages cannot compensate for the personal attachment a borrower has with the gold assets.Moreover, a sharp decline in gold prices increases the original LTV. A lender may require an immediate recovery of any amount that exceeds the original LTV ratio, but the borrower may be unable to pay this amount. Restructuring of the loan may be required in these cases. Additionally, if the value of the pledged asset declines, a borrower may be more willing to default on the loan. This poses a serious concentration risk to the lender, especially to the NBFCs that have a high exposure to gold loans and lend at high LTV ratios.The increase in gold prices over the last few years, coupled with the surge in gold loan borrowings during this period, could create a gold bubble which could burst in the event of a significant correction in gold prices. Banks/NBFCs with significant exposure to gold loans could face widespread defaults, which could adversely impact the economy.The organized sector today manages these risks through various methods such as enhanced security, insurance cover, buying gold futures, etc.

Regulatory Environment
While there are no means of controlling the unorganized sector, the organized sector of banks and NBFCs come under the purview of the Reserve Bank of India (RBI) which has norms to regulate the gold loan market.NBFCs had been traditionally disbursing gold loans through funds received from banks under priority lending for the agricultural sector. The loans under this category enjoy an interest rate discount of approximately 200 bps over the normal interest rates charged by banks. But to reduce the risk in the system, the RBI ruled in February 2011 that bank credit to NBFCs for lending against gold jewelry will not be treated as exposure to the agricultural sector. The resulting

46

higher interest rate for funds is expected to promote better lending practices by NBFCs to creditworthy borrowers. With the continued rapid growth of the gold loan market in India, RBI has started examininglenders, especially NBFCs, for possible concentration risks (i.e., risks due to a sharp decline in the prices of gold for a lender with a large exposure to gold assets pledged against the loans).All lenders are required to adhere to the KYC norms. NBFCs allegedly have not strictly followed this regulation and hence have been under the RBIs scanner for some time now.Currently, NBFCs gold loans are regulated by RBI. However, some state governments require compliance with relevant state money lending statutes. If the state governments succeed in enforcing this regulation, the profit margin of NBFCs would be further squeezed.There have been recent complaints regarding high interest rates and penalty rates charged by NBFCs. This has caught the attention of regulators; any regulatory move in this regard would impact the profit margin of NBFCs.

General terms used:

a. Brand Awareness

Brand awareness is the consumers ability to identify the brand under different conditions as reflected by their brand recognition or recall performance. Brand awareness measured as the consumers subjective perception-level of the brand. High levels of brand-name recognition are those that present the brand with a high degree of brand awareness. Brand awareness is the first and prerequisite dimension of the entire brand knowledge system in consumers minds, reflecting their ability to identify the brand under different conditions: the likelihood that a brand name will come to mind and the ease with which it does so. Brand awareness can be depicted into brand recognition (consumers ability to confirm prior exposure to the

47

brand when given the brand as cue) and brand recall (consumers ability to retrieve the brand when given the product category, the needs fulfilled by the category, or some other cues). Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales.

b. Brand Trust Trust is an important variable affecting human relationships at all levels (Rotter 1980). Therefore, whether concepts and theories from research on interpersonal relationships are used to characterize and evaluate consumerbrand relationships, trust should be analyzed as another facet of the bond between consumers and brands. brand trust is rooted in the result of past experience with the brand .Deutsch (1973) defines trust as the confidence that one will find what is desired from another, rather than what is feared. Feeling of security held by the consumer in his/her interaction with the brand, that it is based on the perceptions that the brand is reliable and responsible for the interests and welfare of the consumer. This definition is consistent with the relevant components of prior research on trust. First, brand trust involves a willingness to put oneself at risk, be it through reliance on the promise of

48

value that the brand represents. Second, it is defined by feelings of confidence and security. Third, brand trust involves a general expectancy because it cannot exist without some possibility of being in error. Fourth, it is related to positive or non-negative outcomes. Fifth, it requires to make dispositional attributions to the brand such that it is regarded as reliable, dependable, and so on. Trust on the brand is impact based, that refers to a touch which is the result of public interaction associated with brand (Esch et al., 2006). . Since interactions are relationship over time. Therefore one more construct has been included that indicates this interdependence: attachment towards the brand. Only if a brands outcome is a satisfied customer and is trusted by the customer then there will be attachment that can beobservable (Berry, 2000)

c. Brand Liking Brand liking is defined as an overall positive evaluation of a brand. In a branding context, liking refers to the positive attitudes consumers hold in memory towards a brand (Arnould, Price, & Zinkhan, 2005). The attitude, which can be positive or negative, is determinant of the brand evaluation and decision making (Aaker, 1991, 1996;Keller, 1993). Therefore, liking is crucial in influencing consumer behavior. The claim is further supported by a study conducted by the Advertising Research Foundation. Brand liking is a competitive advantage since it is not connected to a specific feature of the brand but instead represents the overall feelings towards the brand (Aaker, 1991). Studies have shown a positive relationship between the number of brand associations and brand liking (Ibid). Therefore it is favorable to have a

49

large number of brand associations in memory because it makes it easier for the consumer to recall a particular brand node (Krishnan, 1996, p. 392). In a cognitive neuroscience perspective liking is a sign of an underlying emotional state (Gordon, 2001). Pioneering neurologistsBechara and Damasio (2005) term emotions as somatic markers. Somatic markers are unconscious emotions but can sometimes lead to consciously experienced feelings. Thus, these somatic markers will guide peoples emotions and feelings and may sometimes lead to unconsciously driven decision making (Ibid). The kind of decision making where both unconscious emotions and conscious reason are involved is termed as affective (Arnould, Price, & Zinkhan, 2005). This implies that consumers make decisions based on what feels right or on a gut feeling. This gut feeling can be identified as the aforementioned somatic marker. That is an unconscious and embodied attitude (liking) surfacing to consumers consciousness via a feeling that may direct liking and decision making. This affective type of decision making shares strong similarities to Nobel laureate Daniel Kahnemans (2006) proposed generic mode intuitive thinking and deciding. Intuitive thinking is identified as spontaneous, effortless and without conscious thought or computation. Further, Kahneman and professor Amos Tverskys (1981) work mapped out bounded rationality. Cognitive neuroscience scholars Berridge & Winkielman (2003) take this a step further and argue that positive affective reactions can be elicited unconsciously without a persons subjective awareness of it. Further, they suggest that subliminally induced liking can influence later consumption behavior (Ibid). This claim indicates the existence of completely unconscious liking that may drive decisions which we are unaware of and suggest that many decisions are emotionally biased and people make rather irrational

50

choices. Nonetheless, studies on patients with brain damage reveal poor decision making when conscious reasoning systems are damaged, but unconscious emotional systems still are intact. The same occurs if emotional systems are damaged, but reasoning systems are intact. Thus the separation of emotion and reason is misleading. Instead of two separate systems they should be seen as a partnership (Zaltman, 2003).

d. Purchase intentions :

Purchase intention is a plan to purchase a particular good or service in the future. It can be defined as a measure of the claimed level of future consumption of a product or service by target customers who almost invariably overstate their subsequent purchase behavior. A consumers attitude and assessment and external factors construct consumer purchase intention, and it is a critical factor to predict consumer behavior (Fishbein & Ajzen, 1975). Purchase intention can measure the possibility of a consumer to buy a product, and the higher the purchase intention is, the higher a consumers willingness is to buy a product (Dodds, et al., 1991; Schiffman & Kanuk, 2000). Purchase intention indicates that consumers will follow their experience, preference and external environment to collect information, evaluate alternatives, and make purchase decision (Zeithaml, 1988; Dodds et al., 1991; Schiffman & Kanuk, 2000; Yang, 2009). Chi, et al., (2009) proposed that an advertising endorsers popularity, expertise, and attractiveness can appeal consumers eyesight in a short time

51

and increase purchase intention. Anand, Holbrook, and Stephens (1988), and Laroche, et al. (1996) also testified that advertising endorsers exposure rate can change consumer preference and attitude and promote purchase intention. Advertising endorser can utilize TV commercials or Newspaper or magazine advertisings to enforce a products exposure rate and consumers brand attitude and knowledge to elevate purchase intention (Miciak & Shanklin, 1994). MacInnis, et al. (2002) considered that endorser marketing can give an endorsed product a brand new image and advance consumer

purchase intention. Moreover, consumers brand attitude and purchase intention will be higher when a product has high preference image and familiarity (Kamins & Marks, 1991; Laroche, et al., 1996). Wang (2006) used brand image as independent variable, product category as moderator, and purchase intention as dependent variable and found that the higher the brand image is, the higher the purchase intention is. Fournier (1998) discovered that if a brand provides product functions that meet consumers need, consumers will produce psychological associations and an irreplaceable relation with the brand which they will subjectively maintain interaction with the brand and raise their purchase intention accordingly. Furthermore, consumer purchase intention comes from consumers perception on benefits and values acquisition, and it is a important key to predict consumer purchase behavior.

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PROBLEM FORMULATION

53

i.

Title of the study

A study on the influence of Brand awareness, Brand trust and Brand liking with respect to the purchase intentions of Gold Loan customers.

ii.

Background of the study

Gold has long been a valued commodity, particularly in India where it is considered auspicious. Indian households typically have an emotional attachment and sense of personal belonging to the gold they own, which is usually in the form of jewelry, coins or bars. Thus, gold owned by Indian families is rarely liquidated unless in extreme financial need consequently, monetary value of a gold investment is rarely realized. Though gold is a highly liquid asset, it wasnt until recently that consumers leveraged it effectively to meet their liquidity needs. Lenders provide loans by securing gold assets as collateral. Until a decade back, most of the lending was in the unorganized sector through pawnbrokers and money lenders. However, this scenario changed with the entrance of organized sector players such as banks and non-banking finance companies (NBFCs) which now command more than 25% of the market. But, pledging gold ornaments and other gold assets to local pawnbrokers and money lenders to avail loans has been prevalent in the Indian society for many decades. To add on to this, the appreciation in value of gold has led to an explosion in the gold loan market. With everyone wanting a piece of this action, the organized sector is challenging the large

54

unorganized moneylenders.

gold

loan

market

dominated

by

pawnbrokers

and

iii.

Significance of the study

In recent times, the increase of buyer awareness has made buyers want to pay for their recognizable and constructive brand. Thus, it is important for businesses to create attraction in their brands to be in better position than their competitors. This is evident that the consumers disseminate and always willing to acquire a product, so here the brand awareness is always a vital factor to manipulate the buying decisions and purchase intensions. Where brand awareness is necessary for the purchase of the brand, the trust in the brand is guarantee of purchase. Brand trust plays a vital role in purchase, repurchase and switching behavior. Brand liking represents an overall liking towards the brand. Therefore these three factors are important to a customers purchase intentions. The study tries to understand the relationship of these factors to the purchase intentions. Apart from this, A study was also conducted to find the most important factor that leads to a purchase decision among all the other standards in the gold market.

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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

56

HYPOTHESIS AND ITS VARIABLES Variables:

Dependent variable : Purchase intentions Independent variable : Brand awareness Brand Trust Brand Liking

Hypothesis:

H1 H2 H3

: : :

Brand awareness is positively related to purchase intentions Brand Trust is positively related to purchase intentions Brand Liking is positively related to purchase intentions

BRAND AWARENESS

PURCHASE INTENTIONS BRAND LIKING

BRAND TRUST

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Correlation Analysis

1) Brand awareness and Purchase intentions Correlations BA BA Pearson Correlation Sig. (2-tailed) PIN N Pearson Correlation Sig. (2-tailed) N 150 .649 .000 150 1 PIN .649 .000 150 1

150

Above Fig shows the simple Bivariate correlation between Purchase Intention and Brand Awareness. The correlation analysis shows that the variable Brand Awareness have significant and positive association (r=0.649) with Purchase intention. The result of the correlation analysis provides full support to hypothesis H1 at a 0.01 level of significance. The significance value i.e. (.000) indicates a high significance level in the correlation between the variables, which means that the variable Brand Awareness is highly correlated to Purchase Intention.

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2) Brand trust and Purchase intentions

Correlations BT BT Pearson Correlation Sig. (2-tailed) PIN N Pearson Correlation Sig. (2-tailed) N 150 .578 .000 150 1 PIN .578 .000 150 1

150

Above fig shows the simple Bivariate correlation between Purchase Intention and Brand Trust. The correlation analysis shows that the variable Brand Trust have significant and positive association (r=0.578) with Purchase intention. The result of the correlation analysis provides full support to hypothesis H2 at a 0.01 level of significance. The significance value i.e. (.000) indicates a high significance level in the correlation between the variables, which means that the variable Brand trust is highly correlated to Purchase intentions.

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3) Brand liking and Purchase Intentions

Correlations BL BL Pearson Correlation Sig. (2-tailed) 1 PIN .475** .000

N 150 150 PIN Pearson .475** 1 Correlation Sig. (2-tailed) .000 N 150 150 **. Correlation is significant at the 0.01 level (2-tailed).

Above fig shows the simple bivariate correlation between Purchase intention and Brand Liking. The correlation analysis shows that the variable. Brand Liking have significant and positive association (r=0.475) with Purchase intention. The result of the correlation analysis provides full support to hypothesis H3 at a 0.01 level of significance. The significance value i.e. (.000) indicates a high significance level in the correlation between the variables, which means that the variable Brand Liking is highly correlated to Purchase intentions.

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Regression

I.

Effect of Brand awareness on purchase intentions

Model Summary Mode l Std. Error R Adjusted R of the Square Square Estimate .418 .70500

1 .649a 421. a. Predictors: (Constant), BA

Interpretation: The R square value of 0.421 shown in the above table shows that only 42.1 % of the variation in dependent variable Purchase intention is explained by the variation in the dependent variable Brand awareness.

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II.

Effect of Brand trust on purchase intentions Model Summary

Model

R Square

Adjusted R Square .330

Std. Error of the Estimate .73923

1 .578a .334 a. Predictors: (Constant), BT

Interpretation: The R square value of 0.334 shown in the above table shows that only 33.4 % of the variations in dependent variable purchase intention is explained by the variation in the independent variable brand trust.

III.

Effect of Brand liking on purchase intentions :

Model Summary Mode l Std. Error R Adjusted R of the Square Square Estimate .222 .72618

1 .475 a .226 a. Predictors: (Constant), BL

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Interpretation: The R square value of 0.226 shown in the above table shows that only 22.6 % of the variation in dependent variable purchase intention is explained by the variation in the independent variable brand liking.

Multiple regression of Brand liking, Brand trust, Brand awareness and Purchase intentions

Model Summary Mode l Std. Error R Adjusted R of the Square Square Estimate .45963

1 .523a .280 .278 a. Predictors: (Constant), BL, BT, BA Interpretation

The R square value of 0.280 shown in the above table shows that only 28.0 % of the variation in dependent variable purchase intention is explained by the variation in the independent variables brand liking , brand trust , brand awareness.

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ANOVAb Model 1 Regression Residual Sum of Squares 86.362 25.761 df 3 146 Mean Square F Sig. .000a

28.787 129.630 .222

Total 112.124 149 a. Predictors: (Constant), BL, BT, BA b. Dependent Variable: PURCHASE INTENTION

Interpretation ANOVA assesses the overall significance of the model. As p<0.05 the model is significant.

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Attributes ranked in the order of importance for taking a gold loan

Another objective of the study was to find out the most important attribute that led the customers to choose an NBFC while taking a gold loan. The questionnaire included 8 standard industrial attributes for measuring the same. The results after conducting data analysis are: Attribute Disbursal time of 3 minutes Minimum loan amount Rate of interest Repayment time limit Security Documents to be submitted Loan-to-value of gold ratio Maximum loan amount 1.86 1.56 3.1 6.7 6.493 4.786 4.18 Weighted mean 7.04

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Interpretation: From the above table it is verified that the loan disbursal time of 3 minutes has the highest weighted mean 7.04. Therefore it is the most important attribute that the customers consider while taking a gold loan. This is followed by Minimum Loan amount with a weighted mean of 6.7.

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FINDINGS AND RECOMMENDATIONS

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Findings:
Brand Awareness have significant and positive association (r=0.649) with Purchase intention. Hypothesis H1 (a) is therefore accepted. Brand awareness is positively related to purchase intentions. Brand Trust have significant and positive association (r=0.578) with Purchase intention. Hypothesis H2 (a) is therefore accepted. Brand trust is therefore positively related to purchase intentions.

Brand Liking have significant and positive association (r=0.475) with Purchase intention. Hypothesis H3 (a) is therefore accepted. Brand liking is therefore positively related to purchase intentions.

For Brand awareness the R square value is 0.421 which means 42.1% of the variation in dependent variable Purchase intention is explained by the variation in the dependent variable Brand awareness. Brand awareness is therefore positively related to purchase intentions.

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For Brand trust the R square value is 0.334 which means that 33.4% of the variation in dependent variable Purchase intention is explained by the variation in the dependent variable Brand trust. For Brand liking the R square value is 0.226 which means that 22.6% of the variation in dependent variable Purchase intention is explained by the variation in the dependent variable Brand liking.

The attribute loan disbursal time of 3 minutes ranks as the most important attribute that the customers consider while taking a gold loan . This is followed by the attribute Minimum loan amount.

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Recommendations:

From the study it was found out that Brand awareness highly influenced the customers purchase decisions. The more visible you are, greater is the brand awareness .Therefore the companies can take steps to make its brand more visible through options like In-branch branding. It was also found that Brand liking is also positively associated with future purchase decisions . Therefore the companies can take steps to improvise on the factors that contribute to brand liking Brand actions and self brand similarity. Pleasant personal interaction of the employees can contribute to a large extend in this case. The loan disbursal time of 3 minutes is the unique selling proposition of Muthoot Fincorp. This is the main reason why customers are attracted to the company. With this the company can penetrate into regional markets where pawn brokers dominate the gold loan market.

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CONCLUSION

71

Conclusion
Gold loans are among the newest class of assets which have seen rapid growth in securitization. Gold loans have become a basis for creation of new financial products such as loans for purchase of gold wherein gold is purchased on the date of the loan and held as a pledge until the equated monthly instalments are paid. This study investigates the relationship between brand awareness, brand trust and brand liking with the purchase intentions of the customers. This study notes that the brand awareness strongly influences the purchase intentions of the customers. Higher the brand awareness stronger is the purchase intentions. The study also brings light into the most important attributes that influence the purchase intentions. Since more than 75% of the gold loan market is still with the unorganized segment , the organized segment has a huge potential for growth through cannibalization of the unorganized segment.

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Bibliography : 1. Naresh K. Malhotra and Satyabhushan Dash, Marketing Research: An Applied Orientation, Seventh Edition, Pearson Education. 2. Philip Kotler, Kevin Keller, Abraham Koshy and Mithileshwar, Marketing Management, Thirteeenth Edition, Pearson Publication. 3. Kothari C. R, Research Methodology- Methods and Techniques, New Delhi, by New Age International Publishers Ltd.

Websites: www.scholar.google.com www.ebsco.com www.marketingresearch.com www.jiimsjournal.org www.group-edge.com http://articles.economictimes.indiatimes.com/2011-0603/personal-finance/29617389_1_gold-loan-goldprices-loan-size http://www.neytri.com/gold-loans-what-you-must-know/ http://thegoldwatcher.blogspot.com/2011/05/indian-gold-loanmarket-expanding.html

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http://articles.economictimes.indiatimes.com/2011-0906/personal-finance/30119263_1_gold-loans-nbfcs-personalloan http://www.thehindu.com/business/Economy/article2376650.ece http://www.muthootfinance.com/services/gold-loan.html http://www.statebankoftravancore.com/Interest_Rate_Loan.htm http://www.southindianbank.com/interestRate/interestRateDetail s.aspx?irtID=7 http://www.southindianbank.com/interestRate/interestRateDetail s.aspx?irtID=8 http://www.iob.in/Rates_at_a_glance.aspx http://indian-bank.com/rate_loan_personal_base.php http://indian-bank.com/rate_loan_agri_base.php http://www.muthootfincorp.com/faq_goldloan.html http://www.muthootfincorp.com/faq_smartplus.html http://www.zerohedge.com/news/russian-central-bank-offergold-backed-loans-or-why-spam-standardcoming-end http://www.thehindubusinessline.com/industry-andeconomy/banking/article2711896.ece

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ANNEXURE
QUESTIONNAIRE Strongly Strongly Disagree Neutral Agree Disagree Agree
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 I am aware about the benefits of taking a gold loan The first name that comes to my mind while hearing gold loan is your gold loan provider I know about my gold loan provider through Advertisements Compared to its competitors, I appreciate my gold loan provider I can recognize my gold loan provider among its other competitors. I will not deal with other financial institution if a branch of my gold loan provider is nearby. I can quickly recall the symbol or logo of my NBFC. My NBFC will deliver what is desired. The NBFC has accountability for its actions My gold loan provider is dependable My gold loan provider is reliable. Friendly brand actions are directed to all customers The representatives at my NBFC enjoyed interacting with me The representatives at my NBFC were interested while they were reviewing the product information The representatives at my NBFC treated other customers the same way, very friendly and welcoming I am confident that next time I want to take a gold loan I will approach my NBFC itself

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17. Rank the following attributes in the order of importance for taking a gold

loan :

1 2 3 4 5 6 7 8

Disbursal time of 3 minutes Documents to be submitted Rate of interest Repayment options Loan-to-value of gold ratio Security Minimum loan amount Maximum loan amount

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