CONSUMER BEHAVIOR RELATED TO GOLD STAR

FOOTWEAR BRAND IN LOCAL MARKET

A Project Work Report

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The Faculty of Management
Tribhuvan University
April, 2018
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I hereby declare that the project work the entitled A Case Study on Consumer
Behavior Related to Gold Star Footwear Brand in Local Market submitted to
the facult..................................... and is submitted in partial fulfillment of the
requirements for the award of the degree of Bachelor of Business Studies (BBS).
This project work report has not been submitted to any other university or institution
for the award of any degree.

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on Study on Consumer Behavior Related to Gold Star Footwear Brand in Local
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of Bachelor of Business Studies (BBS).

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 Endorsement

We hereby endorse the project work report entitled "A Case Study on Study on
Consumer Behavior Related to Gold Star Footwear Brand in Local Market"
submitted by ... of ...... partial fulfillment of the requirement for award of the Degree
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 Acknowledgement

I would like to express my deep gratitude to ..........

...... for allowing to carry out this project work in partial fulfillment of the
requirements for Bachelor of Business Studies (BBS).

I am extremely grateful and indebted my respected project work

supervisor .................. who in spite of his busy schedule spared his valuable
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appreciate him for supervision and inspirations to improve the quality of project
work.

I am thankful to my family members and all my friends who provided regular

inspiration and continuous contribution for the completion of project work.

Lastly, I hearty beg sorry for my any mistake and assure to take responsibility for all
comments.

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v
 TABLE OF CONTENTS
Title Page

Declaration i
Recommendation ii
Endorsement iii
Acknowledgement iv
Table of content v
List of table vi
List of figure vii
Abbreviations viii
Chapter I-Introduction
1.1 Background of the Study......................................................................................1
1.2 Introduction to Nepalese footwear industry.........................................................2
1.3 Goldstar profile.....................................................................................................3
1.4 Statement of the problem .......................................................................................
1.5 Objective of the Study............................................................................................
1.6 Scope of the study..................................................................................................
1.7 Significance of the study…………………………………………………………
1.8 Limitation of the study………………………………………………………….
1.9 Organization of the study……………………………………………................
Chapter II Observation and Findings
2.1 Data Presentation....................................................................................................
2.2 Major Findings.......................................................................................................
Chapter III-Summary And Conclusion
3.1 Conclusion..............................................................................................................
3.2 Recommendation....................................................................................................

Bibliography
Appendix
 List of Table

Table No. Name of table Page No.

1. Demographics of the Respondents 13

2. Attitudes towards Gold Star 14
3. Conspicuous Consumption 14
4. Purchase Intentions 12
5. Personal Gratification 16
6. Social Status 17
7. Low Price 18
8. Easy Access 19
9. Past Experience 20

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 List of Figure

Table No. Name of Figure Page No.

1. Conspicuous consumption 14
2. Purchase Intentions 15
3. Personal Gratification 16
4. Social Status 17
5. Low Price 18
6. Easy Access 19
7. Past Experience 20

viii
 ABBREVIATIONS

A.D : Anno Domini

AMA : American Marketing Association
ASID : American Society of Interior Designers
B. S. : Bikram Sambat
Co. : Company
LTD : Limited
MM : Merton Miller
Rs. : Rupees
WIMDR: Welingkar Institute of Management Development and
Research

ix
 CHAPTER I

INTRODUCTION
1.1 Background of the Study
Consumers' buying behavior is divergent and situational. For durable products, such
behavior got different dimensions again. To make the study simple and informative,
color television is used to represent the consumer durable markets. Television, as a
product, is getting the status of essential commodity all over the world. The potential
of TV market is indeed quite enormous. The Nepalese consumers were indifferent in
choosing the brand since a lot of close substitutes were available in the market.
However, they have changed ever since the Nepal liberalized its economy. Choosing
the right brand of television is difficult enough when there were half a dozen brands
and all of these claimed to give excellent picture quality. Marketing managers are
interested not only in the product but also the behavior of the consumers because it
gives them the right orientations for product development and positioning. The level
of consumer's satisfaction provides the scope for repeated purchases and brand loyalty
that lead to optimum profitability. This research finds that consumers' perception on
buying color television is mostly affected by the factors, such as, structural add-ons,
words of mouth, technical features, durability, ground reality etc.

Consumer is nerve centre of the modern marketing, understanding his behavior is

quite essential for efficient and effective marketing management. Customers may
state their needs, wants but act otherwise. They may not be in touch with their deeper
motivations. Nepalese consumer market is riding the crest of the country’s economic
boom. Driven by a young population with access to disposable incomes and easy
finance options, the consumer market has been throwing up staggering figures.
Marketing problem enhancing from the consumers’ behavior has a greater degree of
similarity behavioral problems relating to the consumer durables.

1.2 Profile of the Organizations

Gold Star is a revive of the old brand gold star. The demand for the Gold Star has
increased and the manufacturers started working on such products to increase their
 2

profit. Such products are the exact copy of the original product with a slight
difference which normal people (those who do not have the experience of the original
brand) could not figure out. Therefore, Gold Star are the ones which have the same
features or are slightly different from the original products or the branded products
(Eisend & Schuchert-Guler, 2006). The goods that provide the sense of originality are
known as or prestigious goods believe that these products can be distinguished by
their dimensions such as uniqueness, exclusiveness, expression and quality.

Nepal has been the market with full of Gold Star that are sold in an open market. The
products that we found in the market are even sold stating that they are high copy of
the products. Any products that are introduced in an international Market are
immediately copied through the different producer and then imported in Nepal as a
copy of the products.

1.3 Statement of the Problem

Nepal has been the market with full of Low Price Products that are sold in an open
market. The products that we found in the market are even sold stating that they are
high copy of the products. Any products that are introduced in an international Market
are immediately copied through the Chinese producer and then imported in Nepal as a
copy of the products. By doing so, the genuine products are getting a negative impact.
There has been no. of company that are doing business by establishing their official
store which has been damaged by the Low Price Products that are easily available in
the local market. Hence this study will try to analyze how customer perceived about
the Low Price Products.

 How Low Price Products determine the perception of customer against the
High Price Products?
 What are factors which affect the buying behavior of the consumer towards
Low Price Products?

1.4 Objectives of the study

The main objective of the study aims at partial fulfillment of the requirement of the
BBS level. Other major objectives of the study are as following:

 To determine the perception about the Gold Star against the original products.
 3

 To analyze the factors which affect the buying behavior of the consumer towards
Gold Star.

1.5 Rationale
It can provide platform for the further study regarding perception of customer towards

 The finding and the recommendation can be useful for the other researchers and
organizations. It can help media and policy makers to adopt better strategies.

1.6 Limitation of the Study

The main focus of the study is concentrate to evaluate the buying behavior of the
customer. Basically this study is subject to following limitation.

→ Since this study deals, mostly with product Gold Staring, the
conclusion derived from the study may or may not be applicable to
other similar company.
→ The company policy on keeping some matters confidential such as
details of the customers, their purchase history and other made it
difficult for further analyze.

1.7 Literature Review

1.7.1 Review of related Literature

Brand image refers to the perception of a certain brand in the mind of the consumer
when a brand name is mentioned (Keller, 1993), whereas brand awareness measures
the customer’s ability to recognize the brand when seeing the brand name, logo,
symbol etc. Building up a strong brand is not easy but if a brand could build a better
image than its competitors’, then it would enjoy a degree of protection (Cheverton,
2002). With high brand image, a business can gain greater perception of the brand
among customers, customer loyalty, high profit margins, less negative attitude to price
fluctuations and less vulnerability compared to competitors

In the 1980s, the conception of brands changed enormously, when the management
started to understand the importance of a brand as an asset of the business (Kapferer,
1997). Nowadays, brands are seen more than just symbols and names: brands are
major assets of a company due to the fact that “a brand represents everything that a
product or service means to consumer.” That is the reason why brands should be
 4

carefully developed and managed. However, very often firms consider brands just as a
tool for advertising, but that is not the case: good brands don’t just sell, they act! Due
to the present competitive environment, every firm attempts to generate favorable and
positive associations about their brand which result in a positive image of the brand.
Companies should understand the fact that building up a positive brand image
depends on possessing high brand awareness, because when a brand is well
established in the memory it is easier for associations to be created and attached In
other words, this means that before customers can create an image of a brand in their
minds they have to get to know and be aware of the brand first.

To sum up, nowadays, brands are considered to be the key element when developing
relationships between companies and consumers. (Kotler, 2009) Brands are the key to
winning a position in the marketplace because they deliver unique benefits and build
deep connections with customers. In addition, customers are the most critical, though,
very important group to take into consideration because customers can always choose
from where they buy. Consequently, they will buy from the manufacturer that
provides the most value.

In order to accurately define the term “brand” we selected to use an up- to –date
definition of J. Pallister & J. Law. According to Pallister and Law (2009), the term
“brand” can be defined as a name of a brand that identifies a certain product,
manufacturer or distributor. In comparison to a brand, a strong brand is a product,
service, person or place that can be identified and improved in the way that the
consumer or buyer gains essential, unique added values which meet their needs in the
best possible way. In addition, success of a brand results from being able to maintain
added values in spite of competitors’ actions. (De Chernatony, McDonald, 1992) On
the other hand, American Marketing Association defines brand as a name, term,
design, symbol, or any other characteristic that clearly makes an attribute or quality of
a good or service distinguishable or recognizable. AMA adds that brand can
determine seller’s product or service, multiple products or services or all the products
or services of a particular seller. AMA specifies that brand’s legal term is trademark
and broadens the definition of the term “brand” to be a customer experience that can
be described as a group of ideas and images that often refer to a symbol, a name,
slogan or a logo, for instance.
 5

According to Nicholas Ind (1997), brand can be described as a feature of a plain idea
of product or service, and it includes the definition or a view of the values that go
deeper in the functional performance. In the other words, “--A product is something
that is made, in a factory; a brand is something that is bought by a customer.” The
brand signals the source of the product to consumers, and protects the customer, as
well as, the producer from possible competitors who would attempt to provide
products that appear to be identical. In relation to competitors, Nicholas Ind points out
the following crucial notion: “A product can be copied by a competitor, a brand is
unique.”

To gain a wider perspective and deeper understanding of the term brand, we used also
other sources of information outside of scientific articles and books. According to
Welingkar Institute of Management Development and Research, a brand is a promise
to the buyer of a product of a certain amount of benefits, services or attributes.
WIMDR says brand to reflect in four different ways. First, it reflects to values, such
as Tata that stands for quality. Second, it reflects to culture, for example Coca- Cola
as an icon of American culture. Third, brand reflects to personality, for example
Charlie Chaplin as a person and fourth, it reflects to user, many sports lovers like
Ferrari cars, for instance. American Society of Interior Designers defines brand as a
competitive business strategy, and Marketing MO, which is a marketing agency that
delivers integrated marketing services for mid-size companies, describes brand to be
more than company’s logo, name or slogan. Marketing MO defines brand as the
whole experience of its prospects and customers in relation to company produce or
service

Consumer behavior or buyer behavior has attained increasing importance in a

consumer oriented marketing planning and management. The study of consumer
behavior is an attempt to understand what the consumer want, why they want. Clear
understanding of the buying behavior of consumer has become a great necessity in
modern marketing system, because success or failure ultimately depends upon the
buying behavior of the target customers considered individually or a group.
Therefore in order to undertake the marketing programmed among different segment
markets, the marketing management must find out the various factors that influences
in buying decisions of the consumer. The subject of buying behaviuor is relatively a
new discipline of the study of marketing. It has now become the central topic of
 6

modern marketing since the ultimate aim of marketing is consumer satisfaction and
profit making.
Consumer behavior can be defined as “the decision-making process and physical
activity involved in acquiring, evaluating, using and disposing of goods and services”.
According to Webster, “Buying behavior is all psychological, social and physical
behavior of potential customer as they become aware of evaluate purchase consume
and tell other people about the product and services. In other words of Walter and
Paul, “consumer behavior is the process whereby individual decide what, when, how
and from where to purchase goods and service”. Thus the buyer behavior may be
defined as that behavior exhibited by people in planning, purchasing and using
economic goods and service in the satisfaction of their wants.
Characteristics of Buyer Behavior
→ Buyer behavior comprise mental and physical activates of a buyer when he
wants to buy goods and service to satisfy his needs
→ It includes both visible and invisible of buyer. The visible activates refer to
physical activity like actually going to the market place, buying the product
and consuming them. The invisible activates on the other hand, refer to mental
activates like thinking about the product, deciding to buy or not to buy that
product, to buy one brand instead of another etc
→ Buyer behavior
→ is very complex and dynamic also. it is constantly changing requiring the
marketing management fails to make such adjustments , it would certainly lose
it market
→ An individual buying behavior is also influenced by internal factors such as
needs, habits, instincts, motives, attitudes etc and also by outside or
environmental factors such as family, social, groups, culture, status, positions,
economic and business conditions.
In narrow sense consumer behavior is the act when he is engaged in buying and
consuming a good or a service.
After the consumer has actually purchased the products / brand, he will be satisfied or
dissatisfied with it. This satisfaction or dissatisfaction will result in certain
consequences. If he is satisfied with the product, he would regularly buy the brand
and develop a loyalty. If he is dissatisfied with the product he may stop buying more
products of that brand and may also spread bad words about the brand. This negative
 7

feeling which arises after purchase causing inner tension is known as cognitive
dissonance. A marketer therefore, understands the correct buying process of
customers and decides on marketing activities accordingly rather than by their income
alone. The social class is based on income, education, occupation, family history and
social status. Sociologists divide most societies into three classes-upper, middle, and
lower. Shopping pattern, savings, spending habit and leisure time activities differ in
different social classes. The upper class buys products of high quality irrespective of
price. Middle class buys items to show their status in the society.

Technology/Quality:
Consumer durables are technology driven. The latest models, innovative features and
improved performance levels are a definite attraction for the customer. The
consumer's choice today depends on the premium quality and technology provided;
Style: As most of the consumer durables are now a part of kitchen or drawing room
furniture, reflecting tastes and lifestyles, the external features play an important role in
purchases. The style of durables is turning into a big purchase influencer; Brand
Image: The perception of the consumer about the brand name is becoming critical on
account of the huge investment made in buying a consumer durable and its durable
nature. With the fast approaching disparity in both technology and prices, brand
image is becoming a key purchase influencer; Price: The market has been very price-
sensitive in the past. The intensity has increased as one moved down from the
premium segment to the mass consumption range. However, of late consumers have
started showing an inclination to buy medium price range products as opposed to low
priced products. The consumer is becoming more sophisticated and beginning to
recognize the value of premium quality; After Sales Service: As more and more
brands of consumer
Consumer behavior can be broadly classified as the decisions and actions that
influence the purchasing behavior of a consumer. What drives consumers to choose a
particular product with respect to others is a question which is often analyzed and
studied by marketers. Most of the selection process involved in purchasing is based on
emotions and reasoning. The study of consumer behavior not only helps to understand
the past but even predict the future. The below underlined factors pertaining to the
tendencies, attitude and priorities of people must be given due importance to have a
fairly good understanding of the purchasing patterns of consumers
 8

Marketing Campaigns
Advertisement plays a greater role in influencing the purchasing decisions made by
consumers. They are even known to bring about a great shift in market shares of
competitive industries by influencing the purchasing decisions of consumers. The
Marketing campaigns done on regular basis can influence the consumer purchasing
decision to such an extent that they may opt for one brand over another or indulge in
indulgent or frivolous shopping. Marketing campaigns if undertaken at regular
intervals even help to remind consumers to shop for not so exciting products such as
health products or insurance policies.

Economic Conditions
Consumer spending decisions are known to be greatly influenced by the economic
situation prevailing in the market. This holds true especially for purchases made of
vehicles, houses and other household appliances. A positive economic environment is
known to make consumers more confident and willing to indulge in purchases
irrespective of their personal financial liabilities.

Personal Preferences
At the personal level, consumer behavior is influenced by various shades of likes,
dislikes, priorities, morals and values. In certain dynamic industries such as fashion,
food and personal care, the personal view and opinion of the consumer pertaining to
style and fun can become the dominant influencing factor. Though advertisement can
help in influencing these factors to some extent, the personal consumer likes and
dislikes exert greater influence on the end purchase made by a consumer.

Group Influence
Group influence is also seen to affect the decisions made by a consumer. The primary
influential group consisting of family members, classmates, immediate relatives and
the secondary influential group consisting of neighbors and acquaintances are seen
have greater influence on the purchasing decisions of a consumer. Say for instance,
the mass liking for fast food over home cooked food or the craze for the SUV’s
against small utility vehicle are glaring examples of the same.
 9

Purchasing Power
Purchasing power of a consumer plays an important role in influencing the consumer
behavior. The consumers generally analyze their purchasing capacity before making a
decision to buy and products or services. The product may be excellent, but if it fails
to meet the buyers purchasing ability, it will have high impact on it its sales.
Segmenting consumers based on their buying capacity would help in determining
eligible consumers to achieve better results.

Product attributes-benefits for durables

The criteria which a buyer employs during information search and when selecting a
consumer durable have generally the following attributes: Product
Technology/Quality: Consumer durables are technology driven. The latest models,
innovative features and improved performance levels are a definite attraction for the
customer. The consumer’s choice today depends on the premium quality and
technology provided; Style: As most of the consumer durables are now a part of
kitchen or drawing room furniture, reflecting tastes and lifestyles, the external
features play an important role in purchases. The style of durables is turning into a big
purchase influencer; Brand Image: The perception of the consumer about the brand
name is becoming critical on account of the huge investment made in buying a
consumer durable and its durable nature. With the fast approaching disparity in both
technology and prices, brand image is becoming a key purchase influencer; Price: The
market has been very price-sensitive in the past. The intensity has increased as one
moved down from the premium segment to the mass consumption range. However, of
late consumers have started showing an inclination to buy medium price range
products as opposed to low priced products. The consumer is becoming more
sophisticated and beginning to recognize the value of premium quality; After Sales
Service: As more and more brands of consumer durables are becoming more or less
similar in terms of technology and price, the after-sales service has assumed a major
influence in buying decisions. This factor is assuming a key role in the minds of the
consumers, as the consumer durables are becoming more and more complex.
Moreover, the latest technology requires professional help for full usage. Hence, the
consumers are likely to depend more on service support. Some consumers buy
durables that match /reflect their aesthetic taste and lifestyle/Personality. Also various
 10

personal intentions underlie the purchase decision making of the consumer like
satisfaction, security, self concept, product attributes, etc. It is presumed that the
consumer adopts extensive problem solving behavior with more time and search,
evaluation process accorded for durables in consonance with the financial value,
personal/social importance and visibility accorded to the product/purchase act. The
consumer profile like the income/disposable income or affordability matching the
benefits and willingness to pay higher price(not price sensitive) ,brand availability
with differentiation/variety ,lifestyle adopted ,higher importance accorded to product
attributes, benefits driven approach and the dynamic marketing mix aspects influence
the purchase of consumer durables. There are two classes of Durables-the white goods
and the brown goods. While the white goods are relatively higher priced, heavier,
slower in replacement purchases, practical utility oriented, Warrantee-Insurance with
after sales service intensive and energy saving designs sought after by the consumer;
the brown goods are mostly electronic goods which are lighter in weight, relatively
replaced at a faster pace than white goods, specific high technology skills-knowledge
required to operate/maintain and are entertainment oriented employing the latest
innovative technology of miniature type with wireless communication facilities.

1.8 Research Methods

1.8.1 Research Design

This study describes the perception of consumer towards Gold Star. The research
design is basically exploratory and descriptive in nature.

1.8.2 Population and Sample

Total of 30 individuals will be taken as the sample population. The sample population
will be selected in a randomly with irrespective of their age group, economic level
and gender.

1.8.3 Sources of Data

The set of questionnaire will be used to collect the primary data from the sample
population for the study. Information regarding their view would collected through
the questionnaire. Other information's like about the Gold Star will be collected
through the secondary sources like journals, articles, different websites, newspapers.
 11

1.8.4 Data Collection Procedure

Both primary and secondary data will be used for the study. To receive in-depth
knowledge on the customer satisfaction and its theory, it is required to consult and
review existing literatures, reports, information bulletins, booklets etc published by
various institutions and personnel working in this field.

1.8.5 Methods of Data Analysis

All the data/information will be entered in the computer software like MS word, MS
excel etc. for report preparing. Qualitative approaches will be used to analyze the
collected information. Different diagrams and graphs will be used as applicable.
 CHAPTER II

DATA ANALYSIS AND PRESENTATION

There are two principal markets for trademark- and copyright-infringing products. In
the first (the primary market), Gold Starers and pirates infiltrate distribution channels
with products that are often substandard. Consumers unwittingly purchase these
products, thinking that they are genuine.

The secondary market involves consumers who, under certain conditions, are willing
to purchase Gold Star or pirated products that they know are not genuine. Consumers
who knowingly purchase such products are also aware that they are supporting the
parties producing and supplying them, although the true nature of those parties may
not be apparent to the consumer. The size of the secondary market also depends on
the characteristics of the product involved. For example, the willingness to knowingly
buy a low-priced Gold Star pharmaceutical product is likely to be far less than the
willingness to purchase a low-priced pirated CD. Finally, demand is also affected by
socio-economic factors, which differ among economies.

One of the most important and most complex problems faced by international
companies is fraud phenomenon, and Gold Star in countries. Product Gold Staring is
growing dramatically in terms of volume, sophistication, range of goods, and
countries affected. Most of the global companies are more concerned about Gold Star,
because this phenomenon can reduce their sell and disrupt their Pricing and
distribution strategies. On the other hand, destabilization of prices, damaging the
marketing and distribution channels, disruption of brand reputation and brand image,
are among the problems that have been reported by managers of international brands.

Global trends of Gold Staring show that cautionary growth in the field of production,
distribution and consumption of non-genuine goods is happening. Gold Star
merchandise trade, estimate over $ 600 billion a year worldwide with a growth rate of
10,000 percent in the last 20 years. However, this growth is largely due to the
increasing demand of consumers.
 13

2.1 Data Presentation

Table 2.1
Demographics of the Respondents
Age
15-20 9
20-30 15
30 above 6
Sex
Female 11
Male 19
Economic Status
10,000-20,000 5
20,000 – 30,000 15
30,000 above 10
Source: Field Visit, 2018

The above table shows that most of the study population was from the age group of
20-30 years. Most of them were male i.e. 19. Maximum of them were earning from
20,000-30,000 monthly which shows most of the people were of good economic
status.

2.1.1 Attitudes toward Gold Star

Attitude is "a learned predisposition to behave in a consistently favorable or

unfavorable manner with respect to a given object" or attitudes refer to the degree to
which a person has a favorable assessment of a questionable behavior and are an
immediate indicator with which an intention of him/her for doing particular behavior
can be predicted. Attitude is a learned tendency to replay to a topic through a desired
path or adverse continually and plays a very important role in consumer behavior.
Attitudes cannot be directly observed rather they are subjective situations that
marketers must obtain the results through realized measurements of them. Specific
attitudes may suggest a specific behavior. Attitude is considered to be highly
correlated with one's intentions, which in turn is a reasonable predictor of behavior.

Table 2.2
Attitudes towards Gold Star
 14

Attitudes toward Gold Star Number

Bad 7
Good 15
Very good 8
Source: Field Visit, 2018
Most of the people has found it good to buy the Gold Star. While 7 of them found it
bad to purchase Gold Star. While only 8 respondents found it very good to attitudes
toward Gold Star product.
Conspicuous consumption
Table 2.3
Conspicuous Consumption
Conspicuous consumption Number
Yes 23
No 5
No Idea 2
Source: Field Visit, 2018
Most of them found it conspicuous about while 23 of them only found it right.
Conspicuous consumption

Yes
No
No Idea
 15

Purchase intention

The link attitude-behavioral intention has been extensively examined in the marketing
literature. According to the Theory of Reasoned Action, attitude is positively
correlated with behavioral intentions, which in turn is an antecedent of the real
behavior. Indeed, research has found support on this relationship.

Different explanations can be suggested for the link between the attitude of consumers
and their actual purchase behavior. Attitudes toward an action affect behavioral
intentions positively and previous studies represented that consumer's attitudes can
affect the probability of buying Gold Star.
Table 2.4
Purchase Intentions
Purchase Intention
High Intention 15
Moderate Intention 10
Low Intention 5
Source: Field Visit, 2018
Most of them have high intention to purchase Gold Star. While only few have low
intentions on buying the Gold Star.

16

14
Purchase Intention

12

10

8
Column1
6

0
High Intention Moderate Intention Low Intention

Personal gratification
 16

The majority of Gold Star goods are not comparable to the original goods in terms of
quality and consumers who purchase Gold Stars are aware that the Gold Star do not
provide similar levels of quality as the original they are willing to accept such
compromise. Personal gratification concerns the need for a sense of accomplishment,
social recognition, and to enjoy the finer things in life and the result of their study
showed no significant influence of personal gratification on consumer attitudes
toward Gold Stars. However, consumers who purchase Gold Star goods are attributed
to the fact that the quality of them is some degrees lower than the genuine ones and
they may have certain feelings about this fact.
Table 2.5
Personal Gratification
Personal Gratification
Generally benefit 20
Nothing wrong 7
Better choice 3
Source: Field Visit, 2018
Most of them found that it benefit to purchase the products, while few i.e. 3 people
found that buying Gold Star nothing wrong to buy the Gold Star.
Personal Gratification

Generally benefit
Nothing wrong
Better choice

Social Status
Social status according to is “the motivational process by which individuals strive to
improve their social standing through conspicuous consumption of consumer products
that confer or symbolize status for both individuals and surrounding others”. Since
branded products help consumers to communicate an image to those who surround
them, there is no surprise that the willingness to purchase Gold Stars is associated
 17

with social status. Previous researches indicate that consumers who purchase Gold
Stars believe they obtain the prestige ascribed to the real product.
A more recent study reinforces the phenomenon that Gold Stared brands are bought
for what they represent in the buyer’s social environment. The attitude toward brands
predicts the intention to buy Gold Star, thus supporting the expectation that
consumers respond more favorably to image appeals when such appeal is consistent
with their social goal of projecting a particular image in social settings. Both original
brands and Gold Stars are considered to enhance consumers’ self-esteem and promote
a certain status within a peer group.
Table 2.6
Social Status
Social Status
Yes 15
No 10
No idea 5
Source: Field Visit, 2018
Social Status

Yes
No
No idea

Low Price
Consumers want to buy genuine products but only some of them can afford them. The
high priced original brands provide an opportunity to low priced Gold Stars to meet
the needs of those who cannot afford original brands. Deceptive Gold Stars' low price
 18

has been witnessed to stimulate demand for non- deceptive Gold Stars. Consumers
recognize non-deceptive Gold Stared products by their low price and buying location.
Consumers prefer Gold Stars over original brands especially when Gold Stars are
distinctly available at lower prices. Furthermore, some consumers desire to adopt
affluent lifestyles but are not financially sound to buy original brands and hence they
go for Gold Stars. Similarly, price conscious consumers willing to buy Gold Stars as
these are cost effective.
Table 2.7
Low Price
Low Price
Least Expensive 18
Reasonable price 7
Low price 5
Source : Field Visit, 2018
People buy Gold Star due to least expensive, while it is found it products reasonable
price, and while 5 people may purchase Gold Star due to low price.
20
Low Price

18
16
14
12
10
Column1
8
6
4
2
0
Least Expensive Reasonable price Low price
 19

Easy Access
Easy availability of Gold Stars and pirated products motivate consumers to buy them.
Gold Stars, especially non-deceptive products, are available at such places which
consumers frequently visit. They are mostly sold at open markets and at street
vendors. Gold Stars are normally sold through 3 distribution outlets: "established
retail shops"; informal channels such as "flea markets", "side walk vendors",
"clandestine shops" and Internet. Some deceptive Gold Star may be found at
supermarket shops as retailers are mostly unaware about the illegal nature of these
deceptive Gold Stars. The lengthy supply chain of Gold Stared products enhances
purchase intentions for high spenders than low spender. The level of availability and
ease of access influence the demand for both Gold Stars and pirated products. But this
situation may vary at different markets. Nowadays, the chances to buy Gold Stars at
open markets are higher than at regulated markets.
Table 2.8
Easy Access
Easy access
Less effort 10
Found every where 18
No legal problem 2
Source: Field Visit, 2018
Most of the respondents stated that Gold Star are found everywhere and it is easily
accessible. Also, most of them found it less effort to purchase the Gold Star.
20
18
Easy Access

16
14
12
10
Column1
8
6
4
2
0
Less effort Found every where No legal problem

Previous Experience
 20

Based on the assumption that consumer behavior is the result of learning, there is an
argument among the researchers that consumers’ past behavior can provide improved
predictions of behavioral intentions. Gold Star buyers different from non-buyers, the
former take such purchases less risky, not viewing this purchase as unethical and
trusting the stores for prior Gold Star purchase. Research has found Gold Star buyers
poles apart from-non buyers and past experience to enhance attitudes towards Gold
Star product. Majority of consumers who had never bought Gold Star product did not
choose Gold Star items, they also did not express any positive intention to buy Gold
Star product in future when they were offered the opportunity to purchase the Gold
Stars.

Table 2.9
Past Experience
Past Experience
Yes 10
Will buy 18
Better choice 2
Source: Field Visit, 2018

Most of the respondents will purchase the Gold Star in future and few of them also
stated that the respondents found it better choice products.
Past Experience

Yes
Will buy
Better choice

2.2 Major Findings

 21

→ Most of the people has found it good to buy the Gold Star. While 7 of
them found it bad to purchase Gold Star. While only 8 respondents found
it very good to attitudes toward Gold Star product.
→ Most of them found it conspicuous about while 23 of them only found it
right.
→ Most of them have high intention to purchase Gold Star. While only few
have low intentions on buying the Gold Star.
→ Most of them found that it benefit to purchase the products, while few i.e.
3 people found that buying Gold Star nothing wrong to buy the Gold Star.
→ People buy Gold Star due to least expensive, while it is found it products
reasonable price, and while 5 people may purchase Gold Star due to low
price.
→ Most of the respondents stated that Gold Star are found everywhere and it
is easily accessible. Also, most of them found it less effort to purchase the
Gold Star.

→ Most of the respondents will purchase the Gold Star in future and few of
them also stated that the respondents found it better choice products.
 CHAPTER III

SUMMARY AND CONCLUSION

3.1 Summary
‘Low price’ is frequently mentioned as one of the major product attributes affecting
purchase intention of Gold Star goods. The price of a Gold Star fashion item is mostly
set as a fraction of the price of the matching genuine item. It is this low-pricing
strategy that attracts consumer’s attention on purchasing a Gold Star. However,
because of the rise of the so-called ‘supercopies’, prices of these high quality Gold
Stars have risen too. It is interesting to investigate whether consumers use real price
and quality cues of CLFI as an indicator of perceived quality, as is sometimes the case
with genuine items. To the authors’ best knowledge, no research has yet been
conducted that integrates the possibility of consumers encountering relatively high
prices for Gold Stars.

3.2 Conclusion
Most of the people has found it good to buy the Gold Star. While 7 of them found it
bad to purchase Gold Star. While only 8 respondents found it very good to attitudes
toward Gold Star product. Most of them found it conspicuous about while 23 of them
only found it right. Most of them have high intention to purchase Gold Star. While
only few have low intentions on buying the Gold Star. Most of them found that it
benefit to purchase the products, while few i.e. 3 people found that buying Gold Star
nothing wrong to buy the Gold Star. People buy Gold Star due to least expensive,
while it is found it products reasonable price, and while 5 people may purchase Gold
Star due to low price. Most of the respondents stated that Gold Star are found
everywhere and it is easily accessible.

Implications
Brand owners must act quickly to identify and deal with any Gold Star goods. To that
end, brand owners should adopt the following strategies to protect themselves and
their brand:
 23

Make sure their rights are in order. Manufacturers and brand owners have the ability
to create value in their products through utilizing intellectual property rights (“IP
rights”). By having a sound IP rights strategy, brand owners can use the law as a tool
against Gold Starers to enforce their rights in their products, logo, designs, inventions,
know-how and brands.
Devise a strategy of dealing with Gold Star goods. By this we mean, a brand owner
should know what they want to achieve; what range of tools you have to achieve these
(and which are appropriate for the infringer at hand); their target list (i.e. are there any
Gold Starers that are a priority?); and how they wish their brand should be perceived
while doing it.
Generally, brands should monitor the infringements wherever they occur in order to
be able to react swiftly and decisively against them. Brands should keep a record of
their activities in order to be able to see which measures are working and which are
not.
In addition, brand owners should educate their customers. In this way, the consumer
will be deterred from purchasing a Gold Star product as they will know the drawbacks
of Gold Stared goods and how to spot them. Ideally, customers should also be made
aware of how to inform the brand owner - leveraging the power of customers as the
brands’ own “eyes and ears” as to where Gold Staring is occurring
 Bibliography
Cheverton, P. & Malcolm, M. (2002) How Come Your Brand Isn't Working Hard
Enough?: The Essential Guide to Brand Management. London: Kogan Page.

Leslie, D.C. & Malcolm H.B (1992). Creating Powerful Brands. Oxford & Boston :
Butterworth- Heinemann.

Ind, N. (2003). Beyond Branding: How the New Values of Transparency and Integrity
are Changing the World of Brands. London: Kogan Page.

Kapferer, J.N. (1997). Strategic Brand Management: New Approaches to Creating

and Evaluating Brand Equity. London: Kogan Page, 2 Sub edition

Keller, K.L. (1998). Measuring Customer-Based Brand Equity, in Perspectives of

Modern Brand Management. ed. Dr Franz-Rudolf Esch

Kotler, D. (2009) Principles of Marketing, 13th edition,

Law, J. & Pallister, J. (2009) A Dictionary of Business and Management, 5th edition.
Oxford: OUP.
 Appendix I

QUESTIONNAIRE

Name of the Respondents:……………………

Profession : ………………….

Age: ……………………

Gender: …………………………..

What do you think about Gold Star products?

[ ] Good [ ] Bad [ ] Very Good

Are you conscious about the product?

[ ] Yes [ ] No [ ] No Idea

What is the purchase intentions of purchasing Gold Star?

[ ] High Intention [ ] Moderate Intention [ ] Low Intention

What is the attitude toward buying Gold Star?

[ ] Generally benefit [ ] nothing wrong [ ] better choice

What is the main concern while purchasing the Gold Star

[ ] concerned about low price [ ] maximizing the quality

[ ] should meet requirement

What is your past experience about the Gold Star?

[ ] yes [ ] will buy [ ] better choice

What do you think about the price of Gold Star?

[ ] least expensive [ ] reasonable price [ ] low price

How easily can you find the Gold Star?

[ ] less effort [ ] found every where [ ] no legal problem