An Empirical Analysis of Service Quality and Customer Satisfaction in the Gold Jewellery Sector

Abstract

The gold jewellery industry in India holds immense cultural, emotional, and financial importance. This sector thrives not only on the quality of the products offered but also on the standard of service delivered to customers. Businesses in this industry must focus on delivering a seamless service experience that aligns with customer expectations, as satisfaction plays a crucial role in building loyalty and encouraging repeat purchases. his study aims to assess customer satisfaction and the quality of service provided by gold jewellery retailers. It focuses on various dimensions including consumer buying behavior, awareness of product quality (such as gold purity and hallmarking), availability of designs, customer perception, and their overall expectations. A significant concern within the industry is the lack of customer knowledge related to hallmark certification, color variations, wastage charges, gemstone use, and making charges. These service gaps often lead to dissatisfaction, despite aggressive marketing efforts by jewellery brands. With today’s businesses adopting innovative promotional strategies, customer attraction has become easier. However, the greater challenge lies in retaining customers through exceptional service delivery. Marketers must ensure that the services provided not only meet but exceed consumer expectations to maintain competitiveness. The study outlines several objectives: understanding how customers make decisions while buying jewellery, identifying their preferences and expectations, evaluating the key elements of service quality and satisfaction, and analyzing how these factors impact customer loyalty. Another critical focus is identifying the gap between what customers expect and what they actually receive in terms of service. The study uses a structured questionnaire to collect primary data from five zones in Gujarat—North, South, East, West, and Central. A convenience sampling method was adopted, targeting actual buyers of gold jewellery. Various statistical tools were applied for analysis, including the Kruskal-Wallis test, a non-parametric method suitable when data are not normally distributed, and the Chi-Square test, used to examine associations between categorical variables.

Introduction

With growing customer awareness driven by economic liberalization and technology, businesses face intense competition and must focus on meeting evolving customer expectations to retain loyalty and increase market share. The gold jewellery sector, a significant investment area, requires innovation and improved service to satisfy customers, but many still report dissatisfaction.

This study aims to analyze customer buying behavior, preferences, expectations, and service quality in the gold jewellery market across Gujarat. Using a descriptive research design, data were collected through questionnaires from 756 customers spanning five geographic zones.

Key findings reveal that most buyers shop occasionally, influenced by family and promotions, with preferences for branded and customized jewellery. Customers prioritize product quality and fair making charges but often find actual satisfaction falling short, especially on pricing and service aspects.

Statistical analysis identifies five service quality dimensions—Tangibility, Empathy, Assurance, Responsiveness, and Reliability—and shows demographic factors like age and income influence buying behavior. A notable gap exists between customer expectations and experience, suggesting retailers should focus on enhancing service quality to boost satisfaction and loyalty.

Conclusion

The study revealed that most customers spend between ?500 to ?30,000 per jewellery purchase, often for investment or special occasions. Spouses and parents heavily influence purchase decisions, with branded jewellery being preferred, especially by younger consumers and those with higher incomes. Customization, product quality, and making charges ranked highest in customer expectations, while incentives and store ambiance were least valued. Significant gaps were observed between expectations and satisfaction, particularly regarding making charges and competitive pricing. Service quality was analyzed through five factors: Tangibility, Empathy, Assurance, Responsiveness, and Reliability—each positively impacting customer satisfaction. A strong correlation was found between satisfaction and loyalty. The study recommends jewellers address the high expectation-satisfaction gap in pricing and loyalty. Traditional vendors should cater to older, mid-income customers, and awareness about colour wastage should be improved. Emphasis on assurance and reliability can enhance satisfaction. The study was limited to 15 cities in Gujarat, with scope for broader future research.

References

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Copyright

Copyright © 2025 Ms. Rachana Shah, Dr. Kerav Pandya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.