The Biases that Influence Jewellery Purchasing Decisions

This research investigates how cognitive biases—specifically anchoring, scarcity, bandwagon, and status quo effects—influence consumer behavior within the jewellery industry. Drawing upon theories from behavioral economics and psychology, the paper explores how these mental shortcuts shape perceptions of value, exclusivity, and brand loyalty in the luxury market. By connecting academic literature with real-world examples from brands such as Tiffany & Co., Cartier, and Tanishq, the author demonstrates how jewellery companies consciously leverage these biases to construct desirability and drive purchasing behavior.

The study adopts a primarily theoretical approach, using secondary research and case-based analysis to contextualize how each bias manifests in jewellery consumption. For instance, anchoring is examined through pricing strategies and consumer associations between high cost and quality, while scarcity is linked to limited-edition collections and exclusivity marketing. The bandwagon effect is explored through celebrity endorsements and social media visibility, showing how trend conformity amplifies desirability. The status quo bias, meanwhile, highlights consumer loyalty to traditional luxury brands and resistance to change, even in the face of innovation.

A supplementary quantitative survey of 60 Indian consumers adds empirical depth, gauging how respondents perceive these biases in their own jewellery purchases. While the findings largely align with existing research—especially regarding scarcity and exclusivity—they also reveal cultural and perceptual nuances, such as lower self-reported susceptibility to anchoring or bandwagon effects. The author acknowledges limitations in sample scope and potential self-report bias, but the survey nonetheless enriches the discussion. Overall, the paper bridges theory and practice to illuminate how psychological heuristics shape luxury consumerism, offering valuable insight for both marketers and behavioral researchers studying decision-making in emotionally charged, high-value markets.