Study of Brand Switching Behaviour of Consumers With Special Reference To Lakme
Study of Brand Switching Behaviour of Consumers With Special Reference To Lakme
Study of Brand Switching Behaviour of Consumers With Special Reference To Lakme
ON
of
SUPERVISOR SUBMITTED by
DR. MD. SHAHNAWAZ ABDIN MONA KANYAL
MBA (2016 - 2018)
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CHAPTER- 1
INTRODUCTION
1.1 Introduction
First of all I would like to elaborate that what is consumer behavior “those acts of individuals
directly involved in obtaining and using economic goods and services including decision procure
that and determine these acts”. Consumer behavior is the study of when, why, how, and where
people do or do not buy a product. Every business focus on consumer behavior and they
conducts study to find out the need and wants of consumers and also conduct research that how a
marketer can change the behavior of consumer. There are many factors which influence the
consumer behavior but I will study on only three variables “price, quality, and Brand Name” and
will check the relationship of these three factors with consumer buying behavior. I will specify
my study in cosmetic sector products. Because Cosmetic products are important consumer
products with an essential role in everyone's life: apart from "traditional" cosmetic products, such
as make-up and perfumes, it also includes products for personal hygiene, for example tooth-care
products, shampoos and soaps.
Definition: Consumer behavior include mental activity, emotional and physical that people use
during selection, purchase, use and dispose of products and services that satisfy their needs and
desires .
Today's cosmetic market is driven by innovation including new color pallets, treatments targeted
to specific skin types and unique formulas concentrating on different needs. Most cosmetics
products have a lifespan of less than five years and manufacturers reformulate 25% of their
products every year. They need to improve products constantly in order to stay ahead in a highly
competitive market where more choice and ever greater efficacy are expected by the consumer.
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Many of these chemicals are toxic but the cosmetics industry does not want you to know this.
Just like all the other big industries in the US, the cosmetics industry is all about making big
profits (with 50 billion dollars in sales each year) and very little or absolutely nothing about
providing you the public with a safe product. Even many people, who are very careful about
what they eat, may well not be aware of the often toxic ingredients contained in cosmetics.
In spite of their efforts to hide information, we need to start reading labels. If a product has too
many ingredients with lengthy names, avoid it. Go for organic which are much less likely to have
toxic chemicals
Thousands of people are suffering the adverse affects from using cosmetic problems without
realizing what the cause of their suffering is. This can be in the form of burning sensations,
reddening of the skin, pimples or rashes. Others might not suffer from outward signs and
symptoms but from actual systemic toxins.
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5) Consumer behavior includes different roles: Consumers in different time can play each of
the three roles affective, buyers and consumer. When we buy something for our self we can play
that 3 role. Sometimes by using others opinion buy something for some one that in this case we
can play an individual role.
6) Consumer behavior is influenced by external factors: Consumer behavior is influenced by
many external factors such as culture, subculture, and social classes ... Located. These effects can
be short, medium or long term.
7) Consumer behavior is different in different people: Because people have different desires
and needs, so their behavior is different And the difference consumer behavior make predict
consumer behavior more difficult, to resolve this problem can categories the market.
Consumer Behavior may be understood as the decision process and physical activity individuals
engage in evaluating, acquiring, using or disposing of products. The organizations cannot
achieve success in their respective businesses if they fail to meet the requirements of the
consumer. People are unique and their consumption habits are unique therefore marketers need
to understand the behavior of the consumers in designing and developing right products to the
right consumers.
The modern marketing management tries to solve the basic problems of consumers in the area of
consumption. To survive in the market, a firm has to be constantly innovating and understand the
latest consumer needs and tastes. It will be extremely useful in exploiting marketing
opportunities and in meeting the challenges that the Indian market offers
Role or importance of study of consumer behavior can be explained with reference to the
The main purpose behind marketing a product is to satisfy demands and wants of the Consumers.
Study of consumer behavior helps to achieve this purpose. As consumers are the most important
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person for marketer or sales person, therefore it is important for them to consider the likes and
dislikes the consumers so that they can provide them with the goods and services accordingly
(Solomon, 2009). The more careful analysis helps in more exact prediction about the behavior of
consumers of any product or services. The study of consumer behaviors helps business manager,
sales person and marketers in the following way.
To design the best possible product or service that fully satisfies consumer's needs and
demands.
To decide where the service or product would be made available for easy access of
consumers.
To decide the price at which the consumers would be ready to buy that product or
service.
To find out the best method of promotion that will prove to be effective to attract
customers to buy a product.
To understand why, when, how, what and other factors that influence buying decision of
the consumers.
It is important for marketers to study consumer behavior. It is important for them to know
consumers as individual or groups opt for, purchase, consumer or dispose products and services
and how they share their experience to satisfy their wants or needs (Solomon, 2009). This helps
marketers to investigate and understand the way in which consumers behave so that they can
position their products to specific group of people or targeted individuals.
In regard to the marketer's view point, they assume that the basic purpose of marketing is to sell
goods and services to more people so that more profit could be made. This principle of making
profits is heavily applied by almost all marketers. Earlier, the marketers were successful in
accomplishing their purpose.
The following are some of the points discussed that explains the value to marketers of
understanding and applying consumer behavior concepts and theories.
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To Understand the factors influencing Consumer's buying Behavior
To understand the consumer's decision to dispose a product or services
To increase the knowledge of sales person influence consumer to buy product
To help marketers to sale of product and create focused marketing strategies
Competition
The Indian cosmetic market, which has been traditionally a stronghold of a few major Indian
players like Lakme, and Ponds has seen a lot of foreign entrants to the market within the last
decade. India is a very price sensitive market and the cosmetics and personal care product
companies, especially the new entrants have had to work out new innovative strategies to suit
Indian preferences and budgets to establish a hold on the market and establish a niche market for
themselves. HLL and Revlon were the first to introduce small pack sizes. Revlon introduced its
small-range of 8 ml nail polishes and lipsticks, and was soon followed it its strategy by major
Indian companies as well.
L'Oreal markets its range of specialized hair care products exclusively through salons and beauty
parlors. L'Oreal currently is the only company in the market that has a hair color range tailored
exclusively for parlors. The company was also the first to introduce modern hair color and
shampoos for colored hair in the Indian market.
A strong brand promotional campaign, good distribution network, constant product innovation
and quality improvement, and the ability to provide a variety of quality products are some of the
major reasons for the success of most companies.
HUL, is currently India's largest cosmetics and personal care products producer and its brands
has the dominant share (more than 50 percent) in segments such as personal wash, skin care,
shampoos, lipsticks and nail polish.
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ABOUT LAKME
Lakmé is an Indian cosmetics brand which is owned by Hindustan Unilever. Having Kareena
Kapoor as the ambassador, it ranked at number 1 among the cosmetics brands in India. Lakme started
as a 100% subsidiary of Tata Oil Mills (Tomco). It was named after the French opera Lakmé, which
itself is the French form of Lakshmi (the goddess of wealth) who is renowned for her beauty. It was
started in 1952 famously, because the Prime Minister Jawaharlal Nehru was concerned that Indian
women were spending precious foreign exchange on beauty products and personally requested JRD
Tata to manufacture them in India. Simone Tata joined the company as director and went on to
become the chairperson. In 1996, Tata sold off their stakes in Lakmé Lever to HUL, for Rs 200
Crore[
Lakme has a range of beauty products to offer to its consumers. Some of the ways
in which ittries to position itself:
1. Lakme Hair Color: magic of colors (collage).
2. Lakme (versatile eye shadow collection): rich, long lasting and healthy make up.
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7. Lakme nail polish and lipstick: electric brilliance/sensual brilliance
8. Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile)
instantly.
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CONCEPT OF PERCEPTUAL SELECTION: On the basis of perceptual
selection Lakme has tried to position itself among its consumers in the following
ways: Lakme has tried to gain the attention of its consumers by line extension
and having more and more product depth, packaging and attractive print
advertisements. If we look at the line extensions of Lakme than we would
observe that it is in almost all the segments of cosmetic care ranging from hair
care to skin care to beauty salons! Looking at the product depth it is pretty
evident that Lakme has actually tried to fill in all areas that it can, particularly the
nail paint and the lip color segment is a big hit among Indian women as it offers
them a wide variety of products in terms of colors as well as various styles that
they can choose from.
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1.4REVIEW OF LITERATURE
Abideen Z. Et al (2011) explore the effective advertising and its influence on consumer buying
behavior. The purpose of their study was to explore that how advertisement an audience
(viewers, readers or listeners) to purchase or take some action upon products, information, or
services etc. they studied 3 variables in which consumer buying behavior was dependent and
emotional and environmental response were independent. They investigate the relationship
between independent variables which are environmental response and emotional response with
attitudinal and behavioral aspect of consumer buying behavior. They collect data from 200
respondent living RAWALPINDI, ISLAMABAD and LAHORE. And analyze data through
regression analysis by putting in SPSS (statistical package for social sciences) and find out that it
is true that people purchase those brands with which they are emotionally attached.
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order to increase the consumer’s beliefs about the products by maintaining the quality to gain
competitive advantage. The recommendations for foreign car manufacturing are must maintain
the quality of the car in order to gain competitive advantages in market.
Haque A (2009) investigates the “Factors Influencing Buying Behavior of Piracy Products” in
Malaysian market. The purpose of this study was to explore the influencing factors of the
Malaysian consumers toward the pirated products. They studied factors social influence,
personality believe, pricing and economy as independent variables to check their relationship on
consumer perception. Their sample size was 550 but they found 500 questionnaires to be
adequate for research purpose. Each of the response received was screened for errors, incomplete
and missing responses. Out of which only 491 responses were considered complete and valid for
data analysis. And they analyze their data through descriptive and regression analysis to make
conclusion. They find that the majority of the Asian people try to get product at the most
reasonable cost, which encouraged some business people to do piracy so that all the products of
the various sorts reach the vast majority of the people.
Hypothesis was developed for each of these variables showing the relationship that the variables
have towards consumers’ perception on piracy. When the regression test was run, social
influence, pricing and the economy showed that the null hypothesis should be rejected
concluding that there is relationship between these variables and the dependent variable, which is
consumers’ perception on piracy. Nevertheless, individuals personality and their believe proved
that there is no significant relationship with consumers perception. Although most sources say
that there is no ending to the word “piracy”.
Li N and P Zhang (2013)determines the "Consumer online shopping attitudes and behavior,"
the purpose of their study is to synthesize the representative literature of consumer online
shopping attitudes and behavior based on an analytical literature review. After considering the 35
empirical studies, they identified a total of ten interrelated factors which empirical evidence
shows significant relationships. These ten factors or variables are "external environment,
demographics, personal characteristics, Vender / service / product characteristics, quality site, as
independent variables and Attitude regarding online shopping, intention to shop online decision
making, online purchasing, customer satisfaction, as the dependent variable. The 35 empirical
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studies are analyzed in this study, of these 29 of them used research method. Three dependent
variables (consumer attitudes, intentions, and buying behavior) and three independent variables
(personal characteristics, vendor / service / product characteristics, site quality) get the most
attention. This seems to represent the main stream of research in this area. Attitudes toward
online shopping and other factors, measuring intention to thirteen shop online and 14 studies the
relationship between online purchasing and other factors. Fourteen studies considering personal
characteristics, 16 vender / service / product characteristics, site quality and 20. It appears that
personal characteristics, vender / service / product characteristics, and website quality
significantly online shopping attitude, intention and behavior. The direct implication of their
findings is aimed at more convenient consumer groups, improving product / service quality, and
improving the quality of websites can positively influence consumer attitudes and behavior,. The
role of the external environment, demography, online shopping decision-making and consumer
satisfaction are less important. Any number of factors including the vender / service / product
characteristics, site quality, attitude towards online shopping, intention to shop online, making
online shopping and online purchases, can influence consumer satisfaction. Customer
satisfaction directly affects on the attitude towards online shopping or to specific internet shops.
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items is risky because the quality of store brands is inferior”, meaning that most respondents
disagree (answered strongly disagree/disagree) with the statement. And mean with high value
Product that “I buy from grocery store matters a lot to me”, meaning that most respondents have
the most agreed opinion with the statement. In crosstab analysis there is no relationship between
willingness of buying store brands compared to national brands and their income level. There is
also a relationship between recommendations of store brand grocery product to friends and their
age group; group age of < 25 years old and > 40 years old have the tendency to recommend store
brands to their friends and relatives. In overall, the findings shows that consumer’s perceived
value contribute positively to their perceptions of store brands and the better knowledge on the
aspects of store brand products due to their past experience in purchasing the items lead to
positive perceptions which eventually will lead to good possibility for them in re-purchasing
store brands products in the future.
Koufaris M. (2002) investigate “Applying the Technology Acceptance Model and Flow Theory
to Online Consumer Behavior” the purpose of their study is to check how emotional and
cognitive responses to visiting a Web-based store for the first time can influence online
consumers’ intention to return and their likelihood to make unplanned purchases. They studied
11 different types of variables in which “product involvement, web skills, value-added search
mechanism, challenges” as independent variables and “perceived control, shopping enjoyment,
concentration, perceived usefulness and perceived ease of use” as mediating and “unplanned
purchase and intention to return” as dependent variables. They conduct an quantitative study to
examine to consumer behavior and collect data from 300 respondents which filled out in one
week and after screening 280 questionnaire were properly found filled. And use mean, cross
tabulation and linear regression analysis to analyze data after putting into SPSS. They found the
results on unplanned purchases were surprising. And there is no relationship between unplanned
purchases and the flow variables of shopping enjoyment, concentration, and perceived control.
They also confirmed some prior research on flow. They found that perceived Web skills and
positive challenges are positively related with shopping enjoyment and concentration of online
consumers. From a substantive point of view, they examined how emotional and cognitive
responses to the shopping experience on the Web can influence online consumer behavior,
specifically, intention to return and unplanned purchases for new customers. Looking at the
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online consumer both as a shopper and a computer user, by blending theoretical paradigms from
psychology, marketing, and information systems, we confirmed the dual nature of the online
consumer as a traditional shopper and a computer user.
Androulidakis ; G. Kandus (2011) correlated the brand of mobile phone to users’ security
practices,. Users show different behavior in an array of characteristics, according to the brand of
the mobile phone they are using. As such, there is a categorization of areas, different for each
brand, where users are clearly lacking security mind, possibly due to lack of awareness. Such a
categorization can help phone manufacturers enhance their mobile phones in regards to security,
preferably transparently for the user.
Tajzadeh Namin A. A. ; Rahmani Vahid ; Tajzadeh Namin Aidin (2012) analysed that the
process of deciding over (choosing) a brand may be influenced by situation and content. The
findings suggest a significant relationship between the variables “brand attitude”, “corporate
attitude”, and “product (cell phone) choice”. In addition, no significant relationship was found
between individual decision making processes (independent or mediated) and product choice.
Rodolfo Martínez Gras ; Eva Espinar Ruiz (2012) highlight a new dimension in information
and technology with respect to teenagers in spain. The main objective of this article is to analyze
the relationship between Information and Communication Technologies and Spanish
adolescents. Specifically, researchers have studied, through qualitative methodology, the
characteristics of teenagers’ access and uses of technological devices. and analyzed the purposes
that motivate the utilization of Information and Communication Technologies, highlighting a
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close relationship between technologies and peer communication and entertainment. On the
contrary, there is an under-utilization of all these devices for teaching and learning purposes.
Nasr Azad ; Ozhan Karimi ; Maryam Safaei (2012)had presented an empirical study to
investigate the effects of different marketing efforts on brand equity in mobile industry. The
results show that there is a positive and meaningful relationship between marketing mix efforts
and brand equity. In other words, more advertisements could help better market exposure, which
means customers will have more awareness on market characteristics. Among all mixed efforts,
guarantee influences more on brand equity, which means consumers care more on product
services than other features. Finally, among different characteristics of brand equity, product
exclusiveness plays an important role. In other words, people are interested in having exclusive
product, which is different from others.
Nasr Azad ; Maryam Safaei (2012)states that there are many evidences to believe that
customers select their products based on brand name. Products also maintain their own
characteristics, which make them differentiable from others. In this paper, researchers have
present an empirical study to determine important factors influencing customers' purchasing
intend for cellular phones in capital city of Iran, Tehran. The results of the study show that there
are some positive relationships between exclusive name and quality perception, between
exclusive name and word of mouth advertisement, between quality perception and fidelity,
between word of mouth advertisement and brand name and between brand name image and
brand name.
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Hans Kasper, Josée Bloemer, Paul H. Driessen, (2010), has thrown light on how consumers
cope with confusion caused by overload in information and/or choice. The paper investigates
whether consumers who face different degrees of confusion use different coping strategies
depending upon their decision-making styles. The researchers found that consumers of mobile
phones can be characterized by combinations of decision-making styles and find three clusters
based on decision-making styles: “price conscious and cautious” consumers, “brand-loyal and
quality-driven” consumers, and “functionalist” consumers. Results show significant main effects
of the degree of confusion and the decision-making styles on the use of coping strategies as well
as a significant interaction effect of these two.
Ajax Persaud, Irfan Azhar, (2012) concludes that consumers' shopping style, brand trust, and
value are key motivations for engaging in mobile marketing through their smartphones. Further
research should focus on specific tactics marketers use to engage customers beyond marketing
messages, that is, how they engage customers in dialogue to build relationships, encourage
purchases and build loyalty. This could reveal how customers really want to engage in mobile
marketing.
Ahmed Alamro, Jennifer Rowley, (2011) explored that there are 11 antecedents of brand
preference; these can be theoretically clustered into three groups: awareness antecedents
(controlled communication (advertising), and uncontrolled communication (publicity, word of
mouth)); image antecedents (service value attributes (price, quality), provider attributes (brand
personality, country of origin, service (employee + location)), and corporate status (corporate
image, corporate reputation)); and, customer attribute antecedents (satisfaction, perceived risk,
and reference group). Multiple regression showed the contribution of each of these antecedents
to brand preference.
Lynda Andrews, Judy Drennan, Rebekah Russell-Bennett, (2012) examine the nature of
consumers' perceptions of the value they derive from the everyday experiential consumption of
mobile phones and how mobile marketing (m-marketing) can potentially enhance these value
perceptions. The findings highlight ways to tailor m-marketing strategies to complement
consumers' perceptions of the value offered through their mobile phones
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1.5OBJECTIVES
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RESEARCH METHODOLOGY
Research Design
Data Collection
Primary Data
Questionnaire
Target Respondents:
Sampling:
Secondary Data
Sampling Area
New Delhi
Sampling Unit
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QUESTIONNAIRE
1. Age group
2. Gender
I)Female II)Male
I)Yes II)No
I. Yes II. No
I)Yes II)No
8) Are you still a user of Lakme Products? (If yes, then skip ques no. 8 & 9)
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1. Yes 2. No
I)Price II)WOM
III)Quality IV)Other
I)Oriflame II)Maybelline
III)Faces IV)MAC
1. Yes 2. No
11.Rank in order of your preference (1-most preferred & 5 – least preferred) to the following
attributes’ which leads to the purchase of Lakme
12)For how long have you been using the Lakme brand?
LIKERT SCALE
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15.Influence of lakme Brand name on purchasing decision
I)Yes II)No
20. Will you like to switch your lakme brand preference if you get some promotional scheme
with another brand?
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21.Is Lakme using proper marketing strategy?
I)Yes II)No
I. Yes II. No
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