CB Cia-3
CB Cia-3
CB Cia-3
PRODUCTS
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ABSTRACT
The cosmetic industry has expanded at a rate of approximately 20 percent per annum and
currently stands at 30 billion in India. The aim of this paper is to examine the factors influencing
Indian consumers' purchases of cosmetic products. The goal of the analysis is to define the
association between factors and revenue and to determine the degree to which the major factors
and the purchase of cosmetic products depend on each other. Demographic characteristics such
as age, gender, salary, profession are used and multiple statements are analysed using pie charts
and bar graphs to find beliefs and practices among the consumers. For the study, the snowball
sampling approach was adapted and primary data was collected in this regard from 400
respondents of cosmetic product users who were returned with a response rate of 100 percent.
The results of the paper emphasize on customer’s decision-making. Internal and External
Influences have been shown to have a significant effect on customer buying decisions towards
cosmetic products.
INTRODUCTION
Consumer behaviour is the analysis of individuals, groups or associations and different
behaviours related to the purchase, use and disposal of all products and services available to
customers. Cosmetic products are one of several products available to a wide range of customers.
It is an object used to boost the exterior appearance of the human body.
Indian cosmetic industry and are valued at 30 billion Indian rupees in 2017. The Indian cosmetic
industry has gained popularity since the 1990s with the liberalisation along with the crowning of
many Indian women in beauty competitions. Indian consumers are more attentive to natural and
herbal cosmetic products. One of the unusual industries with strong growth potential has proven
to be the Indian cosmetic industry. The industry's market share is expected to rise at 18 percent
per annum and the industry's production is expected to grow at 20 percent per annum. The
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increased competition for herbal or organic cosmetic products, this growth is largely expected.
The source of this growth in the Indian cosmetic industry is the greater awareness among
individuals that, with the emergence of Patanjali products, resulted in increased demand for
products , particularly organic or herbal products. In India, the top leading companies are Lakme,
Maybelline, L'oreal, Oriflame, Nykaa etc.
The primary objective of the study is to determine the internal and external factors that influence
the behaviour of the customer towards cosmetic products so that it can enable the industry to
retain its market position and fulfil the consumer's demands for a specific product. They will
keep their current consumers in this way and can even improve their consumer’s experiences.
METHODOLOGY
Structure of paper: Quantitative research method will be used to study the attitude, and
behaviour of cosmetic buyers also to understand the difficulties faced by the cosmetic industry
and further provide various ideas to control those difficulties.
Sampling Method: Snowball Sampling Method has been used for the research work for
collecting the data from the consumers.
Selection of sample size: The sample includes the respondents of over the age of 13 years in all
around India. The data is gathered using a structured questionnaire.
The sample size was arrived as given below:
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Formula for sample size calculation: 𝑁 = 𝑧 2 ⋅ 𝑃/ 2 ≅ 47
Where:
N= Sample Size
z = 1.96 (Z value for 95% confidence level)
P = percentage expressed as a decimal (0.5 used for the sample size needed)
e = confidence interval expressed as decimal (0.05)
Data collection: The primary data has been gathered using structured questionnaires which is a
crucial part of the study and it shows the consumer behaviour and attitudes in India.
Questionnaires were shared randomly to various educated segments of the population which
were returned with a response rate of around 98 per cent. The research has been carried out
through different types of questions including multiple choice, Likert Scale and dichotomous
questions, of which were assigned different results. The questionnaire was prepared for both
users and non-users of cosmetic products as. The questions relating the demographic profile, the
influence of different factors and regarding the attitudes and behaviour of customers to find out
the degree of internal and external influences of consumer behaviour on cosmetic products.
Scale Used: Likert scale of two types have been used in two parts. Firstly, Strongly Agree,
Agree, Neutral, Disagree, Strongly Disagree has been used and then for the second part of the
questionnaire- Not at all, Rarely, Sometimes, always are used.
Tools used: The collected data has been entered into a Microsoft excel spreadsheet. And the data
is graphed and analysed using bar graphs, percentages and other statistical tools to find the
frequencies and trends. Also, tools like factor analysis, F-test and ANOVA will be used for the
data analysis.
Study area: India
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ANALYSIS AND INTERPRETATION
Overall, 47 people had responded to the google forms, components of Descriptive Statistics have
been used to find the interpretations to convert qualitative data to quantitative data.
1. Gender-
Male 16 34%
Female 30 63.8%
Mean- 1.38
Median 1
Mode 1
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Sample variation- -0.215474
Kurtosis- 0.94077008
Skewness- 0.07785985
The product line that we have chosen for the study is Cosmetics, and it is evident that females
(around 63.8%) have taken part in this study and use cosmetics, whereas only 34% of males use
cosmetics.
2. Age-
13-25 45 95.7%
26-35 2 4.3%
36-55 - -
55 and above - -
Mean 1.04
7
Standard error- 0.02976079
Median 1
Mode 1
Kurtosis- 20.819
Skewness- 4.683
All the respondents who had taken part in the study were asked to specify their age to analyze
what age category uses most cosmetics. It is evident from the pie chart and the table that 95.7%
of the people belong to the age category of 13-25. There were only two people between the ages
of 26 and 35 who took part in our study. From this data, we can say that cosmetics' purchase is
more famous for people ranging from 13-25.
3. Income-
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Income level Frequency Frequency
Distribution
0-50000 36 76.6%
50000-75000 4 8.5%
75000-100000 3 6.4%
Mean 1.46
Median 1
Mode 1
Kurtosis 2.307
Skewness 1.910
From the above data, it can be understood that around 76.6% (more than half) of the respondents
earn the income of, 0-50,000 and most of them belong to the student category, so some of them
do not earn, and they purchase it from the pocket money that is given to them by their parents.
Exactly four people make the income of 50,000-75,000, and 4 people earn 1 lakh and above, and
these people are either placed, have their own business, and are corporate executives. It can be
understood that most of them earn an income of 0-50,000, and they are students. Their
occupations will be shown in the below pie chart.
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4. Occupation-
Student 43 91.5%
Self-employed 3 6.4%
Mean 1.106
Median 1
Mode 1
Kurtosis 15.305
Skewness- 3.823
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Overall, it can be interpreted that 43 out of 47 respondents (91.5%) are students, and we can
relate this to the income category as well because the people who have an income of 0-50,000 are
mostly students because they purchase cosmetics from the pocket money that they receive from
their parents. Only one person is a corporate executive from our study, and three respondents are
self-employed.
Frequently 20 42.6%
Rarely 22 46.8%
Mean- 2.42
Median 2
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Mode 3
Kurtosis -0.287
Skewness -0.359
Around 24 respondents shop frequently and frequently and contribute about 51.1% of the
customers who regularly engage with cosmetic products and like purchasing them. People who
rarely shop for these products constitute around 46.8%, and only one person does not shop for
cosmetics. It can be interpreted that around half the respondents like purchasing the products
whereas the other half rarely buys them.
Brand 30 63.8%
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Features 9 19.1%
Price 6 12.8%
Discount/Offers 2 4.3%
Mean- 1.574
Median- 1
Mode- 1
Kurtosis 0.853
Skewness 1.371
From the above pie chart, we can understand that more than half of the customers (about 63.8%)
look at the brand first before buying the product. It can be understood that the "brand" element
matters the most to them. Moving on, there are nine respondents (19.1%) who look at the features
first before any other part. Six respondents chose to be price-conscious, and they always look at
the price first before purchasing the products. Lastly, only two people out of 47 look at discounts
and offers first when checking out cosmetics.
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7. Which factors influence you the most while choosing your cosmetic product?
Family 9 19.1%
Advertisement 11 23.4%
Habit 16 34.0%
Mean 2.489361702
Median 3
Mode 3
Standard 1.06060566
Deviation
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Kurtosis -1.19547995
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Skewness -0.08513631
From the above pie chart, we can understand that more than half of the customers (about 46.8%)
are influenced by Advertisement and Peer Groups when choosing cosmetic products. There are
nine respondents (19.1%) who are affected by their family when buying cosmetic products.
They're a perfect number of 16 respondents (34.0%) who buy cosmetics as a habit; we can say
that they take buying makeup as an activity they are fond of, so other factors like family peer
groups do not influence them.
Confident 10 21.7%
Groomed 13 28.3
professional
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Trendy 7 15.2%
Stylish 12 26.1%
Mean 2.8936
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Median 3
Mode 2
Standard 1.3868
Deviation 02
Sample 1.9232
Variance 19
Kurtosis -1.103
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Skewness 0.3004
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From the above pie chart, we can understand that most respondents have a reasonable and
appreciative opinion about cosmetic users or enthusiasts. Cosmetic users are seen as Groomed
Professionals by 28.3 % of respondents, Stylish by 26.1%, and Confident by 21.7%. Only four
respondents (8.7%) don't find it necessary to label them. Rest, everyone had a positive outlook
towards cosmetic users. We even had a category for low esteem, but none of the respondents
opted for that option.
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9. What usually motivates you to buy cosmetics?
Celebrity 1 2.2%
endorsement
Discount 13 28.9%
Advertisement 9 20.0%
Trend 22 48.9%
Mean 2.1063
83
Median 2
Mode 2
Standard 0.9144
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Deviation 74
Sample 0.8362
Variance 63
Kurtosis -0.468
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Skewness 0.4948
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From the above pie chart, we can understand that majority of the respondents go with the latest
trend when it comes to buying cosmetic products 22 respondents 48.9 %. This massive gap
between other factors and trend factors also shows how much people want to be updated
regarding relevance. The second large number was 13 respondents, 28.9% who showed their
preference towards the discount factor. Rest some chose advertisement as a way to buy consumer
products.
10. Answer the following questions on the scale as follows: [My Past experiences influence
my purchasing of cosmetic products].
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A. Do my Past experiences influence my purchasing of cosmetic products?
Agree 21 47.72
Neutral 5 11.36
Disagree 1 2.27
Mean 1.787234
Median 2
Mode 2
Standard 0.720392
Deviation
Sample 0.518964
Variance
Kurtosis 0.59859
Skewness 0.709986
As you can see from the above frequency table, most of the respondents, 21 (47.72%), agree that
their past experiences influence their purchasing of cosmetic products. However, several 11.36%
have a neutral, though, when it comes to having experience as an influence.
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B. I prefer buying expensive cosmetic products for cheaper products?
Strongly agree 6
12.67
Agree 15 31.91
Neutral 24 51.06
Disagree 2 4.25
Mean 2.595744681
Median 3
Mode 3
Standard 0.947756492
Deviation
Kurtosis 0.470141799
Skewness 0.272455812
As you can see from the above frequency table, most of the respondents gave a neutral response
to buying expensive products over cheaper products. However, a section of respondents agree,
and some even strongly agree (6 respondents 12.67% and 15 respondents 31.91%) that they
prefer buying expensive products over cheaper products. This may be because of the quality
factor, as people want to get value for the money they spent and don't want to take any risks when
it comes to cosmetic products.
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C. I am willing to pay more for a cosmetic product if it consists of natural ingredients.
Agree 27 57.44
Neutral 5 10.63
Disagree 4 8.51
Mean 2.630434783
Median 3
Mode 3
Standard 0.927570199
Deviation
Kurtosis 0.616076901
Skewness 0.298315635
As you can see from the above frequency table, most of the respondents, 27 respondents, 57.44%
agree that natural ingredients play a significant factor in influencing consumers to buy cosmetic
products. Only four respondents out of 47 respondents disagree with the influence of natural
ingredients; the % is around 8%, which is very low compared to many respondents.
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11. Do your research before buying a cosmetic product?
Always 26 53.2%
Sometimes 16 31.9%
Rarely 5 10.6%
Mean 1.72340426
Median 1
Mode 1
Kurtosis 0.87126839
Skewness 1.33797169
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Overall, it can be interpreted that 26 out of 47 respondents (53.5%) are consumers who always
research before buying cosmetic products, 16 out of 47 respondents (31.9%) sometimes do the
research before buying. On the other side, only two people don't research at all, and now this
number shows us that people must research before getting to buy a particular product, especially
when it comes to cosmetics.
Supermarket 11 22.4%
Salon 11 22.4%
Online 24 49%
Mean 2.869565
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Median 3
Mode 4
Kurtosis -1.12222
Skewness -0.13401
All the respondents who had taken part in the study were asked to specify their personal choice of
selecting a platform for buying their cosmetic products. We could analyze what platform category
attracts the most significant number of cosmetic buyers. It is evident from the bar chart and the
table that 49.0% of the people chose to buy cosmetic products from online platforms. There were
only two people between the ages of 26 and 35 who took part in our study. The next second
number was 19 respondents, 38.8% who prefer specialist stores to buy cosmetic products. From
this data, we can say that cosmetics' purchase is more prevalent from platforms like online and
specialized stores, and people are reluctant to buy it from direct sales.
Correlation value:
Age 0.24452515
Gender and Age are slightly positively correlated, but this value also is fairly close to zero so
there isn’t strong evidence for a significant association between these two variables. A positive
correlation–when the correlation coefficient is greater than 0–signifies that both variables move
in the same direction. So, it can be interpreted that the rise of one variable will definitely affect
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the other variable.
R-square – is the coefficient of the determination. In our case – there is 0. 059, or 5.9%. This
means that the model parameters estimated at 5.9% explains the addiction between the
parameters which are studied. The higher the coefficient of determination, the better is the model.
Good - above 0. 8. Bad - less than 0. 5 (such an analysis can hardly be considered reasonable). In
our example – is «not bad».
0.727272 ratio shows how will be Age, if all the variables in the model will be equal to 0. That is,
the value of the analysed parameter is influenced by other factors.
Now, if our p- value is given by the significance f is less than 0.05 then the correlation is
statistically significant and since 0.101 is more than 0.05 that indicates that the correlation is not
significant. That means there’s no significant positive relationship between Gender and Age.
Correlation value:
Gender and frequency of shopping are slightly positively correlated to each other, but this value
also is very close to 0, so there isn’t a significant association between these two variables. When
the correlation coefficient is greater than 0 it signifies that both variables are moving in the same
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direction. So, it can be interpreted that the rise of one variable will definitely affect the other
variable.
In our case r-square is 0.0004. This means that the model parameters estimated at 0.0004 explains
the addiction between the parameters which are studied. The higher the coefficient of
determination, the better is the model. Good - above 0. 8. Bad - less than 0. 5 (such an analysis
can hardly be considered reasonable). In our example – is bad because it is less than 0.01 also.
the 2.38961 ratio shows how gender will be Gender, if all the variables in the model will be equal
to 0. That is, the value of the analysed parameter is influenced by other factors.
Now, if our p- value is given by the significance of is less than 0.05 then the correlation is
statistically significant and since our value is 0.89 which is so much higher than 0.05 that
indicates that the correlation here is not significant. That means there’s no significant positive
relationship between Gender and frequency of shopping.
Correlation value:
The Occupation and mode of purchase are somewhat related to each other but they do not change
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very frequently if there’s change in any one of them. The value is very close to 0, so there isn’t a
significant association between these two variables. When the correlation coefficient is greater
than 0 it signifies that both variables are moving in the same direction. So, it can be interpreted
that the rise of one variable will definitely affect the other variable.
Here in our case the value of the r-square is 0.004. This means that the model parameters
estimated at 0.004 explains the addiction between the parameters which are studied. In our case it
is bad because it is less than 0.01 also the 2.63157 ratio shows how will be the Occupation, if all
the variables in the model will be equal to 0. That is, the value of the analysed parameter is
influenced by other factors.
Now, if our p- value is given by the significance of is less than 0.05 then the correlation is
statistically significant and since our value is 0.64 which is much higher than 0.05 that indicates
that the correlation here is not significant. That means there’s no significant positive relationship
between Occupation and mode of purchase
The Age and image towards cosmetic users are very much related to each other but this value also
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is fairly close to zero so there isn’t strong evidence for a significant association between these
two variables but this value also signifies that there is a relation between these variables. A
positive correlation–when the correlation coefficient is greater than 0–signifies that both variables
move in the same direction. So, it can be interpreted that the rise of one variable will definitely
affect the other variable.
Here in our case the value of the r-square is 0.104. This means that the model parameters
estimated at 0.104 explains the addiction between the parameters which are studied. In our case it
is not that bad. The 0.6 ratio shows how will be the Age, if all the variables in the model will be
equal to 0. That is, the value of the analysed parameter is influenced by other factors.
Now, if our p- value is given by the significance of is less than 0.05 then the correlation is
statistically significant and since our value is 0.026 which is so much less than 0.05 that indicates
that the correlation here is significant. That means there’s significant positive relationship
between Age and image towards cosmetic users
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FINDINGS AND SUGGESTIONS
Findings
From the analysis and interpretation of responses, we can say that, based on our study on
influences of consumer behaviour on cosmetic products, the majority of our respondents are
tech-savvy, female students who are aged between 13 to 25 years. The major factor that
influences their purchase and buying behaviour is the brand name and features provided by them.
It is observed that the sample audience is highly influenced by their habits whilst being equally
altered by inputs from their peer groups and advertisement of products showcased via different
modes of promotions.
They believe that the cosmetic products purchased & utilised by users depict a sense of stylish yet
professional outlook towards an individuals’ personality.
Suggestions
● Use social media & the internet: While numerous organizations can profit by the
utilization of web-based media to interface with expected clients, web-based media is
ideal for the cosmetics business in view of the visual part of the items. Make a progression
of how-to videos and post them to various social media handles. Compose a blog about
cosmetics and highlight individuals wearing the brand items. Post pictures to other online
media accounts.
● Offer free samples & giveaways: Send potential clients free examples of your item.
Additionally, have a month to month giveaway for a bushel of free corrective items that
you promote on your site or web-based media accounts. Give clients a specific number of
passages dependent on the quantity of buys they make.
● Deals & offers: People are delighted when they think they are getting a decent
arrangement. The brand can offer arrangements to clients to spur them to purchase,
including get one, get one free discount; get one, get one half off discounts; and a free
present with buy choice.
● Offer makeovers & consultation: Setting up of stalls at a shopping center or at a retail
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chain where brands can give free counsels to clients. Have a lot of items available for
procurement. Another alternative is to have a week after week free makeover challenge.
● Host workshops in which you instruct possible clients about healthy skin and cosmetics
application. Disclose how to spruce up a day look to a night look with a couple of speedy
changes. Examine how an individual's closet and cosmetics relate.
● Exhibit how cosmetics products work and proper application methods by having a model
available. As another option, solicit a part from the crowd to chip in for the assignment.
CONCLUSION
The regularly expanding population utilizing cosmetics tend to multiply quite significantly.
So promoting such products and brands of cosmetics gets competitive. Promotions through mass
communications like radio, TV, papers and so forth, advance the offer of cosmetic products &
brands in a larger scope.
Research has been completed to improve its quality and new sorts of makeup items are going to
the market. Shoppers anticipate quality products at sensible cost but are willing to pay extra for
an increase in the quality of products.
In order to increase sales and rejuvenate & flourish the cosmetic industry, the brands need to
focus on building their e-commerce sales and create innovative methods to attract the youth and
increase their engagement & build a sense of belongingness amongst the same.
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APPENDIX
QUESTIONNAIRE:
INTERNAL FACTORS:
1. Name
2. Gender
A. Male
B. Female
D. Others
3. Income
A. 25000-50000
B. 50000-75000
C. 75000-100000
4. Age
A. 13-25
B. 26-35
C. 36-55
D. 55 and above
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5. Occupation
A.Student
B. Self Employed
C. Corporate Executive
D. Govt Employee
E. Others
A. Very frequently
B. Frequently
C. Rarely
D. Do not shop
A. Price
B. Brand
C. Features
D. Discount/Offers
8. Which factors influence you the most while choosing your cosmetic product?
A. Peer group
B. Family
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C. Advertisement
D. Habit
A. Stylish
B. Confident
C. Groomed professional
D. Trendy
E. Low self-esteem
F. Not necessary
A. Discount
B. Trend
C. Advertisement
D. Celebrity endorsement
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
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e. Strongly disagree
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
EXTERNAL FACTORS:
A. Not at all
B. Rarely
C. Sometimes
D. Always
A. Supermarket
B. Salon
C. Online
D. Specialist store
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REFERENCES
1. Retrieved from
https://undergradresearch.dasa.ncsu.edu/publications/ink-ncstate-urj-submissions/structu
re-of-a-research-paper/
2. Retrieved from
https://www.healthknowledge.org.uk/public-health-textbook/research-methods/1a-epidemi
ology/methods-of-sampling-population
3. Retrieved from
https://asq.org/quality-resources/data-collection-analysis-tools
4. Retrieved from
https://www.marketresearch.com/Consumer-Goods-c1596/Consumer-Goods-Retailing-c8
0/Cosmetics-c1547/
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