PROJECT REPORT

CONSUMER BUYING BEHAVIOUR TOWARDS

COSMETIC PRODUCTS : A CASE OF BIKANER

Submitted by-
RANI PUJA
M.B.A. 2nd Sem

Submitted to-
Dr. Shashi Singhal
Dean of SOCM

RNB GLOBAL UNIVERSITY

BIKANER (RAJ.)
 ACKNOWLEDGEMENT

Success of my project depends upon two factors Internal and External factors
includes sincere efforts, dedication to the work and good potential whereas
internal factors include cooperation and support of potential customers who
patiently heard and filled the questionnaires.
Good guidance and cooperation from other are such external factors, which
affects the percentage of success. Though in completing this project I tried my
level best but it could not be possible without proper guidance of my profs.
I want to give my thanks to Dr. Shashi Singhal for her valuable guidance and
suggestions, which I sincerely value and appreciate.
 EXECUTIVE SUMMARY
The first and most objective of my study is of consumer buying behaviour
regarding cosmetic products. The study of consumer behaviour is the most
important factor for marketing of any goods and services. The consumer
behaviour suggests how individual, groups and organization select, buy, use and
dispose of goods, services, ideas or experience to satisfy their needs and wants.
It also includes for improving or introducing products or services, setting prices,
devising channels etc.
Since liberalization 100% FDI is allowed in India. This has attracted foreign
companies to penetrate the Indian market. The marketers always look for
emergent trends that suggest new marketing opportunities and here in India a lot
of opportunities are available.
The cosmetic products are one of the best and important sectors at the present
time. There is a lot of future opportunity in this sector. The increasing trend of
different cosmetics products, beauty care products, skin care products, hair care
products etc. fuels the market growing opportunity for cosmetic products.
From the last couple of years, the demand of cosmetic products is not only
increase in only women but also it increases in men e.g., Himani Fair and
Handsome “Mardon wali Fairness cream”. Like that there are many
opportunities has been arising and change is made in consumers’ perception.
So, the title of the project report is “Consumer buying behaviour towards
cosmetic products: A case of Bikaner” aim to study the buying behaviour
towards cosmetic products. To find out the factors that affects the customers
buying behaviour, to find out their loyalty towards the brands and the overall
spending. I have used Descriptive for research design and I have collected the
primary data through “questionnaire” The sample size of the survey is 50. I
have chosen “Questionnaire” as a tool for primary data collection and “Internet
access” for the secondary data collection.
 INDEX

S. PARTICULARS
No.
1. Abstract

2. Introduction

3. Literature Review

4. The phases in the decision-making process

5. Need of Research

6. The study’s objectives

7. The scope of study

8. Methods of data collection

9. Methods of analysis and statistical tools

10. Conclusion

11. Suggestions

12. References

13. Appendix
 CONSUMER BUYING BEHAVIOUR TOWARDS
COSMETIC PRODUCTS : A CASE OF BIKANER

ABSTRACT
The purpose of this research paper is to look at customer purchasing habits when it comes to
cosmetics. This study was done in Bikaner, and data were gathered from 200 respondents through a
questionnaire survey.
With its immense potential, the personal care industry has become an important element of the
nation's economy. One of the most popular product areas in the country is personal care. In the last
decade, the Indian consumer's purchasing power and disposable incomes have risen tremendously,
creating a niche for leading organizations in this segment, resulting in rapid growth in this industry.

INTRODUCTION
Understanding consumer behaviour is crucial to a company's long-term success. To predict future
trends, marketing department are consistently studying patterns of buying behaviours and purchase
decisions. The studies of how, when, what, and why individuals buy is termed as consumer behaviour.
According to the Global Cosmetic Industry study, enhanced education offered by companies on
product ingredients and advantages has made today's customer more aware of what they're putting on
their bodies and more prepared to pay for it.
Consumer behaviour can be understood as: "The decision process and physical activity individuals
engage in when evaluating, acquiring, using, or disposing of goods and services." (Loudon and Della
Bitta, 1980).

Indian Cosmetics Industry

According to a review of the industry, the Indian Cosmetics Industry, which includes skin care, hair
care, colour cosmetics, fragrances, and oral care divisions, was valued at $2.5 billion in 2020 and is
anticipated to expand at a rate of 7% in the next years. The beauty market in India is now being driven
by the herbal and plant-based cosmetics sector, which is anticipated to expand at a pace of 7% as
more consumers opt for organic goods over chemical ones. According to beauty expert Shahnaz
Husain, who was the first to introduce the idea of Ayurveda cosmetics to the world when she debuted
her goods in 1970, the focus of herbal cosmetics has been on the phenomenal expansion of the herbal
and ayurvedic beauty products sector. Forest Essentials, Biotique, Himalaya, Blossom Kocchar,
VLCC, Dabur, Lotus, and others are among the many herbal cosmetics brands available in India
today. Despite the worldwide economic downturn, the Indian cosmetics sector had revenues of INR
356.6 billion (US$ 7.1 billion). Improved purchasing power and growing fashion consciousness of the
Indian people have fuelled the Indian cosmetics sector, with industry participants spending freely on
promotional initiatives to raise customer awareness and enhance their goods.
According to a new study report, the Indian Cosmetics Industry is projected to develop at a rapid rate
in the near future as men and women become more concerned about their appearance. Both current
and emerging companies in the sector have bright growth potential today.
The baseline is that the range of items supplied by industry participants in the country has increased.
Companies have begun to expand into rural areas, offering specialised products in order to collect
money from all corners of the country. In the next years, the Indian economy will improve and
strengthen, paving the path for the Indian cosmetics market to grow and expand throughout the
projected period.
In the recent decade, the Indian cosmetics sector, which has historically been dominated by a few
large Indian firms like as Lakme and Ponds, has witnessed a slew of international entries. India is a
price-sensitive market, therefore cosmetics and personal care product businesses, particularly
newcomers, have had to devise new inventive methods to cater to Indian preferences and budgets in
order to get a foothold in the market and carve out a place for themselves. However, limited product
awareness and a lack of desire to spend money on cosmetics, particularly in rural regions, hampered
growth. Local and regional companies' strong pricing competition, which seized volumes with greater
trade margins and substantially reduced offers, has also contributed to the same.

LITERATURE REVIEW
Studies on consumer behaviour are reviewed below:
1. A study on consumer buying behavior of cosmetic products in Kohlapur by KisanShivajiRao
Desai. The study was to analyse the buying process and the effect of media communication
on buying behaviour on consumers. The results showed that different factors have significant
influence on buying behaviour and it also contributes to the knowledge of various cosmetic
companies as they can easily understand the purchasing propensities of consumers.
2. A study on factors influencing consumer buying behaviour in cosmetic products by A.H
Hemanth Kumar, S. Franklin John, S. Senith. The study was to find how consumer behaviour
factors influence the purchasing of cosmetics and to find out the influence of income level on
the behaviour, showed that statistically significant differences were found in income level
among the factors of consumer behaviour, i.e., social and cultural while no statistically
significant difference was found among the personal and psychological factors.
3. Consumer buying behaviour towards cosmetic products by Prof. Nilesh Anute, De. Anand
Deshmukh, Prof. Amol Khandagale. The research was carried out to study the demographic
profile, factors affecting the decision, most widely used cosmetic product, buying pattern and
brand preference of the respondents. The results showed that brand and quality was the most
preferred factor among the consumers while purchasing.
4. Consumer attitude towards cosmetic products by Mrs J. Vidhya Jawahar and D.K
Tamizjyothi. The study was to examine the influence of attitude and to find the major factors
that determine the buying behaviour of a consumer. The study demonstrated that age,
occupation and marital status have positive impact while salary has no critical effect on the
buyers' attitude towards such items.
5. Consumer purchase decision behaviour towards cosmetics marketing by Dr. S Anandrajan
and T. Sivagami. The study was done to find out the influence of various media in motivating
the consumers on a particular brand of cosmetics and to know how the marketing strategy
influences the buying behaviour of the consumers. The results showed that consumers are
aware about the cosmetic products and are slowly shifting towards organic/ ayurvedic based
cosmetics.
 6. A study on consumer buying behaviour towards cosmetic products by Kruti Bhatt and Peenal
Sankhla. The study aimed at identifying the major factors motivating consumer buying
decision toward cosmetic products and to study the attitude, preference and intentions of
consumers while deciding for their purchase. Lastly, the researcher aimed to identify the most
preferred cosmetic brand by respondents. The results showed that people consider quality as
the most important factor to purchase cosmetics and majority of people do not prefer paying
high amount to buy such products
7. A study on consumer buying behaviour of cosmetic product in Thanjavur, Tamil Nadu, India
by P. Rameshwari, R. Mathivanan and M. Jeganathan. The study aimed at investigating the
various factors that have impact on buying decisions of consumers. The results showed that
marketers were required to look for buying habits, preferences, tastes, likes and dislikes of
consumers and then the policies should be made. Lastly, the consumers were found to be
more quality conscious and brand loyal.
8. A study on consumer awareness, attitude and preference towards herbal cosmetic products
with special reference to Coimbatore City by M. Banu Rekha and K. Gokila. The research
aimed at studying the awareness of consumers towards herbal products and find out the
factors influencing their purchase of herbal products. The results showed that there is a
positive correlation between the 2 factors i.e., family income (per annum) and spending on
herbal cosmetics per month. Also, majority of the consumers were found to be brand loyal
and quality specific.
9. Consumers brand preference and buying behaviour of cosmetic products at Coimbatore city
by Dr. T Nagananthi and M. Mahalakshmi. The study aimed at building a relationship
between the demographic factors with the brand preference of respondents towards branded
cosmetic products. The results showed that consumers prefer purely herbal or non-chemical
make-up and care cosmetics. And the study concluded that there is no relationship between
income and spending on cosmetic per month by consumers.
10. A case study on consumer buying behaviour towards selected FMCG products by Dr.
Vibhuti, Dr. Ajay Kumar Tyagi and Vivek Pandey. The research was carried out to
understand the concept and scope of FMCG products for better marketing and identifying the
factors influencing consumer behaviour. The results showed that consumer is largely
influenced by place, product, price, promotion and physiological factors but the effect varies
form product to product.

The phases in the decision-making process for consumers

Consumer buying behaviour is divided into five stages:
1. Recognize the problem or need
2. Information search
3. Alternative’s evaluation
4. Making a purchase choice
5. Post purchase behaviour

Need of Research
 This study's contribution was to provide a clear picture to the "Cosmetic Industry" of how consumers
choose to buy cosmetics goods in various price ranges. It also aids in the understanding of various
companies' customer bases.

The study's objectives

1) To study the demographics of people who buy cosmetics.
2) To study the elements that influence a buyer's decision to purchase cosmetics.
3)  To Study the most popular cosmetic product category among customers.
4) To study consumer purchasing patterns for cosmetics.
5) To study consumer preferences for cosmetic brands.

The Scope of Study

The study examines the purchasing habits and spending styles of people in Bikaner who fall into
several categories of cosmetic consumers.
The following are the key factors that were chosen for the study:
Demographic Profile of Consumers
Gender Wise (Male & Female), Age Wise, Monthly Income Education, Qualification and
Occupational status.
Major Factors identified for detailed study includes
Purchase Style, Brand Selection, Point of Purchase, Location Preference, Brand Loyalty, Brand
Awareness, Factors in Purchase Decision, and Spending Pattern.
Research Design: - Descriptive Research
Sampling Method – Non-Probability Convenience Sampling
Sampling Area – Bikaner City
Sample Size: - 50

Methods of Data collection

Primary Data - Primary Data was crucial to know the consumer buying behaviour towards cosmetics
products. Primary data was collected having face to face conversation using the questionnaire
prepared.
Secondary Data - All relevant secondary data is collected from various sources like Internet, Books,
Magazines, and Articles etc

Method of analysis and statistical tools

A structured questionnaire is used to collect the data. Questionnaire is a sought to be the best tool for
collection of reliable data. The questionnaire consists of multiple-choice questions to achieve the
objective of research. MS EXCEL-2019 has been used to analyse the data.
Tabulation and Data Analysis
The analysis of the demographic variables which were collected through the medium of questionnaire
has been done as per the objectives in the following manner:
1. Gender

Figure 1. Gender of the respondents

It is depicted in the above figure that 55.8% of the total respondents who are the users of
cosmetics products are female while males who are the users of the same contributes only
44.2% of the total respondent rate.

2. Age

Figure 3. Age of the respondents

3. It can be interpreted that out of the total respondents, nearly 92.3% of the respondent
who buy cosmetics product lie in the age group of 15-25 years. Thus, it can be said that
those who majorly demand and buy the cosmetic products are the youngsters.
 3. Occupation

Figure 3. Occupation of the respondents

It is represented in the above diagram that majority of the cosmetics users are the
students as 63.5% of the respondent came out to be students. But this result is majorly
because the questionnaire was mostly circulated among the students and it cannot be
ascertained from the diagram that students are the major users of such product though,
they form a large percentage of the cosmetic users.

4. Monthly Income Detail

Figure 4. Monthly Income of the respondents

It is represented in the above diagram that the people who have income between 0-15,000 and
those who lie in the income level of 15,000-30,000 are the ones who demand and use the cosmetic
products comparatively greater than the other income level. It implies that the products which
are available to consumers are not too expensive, it depends on the choice, preference and habit
of an individual when it comes to cosmetic products.
There are various factors that influence consumer behaviour.
Consumers are the final users of any commodity produced. To enhance the growth and output of a
particular industry it is very important to analyse the factors that influence consumer behaviour. It is
the study of human behaviour which is usually unpredictable but there are certain factors that remains
constant throughout the human life. Thus, such factors need to taken under consideration before
carrying out analysis.

These factors are as follows:

1. Cultural Factors: The way a person behaves depends a lot upon the culture that individual
has been brought up. Basically, it is the set of values that a person learns from his/her parents
or relatives forms his/her culture. For example, it is the culture in India to live with your
parents at least before you are married while in abroad, the children start making a livelihood
for themselves as soon as they become old enough to do so. In a country like India, different
set of cultures can be found. For instance, males in North India prefer wearing trousers and
shirts while males in East India prefer Occupation Student Businessman Corporate Executive
Govt Employee Others wearing Dhoti Kurta. Each culture can further be classified into
various subcultures such as religion, age, geographical area, gender, family status etc.
Cultural factors and Data Collection All the subcategories of culture factors have been
included in the study except the religion and geographical area. These can be associated with
the consumer behaviour regarding cosmetic products in the following way: Age- A 15-year-
old person is not expected to buy an anti-aging cream for himself/herself. Thus, it helps the
marketer to differentiate between the products that can be offered to a 15-year-old and a 30-
year-old person. Gender- It has been seen that males who use beauty products are usually
made fun of in India. Thus, the companies launch a variety of products which are only offered
to the male section of the society. Family Status- People from upper class have a tendency to
buy luxurious or expensive items while a lower-class family cannot afford to do so. Thus, by
offering different range of products all the income sections of the society can be included.
2. Social Factors: Humans always need other people to talk, discuss or even argue on any
topic. This company of other people forms the individual’s social group. Social factors that
influence the consumer purchasing behaviour can be further classified into Reference groups,
Role in the society and Social Status. Social Factors and Data Collection All the subcategories
of social factors have been included in the study. These can be associated with the consumer
behaviour regarding cosmetic products in the following way: Reference Groups: Every person
is influenced by other person in one or another way. Reference groups form that group of
people with which an individual compares himself/herself with. They are further of 2 types:
a) Primary group which includes family, friends, relatives and co-workers. Before
buying any product, a person tends to discuss it with the people, they interact on a
daily basis who have either purchased the same product or have knowledge regarding
that product. For instance, before switching to a new cosmetic brand a person always
collects information about it by mentioning it to their friends and family.
b) Secondary group in which the consumer shares indirect relationship with the social
group. For example, an interaction with a few people in a party. In such cases, if an
individual encounters a person who is wearing a very good perfume, then the decision
making of the individual can be influenced. Role in the society: The decision making
of an individual majorly depends upon the role that person plays in the society. For
example, a CEO of a company is also a parent back home. Thus, his purchase of
cosmetics will depend on both the factors. Social Status: It is very similar to the
 family status of cultural factors, as an individual’s choice also depends whether he
can afford to spend on expensive items or not.
3. Psychological Factors: These are the factors which are related to psychology or the
thinking of an individual. The subfactors which form the psychology of a person are
motivation, perception and attitude. Psychological factors and Data collection All the
subcategories of psychological factors have been included in the study. These can be
associated with the consumer behaviour regarding cosmetic products in the following way:

a) Motivation: Every action is based upon a reason which compelled them to pursue the
action. A person buying local or cheap cosmetic product is motivated to do so as to
match up with the social group he/she is a part of while a person buying branded
cosmetic product is motivated to do so as to make people look up to him/her. Thus,
creating and maintaining an image serves as a motivational factor while purchasing
such products.
b) Perception: It is the way an individual thinks about a specific good or service.
Individuals with similar needs can have different perception towards the same
product. A woman looking for a good lipstick might find a particular shade to be bold
and another woman might find it Gordy. Thus, the former will buy the lipstick and
the latter will not. Hence, it is the difference in perception which gives rise to variety
and deferrization in a product. The perception of an individual can also be made with
past experiences.
c) Attitude: The image an individual create for a particular product can influence
his/her buying decision to a large extent. Individuals always tend to attach a positive
image to branded products and thus, high income people prefer buying those products
rather than going for non-branded products.

Keeping these factors into consideration data has been analysed:

5. Consumption Details- Product Type

Figure 5. Consumption Details- Product Type

It is represented that majorly 82.4% of respondents prefer both Ayurvedic & Herbal and
Organic product, whereas very small percentage of respondents are the users of Ayurvedic &
Herbal product which is 3.9%.

6. The way to get to know about cosmetic products.

Figure 6. The way to get to know about cosmetic products.

In this chart it is represented those respondents majorly uses the internet and got to know
about the cosmetics which is 44.2% and few respondents comes under the category who go
through the magazines and get to know about the cosmetic product which is 5.8%.

7. Consumer preferences for cosmetic products.

Figure 7. Consumer preferences for cosmetic products.

It is represented that 53.8% are aware about the cosmetic products which is used by them
internationally and domestically and very few respondents are those use uses international
products which is 5.8%

8. The amount spent by the consumer on cosmetic products.

Figure 8. The amount spent by the consumer on cosmetic products.

It represents that 45.1% are those users who spends only about 0-1,000 on cosmetics
products and very few respondents spend huge money that is 3000-4000 & 5000 and
above those are 4.74% and 3.16% users.

9. Places from where consumer like to buy cosmetic products.

 Figure 9. Places from where consumer like to buy cosmetic products.

This chart represents, from where respondents prefer to buy their cosmetics products.
60% respondents are the users who prefer online shopping and very least number of
respondents falls under the category of others sources that is 6%.

10.Factor that influences you while buying cosmetic products. (Hair

Care Products)

Figure 10. Factor that influences you while buying cosmetic products. (Hair Care
Products)

This chart represents that 78.4% of the respondents are the users who go for the quality
while buying for their hair care products and very few numbers of respondents get
influence by celebrity as well as promotions ad that is 9.8%.

11.Factor that influences you while buying cosmetic products. (Skin

Care Products)
Figure 11. Factor that influences you while buying cosmetic products. (Skin Care Products)

This chart represents that 82.4% of the respondents are the users who go for the quality
while buying for their Skin care products and very few numbers of respondents get
influence by promotions ad that is 7.8%.

12. Factor that influences you while buying cosmetic products.

(Deodorants/Fragrances)

Figure 12. Factor that influences you while buying cosmetic products.
(Deodorants/Fragrances)

This chart represents that 66.7% of the respondents are the users who go for the quality
while buying for their Deodorants/Fragrances and very few numbers of respondents get
influence by promotions ad that is 5.9%.

13.Changing Brand

Figure 13. Changing Brand

 It represents that 78.4% of respondents prefer to change their products of any brands they
do not stick to only one brand. As there are “n” number of choices so they continue to adapt
these changes and very least number of respondents which is 5.9% those stick to one single
brand as they are called as a loyal consumer.

CONCLUSION
Cosmetic Industry forms a major portion of the entire market in the world. Indian cosmetic
industry includes all kinds of make -up products, soaps, toothpaste etc. and since 1990s after
liberalization; this industry has gained the momentum, touching the mountains and the clouds.
The growth is expected to grow at 20% per annum and this growth is majorly expected from
increased demand of the herbal or the organic products (with the introduction of Patanjali
Products). Many new companies are building their new role and finding a new place in this
industry and the old ones are trying to increase their respective shares in the market. In India, the
overall demand for the cosmetic products tends to increase but the reasons for rapid increase in its
demand may vary. Some may demand due to the skin problems; some may demand due to the
hygienic maintenance (they want to keep their skin free from serious affects like pollution of
India) while some may demand out of the fashion design and so on. So, this study has been
carried out in order to find and illustrate the different factors that would lead to the demand of the
cosmetic products. For simplicity, the factors are divided into 3 broad categories- Social,
Cultural and Psychological. More consumers are entering into the industry of cosmetic products
as seen by the findings of the research study because of the benefits it offers to the costumer such
as glowing and fresh skin, no marks and anti-marks, image of stylish and confident, treated as
updated with the fashion and its following design, healthy skin and so on. In other words, the
main motivating and the influential factors (in terms of average) seen during the entire research is
the information followed by influences and past experiences in affecting consumer behaviour
towards purchasing the cosmetic products. As a result of these motivating factors, consumers are
buying the different types of cosmetic goods. In order to have the more scope of this industry, it is
necessary to increase the awareness among the people regarding the use of cosmetic products and
the benefits provided by them and, if required, to change the mind-set of the people. A huge
buyers and sellers across demographics are buying these products due to the changing lifestyles
that emerge due to the generation gap and the change in the shopping habits.

SUGESSTIONS
In today’s world, the industry of cosmetic products is on its way for touching the mountains and
clouds. Its demand is increasing rapidly due to its increased awareness among the customers. So, the
results of the study can be utilized by practitioners in relooking their strategies for the cosmetic
products. The companies, corporations and the other sellers of the cosmetic products should
concentrate more to the female segments as it has been proved by the results of the study that the
females demand and buy the cosmetic products more as compared to the other section. So, companies
should devise the policies and strategies to magnetize a greater number of people in this segment for
future reference also. Since, there is ever increasing and continuous demand of the cosmetic products
nowadays, it is necessary to make this sector a boom.
So, in order to make it as a boom, the following methods can be followed:
1) India has a strong research and development (R&D) capability so companies should innovate
rapidly to take care of the security issues.
2) In India, the companies and other sellers of the cosmetic products should also try to increase their
business by providing the online portal to their customers in order to purchase the cosmetic products.
Because, mostly people are shopping the goods online due to the convenience and simplicity offered
by the online shopping.
3) For increasing the sale of cosmetic products in the online portal, the consumers should be feeling
comfortable while shopping online. So, the sellers should take into account the factors that impede the
online shopping. One of the most important factors that demotivate the consumer to shop online is the
financial security. So, as a mode of online payment, the alternative methods of payment should be
adopted like cash on delivery (COD).
4) Most of the Indians still have the bad perception for the people who use the cosmetic products on
the regular basis. They feel that those who use the cosmetic products, those who apply the heavy
makeups are not the nice people. Efforts should be made to change this mind-set of the people by
making them aware about its use. They should realise that some people have to use cosmetic products
out of their job duty like the air-hostess has to do it because its works demands that. While on the
other hand, some are using because of the hygienic factors that cosmetic products possess.
5) The efforts should be made to aware the people regarding the benefits of using the cosmetic
products. They should be aware that using some of the cosmetic products on the daily basis is useful
in the city like Bikaner. Those products act as a safety cover for the skin protection against some
serious problems like pollution

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Marketing Vol. 42 Feb 2012, P. 19 - 22.
 APPENDIX

QUESTIONNAIRE
Objective to find how demographic, cultural, social and psychological factors influence
consumer behaviour towards cosmetic products.

1.

2.

3.
3.

4.

CULTURAL
5.
 6.

SOCIAL
7.

8.
PSYCHOLOGICAL
9.

10.
11.

12.
13.

14.