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Factors Influencing Consumer Behaviour Regarding

Cosmetic Products

Gunjan Mandhanya
Nitika Sana
2023

Bachelors in Business Administration

Supervisor – Ms. Tania mittal
Marketing management

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Abstract
This research paper’s goal is to examine customer purchasing
patterns for cosmetics.

Aim and Method:

The paper analyzes factors influencing the purchase of cosmetic
products among Indian consumers. It collects primary data from
50 respondents in dehradun via online Google forms.

Results:
The study reveals that social factors significantly influence
consumer purchase decisions regarding cosmetic products in
India.

With its enormous potential, the personal care sector is a vital

component of the national economy. One of the biggest
consumer industries in the nation is the personal care sector. In
the past ten years, the Indian consumer’s purchasing power and
disposable income have significantly expanded, creating a niche
for top companies in this industry and causing amazing growth
in this industry.
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Keywords: Cosmetic Products, Consumer behavior, Social,
Cultural, Psychological.

Introduction
Industry of Indian Cosmetics The marketing and product
development sectors of the Indian cosmetics business are
expanding. Consumers in India are moving away from’merely
functional’ products and towards more “advanced and
specialised” cosmetics.The growing consumer emphasis on
grooming and personal appearance is driving the cosmetics
sector. Rapid urbanisation, the introduction of new products,
and rising per capita incomes are all factors in the industry’s
expansion. Increased demand for natural and organic products,
appealing marketing tactics, and cutting-edge packaging designs
are all predicted to boost market expansion over the forecast
period.
Monthly expenditure on cosmetics among Indian consumers
2019 According to the survey carried out by ProdegeMR,
around 43.9 percent of respondents stated that they spent up
to 700 Indian rupees on cosmetics during the survey period.
Revenue in the Cosmetics segment amounts to US$6.27bn in
2023. The market is expected to grow annually by 2.87% (CAGR
2023-2027)
Since 2011, numerous multinational companies have entered
the Indian cosmetics sector, creating a very competitive and
dynamic environment.
Foreign competitors have placed a greater emphasis on product
innovation, brand extensions and relaunches at various price
points, and increased product penetration by expanding their
distribution networks. The major players have reduced their
advertising expenditure, which has allowed them to revise their
pricing strategy and provide free presents to customers in an
effort to keep them.
The primary factors being a wider base’s capacity to purchase
personal care products. Women who are financially
independent, frequently released pertinent products, and rising
beauty consciousness and awareness, particularly among
younger people. However, lack of consumer interest in
cosmetics, particularly in rural regions, had an adverse impact
on growth. Intense pricing rivalry from regional and local
companies, which snatched up volumes with superior trade
margins and deeply discounted products, has also contributed
to the same.
Identification of the problem:
The Indian cosmetic market which earlier had a few major
players including Lakme and Ponds has seen a Lot of foreign
entrants to the market. Thus, with the advancement of trade,
technology and competitiveness in the economy, India being a
price sensitive market has to innovate and fight for its place in
the market and perform up to its potential.
The lack of distribution network leading to products being
available in limited areas of the country and the Psychology of
the consumers attached with the usage of cosmetic products
are the causes of the unexplored potential of the Indian
cosmetic industry. Here comes the role of analysis of consumer
behavior which can Give effective suggestions on overcoming
the challenges faced by the industry. For effective consumer
behavior analysis, the basis of the decisions taken by the
consumers must be clear. It includes the pattern, preferences,
motivation, influence and consumer buying process which
depends on cultural, social, psychological and personal factors
which have to be studied thoroughly.
Rationale of the study
The primary objective of the study is to identify the factors that
affect the consumer’s behavior towards Cosmetic products so
that it could help the Industry to maintain their place in the
market and can meet the Required demands of the consumer
regarding a particular product. In this way, they could retain
their Existing customers and can even increase their customers.
This study identifies not only the factors that affect the
consumers behavior for the purchase of cosmetics But also
provides an answer to the question that who are the users of
such products by taking into account The demographic variables
like age, gender, income and occupation and also examines the
influence of Various factors on the consumer while purchasing
cosmetic products.

Research Questions:

1. What is consumer behavior?

2. What incorporates consumer behaviour? 3. What are the
factors affecting consumer behavior?
3. What components can be included in those factors?
4. What are the socio-demographic characteristics of the
cosmetic product users?
5. What perception do people create regarding cosmetic
product users?
6. What motivates the purchase of cosmetics among
consumers?
7. What role does buying habit play in consumer behavior?
8. Does price effect the purchasing of cosmetic users?
9. What role past experiences play in decision making
process of consumers?

Literature review
 1. A study on consumer buying behavior of cosmetic
products in Kohlapur by KisanShivaji Rao Desai The
study was to analyze the buying process and the
effect of media communication on buying behavior on
consumers. The results showed that different factors
have significant influence on buying behavior and it
also contributes to the knowledge of various cosmetic
companies as they can easily understand the
purchasing propensities of consumers.

Research Gap. The study provides no concrete buse as it is

based on
percentage analysis and no study of factors have been
carried out. Other than that, sample size is too small which
makes the study unreliable.
2. A study on factors influencing consumer buying
behavior in cosmetic products by A.H Hemanth
Kumar, S. Franklin John, S. Senith. The study was to
find how consumer behavior factors influence The
purchasing of cosmetics and to find out the influence
of income level on the behavior. The 4 ETIR1811A02
Journal of Emerging Technologies and Innovative
Research (JETIR) www.jer.org) 13 ©2018 JETIR
November 2018, Volume 5, Issue 11

www.jetir.org (SSN-2349-5162)
results showed that statistically significant differences
were found in income level among the factors of consumer
behavior, Le, social and cultural while no statistically
significant difference was found among the personal and
psychological factors.

Research Gap- The process of factor analysis has not been

carried out to narrow down the non-effective

Factors included in the study.

3. Consumer buying behavior 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.

Research Gap-The results being shown by presentation of

charts, graphs and tables make the study less Reliable.

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 behavior 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.

Research Gap- The number of respondents recorded being

very low makes the study unreliable and one Of the major
findings of the study (income being insignificant) is
opposing various other studies that Were carried out at
the same time.

5. Consumer purchase decision behavior 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 behavior of the consumers. The results
showed that consumers are aware about the cosmetic
products and are slowly shifting towards organic/
ayurvedic based cosmetics.

Research Gap- The paper mainly focuses on the marketing

factor of the consumer behavior and ignores the various
other important factors which influence the decision
making of the consumers regarding cosmetics.

6. A study on consumer buying behavior 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

JETIR1811A02 Journal of Emerging Technologies and

Innovative Research (JETIR) www.jeti.org 14 ©2018 JETIR
November 2018, Volume 5, Issue 11

www.jetir.org (SSN-2349-5162) 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.

Research Gap-Low number of respondents leads to

unreliability in data.

7. A study on consumer buying behavior of cosmetic

product in Thanjavur, Tamil Nadu, India by P.
 Rameshwari, R. Mathi vanan 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.

Research Gap- The study is not backed by any statistical

analysis and is purely based on comparisons through
tables and rankings. Other than that, the number of
respondents being very low makes the study unreliable.

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 ie., 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.
Research Gap- The study does not give reliable results
because the data sample size is too small (50)
Respondents).

9. Consumers brand preference and buying behavior 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.

Research Gap- Even though the study was purely backed

by statistical tool, the results were opposing Various
studies as it proved income and expenditure to be purely
uncorrelated regarding cosmetics.Other than that, the
sample size was small so as to make the study reliable.
Objective of the study :
1. To study the Social, cultural and psychological factors
affecting consumer behaviour.

2. To study the preference for cosmetic Products.

3. To study the purchase pattern of consumer for cosmetic

Products.

Scope of the study

The study analyses the consumer behaviour, purchase pattern
and consumer perception towards the cosmetic Products.

Demographic profile of consumer

1. Gender wise (male/female)
2. Age wise
3. Monthly income
4. Occupation
Major factors identified for detailed study includes

1. Brand selection
2. Purchase style
3. Spending pattern
4. Brand awareness
5. Brand loyalty
6. Location
7. Factors in purchase decision

Research design – Objective (MCQs)

Sampling method- forms/questionnaire

Method of analysis and statistical tool (data

collection)

A structured questionnaire is used to collect data.

Questionnaire is sought to be the best tool for collection of
reliable data.
The questionnaire consisted of many multiple choice questions
to achieve the objective of research.

Now, let’s understand the consumer behaviour and consumer

perception and purchase path regarding the cosmetic Products.
Consumer behaviour
Consumer behaviour refers to the action and decision that
people or household make when they choose, buy, use and
dispose off a product or service.

The consumer decision making process model:

According to survey, consumer behaviour has 3 key points.

1. Satisfying need is the goal.

2. It can be influenced by external factors – include culture,
social class, family, reference Groups etc.
 3. Different people have different behaviour- Marketers
utilize market segmentation According to the unique
behaviors of different people.

Consumer perception
Consumer perception is the opinion, feeling and beliefs
customer have about the brand. It plays an important role
in building customer loyalty and retention as well as brand
reputation and awareness.

Factors affecting consumer perception:

According to pantano (2011) model of consumer’s perception
refers to a perception process of branded products which
focuses on 3 factors:-

1. Consumer’s own characteristics (principles and

religious views, ideas, lifestyle, etc)
2. Product characteristics (physical attributes, brand,
cost, etc)
3. Place where it is sold (in terms of arrangement,
product exhibition)
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

2. Occupation:
 It is represented in the above diagram that majority of the
cosmetic users are the students as 96.1% of the
respondents 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

3. Factors affecting consumer behaviour while purchasing

cosmetic products.
 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.

4. Social Factors and Data Collection

 Primary group - includes family, friends, relatives and
coworkers.
Before buying any product a person tends to discuss it with
the people they interact on a daily basis who have either
purchased.

Secondary group - 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.

5. Psychological factors and Data collection

 Creating and maintaining an image serves as a
motivational factor while purchasing such products.
As we can conclude, the majority of the people depend on
the NEED of the product to actually buy the product.

FINDINGS OF THE STUDY:

1. Most of the purchasers of cosmetic products lie in the age
group of 15-25 years. It implies that youngsters form the
major portion of the consumers who are buying the
cosmetics products. This may be because of the reason
that youngsters are more prone to the cosmetics products.
Nowadays, they are the one who are demanding the
cosmetics products very frequently and are using them on
the daily basis in order to get fit with their fashion designs
and lifestyles. So, the reason that lies behind this
distinction that youngsters buy the cosmetic products the
most is the generation gap between them.

2. One of the other important finding of the study is that

Gender, as one of the variables of Demographic factor
does impact frequency of purchase of cosmetic products
by consumers. Females contribute a comparative greater
proportion of the purchase of cosmetic products. This may
be due To the fact that females are more aware of the
 fashion and its following design pattern and, therefore, Are
demanding the cosmetic products more as compared to
the other section of the society.

3. Majority of the cosmetic users are the students. It may be

due to the fact that today’s generation is

More attracted to the use of cosmetics products in their daily

routine life and they are influenced by The attractive
advertisements of the companies, corporations and the other
sellers of the cosmetics product of their respective brands.

4. It’s not that the people who are buying the cosmetic
products should have a decent and handsome income
level. Anyone who has moderate level of income can buy
the cosmetics products. This may Implies that the goods
which are available to the consumers are not very
expensive. Rather, it may be possible that they are
available at cheaper rates due to the discounts and
schemes offered on the Particular brand product by the
company itself. So, it all depends on the preference and
the opinions Of an individual when it comes to the
decision regarding the purchase of cosmetic product.

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 maiintenance (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 behavior towards purchasing
the cosmetic products. As a result of these motivating factors,
consumers are buying the different types of cosmetic goodsIn
order to have the more scope of this industry, it is necessary to
increase the awareness among the people evading the use of
cosmetic products and the benefits provided by them and, if
required, to change the Mind-set of the people. A Image buyers
and sellers across demographics are buying these products due
to the Emerging lifestyle that emerge due to the generation
gap and the change in the shopping habits
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