CHAPTER 1

PROBLEM AND ITS SCOPE

Introduction

According to Eze, tan and Yeo (2012), cosmetic became an extensive and popular

category among young and adult people as it identified them with a more relaxed lifestyle,

greater

versatility and comfort. Hassali, (2015) stressed that, Asian market of cosmetics becomes one

of the fastest growing markets which has increased to more than US$70 billion. This statistic

depicts the estimated size of the global skin care market from 2012 to 2025. By 2025, the global

skin care market is estimated to be 189.3 billion USD (Statista Research Department, 2022). The

skin care industry has witnessed a shift from demand from older consumers to a growing

younger consumer base. People are beginning to use skin care at an increasingly young age in a

bid to delay the signs of aging. Cosmetic business imposes the vendor to be acquainted with

existing inclination of Indian beautifying brands among young generation. As reported by

Nielson in 2019, it was found that personal care and beauty shop shoppers are of young

generation, with a well-known amount of student customers (Nielson, 2019).

According to several studies the factors affecting customer loyalty in purchasing beauty

products are as follows; Brand Image, perceived quality, price and promotion. In United States

of America’s Beauty products customer placed product quality as the prime factors of their

loyalty. they defined quality to reliability, durability and ease of use. (Pitman, 2015). Another

contributing factor identified in customer loyalty is the brand.For them a local brand may be
preferred when consumers can identify with others in their community as the local brand is often

positioned to understand local needs and culture besides, global brands have been perceived to

be of higher quality in developed and developing countries (Kumar and Kim 2010). On the other

hand, in the study of Ong et.al. (2010), price is one of the considerations made by consumers to

choose either the local or the imported products, consumers are less in imported products

compared to low price. The successful companies focused on the product‘s price as consumers

always perceive a better value from high price. Finally, De Chernatony (2010) stressed that

advertising is a powerful tool to develop functional and emotional values of brand and is used

primarily by the firms to achieve sales by informing the consumers about new or improved

products.

It necessary to determine the consumer preferences for imported products are always

related to better quality and high reputation. Innamullah (2012), brand satisfaction is a necessary

component of a company's retention strategy. However, Hamza (2011) claimed in his study that

it would be unreasonable to expect unsatisfied customers to maintain a long-term engagement

with the organisation. Therefore, in order to enhance the value of domestic cosmetic brands, a

better view should be highlighted, Akdeniz et al. ( 2013). The Variation in the quality and value

of the customer's products and services affects the brand's satisfaction and brand loyalty. (Fifty-

year-old Mansor).

With the given information above, it is important to conduct this study to determine the

other possibilities and factors that affects the loyalty of a customer. Base on customer behavior

theory, all factors affecting consumer behavior can be divided into two groups: internal and

external. External influences on consumer behavior include culture, demography, values and

norms, social status, reference groups, family and household, climate, economic and political
factors. In most cases, marketers cannot manage these factors. However, they need to know and

consider those factors. Internal factors include a person’s self-image, personal values, cognitive

processes, etc. (M. SALOMON , 2006). This suggest that the purchasing behavior of customer

varies across regions because of differences in cultures and values in a certain With the modern

day, it is no longer enough that a business must retain its position in the market. Indeed in the

context in the localities in the Philippines specifically in Dapitan has lived different culture of

purchasing products, there are lots of competitors in the market that improves their brand and

anme.

Second, According to Nadome (2014), brand satisfaction is measured internally to compensate

for human resources, to monitor performance, and to allocate cash, as well as externally to happy

customers. Customers, public policymakers, competitors, and investors will all benefit from

brand satisfaction (Lin & Wu, 2011). Whereas, there has been no recent local publications that

determine the factors affecting the loyalty of the customers of beauty products. Because of this

study the macro and micro businesses would know what more to consider in achieving consistent

high sales. Therefore this study aims to identify the factors affecting the loyalty of the people in

purchasing cosmetic product in the locality of Dapitan City.

THEORITICAL FRAMEWORK

This study is anchored to Psychoanalytic Theory Psychoanalytic theory traces back to

Sigmund Freud the Austrian founder of psychoanalysis cited (Dibie et. al, 2019). This theory

states that humans are not able to fully understand their own motivations because the

psychological factors that shape them are largely unconscious. Although he himself was not
concerned with consumer behaviour, his theories of human behaviour were revolutionary. He

believed that a major part of the unconscious mind is comprised of strong urges and desires.

Since these desires can cause significant guilt and shame when they surface, people will repress

them. According to psychoanalytic theory, consumers respond to symbolic concerns as much as

they respond to those of economics and function. Freud’s work implies that external factors such

as age and income cannot fully account for consumer behaviour because motivations lay deep in

the psyche. Instead, marketing messages that contain an emotional appeal to consumers’

feelings, hopes, aspirations and fears are often more effective than rational appeals (Kotler,

2002).

Theory of Reasoned Action (1975) The Theory of Reasoned Action was proposed in

1975 by Martin Fishbone and Ice Janzen. This approach was claimed as being superior than

information integration theory. Two key modifications are noticeable. First, Reasoned Actions

adds a behavioural intention as an additional component to the concept of conviction. As does

Information Integration theory (along with numerous others), Reasoned Action is only

focused on behaviour rather than attempting to anticipate attitudes. Additionally, this

strategy acknowledges that there are frequently circumstances (or other factors) that restrict the

impact of attitude on behaviour. Howarth Plan The strategy is simple yet exposes a deep

understanding of consumer knowledge, judgement and beliefs. This resolution building is

significant to responses. This has: Inputs, perceptions, outputs, and exogenous variables.

People need certain facts to make decisions. Buying behaviour studies show that it's vital

because people like communal and public support. These characteristics, such as objectives,

beliefs, and understanding, influence consumers' decision-making. Perceptual preference

occurs when a person compresses knowledge according on his needs and actions.

Contentment or dissatisfaction follow shopping. Redemption boosts brand understanding

and approach. Negative attitudes emerge from unhappiness. Exogenous variables don't affect

the choice technique. They indirectly impact consumers and vary by user. Character, social class,

marketing, and economic standing. All four criteria stated affect decision-making.

Veblenian Social-Psychological Model Economist Thorstein Veblen suggested that

humans are social creatures who conform to the standards of the culture and subgroups in which

they live. He believed that people’s individual needs and desires are created and influenced by

group membership. Veblen focused his theory on members of society’s “leisure class,” whom he

hypothesized were influenced by the desire for prestige rather than utilitarian need fulfillment.

Although critics of Veblen’s theory argue that it may be overstated in scope, the theory still

proves useful. It suggests that marketers should understand the social influences that impact

consumers in order to better comprehend product demand.

The customer purchasing choice interaction is impacted by the individual qualities,

mental and social attributes. This paper centers on various parts of showcasing, authoritative turn

of events and change the board which will frame the reason for additional review. It makes sense

of various showcasing techniques firms embrace to offer their items or administrations to

suitable customers. These procedures consider the idea of business and should be in accordance

with the corporate objectives of the association. Choice of right system is trailed by division of

the market; why and how might the association to work with the objective shopper bunch.

Keeping up serious areas of strength for with client is significant for the progress of the

organization. The investigation of shopper behaviour is fundamental as it assists organizations

with further developing their showcasing systems. It helps in understanding how shoppers think

and feel about various brands and items. What the shoppers are meant for by their way of life,

family and media. It assists the advertisers with adjusting and further develops their showcasing

efforts and promoting systems. The buyer behaviour includes administrations and thoughts and

unmistakable items moreover. (Lars Perner). The customer research chiefly began during the mid

60's the point at which the showcasing supervisors understand that they need to figure out the

reasons for shopper behaviour. They needed to know the various qualities of the customer

behaviour, for example, how individuals get and utilize the data with the goal that the chiefs can

make the advertising procedures. On the off chance that the supervisors can foresee purchaser

behaviour they can likewise impact the way of behaving. Accordingly the information on

customer behaviour is essential for figuring out the buy choices as well as the various choices in

regards to the promoting of the items. (Hawkins at al, 2000). There are various uses of buyer

behaviour. The one is for improving advertising methodologies. The subsequent application is in

the development of public strategy. The third application is with respect to social showcasing

which includes getting thoughts across to buyers instead of selling something. One more

advantage of concentrating on buyer behaviour is that it improves us shoppers. (Lars Perner).

The shopper mentalities incorporate the convictions about a few item, sentiments about the

article and behaviour intensions toward some article inside the setting of promoting. The

shopper's conviction might be positive or negative. The customer purchasing behaviour includes

stages which incorporate issue acknowledgment, data search, and assessment of options, buy

choice, buy and the post-buy assessment. These are the phases of buyer purchasing behaviour

and at each stage the shopper has different way of behaving (Blackwell et al, 2005). It is

extremely fundamental that we ought to comprehend the buyer behaviour at each stage since it
will advise us to adjust which technique at which stage. The theory of the brain science of the

shopper helps in the theories of the way of behaving of the purchaser at each stage. It will help in

the conceiving of advertising procedure at each stage. The purchaser purchasing choice

interaction is impacted by the individual attributes, psychological and social qualities. The client

maintenance is vital. It is connected with the post buy behaviour of the customer. After the

utilization of the administrations or item, the buyers go into the fulfillment stage or the

disappointment. It relies upon the nature of administration. In the telecom area there is a ton of

rivalry in this manner the customers are fulfilled provided that they get as per their assumptions.

To give customers past their assumption is the nature of the assistance (Jane Smith). There are

changing client requests with the progression of time. The prerequisites of the customers change

with the new innovation and the client's needs turned into their necessities. Today, the

organizations center on holding their customers and for holding the customers it is important to

grasp their changing necessities and needs and as per their changing requirements presents

changes in the administrations and item quality

Product Quality

In common stipulations quality refers capability to gratify desires. The managers at

the firm should consider product quality as their primary factor to reinforce customer happiness

and to continue service excellence intensity (Xu, Blankson & Prybutok, 2017). It can be

observed that huge sales product happens due to superior quality of the products. If the product

quality is not good people will reject the products and might switch to other company brands.

Advertising can be considered as a subset of marketing mix (4P) that are place, promotion, price,

and product. For promotion of a product, one of the main strategies used is advertising. In order
to make awareness of a product in the mind of potential customers, advertising is an important

tool and it influences the customer’s decision to buy a product. Abideenand Latif (2011) states

that, through advertising manufacturers create an emotional link with customers and it will long

last in the mind of the consumers. If advertising is attractive, then customers pays more focus on

that and thereby creates a feeling towards the product and that leads to the way of brand

promotion. Those who have loyal feeling show a positive attitude towards a brand. Tang et al

(2007), in his study found that positive response to certain advertising or brand increases the

positive evaluation. Bostan & Nabsyeh, (2012) in their study on Malaysian consumers, observed

that advertising is a strong powerful tool which plays an important part to affect and inform

consumer behavior. Abideenand Latif (2011) in their study paper found that there is an impact of

advertising on consumer buying behavior.

Brand Name

If promotion managers are trying to aim well-informed early adopters for fundamentally

innovative products then superior brand name will escort to enthusiasm to purchase with brand

source (Lee, 2020). As a substitute of several unknown brand names, consumers get

overwhelmed and spellbound to fascinated to procure renowned brand and this is the main

reason for replicate purchase behaviour. According to Abbas, Islam, Hussain, Baqir, and Noor

(2021), Customer loyalty is one of the fundamental reasons for ownership of the business, which

is a major outcome of brand image and the degree of service that they provide to the customers.

As a result, if the firm wants to compete with its rival. To keep customers loyal to their products

and services, they must deliver high-quality goods and services. The brand's overall image

improves as a result of increased product awareness and satisfaction. Marketing is based on the

principle of client happiness. Customer happiness demonstrates how items are given to
customers. When a consumer receives high-quality goods at a reasonable price, he is happier.

And as the client becomes happier, the brand's image improves, and the customer becomes more

loyal to the product

Advertising & Promotion

Promotions refer to the entire set of activities, which communicate the product, brand or service

to the user. Many psychologists help with promotion efforts of products. The idea is to make

people aware, attract and induce to buy the product, in preference over others. According to

Clow (2010), promotion is an important element of a firm’s marketing strategy. Promotion is

used to strategically communicate with customers with respect to product offerings, and it is a

way to encourage purchase or sales of a product or service. Sales promotion tools are used by

most organizations in support of advertising and public relations activities, and they are targeted

toward consumers as final users. Celebrities, athletes, and actresses are known to promote

products to attract more customers Advertising and promotion show a vital role in achieving

defensible reasonable benefit in the marketplace. In India celebrity marketing is an idea of

marketing the brands effectively and efficiently. Firms occupied in fast moving consumer

goods (FMCG) must concentrate extra consideration to the revealing requests if the impartial

of promotion is to certify repetitive buying by the customers and to continue moneymaking

for the long term and builds brand loyalty (Mahmood & Haider, 2020). The target audience

should be recognising them. For example, the well-known celebrities; Anushka Sharma has

been the brand ambassador for Nivea, while Kareena Kapoor played some ads for Lakme.

Price

If the marketer gives more discounts to the customer it will help the decision making of the

customer which can be seen in repeat purchase behaviour of the same brand (Brata et al., 2017).
Few consumers who have elevated brand loyalty will be enthusiastic to pay optimum price aimed

at their preferred brand. The average consumer's first and most important factor, according to

Cadogan and Foster (2000), is brand pricing. They contended that because consumers with high

market loyalty are prepared to pay a premium for their favourite brand, cost has no bearing on

their purchasing decision. Consumers, on the other hand, are so confident in the quality and

value of their own products that they compare and evaluate pricing against competitors' brands

(Keller, 2003).Furthermore, by aligning pricing to perceived costs and values, consumer loyalty

can be increased. When the perceived value of a product exceeds its cost, people may be more

likely to acquire it. According to Yoon and Kim (2000), loyal customers are willing to pay a

premium even if the price has grown since the perceived cost is very high, and they prefer to pay

a higher price to avoid any improvement. Long-term service loyalty relationships make loyal

customers more willing to accept costs, because loyalty discourages consumers from comparing

rates to other items through shopping around. Price has increasingly become the focus of

consumer judgments on the value of the offer as well as on their overall assessment of the

retailer (De Ruyter, Wetzels & Van Birgelen, 1999). Furthermore, in studying consumer

behaviour in terms of pricing, the customer's assessment of price quality is crucial. This is due to

the fact that customers frequently establish a standard pricing for a product and regard a certain

sort of product to be a reasonable price. The regular price that the customer anticipates will then

be used to compare pricing to the skin care company's other brands. Normal commodity prices,

also known as reference prices, are often influenced by the values that consumers recall from the

past, according to Ash and Wolfe (2011). When a customer pays for a commodity rather than

simply viewing or experiencing it in a store, the prior price has the greatest impact on the current

price. Customers frequently confuse the previous sale price with the current one. The most recent
purchase price has the effect of prompting the customer to refer to it and compare the pricing of

old and new skin care products. If the price remains the same as before, the customer will

continue to purchase the skin care product. Manufacturers sometimes increase the price of the

skin care product by improving the product packaging and the size of the product. When moving

down this road, loyal consumers are likely to repurchase even though they must pay a premium

price because the perceived cost is very high and choose to pay a higher price to reduce the

possibility of any adjustment (Bruner, 2000). Brand price is one of the key tools every store must

positively or negatively influence customers. Customers differ widely, some being more price

sensitive and others more cost oriented. According to Omanga (2010) he stated that brand price

has a strong influence on brand loyalty as the results show the positive relationship between

brand price and brand loyalty towards the cosmetic products.

In summary, the literature above suggests how brand loyalty is created for various brands and

products. In addition, the linkages between all the six factors (product quality, features & design,

brand name, service quality, advertising & promotion, and price) and brand loyalty be the basis

for the researchers to conduct this empirical study.

Brand Loyalty

The American Marketing Association defines brand loyalty as “the situation in which a

consumer generally buys the same manufacturer-originated product or service repeatedly over

time rather than buying from multiple suppliers within the category” or “the degree to which a

consumer consistently purchases the same brand within a product class”. A prime example of

brand loyalty in the US is with cigarettes. Americans who smoke prefer to only smoke one brand

of cigarettes. Brand loyalty represents the core of a brand’s equity. Daryl Travis (2000) considers
that brand loyalty is “the ultimate objective and meaning of brand equity”, adding that “brand

loyalty is brand equity”. Moreover, brand loyalty can’t be analyzed without considering its

relationship to other descriptive dimensions of brand equity like awareness, perceived quality, or

associations. First, all the other descriptive dimensions of brand equity can enhance brand

loyalty, as perceived quality, associations and awareness provide reasons to buy and effect

satisfaction. Loyalty could arise from a brand’s perceived quality or associations, but could also

occur independent of thesedimensions (for example, a person can be loyal to a low perceived

quality brand and dislike a brand with a high perceived quality due to subjective reasons). Yet,

the nature of this relationship is unclear. On the other hand, loyalty can induce a higher perceived

quality (e.g., a potential customer has a better evaluation of a brand if that brand is perceived as

having a loyal customer base), stronger associations (the brand can be associated to elements

characterizing its loyalcustomers), or increase awareness (loyal customers tend to provide brand

exposure to new customers through “mouth to mouth” communication). There are seven factors

that influenced consumers’ brand loyalty towards certain brands. The factors are brand name,

product quality, price, design, store environment, promotion and service quality (Khraim, 2011)

Product Quality

Price
Customer Loyalty
Brand Image

Promotion & Advertising

 figure 1.

Schema of the study

Hypothesis:

No: There a significant relationship between the profile of respondents and the level of customer

loyalty

Ha: : There no significant relationship between the profile of respondents and the level of

customer loyalty

Significance of the study

This result of this study on customer loyalty in purchasing beauty care product lies in its

potential to benefit a wide range from business and consumers to academics, investors, and

regulators to include the following:

Beauty care companies. These organizations are the primary beneficiaries as they can apply the

research finding to improve their operation, customer relationship, and bottom lines.

Consumers. Customers in the beauty care product market benefit from enhanced product

quality, personalized services, and improved shopping experiences, resulting from businesses

efforts boast customer loyalty.

Marketing Professionals. Professionals in the marketing field can utilize the studies insights to

refine their strategies and better connect with target audience.

Investors. Investors in beauty care companies can make more informed decisions regarding their

investments by understanding how well a company is positioned to maintain and increase

customer loyalty.

Regulatory Bodies. Regulatory agencies and consumer protection groups can use the research to

establish or refine industry standards and guidelines to protect consumer’s interest.

Academic Community. Researchers and academic can benefit by using the study as a reference

for further investigation into consumer behavior and loyalty in the beauty care sector.

Economic Stock Holders. The study’s findings can have broader economic implications by

contributing to the growth of the beauty care industry, resulting in job creation and overall

economic stability.

Scope and Delimitation.

This study titled the factors Influencing Customer Loyalty in purchasing beauty care product, is

set to be conducted in Dapitan City throughout the period of academic year 2023-2024. The

geographical scope of this research is confined to Dapitan City, Philippines, focusing on

customers who purchase beauty care product. The study primarily aims to examine the various

factors influence customer loyalty in this specific context. Respondents will consist of customers

actively engage in beauty care product purchases within Dapitan City during the designated

research period. Data will be collected through surveys, interviews, and potentially focused

group discussion with this customers, utilizing both qualitative and quantitative research

methods. The research will analyze variables such as product quality, brand perception, pricing,
customer service, and promotional activities aiming to discern their impact on customer loyalty.

It is important to note that the findings will be limited to this geographical area and may not be

directly generalizable to other regions due to potential variations in consumer behavior and

preferences. Furthermore the study is bound for one year time frame which may not capture

long-term trends in customer loyalty. Lastly the study will be conducted in English and Filipino,

which may restrict the inclusion of individuals who primarily communicate other languages or

dialects.

Definition of terms

The following are the operational definition of terms in this study:

Beauty products. In this study the beauty care products being referred are cosmetics, skincare

items, haircare products, and fragrances which are used to enhance personal appearance. These

products covers all that are accessible or available in online shops for Dapitan City Consumers.

Customer. The Customer in this study involved any individual, regardless of gender and

economic status that consistently purchased beauty products from a specified brand retailer

within a the past six months.

Customer Loyalty. Customer loyalty refers to the frequency and consistency of a customer

purchases of beauty products from a particular brand or retailer over a specified period. This

could include a quantitative measure, such as number of repeat purchases of beauty product

within the past six months.

STATEMENT OF THE PROBLEM

This study would like to determine the Factors Influencing the loyalty of customers in

purchasing beauty care products in online shopping in Dapitan City for the calendar year 2023-

2024.

Specifically, this sought to answer the following questions:

1.What is the demographic profile of beauty care products consumers in Dapitan?

1.1 Age

1.2 Sex

1.3 Socio-economic status

2.What is the level of influence does the factors influencing customer’s loyalty in purchasing

beauty care product in online shopping?

2.1 Product Quality

2.2 Price

2.3 Brand Image

2.4 Promotion & Advertising

3. What is the level customer’s loyalty in purchasing beauty care product in online shopping?

4. Is there a significant relationship between the level of factors influencing customer and the

level of customer loyalty in beauty care products in online shopping?

Chapter 2

Review of Related Literature Conceptual Framework The term consumer behaviour is defined as

the behaviour that consumers displays in searching, purchasing, evaluating and disposing of

products and services that they expect will satisfy their needs (Blackwell et al., 2001). The

modern day marketing discussion centres marketing to be consumer oriented and to be

concerned with the needs and wishes of the consumer needs, where studying consumer
behaviour is very critical, for companies, to term how these needs can be used (Agarwal, 2013).

The consumer is considered king in today's scenario of marketing. It is the consumer whose

buying preferences decide what should be manufactured, both in quantity and in quality. Thus a

marketer has to take into account various factors while deciding on which product to market as

consumers have different preferences at different point in time. So the task of manufacturers and

marketers become onerous; and thereby reemphasizing the need to understand the consumer

behavior (Berry, 2010). Kundi (2008) stated that consumer behavior refers to the mental and

emotional process and the observable behavior of consumers during searching, purchasing and

post consumption of a product or service. Consumer behavior blends with elements from

psychology, sociology, socio-psychology, anthropology and economics basically. Consumer

behavior which was earlier termed covered behaviour is a continuous consumption process

related to pre-purchase, purchase and post purchase issues. This refers to the physical action of

consumers that can be directly observed and measured by others (Singh and Singh, 2016).

Solomon and Nancy (2014) asserted that, consumer behavior is the study of the process involved

when individuals or groups, select, purchase, use or dispose products, services, ideas or

experiences to satisfied need and desires. Consumer behaviour is the study of human or

consumer responses to product, services and the marketing of products and services (Frank,

2012). The concept of modern consumer behavior is that people mostly buy products not for

what they do but, what they stand for. This concept implies that the products play some roles

which go beyond their basic functions; and consumers tend to establish a relationships with a

products what they like. The types of relationship a consumer may establish with a product may

take the form of self-concept attachment, nostalgic attachment, interdependent and love

(Solomon and Nancy, 2014). Sproles and Kendall (2006) established a model to conceptualize
consumers decision making behavior with eight consumer mental orientation variables; viz.,

perfectionism, consciousness, brand consciousness, novelty and fashion conciseness, impulsive

and careless consumer, confused by over choice consumer, habitual and brand loyal consumer,

recreational and hedonic shopping conciseness, price and value conciseness. Factors Affecting

Consumers’ Purchasing Decision Consumers seek items to satisfy their basic needs and desires.

Consumer behaviour is much more than studying what consumers buy. It attempts to understand

how the decision-making process goes and how it affects consumers’ buying behaviour (Frank,

2012). Marketers study consumers buying patterns, to solve the problems of where they buy,

what they buy and why they buy. However, why consumers buy a specific product is not easy to

solve because the answer is locked deep within the consumers’ mind (Kotler and Armstrong,

2010). Generally consumers can be categorized into individual and organizational consumers.

Individual consumers try to satisfy their own needs and wants by purchasing for themselves or

satisfy the need of others by buying for them. These individual consumers can come from

different backgrounds, ages and life stages (Kardes et al., 2011). A consumer’s buying behavior

is influenced by cultural, social, personal and psychological factors. Consumer behavior is a part

of human behavior and by studying previous buying behavior, marketers can estimate how

consumers might behave in the future when making purchasing decisions (Kotler and Armstrong

2010). The social, personal and psychological characteristics of consumer behavior.

a. Social Factors and Consumer Behaviour.

Every individual has someone around influencing his buying decisions. The important social

factors are; reference groups, family, role and status (Perreau, 2014). Every consumer as an

individual belong to a group. The group to which a consumer belongs is called a membership
group. This is a direct and simple classification. The second group type is a reference group. The

reference group influences the self-image of consumers and consumers’ behaviour. The

reference group provides some points of comparison to consumers about their behaviour,

lifestyle or habits. Usually, there are many smaller reference groups, which are formed by

family, close friends, neighbours, work groups or other people that consumers associate with.

The groups to which a consumer does not belong to yet can also influence him. These

aspirational groups are groups where a consumer aspires to belong and wants to be part of in the

future (Kotler and Armstrong, 2010). Family members can influence an individual consumer’s

buying behaviour. A family forms the environment for an individual to acquire values, develop

and shape personality. This environment offers the possibility to develop attitudes and opinions

toward several subjects such as social relations, society and politics. A family creates first

perceptions about brands or products and consumer habits (Khan, 2006). For example, the

consumers who had created brand perceptions when they were young, can apply such

perceptions when matters as adult without even recognizing that their family influenced such

perceptions them. Individuals play many different roles in the different groups they belong to.

Each role consists of activities and attitudes that are expected from an individual to perform

according to the persons around him. Social status reflects the position that individuals have in

social groups based on such things as money and wealth, education or occupation. In many

societies, status is important and people want the admiration of others. Social status can be

acquired by being successful in life or being born into a rich family. Product and brand selection

sometimes reflect the social role and status of the individual (Wright, 2016).

b. Personal factors
An individual’s decisions are influenced by personal factors such as age and life cycle stage,

occupation, economic situation, lifestyle, and personality and self-concept. Moreover,

environment, values, lifestyle, hobbies and consumer habits evolve during lifetime. Family life

stages change purchase behavior and brand selection. Traditionally, a family life cycle included

only young singles and married couples with children. Nowadays marketers are focusing on

alternative, non-traditional stages, such as unmarried couples, childless couples, same sex

couples, single parents and singles marrying later in life (Kotler and Armstrong, 2010). It can be

assumed that consumers’ taste can change during lifetime and can influence on brand selection at

different stages of life. A consumer’s occupation and purchasing power influence his purchase

decisions and buying behavior. The income level affects what consumers can afford and the

perspective towards money. People, who share similar occupations, tend to have similar taste in

music, clothing and leisure activities. They usually socialize with each other, and share the same

kind of values and ideas. Income level affects what a consumer can afford as well as his

spending habit (Solomon, 2014). Individuals from lower income groups are probably more

interested in buying products that are necessary for survival than spending on luxury brands or

designer clothes. A consumers’ life style tell how the consumer lives and spends. The product

choices that the consumer make are related to their lifestyles. An individual’s lifestyle consists of

different life style dimensions (Khan, 2006). These dimensions are: i. activities describe how

consumers spends their time, e.g. work, hobbies or vacations; ii. interests are consumers’

preferences and priorities e.g. family, home or food; and iii. opinions tell how consumers feel

about different issues, e.g. themselves, politics or products (Plummer 1974). These life style

dimensions express a person’s pattern of living. Lifestyle will influence consumers’ buying

behavior and decisions (Kotler and Armstrong, 2010). Personality distinguishes one person from
another by individual traits. These individual traits can be self-confidence, adaptability,

sociability and dominance. Personality determines how we see ourselves and the world around us

as well as how other people see us. Attitudes, values and people around us shape our personality.

Personality alters during life when a person grows up and changes surroundings (Wright, 2016).

c. Psychological factors A buyer’s choices are also influenced by four psychological factors, viz:

motivation, perception, learning, and beliefs. A consumer is an individual who has different kind

of needs. These needs can be biological like thirst or psychological arising from the need of

recognition or belonging. A need can be aroused to a sufficient level of intensity when it alters a

motive. A motive is basically a need that drives a person to seek satisfaction. Abraham Maslow

is probably the most renowned psychologist who has examined these human needs critically. He

sought to explain why humans are driven by different needs at different times (Kotler and

Armstrong, 2010). Maslow’s hierarchy of needs has the most pressing at the bottom and the least

pressing at the top. The basic rule is to satisfy the basic need first, before proceeding up the

ladder. When that need has been fulfilled, it stops being a motivator and a person focuses on the

next most important need. Maslow’s needs are: 1. Physiological: basic need such as sleep, food

or water. 2. Safety: need to feel secured and protected. 3. Belongingness: need to feel loved and

be accepted by others. 4. Ego needs: to accomplish something and have status among others. 5.

Self-actualization: to have enriching experiences and feel self-fulfillment.

Cultural Factors

Culture is the fundamental determinant of a person’s conservation and consuption. Companies

often design specialized marketing programs to serve each subculture. This programme is called

diversity marketing. The effect of culture upon a consumer’s behaviour is considerable, and
culture is a factor which has the greatest influence (Agarwal, 2013). Culture creates the

foundation of the individual’s values, opinions and behaviour, and is learnt from the other

members of society or from school and institutions that play a significant part of one’s

environment and these traits constitute what the consumer values, wants are and therefore do

affect the way consumer acts. Culture also consists of different subcultures that group people by

their nationality, ethnicity, geographic location, religious views or by their set of shared values.

By targeting members of a specific culture or sub-culture, businesses can tailor their marketing

mix to match the needs and values of that segment (Kotler et al., 2005).

BRAND LOYALTY Brand identifies and distinguishes the sellers. Brand building creates incredible value

for companies and businesses. In addition, it is important to promise the seller to consistently deliver a

specific set of benefits, features and services to buyers. Best trademarks provide a guarantee of quality

(Kotler 2010). The best branding we've got today is based on a solid idea. The best advertising brands

are remarkably creative in helping them to break through the wall of indifference to create a brand list

of heat and products for people. Brand loyalty helps the organization survive on the market (Ahmed,

2014). Based on the same study, the analyst also indicated that consumers already prefer the company

according to their preferences, including product characteristics, brand image awareness and

marketplace. Consumer satisfaction arises when customers make repeated purchases over a long period

of time (Sidek & Yahyah, 2008) Loyalty shown by consistent purchases by consumers is the key to the

competitiveness of the company (Heim et al., 2001) This study focuses on four factors that influence

brand loyalty. These factors adapted by (Omanga, 2010). The factors include brand price, brand perceive

value, brand satisfaction, and brand trust. According to several research, these factors have a significant

relationship towards brand loyalty. If the product price is consistent, the customer feels motivated to

repeat purchase of the product (Schindler, 1998). According to Chandon, Wansink and Laurent (2010),
however, consumers' past experiences with a retailer will have an impact on their assessment of the

price charged by a retailer. Brand trust impacts brand loyalty as well. Trust is necessary for developing

and maintaining long-term relationships, particularly in the business environment (Mittal, 1994). Brand

loyalty has been characterised as either a behavioural intention toward the brand or a certain pattern of

purchase behaviour, or both, as a result of brand trust (Sidek & Yahyah, 2008). It continued by stating

that brand trust is critical in determining the relationship between overall consumer satisfaction and

brand 2 SHS Web of Conferences 124, 05001 (2021) https://doi.org/10.1051/shsconf/202112405001

ICMeSH 2020 loyalty. Zbooja and Voorhes (2006) discovered that brand trust acts as a moderator in the

relationship between satisfaction and brand loyalty in the retail business. It establishes that a customer's

prior interaction with a product has an effect on their level of satisfaction with that product, resulting in

brand loyalty (Bowden, 2009). Whereas according to Mansor (2010), the goal of providing value to

consumers consistently and more efficiently than rivals is to provide and attract highly satisfied

consumers. Brand satisfaction has been studied extensively as a predictor of customer loyalty (Usman

2010). This overall satisfaction had a strong positive effect on the intentions of brand loyalty across a

broad range of product and service categories (Thaler, 1985). It is an important factor in the company's

long-term relationship with customers. In addition, the brand's perception of value may be linked to

service and product quality (Mansor, 2010). According to Omanga (2010) there have a positive

relationship of brand loyalty and perceive value. BRAND PRICE The average consumer's first and most

important factor, according to Cadogan and Foster (2000), is brand pricing. They contended that

because consumers with high market loyalty are prepared to pay a premium for their favourite brand,

cost has no bearing on their purchasing decision. Consumers, on the other hand, are so confident in the

quality and value of their own products that they compare and evaluate pricing against competitors'

brands (Keller, 2003).Furthermore, by aligning pricing to perceived costs and values, consumer loyalty

can be increased. When the perceived value of a product exceeds its cost, people may be more likely to
acquire it. According to Yoon and Kim (2000), loyal customers are willing to pay a premium even if the

price has grown since the perceived cost is very high, and they prefer to pay a higher price to avoid any

improvement. Long-term service loyalty relationships make loyal customers more willing to accept costs,

because loyalty discourages consumers from comparing rates to other items through shopping around.

Price has increasingly become the focus of consumer judgments on the value of the offer as well as on

their overall assessment of the retailer (De Ruyter, Wetzels & Van Birgelen, 1999). Furthermore, in

studying consumer behaviour in terms of pricing, the customer's assessment of price quality is crucial.

This is due to the fact that customers frequently establish a standard pricing for a product and regard a

certain sort of product to be a reasonable price. The regular price that the customer anticipates will then

be used to compare pricing to the skin care company's other brands. Normal commodity prices, also

known as reference prices, are often influenced by the values that consumers recall from the past,

according to Ash and Wolfe (2011). When a customer pays for a commodity rather than simply viewing

or experiencing it in a store, the prior price has the greatest impact on the current price. Customers

frequently confuse the previous sale price with the current one. The most recent purchase price has the

effect of prompting the customer to refer to it and compare the pricing of old and new skin care

products. If the price remains the same as before, the customer will continue to purchase the skin care

product. Manufacturers sometimes increase the price of the skin care product by improving the product

packaging and the size of the product. When moving down this road, loyal consumers are likely to

repurchase even though they must pay a premium price because the perceived cost is very high and

choose to pay a higher price to reduce the possibility of any adjustment (Bruner, 2000). Brand price is

one of the key tools every store must positively or negatively influence customers. Customers differ

widely, some being more price sensitive and others more cost oriented. According to Omanga (2010) he

stated that brand price has a strong influence on brand loyalty as the results show the positive

relationship between brand price and brand loyalty towards the cosmetic products. BRAND
SATISFACTION Prior research has placed a high premium on brand satisfaction. The majority of them

stated that brand satisfaction and brand loyalty are positively related. Satisfaction with a brand can be

defined as when a company meets or exceeds a set of client expectations. According to Gerpott, Rams,

and Schindler (2011), a consumer's level of satisfaction is determined by the quality of the brand

qualities given by a company. The contentment with a brand that contributes to a company's future

profitability (Moore, Karl, Lewis & David, 1998). Additionally, Moore et al. (1998) argued that brand

loyalty is critical in order to please consumers. Unsatisfied consumers of a firm do not hesitate to switch

brands and will do so immediately upon becoming dissatisfied with the brand itself (Lin & Wu, 2011).

Additionally, low-quality services can result in discontent. According to Cronin, Brady, and Hult (2000),

brand satisfaction is determined by the company's ability to provide high-quality service and products,

and they describe a low-quality service as one that does not meet the need. Increased brand satisfaction

has been demonstrated to have a direct effect on a company's market share, resulting in increased

profitability, good recommendations, and decreased marketing expenses (Klein et al., 1993), as well as a

major effect on the 3 SHS Web of Conferences 124, 05001 (2021)

https://doi.org/10.1051/shsconf/202112405001 ICMeSH 2020 company's image and survival (Aspinall &

Reichheld, 1993). He also notes that despite several attempts to quantify and explain brand happiness,

no consensus on its definition appears to exist. Apart from that, brand satisfaction is often described as

an evaluation of a product or service following its usage (Bitner & Hubbert, 1994). It resulted in a finding

indicating a process in which expectations are compared to perceptions of performance both during and

after the consumption experience (Oliver, 2011). As a result, it is critical for the business to exceed the

customer's expectations in order to retain their business. According to Innamullah (2012), brand

satisfaction is a necessary component of a company's retention strategy. However, Hamza (2011)

claimed in his study that it would be unreasonable to expect unsatisfied customers to maintain a long-

term engagement with the organisation. Variation in the quality and value of the customer's products
and services affects the brand's satisfaction and brand loyalty. (Fifty-year-old Mansor). According to

Nadome (2014), brand satisfaction is measured internally to compensate for human resources, to

monitor performance, and to allocate cash, as well as externally to happy customers. Customers, public

policymakers, competitors, and investors will all benefit from brand satisfaction (Lin & Wu, 2011). Brand

satisfaction can result in brand loyalty, if the link is significant and positive. Omanga (2010) asserted that

brand satisfaction and brand loyalty are positively correlated. Satisfaction with a brand can be defined as

when a company meets or exceeds a set of customer expectations. (2009) (Omanga, 2010). According to

Gerpott et al., (2011), a consumer's level of satisfaction is determined by the type of the brand features

provided by a business. Satisfaction with a brand might help a business earn more money in the future

(Moore et al., 1998). It is critical to satisfy customers in order to retain them. Brand satisfaction does

have a favourable effect on an organization's profitability. BRAND PERCEIVE VALUE Perceived value has

recently piqued the interest of marketing managers and researchers as one of the most powerful

indicators of brand satisfaction and loyalty. Perceived value is a relatively new area of study that is

gaining popularity among marketers. Based on equity theory, perceived value considers the proportion

of a consumer's outcome or input to that of a service provider. (Oliver, 2011). This fascination originates

mostly from the importance that today's businesses have on creating value for their various target

audiences. Customer satisfaction and intents to refer and repurchase are influenced by perceived value

not just during the pre-buy stage, but also after the purchase (Parasuraman & Grewal, 2000). The

subjective concept of brand perceived value might be defined as follows: It can be divided into many

scenes that vary depending on the consumer (Rizwan, 2013), the culture (Assael, 2010), and the

moment (Ravald & Gronroos, 1996). This last appreciation views perceived value as a dynamic variable

that can be felt prior to purchase, during purchase, during use, and after use. The valuations made for

each of these moments were different (Gardial, Clemons, Woodruff, Schumann, & Burns, 1994). Brand

perceived value has been demonstrated to be a strong predictor of brand loyalty, according to Cronin, et
al., (2000). Furthermore, Ravald and Gronroos (1996) claim that value is a crucial component of

relationship marketing and one of the most effective competitive strategies. Perceived value is a key

metric for achieving a competitive advantage, and it's also a key predictor of brand loyalty (Beckman &

Crompton, 1991). However, according to Woodruff (1997), measures of received (attribute) value are

antecedents to total brand satisfaction in his study, and these measures have been shown to connect

well with buying behaviour such as word-of-mouth and purchase intention. The most crucial factor is

that perceived worth can affect a company's profit year after year. According to Eduardo (2008),

organisations attempting to gain consumer loyalty should concentrate on brand perceived value first. It

will assist the company in maximizing profits and earning revenue from the perceived worth of their

brand. BRAND TRUST Trust has been seen as a key element of the brand's success. This is described as

"the average consumer's willingness to rely on the brand's ability to fulfill its stated purpose" (Chaudhuri

& Holbrook, 2001, page no.) More precisely, trust involves consumer perceptions of goods, brands,

services or salespeople, and the establishment where the products or services are purchased and sold

(Belanger, 2002). On the other hand, personal psychologists' confidence as an individual trait, social

psychologists considers trust as a transaction-specific expectation and to the person with whom a

transaction is being made (Lewicki & Bunker, 1995). Indeed, trust has been seen as a vital element in a

good relationship (Parasuraman, 1980). He points out that customers need to feel safe in their

interactions with suppliers and also need to be assured that their relationship is confident that they will

be able to trust their suppliers. It is a significant feature or factor in the creation of quality relationships

formed through creating and sustaining commitments, where customers have assurances that the

products they buy are of high quality and with frequent transactions in return. Furthermore, previous

studies have shown that brand loyalty is a consequence of trust (references) because, for example, if

customers have confidence in and satisfaction with such skin care cosmetic products in a skin care
category, there will be a high probability for them not to turn to another skin care product. According to

Omanga (2010), brand trust has a positive impact on brand loyalty