CHAPTER 1: CHAPTER

INTRODUCTION

1.1 Background
The word “cosmetics “is derived from the Greek word kosmetikos which means “skilled at
decorating “. Cosmetics colloquially known as makeup or make-up are care substances used
toenhance the appearance or odor of the human body. The U.S., the Food and Drug
Administration(FDA), which regulates cosmetics, define cosmetics as intended to be applied to
the human bodyfor cleansing, beautifying, promoting attractiveness, or altering the appearance
without affectingthe body's structure or functions." Producers and marketers tend to motivate
consumers intentionto buy products through various promotional methods and marketing
strategies. In recent years,with the advancement of women's economic status and self-conscience,
buying has increased(Dong et al , 2011). According to Kollat and willet (1967) women tend to
engage in moreimpulse buying as compared men. Hence, it is important to learn the factors which
determinefemale consumers buying cosmetics products.

Consumer preference is defined as the subjectivetastes of individual consumers, measured by

their satisfaction with those items after they’vepurchased them. This satisfaction is often referred
to as utility. Consumer value can bedetermined by how consumer utility compares between
different items.Consumer preferences can be measured by their satisfaction with a specific item,
compared tothe opportunity cost of that item since whenever you buy one item, you forfeit the
opportunity tobuy a competing item. The preferences of individual consumers are not contained
within thefield of economics. These preferences are dictated by personal taste, culture, education
and manyother factors such as social pressure from friends and neighbors. For example, someone
whoprefers to own a specific brand of a smartphone because her friends all have the same
brand.Consumer behavior is the study of consumers regarding what they buy, when do they buy,
fromwhere they buy, how frequently they buy, and how they use certain products. But the study
doesnot stop here as it also goes further to study the post purchase and evaluations of
theconsumers. The consumer will respond according to the product quality and reliability,
thefundamental understanding of products is necessary to understand the product features,
productsreliability and product benefits (Baker, 2004). The consumer is the end user for the
product; consumers buy the products in market; in order to perform successful sales operations in
themarket an effective distribution channel and networks are required for the
organizations.Distribution channels and networks play an important role in the consumer goods
industry.Consumer is the ultimate user of every product, without any consumer there is no market
as such(Baker, 2004). The consumer does not compare the products' advantages and
disadvantages ateach purchase occasion, but is lead by previous experiences and acts out of
habits. Onlywhenthe consumer really takes the time to value a new product does consider factors
such as price,taste and quality. Consumer behavior is the behavior that consumers display in
searching for,purchasing, using and evaluating products, services & ideas which they expect will
satisfy theirneeds. Consumer behavior encompasses a vast area including consumption pattern,
consumerpreferences, consumer motivation, and consumer buying process & shopping behavior.
Thepurchase decision is influenced by various factors such as social, cultural, demographic,
personal,economic etc. So for effective marketing, the marketer must know the basis of decisions
taken bycustomers.

There are three sections of consumer behavior that need to be addressed carefully:
psychologicalinfluences, socio-cultural influences and situational influences. The marketers have
to go througha number of challenges in selling products like „cosmetics‟ as they have to be
applied directly onhuman skins, body and other parts. There is a perceived risk of dissatisfaction
in the consumersas far as its benefits are concerned. It is necessary to study the consumer buying
decision processin this regard.

1.1 1.2 Statement of the Problem

Through this study, the researchers aim at analyzing the consumer preferences for cosmeticssuch
as bathing soap, face powder, shampoo, hair oil, face cream, nail polish, body cream etc.These
days number of customer buying from mall has been increased. Also the frequency to visitthe
mall has been increased substantially. People are more brands conscious and they aresatisfied
with the range of products available there. As there are many brands of cosmetics existin our
market, it is difficult for our client to understand customer preference of different brandsof
cosmetics. Hence, the researchers are interested in finding out the customer preference
ondifferent brands that exists in our market. This finding will not only be able to benefit
bothforeign and domestic companies who have the willingness to enter the market but also
various retailers who want to expand sales. This will help us to know that the consumers want
qualityproduct, good services, easy availability of product and better performance by the product.

1.2 Research Questions

1. What are the factors that influence consumer’s preference on buying cosmetics?

1.3 Objectives of the study

The objectives of the study are to understand the following:

1. To find out whether the customers are satisfied with the brands available at present.

2. To identify the consumer preferences for cosmetic.

3. To study factors affecting buyers decision for purchasing cosmetic products.

4. To determine the most widely used cosmetic product category amongst customers.

1.4 1iterature Review

Literature review is the studies of the past research to find out about the research subject and
alsoto know that if the certain topic has been researched or not. The primary purpose of
literaturereview are to learn how others have defined and measured key concepts, to identify data
sourcesthat other researchers have used, to identify potential relationships between concepts and
toidentify researchable hypothesis. The literature survey also provides the foundation
fordeveloping a comprehensive theoretical framework from which hypothesis can be developed
fortesting. The advantage of reviewing the literature applies to the design phase of your project.
1.4.1 Customer satisfaction
Consumer satisfaction is a measure of how products and services supplied by a company meet
orsurpass customer expectation. It is defined as the number of customer or percentage of
totalcustomers whose reported experiences with a firm its products or services exceed
specifiedsatisfaction goals. It is a measurement is a measurement used to quantify the degree to
which acustomer is happy with a product, service or experience. If we don’t measure
customersatisfaction, you can’t identify unsatisfied customer. We can’t analyze their feedback,
makechanges to the product or services to make them happy, and can’t predict or prevent
customerchurn.

1.4.2 Consumer Decision Making

The consumer decision making process consists of mainly five steps according to
mostresearchers within the field (McCall et al., 2002; Cross 1999; Peter and Olson 2005, p.169;
andHawkins et al., 2001). The steps included in the model are; need or problem
recognition,information search, evaluation of alternatives, purchase and the post-purchase
process. However,not all purchased require every step (Cross 1999, Peter & Olson 2005, p.168).
Consumer canskip the evaluation of alternatives when considering low involvement products
(Peter & Olson2005, p.168). According to Hawkins et al. (2001, pp.26-27) there are more aspects
than onlydecision making process that affect consumer behavior which are external and internal
influences.External influences are social class and reference groups while internal factors are
motivation,exposure, attention, perception and attitude.

Strebel et al. (2004), proposed that the probability of making a decision is significantly
lowerwhen consumers are frustrated with the pace of technological change.

1.4.3 Consumer preference on buying cosmetics

"Consumer preference" is a marketing term meaning a consumer likes one thing overanother.
Dolekoglu (2008) and Mucuk(2001) According to the report, with the exception ofcleaning
products, consumer loyalty to private brand products was found to have increased forproducts in
all categories. Despite the growing demand for private brand products, consumers have different
reasons for their preferences that are sensitive to product type and price, and thesocioeconomic
status of consumers. Jack and rose (2000) it would be difficult and almost appearances of the
maincharacters combining varying views,(e.g., price, taste ,quality, hygiene etc.) as well as
thedynamic design ,colors, and sounds of the machine in that vending solution, which may have
asignificant impact on consumers preference. Monirul I. & Han J.H.,(2012) states the demand
ofcoffee is more than tea and earning good amount of profit. It is assumed that about 20
billioncups of hot drinks are sold every year. Understanding behavior of consumers is a key to
thesuccess of business organizations. Marketing personnel are constantly analyzing the patterns
ofbuying behavior and purchase decisions to predict the future trends. Consumer behavior can
beexplained as the analysis of how, when, what and why people buy. According to
GlobalCosmetic Industry report the advanced education provided by brands about the
products'ingredients and benefits have made today's consumer more aware of what they’re
putting ontheir bodies, and making them more willing to pay. Consumer behavior 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).
Conclusion: Consumer’s behavior on buying cosmetics can be differentiated by the lifestyle
ofpeople, price, brand image, advertisement, quality features, packaging etc. Some of them are
asfollows:-

1.4.4 Lifestyle
It is a way of living that is identified by how people spend their time and resources, what
theyconsider important in their environment and what they think of themselves and the world
aroundthem.(Kerin et al, 2003). The life styles concept provides description of behaviour and
purchasepattern, especially the ways in which people spends their time and money. Personality,
motivesand attitudes also influences lifestyle. (Cant et al,2009). Lifestyle defines a pattern
ofconsumption that reflects a person's choices hoe spend money and time( Solomon, 2009).

1.4.5 Price
Price is so often considered an indicator of quality,Price is the amount of money charged for a
product or services. It is an inevitable factor in determining a products or services.product
advertisements deliberately emphasis a high price to underscore the marketers claims ofquality.
Marketers understand that at time, product with lower price may be interpreted a reducedquality.
At some time, when consumers evaluate more concrete attribute of a product, such asperformance
& durability they rely less on price & brand name as indicates of quality than whenthey evaluate
the product's prestige and symbolic values.

Cadogan and Foster (2000), states that price is most important concern for the average
consumerpreferred brand that why their purchasing intention is not affected by price.
Consumersatisfaction can also be built by comparing price with cost and values. If the value of
product isgreater than cost, then customer will purchase the product.

Yoon & Kim (2000), specifies that loyal customers will pay a premium even if the price
hasincreased because the risk is very high, they prefer to pay higher price for avoid the risk of
anychange said by.

1.4.6 Brand image

Brand image means image of any particular product that set into the mind of consumers
oranything that linked in the memory to a brand. A successful brand image increases the
likelihoodof consumer purchase intention towards a brand. It takes place when brand associations
held inthe mind of consumers are conveyed onto a consumer's perception about a brand.
Theseassociations can eitherbe developed from direct experience with the product, from
theinformation communicated by the company, or from previous associations held about
thecompany and origin, etc. In a product class there are several brands in the market classified
asknown brands and unknown brands. The known brands are again classified into evoked
set(acceptable brands), inept set (unacceptable brands), inert set (indifferent brands) and
overlooked brands. The evoked set refers to the specific brands a consumer considers in making
apurchase within a particular product category. This set consists of the smaller number of
brandsthe consumer is familiar with, remembers and finds acceptable. Consumers may not
immediatelyreduce the number of possible choices in evoked set, but they make several screening
decisions.
1.4.7 Advertisement
Advertisement is a notice or announcement in a public medium promoting a product, service,
orevent or publicizing a job vacancy. It informs consumers about the existence and benefits
ofproducts and services, and tries to persuade consumers to buy them. The goal of advertising is
topersuade the consumer to do something, usually to purchase a product. If advertising is to
attractand communicate to audiences in a way that produces this desire result, advertisers must
firstunderstand the consumers. Advertiser’s primary mission is to reach prospective customers
andinfluence their awareness, attitudes and buying behavior. They spend a lot of money to
keepindividuals (markets) interested in their products. To succeed, they need to understand what
makes potential customers behave the way they do. The advertisers goals is to get enoughrelevant
market data to develop accurate profiles of buyers-to-find the common group (andsymbols) for
communications this involves the study of consumers behavior: the mental andemotional
processes and the physical activities of people who purchase and use goods andservices to satisfy
particular needs and wants.

Nilofer (2004), in a study concludes that personality dimensions affect the

advertisementpreferences to consumer behavior of women of different age groups.

1.4.8 Quality
Quality is the standard of something as measured against other things of a similar kind; thedegree
of excellence of something. The consumer may expect price to reflect the quality level ofthe
product. Quality perception may be to do with the materials or components used in theproduct.
Price, quality can be compared objectively, the image of the product and thecontribution of the
chosen item towards needs satisfaction and lifestyle. Consumers were morelikely to switch
brands after the price increased than if they were simple exposed to the higherprice to begin with.
As pricing can influence the decision of consumer to take or drop the purchasing idea by which
they are going for substantial product with low price and perceived quality.

Khraim (2011), state that produce quality plays a very important role in influencing consumer
tobe brand loyal customers.

1.5 Conceptual Framework

Independent Variables Dependent Variables

Price

Brand Image Consumer preference

Advertisement

Quality
1.6 Hypothesis
In order to analyze the customer buying behavior, hypothesis is formulated on the basis

of relationship among variables. Following hypothesis is formulated in this research:

 H01: There is significant relationship between price and consumer preference.

 H02: There is significant relationship between brand image and consumer preference.

 H03: There is significant relationship between advertisement and consumer preference.

 H04: There is significant relationship between quality and consumer preference.

 H05: There is significant relationship between cosmetic product features and consumer

preference.

1.7 Research Methodology

1.7.1 Research design

Research design is the plan, structure, and strategy of investigation conceived so as to
obtainanswers to research question. The plan is the overall scheme or program of the research
.Itincludes an outline of what the investigator will do from writing the hypothesis and
theiroperational implications to the final analysis of data. This research is based upon descriptive
andexplanatory research design. As descriptive research design involves systematic collection
andpresentation of data to give a clear picture of a particular situation.

1.7.2 Population and sample

Population is defined in terms of elements, sampling units, extended time. Since research isbased
upon consumer buying preference on cosmetic, the total population of my study is theconcerned
authorities of cosmetic. Sample is a collection of items or elements from population oruniverse.

1.7.3 Significance of the study

The study is able to provide a concept for cosmetic products better understanding on factors
thatinfluence the consumer’s satisfaction. The importance of the cosmetics are increasing day by
dayfor both male and female. This research is carried out to know the effect of the factors
onconsumer satisfaction. The result obtained from the research can be implied back to back so
thatthe consumer gets more satisfaction and the organization can also fulfill its objectives.

1.7.4 Data collection procedure

Various data collection procedures are as follows:
• Primary sources: Primary sources of data are original data gathered by the researcher for
theresearch project or some other purpose. Primary source of data includes
interviews,questionnaires, observations, or experiments. I will take interviews, make
questionnaires, andobserve people to do this research.

• Secondary sources: Secondary sources of data are those data that are already gathered by
others.Where data have been subjected to interpretation they are referred as secondary sources of
data.

1.7.5 Data Analysis Plan

Presentation of the data in the form of charts and graphs is called data analysis. Data can
beanalyzed through various charts, graphs and diagram.

• Bar chart

• Pie charts

• Correlation

1.7.6 Limitations of the Research

Every research is limited by its imagination is true, but we definitely have some limitations onthis
research. The limitations are as follows:

1. Opinion of the participants is taken as a sense of truth which may not be correct.

2. Due to time constraints smaller sample size is taken.

3. The respondents replied to the queries recalling from their memory. Therefore recall bias
andpersonal bias are possible.

4. The respondents are unable or unwilling to give a complete and accurate response to
certainquestions.

5. The information about the products is not sufficiently available in the internet.
CHAPTER 2: Data Presentation and Analysis

This chapter is based on the analysis and interpretation of data collected during the study. The
analysis is mainly based on the primary data, which were collected through the questionnaire
filled by respondents. The data has been analyzed with the help of SPSS. Through SPSS
descriptive analysis, regression, correlation among the variables have been presented and
analyzed. Data presentation and analysis is an important aspect in report writing. The data
analysis starts with collection of data followed by sorting and processing it. Data are collected
through the primary data and secondary data. Primary data are collected through the questionnaire
method whereas secondary data are abstracted from various books, magazines, sites. Raw data are
collected and they are processed so that it will be easier to analyze the findings. Presenting the
data includes pictorial representation of the data in the form of table, histogram and pie-charts.
Data presentation and analysis will help to interpret the facts and findings of the data that are
collected. Data processing involves placing data into rows and columns in table format for further
analysis.

2.1 Demographics Characteristics

This table and figures shows the number of respondents with the classification on Gender, Age,
Education level, Marital status, Occupation, Buy and Spend. ‘Number’ represents the number of
respondents of each category and ‘percentage’ refers to the respondent’s number in particular
category out of total.

2.1.1 Classification of respondents by gender

Gender Frequency Percent

Male 16 32
 Female 34 68
Total 50 100

Gender
Male Female
32%

68%

The classification of the respondents by gender category is presented where it shows that out of
50 respondents (32percent) are male and (68percent) are female.

2.1.2 Classification of respondents by age

 Age Frequency Percent

Below 20 7 14%

20-30 38 76%

31-40 3 6%

Above 40 2 4%

Age
Below 20 20-30 31-40 Above 40

4%
6% 14%

76%

The classifications of respondents by age group is presented where if shows that out of 50
respondents among which there were 7 respondents below the age of 20, 38 respondents between
the ages of 20 to 30 years, 3 respondents between the ages of 31-40 years and 2 respondents
above 40 years.

2.1.3 Classification of respondents by education

Education Frequency Percent

 Intermediate 11 22%

Bachelor Degree 33 66%

Masters and above 6 12%

Total 50 100%

Education
Intermediate Bachelor Degree Masters and above

12%
22%

66%

The classification of the respondents by education category is presented where it shows that out
of 50 respondents (22percent) falls under intermediate level, (66percent) fall under bachelor’s
level, and (12percent) respondents falls under master’s level.

2.1.4 Classification by marital status

Marital Status Frequency Percent

Single 46 92%
 Married 4 8%

Total 50 100%

Marital Status
Single Married

8%

92%

The classification of respondents by marital status is presented where It shows that out of 50
respondents (92percent) are single whereas (8percent) of respondents are married.

2.1.5 Classification of respondents by occupation

Occupation Frequency Total
Student 40 80
 Teacher 3 6
Entrepreneur 5 10
Others 2 4
Total 50 100.00

Occupation
Student Teacher Entrepreneur Others

4%
10%

6%

80%

The classification of the respondents by occupation is presented where It shows that out of 50
respondents (80percent) are student, (6percent) are teacher, (10percent) are entrepreneur and
(4percent) are others.

2.1.6 Classification of respondents by buying cosmetics

Buy Frequency Percent
 Daily 4 8
Weekly 6 12
Monthly 34 68
Yearly 6 12
Total 50 100

Buy
Daily Weekly Monthly Yearly

12% 8%

12%

68%

The classification of the respondents by buying cosmetics is presented where It shows that out of
50 respondents (8percent) buy daily, (12percent) buy weekly, (68percent) buy monthly and
(12percent) buy yearly.

2.1.7 Classification of respondents by spend

Spend Frequency Percent
 Below 500 4 8
500-1000 23 46
1000-1500 19 38
1500-2000 2 4
Not Prefer to Answer 2 4
Total 50 100

Spend
Below 500 500-1000 1000-1500
1500-2000 Not Prefer to Answer

4% 4% 8%

38%
46%

The classification of respondents by spending money on cosmetics is presented where it shows

that out of 50 respondents among which there were 4respondents who spend below 500, 23
respondents between 500 to 1000, 19 respondents between 1000-1500, 2 respondents between
1500-2000 and 2 respondents does not prefer to answer.

2.2 Descriptive Analysis of Variables

This section provides the information on the consumer preference on buying cosmetics. The
respondents were asked questions on buying behavior.
 Std Deviation
Variables N Mean

50 4.7750 1.31538
Quality

50 3.8600 1.00148
Brand Image

50 4.2350 1.02446
Price

50 3.2000 1.04735
Advertisement

50 3.8350 .91975
Consumer Preference

50
Valid N
Table 1: Descriptive Statistic

According to table, value of mean in each and every table is more than 3 which means they
are all satisfied. The value of mean of quality is 4.7750 which is very satisfied with standard
deviation 1.31538.
The value of mean of price is 3.8600 which are also very satisfied with standard deviation
1.00148.
The value of mean of brand image is 4.2350 which is also very satisfied with standard deviation
1.02446.
The value of mean of advertisement is 3.2000 which is moderately satisfied with standard
deviation 1.04735.
The value of mean of consumer preference is 3.8350 which is also moderately satisfied with
standard deviation 0.91975.

2.3 Inferential Analysis

2.3.1 Correlation Analysis

This table reveals the two tailed Pearson’s between dependent and independent variables.
Dependent variable is CP (consumer preference) and independent variables are Q (Quality), P
(Price), B (Brand image), A (Advertisement). ‘N’ denotes the number of respondents in survey.
Correlations
Variables Consumer Preference
.630**
Quality Pearson
Correlation

.000
Sig. (2-tailed)
50
N
Price Pearson Correlation
.745**

.000
Sig. (2-tailed)
50
N
Brand Image Pearson Correlation .745**

Sig. (2-tailed) .000

50
N
Advertisemen Pearson Correlation .735**
t

.000
Sig. (2-tailed)

50
N

**.Correlation is significant at the 0.01 level (2-tailed).

Table 2: Corelation Analysis

According to table 2, the value of correlation between quality and consumer preference is
0.630 with significance 0.000 which is less than 0.05.Hence there is significant relationship.

The value of correlation between price and consumer preference is 0.739 with significance 0.000
which is less than 0.05.Hence there is significant relationship.

The value of correlation between brand and consumer preference is 0.745 with significance
0.000 which is greater than 0.05.Hence there is no significant relationship.

The value of correlation between advertisement and consumer preference is 0.735 with
Significance 0.000 which is less than 0.05.Hence there is significant relationship.

2.3.2 Regression Analysis

This section basically deals with regression results from various specifications of the models to
examine the estimated relationship of consumer preference with its determinants, quality, price,
brand image, and advertisement.

Model summary

Model R Square Adjusted R square

1 .771 .751

Table 3: Model summary

ANOVAb

Model Sum of Df Mean Square F Sig

Squares

Regression 31.976 4 7.994 37.965 .000a

Residual 9.475 45 .211

Total 41.451 49

Table 4:Anova

Above table is the presentation of model summary of regression. According to table, value of R
Square is 0.771 and value of adjusted R square is 0.751.The value of Adjusted R square
explained that 75.1 percent variation in Consumer preference is explained by four independent
variables. According to table 2.12, the significance is 0 less than 0.5 so it is statistically
significant. Therefore the model is fit.

Coefficients a

Model Unstandardized Coefficients standardized Coefficients

B Std error Beta T Sig

.404 .294 1.374 .176

(Constant)

-.053 .097 -.075 -.542 .590

Quality

.223 .124 .243 1.804 .078

Price

.355 .142 .395 2.495 .016

Brand Image

.412 .072 .469 5.728 .000

Advertisement

Table 5: Coefficient

a. Dependent Variable: consumer preference

Model

P=B0-B1Q+B2P+B3B+B4A
Where,
CP= Consumer Preference
B0= Constant
Q= Quality
P= Price
B=Brand
A=Advertisement

According to the table 5, the B value of the unstandard coefficients is both positive and
negative. Quality has negative relationship with consumer preference with B value (-0.053) and
significance (0.590 >0.05).Therefore 1 percent change in quality affects 0.053 change in
consumer preference negatively. The result is statistically insignificant.
The B value of the unstandard coefficients is positive .Price has positive relationship with
consumer preference with B value (0.223) and significance(0.078<0.05).Therefore 1 percent
changes in price affects 0.223 change in consumer preference positively. The result is statistically
significant.

The B value of the unstandard coefficients is positive. Brands have positive relationship with
consumer preference with B value (0.355) and significance(0.016< 0.05).Therefore 1 percent
change in brand affects 0.355 change in consumer preference positively. The result is statistically
significant.

The B value of the unstandard coefficients is positive. Advertisements have positive relationship
with consumer preference with B value (0.412) and significance (0.000<0.05).Therefore 1
percent change in advertisement affects 0.412 change in consumer preference positively. The
result is statistically significant.

CHAPTER 3: SUMMARY AND CONCLUSION

This chapter deals the brief summary of the entire study and highlights major findings of the
study. Moreover, the major conclusions are discussed in separate section of this chapter that is
followed by some implications and the recommendations regarding the effect of consumer’s
preference factors on buying cosmetics.

3.1 Summary
Consumer preference on buying cosmetics influences the various factors. Cosmetics refer to all
of the produce to care for and clean the human body and make it more beautiful. The main goal of
such products is to maintain the body in a good condition, protest it from the effects of the
environment and aging process, change the appearance and make the body smell nicer. The rising
beauty concerns among both men and women have witnessed a strong growth in the last few
years. Nowadays brand plays a very vital role in consumer buying decision. Branding is
assembling of various marketing mix medium into a whole so as to give an identity. The aim of
branding is to convey brand message vividly, create customer loyalty, persuade the buyer for the
product, and establish an emotional connectivity with the customers. While consumers usually go
for a familiar brand, but the concept of brand transcend beyond a trademark or name. The concept
of brand encompasses much more than trademark. Further consumers of cosmetics are strongly
influence by brand when it comes to choosing it. A strong and clear brand image can increase
consumer confidence and convince consumers to purchase. A consumer is anyone who might buy
a given product. Since a consumer creates demand for the product, the aggregate individual
buyers are called as the market of the firm. Consumers preference refers to any action a consumer
takes towards product or services. This action may be positive or negative. Positive action of the
buyer secures the future success of the company. Meanwhile, the negative actions problems are
primarily responsible for firm failure. According 31 to the L.J Rosenberg “Consumer behavior is
defined as the act of individual being directly involved in obtaining and using economic goods
and services”. The major objective of the study is to identify the major factors affecting the
consumer preference on buying cosmetics whereas the specific objectives are: To study about
what does a consumer thinks when buying cosmetics, To find out whether the customers are
satisfied with the brands available at present, To find out the consumer preferences for cosmetic,
To study factors affecting buyers decision for purchasing cosmetic products, To study most
widely used cosmetic product category among customers. There are number of studies taken
which provides a review of major empirical studies associated with the effect of consumer
preference factors on buying cosmetics. Study has referred to various foreign studies on this topic
to enhance the theoretical background and models used by the previous study. This study is based
on primary source of data. The data was collected through the distribution of questionnaire using
Google sheet. Altogether total of 50 questionnaires were collected. To achieve the purpose of the
study structured questionnaire was prepared. In this study conceptual framework has been done
where Quality, Price, Brand image and Advertisement are the independent variable and
Consumer Preference is dependent variable. This study examine whether there is positive or
negative relationship of each independent variable with dependent variable and this study found
that there is positive relationship with each independent variable. The respondents represent the
consumer preference on buying cosmetics and descriptive statistics, correlation coefficient and
regression method has been used to estimate the relationship between dependent variable such as
consumer preference with independent variables Quality, Price, Brand image, and Advertisement.
The collected data has been processed with the use of SPSS statistical package. The second
chapter includes data analysis of respondents’ profile. The analysis of consumer’s perception with
each five independent variable has been conducted and weighted average mean has been found
for the four cases and then correlation and regression analysis had been done and after that major
finding has been done which includes presentation and analysis of data collected through primary
method and major finding and discussion. The last chapter deals with summary and conclusion.
32 This study also suggests that Price affect the consumer preference. Also Brand impact on the
consumer preference on buying cosmetics. Advertisement also has positively affected the
consumer this indicate that more advertisement is helpful while buying cosmetics.

3.2 Conclusion
The modern market is highly competitive in nature. The consumer is the king in the market. The
importance gained by the individual consumer in the present market compel the marketers to look
the buying habits, preferences, taste, like and dislikes of consumers and accordingly they need to
revise its policies and marketing mix. Every person plays multiple roles in their daily life,
professional role or social role. Each of these roles has a certain effect on consumers buying
behavior. Each role has a particular status in society and consumer behavior is considerably
depended on the status factor .If the marketers easily understand the factors that mainly influence
in buying decision the sales can be increased a lot. While purchase of cosmetic product, the
consumers are found more quality conscious preferred to purchase natural products, they wait for
the brand during non- availability, become emerging as important source of information and in
spite of impact of other factors, the actual brand decision is taken by themselves. The people now
are not considering the cosmetics as luxury. Most of the consumers feel that there were chemicals
in cosmetics, which cause many side effects, and started switching over to ayurvedicbased
cosmetics. The cosmetic manufacturing company after realizing the need of the customer started
ayurvedic based cosmetics. This study enabled the manufactures to know the need and preference
of the customer, which can be implemented by the manufactures to improve their products.
Cosmetic market is one of the best growing market sections which have been competitive and
grown continually during the past few years. Our research is aimed to investigate the consumer’s
preference on buying cosmetic. And we can conclude that, the most of the respondents are aware
about the cosmetic products so Consumers prefer both make-up and care cosmetics which are
purely herbal products or non-chemical products.

REFERENCES

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 APPENDIX

Questionnaire

Consumer’s Preference factors on buying Cosmetics

Dear Respondents,
I am a student currently studying in the Bachelor of Business Administration (BBA). We are
required to do a survey in order to complete our summer project. The main purpose for carrying
out this survey is to gather information from the “Consumer Preference factors on buying
Cosmetics”. Your personal information will be kept confidential and your participation is highly
appreciated.

Gender: Male [ ] Female [ ] Others [ ]

Age: Below 20 [ ] 20- 30 [ ] 31- 40 [ ] Above 40 [ ]

Education Level: Intermediate [ ] Bachelor Degree [ ] Masters and above. [ ]

Marital Status: Single [ ] Married [ ] Divorced [ ]

Occupation: Student [ ] Teacher [ ] Entrepreneur [ ] Others [ ]

How often do you buy cosmetic products?

Daily [ ] Weekly [ ] Monthly [ ] Yearly [ ]

How much you spend on cosmetic products monthly?

Below 500 [ ] 500-1000 [ ] 1000-1500 [ ] 1500-2000 [ ]
Not prefer to answer [ ]

Please tick the option which best describe your opinion/feelings from the following statements.
1= Strongly Disagree 2= Disagree 3= Slightly Disagree 4= Slightly Agree
5= Agree 6= Strongly Agree

Variables S.N Statements 1 2 3 4 5 6

1 I prefer cosmetics which are parabean free

Quality 2 The quality of the cosmetic product is important to

me
3 I am satisfied with the quality of cosmetic products
i wear.
 4 I prefer to buy cosmetics that have natural
Ingredients
1 Expensive cosmetic products are better than
cheaper products
Price 2 I am willing to pay more for cosmetic product if it
consists completely of natural ingredients
3 I tend to buy less expensive cosmetics
4 I buy cosmetic products regardless of its price
1 I buy cosmetic brand depending on my past
Brand experience
2 I have favorite brands of cosmetics
and I buy them again and again
3 Once I like a brand, I stick with it
4 I regularly change the brands of
cosmetics I purchase
Advertiseme 1 Advertisement change my perception about the
nt product
2 I buy cosmetic product after watching its
Advertisements
3 I also buy cosmetic products based on a
recommendation of a sales person or beauty
professional
4 I trust on every advertisement and buy cosmetics

Consumer 1 I prefer to buy cosmetics which have low cost

Preference 2 I prefer to buy high quality product
3 I prefer to buy branded cosmetics
4 I prefer to buy cosmetics after watching the
advertisement