RELATED LITERATURE (INTRO PART)

The brand aforementioned in the preceding paragraphs has one thing that is certain—it
has a good name in the beauty industry. Considering the beauty brand, could there be a
significance when it comes to brand which makes the people buy their products? In a study
conducted by Isik and Yasar (2019), entitled "Effects of Brand on Consumer Preferences: A study
in Turkmenistan", wherein the findings suggest that a brand name has a significant relationship
with customer preference. The product's brand name has a correlated effect on the overall
preferences of the consumers.
Consumer preference can be defined as how consumer rates a collection of goods or
services or how consumer chooses a specific goods or services instead of another. Consumer
buying behavior can be defined as a decision-making process that people involves to and the
what actions they do to fulfill their needs and wants in the marketplace. However, there is no
single standard of behavior. Every consumer has different behavior that are influenced by
psychological factors such as motivation and also because of environmental and situational forces
(Anojan and Sabuskaran, 2015).
According to Khasawneh and Hasouneh (2010), customers recognize the reputation of
brand, while their buying decisions and customers demographic features have no significant
relation and influence on brand awareness. People favor the branded goods with upper prices
because they study that branded goods have more value than local goods.
Brand image takes place when brand associations held in the mind of consumers are
conveyed onto a consumer’s perception about a brand. These associations can either be
developed from direct experience with the product, from the information communicated by the
company, or from previous associations held about the company and origin, etc. (Martinez et al.
2003).
 CHAPTER II: REVIEW OF RELATED LITERATURE

One of the most important links to the customer is brand, as brand has all the
characteristics that fulfills the need of people and company aim should be to create a brand name
which relates the customers positively (Hillenbrand, Alcauter, and Cervantes, 2013).
Nepalia (2011), mentioned that to accomplish the brand means to apply marketing tackles
for particular goods. If brand will be managed effectively, product value and brand loyalty will
also be enhanced in a customer’s mind. Similarly, Tam (2007), said that brand is used as a
valuable asset and an attractive trick to capture consumers for specific goods.
Furthermore, Doostar, Akhlagh, and Abadi (2012), said that brand is an important tool
that helps out corporations to receive a competitive advantage. Brand strength is a
multidimensional structure with customer opinion. Brand assets with a distinguished quality and
rate have a progressive and direct link with customer purchasing behavior.
Due to technological advancements and accelerated competitions, the target market for
many organizations has been shifted from local markets to international markets; therefore,
multinational organizations became more hard working and spending their major budgets in
researching to identify their customer’s preferences, different factors that effecting customers
purchase process to buy particular product or service. Different aspects like consumer behavior,
market structure, brands trust, product acceptance, product adaptability and profit along with the
prevailing culture in certain focused market become the major focus of multinational
organizations.

According to a study conducted by Qi Ma of 2011, L’Oréal and Maybelline are both top
companies that are prominent suppliers in the Chinese market. The L’Oréal company has obtained
Maybelline and has made it to become more capable and captivates the attention of customers.
The company is still expanding its market share through doing efforts in formulating new cosmetic
products, innovating with the technologies to make cosmetics and making the right marketing
promotions. Maybelline is an outstanding brand that offers various types of cosmetic products in
our present times. The cosmetic market is one of the greatest enlarging market sections that has
a tough competition and that is continuously growing during the last few years. The goal of this
study was to explore the consumers preference and brand awareness of cosmetic products in
Calitut City. It is shown that Maybelline brand has a very good market and brand choice (Ramya,
2019).
 Consumer behavior in buying pattern differ when it comes to the product, price, features,
quality, quantity, packaging, lifestyle, and status. It can also be inspected on the base of brand
consciousness, relationship and loyalty. However, youth is the most complicated group to
correspond with. The youth changing preference affect the buying pattern because they mostly
follow the rhythm of fashion and taste according to the shifting time. Therefore, marketers spend
millions on market research every year to identify and predict the changing youth behavior. With
the continually flourish of varieties in cosmetics, the youth encourage with the flavor of
attractiveness through affordable price and changing trend in the market. All these make it
extremely difficult to understand and target their behaviors.

During the 1940s, cosmetics company executives began targeting specific groups of
consumers by age and other demographic factors. Ads for cosmetics were placed in magazines
that teenagers read. Marketing experts helped the industry to gear certain products to that young
market, packaging them in a way that would appeal to teens, and offer them at prices young
people could afford. Inexpensive lipsticks were among the first of these products (Sherrow, 2001).
At present, annually, the Philippines’ cosmetics market is reportedly growing annually by 15 to
20%.

In India, where its cosmetic industry is one of the growing industries, marketers should
be aware of the factors that gives impact on purchase decision, along with the attitude, perception
and learning habits of customers regarding cosmetics. Studies show that the most essential factor
that people always consider in buying cosmetics is the quality and the advice of beauticians.
People sees cosmetics as the essential part in everyday life which is a positive perception for
marketers of cosmetic product (Bhatt and Sankla, 2017).

By examining how facial image and cosmetic usage determine brand perceptions,
companies can improve their marketing strategies to enhance customer satisfaction and increase
their customer base. Moreover, by identifying the brand personalities that attract consumers,
companies can pin‐ point the characteristics customers look for in a product, which in turn, can
be used to enhance brand image. Further research on different age groups and cultures should
be conducted to better understand cosmetic consumers.

Malik, Ghafoor, Iqbal, and Ali (2013), mentioned that brand image has solid progressive
control on customer purchasing behavior as it is an implied method that can modify people’s
purchasing behaviors positively and people are becoming more attentive for brand-named goods
to show off their character sign. If persons will be well conscious about the brand and they have
decent brand view, reliability, and association, then routinely, brand image will be extra and
stronger in their minds, and that brand will develop the part of their purchasing behavior.
Advertisement is a large promotion weapon to attract consumers and to stay in the consumer’s
mind.
Most of the analysts have seen that brand awareness is a component that contributes to
the consumer's decision of a brand. Many analysts have seen brand awareness as a component
that assumes a basic part in consumer’s decision of brand. In (Lin and Chang, 2003), the findings
of their study assured that consumers buying decision is greatly affected by brand awareness.
(Hoye & Brown,1990) as referred to by (Lin and Chang, 2003) their study has classified the
importance of brand awareness in consumers decision making process and the results of the
study stated that brand awareness was an influential element. The study has shown that
traditional media and social media have positive impact on brand awareness.
A study conducted by Farris et al. (2010), shows that brand image and its awareness
through target market affects consumers purchase decisions. Research shows that brands with
highly associated to brand image and awareness among consumers are likely to be bought again
by the consumers (Hoyer, Wayne, D., & Steven P. Brown,1990). Therefore, brand awareness can
be considered as a significant contributor for inducing repeat purchase behavior in the consumers
(Macdonald, Emma, K., & Byron M. Sharp, 2000).

Forming a positive brand popularity regarding a product will make companies lessen the
level of customer dissonance. For the companies to increase the positive brand popularity, they
should concentrate on techniques in promotion. Positive brand popularity helps the customer to
engage in the purchase process by reducing the pre-purchase dissonance in customer's mind.
Creating brand popularity can be done through different promotional activities as many
companies are allotting their profit in promoting their product.

Doostar, Abadi, and Abadi (2012), reiterated that brand fairness has a positive impact on
buying decisions and popularity. Customers feel by heights of brand equity for the first time after
use and then tend to make buying decisions. They use brands that they are slightly aware with
its name and express value. Dimensions of brand fairness have a positive impact on buying
choices.
Additionally, brand loyalty represents the core of a brand’s equity. 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’. Seven factors influenced consumers’ brand
loyalty towards certain brands. The factors are a brand name, product quality, price, design, store
environment, promotion and service quality (Khraim, 2011).
Ayanwale, Alimi, and Ayanbimipe (2005), describes that when there is a number of rivals,
and customers have changed brand selections, producers want to understand the features that
can advantage the attraction of purchasers. Man and woman are both similarly influenced by
promotion for brand selections.
When it comes to advertisements, television ads are most favored by individuals. Firms
should give proper care for publicity in their goods to enhance their market portion. In the modern
companionship, brands not only represent the product or company, but also broadly have a strong
association with distinctly perceived sound property, users’ lifestyle, social class, taste, etc. The
purpose of this medium fundamentally is to create a deeper consideration of what power a brand
name can essentially have, when people effectively go for purchase, they normally choose the
products between specifically different brands, especially private medium like for all intents and
purposes automotive vehicle. Moreover, it also definitely tries to explore the relation between
brands and the consumer option production.
Through different strategies being employed, such as new and traditional media, new
products can increase awareness in the marketplace among consumers. Though traditional
media-based advertising and promotions have the widest reach in the market, it can be expensive
to manage for new products. As a result, companies have launched new techniques to connect
to the consumers in a more personal way while reducing the overall cost incurred (Salcido T.,
2011). Popular new media strategies that are being employed by businesses include using internet
and mobile based network marketing strategies. (Jenkins, H., 2006).

The results of a certain study found that consumers' facial image influenced the total
quantity of cosmetics used but not the variation in quantity in different situations. Results also
indicate that a relationship exists between facial image and brand perceptions. Also, it was found
that a different group of brand personality traits influenced brand attitude for each cosmetic brand
(Guthrie, Kim and Jung, 2008).
On customer buying decisions, five factors were identified to have greater impact on it-
product, product price, brand name, product packaging and advertising. The behavioral approach
in consumer buying behavior are influenced by environment, culture, education, income level,
age, life style, family, and others (Richardson John E, 2005). According to Moses (2000), teens
selects “right” brands in order to be part in the group of their peers. Moreover, social factors
including reference groups, family, role and status, influence individuals in their buying decisions
(Perreau, 2014). Consumers go through the rigorous thought processing making their buying
decisions, since there are alternative products which compete in the area close proximity,
relatively cheaper price, quality, and the like. Consumers get background information and
attributes to different brands by reading newspapers or watching television (Kotler, 2003). Brand,
Quality and price are one among the strong competing factors in the decision-making process.
When it comes to beauty products, it is even more intense that all the five factors play a major
role in consumer buying decision. Additionally, a study of consumers’ brand preference and buying
behavior of cosmetic products conducted by Researcher Dr. Nagananthi T., and Mahalakshmi M.
(2016), shows that personal care is one of the most essential reasons for buying cosmetics.

Cadogan and Foster (2000), states that price is the most important concern for the
average consumer preferred brand that is why their purchasing intention is not affected by price.
Currently, people are falling for quality, branded and cheap priced products. Early day’s price was
the only factor in the mindset of people. But now, all these factors have a major role in dominating
the market. Consumer satisfaction can also be built by comparing price with cost and values. If
the value of product is greater than its cost, then the customer will purchase the product. Yoon
& Kim (2000), specifies that loyal customers will pay a premium even if the price has increased,
because the risk is very high, they prefer to pay higher price for avoid the risk of any change.
(SOP3) Khraim (2011), states that product quality plays a very important role in influencing
consumer to be brand loyal customers. Consumers preferred brand name, product quality, price,
promotion, store environment and service quality as related factors attributable to brand loyalty.
All these factors showed positive relationship with brand loyalty.