CONSUMER’S PREFERENCE FACTORS ON BUYING

COSMETICS

Submitted By:

Shreya Singh

Exam Roll No: 16030110

A Project Work Report submitted to Pokhara University in partial fulfillment of the requirements
for the degree of

Bachelors of Business Administration

Apex College

Pokhara University

Kathmandu
August, 2018
 DECLARATION

I hereby declare that the project work report entitled “Consumer Preference Factors on Buying
Cosmetics” submitted for the BBA is my original work and the Project Work Report has not
formed the basis for the award of any degree, diploma or other similar titles.

_____________

Signature of the student

Name: Shreya Singh

Date: August 5th

ii
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the Project Work entitled “Consumer’s Preference Factors on Buying
Cosmetics” submitted by Shreya Singh, Roll No: 16030110 for the partial fulfillment of the
requirements of BBA embodies the bonafide work done by her under my supervision.

Supervisor

Name: Anup Shrestha

Date: August, 2018

Coordinator

Name: Yogendra Adhikari

Date:

______________________

Signature of External Examiner

Name:

Date:

iii
 ACKNOWLEDGEMENT

The study entitled “Consumer preference factors on buying cosmetics” has been conducted to
satisfy the partial requirement for the degree of Bachelors of Business Administration (BBA) of
Pokhara University. First of all, I would like to thank my respected supervisor Mr. AnupShrestha
for his valuable time, continuous guidance and inspiration throughout the entire period of the
study. Similarly, I would like to thank my friends who helped me while doing a project, for there
timely suggestions and support. I would like to thank all the faculty members and staffs of Apex
College for the support they gave during the completion of my project work. Similarly, I would
like to acknowledge all the respondents for their support, cooperation, encouragement during the
time of preparing this project work. Finally, I would like to thank my family for the affection and
emotional support which they gave during the preparation of this project work.

Shreya Singh

August, 2018

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 LIST OF TABLES

Table 2.1. Reliability of variables..................................................................................................13

Table 2.2. Classification of respondents by gender....................................................................... 14
Table 2.3. Classification of respondents by age............................................................................ 15
Table 2.4. Classification of respondents by education.................................................................. 17
Table 2.5. Classification of respondents by marital status............................................................ 18
Table 2.6. Classification of respondents by occupation................................................................ 19
Table 2.7. Classification of respondents by buying cosmetics...................................................... 20
Table 2.8. Classification of respondents by spend........................................................................ 22
Table 2.9. Descriptive Statistic...................................................................................................... 23
Table 2.10. Correlation Analysis................................................................................................... 24
Table 2.11. Model Summary......................................................................................................... 25
Table 2.12. Anova..........................................................................................................................26
Table 2.13. Coefficient.................................................................................................................. 27

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 LIST OF FIGURES

Figure 1.1. Conceptual framework of factors affecting consumer’s preference towards cosmetics
......................................................................................................................................................... 8
Figure 2.1. Classification of respondents by gender......................................................................15
Figure 2.2. Classification of respondents by age........................................................................... 16
Figure 2.3. Classification of respondents by education................................................................. 17
Figure 2.4. Classification of respondents by marital status........................................................... 18
Figure 2.5. Classification of respondents by occupation............................................................... 19
Figure 2.6. Classification of respondents by buying cosmetics.....................................................21
Figure 2.7. Classification of respondents by spend....................................................................... 22

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 TABLE OF CONTENTS

DECLARATION.............................................................................................................................ii
CERTIFICATE FROM THE SUPERVISOR................................................................................iii
ACKNOWLEDGEMENT..............................................................................................................iv
LIST OF TABLES...........................................................................................................................v
LIST OF FIGURES........................................................................................................................ vi
CHAPTER 1.................................................................................................................................... 1
INTRODUCTION........................................................................................................................... 1
1.1 Background................................................................................................................................1
1.2 Statement of the Problem:......................................................................................................... 2
1.3 Research Questions:...................................................................................................................3
1.4 Objectives of the study:............................................................................................................. 3
1.5 Literature Review:..................................................................................................................... 3
1.5.1 Customer satisfaction........................................................................................................4
1.5.2 Consumer Decision Making............................................................................................. 4
1.5.3 Consumer preference on buying cosmetics...................................................................... 4
1.5.4 Lifestyle............................................................................................................................ 5
1.5.5 Price.................................................................................................................................. 6
1.5.6 Brand image......................................................................................................................6
1.5.7 Advertisement...................................................................................................................7
1.5.8 Quality.............................................................................................................................. 7
1.6 Conceptual Framework:.............................................................................................................8
1.7 Hypothesis:................................................................................................................................ 9
1.8 Research Methodology:............................................................................................................. 9
1.8.1 Research design:............................................................................................................... 9
1.8.2 Population and sample:.....................................................................................................9
1.8.3 Significance of the study................................................................................................ 10
1.8.4 Data collection procedure:.............................................................................................. 10
1.8.5 Data Analysis Plan:.........................................................................................................10
1.9 Limitations of the Research:.................................................................................................... 11
CHAPTER II................................................................................................................................. 12
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PRESENTATION AND ANALYSIS OF DATA.........................................................................12
2.1 Reliability of variables.............................................................................................................13
2.2 Demographics Characteristics................................................................................................. 14
2.2.1 Classification of respondents by gender.......................................................................... 14
2.2.2Classification of respondents by age................................................................................ 15
2.2.3 Classification of respondents by education..................................................................... 17
2.2.4Classification by marital status.........................................................................................18
2.2.5Classification of respondents by occupation.................................................................... 19
2.2.6 Classification of respondents by buying cosmetics......................................................... 20
2.2.7 Classification of respondents by spend............................................................................21
2.3 Descriptive Analysis of Variables........................................................................................... 22
2.4Inferential Analysis...................................................................................................................24
2.4.1Correlation Analysis......................................................................................................... 24
2.4.2 Regression Analysis.........................................................................................................25
2.5 Results of hypothesis Testing.................................................................................................. 28
CHAPTER III................................................................................................................................ 30
SUMMARY AND CONCLUSION.............................................................................................. 30
3.1 Summary.............................................................................................................................30
3.2 Conclusion.......................................................................................................................... 32
REFERENCES.............................................................................................................................. 33
APPENDIX....................................................................................................................................35

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 CHAPTER 1
INTRODUCTION

1.1 Background
The word “cosmetics “is derived from the Greek word kosmetikos which means “skilled
atdecorating “. Cosmetics colloquially known as makeup or make-up are care substances used to
enhance 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 body
for cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting
the body's structure or functions." Producers and marketers tend to motivate consumers intention
to 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 more
impulse buying as compared men. Hence, it is important to learn the factors which determine
female consumers buying cosmetics products. Consumer preference is defined as the subjective
tastes of individual consumers, measured by their satisfaction with those items after they’ve
purchased them. This satisfaction is often referred to as utility. Consumer value can be
determined by how consumer utility compares between different items.

Consumer preferences can be measured by their satisfaction with a specific item, compared to
the opportunity cost of that item since whenever you buy one item, you forfeit the opportunity to
buy a competing item. The preferences of individual consumers are not contained within the
field of economics. These preferences are dictated by personal taste, culture, education and many
other factors such as social pressure from friends and neighbors. For example, someone who
prefers 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, from
where they buy, how frequently they buy, and how they use certain products. But the study does
not stop here as it also goes further to study the post purchase and evaluations of the
consumers.The consumer will respond according to the product quality and reliability, the
fundamental understanding of products is necessary to understand the product features, products
reliability and product benefits (Baker, 2004). The consumer is the end user for the product;

1
consumers buy the products in market; in order to perform successful sales operations in the
market 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 at
each purchase occasion, but is lead by previous experiences and acts out of habits. Only when
the 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 their
needs. Consumer behavior encompasses a vast area including consumption pattern, consumer
preferences, consumer motivation, and consumer buying process & shopping behavior. The
purchase 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 by
customers.

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

1.2 Statement of the Problem

Through this study, the researchers aim at analyzing the consumer preferences for cosmetics
such 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 visit
the mall has been increased substantially. People are more brands conscious and they are
satisfied with the range of products available there. As there are many brands of cosmetics exist
in our market, it is difficult for our client to understand customer preference of different brands
of cosmetics. Hence, the researchers are interested in finding out the customer preference on
different brands that exists in our market. This finding will not only be able to benefit both
foreign and domestic companies who have the willingness to enter the market but also various

2
retailers who want to expand sales. This will help us to know that the consumers want quality
product, good services, easy availability of product and better performance by the product.

1.3 Research Questions

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

1.4Objectives of the study

The objectives of the study are to understand the following:
1. To study about what does a consumer thinks when buying cosmetics.
2. To find out whether the customers are satisfied with the brands available at present.
3. To find out the consumer preferences for cosmetic.
4. To study factors affecting buyers decision for purchasing cosmetic products.
5. To study most widely used cosmetic product category amongst customers.

1.5 Literature Review

Literature review is the studies of the past research to find out about the research subject and also
to know that if the certain topic has been researched or not. The primary purpose of literature
review are to learn how others have defined and measured key concepts, to identify data sources
that other researchers have used, to identify potential relationships between concepts and to
identify researchable hypothesis. The literature survey also provides the foundation for
developing a comprehensive theoretical framework from which hypothesis can be developed for
testing. The advantage of reviewing the literature applies to the design phase of your project.

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1.5.1 Customer satisfaction

Consumer satisfaction is a measure of how products and services supplied by a company meet or
surpass customer expectation. It is defined as the number of customer or percentage of total
customers whose reported experiences with a firm its products or services exceed specified
satisfaction goals. It is a measurement is a measurement used to quantify the degree to which a
customer is happy with a product, service or experience. If we don’t measure customer
satisfaction, you can’t identify unsatisfied customer. We can’t analyze their feedback, make
changes to the product or services to make them happy, and can’t predict or prevent customer
churn.

1.5.2 Consumer Decision Making

The consumer decision making process consists of mainly five steps according to most
researchers within the field (McCall et al., 2002; Cross 1999; Peter and Olson 2005, p.169; and
Hawkins 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 can
skip the evaluation of alternatives when considering low involvement products (Peter & Olson
2005, p.168). According to Hawkins et al. (2001, pp.26-27) there are more aspects than only
decision 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 lower
when consumers are frustrated with the pace of technological change.

1.5.3 Consumer preference on buying cosmetics

"Consumer preference" is a marketing term meaning a consumer likes one thing over
another. Dolekoglu (2008) and Mucuk(2001) According to the report, with the exception of
cleaning products, consumer loyalty to private brand products was found to have increased for
products in all categories. Despite the growing demand for private brand products, consumers

4
have different reasons for their preferences that are sensitive to product type and price, and the
socioeconomic status of consumers. Jack and rose (2000) it would be difficult and almost
impossible to create quantitative variables to describe the overall appearances of the main
characters combining varying views,(e.g., price, taste ,quality, hygiene etc.) as well as the
dynamic design ,colors, and sounds of the machine in that vending solution, which may have a
significant impact on consumers preference. Monirul I. & Han J.H.,(2012) states the demand of
coffee is more than tea and earning good amount of profit. It is assumed that about 20 billion
cups of hot drinks are sold every year. Understanding behavior of consumers is a key to the
success of business organizations. Marketing personnel are constantly analyzing the patterns of
buying behavior and purchase decisions to predict the future trends. Consumer behavior can be
explained as the analysis of how, when, what and why people buy. According to Global
Cosmetic 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 on
their 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 of
people, price, brand image, advertisement, quality features, packaging etc. Some of them are as
follows:-

1.5.4 Lifestyle

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

5
1.5.5 Price

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

Cadogan and Foster (2000), states that price is most important concern for the average consumer
preferred brand that why their purchasing intention is not affected by price. Consumer
satisfaction can also be built by comparing price with cost and values. If the value of product is
greater than cost, then 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 said by.

1.5.6 Brand image

Brand image means image of any particular product that set into the mind of consumers or
anything that linked in the memory to a brand. A successful brand image increases the likelihood
of consumer purchase intention towards a brand. It 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. In a product class there are several brands in the market classified as
known brands and unknown brands. The known brands are again classified into evoked set
(acceptable brands), inept set (unacceptable brands), inert set (indifferent brands) and over
looked brands. The evoked set refers to the specific brands a consumer considers in making a
purchase within a particular product category. This set consists of the smaller number of brands

6
the consumer is familiar with, remembers and finds acceptable. Consumers may not immediately
reduce the number of possible choices in evoked set, but they make several screening decisions.

1.5.7 Advertisement

Advertisement is a notice or announcement in a public medium promoting a product, service, or

event or publicizing a job vacancy. It informs consumers about the existence and benefits of
products and services, and tries to persuade consumers to buy them. The goal of advertising is to
persuade the consumer to do something, usually to purchase a product. If advertising is to attract
and communicate to audiences in a way that produces this desire result, advertisers must first
understand the consumers. Advertiser’s primary mission is to reach prospective customers and
influence their awareness, attitudes and buying behavior. They spend a lot of money to keep
individuals (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 enough
relevant market data to develop accurate profiles of buyers-to-find the common group (and
symbols) for communications this involves the study of consumers behavior: the mental and
emotional processes and the physical activities of people who purchase and use goods and
services to satisfy particular needs and wants.

Nilofer (2004), in a study concludes that personality dimensions affect the advertisement
preferences to consumer behavior of women of different age groups.

1.5.8 Quality

Quality is the standard of something as measured against other things of a similar kind; the
degree of excellence of something. The consumer may expect price to reflect the quality level of
the product. Quality perception may be to do with the materials or components used in the
product. Price, quality can be compared objectively, the image of the product and the
contribution of the chosen item towards needs satisfaction and lifestyle. Consumers were more
likely to switch brands after the price increased than if they were simple exposed to the higher
price to begin with. As pricing can influence the decision of consumer to take or drop the

7
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 to
be brand loyal customers.

1.6 Conceptual Framework

Independent Variables Dependent Variables

Price

Brand image CONSUMER’S

PREFERENCE

Advertisement

Quality

Figure 1.1. Conceptual framework of factors affecting consumer’s preference towards cosmetics

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1.7 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.

1.8 Research Methodology

1.8.1 Research design

Research design is the plan, structure, and strategy of investigation conceived so as to obtain
answers to research question. The plan is the overall scheme or program of the research .It
includes an outline of what the investigator will do from writing the hypothesis and their
operational implications to the final analysis of data. This research is based upon descriptive and
explanatory research design. As descriptive research design involves systematic collection and
presentation of data to give a clear picture of a particular situation.

1.8.2 Population and sample

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

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1.8.3 Significance of the study

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

1.8.4 Data collection procedure

Various data collection procedures are as follows:

• Primary sources: Primary sources of data are original data gathered by the researcher for the
research project or some other purpose. Primary source of data includes interviews,
questionnaires, observations, or experiments. I will take interviews, make questionnaires, and
observe 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.

1.8.5 Data Analysis Plan

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

• Bar chart

• Pie charts

• Correlation

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1.9 Limitations of the Research
Every research is limited by its imagination is true, but we definitely have some limitations on
this 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 and
personal bias are possible.
4. The respondents are unable or unwilling to give a complete and accurate response to certain
questions.
5. The information about the products is not sufficiently available in the internet.

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 CHAPTER II

PRESENTATION AND ANALYSIS OF DATA

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.

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2.1 Reliability of variables

Table showing overall Cronbach’s alpha

Overall Cronbach’s alpha

Cronbach's Alpha N of Items

.866 20

As shown in the above table, overall Cronbach’s alpha is 0.866 which shows that the items are
reliable.

Reliability Statistics

Variables Cronbach's Alpha N of Items

Quality .867 4

Price .611 4

Brand image .728 4

Advertisement .752 4

Consumer's preference .679 4

Table 2.1. Reliability of variables

Cronbach’s alpha is calculated to test the reliability or internal consistency of series of questions
or scales. In reliability test the Cronbach’s alpha should be greater or equal to 0.6 otherwise the
data is not reliable. In the above table Quality, Price, Brand image, Advertisement and
Consumer's preference because their alpha is equal or greater than 0.6. Their alpha are 0.867,
0.611, 0.728, 0.752, and 0.679 respectively.

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2.2 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.

2.2.1 Classification of respondents by gender

Gender Frequency Percent

Male 16 32.0

Female 34 68.0

Total 50 100.0

Table 2.2. Classification of respondents by gender

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 Figure 2.1. Classification of respondents by gender

The classification of the respondents by gender category is presented in table 2.2 and figure
2.1.It shows that out of 50 respondents (32percent) are male and (68percent) are female.

2.2.2Classification of respondents by age

Age Frequency Percent

Below 20 7 14.0

20-30 38 76.0

31-40 3 6.0

Above 40 2 4.0

Total 50 100.0

Table 2.3. Classification of respondents by age

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 Figure 2.2. Classification of respondents by age

The classifications of respondents by age group is presented in table 2.3 and figure 2.2.It 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.

16
2.2.3 Classification of respondents by education

Education Frequency Percent

Intermediate 11 22.0

Bachelor Degree 33 66.0

Masters and above 6 12.0

Total 50 100.0

Table 2.4. Classification of respondents by education

Figure 2.3. Classification of respondents by education

Figure 2.3. Classification of respondants by education

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The classification of the respondents by education category is presented in table 2.4 and figure
2.3.It shows that out of 50 respondents (22percent) falls under intermediate level, (66percent) fall
under bachelor’s level, and (12percent) respondents falls under masters level.

2.2.4Classification by marital status

Marital status Frequency Percent

Single 46 92.0

Married 4 8.0

Total 50 100.0

Table 2.5. Classification of respondents by marital status

Figure 2.4. Classification of respondents by marital status

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The classification of respondents by marital status is presented in table 2.5 and figure 2.4.1.It
shows that out of 50 respondents (92percent) are single whereas (8percent)of respondents are
married.

2.2.5Classification of respondents by occupation

Occupation
Frequency Percent

Student 40 80.0

Teacher 3 6.0

Entrepreneur 5 10.0

Others 2 4.0

Total 50 100.0

Table 2.6. Classification of respondents by occupation

Figure 2.5. Classification of respondents by occupation

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The classification of the respondents by occupation is presented in table 2.6 and figure 2.5.1.It
shows that out of 50 respondents (80percent) are student, (6percent) are teacher, (10percent) are
entrepreneur and (4percent) are others.

2.2.6 Classification of respondents by buying cosmetics

Buy Frequency Percent

Daily 4 8.0

Weekly 6 12.0

Monthly 34 68.0

Yearly 6 12.0

Total 50 100.0

Table 2.7. Classification of respondents by buying cosmetics

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 Figure 2.6. Classification of respondents by buying cosmetics

The classification of the respondents by buying cosmetics is presented in table 2.7 and figure
2.6.It shows that out of 50 respondents (8percent) buy daily, (12percent) buy weekly, (68percent)
buy monthly and (12percent) buy yearly.

2.2.7 Classification of respondents by spend

Spend Frequency Percent

Below 500 4 8.0

500-1000 23 46.0

1000-1500 19 38.0

1500-2000 2 4.0

Not prefer to answer 2 4.0

Total 50 100.0

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 Table 2.8. Classification of respondents by spend

Figure 2.7. Classification of respondents by spend

The classification of respondents by spending money on cosmetics is presented in table2.8 and

figure 2.7 .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.

2.3 Descriptive Analysis of Variables

This section provides the information on the consumer preference on buying cosmetics. The
respondents were asked questions on buying behavior.

22
 Descriptive Statistics

Variables N Mean Std. Deviation

Quality 50 4.7750 1.31538

Price 50 3.8600 1.00148

Brand image 50 4.2350 1.02446

Advertisement 50 3.2000 1.04735

Consumer preference 50 3.8350 .91975

Valid N (list wise) 50

Table 2.9. Descriptive Statistic

According to table 2.9,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 is 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.

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2.4Inferential Analysis

2.4.1Correlation 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

Quality Pearson Correlation .630**

Sig. (2-tailed) .000

N 50

Price Pearson Correlation .739**

Sig. (2-tailed) .000

N 50

Brand image Pearson Correlation .745**

Sig. (2-tailed) .000

N 50

Advertisement Pearson Correlation .735**

Sig. (2-tailed) .000

N 50

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

Table 2.10. Correlation Analysis

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According to table 2.10, 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.

2.4.2 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 2.11. Model Summary

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 ANOVAb

Sum of Mean
Model Squares df Square F Sig.

Regression 31.976 4 7.994 37.965 .000a

Residual 9.475 45 .211

Total 41.451 49

Table 2.12. Anova

Table 2.11 is the presentation of model summary of regression.According to table 2.11, 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.

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 Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients
B Std. Error Beta T Sig.
(Constant) .404 .294 1.374 .176
Quality -.053 .097 -.075 -.542 .590
Price .223 .124 .243 1.804 .078
Brand image .355 .142 .395 2.495 .016
Advertisement .412 .072 .469 5.728 .000

a. Dependent Variable: consumer preference

Table 2.13. Coefficient

Model

CP=B0-B1Q+B2P+B3B+B4A

Where,

CP= Consumer Preference

B0= Constant

Q= Quality

P= Price

B=Brand

A=Advertisement

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According to the table 2.13, 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. Brand 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. Advertisement 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.

2.5 Results of hypothesis Testing

According to correlation and regression following hypothesis were analyzed.

H1: There is significant relationship between Quality and Consumer preference.

The correlation result indicated in table 2.10 shows that there is positive relationship between
quality and consumer preference.The result is statistically significant in 1% level of significance.

The regression analysis in table 2.13 shows that (-0.053)change on consumer preference because
of 1% change in quality which is statistically insignificant.

So from both the analysis,it can be considered that H1 is accepted from correlation whereas
rejected from regression.

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H2: There is significant relationship between price and consumer preference.

The correlation result indicated in table 2.10 shows that there is positive relationship between
price and consumer preference.The result is statistically significant in 1% level of significance.

The regression analysis in table 2.13 shows that (0.223) change on consumer preference because
of 1% change in price which is statistically significant.

So from both the analysis,it can be considered that H2 is accepted.

H3: There is significant relationship between relation with brand image and consumer
preference.

The correlation result indicated in table 2.10 shows that there is positive relationship between
brand image and consumer preference.The result is statistically significant in 1% level of
significance.

The regression analysis in table 2.13 shows that (0.355)change on consumer preference because
of 1% change in relation with brand image which is statistically significant.

So from both the analysis,it can be considered that H3 is accepted.

H4: There is significant relationship between advertisement and consumer preference

The correlation result indicated in table 2.10 shows that there is positive relationship between
advertisement and consumer preference.The result is statistically significant in 1% level of
significance.

The regression analysis in table 2.13 shows that (0.412) change on consumer preference because
of 1% change in advertisement which is statistically significant.

So from both the analysis,it can be considered that H4 is accepted.

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 CHAPTER III

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

30
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.

31
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.

32
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Khraim, H.S. (2011), The Influence of Brand Loyalty on Cosmetics Buying Behaviour
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Strebel, J., Kathleen, O‘Donnell, & Myers, J.G. (2004), Exploring the Connection between
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Moisescu,O. (2010). A comparative study of the relationship between brand loyalty and market
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Poranki, R., Perwej, A. (2014). The buying Attitudes of Consumers of Cosmetic Products in
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 APPENDIX

Questionnaire

Consumer’s Preference factors on buying Cosmetics

Dear Respondents,
I am a student of Apex College 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

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 Variables S.N Statements 1 2 3 4 5 6

I prefer cosmetics which are parabean free

1
The quality of the cosmetic product is important to
2 me

Quality I am satisfied with the quality of cosmetic products

3 i wear.
I prefer to buy cosmetics that have natural
4 ingredients
Expensive cosmetic products are better than
1 cheaper products
I am willing to pay more for cosmetic product if it
2 consists completely of natural ingredients

Price I tend to buy less expensive cosmetics

3
I buy cosmetic products regardless of its price
4
I buy cosmetic brand depending on my past
1 experience
I have favorite brands of cosmetics
2 and I buy them again and again
Brand

3 Once I like a brand, I stick with it

I regularly change the brands of

4 cosmetics I purchase
Advertisement change my perception about the
1 product
I buy cosmetic product after watching its
2 advertisements
Advertisement
I also buy cosmetic products based on a
3 recommendation of a sales person or beauty
professional
4 I trust on every advertisement and buy cosmetics

I prefer to buy cosmetics which have low cost

1
I prefer to buy high quality product
2
Consumer’s I prefer to buy branded cosmetics
Preference 3
I prefer to buy cosmetics after watching the
4 advertisement

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