AKLAN CATHOLIC COLLEGE

Faculty of Business and Management Education

Bachelor of Science in Accountancy

PURCHASING AND BUDGETING HABITS

OF SMACKER BEAUTY CONSUMERS IN AKLAN

A Research

Presented to the Faculty of Business and

Management Education

Aklan Catholic College

Kalibo, Aklan

In Partial Fulfilment

of the Requirements for the subject

CAEC 17

by

April 2023

Chapter 1

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

THE PROBLEM AND ITS BACKGROUND

Introduction

The study of consumer behavior involves understanding the relationship between

consumers and businesses, and how consumers decide to make certain purchases.

Consumer behaviour is a process that is still in its early phases of development (Danusha,

2022). Smacker Beauty, a cosmetic brand that offers a wide range of affordable and high-

quality products. The brand has a reputation for delivering innovative and affordable

beauty products that cater to the diverse needs of its customers. From comfort tints to other

makeup, there are countless options available to those who seek to enhance their physical

appearance. As a result, Smacker Beauty has become a favorite among consumers who are

looking for high-quality beauty products at a reasonable price. The need for high-quality

beauty products at reasonable pricing is still a prevalent and basic feature of consumer

behaviour in the cosmetics sector across a variety of consumer demographics and markets

(Rachoini, 2023). This surge in cosmetic consumption has led to concerns about financial

strain.

The consumer decision making process when it comes to purchasing a product is

the process by which consumers become aware of and identify their needs; gather

information on the best ways to meet these needs; assess competing options; make a

purchasing decision; and evaluate their purchase. (Roy & Datta, 2022) also stated that

buying behaviour is a culmination of the user's preferences, views, goals, and decisions on

the consumer's response in the market when buying a product. Budgeting is an important

technique on how you spend your money. This will help you determine whether you will

have enough money to spend for the things you need or your desire. An essential ability

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

that includes resource allocation well is financial management. It assists in determining

your ability to cover both mandatory requirements and optional wants (Lalmuanpuia,

2021). Your spending decisions reflect your priorities. An effective budget must be

prepared and followed in order to accomplish the goals.

Understanding the purchasing and budgeting habits of consumers is crucial for

companies to improve their marketing and sales strategies, increase customer satisfaction,

and loyalty. Therefore, this study aims to investigate the purchasing and budgeting habits

of consumers of Smacker Beauty. The researchers decided to choose this kind of research

problem to justify the undertaking study and to develop the consumers’ purchasing and

budgeting habits. It can be an effective tool in encouraging the younger generation to live

in a financially sustainable manner through having information about financial

responsibility and status. In knowing your budget, you can spend money that is exactly

within your budget. The more financially responsible a person is, the less likely they are in

debt.

Statement of the Problem

This study aims to determine the level of purchasing and the extent of budgeting

habits of the consumers of Smacker Beauty. Specifically, this study aims to answer the

following questions:

1. What are the demographic characteristics of the consumers of Smacker Beauty in

terms of:

1.1 Age

1.2 Type of Consumer (students, professional, employed, unemployed)

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

1.3 Residence, and Municipality

1.4 Monthly Income/Allowance

1.5 Purpose (for gift, personal consumption, for resell, business, and others)

2.What is the level of purchasing habits of consumers of Smacker Beauty in terms of:

2.1 Social

2.2 Personal

2.3 Psychological

3.What is the extent of budgeting habits of consumers of Smacker Beauty?

3.1 Production

3.2 Marketing

Theoretical Framework

This study is based on budgeting theory on cosmetics products. This theory suggests

that individuals use a variety of strategies to manage their financial resources and allocate

their budgets across different categories of expenditures (Kokoi, 2011).

Irrational buying reasons can be illustrated by the typical buyer as being near

to rational buying decisions. Impulsive purchases are usually triggered by unexpected events

and have nothing to do with basic leadership ideas. Consumer behavior hypotheses predict

consumer decision-making processes and explain the most effective advertising techniques

that generate profit in predictable ways (Stern, 1962).

The theory could be used to explore the budgeting habits of consumers of Smacker

Beauty products, including how they prioritize cosmetics spending within their overall

budget.

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

Conceptual Framework

The independent variables in this study would include socio-demographic factors such

as age, type of customer, residency, monthly income. The dependent variable would be the

purchasing and budgeting habits of consumers of Smacker Beauty products. This could be

measured through various indicators, such as frequency of purchase, amount spent on

cosmetics, and budgeting strategies. This study will examine the factors of purchasing and

budgeting habits of Smacker Beauty consumers.

Figure 1. The paradigm above shows the relationship between independent

and dependent variables.

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

Significance of the Study

This study will be beneficial to the people that do not have any idea on how to

manage their budget and for those who have a problem with what to purchase. Specifically,

the study will benefit the following:

1.Consumers. The results of this study could provide information to the consumers to help

them make budgetary decisions when it comes to purchasing.

2.Smacker Beauty. This study will provide relevant data for the brand to optimize its

marketing and sales strategies.

3.Cosmetic Industry. The findings of the study will be useful to other cosmetic brands that

seek to understand the purchasing and budgeting habits of their customers.

4.Smacker Beauty. This study will provide relevant data for the brand to optimize its

marketing and sales strategies.

5.Future Researchers. This study will be a valuable resource for researchers who are

interested in conducting similar research. This will help them in answering their budgeting

questions regarding the purchase of any cosmetic brand.

Scope and Limitation of the Study

The researcher made the decision to focus on this type of research question in order to

both support the study's purpose and advance consumer purchasing and budgeting habits. By

providing information regarding financial responsibility and status, this study can be a

powerful tool for inspiring the next generation to live frugally sustainable lives. You can only

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

spend money that is precisely inside your budget if you are aware of your budget. One's

likelihood of being in debt decreases as one becomes more financially responsible.

The scope of this study is limited to consumers of Smacker Beauty, a cosmetic brand

known for its affordable and quality products. The respondents would be those who have

purchased products from Smacker Beauty. The study will be conducted in different places in

the province of Aklan and will be conducted within three (3) months. Since most of the

consumers of Smacker Beauty are in different places of Kalibo, the statistical tool that the

researchers will be using is a survey-questionnaire through Google Forms.

Definition of Terms

The following variables have been technically and operationally defined in order to

make them clearer and to make the definitions of the key phrases in this study simpler.

Budgeting Habits. The strategies and practices used by consumers to manage their finances

and expenses.

Consumer. A person who purchases and uses a product or service.

Consumer behavior. The study of how and why people make purchases and what influences

their decision-making along the way.

Cosmetic Industry. A sector that includes companies that produce and distribute beauty

products, such as makeup, skincare, and hair care.

Impulsive Purchase. The tendency of a customer to buy goods and services without planning

in advance. When a customer makes such buying decisions at the spur of the moment, it is

usually triggered by emotions and feelings.

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

Level of Involvement. Level of involvement is the degree of information processing and the

amount of importance a consumer attaches to a product while purchasing it. In other words, it

shows how involved the customer is towards a product personally, socially and economically.

Purchasing Habits. The behaviors and preferences of consumers when making a purchase.

Routine Response Purchase. The type of decision making exhibited by consumers buying

frequently purchased, low-cost goods and services, requires little search, and decision time.

Smacker Beauty. A home-grown beauty brand based in the Philippines. It was established in

2018 specializing in multi-use cosmetics and products. Your convenient partner in enhancing

beauty, confidence, and success.

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

Chapter 2

REVIEW OF RELATED LITERATURE

The review literature for this study is primarily concerned with the consumer’s

behavior with an emphasis on the purchasing and budgeting habits of Smacker Beauty.

Influences of Consumer Behaviour

A consumer’s behaviour is affected by three different factors: social, personal, and

psychological factors (Kotler et al., 2013). These factors influence what consumers want for

specific items and brands (Rani, 2014).

a. Social Factors

Family, social roles and statuses as well as different reference groups are some of the

social factors that affect consumer behaviour. Consumer reactions are significantly

influenced by their social context in which they operate. Buying decisions are influenced by

the inspiration of other people. Family is the most prevalent and controlling influence in

decision-making, as it allows individuals to grow, shape their personality, and take advantage

of opportunities.

Family is a crucial consumer buying organization, with family members playing five key

roles in the purchase process: initiator, influencer, decision maker, purchaser, and consumer.

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

These roles have direct (face-to-face) or indirect influence on attitudes and behavior, and

each role carries a status. People choose products that reflect their role and desired status in

society, making family members the most influential primary reference group (Kotler et. al.,

2013)

A study in Kolhapur by Desai K. (2014), found that consumers make their own

decisions when purchasing cosmetics, despite the influence of friends, family, and

beauticians. Nearly 50% of women's purchases are influenced by word of mouth (Sonkusare

G., 2013), and women shoppers are high-involvement individuals who seek opinions from

female friends and co-workers and use nonpersonal idea sources for shopping.

b. Personal Factors

Consumer behavior is influenced by individual traits such as age, occupation, and

personality. Lifestyle, morals, and interests change over time, impacting purchasing habits.

Age, living circumstances, and location significantly influence a person's choices. A person's

self-perception influences their thoughts and behaviors. These traits and characteristics shape

a person's ability to buy and acquire positive attitudes as a consumer. Overall, a person's

unique traits and experiences shape their purchasing decisions and attitudes.

A. Age & Stage in The Life Cycle

Consumers' preferences for food, clothing, furnishings, and amusement are frequently

linked to their age. Consumption is also influenced by the life cycle of the family as well as

the number, age, and gender of persons living in the household at any given moment (Kotler

et. al., 2013). The study focuses on cosmetics products and reveals that age plays a significant

role in preferences. People of different ages tend to prefer different brands of skin care

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

cosmetic products (Junaid Abdullah B, Nasreen R, 2012). Additionally, there is a significant

relationship between age, type of cosmetics used, and the time period of use (Junaid Abdullah

et al., 2013).

B. Occupation and Economic Circumstances

Marketers target occupational groups with high interest in their products and services,

adjusting their offerings based on economic factors such as spendable income, savings, debts,

borrowing power, and attitudes towards spending and saving. In times of economic recession,

marketers can redesign, reposition, or increase discount brand emphasis to maintain value for

target customers (Kotler et. al., 2013). This study focuses on cosmetics products and their

impact on working women. Working respondents are more concerned with their appearance

and are more inclined to buy expensive products compared to housewives and students. As

female consumers' income levels increase, their expenditure for cosmetic products also

increases (Junaid Abdullah et al., 2013). However, some studies suggest no significant

relationship between occupation and education on price and brand when buying skin care

products (D. Lavanya, 2014). Therefore, occupation plays a crucial role in purchasing

cosmetics.

C. Personality

Personality is a psychological characteristic that influences a person's response to

their environment. Marketers often depict specific personality traits in their marketing and

advertising messages, as consumers are likely to choose brands whose personalities match

their own. Research shows that a strong, positive brand personality leads to more favorable

attitudes, preference, higher purchase intentions, and brand loyalty. As materialism increases,

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

consumers are also concerned with enhancing their self-image, which is developed through

interactions with others. Self-image consistency is a strong predictor of brand preferences and

satisfaction, with higher levels of consistency leading to higher brand preferences and

satisfaction. Self-image also impacts purchase intention and behavior in buying skincare

products. The congruence between brand personality and self-image increases consumer

satisfaction and the consumer-brand relationship, as well as the consumer-brand relationship.

D. Lifestyle

Lifestyle refers to a person's pattern of living, expressed through activities, interests,

and opinions. It is more closely related to buying behavior, which reflects how a person

allocates their time and money. Despite shared cultural, subcultural, and social class

backgrounds, people may have very different lifestyles. Values significantly impact buying

behavior, and core values underlie attitudes and behaviors. Marketers targeting consumers

based on their values believe that appealing to their inner selves can influence their outer

selves, leading to purchase behavior (Kotler et. al., 2013, 153). A study by Srinivasan et al.

(2014) found significant differences between value and different age groups in purchase

behavior towards luxury brands. Overall, lifestyle and values play a crucial role in shaping

consumer behavior.

c. Psychological Factors

Psychological factors include a person’s attitude, perceptions about a situation, their

ability to understand information, what motivates them, their personality and beliefs. Kotler

et al. (2013, 153) identified four psychological processes: motivation, perception, learning,

and memory, which influence consumer responses. Marketing and environmental stimuli also

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

influence these processes, leading marketers to understand which stimuli will influence

consumer purchase decisions.

A. Motivation

Motivation is the driving force within individuals, driven by tension resulting from

unfulfilled needs. Theories of human motivation, including those of Freud, Maslow, and

Herzberg, have different implications for consumer analysis and marketing strategy (Kotler

et. al., 2013). A motivated person is ready to act, satisfying all needs and wants, and

overcoming tensions to make purchase decisions and achieve goal fulfillment.

B. Perception

Consumer behavior involves the selection, organization, and interpretation of information to

create a meaningful picture of the world (Kotler et. al., 2013) . This process involves

exposure, attention, and perceiving multiple times throughout a day. Perceptions are more

important than reality in studying consumer behavior, as they affect behavior. Perceptions are

formed through selective attention, selective distortion, and selective retention (Kotler et. al.,

2013]) . People tend to pay more attention to stimuli related to their current needs, such as

cleansing milk advertisements or skin care products in cosmetics stores. Discounts are

another attention grabber, as people are more likely to notice larger deviations than normal

stimuli. Selective distortion can cause consumers to distort neutral or unclear information

about a brand to make it more positive based on their beliefs and expectations. Selective

retention refers to the retention of information that supports attitudes and beliefs.

C. Learning
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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

Marketing defines learning as the acquisition of purchase and consumption

knowledge and experiences, which are applied to future behavior. This process includes

repeating advertising messages about brands, rewarding purchase behavior with superior

benefits, promoting brand loyalty, and teaching consumers about products, attributes, and

disposal. Marketers are interested in understanding how individuals learn and want their

communications to be remembered, believed, remembered, and recalled.Supporting to this

(Kotler et. al., 2013) wrote that, learning theorists believe that learning is produced through

the interplay of drives, stimuli, cues, responses, and reinforcement.

D. Memory

Memory plays a crucial role in consumer buying behavior, as it stores information

such as perception, feelings, thoughts, experiences, and images. The strength and

organization of these associations determine the information consumers can recall about a

brand. Marketers should create strategies that help consumers gain the right knowledge,

associations, and experiences, ensuring they are stored in memory. Cognitive psychologists

distinguish between short-term memory (STM), a temporary and limited repository of

information, and long-term memory (LTM), a permanent, unlimited repository (Kotler et.,

2013)

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

Chapter 3

METHODOLOGY

Research Design

The research design adopted for this study is a quantitative research approach. A

survey questionnaire will be used to collect data from a sample of consumers of Smacker

Beauty products. This research design is appropriate, that will allow the researcher to obtain

numerical data that can be analyzed statistically.

Locale of the Study

The study will be conducted in different municipalities of Aklan. The respondents

will be interviewed through Google forms since some of the respondents are out of reach

within Kalibo. The survey will be conducted within at least 3 months.

Population and Sampling Techniques

In this study, the researchers will be using a simple random sampling in identifying

the respondents. A simple random sampling is a population subset that has been chosen at

random. Each person in the population has an exact equal probability of getting chosen using

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

this sampling strategy. Therefore, out of 50 of the total population, the researchers will only

get 30 respondents.

Data Gathering Instrument

The survey questionnaire consists of two parts. Part I collects information on

demographic characteristics of respondents, while Part II collects information on the

purchasing and budgeting habits of consumers of Smacker Beauty products.

Part I: Socio-Demographic Information

The first part of the survey questionnaire collects information on the demographic

characteristics of respondents. It includes questions such as age, gender, education level, and

income level. The purpose of collecting this information is to describe the characteristics of

the sample and to analyze the relationship between demographic characteristics and

purchasing and budgeting habits.

The second part of the survey questionnaire collects information on the purchasing

and budgeting habits of consumers of beauty products.

Content Validity

Content validity is important in survey research to ensure that the questions and items

accurately measure the constructs or variables of interests in purchasing and budgeting. The

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

researchers review the survey items to ensure they are clear, relevant, and cover all aspects of

the construct being assessed.

Expert judgement is frequently used to assess the validity of content. Consumers in

the subject matter or people who are knowledgeable about the Smacker Beauty products

review the items or questions on the measurement instrument and offer feedback based on

their purchasing experience. They evaluate the items’ relevance and make recommendations

for improvement.

Reliability

The kind of reliability the researcher used is internal consistency, which is the

consistency of people’s responses across the items on a multiple-item measure. In general,

all the items on such measures are supposed to reflect the same underlying construct, so

people’s scores on those items should be correlated with each other.

Data Gathering Procedure

The researchers gave a questionnaire for the respondents. The respondents were also

given a consent form ensuring their safety, privacy, and their liberty. The data gathered by the

researchers for review related literature and studies are from sources like, Google Scholar,

and different legitimate sources from Google, lastly the datas that will be concluded by the

researchers will be by observing the respondents and by quantifying their surveys or

questionnaires. The researchers will be using the simple random sampling in which the

respondents that we are going to choose are fitted with the criteria that the researchers are

basing on.

Statistical Treatment of Data

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 AKLAN CATHOLIC COLLEGE
Faculty of Business and Management Education
Bachelor of Science in Accountancy

The response will be analyzed using statistical tool frequency distribution. Through

survey, the information gathered was tabulated and processed manually and with a computer

to determine the precise interpretation of the results. Data were collated, tabulated, and

analyzed.

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Dr. Jitesh, P. (2019) A REVIEW OF LITERATURES ON FACTORS INFLUENCING

FEMALE
BUYING BEHAVIOUR FOR COSMETIC PRODUCTS
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3YI

Elbo, R. (2018). In The Workplace: Six factors to consider in case of job transfer retrieve
from https://www.bworldonline.com/six-factors-to-consider-in-case-of-job-transfer/

Ligo, K. (2017). FACTORS INFLUENCING THE BUYING BEHAVIOUR OF

FACE CARE PRODUCTS AMONG YOUTH
https://www.researchgate.net/publication/315667663_FACTORS_INFLUENCIN
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Khraim, H. S. (2011). The influence of brand loyalty on cosmetics buying

behavior of UAE female consumers. International Journal of Marketing Studies,
3(2), 123.

Kokoi, I. (2011). Female Buying Behaviour Related to Facial Skin Care Products retrieved
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Nadarajah, S., et al. (2012). The Relationship of HR Practices and Job Performance of
Academicians towards Career Development in Malaysian Private Higher Institutions.
Procedia - Social and Behavioral Sciences. https://doi.org/10.1016/

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Faculty of Business and Management Education
Bachelor of Science in Accountancy

j.sbspro.2012.09.1163.

Priyabrata, R (2022). Theory and Models of Consumer Buying Behaviour: A Descriptive

Study
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