A Study On Purchase Pattern of Cosmetics Among Consumers in Kerala

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 21

*DC School of Management & Technology, Pullikkanam, Idukki - 685 503. E-Mail:- [email protected],prakash@dc sc hool .

ne t
A Study on Purchase Pattern of Cosmetics among Consumers in Kerala
Dr. Vinith Kumar Nair*
Dr. Prakash Pillai R*
Introduction
Understanding behaviour of consumers is a key to the success of business organizations. Marketing
personnel are constantly analyzing the patterns of buying behaviour and purchase decisions to predict
the future trends. Consumer behaviour can be explained as the analysis of how, when, what and why
people buy. 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). Nowadays, this phenomenon, can also be illustrated in the following way:
"activities people undertake when obtaining, consuming, and disposing of products and services"
(Blakwell, Minard and Engel, 2001).
A study by Voss and Parasuraman (2003) suggests that the purchase preference is primarily
determined by price than quality during pre-purchase evaluation. Given explicit quality information,
price had no effect on pre-purchase or post-consumption quality perceptions. Instead, post
consumption quality evaluations had a favorable impact on price evaluations. Another study by
Chernev (1997) analyzed the effect of common features on brand choice and the moderating
role of attribute importance. It is argued that when brand attributes differ in importance, with the best
value on the most important attribute, thus further polarizing brands’ choice shares. In contrast, when
attributes are similar in their importance, common features are likely to have an opposite effect,
equalizing brands share.
Russo and France (1994), studied the nature of the choice process for commonly
purchased non-
durables by tracking eye fixations in a laboratory simulation of supermarket shelves. The findings are
fully compatible with the general view that the choice process is constructed to adapt to the immediate
purchase environment.
While describing about shopping orientation, Sinha (2003) reports that Indian Shoppers seek
emotional value more than the functional value of shopping. Their orientation is based more on the
entertainment value than on the functional value. The orientation is found to be affected primarily by
the type of store, the frequency of buying and to some extent by the socio-economic classification. The
retailers need to experiment with a format that attracts both types of shoppers. Research suggests that
beauty consciousness among people in general is changing. Vigneron and
Johnson (1999) reported that people's needs for appearances and materialism were
increasing.
That is human beings wanted to satisfy the need to look and feel good. This created a boom in the
cosmetic and toiletries sector across the world. Chambers Encyclopedia defines cosmetics as (a)
articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into or otherwise applied to
the human body or any part thereof for cleaning, beautifying, promoting attractiveness or altering the
appearance and (b) articles intended for use as a component of such articles. Now a variety of
cosmetic and toiletries ranging from natural to sophisticated items are available in the market. The
pattern and preference of use of these items vary according to different segments of gender, age and
socio-economic class. When we review the literature on the cosmetic and toiletry industry, not many
studies are available especially about Indian scenario. The present study is an attempt to analyse the
purchasing pattern of cosmetic consumers in Kerala.
Cosmetics and Toiletries: Global Scenario
In 2003, the world market for cosmetics and toiletries (C&T) was valued at US$201 billion, up 4.8%
from 2002 (in fixed exchange rate terms). Though mature, hair care maintains its position as the most
valuable sector in global cosmetics and toiletries, with global sales amounting to US$42.4 billion in
2003. (Briney, 2004b). According to Global Cosmetic Industry report
(August, 2004) the advanced education provided by brands about the products'
ingredients and

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
582
benefits have made today's consumer more aware of what they're putting on their
bodies, and
making them more willing to pay.
Indian Cosmetic Industry
The Indian cosmetics industry is growing in terms of product development and marketing. The
preference of Indian consumers is changing from the ‘merely functional’ products to more ‘advanced
and specialized’ cosmetic items. In 2005, sales of cosmetics and toiletries rose by 6% in current value
terms in India. Monteiro (2003) also predicts the huge potential for cosmetics in India. The average
annual spending of Indian consumers on cosmetics and toiletries in 2005 is just over US$3. India in
cosmetics and toiletries, which saw its value share rising from 27% in 1999 to 31% in 2005 and is likely
to continue to surge ahead over the forecast period.
The entry of many multinationals into the Indian cosmetics and toiletries industry in 2005 has made it
an extremely challenging and dynamic market. Foreign players have focused more on product
innovation; re-launches and brand extensions spread across multiple price points, and enhanced
product penetration by extending their distribution networks. The leading players have streamlined
their ad spend to effect savings that has allowed them revamp their pricing strategies as well as offer
free gifts to retain consumers.Bri ney ( 2004a) describes an interesting trend
among Indian cosmetic consumers, while other global countries are taking to the traditional Indian
herbal and ayurvedic applications for beauty solutions, Indian consumers are increasingly looking to
international personal care brands as lifestyle enhancement products, in the belief that the association
with and use of an international brand confers one with a sophisticated and upper class image.
The projected sales in 2010 at constant 2005 prices is Rs. 195.6 billion, the main reasons being a
greater ability to purchase personal grooming products among a larger base of financially independent
women, frequent relevant product launches and growing beauty consciousness and awareness,
especially among the younger population. Despite the huge nascent potential in India, cosmetics and
toiletries is expected to grow at a relatively slow pace in constant value terms over the 2005-2010
forecast periods. The probable reason being lackluster performance of products which have already
thorough household penetration, such as bath and shower products and oral hygiene, which represent
together over half of the value sales of cosmetics and toiletries in India. However the Growth was
affected by low product awareness or lack of inclination to spend on cosmetics and toiletries especially
in rural areas. The aggressive price competitions from local and regional players, which seized
volumes with better trade margins and heavily discounted offerings, have also contributed to the same.
Malhotra (2003) describes the main reasons for boom in cosmetic industry as increasing
fashion
and beauty consciousness coupled with rising incomes and focus on health and fitness. To
complement this, beauty culture or cosmetology has emerged as a major occupational avenue with
significant commercial potential. New scientific developments, techniques, products and media hype,
has contributed the Indian fashion industry in generating mega revenues and this has in turn added to
the growth of cosmetic industry. Rising hygiene and beauty consciousness due to changing
demographics and lifestyles, deeper consumer pockets, rising media exposure, greater product
choice, growth in retail segment and wider availability are the reasons reported by (Euromonitor
International, 2006). Over recent years, India has seen increasing literacy levels, penetration of
satellite television, growing urbanization and greater beauty awareness among women, which has
resulted in rewarding growth opportunities to cosmetics and toiletries manufacturers.
Around 44% of value sales (2005) of cosmetics & toiletries market in India are with two market leaders
i.e. Hindustan Lever & Colgate Palmolive. The rest is very fragmented with hundreds of companies
trying to get into the market. The presence of a large grey market and many counterfeits also
enhanced this trend.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
583
Price & Indian Cosmetic Consumers
There is high maturity and price competition in established mass market toiletries such as bar soap
and toothpaste. Since the average Indian household continues to be highly price sensitive, these
popular mass-market products will have the lion’s share of cosmetics and toiletries sales. This will offer
high growth prospects of the overall market over the coming years. The cosmetics and toiletries
market are also facing competition from other consumer durables (computers, mobile phones, home
theatres and automobiles) as well as the housing sector. The drop in interest rates has led to a boom
in housing loans and real estate purchases. Being value conscious, there is a limit to the amount that
the average consumer will spend on luxury items such as fragrances.
Urban & Rural Cosmetic Consumers
India's spending on cosmetics and toiletries is relatively small, with rural and suburban
areas
concentrating on basic toiletries and cosmetics. The purchasing power of Indian
consumers is
increasing thereby shaping the aspirations and lifestyles of consumers, who are upgrading to good
value products at affordable prices. The Cosmetic Companies have invested heavily on promoting
product visibility among rural folk, which has increased the demand for bar soap, talcum powder,
lipstick, tooth powder and hair oil in these areas. This has also increased the demand for essential
everyday items like bath and shower products, hair care, oral hygiene and skin care. Another strategy
followed by companies to promote cosmetics in rural areas was sachets’ approach.
While rural India contributed to growth in volume terms, the urban population contributed 69 % of value
sales in 2005 especially for sophisticated products. These high-quality added-value niche products
include mascara, toners, body wash/shower gel, depilatories, sun care and deodorants, amongst
others which are unaware to the rural users. Sales are almost completely generated from the urban
pockets, concentrated within the key metropolitan areas of New Delhi, Chennai, Mumbai and Calcutta.
Due to Western influences, men's grooming products are used more predominantly in urban
population compared to their counterparts in rural areas.
Income Households
Cosmetics and toiletries have witnessed a growing demand from the low and lower middle- income
households. The premium labels are being used in urban areas, whereas regional and national brands
in the rural areas, where close to 70% of the Indian population resides and price determines
purchasing decisions.
Indian Men & Women Cosmetic Users
Both male and female consumers form a major segment of buyers of beauty products in India.
(Monteiro, 2003). Indian women are becoming increasingly more beauty conscious. Reports of
Consumer Graphics revealed that in 2003, Indian women aged 15-24 years accounted for 29.8% of
all
Indian
makeup
sales
(http://www.cosmeticsandtoiletries.com/onlineexclusives/1689497.html).
The
i
ncreased purchasing ability of women households helped them to spend more on personal grooming.
Colour cosmetics emerged as the fastest growing area of the cosmetics and toiletries market over the
review period. Experimentation among teen and young adult Indian women was one reason cited for
the increase in makeup use. According to Monteiro (2003), there is a tremendous increase in the
female cosmetic consumers. This is due to increasing number of women becoming the earning
members of the family due to their increased level of literacy and growing influence of the media
More males in India are becoming conscious about the way they look and are increasingly looking to
grooming products to spruce up their physical appearance. This newfound male grooming
consciousness was encouraged by men's active participation in prominent fashion shows, such as the
popular Fashion TV channel, and in beauty pageants exclusively for men

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
584
especially in the forward-looking and cosmopolitan cities of Mumbai, Bangalore and New Delhi. The
demand for men’s hair care and deodorants has gone up and razors and blades have contributed to
the men’s grooming value sales. This particular segment which is at its early stage of its development
with a growth of only 6% remains a nascent niche. Barson, (2004) suggests that men cannot simply
be classified asmetro-sexuals ornon-metrosexuals. There are other
categories in between those two ends of the spectrum. Motivations and type of products
purchased should be different depending upon the segment of guys targeted.
Cosmetic Industry in South India
The demand for cosmetics and toiletries in South India is expected to remain concentrated mainly on
essential items where 80% of the population belongs to the lower- and lower middle- income groups.
Consumers in this region expect good quality products. The urban population in South India is
expected to witness rapidly changing aspirations and lifestyles, which will result in increase in demand
for cosmetics and toiletries. South Indian market is dominated by sale of baby care products. In 2005,
South India was accounted for over 27% value share within cosmetics and toiletries in India.
The Consumption pattern of consumers in Kerala is changing (The Hindu dated 5th July
2005,
Mangalore Edition). The probable reasons being more spending power, better education
and
access to various brands and products, due to migration abroad and the TV boom. The readiness to
experiment is reported to be growing among the consumers in Kerala. The consumers have also
become globalized in their thinking and are ready to indulge in some impulsive shopping.
General Objective of the study
The main objective of the study is to analyze the purchase pattern of cosmetic consumers
in
Kerala.
Specific Objectives
1) To describe the demographic profile of cosmetic consumers.
2) To study the style of purchase of cosmetics.
3) To assess how brand influences the purchasing pattern.
4) To analyze the different factors involved in purchase decision of cosmetics.
5) To study the spending pattern of cosmetic consumers and its influence on society.
Scope of the Study
The study analyses the purchase patterns and spending styles of people belonging to different
segments of Cosmetic consumers in Kerala. The major variables selected for the study are as follows:
Demographic Profile of Consumers
Area- Wise (Urban & Sub Urban), Gender Wise (Male & Female), Age Wise, Monthly
Income
Education, Qualification and Occupational status.
Major Factors identified for detailed study includes
Purchase Style, Brand Selection, Point of Purchase, Location Preference
Brand Loyalty, Brand Awareness, Factors in Purchase Decision, and Spending Pattern.
Relevance of the Study
The state of Kerala is known for its consumerism. The present study will be helpful in understanding
the customer attitude of the different strata of people in the Kerala society. The classification of the
different strata of the people are area wise, gender wise, occupational, income wise etc. The study will
also be helpful in analyzing the customer attitude towards the different factors identified after the focus
group discussions. It will also help in studying the effect of cosmetic purchase on the society
specifically among the segments under consideration.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
585
Research Methodology
This study was carried out in two stages.
Stage 1: This stage of the research was exploratory in nature. This was done in two
phases. The
initial phase was to undertake detailed secondary search about cosmetic industry in India, its
characteristics, major players in the market, market segmentation and purchase patterns. It was
followed by a set of focus group discussions among cosmetic costumers to assess the consumer
preferences, perceptions, cosmetic use and purchase patterns. The from this exploratory search was
the basis for preparing the interview schedule for the next stage.
Stage 2: A descriptive research was carried out at the second stage by applying a survey
method.
Data for the study were collected from cosmetic shops belonging to the three main cities in Kerala viz.
Thiruvananthapuram, Ernakulam and Kozhikode. The tool used for data collection is an interview
schedule, which covered the demographic profile of consumers, details about purchase patterns, and
various factors considered for buying cosmetics. The consumers were interviewed at the leading
cosmetic shops and convenient sampling was applied to select samples. The sample size for the study
is 300.

Primary Data Analysis


Profile of the Respondents
Around 68 per cent of the respondents of the study were residents within the town
(urban) while
the remaining belongs to the outskirts (suburban areas) of towns.
205
95
0
50
100
150
200
250
Urban
Sub-urban
The percentage of males in the sample is slightly high (59%).
Age wise, the respondents were classified as teenagers, youth, middle aged and upper middle aged.
About 47 per cent of the total respondents were youth, 29 per cent middle aged and 18 per cent
belonged to the upper middle aged category. Only 5.78 per cent were teenagers. Minimum age is 15
and maximum 68. Mean age of the respondents in the sample is 36.
Part VI – Consumer Markets & Marketing
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
588
10%
3%11%
15%
14%
12%
10%
2%
10%
13%
House wive
Farmer
Student
Business
Teacher

Govt. employee

Professionals

Technical
Executives
Others
The following session covers a detailed analysis of the main variables namely Mode of Purchase,
Brand Selection, Point of Purchase, Shop Preference, Brand Preference, Brand Awareness, Factors in
Purchase Decision, and Spending Pattern. These factors are analyzed across the demographic
variable viz. Gender, Occupation, Income, Place of Residence, Qualification and Age respectively.
1. Mode of Purchase
Around 51 per cent of the respondents have purchased cosmetics individually. About a third of the
consumers purchased cosmetics with their spouses. Percentage of respondents who purchased
cosmetics with friends comes to 12. Seven per cent of the respondents purchased it with their children.
1.1 Purchasing cosmetics individually seems to be the prevailing practice among both
males
(54%) and females (47%). The practice of purchasing cosmetics with their friends seems
to be
more prevalent (10.7) among females compared to their counter parts (4.7%).
1.2 A good number of respondents belonging to all occupational groups except
housewives
purchased cosmetics individually. Among the housewives (43%) there was a customary practice of
purchasing cosmetics with the help of their spouses. Forty six per cent of the professionals had to take
the help of either their children or spouses for purchasing cosmetics. Among the executives 32 per
cent purchased cosmetics with the help of spouses. Another 24 per cent of them had to depend on
their children for purchasing cosmetics.
1.3 Around 57 per cent each of the respondents belonging to the lower income category,
46 per
cent each of those in the middle and upper income groups purchased cosmetics individually. Spouses
were involved in the purchasing of cosmetics in the case of about a third each of the respondents
belonging to all the three income categories. Percentage of people who purchase cosmetics
individually is bit high in the case respondents belonging to the lower income group.
1.4 It can be observed that around 50% of the urban respondents and 53.3% of those
belonging to
the sub urban areas made their purchases individually. While 32 per cent of urban consumers
purchased cosmetics with their spouses, the corresponding percentage among sub-urban category
came to 27.
1.5 A reasonably large number of respondents irrespective of their qualifications did their
shopping individually. About 38 per cent of post graduates, 34 per cent of the graduates,
and a
third of the pre degree qualified respondents purchased cosmetics with their spouses.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
589
1.6 About 83 per cent of the teenagers, 55 per cent each of youth and upper middle aged
consumers purchased cosmetics individually. Forty per cent of the middle aged respondents did their
cosmetic purchase with the help of their spouses. The results of the Chi-square test (at 1 per cent level
of significance) substantiates that there is a significant association between mode of purchase and age
of the respondents. Pearson’s Chi-square value is 32.04 for 9 degrees of freedom.
2. Brand Selection
Fifty eight per cent of the respondents selected the specific brands of cosmetics individually by
themselves. Around 22 per cent of the respondents entrusted the brand selection to their spouse.
About 18 per cent of the respondents did the brand selection together with their spouses.
2.1 The percentage of respondents who selected the brands by themselves is slightly high
among
females (61.3) compared to those among the males (56). Selecting the brand exclusively
by the
spouses or together by both the spouses seems to be enjoyed by the men compared to
women.
2.2 A good number of respondents belonging to all occupational categories purchased
cosmetics
individually. Spouses were involved in the purchase for 37 per cent of the teachers, 30 per cent of
executives, 29 per cent of housewives, and 23 per cent of businessmen. Both the spouses together
did the cosmetic purchase in the case of 30 per cent of government employees and 23 per cent of the
professionals.
2.3 About 64 per cent of respondents belongs to the upper income group, 60 per cent of
those in
the lower income group and 52 per cent in the middle income group selected their brands of cosmetics
individually by themselves. More than a quarter of those in the middle income group respondents
involved their spouses for selecting the brands while only a smaller percentage (less than 15) among
other income categories did so.
2.4 Around 58.3% of the respondents living in urban areas and 58.6% of the respondents
who live
in the sub-urban regions select their brand themselves.
2.5 All the respondents irrespective of their qualifications select the brand of products
themselves
when they go for shopping cosmetic products
2.6 Eighty eight per cent of the teenagers did their brand selection individually. The
corresponding percentages among other age groups are youth (63.8 %), upper middle aged (52%)
and middle aged (46%). Spouses were involved in the brand selection for 36 per cent of those in the
upper middle aged category, 26 per cent of the middle aged group. Both the spouses were involved in
the case of 28 per cent of the middle aged respondents. Chi-square test substantiates that there is
significant association between brand selection and age of the respondents at 1 per cent level of
significance. Pearson chi-square value is 41.709 for 9 degrees of freedom.
3. Point of Purchase
There is no specific shop of preference for 62 per cent of the respondents in purchasing
cosmetics. But 38 per cent of the total respondents purchased it from a particular shop.
3.1 Women consumers preferred to purchase from any shop compared to their
counterparts (men
enjoyed shopping from a particular shop). The relationship between shop preference and gender is not
statistically significant at 5 per cent level. Pearson chi-square value is 1.0899 and p value is 0.297
3.2 More than three fourth each of professionals and students, 71 per cent of the
government
employees, 61 per cent of housewives, 58 per cent of the farmers and 68 per cent of the other
category employees purchased from any shop of convenience. Around 56 per cent of businessmen
and 52 per cent of teachers shopped cosmetics from specific shop. The tendency of shopping from
any shop is more prevalent among professionals, students, government employees and farmers while
businessmen and teachers preferred to shop from specific shop.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
590
3.3 Sixty three per cent of the respondents in the middle income group, 59 per cent each
of those
in the lower and upper income categories purchased cosmetics from any shop of their convenience.
That is, only 37 per cent in the middle income, 41 per cent each in the upper and lower income
categories purchased cosmetics from a specific shop.
3.4 About 61 % of the respondents who live within the town and 64.4% of the respondents
who
live in sub-urban areas make their purchase from any convenient shop and not from any
particular
shop.
3.5 All the respondents, except the people who have SSLC as their qualification
irrespective of
their qualifications purchase cosmetic products from any convenient shop and do not depend on a
particular shop. It has been observed that people who have SSLC as their qualification tend to
purchase cosmetic products from a particular shop.
3.6 Seventy one per cent of the teenagers, 67 per cent of the youth, 56 per cent of the
middle aged
and 52 per cent of the upper middle aged respondents prefer to purchase from any shop of their
convenience. Percentage of people purchasing from a particular shop is relatively high among those in
the middle aged (44%) and upper middle aged (48%) group. But the relationship between point of
purchase and age is not statistically significant at 5 per cent level.
4. Shop Preference
About two thirds of the respondents purchased the variety cosmetics from different shops
whereas a third did it from a single shop.
4.1 The percentage of female consumers is high among those who purchase it from
variety shops
compared to males. But men preferred to purchase it from a single shop. That means male consumers
enjoyed purchase of all their cosmetic requirements from a single shop. This may be because the
variety and types of cosmetics available for men are less compared to women.
4.2 Around 82 per cent of students, 73 per cent of government employees, 77 per cent of
the other
categories, around 60 per cent each of housewives, professionals, technical employees and
executives shopped from the variety shops. Fifty seven per cent of the farmers, 62 per cent of
teachers were so particular about shopping from the single shop. That is farmers and teachers
restricted their shopping of cosmetics from a single shop while majority among all other occupational
groups did it from different shops. The results of Chi-square test substantiates that there is a
significant relationship (at 5 per cent level of significance) between occupation of the respondents and
shop preference. Pearson chi-square value is 20.934 and p value 0.013.
4.3 Around three fourths of the respondents belonging to the middle income group, 68 per
cent in
the upper income category and 59 per cent in the lower income group had the habit of purchasing from
multiple shops. Compared to the upper and middle income groups, respondents in the lower income
category preferred to purchase from a single shop.
4.4 Around 63 per cent of the respondents living within the town and 69.2% of the sub-
urban
respondents do not make all their purchase from a single shop. While 34 per cent of those residing
within the town did shopping from a single shop, only 31 per cent of those in the outskirts did so.
4.5 All the respondents, except the people who have 10th standard as their qualification
irrespective of their qualifications purchase cosmetic products from a single shop. It has been
observed that people who have 10th as their qualification tend to purchase cosmetic products from
multiple shops
4.6 Around 82 percent of the teenagers, 64 per cent each among the youth, middle aged
and upper
middle aged category purchased cosmetic products from a multiple shop. The difference
in shop
preference is not statistically significant at 5 per cent level.
5. Brand Preference
Among the total, 60 per cent of the respondents were very strict about their specific
brand.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
591
5.1 Male respondents purchase some other brands if they do not get the specific brand of
cosmetics but the percentage of females doing same is less. Restricting to a single brand has been
more prevalent among females compared to male consumers (brand loyalty high among the females
compared to males).
5.2 About two thirds of the executives and 56 per cent of the professionals were not very
keen
about the brands they purchase. But three fourths of the housewives, 71 per cent of the government
employees, 70 per cent of the businessmen, and 60 per cent of the teachers stick to their specific
brands. That is professionals and executives dominantly were not very strict to the brands while
respondent belonging to all other occupational groups restricted themselves to specific brands.
5.3 Around 59 per cent of the respondents in the middle income category, 57 per cent in
the lower
income category and 51 per cent in the upper income groups were brand specific in
selecting
cosmetics. The remaining respondents had the habit of purchasing any brand.
5.4 About 62.8% of the respondents who live within the town and 52.9% of the
respondents who
live in the sub-urban areas do not purchase some other brand if they don’t get their
brand.
5.5 All the respondents, except the people who have qualification less than 10th Class do
not
purchase some other brand if they don’t get their brand. It has been observed that people who have
qualification less than 10th Class tend to purchase other brand of cosmetics if they are not able to get a
particular brand.
5.6 Sixty two per cent of the youth, 60 per cent of the middle aged and 56 per cent of the
upper
middle aged do not purchase some other brand if they don’t get their brand. Half of the teenagers and
44 per cent of the upper middle aged consumers were willing to purchase some other brand if they are
not able to get a particular brand. The corresponding percentage among youth and middle aged are 38
and 40 respectively.
6. Brand Information
Advertisement serves as the major source in providing information about brands of
cosmetics to
the respondents. Another major source of information was friends group.
6.1 Percentage of females consumers are high in the category of those who received the
information from family and friends compared to their male counterparts. But more men
consumers depended on advertisement compared to women.
6.2 The source of information of brands for 44 per cent of the housewives was
advertisement, 28
per cent got it through friends and another 20 per cent through family members. The main source of
information of brands among the student groups was friends when 30 per cent got it through
advertisement. Around 60 per cent of businessmen, 50 per cent of professionals and 57 per cent of
executives got information about new brands though advertisement.
6.3 A half of the respondents belonging to the lower income category and 45 per cent in
the upper
income category got the information about the brands through advertisement. The corresponding
percentage among the middle income group was only 34. Friends groups served as the sources of
brand information in the case of 36 per cent of the respondents in the middle income, a third of the
upper income group and more than a quarter of those in the lower income groups.
6.4 About 47% of the respondents living within the town and 50.6% of the respondents
living in
the sub-urban get the information about new brands from the advertisements. Friends group served as
the main source of information about a new brand for 32 per cent of the respondents living within town
whereas the corresponding percentage among those living it the sub-urban region came to only 24.
6.5 Majority of the respondents except for people who have qualification less than
10thClass,
when they purchase a new brand get the information from the advertisements. Family members are
the major source of information for the respondents who have qualification less than 10th Class. Thirty
eight per cent of the respondents who have passed 10th class got the information about a new brand
though friends.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
592
6.6 Advertisement was the main source of information about brands among 57 per cent of
the
middle aged and a half of the youth. Among teenagers, 53.3 per cent came to know about the different
brands of cosmetics through their friends. Forty two per cent of the upper middle aged consumers
came to know about the brands through friends.
7. Criteria for Purchase
Around 53 per cent of the respondents considered quality as the most important criteria for selection of
purchase of cosmetics. About a quarter each of the respondents considered the factors like price
(23.7%) and brand (23%) for determining the purchase of cosmetics.
7.1 About 49 per cent of males and 59 per cent of the female respondents considered
quality as
the main criterion for purchase of cosmetics. Price seems to be a concern for men (27%) for selecting
cosmetics compared to their women counterparts (19%). There is no substantial gender difference
among the respondents considered brand as the main criterion (males 24% and females 22%).
7.2 Quality was considered as the major criterion for brand selection among the students
(71 %),
teachers (67 %), businessmen (58%), housewives (52 %), professionals (50 %), and executives (43
%). Price was the main concern while purchasing cosmetics among government employees (45%).
This may be because of the limited source of income available to these people to purchase cosmetics.
7.3 Sixty per cent of the respondents in the lower income group, 55 per cent in the upper
income
group and 48 per cent in the middle income category were quality conscious while selecting the
cosmetics items. Brand was considered to be a main concern among a third of the respondents
belonging to the middle income group. That, is relatively a larger per cent in the middle income
respondents were brand conscious compared to lower and upper income categories.
7.4 Quality was considered as the most important criterion for selection of purchase of
cosmetics
by respondents than price and brand by the people who live within the town and also by
the
people who live in the sub-urban areas.
7.5 Quality was considered as a more important criterion for purchase of cosmetics by
respondents than price and brand by the people across all the qualifications. Respondents who
possess SSLC consider Price also as one of the important criterions. Whereas 35 percent of the PDC
qualified respondents thought of brand as a criterion for purchase the corresponding percentages
among other educational groups found to be relatively less. The criterion for purchase is significantly
different among respondents having different qualifications. Pearson Chi-square value is 20.150 for 10
degrees of freedom at 5 per cent level of significance.
7.6 Quality was considered as a more important criterion for purchase of cosmetics by 60
per cent
of the youth, 5 6per cent of the teenagers, 49 per cent of upper middle aged and 45 per cent of middle
aged respondents. Around 29 per cent of the middle aged consumers were brand conscious. About a
third of the teenagers, 29 per cent of the upper middle aged and 26 per cent of the middle aged people
were price conscious in selecting cosmetics.
8. Spending Patterns
About 57.6 per cent of the respondents spend about Rs.101 to 300 for purchasing
cosmetics. The
rest of the respondents spent an amount in the range of 301-500.
8.1 Percentages of females are high in the categories of consumers who spent an amount
in the
range of Rs.101-200 whereas percentages of males are high in the categories of 301-400
and 401-
500.
8.2 A quarter each of the housewives and executives spent more than Rs. 500 per month
for
cosmetics. Thirty two per cent of the respondents belonging to the student community had expenditure
in the range of Rs.301-400. Around 35 per cent of the teachers, a quarter of businessmen, 23 per cent
of the govt. employees, more than 20 per cent of the housewives spent an amount in the range of
Rs.201-300 per month for cosmetics. Twenty three percent each of

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
593
businessmen, government employees and teacher used to spend between Rs. 101 and
200. No
substantial variation in spending patterns is found among different occupational groups.
8.3 About 72 per cent of the respondents in the lower income group had an expenditure
of less
than Rs.300 per month for their cosmetic purchase while 66 per cent in the middle income and 47 per
cent in the upper income respondents spent the same amount. More than half of the respondents
belonging to the upper income group, 43 per cent of those in the middle income group spent a higher
amount (more than Rs.300) for purchasing cosmetics. That is respondents belonging to the lower
income categories spent a lesser amount compared to those in the upper income group. Chi-square
test substantiates the relationship between income and spending pattern as significant at 1 per cent
level of significance. Pearson Chi-square value is 34.822 for 10 degrees of freedom.
8.4 About 46.6 per cent of the respondents living within town spend about Rs.201 to 300
for
purchasing cosmetics and about 45 per cent of the respondents living in the sub-urban spend between
Rs. 101-200. When 21 per cent of those in the sub-urban spend an amount less than 100 for cosmetic
purchase, only 8 per cent of those within the town did so. That is the respondents living within the town
had a higher expense for cosmetics compared to those in the sub-urban areas.
The relationship between place of residence and spending pattern is significantly related
at 5%
level for 5 degrees of freedom (Pearson Chi-Square Value is 12.964).
8.5 Spending pattern among all the of respondents having, below 10th class education
about half
of those qualified 10th standard and 48 per cent of post graduation seems to be less (up to Rs.300 per
month) compared to respondents having other educational qualifications. Around half of the graduates,
and 41 per cent of 12th class spent an amount in the range of Rs.301-500 per month for cosmetics.
8.6 Seventy per cent of teenagers, 58 per cent of youth, 57 per cent of the upper middle
aged, and
56.6 per cent of the middle aged had a monthly expenditure up to Rs.300 for purchasing cosmetics.
Around 45 per cent of middle aged, 43 per cent among the upper middle aged, and 42 per cent of
youth spent an amount of more than Rs.300 per month for cosmetics.
Major Findings and Discussions
Gender
Male Consumers
Male consumers generally prefer to purchase and make the brand selection of cosmetics individually.
Quality is the major factor influencing the purchase decision of male consumers. They tend to buy
cosmetic items from a single shop of their convenience. It is also observed that male consumers buy
all their cosmetic items from one shop.
Female Consumers
It has been observed from the study that female cosmetic consumers prefer to purchase cosmetics
individually. It also reveals that one of the main sources of information among the females about
different brands of cosmetics is friends group. Even though friends play a very important role in women
cosmetic purchases, the specific brand selection is most of the times done individually. Women
consumers tend to buy cosmetic items from any shop of their convenience rather than a single shop.
They buy all their cosmetic items from different shops rather than a single shop. Quality is given
utmost preference by the women consumers and they tend to spend Rs.101- 300 per month on
cosmetics.
Male consumers tend to spend more on cosmetics i.e. Rs. 301- 500 per month when compared to
females. The findings of Barson (2004) suggest that men’s spending on cosmetics is increasing and
that is mainly due to the demand for men’s hair care, deodorants, razors and blades.

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
594
Selecting the brand exclusively by the spouses or together by both the spouses seems to be enjoyed
by the men compared to women. Women are found to be more, brand specific when compared to
male consumers.
Age
Mode of purchase among teenagers, youth and aged respondents is dominantly individual. Among the
middle aged the practice of purchasing with spouse is prevalent. This difference in mode of purchase
among different age groups is statistically significant. The selection of brand by the respondents
across all the age groups is done individually by themselves. Spouses were involved in the brand
selection among middle aged and upper middle aged cosmetic consumers. The cosmetic consumers
irrespective of their age groups tend to purchase from different shops. However purchasing all their
cosmetics from a particular shop is prevalent among middle aged and upper middle aged groups
compared to youth and teenagers. Youth, middle aged and upper middle aged respondents do not
purchase other brands if they don’t get a specific brand and half of the teenagers are found to be
brand specific. Youth and middle aged dominantly depend on advertising as a source of brand
information. But teenagers and aged people got the information through friends. Age and source of
brand information is statistically significant. Quality is the main criterion for purchase of cosmetics
among all the age groups while some of the teenagers and upper middle aged were price conscious.
When compared to respondents belonging to other age groups a higher number of middle aged were
brand conscious. No substantial difference is observed in the spending pattern of the respondents
belonging to different age groups.
Place of Residence
Urban & Suburban Consumers
Urban & Suburban consumers purchase & select their brands individually. Respondents
belonging to both the categories do not have any specific shop of preference for purchase
and
they purchase in multiple shops for their cosmetic needs. Both the types of consumers are found to be
brand specific and Advertisement is the major source of brand information. Quality is the most
important criterion for the purchase of cosmetics for both urban and suburban consumers. Urban
consumers tend to spend more on cosmetics, whereas Suburban consumers tend to spend less. This
might be due to rural and suburban areas concentrating on basic toiletries and cosmetics
(Euromonitor, 2006)
Qualification
Majority of the respondents irrespective of their educational qualification tend to purchase individually
and they consider quality as the most important criterion for purchasing cosmetics. The main mode of
brand selection among the respondents is individual. Respondents with 10th class education are not so
brand specific and tend to purchase all their cosmetics from a single shop. They also take into
consideration the price as one of the factors for purchase of cosmetics. The study also reveals that
respondents with 10th class education tend to spend less on cosmetics and rest all categories of
respondents spend more on the same this can be mainly because it has been observed from the study
that respondents belonging to the lower income categories spent a lesser amount compared to those
in the upper income group.
Occupation
Housewives tend to purchase with their spouse, while most of the respondents in all other
occupational categories purchase cosmetics individually. Respondents belonging to all occupational
groups except teachers and businessmen make their purchase of cosmetics from any shop of
convenience, but these two categories had specific shop for their purchase. Farmers and teachers
were particular in purchasing from a single shop whereas majority of the respondents in all other
occupational groups purchased from multiple shops.
Respondents in all the occupational groups select their brand of cosmetics individually but Teachers,
Government. Employees and Executives make their purchases along with their spouses. Executives
and professionals were not particular about their brands of cosmetics. Rest of the respondents
belonging to other occupational categories was brand specific. The main source of

Part VI – Consumer Markets & Marketing


International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
595
brand information among students was friends. Most of the respondents belonging to
other
categories got the brand information through advertisements.
A good number of Government Employees were observed to be price conscious and rest of the
respondents considered quality as the main factor for cosmetic purchase. Some of the housewives,
businessmen and executives were reported to be brand conscious. And it was also found that
executives and housewives tend to spend more on cosmetics per month. The monthly expenditure for
cosmetics among students seems to be marginally high. No substantial variation in spending pattern is
found among other occupational groups.
The chi-square test substantiates the relationship between occupation and the shop
preference i.e.
shop preference of cosmetic consumers differ according to the occupation.
Income (upper, middle and lower income consumers)
The number of respondents who purchase cosmetics individually is more in the case of respondents
belonging to the lower income group and when compared to the upper and middle income groups,
respondents in the lower income category preferred to purchase all their cosmetics from a single shop.
More than half of the respondents in the upper income, middle income, and in the lower income
category were brand specific in selecting cosmetics. The remaining respondents had the habit of
purchasing any brand.
The main source of information about the brands among the lower and upper income category is
advertisement, whereas advertisement and friends groups were found to be the major sources of
brand information in the case of the respondents in the middle income category. Quality seems to be
the predominant criterion for cosmetic selection among all the three income categories. However,
brand was also considered to be a main concern among a third of the respondents belonging to the
middle income group. Respondents belonging to the lower income categories spent a lesser amount
compared to those in the upper income group. Chi-square test substantiates the relationship between
income and spending pattern as significant at 1 per cent level of significance.
References
Barson, Donna C. October, 2004
Blackwell, R.D.; Miniard, P.W.; Engel, J.F. (2001). Consumer Behavior (Ninth Edition). Fort Worth:
Hartcourt College Publishers.
Briney, Claire . (2004b). Global Cosmetic Industry, December. .
Briney, Claire. (2004a).Global Cosmetic Industry, August
Chambers Encyclopedia, Volume IV, George Newness Limited, London 1959, p148
Chernev, Alex. (1997). The effect of common features on brand choice: Moderating role of attribute
importance. , Journal of Consumer Research, 23, 304-311.
Euromonitor International: Country Market Insight. (2006). Cosmetics and Toiletries – India, August.
Glenn B. Voss and A. Parasuraman. (2003). Prepurchase Preference and Postconsumption Satisfaction in a
Service Exchange, Marketing Science Institute, Report No. 03-107.
Loudon, D.; Della Bitta. (1986).A. Consumer Behavior. Concepts and Applications, New York: McGraw-
Hill.
Malhotra,Pervin (2003, May 2). The Beauty of Being a Beautician. Chandigarh, The Tribune.
Monteiro, Noella. Report Date: 04/04/2003
Russo, Edward J. and Leclerc, France. (1994 ). An Eye-Fixation Analysis of Choice Processes for
Consumer Non Durables, Journal of Consumer Research, 21, 274-290.
Sinha, P. K. (2003). Shopping Orientation in the Evolving Indian Market, Vikalpa, 28(2), 13-22.
Vigneron, Franck and Johnson, Lester W. (1999). A Review and a Conceptual Framework of Prestige-
Seeking Consumer Behavior. Academy of Marketing Science Review, 1999 (1), 1-15.

You might also like