FACTORS INFLUENCING CONSUMERS’ BUYING BEHAVIOR TOWARDS SKIN

CARE PRODUCTS AMONG Y AND Z GENERATION IN SELECTED AREA IN

In partial fulfillment

of the requirements for the subject

MKTG55 Market Research

FALCULAN, JAREE

JIMENEZ, JIAN GABRIEL

LASHERAS, LOUIS WAYNE

January 2022
 CHAPTER 2

REVIEW OF RELATED STUDIES AND LITERATURE

This chapter includes related studies, concepts, and works of researchers that

benefit the study's concepts.

Foreign Studies

Consumer Behavior

According to nan (2017), consumers’ confidence in buying certain product through

online shopping are sometimes affected by social influence that they usually gather from

reading the comments or reviews of another previous buyer. Consumers tend to vote for

reviews with high varied uncertainty, while they continue to prefer to purchase product

with less product uncertainty from reviews. Consumer buying behavior refers to the

selection, purchase and consumption of goods and services for the satisfaction of their

wants (Ramya & Ali, 2016). There are different processes involved in the consumer

behavior. Many factors, traits, and characteristics influence the individual in who it is, as

well as the consumer in his decision-making process, shopping habits, purchasing

behavior, the brands it buys, and the retailers it goes. Every one of these factors

contributes to a buying behavior. The consumer begins by attempting to identify which

commodities he wishes to consume, and then he selects only those commodities that

promise greater utility. After selecting the commodities, the consumer estimates how

much money he has available to spend. Finally, the consumer analyzes the current

commodity prices and decides which commodities he should consume.

According to Peter (2020), that age is extensively identified as a significant factor

in defining consumer behavior. But comparatively, age acts as a boundary to separate

the behavior of one set of consumers from another. That separation is evaluated as a

generational cohort. That evaluation and summarization of the characteristics of that

specific segment of generation are challenging and highly resource consuming. In this

study, Generation Z was identified as the population who was born between 1995-2000.

generation z, called I-generation or post-millennial. Generation Z has never known a

world without smartphones and social media since technology has been readily available

and accessible to them. They have developed fine motor skills to be able to manipulate

a phone or tablet. This is the first generation to have Internet technology, so readily

available. They take the Internet for granted and believe web sites such as Google,

Facebook, Instagram and Snapchat as their community. While, Facebook might have

been the preferred social media outlet of previous generations, it seems Gen Z is more

receptive to Snap Chat, Instagram, and Twitter, using short audio and video clips to

complement their information intake. Therefore, they are considered the most tech-savvy

generation. Generation Z has emerged as one of the most mystifying consumers as they

are tech-savvy, digitally connected and educated users of technologies in the

marketplace. Their cognitive power and social media networking have made them the

market mavens who possess a wide range of information and consumer knowledge about

many dimensions of the markets. According to (Wijaya, Darmawati, Kuncoro, 2020) that

generation Y is more individualistic but concerned with social responses, more educated,

technologically savvy, and technologically updated information, which is more structured

Y. involving the activities of this community group. Generation Y enjoys electronic media

such as television and the Internet, and the majority respond to advertisements based on

billboard media and shared media in the community. these behaviors need to be taken

into consideration to determining the appropriate media for this generation. Technology

has a significant impact on Generation Y's purchasing habits. It has an impact on how

they find and compare products, as well as how they obtain them. The prevalence of

technology in this generation has resulted in many of their behaviors, such as multitasking,

a desire for immediacy, and the belief that products should be tailored to them. One of

Generation Y's most infamous characteristics is that they are the ultimate multitaskers.

Generation Y, also known as Millennials or Echo Boomers, are the offspring of the Baby

Boomers. They were born between the years of 1978 and 1994.

Marketing of skin care

Skin care have nearly doubled in terms of marketing and sales costs (Rähse, 2019).

When compared to the pharmaceutical, consumer goods, and food industries The costs

are estimated to be between 35% and 65% of net sales. Low manufacturing costs enabled

the high marketing costs, the impact of which will be visible in pricing strategies. Skincare

products are no longer limited to female customers, as men are increasingly purchasing

skincare products as a result of changing lifestyles and increased self-consciousness

about their appearance (Ho et al., 2020). Moreover, men today are becoming more aware

of the importance of skin hygiene for maintaining an attractive appearance. Hence, this
study examines the skincare products purchases made by men. Understanding why men

purchase skincare products and what type of skincare products they purchase will enable

industry players to plan new products and marketing strategies according to customers’

needs.

Retailers’ and Customers’ relationship

This emphasizes the significance of skin care retailers-consumer identity

congruence. the compatibility of the retailers’ identity and the consumer's identity Skin

care specialists can use identity congruence to build meaningful consumer-brand

relationships, resulting in increased engagement, brand loyalty, and willingness to pay.

Creative merchandise offerings and innovative merchandising strategies contribute to the

development of a distinct skin care brand identity and facilitate consumer communication

of that identity. The composition and the size of the product assortment of the products,

and quality of the merchandise on offer communicate what the brand represents and help

categorize the brand in consumers’ minds (Desmichel and Kocher, 2019). In today is

interconnected, online world, where the customer journey evolves across various

channels, skin care specialist must have clear identities that they communicate effectively

to consumers. Having a retail brand identity that overlaps with the consumer's identity

increases the opportunity to forge a meaningful consumer-brand relationship; one that

leads to higher customer engagement, enhanced brand loyalty, and increased willingness

to pay. While it is critical for retailers to establish congruence between the consumer's

own identity and the retailer's identity, it is also critical to recognize that both identities will
evolve over time. To keep the identities consistent, the retailer must constantly identify,

craft, and integrate consumer experiences across touchpoints in a way that resonates

with the consumer. Utilizing collections allows retailers to drive customer identification

with the products and encourages customers to dive deeper into the retail space (Wallace,

2020).

Pricing of skin care

Indian consumers are price sensitive, and the skin care market is becoming

increasingly competitive by segmenting itself into skincare, ayurvedic cosmetics, non-

herbal or non-ayurvedic skincare, and gender specific products. Firms try to win the game

through price wars in a market like cosmetics, where many players operate with more

similar products. According to Shahbandeh (2020), that several multinational

corporations, including L'Oréal, Unilever, Proctor & Gamble, Estee Lauder, Sheseido, and

Lancome, dominated the Indian cosmetic industry. The rise of social media channels has

also contributed to an increase in the demand for cosmetic products. The global cosmetic

business grew by 5.5 percent in 2018 compared to 2017, and skin care is the leading

segment in the cosmetic industry, accounting for 39 percent of the market. Hair care,

make-up, and skin care are the other major segments of the cosmetic industry. Items,

oral care products, perfumes, toiletries, and deodorants While the hair care segment

contributes 21%, the cosmetics segment contributes 19%. The skin care industry is

expected to dominate, with Asia Pacific leading the way. The association between age

and decrease in quantity with price increase is significant only for fairness creams, but
there is no association between age and elasticity for any product category when the

price decreases. According to income analysis, there is only a relationship with elasticity

for Talcum powders, both for a price increase and a price fall. When prices are low,

occupation has no effect on elasticity; however, when prices are high, an association

between occupation and sunscreen products is established. Income and occupation have

had little influence on demand variations caused by price changes (Jyothi and

Venkateswarlu, 2020).

Local Studies

Buying Behavior

Consumers in the Philippines appear to be developing wiser buying behavior. They

seek out promotions that offer their favorite products at lower prices, and they appear to

compare prices more frequently before making purchases. The act of choosing at the

grocery store, supermarket, boutique, or mall is more than just purchasing (Cosep, 2019).

Despite infrastructure constraints, the rapid growth of information technology has clearly

influenced the landscape of consumer behavior in the Philippines. The purchasing habits

of Filipino consumers have shifted as a result of increased access to products and

services via online channels (Legaspi, Galgana and Hormachuelos, 2016). Before buying,

Filipinos generally have preferred brands and types. These brands were chosen based

on their reputation for quality, longevity, and affordability. Although Filipinos are careful of

product pricing, most Filipinos will neglect the price if they get more value for the money

(Cosep, 2019).
Customer Demand

According to Yanga and Moya in a periodical in the Manila Standard (2017),

domestic demand for beauty products is on the rise, amid rising income and evolving

lifestyle of Filipinos.

Philippines Skin Care Product Market

Skin care is the practice of maintaining and enhancing one's physical appearance

through the use of various skin care products such as cream, lotion, and others, according

to Philippines Skin Care Product Market (2017). These products are easily accessible to

end users in the Philippines through a variety of distribution channels such as grocery

stores, online stores, pharmacies & drug stores, department stores specialty stores, and

beauty salons. The Philippine skin care products market has grown rapidly, due to a rise

in disposable income and a shift among Filipinos toward a healthier lifestyle. However,

the recent coronavirus outbreak has had a significant impact on the personal care and

cosmetic industry, as well as all stages of the supply chain and value chain. It has also

had an impact on consumer behavior in the Philippines when it comes to purchasing

cosmetics and skin care products.

The Philippine skin care product market analysis (2017) examines the market

based on product type, demographics, and age group. The market is divided into cream,

lotion, and other categories based on product type. It is divided into male and female

demographics. It is divided into three age groups: generation X, millennials, and

salons, pharmacies & drug stores, and online sales networks.

According to sales channel (2017), the supermarket/hypermarket held the lion's

share of the Philippines' skin care products market share in 2017. This is due to the

increased popularity of retail chains due to the availability of a diverse range of consumer

goods under a single roof, as well as ample parking space and convenient operating

hours. Consumers in the Philippines prefer to buy on-sale items. The beauty salons

segment in the Philippines, on the other hand, is expected to grow at a rapid pace due to

an increase in men's interest in personal grooming. As a result, the adaptation of anti-

aging products and other specialized men's skin care products is increasing.

According to Business Insight (2021), Skincare products include creams, lotions,

and powders that improve the quality and health of the skin and provide nourishment.

These products are used on a daily basis by both men and women for a variety of

purposes including moisturizing, hydrating, and cleansing. Organic and herbal skin care

has become popular in recent years. This is due to public awareness of the harmful effects

of synthetic chemicals on the skin. Natural ingredients, such as leaf extracts and root

extracts, are safe to use on the skin because they have no negative side effects.
REFERENCES:

Ramya, N., Mohamed, A (2016). Factors affecting consumer buying behavior,

2(10), 76-80. https://www.researchgate.net/profile/Ramya-

N/publication/316429866_Factors_affecting_consumer_buying_behavior/li

nks/58fd7b5e0f7e9ba3ba55f83c/Factors-affecting-consumer-buying-

behavior.pdf

Nan (2017). consumers' buying behavior on online shopping.

https://www.academia.edu/40357641/

consumers_buying_behavior_on_online_shopping_an_utaut_and_lum_m

odel_approach

Smart Computing and Systems Engineering (2020). Profiling Purchasing

Behavior of Generation Z, 158-163

https://www.researchgate.net/publication/348471036_Profiling_purchasing

_behavior_of_Generation_Z

Wijaya, T., Darmawati, A., Kuncoro, A. (2020). e-Lifestyle Confirmatory of

Consumer Generation Z, 11(10), 27-33.

https://www.researchgate.net/profile/Tony-Wijaya-

2/publication/346661456_e-

Lifestyle_Confirmatory_of_Consumer_Generation_Z/links/602a6a83a6fdc

c37a82ab41e/e-Lifestyle-Confirmatory-of-Consumer-Generation-Z.pdf

ho (2020). Malaysian Males Skincare Product Purchases, 3(3), 94-103.

https://myjms.mohe.gov.my/index.php/ajrbm/article/view/15109/7761
Wallace (2020) and Desmichel and Kocher (2019). Journal of Retailing Forging

meaningful consumer-brand relationships through creative merchandise

offerings and innovative merchandising strategies, 97(1), 81–98.

https://reader.elsevier.com/reader/sd/pii/S0022435920300889?token=036

C189

Jyothi, M., Venkateswarlu, H. (2020), Rähse, W. (2019). Pricing Strategies and

consumer perception – study of skin care products, 11(7), 1222-1231.

IJM_11_07_108-with-cover-page-v2.pdf (d1wqtxts1xzle7.cloudfront.net)

Legaspi, Galgana, Hormachuelos (2016). Impulsive Buying Behavior of

Millennials on Online Shopping.

https://clarehormachuelos.com/2018/06/06/impulsive-buying-behavior-of-

millennials-on-online-shopping/

Cosep, M., (2019). Common Filipino Shopping.

https://cebudailynews.inquirer.net/233606/common-filipino-shopping-

behaviors

Philippine skin care product market analysis, Business Insight (2021), sales

channel (2017). The global skincare market is projected to grow from

$100.13 billion in 2021 to $145.82 billion in 2028 at a CAGR of 5.52% in

forecast period, 2021-2028. https://www.fortunebusinessinsights.com/skin-

care-market-102544 Skincare Market Share, Growth | Industry Trends

Analysis, 2028 (fortunebusinessinsights.com)