Consumer buying Behaviour Assignment

Consumer buying Behaviour 1
Impact of Promotional Activities on Consumer buying Behaviour in Cosmetic Industry: A
Case Study of Natio Cosmetics, Australia.
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EXECUTIVE SUMMARY
The study aimed to determine the impact of Impact of Promotional Activities on Consumer
buying Behaviour in Cosmetic Industry by using Natio Cosmetics, Australia, as the case
study. More precisely, the research aimed to ascertain the promotional activities used to
market Natio Cosmetic products, the weaknesses of its promotional strategy and make
recommendations for an effective advertisement that will increase sales and market share of
the organization.
The research was carried out at the main offices of Natio Cosmetics and both primary and
secondary data collected by the use of interview and questionnaires in addition to individual
observation. Content analysis was used to gather secondary data from existing relevant
literature.
The study population involved 500 selected employees of the company in addition to
customers that visited the outlet. The respondents were sample using purposive sampling and
random sampling; the data gathered using structured questionnaires. Quantitative data were
analyzed using SPSS and the findings presented in the form of tables and figures.
Based on the research findings, the research concluded that promotional activities influence
consumers buying behavior by gaining their attention, creating interest and developing a
desire to buy the products. The study recommends Natio Cosmetics to specialize in their
production, implement effective promotional activities, design Customer-oriented
Promotional Activities and explore additional factors that influence consumer buying
behaviors to increase sales and market share

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Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
LIST OF TABLES.....................................................................................................................6
LIST OF FIGURES....................................................................................................................7
CHAPTER ONE: INTRODUCTION........................................................................................8
1.1 Introduction......................................................................................................................8
1.2 Overview of the Industry Partner.....................................................................................8
1.3 Problem Statement............................................................................................................9
1.4 Research Aim.................................................................................................................10
1.5 Research Questions........................................................................................................10
1.6 Structure of the Report...................................................................................................10
CHAPTER TWO: LITERATURE REVIEW..........................................................................11
2.1 Introduction....................................................................................................................11
2.2 Importance of Promotional Activities in Cosmetic Industry..........................................11
2.2.1 Creates Awareness...................................................................................................11
2.2.2 Advertising Conviction............................................................................................11
2.2.3 Making Appeals.......................................................................................................11
2.3 Factors That Influence Consumer Purchasing Behaviour..............................................12
2.3.1 Cultural factors........................................................................................................12
2.3.2 Social factors............................................................................................................12
2.3.3 Gender factors..........................................................................................................13
2.3.4 Religion factor.........................................................................................................14
2.4 Factors Affecting Promotional Activities of Cosmetics.................................................14
2.4.1 Changing Face of Cosmetic Distributors.................................................................14
2.4.2 Regulation of Drug and Cosmetic Act and the Fair Packaging and Liability Act...15
2.5 Theory of Consumer Behaviour.....................................................................................15
2.5.1 Engel, Kollat and Blackwell (EKB) Model.............................................................15
2.6 Impact of Promotional Activity on Customer Purchase Intention.................................17
2.6.1 Altering Customer Behaviour and Loyalty..............................................................17
2.6.2 Increase competitive edge of the organization.....................................................17
2.6.3 Promotional Strategies..........................................................................................18
CHAPTER THREE: METHODOLOGY................................................................................19

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3.1 Introduction....................................................................................................................19
3.2 Research Design.............................................................................................................19
3.3 Target Population and Sampling Design........................................................................19
3.3.1 Population................................................................................................................19
3.3.2 Sampling Design......................................................................................................20
3.4 Data Collection...............................................................................................................21
3.5 Data Analysis..................................................................................................................22
3.6 Ethical Issues..................................................................................................................22
CHAPTER FOUR: FINDINGS...............................................................................................23
4.1 Introduction....................................................................................................................23
4.2 Demographic Features of the Respondents....................................................................23
4.2.1 Age of the Respondents...........................................................................................23
4.2.2 Gender of the Respondents......................................................................................24
4.2.3 Education Level of Respondents.............................................................................24
4.2.4 Awareness on Promotional Strategies in Cosmetics................................................25
4.3 Promotional Strategies used by Natio Cosmetics...........................................................26
4.4 Impacts of Promotional Activities on Consumer Buying Behaviour.............................26
4.4.1 Promotional Activities Draws Consumers’ Attention on Natio Cosmetic Products
..........................................................................................................................................26
4.4.2 Promotional Activities affect Consumer Buying Behavior by developing interest.28
4.4.3 Promotional Activities affect Consumer Buying Behavior by Generating Desire. .28
4.5 Social Factors that influence Consumer Buying Behaviour...........................................29
4.5.1 Self Esteem Influences Consumer Buying Behaviour.............................................29
4.5.2 Attitude Influences Consumer Buying Behavior.....................................................30
4.5.3 Social Class Influences Consumer Buying Behavior..............................................30
4.6 Influence of Religion on Consumer Buying Behaviour.................................................31
4.7 Influence of Gender on Consumer Buying Behavior.....................................................32
4.8 Influence of Culture on Consumer Buying Behavior.....................................................33
CHAPTER FIVE: DISCUSSIONS..........................................................................................35
5.1 Introduction....................................................................................................................35
5.2 Promotional Activities Used By Natio Cosmetics.........................................................35
5.3 Challenges Faced By Natio Cosmetics in Developing Attractive Promotional Features
..............................................................................................................................................36

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5.4 Factors Leading to the Decline in Organizational sales.................................................37
5.4.1 Types of promotional activities...............................................................................37
5.4.2 A dynamic cosmetic industry..................................................................................37
5.4.3 Varying factors that influence consumer buying behavior......................................38
5.5 Influence of Promotional Activities on the Customer Purchase Intention.....................38
CHAPTER SIX: RECOMMENDATIONS.............................................................................40
6.1 Introduction....................................................................................................................40
6.2 Specialization of Cosmetic Products..............................................................................40
6.3 Implementation of effective promotional activities in the company..............................40
6.4 The Natio Cosmetics Promotional Activities should be Customer-oriented..................41
6.5 Evaluation of additional factors that influence consumer buying behaviors to increase
sales and market share..........................................................................................................41
CHAPTER SEVEN: CONCLUSIONS AND LIMITATIONS...............................................43
7.1 Conclusions....................................................................................................................43
7.2 Limitations......................................................................................................................43
References................................................................................................................................44
Appendices...............................................................................................................................51
Appendix 1: Questionnaire...................................................................................................51

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LIST OF FIGURES
Figure 4.1: Awareness on Promotional Strategies in Cosmetics.............................................25
Figure 4.2: Promotional Strategies used by Natio Cosmetics..................................................26
Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products..................26
Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products....................28
Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products........................28
Figure 4.6 Self Esteem Influences Consumer Buying Behaviour............................................29
Figure 4.7 Attitude Influences Consumer Buying Behavior....................................................30
Figure 4.8 Social Class Influences Consumer Buying Behavior.............................................30
Figure 4.9 Religion Influences Consumer Buying Behaviour.................................................31
Figure 4.10 Gender Influences Consumer Buying Behavior...................................................32
Figure 4.11 Culture Influences Consumer Buying Behavior...................................................32

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LIST OF TABLES
Table 3.1 Target Population
Table 3.2 Sample Size
Table 4.1 Age Summary of the Respondents
Table 4.2 Gender of the Respondents
Table 4.3 Education Level of Respondents

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CHAPTER ONE: INTRODUCTION
1.1 Introduction
A consumer is one who purchases and uses products. Consumers demand a variety of
products depending on their tastes and preferences, which vary with time. A consumer’s
tastes and preferences can also be determined by psychological and ecological factors.
Therefore, promotional activities function to influence the taste and preference of the choice
of the consumer (Sharma, 2009). Promotions involve massive publicity of items. Promotional
activities focus on creating awareness of the use and advantage of products to consumers.
Through such activities, products are made available to those interested, and this meets the
desires of the advertiser thus increasing sales (Moriarty et al., 2014). Consumers are usually
rational concerning their purchases and wish to optimize their satisfaction of consumer
products (Sharma, 2009). Solomon et al. (2014) defines consumer behavior as the conduct
that is exhibited by a consumer in seeking for the purchase, use, assessment and dispose of
services or products he/she expects to meet the needs. Consumer behavior encompasses what
consumers purchase, the reason, the period, the place of purchase, the manner of acquisition,
the frequency of the item’s or service use, how to assess it after buying and the effect of such
an assessment, and how they dispose of it (Lantos, 2015).
1.2 Overview of the Industry Partner
Natio Cosmetics, Australia is an Australian family business that manufactures beauty
products for skin care and other cosmetics both domestic and international market. The
company was founded by Max and Viviane Ross and has been in operation for the last 75
years. Natio Cosmetics is one of the cosmetic giants in the Australian market in the
production of natural beauty products, and its products have been rated as one of the best
performing skincare and make-up brands in the pharmaceutical sector of Australia. The
organization is on the move with a definite goal of delivering plant-based, smooth and

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straightforward beauty treatments that are flexible and can meet the current assorted
lifestyles. The company believes that none should lower standards when dealing with
cosmetics and skincare, and as a result, they have developed a quality beauty care system that
is economical to everyone. The organization is determined that consumers expense majorly
on the product and not for expensive advertisements and packaging (Natio, no date).
1.3 Problem Statement
Promotion or advertisement has been researched from various perspectives for decades.
According to (Sharma, 2009) individuals and organizations were disinterested with
advertisements in the 19th century because most of the increase in the sales of beauty
products than was attributed to other aspects such as taste, period of use of the products and
the readiness of the consumer to shift between products (Tellis, 2009). This prompted
numerous research, especially in the cosmetics industry.
The research by de Magistris and Gracia (2008) on the cosmetics industry of Mexico showed
that strategic product positioning and active retailing influence the perceptions of the
consumers and assist in the development of long-term consumer attitude towards the brand.
Lu and Yu-Jen Su (2009) found out that the consumer's selection of mobile phones was
influenced by social, cultural and personal factors. The author also singled out peer pressure
to play a prominent role in controlling the purchase behavior of telephone handsets by
students.
The conflicting research findings on the impact of promotional activities on consumer
behavior was the basis for the problem of this research. Thus, the researcher sought solutions
for how promotional activities influence consumer behavior with a par, particular focus on
the cosmetics industry. The researcher chose cosmetic products as a case study because they
fulfill the settings of products on which they are effective to advertise. The Australian

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cosmetics industry comprises several differentiated cosmetic commodities which accomplish
the same objective. Hence, this study seeks to ascertain the impacts of promotional activities
on consumer buying behavior of cosmetic products with a case study of Natio Cosmetics,
Australia.
1.4 Research Aim
The general aim of this study was to find out the influence of promotional activities on
consumer buying behavior with a specific focus on Natio Cosmetics, Australia.
1.5 Research Questions
1. What kind of promotional activities are used by Natio Cosmetic Brand for attracting
customers?
2. What issues are the company facing in developing attractive promotional features?
3. What are detrimental factors resulting in a decline in sales in the organization?
4. How is the customer purchase intention influenced by the company’s activities?
5. What improved steps can the organization adapt to increase sales and overcome
promotional challenges?
1.6 Structure of the Report
This study comprises of five chapters. The first chapter includes an introduction, problem of
research, and study aim. The literature review is in section two; chapter three comprises of
research methodologies used in the study. Chapter four provides the findings and subsequent
justifications in and evaluation whereas chapters five and six provide discussions and
recommendations respectively. Finally, the seventh chapter offers research conclusions and
recommendations.

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CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
This chapter involves a review of the theoretical literature, empirical literature, research gap
and conceptual framework.
2.2 Importance of Promotional Activities in Cosmetic Industry
2.2.1 Creates Awareness
The objective of promotional activities makes the consumer aware of the organization's
product. The promoter has to therefore carefully choose the medium which will increase the
chances of reaching the target market. This calls for an analysis of the most common media
used by the target consumers (Nelson-Field and Riebe, 2011). Promotional help in not only
creating awareness but also developing an interest in the product by the consumer. This is
usually achieved by exposing the consumer to the benefits of the product and being presented
as the solution to a problem. Through awareness, the number of consumers who are likely to
buy the product is maximized due to the exposure to promotional activities (Butler, 2013).
2.2.2 Advertising Conviction
Promotional activities like advertising serve to arrest the consumer’s attention to a given
product to influence their purchase decision (Lundqvist et al., 2013). This is attained through
providing relevant information to the consumer, like the rewards of the product to the
consumer. The advertisement uses different creativity to share the same information but from
a new light such as the use of humor, celebrities among others. However, care should be
exercised in the use of celebrities to ensure that there is integration and that the focus doesn’t
shift to the creative device but the intended message reaches the target consumer (Gurun and
Butler, 2012).
2.2.3 Making Appeals
Bian and Forsythe (2012) divide message appeals into rational and emotional. Emotional
appeals are geared towards the development of positive feelings and create an individual

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brand, whereas rational appeals are built on facts about the product. Promotional activities
often use emotional appeals because studies have proved them to be most effective (Micu and
Plummer, 2010). This is because the attitudes of the consumers towards a product will
significantly affect their purchase decision and yet positions are based on emotions. Thus
promotional activities use this strategy to make products appealing by influencing the
consumers’ attitudes.
2.3 Factors That Influence Consumer Purchasing Behaviour
2.3.1 Cultural factors
Rani (2014) defined culture as “the intricate symbols and artifacts created by a given society
and passed down from generation to generation as determinants and regulators of human
behavior”. Each culture comprises smaller subcultures or categories of people with a typical
value system based on universal life experiences and circumstances. For example
nationalities, religions, racial groups, etc. (Horner and Swarbrooke, 2016).
Lee and Kacen (2008) researched the influence of culture on consumer buying behavior and
found out that culture substantially affects consumer buying behavior at all its levels be it
ethnicity or personal level. The study outcomes also demonstrated that culture affects both
individual and corporate behavior towards a product. According to Nayeem (2012) culture is
so powerful because an individual would like to conform to it when seeking approval, status,
and belonging. De Mooij (2010) observes that there exist essential cultural differences across
the globe and therefore it’s fatal for marketers to assume of cultural uniformity while making
marketing strategies.
2.3.2 Social factors
According to Kotler (2012), social factors that affect consumer buying behavior can be
grouped into three: family, reference group and social class. Engels (2010) defines family as
a social group that is made up of a minimum of two individuals that reside together due to

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marriage or relationship. The family unit shapes views, values, and attitudes of its members,
be it children, husband or wife (Kotler, 2012). Furnham and Gunter (2008) note that children
influence the purchase decision of the parent in electronic products, snacks, and services like
an outing.
According to Dacko (2008), consumer purchase behaviors are affected by reference groups. It
defines a reference group as that category of people that affect one's behavior, views and
feelings. These groups act as points of reference for people while ascertaining their needs and
creating perceptions (Wang and Xiao, 2009). Therefore, people consent to the influence of
the reference groups due to the perceived rewards. The role and status of persons is a
significant factor of social impact.
2.3.3 Gender factors
Carpenter (2008) found out that buyer frequency in most of the supermarkets in the United
States were affected by demographic factors. More specifically, the study discovered that
health and cosmetic products were frequently bought by females whereas electronic products
were purchased mainly by male shoppers. Kolyesnikova et al. (2009) also studied consumer
purchase behavior concerning gender in Texas. The findings indicated that the future
purchasing behavior of males was persuaded by a sense of appreciation, while the female
shoppers in the USA appeared to have obligatory feelings to the sales representatives and this
affected their future buying behavior. The research concluded that consumer buying
behaviors might be determined by factors considered as apparent and therefore marketers
should be conscious of this while developing marketing strategies (Kolyesnikova, 2009). Hira
and Loibl (2008) further explored the impact of gender on the investment behavior of
consumers and found out that consumer investment preferences and practices were affected
by gender and hence the male and female exhibited varying investment behaviors.

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2.3.4 Religion factor
Religion is an integrated structure of beliefs and practices associated with sacred things,
whereas religiosity is perceived to be the level to which beliefs in a given religious ethics and
are believed and practices by a member (Hawkins, Best, and Coney, 2010). The authors opine
that religious identity influences the purchase decision of its members. Commodities that are
figuratively or ceremonially related to the commemoration of given religious days are freely
bought by the members of that religions as a result of the influence of the religious beliefs.
For instance, most gifts are purchased during Christmas in the Christendom (Hawkins, Best,
and Coney, 2010). Barry and Weinstein (2009) examined the impact of religious association
on consumer behavior and found out distinct variations in the psychographic factors between
protestant churches in Brazil.
2.4 Factors Affecting Promotional Activities of Cosmetics
2.4.1 Changing Face of Cosmetic Distributors
Łopaciuk and Łoboda (2013) report that the cosmetic industry is one of the fast-growing
industries with over profit margin of $7.76 billion by 2018. This lucrative business of
cosmetics has led to an influx of both small and big companies which are competing for the
same market and producing cosmetic products that serve the same purpose. As a result, the
cosmetic industry is the leading one with differentiated products and aggressive
advertisements (Salvador and Chisvert, 2011).
Customers are left with too many brands to choose from because almost all the cosmetic
companies produce a variety of products and almost none of them have focused on a single
brand. Yee et al. (2013) note that the aggressive and advanced marketing strategies adopted
by the cosmetic companies have resulted in the use of specialty stores and through online and
not department stores and pharmacies.

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Yang, Jayashree, and Marthandan (2012) observes that the economies of cosmetic business
have changed because consumers now are not loyal to specific beauty products but instead
buy across brands. This can be attributed to the presence of too many beauty products in the
market, and the consumers have to try each of them before they can settle on one. Also,
Fatima and Lodhi (2015) Opine that aggressive promotional activities have led to the lack of
loyalty to some consumers who cannot stick to one brand. On the other hand, Łopaciuk and
Łoboda (2013) argue that innovative marketing in the current cosmetic industry will increase
market share for beauty products.
2.4.2 Regulation of Drug and Cosmetic Act and the Fair Packaging and Liability Act
According to Singh and Nanda (2012) the increase of consumer protection laws and the
insurgence of many investors into the lucrative industry has led to the revision and
enforcement of legislation by the Federal Food Drug and Cosmetic Act (FFDCA) and the
Fair Packaging and Labelling Act (FPLA) which has led to increased oversight of the
industry. Any false or misleading information labeled on cosmetic products is regarded by
FDA as misbranding (OAIC, 2018).
Singh and Nanda (2012) contends that the new legislation of demanding that all cosmetic
companies to register their facilities with FDA before distribution in addition to the
submission of ingredient statements before approval has been seen as stringent by players in
the industry who have for long been using subliminal advertisements to sell their products
2.5 Theory of Consumer Behaviour
2.5.1 Engel, Kollat and Blackwell (EKB) Model
The Engel Kollat and Blackwell (EKB) model was first developed by James Engel, David
Kollat and Roger Blackwell in 1968 and authored to provide more knowledge to the
consumer buying behavior. The model explains different elements of consumer decision
making and their associations. The EKB model comprises five steps: problem recognition,

Consumer buying Behaviour 16
information search, alternative evaluation, choice and outcome (Solomon, Russell-Bennett,
and Previte, 2012).
Step one is problem recognition wherein the consumer ascertains an issue that requires a
solution or a need which is to be met. This level is when the consumer seeks to ease a state of
disquiet (Ashman, Solomon, and Wolny, 2015). Scott et al. (2017) observe that need
recognition is as a result of the consumers’ detection of the variances between his present
state and the expected state. Step two of the process of decision making comprises of the
search and collection of all information that is relevant to the solution of the current problem.
The time required to gather sufficient information is dependent on the size of the purchase
decision. (Shiffman, 2008).
Step three of the purchase process is the evaluation of the alternatives. This is the stage at
which the consumers resolve between deal-breaker and deal-maker. At this stage, consumers
will consider various factors like brand, price, and quality among others. Step four is choice,
and the consumer decides on the product or service they are to purchase. The purchase
decision will be determined by various factors such as the availability of the preferred
commodity and the influence of the seller (Pickett-Baker and Ozaki, 2008). If the consumer
had purchased, experienced and was contented with the item before, then he is likely to avoid
the previous steps and begin at level four (Solomon et al., 2014).
The fifth and last step in the decision buying process is the after-purchase behavior. This
phase is very critical to the marketer because the attitudes of the buyer and product
assessment will determine if at all there will be future purchase repetitions which may also
lead to brand loyalty or cease to use the item forever. The EKB theory is much applicable to
this study because it explains a simple process of consumer decision making (Lin, Wang, and
Hwang, 2010). Furthermore, has repetitively been revised to incorporate the emerging

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variations and improvements in consumer buying theory and knowledge. On the contrary,
criticism labeled on the model is that it is too robotic and limiting to incorporate all the
varying situations of consumer decision-making process (Ashman, Solomon and Wolny,
2015).
2.6 Impact of Promotional Activity on Customer Purchase Intention
2.6.1 Altering Customer Behaviour and Loyalty
Studies show that almost 75% of the marketing budget of companies goes to sales promotion
(Gedenk, Neslin, and Ailawadi, 2010). And, this has been attributed to the fact that
promotional activities affect the purchase decisions of consumers (Mittal and Sethi, 2011;
Fogel and Thornton, 2008). Promotional activities affect the attitude of the consumers
towards a product and not just to create awareness. This is because the content of the
promotional activities is inclined towards promoting the benefits of the products and solving
predicted customer problems. Martinez and Seock (2017) assert that sales promotion
stimulates consumer purchases and acts as incentives for consumers to go for specific
products. According to Azmi et al. (2016), brand loyalty depends on the post-purchase
experience of the consumer. If the product meets the expectations and performance of the
consumer, then repeated purchases will follow which will ultimately result to brand loyalty.
2.6.2 Increase competitive edge of the organization
Khan et al. (2015) observe that promotional activity are directly related to competitive
advantage and increased market share. The objective of promotion, according to
Familmaleki, Aghighi, and Hamidi (2015) is to increase sales, brand loyalty, and
consequently, market share. Other studies shave also associated successful marketing to
increased competitive advantage (Azmi et al., 2016; Godey et al., 2016).

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2.6.3 Promotional Strategies
2.6.3.1 Digital marketing,
Digital marketing has been defined by Chaffey and Ellis-Chadwick (2016) as a subcategory
of marketing that applies digital technology to place and sells commodities. With
technological advancement, increased globalization, and changing customer needs, thriving
organizations have shifted from traditional marketing to digital marketing. The study by Ryan
(2016) showed that both the old and young spent more time on the internet and therefore
made most of their purchases via the internet.
2.6.3.2 Creative packaging
Kuvykaite, Dovaliene, and Navickiene (2009) note that a good packing design assists
organizations to differentiate their commodities from competitors and positively affects
consumer buying behavior. It also improves product positioning in the market and as thus can
be used to engage the customers and send appropriate message to them. Cosmetic packaging
utilizes different colours as it affects customers purchase decision (Kuvykaite, Dovaliene, and
Navickiene, 2009).
2.6.3.3 Makeovers strategies for promotions
According to Raja & Kavitha (2015), the current dynamic consumer market that is highly
inquisitive before making a purchase decision requires that they first test the product before
purchase. The author recommends the establishment of a department store for free provision
of consolation services and free routine makeover contests to attract customers and improve
sales
2.6.3.4 Giving free samples
Free giveaways are recommended by Raja & Kavitha (2015) as effective strategies for
marketing in the cosmetic industry. Smith (2011) proposes setting a minimum entry number
for customer purchases who qualify giveaways as means of introducing new products in the
market and increasing market share.

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CHAPTER THREE: METHODOLOGY
3.1 Introduction
This chapter outlines the detailed research methodology adopted by the researcher including
research design, target population and sampling design, sampling technique, sample size, data
collection, and analysis.
3.2 Research Design
This study adopted both qualitative and quantitative approaches (Mixed method) (Creswell
and Creswell, 2017). The study ensured a combination of different techniques of the mixed
method approach. A mixed approach was preferred because it makes the research more
comprehensive as a result of the statistical analysis alongside observation, interpretation, and
interview (Creswell and Creswell, 2017).
3.3 Target Population and Sampling Design
3.3.1 Population
The study population comprised of the employees of Natio Cosmetics and the company’s
consumers. The population was chosen to enable the researcher to obtain solutions to the
research questions (Saunders, 2011). The target population was 500 and is shown in table 3.1
below
Table 1Table 3.1 Target Population
Table 3.1 Target Population
Respondents Category Number
Male 200
Female 300
Total 500

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3.3.2 Sampling Design
3.3.2.1 Sampling Frame
The study sampled a total of 55 respondents. However, 50 of them participated in the
research. This was adequate to represent the whole population and permit the
accomplishment of the objective of assessing some aspects of the population and generating
conclusions about the entire population.
3.3.2.2 Sampling Technique
The study used purposive sampling and random sampling to obtain samples from the target
population (Suri, 2011). This approach was used to select prospective respondents on the
basis of their roles in the organization. Data was acquired from essential informants like
Consumers, Accountants, Cashiers, Sales officers, and Marketing Managers because they
have a vital duty in influencing consumer buying behavior of Natio Cosmetic products. The
researcher also used random sampling to select participants among the consumers of Natio
Cosmetics items. This ensured that all the consumers had an equal opportunity of selection
and to minimize the biases of the researcher in the sampling process (Christensen et al.,
2011). To accomplish this regarding customer inclusion in the study, customers that came to
the organization’s offices to buy products were randomly picked.
3.3.2.3 Sample Size
Mugenda and Mugenda (2012) recommend the use of10% of the target population for each
category as a representative sample. The sample size consisted of a total of 50 participants
distributed across the various groups using the percentage proportions as shown in table 3.2
below;
Table 2Table 3.2 Sample Size
Table 3.2 Sample Size

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Frequency Percent
Valid
Female 30 60%
Male 20 40%
Total 50 100%
3.4 Data Collection
Both primary and secondary data were collected. Secondary data was gathered through the
literature review of relevant research to give an in-depth understanding of the research topic
to the researcher. Primary data was collected primarily using questionnaires. The researcher
designed and used structured questionnaires to gather data. They were self-administered. The
researcher used hand delivery to distribute the questionnaires and requested the respondents
to fill them individually. The questionnaires had close-ended questions. The responses were
rated using a Likert scale to enable statistical analysis (Rowley, 2014). Each possible
response is assigned a numerical value and an average of the feedbacks calculated at the end
of the research. The questionnaires were sectioned into three. Section one comprised of the
demographics of the participants namely; respondent’s age, gender, education level, and
category. Section two addressed the awareness of the respondents regarding the Cosmetics
Promotional strategies used by Natio Cosmetics and the impacts promotional activities on
consumer behaviour. The last part dealt with implications of social factors, religion, gender
and culture factors on consumer behavior.

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3.5 Data Analysis
The collected data through completed questionnaires was checked for inclusivity and
consistency, after which it was coded enable categorization of the responses. Quantitative
data were analyzed using content analysis tools and descriptive statistics used to examine the
data with the help of SPSS to obtain percentages and tabulations. The data was then presented
using tables and graphs for easy comprehension.
3.6 Ethical Issues
The informant’s identities will be referenced in anonymity in the entire research to avoid any
potential consequences such as intimidation from the management. Furthermore, the
collected information from Natio Cosmetics will be used with highest confidentiality levels
and any disclosure of personal content for official use will only be done so under the consent.
The information will also be used just for the intended objective. This will be assured by the
use of the University Introduction letter which outlines the aim of the study.

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CHAPTER FOUR: FINDINGS
4.1 Introduction
This section of the study contains the findings of the survey, data analysis, and the discussion.
More specifically demographic features of the respondents such as age, gender, level of
education, promotional activities used by Natio Cosmetics and their impacts on consumer
behavior, and how different factors affect the purchase decision-making process of the
consumers.
4.2 Demographic Features of the Respondents
This part shows the demographic features of the study respondents
4.2.1 Age of the Respondents
Table 3Table 4.1 Age Summary of the Respondents
Table 4.1 Age Summary of the Respondents
Sex of respondent Total
Female Male
Age of
Respondent
25-30 1 2 3
31-35 22 6 28
36-40 3 9 12
41-45 1 3 4
46-50 3 0 3
Total 30 20 50
Source: Researcher’s Analysis (2018)
The study examined the informant’s age to ascertain whether the influence of promotional
activities on consumer buying behaviour varies with age. Based on table 4.1, it is clear that

Consumer buying Behaviour 24
most (28%) of the participants belonged to age bracket of 31-35 years, followed by
respondents aged between 36-40 years (12%), 4% of the respondents were aged 41-45 years
and those of 46-50 years were the least (3%).
4.2.2 Gender of the Respondents
Table 4.2 Gender Summary of the Respondents
The respondents were also asked to indicate their genders, and table 4.2 below shows the
feedback
Table 4Table 4.2 Gender of the Respondents
Table 4.2 Gender of the Respondents
Frequenc
y
Percent
(%)
Female 30 60
Male 20 40
Total 50 100
Source: Researcher’s Analysis (2018)
Table 4.2 shows that 60% of the respondents were female where as 40% were male.
4.2.3 Education Level of Respondents
Table 5Table 4.3 Education Level of Respondents
Table 4.3 Education Level of Respondents
Frequenc
y
Percent
(%)
Diploma 13 26
Degree 30 60
Post
Graduate
5 10

Consumer buying Behaviour 25
Masters 2 4
Total 50 100
Source: Researcher’s Analysis (2018)
The results documented in table 4.3 above clearly shows that 60% of the respondents are
undergraduates, 26% are diploma holders, 10% have post graduate diplomas, and 4% possess
masters.
4.2.4 Awareness on Promotional Strategies in Cosmetics
Majority of the respondents confessed to be conscious on promotional strategies of
cosmetics.
Table 6Figure 4.1: Awareness on Promotional Strategies in Cosmetics
Figure 4.1: Awareness on Promotional Strategies in Cosmetics
Source: Researcher’s Analysis (2018)
Figure 4.1 shows that 72% of the respondents claimed to be totally aware of the cosmetics
promotional strategies, 24% were partially aware, with only 4% being ignorant of cosmetics
promotional activities.

Consumer buying Behaviour 26
4.3 Promotional Strategies used by Natio Cosmetics
The respondents were given four promotional strategies to select among them those used by
Natio Cosmetics. This was aimed at determining the most used promotional strategy by the
company.
Table 7Figure 4.2: Promotional Strategies used by Natio Cosmetics
Figure 4.2: Promotional Strategies used by Natio Cosmetics
Source: Researcher’s Analysis (2018)
The study outcomes show that all the listed promotional strategies are used by Natio
Cosmetics with Digital marketing being the most used (64%), followed by creative packaging
(24%), makeover strategies (8%) and issuing free samples is the least used strategy (4%).
4.4 Impacts of Promotional Activities on Consumer Buying Behaviour
4.4.1 Promotional Activities Draws Consumers’ Attention on Natio Cosmetic Products
Table 8Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products
Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products

Consumer buying Behaviour 27
Source: Researcher’s Analysis (2018)
Figure 4.3 indicates that 56% of the respondents strongly agree that promotional activities
affects consumer buying behaviour by drawing their attention to the products of Natio
Cosmetics, whereas 24% of them agree, 12% disagree, and only 8% strongly disagree.

Consumer buying Behaviour 28
4.4.2 Promotional Activities affect Consumer Buying Behavior by developing interest
Table 9Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products
Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products
Source: Researcher’s Analysis (2018)
Findings from the study as indicated in table 4.4 above show that 44% of the respondents
agree that promotional activities impacts consumer buying behaviour by creating an interest
towards the products of Natio Cosmetics, where as 26% strongly agree, 20% disagree, and
10% of the participants strongly disagree.
4.4.3 Promotional Activities affect Consumer Buying Behavior by Generating Desire
Table 10Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products
Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products

Consumer buying Behaviour 29
Source: Researcher’s Analysis (2018)
Figure 4.5 demonstrates that 58% of the informants strongly agree that their purchase
behaviours are affected by promotional activities by generating a desire for the commodities
of Natio Cosmetics, 26% agree, 8% disagree, and 8% strongly disagree.
4.5 Social Factors that influence Consumer Buying Behaviour
4.5.1 Self Esteem Influences Consumer Buying Behaviour
Table 11Figure 4.6 Self Esteem Influences Consumer Buying Behaviour
Figure 4.6 Self Esteem Influences Consumer Buying Behaviour

Consumer buying Behaviour 30
Source: Researcher’s Analysis (2018)
The study findings in figure 4.6 above shows that 54% of the respondents strongly disagreed
that self-esteem influences their purchase decisions, 24% disagreed, 12% agreed, and 10% of
the respondents strongly agreed.
4.5.2 Attitude Influences Consumer Buying Behavior
Table 12Figure 4.7 Attitude Influences Consumer Buying Behavior
Figure 4.7 Attitude Influences Consumer Buying Behavior
Source: Researcher’s Analysis (2018)
The findings of Figure 4.7 above indicates that 70% of the respondents purchase cosmetic
products based on their attitude towards that specific product, while 18% agree, 8% disagree,
and only 4% disagree to that fact.
4.5.3 Social Class Influences Consumer Buying Behavior
Table 13Figure 4.8 Social Class Influences Consumer Buying Behavior
Figure 4.8 Social Class Influences Consumer Buying Behavior

Consumer buying Behaviour 31
Source: Researcher’s Analysis (2018)
As shown in figure 4.8 above, half of the respondents (50%) strongly agree that they
purchase beauty commodities that are of their social class, whereas 34% agree, 12% disagree,
and 4% of the respondents strongly disagree.
4.6 Influence of Religion on Consumer Buying Behaviour
Table 14Figure 4.9 Religion Influences Consumer Buying Behaviour
Figure 4.9 Religion Influences Consumer Buying Behaviour

Consumer buying Behaviour 32
Source: Researcher’s Analysis (2018)
In figure 4.9, the research found out that 56% of the respondents disagree to the statement
that their religion is significant in determining what cosmetic item to purchase, while 20%
strongly agree, 16% strongly disagree, and only 8% of the respondents agree.
4.7 Influence of Gender on Consumer Buying Behavior
Table 15Figure 4.10 Gender Influences Consumer Buying Behavior
Figure 4.10 Gender Influences Consumer Buying Behavior

Consumer buying Behaviour 33
Source: Researcher’s Analysis (2018)
As indicated in figure 4.10, 60% of the respondents strongly agree that gender influences
their buying behaviour of cosmetics, while 26% agree, 8% disagree, and 6% strongly
disagree to the assertion.
4.8 Influence of Culture on Consumer Buying Behavior
Table 16Figure 4.11 Culture Influences Consumer Buying Behavior
Figure 4.11 Culture Influences Consumer Buying Behavior

Consumer buying Behaviour 34
Source: Researcher’s Analysis (2018)
The study outcomes as shown in figure 4.11 shows that 60% of the respondents strongly
agree to the assertion that their culture prevents them from buying specific cosmetic items,
whereas 20% agree, 12% disagree, and 8% strongly disagree to the conclusion.

Consumer buying Behaviour 35
CHAPTER FIVE: DISCUSSIONS
5.1 Introduction
This chapter provides discussions based on the findings with reference to the research aim.
5.2 Promotional Activities Used By Natio Cosmetics
The researcher analyzed the respondent’s response to different types of promotional activities
adopted by Natio Cosmetics for advertising its commodities. The aim was to ascertain the
most used promotional strategy. The outcomes showed that the company utilized four
significant strategies namely digital marketing (64%), creative packaging (24%), makeover
strategies (8%), and issuing of free samples (4%). Digital marketing and creative packaging
were the most used strategies. The organization used digital marketing like YouTube to show
the production process of the cosmetics right from production to the shelves, and as a result,
the consumers developed positive attitude towards the products. Digital marketing like the
use of online platforms enabled Natio to display the products of the company in their website
and social account with all fundamental information, and these created interests in them thus
motivating them to purchase the products. These findings agree with those of Kuvykaite,
Dovaliene, and Navickiene (2009) who found out that advertisement increases sales through
the creation of the interest.
The organization also uses creative packaging to alter and improve the consumption pattern
of its consumers. Natio Cosmetics employs the use of color, shape, and size of packaging,
product information, and design in creative packaging. The color is a key player in the
purchase decision making of the customer because it first attracts their attention and then
their curiosity leads them to inquire more about the product. Good enough the information

Consumer buying Behaviour 36
provided in the product develops the interest to go further and try out the product after being
convinced. Ritnamkam and Sahachaisaeree (2012) also found out that purchase decisions
were affected by how the males graded their color of choice. The size of the packaging also
affected consumer buying behavior. For instance, the consumers perceived differently
elongated products as of different volume even though they had bought the product before,
this attracted their attention and interest was aroused in them which led to a purchase
decision. Similarly, outcomes were found by Chandon and Ordabayeva (2009).
Natio Cosmetics also promotes its products by the use of makeover strategies. The
organization provides free makeovers to some of its loyal clients on a regular basis. The
organization uses this strategy as a promotional activity to build confidence in potential
customers of the effectiveness of their products thus arousing their interests in their products.
Natio Cosmetics also issues free samples of some of its selected commodities to be tested by
the customers and create a desire in them of trying out their new products and of course to
spread the message of quality products through word of mouth.
5.3 Challenges Faced By Natio Cosmetics in Developing Attractive Promotional
Features
The interview with the managers of Natio Cosmetics gave insight to some challenges faced
by the company in developing engaging promotional activities. First, the competition level of
the Australian cosmetic industry is intense. There are so many cosmetic shops in Australia
each with aggressive marketing strategies. This challenges the organization which also
produces several beauty products because they are not able to quickly mark out their loyal
customers who are being swayed away by the many products in the market and promotions.
As a result, the employees buy a cross-brand of products, and this reduces the company’s

Consumer buying Behaviour 37
market share and sales. Łopaciuk, A., and Łoboda (2013) also found out that stiff competition
was one of the significant challenges in the cosmetic industry.
The changes in legislation in the cosmetic industry was also pointed out as a significant
problem. The imposition of rigid legislation on advertisements by FAD such as the use of
drug or healing related messages in cosmetics as misleading limits promotions whose primary
objective is to attract, create attention and arouse a desire to purchase a given product.
Similar conclusions were arrived at by Singh and Nanda (2012).
5.4 Factors Leading to the Decline in Organizational sales
The findings of the study indicated that the organizational sales are negatively affected by
various factors ranging from internal to external factors. These factors include the types of
promotional activities used by the Natio Cosmetics, stiff competition in the cosmetic
industry, stringent legislation, and dynamic factors that influence consumer buying behaviors.
5.4.1 Types of promotional activities
The study findings indicated that Natio Cosmetics primarily use four promotional activities
namely digital marketing, creative packaging, makeover strategies, and issuing free samples.
The organization used mostly digital marketing and creative packaging to promote its
products whereas other strategies like makeover strategies and the issuance of free samples
were underutilized. The interests of consumers vary depending on various factors such as
social, gender, religion, and culture. Thus the lack of exploring multiple promotional
activities limits the target market of the organization during marketing. This, in turn, reduces
the market share of the company and consequently reduces sales. Zhu and Zhang (2010) also
associated decline in sales with poor marketing.
5.4.2 A dynamic cosmetic industry
The study observations and findings show that the cosmetic industry is one of the fastest
growing industry and as a result, it is flooded with many cosmetic companies which are

Consumer buying Behaviour 38
competing for the same consumers and all are producing beauty products that serve the same
purpose. This scenario is a challenge to Natio Cosmetics which manufactures a collection of
beauty products and competing for the same consumers with other competitors. With
aggressive advertisements and a variety of beauty products to choose from, consumers end up
buying across brands thus leading to declining in sales; an assertion similarly arrived at by
Raja & Kavitha (2015).
5.4.3 Varying factors that influence consumer buying behavior
The dynamic cosmetic markets regarding the ever-changing customer tastes and preferences
pose a challenge to the marketing department of Natio Cosmetics about gaining the attention
of the potential customers through promotional activities in order to influence their buying
behavior. The research found out that consumer buying behavior is affected by various
factors such as social, religion, culture and gender. Therefore, the company is faced with the
challenge of customizing its promotional activities to suit the varying factors in order to
influence the buying behavior of the consumers. Similar findings are noted by Solomon et al.
(2014) who found out that consumer behavior is dynamic based on marketing strategy among
other factors.
5.5 Influence of Promotional Activities on the Customer Purchase Intention
The study findings show that the purchase intention of the consumers is significantly affected
by the promotional activities of the company. The respondents were asked to indicate the
impacts of promotional activities on their buying behavior. The respondents were of the view
that promotional activities attracted their attention and enabled them to research more on the
cosmetic products and thus to develop an interest in them towards a particular item which
influences their purchase intention. Based on the interviews carried out with the respondents,
the findings revealed that promotional activities affected their purchase intention by arousing
interest on Natio Cosmetics because it helps to differentiate the organization’s products from

Consumer buying Behaviour 39
other beauty products. Therefore, promotional operations of the company influence
consumers to buy their beauty products in place of those of the competitors.
The analysis of the feedback of the respondents suggests that promotional activities influence
the purchase intention of the consumers by creating a desire in them thus making them prefer
the use of Natio Cosmetic products in reference with others. New users of Natio Cosmetic
items are likely to be influenced to buy their products after seeing the promotional activities.

Consumer buying Behaviour 40
CHAPTER SIX: RECOMMENDATIONS
6.1 Introduction
This section presents the researcher’s recommendations based on the findings of the study.
The overall objective of this research is to ascertain the impact of promotional activities on
consumer buying behavior by focusing on Natio Cosmetics, Australia.
The Australian cosmetic market is the fastest growing industry with various assortments of
beauty products serving almost the same purpose, and this stimulates stiff competition which
leads to aggressive advertisements. The outcomes of this study have demonstrated that
promotional activities have a significant role in influencing the consumer buying behavior of
Natio Cosmetics and should, therefore, be highly prioritized by the company. The following
are the detailed recommendations that the company can implement to expand its market share
and increase sales:
6.2 Specialization of Cosmetic Products
Natio Cosmetics should conduct thorough market research on which product is purchased by
most of its customers or that which is highly demanded by most consumers in the market.
After which they can specialize in specific products and concentrate its efforts towards the
few products. This is because the Australian and global cosmetic market is experiencing an
influx of companies both small and established ones that produce a variety of beauty products
for the same market and which serve almost the same purpose. As a result, consumers end up
buying across the brands which negatively affects the market share and sales. This strategy
will help in differentiation of the organization's products and in the selection of a specific
market niche which will lead to the creation of loyal customer to their particular brand.
6.3 Implementation of effective promotional activities in the company
Natio Cosmetics should come up with well-designed promotional strategies for
implementation, to influence the aspirations of the consumers, meet their needs and thus

Consumer buying Behaviour 41
influence their behaviors. This is because each successful promotion can only be achieved
after the company has conducted proper situational analysis and formulated marketing
programs that optimize on the factors that influence the purchase decision of the consumers
as the study has indicated (Kotler, 2012). Therefore, the organization should explore other
promotional activities and improve the current ones. For example, the company can adopt the
use of TV adverts, magazine advertising, and the use of T-shirts among others. This will first
arrest the customer’s attention who will develop an interest as he compares and contrasts it
with other market products. This will create a desire to try it out and based on the post-
purchase experience; the customers can become loyal to specific brands courtesy of the initial
encounter promoted by specific promotional activity.
6.4 The Natio Cosmetics Promotional Activities should be Customer-oriented
Customer relationship management involves the coordination of various organizational
departments like the sales, marketing among others with the objective of working towards
meeting the customer needs. The existence of stiff competition in the Australian cosmetic
industry and technology advancement calls for the effective employees and customer
relationship management to succeed. The findings indicate that the buying behavior of Natio
Cosmetics is influenced by the education level, age, and gender. This, therefore, requires
more diversified promotions by examining the customer needs, evaluation of the company’s
products that need to be formulated to meet the needs of the target market and increase the
market share. Additionally, the study found out that most of Natio’s customers are well-
educated meaning that the content of the promotional activities should be formulated in a
manner that will appeal to them in order to arouse interest and create a desire for the beauty
products (Kotler, 2012).

Consumer buying Behaviour 42
6.5 Evaluation of additional factors that influence consumer buying behaviors to
increase sales and market share
Since this research has shown that promotional activities, social factors, gender, culture, age,
education level, and packaging are important in that they affect consumer buying behaviors
of Natio Cosmetics products, it is crucial that the company to further explore other factors
that equally affect consumer buying behaviour such as product rewards, constituents, quality,
price, testimonials and product names. Also, the organization can expand and grow through
becoming a learning organization by learning from the leading cosmetic companies in the
market regarding their performances on the association between promotional activities and
consumer purchase decision. This can be achieved by planning for employees training on
techniques of the business development process.

Consumer buying Behaviour 43
CHAPTER SEVEN: CONCLUSIONS AND LIMITATIONS
7.1 Conclusions
Based on the study outcomes, the researcher concludes that promotional activities
substantially influence the consumer buying behavior by charming attention, exciting interest,
developing a desire for the product and at least make them buy the items. These findings are
harmonious with the EKB model examined in the literature review. During the survey, the
researcher found out that Natio Cosmetics has adopted different promotional activities such
as; digital marketing, creative packaging, makeover, and issuing free samples. These
strategies have attracted only a few buyers through influencing their purchase decisions by
arresting their attention, creating interest and developing the desire for the Natio Cosmetic
products. The promotional activities have also attempted to create awareness of the
commodities and attract purchasers. The study provides recommendations based on the
findings which are geared towards increasing market share and hence organizational sales
revenue.
7.2 Limitations
The time allotted for the study was limited because it is a scholarly research project which
requires an adequate period to carry out the survey. This limitation was managed by the
researcher by using questionnaire and interview methods for gathering data within the
allotted time. The researcher also faced financial constraints and therefore could not use a
bigger sample size as initially intended. To address this issue, the researcher hired out
experienced people to assist in the dissemination and collection of the completed
questionnaires while he conducted the interviews. Finally, some respondents were reluctant
to participate in the study for fear of intimidation from their supervisors. This constraint was
addressed by the researcher by the use of persuasive language to get them participate in the

Consumer buying Behaviour 44
survey and collect the filed questionnaires. The respondents were also guided on how to
complete the questionnaires in situations where dishonesty response was suspected.
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Consumer buying Behaviour 60
Appendices
Appendix 1: Questionnaire
A SURVEY ON THE IMPACTS OF PROMOTIONAL ACTIVITES ON CONSUMER
BUYING BEHAVIOUR
SECTION 1: DEMOGRAPHIC INFORMATION
1. Please specify your gender: Male [ ] Female [ ]
2. What is your Education level Diploma [ ] D e g r e e [ ]
P o s t G r a d u a t e [ ] M a s t e r s [ ]
3. You belong to which Category?
Consumer [ ] Accountant [ ] Cashier [ ]
Sales rep [ ] Marketing Manager [ ]
4. In which age bracket do you fall?
25 to 30 [ ] 31 to 35 [ ] 36 to 40 [ ]
41 to 45 [ ] 46 to 50 [ ] 51 to 55 [ ] Over 55 [ ]
5. I am aware of the Cosmetics promotional Strategies in Cosmetics
Totally aware [ ] Partially aware [ ] Not aware [ ]

Consumer buying Behaviour 60
SECTION 2
1. Which of the following Advertising Strategies are used by Natio Cosmetics?
Digital Marketing [ ] Creative packaging [ ] Makeover strategies [ ]
Issuing free samples [ ]
Please designate the level of your consent with the following statements by placing a
tick on each box for each row
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
2. Promotional activities
Attracts Attention on
Natio Cosmetics Products
3. Promotional activities
Arouses Interest on Natio
Cosmetics Products
4. Promotional activities
Influences Consumer Buying
Behaviour by Creating Desire

Consumer buying Behaviour 61
SECTION 3: Evaluation of Factors that influence Consumer buying behavior
Please designate the level of your consent with the following statements by placing
a tick on each box for each row.
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Social factors
1. My Purchase decision on
cosmetics is determined by my
self-esteem.
1 2 3 4 5
2. My attitude on give cosmetic
products determines my
purchase decision.
3. I purchase cosmetic that belong
to my social class only
Religion
4. My religion is a significant
determinant in deciding what
cosmetics to buy.
Gender
5. My purchase decision of
beauty products is influenced
by my gender.
Culture
6. My culture forbids me from
purchasing some cosmetic
products
YOUR INVOLVEMENT IS HIHGLY APPRECIATED