Luxury Apparel Brand Cosmetics Extension

This assignment explores consumer perceptions of cosmetics extension from luxury apparel brands. It utilizes focus group interviews with female consumers to investigate their opinions and attitudes towards existing luxury cosmetics advertisements. The research aims to understand how these consumers view the role of advertising in this brand extension, drawing insights from their experiences and perspectives on product choices.

An exploratory study into how cosmetics extension
advertisement influence consumer’s attitude and
behaviour towards the extension product

TABLE OF CONTENTS
CHAPTER ONE.............................................................................................................................................................4
INTRODUCTION..........................................................................................................................................................4
1.1 Background of the study ...............................................................................................................................1
1.2 significance of the study................................................................................................................................3
1.3 Research aims and objectives........................................................................................................................3
1.4 Research methodology ..................................................................................................................................4
1.5 Research structure..........................................................................................................................................4
CHAPTER 2...................................................................................................................................................................6
LITERATURE REVIEW...............................................................................................................................................6
2.1 Introduction....................................................................................................................................................7
2.2 Brand extension concept................................................................................................................................7
2.3 Concept of brand extension for luxury goods ...............................................................................................8
2.4 Consumer buying behaviour .........................................................................................................................9
2.5 Luxury brand extensions and consumer buying behaviour ........................................................................11
2.6 Role of advertisement on consumer attitude for luxury cosmetic products ...............................................12
2.7 impact of informational and emotional advertisement on brand extension.................................................13
2.8 Consumer knowledge..................................................................................................................................14
2.8 Conclusion...................................................................................................................................................14
CHAPTER 3 RESEARCH METHODOLOGY...........................................................................................................16
3.1 Introduction....................................................................................................................................................1
3.2 Research design.............................................................................................................................................2
3.3 Research philosophy......................................................................................................................................3
3.4 Research approach.........................................................................................................................................3
3.5 Research choice and strategy.........................................................................................................................4
3.6 Research technique........................................................................................................................................4
3.6.1 Data collection......................................................................................................................................4
3.6.2 Sampling...............................................................................................................................................5
3.6.3 Data analysis.........................................................................................................................................5
3.8 Ethical consideration .....................................................................................................................................6
3.9 Limitation of the study ..................................................................................................................................6
3.10 Summary......................................................................................................................................................6
REFERENCES................................................................................................................................................................8
APPENDICIES.............................................................................................................................................................11
A1 Sampling details ..........................................................................................................................................11
A2 Primary data collection details.....................................................................................................................11

A2.1 Phase one: Semi-structured interviews with cosmetics shoppers ......................................................11
A2.2 Phase two: Consumer focus groups....................................................................................................12

CHAPTER ONE
INTRODUCTION

1.1 Background of the study
Fashion industry is one of the most dynamic and volatile industry of the economy. The impact of
consumer choices and attitude is directly linked with brand loyalty and growth prospects of the industry.
Globalization has enhanced competition for businesses and product choices for people at large (Iglesias,
Singh and Batista-Foguet, 2011). This has created intense market situation for the fashion and cosmetic
industry. UK beauty industry is growing efficiently in the present era. The market is worth £17 billion, it
is forecasted to grow 16 per cent by 2016. The impact of recession was also low on the industry as UK
beauty market grew at the rate of 15.5% during economic slowdown as well (The value of UK fashion
Industry, 2016). It reflected market growth from £6.1 billion in 2008 to an estimated £7.1 billion in 2013
(Jara and Cliquet, 2012). Thus, on the basis of the given figures it is visible that the trend for cosmetics is
developing in the UK market. Makeup segment reflects highly growing demand in UK. The figure
reflects a positive relationship between disposable income and demand for fashion products in the market.
The stated figures draw a clear picture of industry strength and consumer loyalty.
Figure 1.1: Contribution of Different fashion segments strength and consumer loyalty
Source: The value of UK fashion Industry (2016)
Consumer attitude and behaviour has a direct impact on the success and growth of business units.
Companies in the present competitive era adopts innovative measures to develop consumer loyalty
towards different products and services offered (Solomon, 2014). These days, the luxury market is no
longer enjoyed by only the affluent society, it has become more accessible to audience. This phenomenon
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is supported by the thesis of Khraim, (2011), who refers to the democratization of luxury significantly
influencing consumers’ spending habits and social trends. Driven by the increasing demand in luxury
goods and higher spending power of the middle class, luxury brands keep expanding their brand portfolio
to attract new customers (Gucci launch its cosmetics line in NYC, 2015).
Brand extension is one of the common and effective strategies adopted by luxury brands at large to create
an effective and well developed impact on sales maximization and brand loyalty. Fashion brands have
particularly frequently been using brand extension as a key strategy to stimulate growth. It is a cheaper
and less risky way of extending existing product line rather than creating new brands all the way
(Solomon, Russell-Bennett and Previte, 2012). This strategy has helped companies in enhancing market
share within the global market. Companies such as Gucci, Burberry etc. has successfully adopted this
measure in order to provide wide variety of products analyzing their specific needs thus developing high
trust for the company. The strategy has helped fashion brands to anticipate consumer needs and meet
them efficiently though brand extensions to attain positive perception for products in the market. Müge
Arslan and Korkut Altuna, (2010) however examined that the success of brand extensions is uncertain
and unpredictable as it is widely dependent on consumer attitude and perception. The figure reflects a
clear picture of brand loyalty in different industry. Brand loyalty in skincare segment is high because
consumers are sensitive towards the products and its result to them. Associating with one brand makes
them unwilling to try new products or brands in the market.
Figure 1.2 Brand loyalty for luxury products
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Source: Beauty is big business for Britain (2016)
Hence, in order to ensure the successful implementation of the strategy and to develop a competitive edge
within the market, companies have adopted effective and innovative advertisement strategies for the
buyers. The above figure represents a clear picture of consumer loyalty for luxury product categories and
range as well. Choi and et.al., (2010) stated in a research that advertisement helps in communicating mass
audience about product availability and existence which helps them in enhancing brand loyalty and
demand for the products. Advertisements are the source of enhancing consumer knowledge about the
product availability, usability and features. It helps companies in converting non users into users. In
addition to this advertisement also enhance perceived fit as it helps consumers in developing positive
relations between products and parent brand (How Not to Extend Your Luxury Brand, 2005). In the
present competitive era companies are developing advertisement to influence the purchase intentions of
the buyers for extension products. The study will focus on analyzing whether advertisements influence
their purchase intentions toward the extension product or not.
The aim of the present study is “to explore the effectiveness of cosmetics
extension advertisement in influencing consumer's purchase intention towards the extension product”.
The dissertation has developed an in-depth analysis of different aspects of the topic such as consumer
perception about product extension advertisement along with evaluation of its impact on buying
behaviour of consumers. Extensive study has been undertaken to investigate a valuable analysis of the
research topic. To conduct the study well developed industry analysis and individual behaviour of
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consumers attitude has been evaluated in order to analyse the impact of advertisement for luxury product
categories in the market.
1.2 significance of the study
The demand for luxury products and services are increasingly developing in the competitive market.
Consumer demands and needs are changing widely in the economy which has created an indefinite
impact on business growth and success (Anwar and et.al., 2011). Given a practical relevance for brand
extensions within the luxury sector it has been analysed that there are not many known studies addressing
this topic. It is significant to understand the managerial process involved in the extension and examine
key determinants influencing the cosmetics brand extension’s success along with the impact of
advertisement on consumer attitude and behaviour (Wang, and Sun, 2010). The outcomes of this research
will provide useful insights for luxury fashion industry when managing brand extensions, with a better
understanding of consumers’ attitude and behaviour. Hence, the study will develop an in-depth
understanding on how luxury fashion companies could utilize advertisement to support their cosmetic
extensions and will understand the application of the same in practical business situations. It will develop
a detailed analysis about the concept of brand extension and its relevance for luxury product range of
cosmetics. It will consider different aspects of consumer behaviour and attitude towards luxury brand
extension and impact of advertisement on consumer attitude and behaviour for the products. The study
will also focus on analyzing whether advertisements influence their purchase intentions toward the
extension product or not.
1.3 Research aims and objectives
The aim of the present study is “to explore the effectiveness of cosmetics extension advertisement in
influencing consumer's purchase intention towards the extension product”. In order to attain the stated
aim researcher will conduct an in-depth analysis of the topic and attain well developed results from the
same. The objective developed to attain research aim in an effective manner has been discussed
henceforth.
 To understand the concept of brand extension for luxury cosmetic industry
 To analyse consumer buying behaviour for luxury cosmetic products
 To examine the impact of cosmetics extension advertisement on consumer buying behaviour for
product extensions
 To provide managerial implications and recommendations about successful advertisement for
cosmetic extensions of luxury fashion labels
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1.4 Research methodology
The present study had adopted inductive research approach as there is no specific theory to test for the
research. In addition to this, researcher applied constructivist paradigm for analysing interpretivist
epistemological view. This is because the theory is based on contribution of participants for the study.
Both primary and secondary means of data collection has been used for the study as it helps in attaining
valid and reliable research results. Primary data has been collected by conducting 4 semi- structured
interviews and 2 focused group administration from a group of 12 consumers belonging to age group of
18-30 years. This age group has the most dynamic and frequent buyers with different characteristics
hence it helped in enhancing reliability and reducing biases in the study. Researcher used multi-method
qualitative approach to increase the credibility and trustworthiness of the research. It helped in analysing
the data effectively from different perception triangulation was used in the study which helped in
removing possible biasness. The technique of photo elicitation for cosmetics advertisements from those
fashion brands who extended in cosmetics has been applied in the research to attain effective results.
1.5 Research structure
Research structure helps in developing clear and effective means of setting format for forming a research
study. This thesis is organized into five chapters. The overview of the dissertation structure is as follows:
Chapter 1: Introduction- This introductory chapter presents the background of the study with an
explanation and justification of the research aims and objectives. It develops a clear overview and
understanding about the research topic.
Chapter 2: Literature review- This chapter gives critical review on the prior literature related to the
concept of brand extensions. It carried an extensive secondary research for analysing and implementing
different theoretical models for the present study to analyse the social behaviour of consumers and
business strategies. The concluding section subsequently draws the research gap and limitations on prior
research of brand extension.
Chapter 3: Research methodology- This section will focus on analysing different tools and research
techniques in order to effectively attain the research objectives and develop a structured means of
undertaking research. It will focus on analysing research design for undertaking research study to analyse
qualitative aspects of the research.
Chapter 4: Analysis and discussion of data- This section of the study will focus on analysing the
research findings and results for overall analysis. The research results will be delivered in a structured and
presentable manner using thematic analysis for data.
Chapter 5: Conclusion and recommendations- This chapter of the study will focus on analysing the
overall study and relate it with the set research objectives. This part of the study will analyse the
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successful analysis of the research objective. In addition to this recommendation regarding consumer
attitude towards luxury brand extension and impact of advertisement on consumer attitude and behaviour
for the products. The recommendation will be limited to luxury brands and cosmetic industry specifically.
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CHAPTER 2
LITERATURE REVIEW
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2.1 Introduction
This section of the study is crucial for developing a well developed base for secondary
research analysis in order to attain in-depth knowledge about the subject and topic such as in
the present case “to explore the influence of brand extension advertisement on consumer’s
attitude and behaviour towards luxury cosmetics extension”. Majority of the studies undertaken
of the topic were associated with non luxury brands, based on hypothetical extensions (i.e.
extensions not introduced in the market) or on fictitious brands (e.g. Lynch 1999; Winer 1999;
Klink and Smith 2001). These researches contributed efficiently in enhancing the conceptual
understating on the subject. However, analysing the real market situation it has been evaluated
that customers are exposed to a lot of information about the product extension.
It has also been examined that consumers are sensitive to the external factors such as
decisions of retailers (Collins-Dodd and Louviere, 1999), competitors actions (Czellar, 2003)
etc. Furthermore, the overall evaluation of the reseaches contributed in analysing that fictitious
brands are unable to reflect consumer feelings for brand extension appropriately, hence
generalization is referred for real-life decisions and consumption contexts is debatable.The
present study is significant for providing a detailed analysis regarding social perception and the
impact of advertisement of consumer buying decision. It will develop a detailed analysis about
the concept of brand extension and its relevance for luxury product range of cosmetics.
Consideration of different aspects of consumer behaviour and attitude towards luxury brand
extension, and impact of advertisement on consumer attitude and behaviour for the products will
be analysed in the research.
2.2 Brand extension concept
Figure 2.1 Brand extension categorization
Source: adapted from Pitta & Katsanis, 1995; Farquhar, 1989
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According to Aaker and Keller (1990), brand extension is the process of using on
established brand name to develop a new product category. The common means of brand
extension used by the companies are horizontal and vertical brand extension (figure 2.1). In
Horizontal extension, complete new product or a related product class is introduced by the
business for extending the brand (Arslan & Altuna, 2010). However, vertical extension introduce
products of same category with differentiation in price and quality level (Kim and Lavack, 1996).
This study focuses of horizontal/category extension of products.
Similarly, Chung and Kim,(2014), stated that brand extension strategy helps a business
unit in leveraging its brand equity for new products offered. Companies capitalize of reputation
of the business to attract maximum consumers through trust and loyalty of brand name of
parent product (Aaker and Keller, 1990). In a similar vein, Ahn, Park and Lee (2016), analyzed
that product positioning contributes widely in success of the product as it enhances brand name
which is the name, term, sign or symbol that the manufacturer is trying to sell in the market. It
helps in developing a competitive edge in the market thus attracting consumers for company
products rather that other brands (Ahn, Park and Lee, 2016). Castelli and Sianesi (2015)
analysed that that more than 82% of the product development adopts brand extension strategy
while 15% of the products are launched with new product name. This help companies in
hedging risks under brand establishments.
Consumer familiarity with the existing core brand name aids new product entry into the
marketplace and helps the brand extension to capture new market segments quickly (Dawar &
Anderson, 1994, Milewicz & Herbig, 1994). This strategy is beneficial because it reduces
marketing research and advertising costs for new product introduction and increases chance of
success through higher preference derived from the core brand equity.However, Brun and
Moretto, (2014) argued the concept by stating that dissatisfied product quality for extended
product line may affect the brand image of the existing products as well.
2.3 Concept of brand extension for luxury goods
Luxury industry has developed unique market competition in the economy as it demands
high consumer investment for established brand names and quality standards. Luxury products
are defined as those which has developed a renowned brand image in the industry and
consumers are ready to pay high price to attain quality ascertained products in the market.
Brand extension is considered as a successful and profitable strategy for luxury brands as it
help companies in leveraging brand equity. Consumers trust the brand name more than age of
the product. Melnyk, Klein and Völckner, (2012) stated considerable difference in luxury brand
concept as these companies focuses on relatively small market rather than mass market as for
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non luxury products. In present era luxury cosmetic brands are focusing upon extending the
market through evaluating consumer behaviour and attitude towards the parent brand (Chung
and Kim, 2014). Therefore, it is essential for business to make effective decision regarding the
taste and preferences of consumers in relation to cosmetic brands as it is increasing
significantly and thus brand extension helps in satisfying the needs of consumers. Albrecht and
et. al., (2013), stated that it is essential for luxury cosmetic firms to develop their brand
effectively so that it helps in not only increasing their functional and performing benefits but also
improves their expressive value (Albrecht and et. al., 2013).
Castelli and Sianesi, (2015) stated that although luxury brand extension is a successful
means of enhancing profitability of the business however there are risks associated with the
same. Luxury reflects limited, expensive and extravagant. Common availability of products can
erode the prestige of the brand as consumer perception about product uniqueness changes
through unrelated or wider product extension. To balance exclusiveness of product with
accessibility in the market is a challenging equation for businesses. Demand to standardize the
sales and maximize the profit is one of difficult situation for the business. It needs to manage the
prestigious value of products by avoiding commoditization of luxury brands.
Cavender and Kincade (2014) however mentioned that luxury goods are used by
individual for their pleasure and comfort and thus it brings owner self esteem apart from
functional utility so that best results can be attained. Heine and Gutsatz (2015) explained the
concept with different perspective stating that brand extension can be stated as the way through
which luxury cosmetic companies adds value to the brand if it is reasonable and helps
consumers to satisfy their needs. Sometimes, it may also cause issue for customers as a
random change in the product line may confuse clients and also gives false impression of the
company among the target audience (Heine and Gutsatz, 2015).
2.4 Consumer buying behaviour
Consumer behavior defines perception of buyers and factors which influences them to
make their purchase decision for products and services. Heine and Gutsatz (2015) stated that
understanding buying behavior of consumers help companies in developing competitive means
of strategic decisions. Hodge and et. al., (2015) analyzed buying behavior as a process where
one decision leads to other meanwhile Anwar and et.al., (2011) contributed contradictory views
stating that certain factors have a wide impact on buying behavior which develops anxiety and
impulse buying conditions for them. Brun and Moretto (2014) evaluated that buying behavior for
luxury products in the market varies from that of regular products. Price perception, demand
analysis and consumer choices are the major elements considered by the buyers to develop
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their purchase intention for the products or service. The study of consumer behavior focuses on
evaluating the decision making process of the individuals in current market situations. Chung
and Kim (2014) analyzed that need perception and knowledge are the major factors which
enhance and influence consumers in the market.
Further, Mendes and Rees-Roberts (2015), examined that five stage of consumer
decision model helps in identifying the five stages of consumer decision making process in
order to identify the need and evaluate the alternative as well so that best results can be
attained. The black box model identifies the process in which consumers will undertake when
deciding whether to purchase a product or service. The model considers three different aspects
of purchase decisions which include Stimuli, it includes 4 ps of the company and external
factors of the environment, personal characteristics of buyers along with decision making
process and response of byers is then attained as per the analysis.
Author analysed consumers as a social actor which focuses of different aspects for
making buying decisions within the market. According to the Black Box model of consumer
behaviour, purchase intension of the buyers are influenced by two major components which
include buyer's characteristic and buying decision process. The factors affecting buyer's
characteristic includes personal, social, cultural and psychological. These factors affect the
individual decisions of the consumers.
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Iglesias, Singh and Batista-Foguet (2011) analysed that every factor of buyer behaviour
plays a significant role in strategic planning of the business unit which ultimately help the
companies in making valuable business decisions for the organization.
2.5 Luxury brand extensions and consumer buying behaviour
Past researches conducted on brand extension and consumer buying behaviors
evaluated a positive relation between the two factors. The success of brand extension is relied
through attaining wide acceptability in the market thus enhancing product recognition in the
economy. Prior researches which have been conducted on the topic has efficiently analyzed
various factor which influence the success of brand extension. Factors such as perceived fit,
attitude for the parent brand, brand loyalty, mood or behavior etc have been analyzed. The
impact of similarity or fit between brand extension and parent brand plays a significant role to
enhance buying decisions. Perceived fit was defined as similarity between existing products of
parent brand with new products in the market.
Khraim (2011) evaluated a positive relation between luxury brand extension, consumer
attitude and perceived fit. It was analysed in the research that extension with perceived fit
develops a positive impact on consumers experiences thus minimizes negative feedbacks for
the products. Jara and Cliquet (2012) stated that the fit helps in limiting the category range for
companies in which brand can extend in future. It was also analysed that brand extension
widely diverse from parent brand has low aspects of success in the market because the degree
of perceived fit is is minimized and product is sceptically taken by the consumers. Fan and Lo
(2012) that perceived fit affect consumer attitude differently for non luxury or mass market
brands because buyers focus on product pricing and quality of products rather than brand
association. Melnyk, Klein and Völckner (2012), argued that consumer behaviour possess the
focus which directly impacts upon the overall performance of firm in market. Also, businesses
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Illustration 3: Factors influencing buying behaviour

are required to understand the view of consumers in such competitive world and thus introduce
innovative products or services so that target audience can be attracted (Melnyk, Klein and
Völckner, 2012). The impact of core brand value influence the buying behaviour of the
consumers.
2.6 Role of advertisement on consumer attitude for luxury cosmetic products
The hierarchy effect model developed in 1961 by Robert J Lavidge and Gary A Steiner,
focused on effective measures of marketing communication to enhance product promotion and
sales within the market. According to the Hodge and et. al., (2015) the model suggests six
stages of advertisement which helps viewer in developing effective and well developed need to
purchase the product from the market. This model helps in developing advanced advertising
strategy to enhance sales in the market and develop high product sales. The focus of the
strategy is on developing persuasive messages to build brand awareness for the products and
services.
The author focused on dividing the six stages of hierarchy into three stages of consumer
behaviour which includes cognitive (think), affective (feel) and conative (behaviour). The
cognitive stage according to Castelli and Sianesi (2015) focused on developing market
awareness and knowledge about the availability of product the basic features about the same.
Companies develop advertisement to enhance product awareness through advertisement which
helps audience in gaining knowledge about product features and functionality. Affective stage
focuses on developing brand awareness to make the consumer like the product and prefer it
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Illustration 4: Hierarchy of effects model
(Source: Hodge and et. al., 2015)

over competitive brands. The final stage of the process is the most crucial stage where
companies develop desires of the consumer for the products in order to enhance sales and
create a positive brand image in the market. Conviction and purchase stages focuses on
creating value for the product through well developed promotion and developing a priority for the
product in minds of consumers. The stated models help in defining various stages of persuasive
and emotional value that the business unit creates for consumers through advertisement to
enhance sales in the market.
2.7 impact of informational and emotional advertisement on brand extension
According to Solomon (2014) advertisement plays a significant role in developing
communication with the mass audience and create a definite impact of the message on the
minds of the buyer. Advertisements are the most effective means of targeting mass media and
passing relevant information regarding product availability. In the current competitive market the
role of advertisement is to create brand recognition in the market and to develop purchase
intension of the consumer as well. Müge Arslan and Korkut Altuna, (2012) stated in the research
that companies adopt creative and innovative means of advertisements to develop a
competitive edge in the market by enhancing consumer knowledge about product availability
and usability in the market. Different companies use different means of advertisement to attain
the business objectives and gain wide success as well.
Informative advertisement according to Som and Pape (2015) focuses on developing
awareness about the product availability to its consumers, focuses on the features of the
product and displays functionality and benefits of the product. This helps in developing
competitive presence for the companies in the market and enhance values and benefits for the
product as well. However, Jara and Cliquet (2012) criticized the strategy by stating that the
concept of product presentation and consumer perception are not analyzed in the study but its
helps marketing team in effective message delivery. Moreover, it was also analyzed that
informative advertisement does not have a long term impact on the consumer minds as it does
not create an emotional bond with the viewers. Fan and Lo (2012) contributed in analyzing the
success of the approach for brand extension products and examined that the impact of
informational advertisement is significant in enhancing buyer's knowledge about product
availability and functionality. The approach is used by companies to engage audience about
extended product lines however Brun and Castelli (2013) sated in the finding that the success
of the approach is limited as informational advertisement has no direct relationship with
consumer influence.
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Emotional advertisement, on the other hand, focuses on developing an emotional bond
between brand and consumer feelings (Hodge and et. al., 2015). For example Coca-cola's
campaign regarding happiness in small moments of life developed brand identity within
audience along with attachment with the product and company. These advertisements are the
customized approach to convey organizational support, need and presence and convey trust for
the consumers. It is effective means of attaining employee trust through developing emotional
trust however analyzing the success in advance can prove to be a major obstacle for the same.
Brun and Moretto (2014) analyzed a significant positive relation between consumer buying
behavior and emotional advertisement. The findings illustrated different examples of shifting e
monologue type of marketing to the dialogue by different companies to attain high success in
the market.
2.8 Consumer knowledge
Many researches have been conducted on consumer knowledge and its impact on their
buying behavior. According to Solomon (2014) consumer knowledge contributes the business
unit at various stages of buying. Mendes and Rees-Roberts (2015) stated that impact of
consumer knowledge has a direct impact on choosing products from variety however Iglesias,
Singh and Batista-Foguet (2011) analyzed its role for consumers in undertaking product
evaluation through information available. The consumers can be categorized in two levels on
the basis of their knowledge. Experts are the consumers with high knowledge about the product
while novice has low information. Familiarity and expertise are another factors which influences
buying decisions of the consumers. Familiarity refers to accumulating experiences which are
related to product usage however expertise is defined as an ability to perform product-related
tasks successfully
Consumers knowledge plays a significant role in enhancing product promotion and
developing purchase intentions for the buyers. Khraim (2011) stated in the findings that different
sets of consumers have different impact on product perception in the economy. Professional
buyers and novice buyer analyses different product characteristics to make their purchase
decisions. Similarly, Solomon, Russell-Bennett and Previte (2012) stated in the research that
different types of consumers seek different information about product and services hence
companies develop the product evaluating the overall factors. It has been analyzed that
professional buyer seeks for sensitive and detailed product information to develop a
comparative analysis about the product and its perceived value however novice buyer evaluate
the general traits and features of the product. The judgment process of a novice buyer in simple
and less complex as compared to that of a professional buyer.
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Researches has been carried out on the subject associated with brand value associating
with consumer knowledge and purchase intention. Som and Pape (2015) revealed through the
findings that professional consumers evaluate complex organizational and product performance
data in order to identify the brand associating and product value. In addition to this it also helps
buyers in developing a satisfying detailed and comparative analysis about the performance and
value associated with products. Novice consumers in contrary to this makes purchase judgment
on the basis of product price, promotion, packaging, brand image, value, color etc. Researches
also analyzed the associating of sales potential with brand value on the basis of consumer
knowledge in the market. Zhang and Kim (2013) in the research identified that strong brand
value pf the product enhances the sales and acceptability aspect of the product in the market as
it hits consumer knowledge efficiently as compared to the products which have not developed
strong brand image.
2.8 Conclusion
This section of the study developed an in depth analysis about the topic. It focused on
analyzing the theoretical aspects associated with consumer attitude for cosmetic extension
advertisement and the extent to which these advertisements influence purchase intention of the
consumers. It extensively analyzed different aspects of the researches and critically analyzed
views of different authors and researcher. In addition to this the analysis of literature helped in
clearly defining the concepts of common terminologies such advertisement, informative
advertisement etc. Therefore, in order to find out the impact of cosmetics extension advertising
in influencing consumer’s purchase intention, this research will investigate on research gaps.
The finding will be discussed in chapter four and five which will help in developing a clear
analysis of research questions and primary research. Moreover, based on an evaluation of the
findings, this dissertation will provide retailers about successful advertisement strategies and the
impact of different advertisement on luxury brand extension.
RESEACH QUESTIONS
 What are the significant factors that influence consumer’s attitude and behaviour for
cosmetics brand extension?
 Can brand extension advertisement influence purchase intension for extension products?
 Does emotional advertisement is has better potential to enhance consumer intention for
brand extension products?
 Does consumer knowledge has a significant impact on attitude towards cosmetics
extension advertising?
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CHAPTER 3
RESEARCH METHODOLOGY

3.1 Introduction
This chapter provides an overview of the research design, where the choice of the qualitative approach is
explained. It begins with an explanation of the main research paradigms and considerations that justify
the research design. Research onion method by Saunders et al (2007) has been used in this chapter which
addresses; research philosophy, research approach, research strategies and data collection methods. A
detailed analysis of research methods has been applied by the researcher, clearly stating the method of
data collection and analysis. The current study was conducted into two phases: phase one – semi
structured interviews and phase two – focus groups from 12 consumers belonging to age group of 18-30
years was conducted. This age group are the most dynamic and frequent buyers with different
characteristics hence it helped in enhancing reliability and reducing biases in the study. Eventually a
summary of the chosen approaches will be presented.
Illustration 5 Overview of Research structure
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(Source: Self attempted)
3.2 Research design
Research design defines the structure of the study in logical and sequential manner where
findings are based on research questions to ultimately derive valid conclusions (). The overall purpose of
this study is to understand consumer’s attitudes and perceptions toward cosmetics extension
advertisements and its impact on their purchase intentions toward the extended product. As stated, limited
past studies are undertaken on luxury brand extension hence qualitative approach is selected to carry out
the study as it is deemed to be an effective measure for collecting exploratory data for the present
research because phenomenon of individual choices and interests is less explored about in the past.
Selected approach was applied to this research topic as it render a clear perceptive of the young
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consumers’ opinions, beliefs and attitudes about luxury cosmetics brand extension as well as the
complicated and multifarious nature of the buying process.
3.3 Research philosophy
Research philosophy determines the fundamental assumption in the way the researcher views the
world. The aims and objectives of the present dissertation demands interpretivism approach as research
paradigm because it is based on contribution of participants for the study. Interpretivism philosophy will
demand researcher to fully involve with the subject of the research and analyse the meaning and values
assigned to the matter by people (Oates 2005). The topic of the research is to explore the effectiveness of
cosmetics extension advertisement in influencing consumer's purchase intention towards the extension
product. Interpretive measure was selected for the study as it demand participation of subjective views of
consumers and closely explore their attitudes and behavior towards the subject and the causes which
govern such behavior.
3.4 Research approach
There are two distinctive approaches to acquire knowledge for the study and develop effective
research design, namely deductive and inductive approach (Byrman & Bell, 2011). The deductive
approach entails using extra common conclusions to obtain particular facts which can sometimes be
referred as top down approach (Creswell, 2003). Inductive approach demands data collection for the
reseach, developing theory out of it and analyzing the data for attaining valid and reliable results.
(Saunders et al., 2000). The inductive process develops an observation then proceeding for formulation of
a theory. Hence, for the current study inductive approach has been adopted as there is no clearly defined
theory to test. The research starts off with the views of participants, which in total compose and present
some kind of patterns, theories and generalizations (Daymon & Holloway, 2011).
Illustration 6: Deductive and inductive reasoning
Source:Trochim (2000)
4

3.5 Research choice and strategy
Given the exploratory state of this particular research area, the study views qualitative
methodology as the most appropriate research design because limited knowledge has been attained on the
associated topic and this measures helps in enhancing flexibility to explore new spectrum of the research
(Polonsky and Waller 2005). In contrast to quantitative research, which aims to quantify a phenomenon in
numbers, qualitative methods allow a more holistic picture to be obtained by preserving informant
responses in their own words. This is in line with the objectives of the study as the past researches
conducted on brand extension were predominantly quantitative (e.g. Aaker and Keller 1990; Park et
al.,1991; Reddy et al.,1994) and very few of them attempted a dialogue or conversation with the
customers while conducting research. Although quantitative methods are valuable for attaining reliable
and specific results, they do not adequately capture the emotional processes of consumer’s decision
making process.
Applying these principles, a multi-method qualitative approach that includes in-depth interviews
and focus groups were selected as a means of data collection. Multi-method research strategy enables
researcher to use more than one method and variety of sources to explore the research questions and
foster the validation of data, through triangulation (Denscombe, 1998). Triangulation is a method adopted
in qualitative research for collecting data from different perspective and develop consistency for the data
sources.
3.6 Research technique
3.6.1 Data collection
The present study adopted an integrative approach for data collection where both primary and
secondary means of data collection is used by the researcher.
3.6.1.1 Secondary data
Secondary data as the name suggest is the second hand which has been already published or
found by different researchers. For the current study it was utilized initially in order to develop an
understanding of brand extensions and related advertisements and consumer behavior, to support a
researcher in meeting the research objectives. It develops insight about the research issues by analysing
past researches or different published data. This was undertaken through the review, study of previous
studies, and different references related to the study published in books, journals or websites.
3.6.1.2 Primary data
Primary data comprises the new and fresh information from people through approaching them
using tools such as questionnaire, surveys, interviews, focus group etc. In order to attain the aim of the
current research and develop an extensive qualitative study, researcher collected primary data through
5

semi-structured interviews and focus group approach. For the present research In the initial phase of this
research, four semi-structured interviews were undertaken with female consumers aged between 18 and
30. Open-ended questions were asked which helped in developing informal conversation and minimized
reactivity on the part of the subject. The chosen structure also allowed the responses to flow from the
subject in their own words. After individual interviews, two focus groups were conducted by the
researcher with six participants per focus group. The composition of each group was determined by the
level of knowledge and familiarity with the concepts of luxury brands and cosmetic products. This
composition would help researcher to analyze differentiate the teams developed on the basis of
consumer characteristics (expertise and familiarity) and to ascertain a comfortable environment for the
participants which will help in minimizing biasses.
Primary data collection details
Phase one: Semi-structured interviews with cosmetics shoppers
In the initial phase of this research, four semi-structured interviews were undertaken with female
consumers aged between 18 and 30. The interviews were conducted from 14 to 25 March, 2016. The
length of each interview varied from 45 to 60 minutes. Interviewees also decided on the interview venues
to make the process as convenient to them as possible. Semi-structured interviews was devised to
maintain the central topic of the interview while creating an atmosphere of freedom to talk (Myers, 2009).
The interview questions revolved around the context and meanings of young female consumers’ purchase
decision of cosmetics, factors affecting their buying behavior and their attitudes towards make-up
products of brand extension. Prior to the actual interview process, a pilot interview was conducted with
two regular cosmetics shoppers to ensure that all possible errors that could potentially occur were
analysed and nullified, thus enhancing the reliability and trustworthiness of the study. Based on the
findings of the pilot interview, minor changes were made to the interview guide.
Important to note, the findings of the individual in-depth interviews are considered as a
preliminary step, giving a better understanding with deeper insights and more fruitful pool of data to
comprehend and analyse consumers’ buying behaviour of cosmetics. Also, the interviews provide the
excavation the reasons and practices of consumers’ preferences on make-up products of luxury brands.
The interview result would then complement to the second phase of the research - the focus group.
A2.2 Phase two: Consumer focus groups
After the individual interviews, two focus groups were conducted on 27th March, 2016 and
1st April, 2016, each containing six participants. An important consideration was not to have too many
participants per group as it would result in losing interviewer’s control of the group. In this case, having
6

six participants per focus helped in keeping each participant engaged while also encouraging the high
contribution. The focus group interviews took place in “The Space Centre”, each lasting approximately
one and a half hour and were digitally recorded and transcribed. The composition of each group was
determined by the level of knowledge and familiarity with the concepts of luxury brands and cosmetic
products. This helped the researcher to investigate the differences across the groups with regard to the
consumer characteristics (expertise and familiarity) and to ensure that all participants in all groups were
able to express their opinions without being self-conscious.
In total, 12 female consumers participated in the study, representing different ages and
occupations, from students to businesswomen with higher income (refer to table 3.2 for respondent’s
profile). In keeping with qualitative research principles, the focus group interviews involved the execution
of predetermined questions. The interview guide took a progressive approach, where it began with a
general discussion of cosmetics extension from luxury apparel brands to make the participant more
comfortable with the topic of the interview. The participants were then asked to share their views and
opinions on a selection of cosmetics advertising campaigns based on a Power Point presentation. The
chosen adverts were limited to the current cosmetics advertisements in the luxury industry. Resecher
wishes to investigate selected informants’ attitudes towards advertising as it provides insights into how
the group think about the issue of the advertisements and on the role of ads for extension. In the course of
each interview (90-120 minutes), the respondents were asked to provide information about their attitude
while buying and behaviour for product choices.
Once the interviews were completed, transcription proceeded and an examination of the
collective responses followed whilst continuously cross-checking with the original recorded interviews.
The transcripts then underwent thematic analysis (Haytko and Baker 2004, Thompson and Haytko 1997)
to identify common themes and messages, and also some similarities, differences and patterns amongst
the interviews.
3.6.2 Sampling
For the present thesis, participants were selected using purposive snowball approach. It helped in
selecting participants of different occupation and age within the given boundaries (18-30). This resulted in
covering a diversity of views for the study. The purpose of the research is to understand consumer’s
attitudes and perceptions for cosmetics extension advertisements, fundamental dimension for sampling
was to evaluate consumes’ interest and knowledge about cosmetic products to assure the richness of
collected data. Consequently, 16 consumers with different socio-economic demographic backgrounds and
education levels within the UK were selected in order to provide diversity of responses regarding on
attitudes and behavioural patterns. The primary motivation for choosing this particular demographic
7

group was their tendency to try new products and frequency of purchases of cosmetic products. (see
appendix x for demographic profile of respondents).
3.6.3 Data analysis
Thematic analysis involve extensive searching of data by developing different themes. It helps in
determining possible patterns or categories that might occur more than once. It is described as a
qualitative research process (). The present research was of exploratory nature hence thematic approach is
selected to interpret the primary data. The process of data analysis follows practical steps including
description which focused on depending on respondent's exact words or quotes, analysis where significant
theme or relationship is identified and interpretation which refers to analyzing the meaning of context of
data.
Illustration 7: Phases of thematic analysis
Source: Braun and Clarke (2006)
The results and findings from the interviews and the focus groups are presented in the next chapter and
are organized into coherent themes that have been recorded and explored in relation to the literature
discussed within chapter two.
3.8 Ethical consideration
The ethical code of university has been taken into consideration throughout the research process
(Appendix A). Prior to each interviewing session, all participants were informed about the nature and
reason of conducting the interview. A ‘research information sheet’ outlined the purpose of the study.
Confidentiality and rights of respondents was distributed to all respondents to ensure that they are fully
informed and aware of how their involvement contributed to the study. The researcher informed
participants about the confidentiality aspect of all the data collected and ensured that it would be
maintained and kept safe and secure, thereby not using for any personal use other than the reseach.
Additionally, participants were given the option to remain anonymous and the right to withdraw their
participation from it at any time.
3.9 Limitation of the study
Every research has specific limitations which are difficult to minimise. Research limitation of the
present study are:
8

 The opinions and attitudes expressed cannot be generalized to all consumers because of the small
number of participants in the focus groups.
 The sole reliability of responses of the participants cannot be assured as biasses due to social
pressure and face to face communication is common human behaviour. Hence the result of primary
research may provide bias behaviour.
 Non-probability purposive sampling method may be subjected to subjective biasses as it does not
use any scientific method for sample selection. Moreover, it cannot be generalised to the greater
population.
3.10 Summary
In conclusion, detailed explanation of the methodology chosen and research design being used are
discussed offering a comprehensive representation of this study. The fact that few studies has been
conducted on the topic chosen develop a key interest in the research. It focuses on luxury cosmetics brand
extension. Exploratory research was found necessary to attain fresh and reliable results for carrying out
further researches. Moreover, qualitative study was deemed vital at the start where the use of semi-
structured interviews and focus groups were carried out to obtain some preliminary insights into
perceptions of cosmetics brand extension and factors likely to influence consumer’s purchase intention
for brand extension products. Hence, the overall analysis reflects a detailed and well structured research
design using appropriate tools and techniques for conducting the study.
Table 1: Summative research methodology for the study
Research Methodology Chosen method
Research approach Inductive & Qualitative
Research design Exploratory
Data sources Primary and secondary
Data collection method Semi-structured interviews and focus groups
Sampling Non-probability snowball sampling
Population: cosmetic shoppers aged between 18-
25
Data analysis method Thematic analysis
9

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Challenges in a Turbulent Business Environment. Springer International Publishing.
Albrecht, C. M. and et. al., 2013. Drivers of brand extension success: What really matters for luxury
brands. Psychology & Marketing. 30(8). pp.647-659.
Alserhan, B. A. and et. al., 2015. Expressing herself through brands: the Arab woman’s perspective.
Journal of Research in Marketing and Entrepreneurship. 17(1). pp.36-53.
Anwar, A. and et.al., 2011. Impact of brand image, trust and affect on consumer brand extension attitude:
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Beauty is big business for Britain. 2016. Gucci launch its cosmetics line in NYC. [online] Available at:
http://www.buro247.com/me/events/gallery/gucci-cosmetics-nyc.html [Accessed on: 18th April
2016].
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Aligning the supply chain towards the critical success factors. International Journal of Retail &
Distribution Management. 43(10/11). pp.940-966.
Cavender, R. and Kincade, D. H., 2014. Leveraging designer creativity for impact in luxury brand
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Choi, T.M. and et.al., 2010. Fast fashion brand extensions: An empirical study of consumer preferences.
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Heine, K. and Gutsatz, M., 2015. Luxury brand building in China: Eight case studies and eight lessons
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12

APPENDICIES
A1 Sampling details
Table 3.2: Demographic profile of respondents
Informant Age Ethnicity Occupation
Semi-structured
interview
1. Caroline 27 Singaporean Beauty journalist
2. Laureen 20 Australian Student
3. Adriana 22 British Sales associate
4. Stella 28 Korean Marketing manager
Focus group
5. Ginnie 24 Taiwanese Luxury PR freelancer
6. Sherilyn 21 Canadian Student
7. Jimmie 30 Chinese Entrepreneur
8. Tweetie 26 Indian Beauty advisor
9. Esther 19 Kazakh Student
10. Sylvia 23 Chinese Beauty therapist
11. Linda 18 British Student
12. Tiffany 29 American Marketing & Sales
Developer
13. Evelyn 21 British Student
14. Teresa 22 Chinese Occupational therapist
15. Miranda 30 Chinese TV broadcaster
16. Andrea 25 Japanese Sales manager
A2 Primary data collection details
A2.1 Phase one: Semi-structured interviews with cosmetics shoppers
In the initial phase of this research, four semi-structured interviews were undertaken with female
consumers aged between 18 and 30. The interviews were conducted from 14 to 25 March, 2016. The
length of each interview varied from 45 to 60 minutes. Interviewees also decided on the interview venues
to make the process as convenient to them as possible. The relaxing and familiar atmosphere, as well as
13

the open, yet focused interview style of semi-structured interviews was devised to maintain the central
topic of the interview while creating an atmosphere of freedom to talk (Myers, 2009). More importantly,
the more flexible nature of the semi-structured interview allows scope for researcher to create additional
questions and explore in more detail issues that arise during the interview to further clarify certain issues
and truly grasp the perspectives of the participants. The interview questions revolved around the context
and meanings of young female consumers’ purchase decision of cosmetics, study what factors affect their
buying behaviour... and discover the attitudes towards make-up products of brand extension. Prior to the
actual interview process, a pilot interview was conducted with two regular cosmetics shoppers to ensure
that all possible errors that could potentially occur were minimized, thus enhancing the reliability and
trustworthiness of the study. Based on the findings of the pilot interview, minor changes were made to the
interview guide.
Important to note, the findings of the individual in-depth interviews are considered as a
preliminary step, giving a better understanding with deeper insights and more fruitful pool of data to
comprehend and analyse consumers’ buying behaviour of cosmetics. Also, the interviews provide the
excavation the reasons and practices of consumers’ preferences on make-up products of luxury brands.
The interview result would then complement to the second phase of the research - the focus group.
A2.2 Phase two: Consumer focus groups
After the individual interviews, two focus groups were conducted on 27th March, 2016 and
1st April, 2016, each containing six participants. An important consideration was not to have too many
participants per group. Too many participants would compromise the interviewer’s control of the group,
as the interviewer was also the group moderator. In this case, having six participants per focus group
made it possible to keep each participant engaged while also encouraging the perception of contribution.
The focus group interviews took place in “The Space Centre”, each lasting approximately one and a half
hour and were digitally recorded and transcribed. The composition of each group was determined by the
level of knowledge and familiarity with the concepts of luxury brands and cosmetic products. This
composition would help the researcher to investigate the differences across the groups with regard to the
consumer characteristics (expertise and familiarity) and to ensure that all participants in all groups were
able to express their opinions without being self-conscious.
In total, 12 female consumers participated in the study, representing different ages and
occupations, from students to businesswomen with higher income (refer to table 3.2 for respondent’s
profile). In keeping with qualitative research principles, the focus group interviews involved the execution
of predetermined questions, but the researcher also had the freedom to probe into participants’ answers
deepening in their thoughts and emotions and elicit more detail (Berg, 1995). The interview guide took a
14

more progressive approach, where it began with a general discussion of cosmetics extension from luxury
apparel brands to make the participant more comfortable with the topic of the interview. The participants
were then asked to share their views and opinions on a selection of cosmetics advertising campaigns
based on a Power Point presentation. The chosen adverts were limited to the current cosmetics
advertisements in the luxury industry. Here, the research does not aim at drawing generalizations. Instead,
it wishes to investigate selected informants’ attitudes towards advertising, which is in nature a very
subjective manner. The interactive nature of the focus groups provides the researcher with a
comprehensive overview of the topic, with participants stimulating the thoughts of others in the group,
achieving more spontaneous responses and potentially introducing new ideas and views of the topic
(Davis, 1997). It provides insights into how the group think about the issue of the advertisements, about
the free range of ideas and arguments on the role of ads for extension. So as to result different opinions
among different parties in open-ended, lively and natural discussions among themselves that stimulate
new thoughts and arguments for each other, yield a lot of important information on the designed topic of
advertisements. In the course of each interview (90-120 minutes), the respondents were asked to provide
information about their attitude while buying and behaviour for product choices.
Once the interviews were completed, transcription proceeded and an examination of the
collective responses followed whilst continuously cross-checking with the original recorded interviews.
The transcripts then underwent thematic analysis (Haytko and Baker 2004, Thompson and Haytko 1997)
to identify common themes and messages, and also some similarities, differences and patterns amongst
the interviews.
15