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Study On Effects Of Cosmetics Advertisement In Influencing Consumer's Purchase
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Added on 2020-02-14
Study On Effects Of Cosmetics Advertisement In Influencing Consumer's Purchase
Added on 2020-02-14
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An exploratory study into how cosmetics extensionadvertisement influence consumer’s attitude andbehaviour towards the extension product
TABLE OF CONTENTSCHAPTER ONE.............................................................................................................................................................4INTRODUCTION..........................................................................................................................................................41.1 Background of the study ...............................................................................................................................11.2 significance of the study................................................................................................................................31.3 Research aims and objectives........................................................................................................................31.4 Research methodology ..................................................................................................................................41.5 Research structure..........................................................................................................................................4CHAPTER 2...................................................................................................................................................................6LITERATURE REVIEW...............................................................................................................................................62.1 Introduction....................................................................................................................................................72.2 Brand extension concept................................................................................................................................72.3 Concept of brand extension for luxury goods ...............................................................................................82.4 Consumer buying behaviour .........................................................................................................................92.5 Luxury brand extensions and consumer buying behaviour ........................................................................112.6 Role of advertisement on consumer attitude for luxury cosmetic products ...............................................122.7 impact of informational and emotional advertisement on brand extension.................................................132.8 Consumer knowledge..................................................................................................................................142.8 Conclusion...................................................................................................................................................14CHAPTER 3 RESEARCH METHODOLOGY...........................................................................................................163.1 Introduction....................................................................................................................................................13.2 Research design.............................................................................................................................................23.3 Research philosophy......................................................................................................................................33.4 Research approach.........................................................................................................................................33.5 Research choice and strategy.........................................................................................................................43.6 Research technique........................................................................................................................................43.6.1 Data collection......................................................................................................................................43.6.2 Sampling...............................................................................................................................................53.6.3 Data analysis.........................................................................................................................................53.8 Ethical consideration .....................................................................................................................................63.9 Limitation of the study ..................................................................................................................................63.10 Summary......................................................................................................................................................6REFERENCES................................................................................................................................................................8APPENDICIES.............................................................................................................................................................11A1 Sampling details ..........................................................................................................................................11A2 Primary data collection details.....................................................................................................................11
CHAPTER ONEINTRODUCTION
1.1 Background of the study Fashion industry is one of the most dynamic and volatile industry of the economy. The impact ofconsumer 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 cosmeticindustry. UK beauty industry is growing efficiently in the present era. The market is worth £17 billion, itis forecasted to grow 16 per cent by 2016. The impact of recession was also low on the industry as UKbeauty market grew at the rate of 15.5% during economic slowdown as well (The value of UK fashionIndustry, 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 isdeveloping in the UK market. Makeup segment reflects highly growing demand in UK. The figurereflects 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 loyaltySource: 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 loyaltytowards different products and services offered (Solomon, 2014). These days, the luxury market is nolonger enjoyed by only the affluent society, it has become more accessible to audience. This phenomenon1
is supported by the thesis of Khraim, (2011), who refers to the democratization of luxury significantlyinfluencing consumers’ spending habits and social trends. Driven by the increasing demand in luxurygoods and higher spending power of the middle class, luxury brands keep expanding their brand portfolioto 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 createan effective and well developed impact on sales maximization and brand loyalty. Fashion brands haveparticularly frequently been using brand extension as a key strategy to stimulate growth. It is a cheaperand 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 marketshare within the global market. Companies such as Gucci, Burberry etc. has successfully adopted thismeasure in order to provide wide variety of products analyzing their specific needs thus developing hightrust for the company. The strategy has helped fashion brands to anticipate consumer needs and meetthem efficiently though brand extensions to attain positive perception for products in the market. MügeArslan and Korkut Altuna, (2010) however examined that the success of brand extensions is uncertainand unpredictable as it is widely dependent on consumer attitude and perception. The figure reflects aclear picture of brand loyalty in different industry. Brand loyalty in skincare segment is high becauseconsumers are sensitive towards the products and its result to them. Associating with one brand makesthem unwilling to try new products or brands in the market. Figure 1.2 Brand loyalty for luxury products 2
Source: Beauty is big business for Britain (2016)Hence, in order to ensure the successful implementation of the strategy and to develop a competitive edgewithin the market, companies have adopted effective and innovative advertisement strategies for thebuyers. The above figure represents a clear picture of consumer loyalty for luxury product categories andrange as well. Choi and et.al., (2010) stated in a research that advertisement helps in communicating massaudience about product availability and existence which helps them in enhancing brand loyalty anddemand for the products. Advertisements are the source of enhancing consumer knowledge about theproduct availability, usability and features. It helps companies in converting non users into users. Inaddition to this advertisement also enhance perceived fit as it helps consumers in developing positiverelations between products and parent brand (How Not to Extend Your Luxury Brand, 2005). In thepresent competitive era companies are developing advertisement to influence the purchase intentions ofthe buyers for extension products. The study will focus on analyzing whether advertisements influencetheir purchase intentions toward the extension product or not. The aim of the present study is “to explore the effectiveness of cosmeticsextensionadvertisementin 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 consumerperception about product extension advertisement along with evaluation of its impact on buyingbehaviour of consumers. Extensive study has been undertaken to investigate a valuable analysis of theresearch topic. To conduct the study well developed industry analysis and individual behaviour of3
consumers attitude has been evaluated in order to analyse the impact of advertisement for luxury productcategories in the market.1.2 significance of the studyThe 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 indefiniteimpact on business growth and success (Anwar and et.al., 2011). Given a practical relevance for brandextensions within the luxury sector it has been analysed that there are not many known studies addressingthis topic. It is significant to understand the managerial process involved in the extension and examinekey determinants influencing the cosmetics brand extension’s success along with the impact ofadvertisement on consumer attitude and behaviour (Wang, and Sun, 2010). The outcomes of this researchwill provide useful insights for luxury fashion industry when managing brand extensions, with a betterunderstanding of consumers’ attitude and behaviour. Hence, the study will develop an in-depthunderstanding on how luxury fashion companies could utilize advertisement to support their cosmeticextensions and will understand the application of the same in practical business situations. It will developa detailed analysis about the concept of brand extension and its relevance for luxury product range ofcosmetics. It will consider different aspects of consumer behaviour and attitude towards luxury brandextension and impact of advertisement on consumer attitude and behaviour for the products. The studywill also focus on analyzing whether advertisements influence their purchase intentions toward theextension product or not. 1.3 Research aims and objectivesThe aim of the present study is “to explore the effectiveness of cosmetics extensionadvertisementininfluencing consumer's purchase intention towards the extension product”. In order to attain the statedaim researcher will conduct an in-depth analysis of the topic and attain well developed results from thesame. The objective developed to attain research aim in an effective manner has been discussedhenceforth.To understand the concept of brand extension for luxury cosmetic industryTo analyse consumer buying behaviour for luxury cosmetic productsTo examine the impact of cosmetics extension advertisement on consumer buying behaviour forproduct extensionsTo provide managerial implications and recommendations about successful advertisement forcosmetic extensions of luxury fashion labels4
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