Relationship Between Confidence and Recommendation of Cosmeceuticals

The assignment presents the analysis of confidence and recommendation scores among customers who have used cosmeceuticals. The descriptive statistics reveal that most customers are confident (2.85/5) and willing to recommend the products (5.55/10). A hypothesis test was conducted to establish a relationship between confidence and recommendation, which revealed a positive correlation (r = 0.233, p > 0.05). The findings suggest that there is a significant relationship between customers' confidence in the product's results and their willingness to recommend it to others. Based on these findings, recommendations are made to target specific market regions, increase marketing efforts for males, expand production of pill-form products, and prioritize manufacturing cosmeceuticals over nutriceutical and nutricosmetics.

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Business for Woolworth customer service

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Executive summary
Due to high competition in the market for cosmoceuticals, nutriceutical and nutricosmetics,
Woolworth customer service Company decided to carry out a survey on its customers so as to
understand them better and manufacture products that will retain them. The survey was
conducted on a sample size of 20 and responses collected using questionnaires. It was found that
most females use the product more than males while regions were not equally buying the
products. The study also discovered that the customers preferred nutricosmetics than other
products and in pill form. The research team recommended to the company to carry out
awareness in regions that were experiencing low sales. They are also to manufacture the products
more in pill form.

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Table of content Page
1.0 Introduction 4
2.0 Method of data collection 5
3.0 Summary of the data set 6
4.0 Data analysis 11
5.0 Hypothesis testing 12
6.0 Recommendations and conclusions 13
4.0 References 14

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1.0 Introduction
In the recent past there has been growing demand for not only health but also nutrition and
wellbeing products. These products to be precise are pharmaceutical, cosmetic and nutritional
products. The increasing demand globally has been prompted by the advent of technological
information which has served to enlighten people around the world about good diet and healthy
living which is a key prerequisite to keep diseases at bay. Pharmaceutical products have been on
growing demand due to their medicinal values while nutritional products are known to be rich in
food supplements that help the body remain healthy. Cosmetics on the other hand are those
products that are used mostly for body care.
Due to the afore mentioned dire need for the products, companies have scanned the market and
identified a business opportunity. Companies have emerged with a new approach in a bid to
satisfy the market in a completely new dimension as far the need for these products are
concerned. Companies have now reverted to producing products which have got a mix of any of
the two products. This has led to the manufacture of such products such as cosmoceutical
products, nutraceutical products and nutricosmetic products. Cosmoceutical products are a mix
of pharmaceutical product and cosmetic products. For this reason, this product has medicinal and
cosmetic value and therefore is used for treatment and for general body care. Nutraceutical
product is a mix of pharmaceutical product and nutritional product. For this reason it has both
nutritional value and medicinal value. For this reason, the product can be used for treatment and
as a food supplement too. Lastly, we have nutricosmetic product. Nutricosmetic product is a mix
of cosmetic product and nutritional product. For this reason it has both nutritional value and body

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wellbeing value. For this reason, the product can be used for wellbeing of the body and as a food
supplement too.
In their market diversification by coming up with these new products, these companies have
been able to achieve a universal growth of up to 8% annually. Research has shown that the
nutraceutical, nutricosmetic and cosmoceutical industries have been received differently from
different parts of the world as nutricosmetics industry has been found to thrive in Asia especially
in Japan and China. It is recorded that this region accounts for 90% of the nutricosmetics sold
globally. Nutraceuticals on the other hand has been found to dominate in America where it
accounts for about 45% of the global sales. It is against this background that the Ex-gent
Company decided to conduct a research survey to establish their consumption behavior of these
products so as to inform their manufacture of these products.
2.0 Method of data collection
The population consisted of users of the three products in Australia while the sample population
was drawn from Melbourne city. Both probability and non- probability sampling methods were
used to choose the sample population. Probability sampling method known as simple random
sampling was employed to choose a sample of 100 respondents. Random sampling refers to
sampling where a respondent is picked from a population without using any trick. Purposive
sampling which is a non-probability sampling was then used after to select 20 respondents.
Purposive sampling refers to where an individual is selected because he or she has the qualities
that the researcher is interested in. This was to ensure that any individual sampled had an idea
about any of the three products. Primary method of data collection was used to collect
information from the respondents as opposed to secondary methods. Questionnaires were
therefore used to collect information from the respondents. This was a suitable method as the

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survey was able to get first-hand information from the respondents as far the consumption
experiences of the three products were concerned.
3.0 Summary of the data set
The data was collected from a sample of 20 respondents. The data ranged from qualitative to
quantitative data. Qualitative data included product type, channels of contact, form in which the
respondents are consuming the products, recommending and whether they have confidence in
using the products. This translates to five qualitative variables. Quantitative data included the age
of the respondents, annual and monthly income in dollars. This translated to two quantitative
variables. Demographic data such as gender and location of origin of the respondents was also
captured. Below tables and figures represent the summaries of the dataset collected
a) Summary table of distribution of respondents according to their region
Row Labels
Count of
State
New South
Wales 1
Queensland 2
Western
Australia 4
South Australia 5
Tasmania 6
Victoria 2
Grand Total 20
Table 3.1

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b) Graph of distribution of respondents according to region
New South Wales
Queensland
Western Australia
South Australia
Tasmania
Victoria
0
1
2
3
4
5
6
7
Respondents and origin
Total
Figure 3.1
Table 3.1 and figure 3.1 above show the distribution of customer respondents according to the
regions they come from. It can be observed that most of the respondents interviewed were from
Tasmania who had 6 persons. The least number of respondents come from New South Wales
which had only 1 person. Since the respondents were chosen randomly, it can be assumed that
the highest numbers of nutriceutical, cosmoceutical and nutricosmetics consumers are from
Tasmania and lowest numbers of consumers of these products are from New South Wales.

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c) Table of distribution of respondents according to gender
Row
Labels
Count of
Gender
F 12
M 8
Grand
Total 20
Table 3.2
d) Graph of distribution of respondents according to gender
F M
0
2
4
6
8
10
12
14
Respondents and gender
Total
Figure 3.2
Table 3.2 and figure 3.2 show the distribution of the customers according to gender. It can be
observed that most of the respondents interviewed were females who were 12 in number. The

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number of males in the survey was 8. Since the respondents were chosen randomly, it can be
assumed that the highest numbers of nutriceutical, cosmoceutical and nutricosmetics consumers
are females who constitute to 75% of the total customer base for the products.
e) Table of distribution of respondents according their product preference
Row Labels
Count of Product
Type
Cosmeceutical
s 8
Nutraceuticals 7
Nutricosmetic
s 5
Grand Total 20
Table 3.3
f) Table of distribution of respondents according their product preference
Cosmeceuticals Nutraceuticals Nutricosmetics
0
1
2
3
4
5
6
7
8
9
Product preference
Total
Figure 3.3

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Table 3.3 and figure 3.3 above show the distribution of customer respondents according to their
product preference. It can be observed that most (8) of the respondents interviewed preferred
cosmoceuticals. This is followed by those who are interested in nutraceuticals who are 7 in
number. Nutricosmetics was only preferred by 5 out of the 20 who took part in the survey.
Again, since the respondents were chosen randomly, it can be assumed that the highest
percentage of customers prefers cosmoceuticals as compared to the other two products.
g) Table of distribution of respondents according their product form preference
Row
Labels
Count of
Form
beverage 5
food 6
pills 9
Grand
Total 20
Table 3.4
h) Graph of distribution of respondents according their product form preference

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beverage food pills
0
1
2
3
4
5
6
7
8
9
10
Product form preference
Total
Figure 3.4
The table and graph above represents a summary of the form in which the customers prefer to
consume the three products. It can be observed that 9 out of 20 customers interviewed would like
the products in pill form. This accounts to about 45% of the respondents. 6 out of 20 would like
to consume the products as food. This number constitutes to 30% of the total number
interviewed. The least number (5) preferred the products in beverage form.
4.0 Data analysis
a) Descriptive statistics for confidence and recommendation score
confidence
rating
recommendation
score
Mean 2.85 Mean 5.55
Standard Error
0.26432635
3 Standard Error
0.58253077
6
Median 3 Median 5

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Mode 4 Mode 4
Standard
Deviation
1.18210338
8 Standard Deviation
2.60515682
9
Sample
Variance
1.39736842
1 Sample Variance
6.78684210
5
Count 20 Count 20
Table 4.1
The descriptive statistics for both variables (confidence and recommendation rating) were
analyzed using excel. The results are as shown in table 4.1. Confidence was rated on a scale of 1
to 5 with 1 meaning little confidence and 5 meaning high confidence. This was in regard to
whether the customers were confident of the results of the products. Having a mean rate of 2.85
means that the customers rated confidence level above average which is 2.5. This therefore
means that the majority of the customers are confident of the results from using the products.
This is further supported having a mode of 4 which represents the most repeated number in a
data set.
The recommendation score on the other hand was rated on a scale of 1 to 10 with 1 meaning less
recommendation and 10 highly recommend. This was in regard to whether the respondents
would recommend the products to other customers. The mean recommendation score is 5.55 as
can be observed from the descriptive summary analysis above. Since the score is above 5, then it
means that most of the respondents were willing to recommend the products to other customers.
5.0 Hypothesis testing
It is logical to conclude that only customers who are confident of the end result of the products
will be happy about the products and therefore willing to recommend the product to other
customers. This research study sought to establish whether there was a relationship between
confidence and recommendation.

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Hypothesis
Null hypothesis: There is no relationship between recommendation and confidence.
Vs.
Alternative: There is a significant relationship between recommendation and confidence.
Correlations
Confidence
rating
Recommenda
tion score
Confidence rating
Pearson
Correlation
1 .233
Sig. (2-tailed) .322
N 20 20
Recommendation
score
Pearson
Correlation
.233 1
Sig. (2-tailed) .322
N 20 20
Table 5.1
From the correlation table above, it can be observed that the p-value (.32) is greater than the
level of significance (.05). The test is therefore guided to reject the null hypothesis and accept the
alternative. The decision therefore is that there is a relationship between confidence and
recommendation. To add on, the Pearson correlation coefficient (.23) also shows that there is a
significant positive correlation between the two variables.
6.0 Conclusion and recommendations
In as much as these products are enjoying large market in Australia, the market is not balanced.
Region such as New South Wales has few customers. This could be because there is inadequate
awareness regarding the products in this region. Therefore, there is need to carry out a serious
marketing campaign in this area to create awareness. More females than males seem to be using
the products. This could be because cosmetic products are synonymous with ladies. The

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company is therefore advised to come up with a strategy to demystify this issue so as to expand
its market to include even more men. The research also found that most of the customers prefer
to consume the products in form of pills. It is therefore recommended that the company produce
a lot of the product in pill form compared to other forms. It is also recommended that the
company manufacture more cosmoceuticals than nutriceutical and nutricosmetics since majority
of the consumers showed preference for cosmoceuticals.
References
Cosmeceuticals: A Revolution in the Cosmetic Market’, Abdullah B J, Nasreen R, May 2012
Investigating the effects of Cosmeceutical product advertising in beauty-care decision making’,
International Journal of Pharmaceutical and Healthcare Marketing, Vol. 6 Iss: 3, Juan Meng, Po-Lin Pan,
2012
Global Nutraceutical Industry: Investing in Healthy Living’, Frost & Sullivan, 2012
Cosmeceuticals: Current Trends and Market Analysis’, Fredric S. Brandt, Alex Cazzaniga, and Michael
Hann, 2011
Leveraging growth in the emerging functional foods industry: Trends and market opportunities’, Report
by PricewaterhouseCoopers, 2009