Promotional Activities and Consumer Buying Behavior: Natio, Australia
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This comprehensive report examines the influence of promotional activities on consumer buying behavior within the cosmetic industry, using Natio Cosmetics, Australia, as a central case study. The research delves into the promotional strategies employed by Natio Cosmetics, identifying both their strengths and weaknesses. Through the collection of primary data via interviews and questionnaires, alongside secondary data analysis, the study investigates how promotional activities affect consumer attention, interest, and ultimately, purchasing decisions. It explores the role of factors such as self-esteem, attitude, social class, religion, gender, and culture in shaping consumer behavior. The report concludes with recommendations for Natio Cosmetics, including specializing in product offerings, implementing effective promotional campaigns, and adopting a customer-centric approach to enhance sales and market share. The report also includes detailed findings, discussions, and limitations of the study.
Consumer buying Behaviour 1
Impact of Promotional Activities on Consumer buying Behaviour in Cosmetic Industry: A
Case Study of Natio Cosmetics, Australia.
by
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Impact of Promotional Activities on Consumer buying Behaviour in Cosmetic Industry: A
Case Study of Natio Cosmetics, Australia.
by
Course:
Tutor:
University:
Department:
Date:
Word Count: 7,263
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Consumer buying Behaviour 2
EXECUTIVE SUMMARY
The study aimed to determine the impact of Impact of Promotional Activities on Consumer
buying Behaviour in Cosmetic Industry by using Natio Cosmetics, Australia, as the case
study. More precisely, the research aimed to ascertain the promotional activities used to
market Natio Cosmetic products, the weaknesses of its promotional strategy and make
recommendations for an effective advertisement that will increase sales and market share of
the organization.
The research was carried out at the main offices of Natio Cosmetics and both primary and
secondary data collected by the use of interview and questionnaires in addition to individual
observation. Content analysis was used to gather secondary data from existing relevant
literature.
The study population involved 500 selected employees of the company in addition to
customers that visited the outlet. The respondents were sample using purposive sampling and
random sampling; the data gathered using structured questionnaires. Quantitative data were
analyzed using SPSS and the findings presented in the form of tables and figures.
Based on the research findings, the research concluded that promotional activities influence
consumers buying behavior by gaining their attention, creating interest and developing a
desire to buy the products. The study recommends Natio Cosmetics to specialize in their
production, implement effective promotional activities, design Customer-oriented
Promotional Activities and explore additional factors that influence consumer buying
behaviors to increase sales and market share
EXECUTIVE SUMMARY
The study aimed to determine the impact of Impact of Promotional Activities on Consumer
buying Behaviour in Cosmetic Industry by using Natio Cosmetics, Australia, as the case
study. More precisely, the research aimed to ascertain the promotional activities used to
market Natio Cosmetic products, the weaknesses of its promotional strategy and make
recommendations for an effective advertisement that will increase sales and market share of
the organization.
The research was carried out at the main offices of Natio Cosmetics and both primary and
secondary data collected by the use of interview and questionnaires in addition to individual
observation. Content analysis was used to gather secondary data from existing relevant
literature.
The study population involved 500 selected employees of the company in addition to
customers that visited the outlet. The respondents were sample using purposive sampling and
random sampling; the data gathered using structured questionnaires. Quantitative data were
analyzed using SPSS and the findings presented in the form of tables and figures.
Based on the research findings, the research concluded that promotional activities influence
consumers buying behavior by gaining their attention, creating interest and developing a
desire to buy the products. The study recommends Natio Cosmetics to specialize in their
production, implement effective promotional activities, design Customer-oriented
Promotional Activities and explore additional factors that influence consumer buying
behaviors to increase sales and market share
Consumer buying Behaviour 3
Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
LIST OF TABLES.....................................................................................................................6
LIST OF FIGURES....................................................................................................................7
CHAPTER ONE: INTRODUCTION........................................................................................8
1.1 Introduction......................................................................................................................8
1.2 Overview of the Industry Partner.....................................................................................8
1.3 Problem Statement............................................................................................................9
1.4 Research Aim.................................................................................................................10
1.5 Research Questions........................................................................................................10
1.6 Structure of the Report...................................................................................................10
CHAPTER TWO: LITERATURE REVIEW..........................................................................11
2.1 Introduction....................................................................................................................11
2.2 Importance of Promotional Activities in Cosmetic Industry..........................................11
2.2.1 Creates Awareness...................................................................................................11
2.2.2 Advertising Conviction............................................................................................11
2.2.3 Making Appeals.......................................................................................................11
2.3 Factors That Influence Consumer Purchasing Behaviour..............................................12
2.3.1 Cultural factors........................................................................................................12
2.3.2 Social factors............................................................................................................12
2.3.3 Gender factors..........................................................................................................13
2.3.4 Religion factor.........................................................................................................14
2.4 Factors Affecting Promotional Activities of Cosmetics.................................................14
2.4.1 Changing Face of Cosmetic Distributors.................................................................14
2.4.2 Regulation of Drug and Cosmetic Act and the Fair Packaging and Liability Act...15
2.5 Theory of Consumer Behaviour.....................................................................................15
2.5.1 Engel, Kollat and Blackwell (EKB) Model.............................................................15
2.6 Impact of Promotional Activity on Customer Purchase Intention.................................17
2.6.1 Altering Customer Behaviour and Loyalty..............................................................17
2.6.2 Increase competitive edge of the organization.....................................................17
2.6.3 Promotional Strategies..........................................................................................18
CHAPTER THREE: METHODOLOGY................................................................................19
Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
LIST OF TABLES.....................................................................................................................6
LIST OF FIGURES....................................................................................................................7
CHAPTER ONE: INTRODUCTION........................................................................................8
1.1 Introduction......................................................................................................................8
1.2 Overview of the Industry Partner.....................................................................................8
1.3 Problem Statement............................................................................................................9
1.4 Research Aim.................................................................................................................10
1.5 Research Questions........................................................................................................10
1.6 Structure of the Report...................................................................................................10
CHAPTER TWO: LITERATURE REVIEW..........................................................................11
2.1 Introduction....................................................................................................................11
2.2 Importance of Promotional Activities in Cosmetic Industry..........................................11
2.2.1 Creates Awareness...................................................................................................11
2.2.2 Advertising Conviction............................................................................................11
2.2.3 Making Appeals.......................................................................................................11
2.3 Factors That Influence Consumer Purchasing Behaviour..............................................12
2.3.1 Cultural factors........................................................................................................12
2.3.2 Social factors............................................................................................................12
2.3.3 Gender factors..........................................................................................................13
2.3.4 Religion factor.........................................................................................................14
2.4 Factors Affecting Promotional Activities of Cosmetics.................................................14
2.4.1 Changing Face of Cosmetic Distributors.................................................................14
2.4.2 Regulation of Drug and Cosmetic Act and the Fair Packaging and Liability Act...15
2.5 Theory of Consumer Behaviour.....................................................................................15
2.5.1 Engel, Kollat and Blackwell (EKB) Model.............................................................15
2.6 Impact of Promotional Activity on Customer Purchase Intention.................................17
2.6.1 Altering Customer Behaviour and Loyalty..............................................................17
2.6.2 Increase competitive edge of the organization.....................................................17
2.6.3 Promotional Strategies..........................................................................................18
CHAPTER THREE: METHODOLOGY................................................................................19
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3.1 Introduction....................................................................................................................19
3.2 Research Design.............................................................................................................19
3.3 Target Population and Sampling Design........................................................................19
3.3.1 Population................................................................................................................19
3.3.2 Sampling Design......................................................................................................20
3.4 Data Collection...............................................................................................................21
3.5 Data Analysis..................................................................................................................22
3.6 Ethical Issues..................................................................................................................22
CHAPTER FOUR: FINDINGS...............................................................................................23
4.1 Introduction....................................................................................................................23
4.2 Demographic Features of the Respondents....................................................................23
4.2.1 Age of the Respondents...........................................................................................23
4.2.2 Gender of the Respondents......................................................................................24
4.2.3 Education Level of Respondents.............................................................................24
4.2.4 Awareness on Promotional Strategies in Cosmetics................................................25
4.3 Promotional Strategies used by Natio Cosmetics...........................................................26
4.4 Impacts of Promotional Activities on Consumer Buying Behaviour.............................26
4.4.1 Promotional Activities Draws Consumers’ Attention on Natio Cosmetic Products
..........................................................................................................................................26
4.4.2 Promotional Activities affect Consumer Buying Behavior by developing interest.28
4.4.3 Promotional Activities affect Consumer Buying Behavior by Generating Desire. .28
4.5 Social Factors that influence Consumer Buying Behaviour...........................................29
4.5.1 Self Esteem Influences Consumer Buying Behaviour.............................................29
4.5.2 Attitude Influences Consumer Buying Behavior.....................................................30
4.5.3 Social Class Influences Consumer Buying Behavior..............................................30
4.6 Influence of Religion on Consumer Buying Behaviour.................................................31
4.7 Influence of Gender on Consumer Buying Behavior.....................................................32
4.8 Influence of Culture on Consumer Buying Behavior.....................................................33
CHAPTER FIVE: DISCUSSIONS..........................................................................................35
5.1 Introduction....................................................................................................................35
5.2 Promotional Activities Used By Natio Cosmetics.........................................................35
5.3 Challenges Faced By Natio Cosmetics in Developing Attractive Promotional Features
..............................................................................................................................................36
3.1 Introduction....................................................................................................................19
3.2 Research Design.............................................................................................................19
3.3 Target Population and Sampling Design........................................................................19
3.3.1 Population................................................................................................................19
3.3.2 Sampling Design......................................................................................................20
3.4 Data Collection...............................................................................................................21
3.5 Data Analysis..................................................................................................................22
3.6 Ethical Issues..................................................................................................................22
CHAPTER FOUR: FINDINGS...............................................................................................23
4.1 Introduction....................................................................................................................23
4.2 Demographic Features of the Respondents....................................................................23
4.2.1 Age of the Respondents...........................................................................................23
4.2.2 Gender of the Respondents......................................................................................24
4.2.3 Education Level of Respondents.............................................................................24
4.2.4 Awareness on Promotional Strategies in Cosmetics................................................25
4.3 Promotional Strategies used by Natio Cosmetics...........................................................26
4.4 Impacts of Promotional Activities on Consumer Buying Behaviour.............................26
4.4.1 Promotional Activities Draws Consumers’ Attention on Natio Cosmetic Products
..........................................................................................................................................26
4.4.2 Promotional Activities affect Consumer Buying Behavior by developing interest.28
4.4.3 Promotional Activities affect Consumer Buying Behavior by Generating Desire. .28
4.5 Social Factors that influence Consumer Buying Behaviour...........................................29
4.5.1 Self Esteem Influences Consumer Buying Behaviour.............................................29
4.5.2 Attitude Influences Consumer Buying Behavior.....................................................30
4.5.3 Social Class Influences Consumer Buying Behavior..............................................30
4.6 Influence of Religion on Consumer Buying Behaviour.................................................31
4.7 Influence of Gender on Consumer Buying Behavior.....................................................32
4.8 Influence of Culture on Consumer Buying Behavior.....................................................33
CHAPTER FIVE: DISCUSSIONS..........................................................................................35
5.1 Introduction....................................................................................................................35
5.2 Promotional Activities Used By Natio Cosmetics.........................................................35
5.3 Challenges Faced By Natio Cosmetics in Developing Attractive Promotional Features
..............................................................................................................................................36
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Consumer buying Behaviour 5
5.4 Factors Leading to the Decline in Organizational sales.................................................37
5.4.1 Types of promotional activities...............................................................................37
5.4.2 A dynamic cosmetic industry..................................................................................37
5.4.3 Varying factors that influence consumer buying behavior......................................38
5.5 Influence of Promotional Activities on the Customer Purchase Intention.....................38
CHAPTER SIX: RECOMMENDATIONS.............................................................................40
6.1 Introduction....................................................................................................................40
6.2 Specialization of Cosmetic Products..............................................................................40
6.3 Implementation of effective promotional activities in the company..............................40
6.4 The Natio Cosmetics Promotional Activities should be Customer-oriented..................41
6.5 Evaluation of additional factors that influence consumer buying behaviors to increase
sales and market share..........................................................................................................41
CHAPTER SEVEN: CONCLUSIONS AND LIMITATIONS...............................................43
7.1 Conclusions....................................................................................................................43
7.2 Limitations......................................................................................................................43
References................................................................................................................................44
Appendices...............................................................................................................................51
Appendix 1: Questionnaire...................................................................................................51
5.4 Factors Leading to the Decline in Organizational sales.................................................37
5.4.1 Types of promotional activities...............................................................................37
5.4.2 A dynamic cosmetic industry..................................................................................37
5.4.3 Varying factors that influence consumer buying behavior......................................38
5.5 Influence of Promotional Activities on the Customer Purchase Intention.....................38
CHAPTER SIX: RECOMMENDATIONS.............................................................................40
6.1 Introduction....................................................................................................................40
6.2 Specialization of Cosmetic Products..............................................................................40
6.3 Implementation of effective promotional activities in the company..............................40
6.4 The Natio Cosmetics Promotional Activities should be Customer-oriented..................41
6.5 Evaluation of additional factors that influence consumer buying behaviors to increase
sales and market share..........................................................................................................41
CHAPTER SEVEN: CONCLUSIONS AND LIMITATIONS...............................................43
7.1 Conclusions....................................................................................................................43
7.2 Limitations......................................................................................................................43
References................................................................................................................................44
Appendices...............................................................................................................................51
Appendix 1: Questionnaire...................................................................................................51
Consumer buying Behaviour 6
LIST OF FIGURES
Figure 4.1: Awareness on Promotional Strategies in Cosmetics.............................................25
Figure 4.2: Promotional Strategies used by Natio Cosmetics..................................................26
Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products..................26
Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products....................28
Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products........................28
Figure 4.6 Self Esteem Influences Consumer Buying Behaviour............................................29
Figure 4.7 Attitude Influences Consumer Buying Behavior....................................................30
Figure 4.8 Social Class Influences Consumer Buying Behavior.............................................30
Figure 4.9 Religion Influences Consumer Buying Behaviour.................................................31
Figure 4.10 Gender Influences Consumer Buying Behavior...................................................32
Figure 4.11 Culture Influences Consumer Buying Behavior...................................................32
LIST OF FIGURES
Figure 4.1: Awareness on Promotional Strategies in Cosmetics.............................................25
Figure 4.2: Promotional Strategies used by Natio Cosmetics..................................................26
Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products..................26
Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products....................28
Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products........................28
Figure 4.6 Self Esteem Influences Consumer Buying Behaviour............................................29
Figure 4.7 Attitude Influences Consumer Buying Behavior....................................................30
Figure 4.8 Social Class Influences Consumer Buying Behavior.............................................30
Figure 4.9 Religion Influences Consumer Buying Behaviour.................................................31
Figure 4.10 Gender Influences Consumer Buying Behavior...................................................32
Figure 4.11 Culture Influences Consumer Buying Behavior...................................................32
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LIST OF TABLES
Table 3.1 Target Population
Table 3.2 Sample Size
Table 4.1 Age Summary of the Respondents
Table 4.2 Gender of the Respondents
Table 4.3 Education Level of Respondents
LIST OF TABLES
Table 3.1 Target Population
Table 3.2 Sample Size
Table 4.1 Age Summary of the Respondents
Table 4.2 Gender of the Respondents
Table 4.3 Education Level of Respondents
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Consumer buying Behaviour 8
CHAPTER ONE: INTRODUCTION
1.1 Introduction
A consumer is one who purchases and uses products. Consumers demand a variety of
products depending on their tastes and preferences, which vary with time. A consumer’s
tastes and preferences can also be determined by psychological and ecological factors.
Therefore, promotional activities function to influence the taste and preference of the choice
of the consumer (Sharma, 2009). Promotions involve massive publicity of items. Promotional
activities focus on creating awareness of the use and advantage of products to consumers.
Through such activities, products are made available to those interested, and this meets the
desires of the advertiser thus increasing sales (Moriarty et al., 2014). Consumers are usually
rational concerning their purchases and wish to optimize their satisfaction of consumer
products (Sharma, 2009). Solomon et al. (2014) defines consumer behavior as the conduct
that is exhibited by a consumer in seeking for the purchase, use, assessment and dispose of
services or products he/she expects to meet the needs. Consumer behavior encompasses what
consumers purchase, the reason, the period, the place of purchase, the manner of acquisition,
the frequency of the item’s or service use, how to assess it after buying and the effect of such
an assessment, and how they dispose of it (Lantos, 2015).
1.2 Overview of the Industry Partner
Natio Cosmetics, Australia is an Australian family business that manufactures beauty
products for skin care and other cosmetics both domestic and international market. The
company was founded by Max and Viviane Ross and has been in operation for the last 75
years. Natio Cosmetics is one of the cosmetic giants in the Australian market in the
production of natural beauty products, and its products have been rated as one of the best
performing skincare and make-up brands in the pharmaceutical sector of Australia. The
organization is on the move with a definite goal of delivering plant-based, smooth and
CHAPTER ONE: INTRODUCTION
1.1 Introduction
A consumer is one who purchases and uses products. Consumers demand a variety of
products depending on their tastes and preferences, which vary with time. A consumer’s
tastes and preferences can also be determined by psychological and ecological factors.
Therefore, promotional activities function to influence the taste and preference of the choice
of the consumer (Sharma, 2009). Promotions involve massive publicity of items. Promotional
activities focus on creating awareness of the use and advantage of products to consumers.
Through such activities, products are made available to those interested, and this meets the
desires of the advertiser thus increasing sales (Moriarty et al., 2014). Consumers are usually
rational concerning their purchases and wish to optimize their satisfaction of consumer
products (Sharma, 2009). Solomon et al. (2014) defines consumer behavior as the conduct
that is exhibited by a consumer in seeking for the purchase, use, assessment and dispose of
services or products he/she expects to meet the needs. Consumer behavior encompasses what
consumers purchase, the reason, the period, the place of purchase, the manner of acquisition,
the frequency of the item’s or service use, how to assess it after buying and the effect of such
an assessment, and how they dispose of it (Lantos, 2015).
1.2 Overview of the Industry Partner
Natio Cosmetics, Australia is an Australian family business that manufactures beauty
products for skin care and other cosmetics both domestic and international market. The
company was founded by Max and Viviane Ross and has been in operation for the last 75
years. Natio Cosmetics is one of the cosmetic giants in the Australian market in the
production of natural beauty products, and its products have been rated as one of the best
performing skincare and make-up brands in the pharmaceutical sector of Australia. The
organization is on the move with a definite goal of delivering plant-based, smooth and
Consumer buying Behaviour 9
straightforward beauty treatments that are flexible and can meet the current assorted
lifestyles. The company believes that none should lower standards when dealing with
cosmetics and skincare, and as a result, they have developed a quality beauty care system that
is economical to everyone. The organization is determined that consumers expense majorly
on the product and not for expensive advertisements and packaging (Natio, no date).
1.3 Problem Statement
Promotion or advertisement has been researched from various perspectives for decades.
According to (Sharma, 2009) individuals and organizations were disinterested with
advertisements in the 19th century because most of the increase in the sales of beauty
products than was attributed to other aspects such as taste, period of use of the products and
the readiness of the consumer to shift between products (Tellis, 2009). This prompted
numerous research, especially in the cosmetics industry.
The research by de Magistris and Gracia (2008) on the cosmetics industry of Mexico showed
that strategic product positioning and active retailing influence the perceptions of the
consumers and assist in the development of long-term consumer attitude towards the brand.
Lu and Yu-Jen Su (2009) found out that the consumer's selection of mobile phones was
influenced by social, cultural and personal factors. The author also singled out peer pressure
to play a prominent role in controlling the purchase behavior of telephone handsets by
students.
The conflicting research findings on the impact of promotional activities on consumer
behavior was the basis for the problem of this research. Thus, the researcher sought solutions
for how promotional activities influence consumer behavior with a par, particular focus on
the cosmetics industry. The researcher chose cosmetic products as a case study because they
fulfill the settings of products on which they are effective to advertise. The Australian
straightforward beauty treatments that are flexible and can meet the current assorted
lifestyles. The company believes that none should lower standards when dealing with
cosmetics and skincare, and as a result, they have developed a quality beauty care system that
is economical to everyone. The organization is determined that consumers expense majorly
on the product and not for expensive advertisements and packaging (Natio, no date).
1.3 Problem Statement
Promotion or advertisement has been researched from various perspectives for decades.
According to (Sharma, 2009) individuals and organizations were disinterested with
advertisements in the 19th century because most of the increase in the sales of beauty
products than was attributed to other aspects such as taste, period of use of the products and
the readiness of the consumer to shift between products (Tellis, 2009). This prompted
numerous research, especially in the cosmetics industry.
The research by de Magistris and Gracia (2008) on the cosmetics industry of Mexico showed
that strategic product positioning and active retailing influence the perceptions of the
consumers and assist in the development of long-term consumer attitude towards the brand.
Lu and Yu-Jen Su (2009) found out that the consumer's selection of mobile phones was
influenced by social, cultural and personal factors. The author also singled out peer pressure
to play a prominent role in controlling the purchase behavior of telephone handsets by
students.
The conflicting research findings on the impact of promotional activities on consumer
behavior was the basis for the problem of this research. Thus, the researcher sought solutions
for how promotional activities influence consumer behavior with a par, particular focus on
the cosmetics industry. The researcher chose cosmetic products as a case study because they
fulfill the settings of products on which they are effective to advertise. The Australian
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Trusted by 1+ million students worldwide
Consumer buying Behaviour 10
cosmetics industry comprises several differentiated cosmetic commodities which accomplish
the same objective. Hence, this study seeks to ascertain the impacts of promotional activities
on consumer buying behavior of cosmetic products with a case study of Natio Cosmetics,
Australia.
1.4 Research Aim
The general aim of this study was to find out the influence of promotional activities on
consumer buying behavior with a specific focus on Natio Cosmetics, Australia.
1.5 Research Questions
1. What kind of promotional activities are used by Natio Cosmetic Brand for attracting
customers?
2. What issues are the company facing in developing attractive promotional features?
3. What are detrimental factors resulting in a decline in sales in the organization?
4. How is the customer purchase intention influenced by the company’s activities?
5. What improved steps can the organization adapt to increase sales and overcome
promotional challenges?
1.6 Structure of the Report
This study comprises of five chapters. The first chapter includes an introduction, problem of
research, and study aim. The literature review is in section two; chapter three comprises of
research methodologies used in the study. Chapter four provides the findings and subsequent
justifications in and evaluation whereas chapters five and six provide discussions and
recommendations respectively. Finally, the seventh chapter offers research conclusions and
recommendations.
cosmetics industry comprises several differentiated cosmetic commodities which accomplish
the same objective. Hence, this study seeks to ascertain the impacts of promotional activities
on consumer buying behavior of cosmetic products with a case study of Natio Cosmetics,
Australia.
1.4 Research Aim
The general aim of this study was to find out the influence of promotional activities on
consumer buying behavior with a specific focus on Natio Cosmetics, Australia.
1.5 Research Questions
1. What kind of promotional activities are used by Natio Cosmetic Brand for attracting
customers?
2. What issues are the company facing in developing attractive promotional features?
3. What are detrimental factors resulting in a decline in sales in the organization?
4. How is the customer purchase intention influenced by the company’s activities?
5. What improved steps can the organization adapt to increase sales and overcome
promotional challenges?
1.6 Structure of the Report
This study comprises of five chapters. The first chapter includes an introduction, problem of
research, and study aim. The literature review is in section two; chapter three comprises of
research methodologies used in the study. Chapter four provides the findings and subsequent
justifications in and evaluation whereas chapters five and six provide discussions and
recommendations respectively. Finally, the seventh chapter offers research conclusions and
recommendations.
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Consumer buying Behaviour 11
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
This chapter involves a review of the theoretical literature, empirical literature, research gap
and conceptual framework.
2.2 Importance of Promotional Activities in Cosmetic Industry
2.2.1 Creates Awareness
The objective of promotional activities makes the consumer aware of the organization's
product. The promoter has to therefore carefully choose the medium which will increase the
chances of reaching the target market. This calls for an analysis of the most common media
used by the target consumers (Nelson-Field and Riebe, 2011). Promotional help in not only
creating awareness but also developing an interest in the product by the consumer. This is
usually achieved by exposing the consumer to the benefits of the product and being presented
as the solution to a problem. Through awareness, the number of consumers who are likely to
buy the product is maximized due to the exposure to promotional activities (Butler, 2013).
2.2.2 Advertising Conviction
Promotional activities like advertising serve to arrest the consumer’s attention to a given
product to influence their purchase decision (Lundqvist et al., 2013). This is attained through
providing relevant information to the consumer, like the rewards of the product to the
consumer. The advertisement uses different creativity to share the same information but from
a new light such as the use of humor, celebrities among others. However, care should be
exercised in the use of celebrities to ensure that there is integration and that the focus doesn’t
shift to the creative device but the intended message reaches the target consumer (Gurun and
Butler, 2012).
2.2.3 Making Appeals
Bian and Forsythe (2012) divide message appeals into rational and emotional. Emotional
appeals are geared towards the development of positive feelings and create an individual
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
This chapter involves a review of the theoretical literature, empirical literature, research gap
and conceptual framework.
2.2 Importance of Promotional Activities in Cosmetic Industry
2.2.1 Creates Awareness
The objective of promotional activities makes the consumer aware of the organization's
product. The promoter has to therefore carefully choose the medium which will increase the
chances of reaching the target market. This calls for an analysis of the most common media
used by the target consumers (Nelson-Field and Riebe, 2011). Promotional help in not only
creating awareness but also developing an interest in the product by the consumer. This is
usually achieved by exposing the consumer to the benefits of the product and being presented
as the solution to a problem. Through awareness, the number of consumers who are likely to
buy the product is maximized due to the exposure to promotional activities (Butler, 2013).
2.2.2 Advertising Conviction
Promotional activities like advertising serve to arrest the consumer’s attention to a given
product to influence their purchase decision (Lundqvist et al., 2013). This is attained through
providing relevant information to the consumer, like the rewards of the product to the
consumer. The advertisement uses different creativity to share the same information but from
a new light such as the use of humor, celebrities among others. However, care should be
exercised in the use of celebrities to ensure that there is integration and that the focus doesn’t
shift to the creative device but the intended message reaches the target consumer (Gurun and
Butler, 2012).
2.2.3 Making Appeals
Bian and Forsythe (2012) divide message appeals into rational and emotional. Emotional
appeals are geared towards the development of positive feelings and create an individual
Consumer buying Behaviour 12
brand, whereas rational appeals are built on facts about the product. Promotional activities
often use emotional appeals because studies have proved them to be most effective (Micu and
Plummer, 2010). This is because the attitudes of the consumers towards a product will
significantly affect their purchase decision and yet positions are based on emotions. Thus
promotional activities use this strategy to make products appealing by influencing the
consumers’ attitudes.
2.3 Factors That Influence Consumer Purchasing Behaviour
2.3.1 Cultural factors
Rani (2014) defined culture as “the intricate symbols and artifacts created by a given society
and passed down from generation to generation as determinants and regulators of human
behavior”. Each culture comprises smaller subcultures or categories of people with a typical
value system based on universal life experiences and circumstances. For example
nationalities, religions, racial groups, etc. (Horner and Swarbrooke, 2016).
Lee and Kacen (2008) researched the influence of culture on consumer buying behavior and
found out that culture substantially affects consumer buying behavior at all its levels be it
ethnicity or personal level. The study outcomes also demonstrated that culture affects both
individual and corporate behavior towards a product. According to Nayeem (2012) culture is
so powerful because an individual would like to conform to it when seeking approval, status,
and belonging. De Mooij (2010) observes that there exist essential cultural differences across
the globe and therefore it’s fatal for marketers to assume of cultural uniformity while making
marketing strategies.
2.3.2 Social factors
According to Kotler (2012), social factors that affect consumer buying behavior can be
grouped into three: family, reference group and social class. Engels (2010) defines family as
a social group that is made up of a minimum of two individuals that reside together due to
brand, whereas rational appeals are built on facts about the product. Promotional activities
often use emotional appeals because studies have proved them to be most effective (Micu and
Plummer, 2010). This is because the attitudes of the consumers towards a product will
significantly affect their purchase decision and yet positions are based on emotions. Thus
promotional activities use this strategy to make products appealing by influencing the
consumers’ attitudes.
2.3 Factors That Influence Consumer Purchasing Behaviour
2.3.1 Cultural factors
Rani (2014) defined culture as “the intricate symbols and artifacts created by a given society
and passed down from generation to generation as determinants and regulators of human
behavior”. Each culture comprises smaller subcultures or categories of people with a typical
value system based on universal life experiences and circumstances. For example
nationalities, religions, racial groups, etc. (Horner and Swarbrooke, 2016).
Lee and Kacen (2008) researched the influence of culture on consumer buying behavior and
found out that culture substantially affects consumer buying behavior at all its levels be it
ethnicity or personal level. The study outcomes also demonstrated that culture affects both
individual and corporate behavior towards a product. According to Nayeem (2012) culture is
so powerful because an individual would like to conform to it when seeking approval, status,
and belonging. De Mooij (2010) observes that there exist essential cultural differences across
the globe and therefore it’s fatal for marketers to assume of cultural uniformity while making
marketing strategies.
2.3.2 Social factors
According to Kotler (2012), social factors that affect consumer buying behavior can be
grouped into three: family, reference group and social class. Engels (2010) defines family as
a social group that is made up of a minimum of two individuals that reside together due to
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