Consumer Behavior and Marketing Psychology Report: L'Oreal Analysis

This report critically analyzes consumer buying behavior in relation to L'Oreal shampoo, focusing on the marketing communication mix, including advertising, personal selling, and events. It examines the effectiveness of these strategies, particularly advertising, and highlights potential misalignments between communication strategies and consumer perceptions. The report suggests strategic recommendations, such as leveraging social networking and digital marketing, to improve L'Oreal's marketing efforts. It also evaluates the impact of various marketing elements on consumer attitudes, cultural influences, and the decision-making process, offering insights into how L'Oreal can enhance its brand image and sales. The report concludes with a discussion of the role of digital marketing and the importance of adapting strategies based on consumer feedback and market analysis, emphasizing the need for a cohesive and effective marketing approach.

Running head: CONSUMER BUYING BEHAVIOR AND MARKETING PSYCHOLOGY
Consumer buying behavior and marketing psychology

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 2
Executive summary
The main aim of this report is to critically analyze consumer buying behavior with respect to
L’Oreal shampoo. It is found that the communication mix is used for promoting the products of
L’Oreal such as advertising, personal selling, publicity, public relations, interactive marketing,
and events. It is illustrated that L’Oreal Company uses a direct marketing communication
channel due to some benefits such as an easy, convenient, and private mode for buying products
and services. It is found that the communication mix helps in lowering cost, increasing
efficiencies as well as, competencies for arriving at the target market. It also positively affected
brand image and sales between sponsor target markets. It is addressed that any time, a consumer
is intended to offer feedback and demonstrating their personal choices, and providing data that
marketers can practice for guiding their communication hard work towards L’Oreal Shampoo.
It is found that events and experiences help in attaining the marketing and company objectives
towards L’Oreal Shampoo.
It is also beneficial for influencing the consumers’ attitudes, culture, and personal buying
decision-making processes of consumers. It is exhibited that there are different benefits of using
this communication channel such as brand equity, media exposure, industrial labor relations, and
demonstrating new challenges. It is addressed that marketing managers of L’Oreal should decide
types of sales promotion as it would lead to influence culture, consumer learning processes, and
consumer’s attitude. It is evaluated that advertising would be beneficial for target personal
buying decision-making processes, group influences, and social class towards L’Oreal Shampoo.
It is also founded that digital marketing networks, frequency card programs, and SEO should be
considered for improving the marketing of L’Oreal.

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 3
Table of Contents
Executive summary.....................................................................................................................................2
Overview of the product or service and its market performance..................................................................4
Marketing communication mix....................................................................................................................4
Three strategic recommendations................................................................................................................9
References.................................................................................................................................................12

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 4
Overview of the product or service and its market performance
L’Oreal Paris is a brand of L'Oréal USA, Inc. is a total beauty care firm that integrates advanced
technology with superior quality for ultimate in luxury beauty at bulk. L'Oréal Paris is an
international beauty brand that is renowned products. The tagline of this product is ‘because I am
worth it’. The aspect behind the advertising campaign is superior preferences such as hair color
launch in the year of 1973. In current times, it has demonstrated the essence related to the
L’Oreal Paris brand as a whole that is related to supporting each woman (L'Oréal Paris, 2019).
It embraces her unique beauty when reinforcing innate sense regarding self-worth. The L’Oreal
Paris brand involves five major beauty categories such as hair care, hair color, skincare,
cosmetics, and hairstyle. As, it is the biggest brand on the international level, L’Oreal Paris has
the unparalleled commitment for research and innovation, and technology as well as, offering
groundbreaking. It also delivers high-quality products for men, women, as well as, children for
all ages as well as, ethnicities. The sales of L’Oreal are increasing as compared to last year.
Furthermore, a consumer is demanding more to this product due to its unique features (L'Oréal
Paris, 2019).
Marketing communication mix
Advertising
L’Oreal Shampoo currently uses advertisement that entails someone who usually an organization
of some sort and paying for the right to demonstrate a message of their own choosing at a
specific space at a particular time. It is a form of mass media with the intention of persuasion of
L’Oreal Shampoo. In addition to this, advertising is the transmission of paid messages regarding
L’Oreal Shampoo via mass media that worth over $12 billion/year in Australia. The main benefit
of using this communication channel is to reach a large number of people at an associatively low

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 5
cost per person. The key limitation of using this strategy is that it is complex to measure its
effectiveness (Smedescu, et. al., 2016).
Sales promotion
Sales promotion demonstrates the marketing communication practices where short-term
incentive encourages the consumers for buying L’Oreal Shampoo without delay wither through
lowering rate or adding the value. In addition to this, marketing managers should decide sales
promotion techniques for promoting products and services. These are a rebate, coupons, frequent
flyer program, sweepstake, sampling, loyalty marketing initiatives, and point of purchase display
(Bacik, et. al., 2018).
Events and experiences
This communication channel is linked with L’Oreal Shampoo and activity for exploiting the
potential commercial developed through association. Events are illustrated as a business
association between the provider of funds, resources, and individuals, and an organization that
provides links and right in return could be practiced for commercial benefits. It is also beneficial
for developing a feel-good factor between consumers. It is a highly flexible approach and could
be tailored. It is also beneficial for broadcasting rights and agency commissions for L’Oreal
Shampoo (Rao and Raju, 2015). This leads to persuading the social class, consumer learning
processes, and group influences.
PR and publicity
Public relations communication has intended for developing and maintaining liaisons between
L’Oreal and its stakeholders. There are significant PR messages that are engaging, timely,
accurate, as well as, in public interest for L’Oreal Shampoo. There are some advantages of using

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 6
PR and publicity in the context of L’Oreal Shampoo such as word of mouth, credibility, combats
unfavorable perceptions, and low cost (Popescu, 2016).
Publicity
Publicity is unpaid exposure in the context of media. Publicity is related to any initiatives related
to L’Oreal Shampoo. It is intended for enhancing, maintaining, and protecting the sales and
image of L’Oreal Shampoo by motivating the intermediaries. These intermediaries are electronic
media, traditional mass media, and individuals who voluntarily pass a message regarding the
company and L’Oreal Shampoo to their customers. It is beneficial for influencing social class,
consumer learning processes, and personal buying decision-making processes (Jackson and
Ahuja, 2016).
Direct marketing
It is an interactive system regarding L’Oreal Shampoo that practices one and more advertising
media for effecting measurable responds and transactions at any place. It is also ample selection
and information availability is a great way for developing long-lasting liaison with consumers.
Through this, L’Oreal targets culture, social class, and consumer learning processes (Ribeiro, et.
al., 2015).
Interactive marketing
Interactive media depends on consumers expressing their choices so that L’Oreal Shampoo
marketers can develop a more feasible marketing message. They can also develop a two-way
dialogue among businesses and their consumers. There are different forms of interactive
marketing such as search engine marketing, blogging, email marketing, offline activation, and
social networking. It aids in influencing the personal buying decision-making processes and
consumers’ attitudes (Kok, J.C., et. al., 2019).

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 7
Personal selling
Personal communication is seeking for influencing consumers to purchase L’Oreal Shampoo. It
could be expensive, high-involvement as well as, industrial products in favor of personal selling.
It could be specifically tailored to persons hence it has high influences as compared to sales
promotions, advertising, and public relation strategies (Sitorus, 2017). This communication
strategy is beneficial for targeting culture, social class, and consumer learning processes towards
L’Oreal Shampoo. There is some limitation of practicing personal selling such as limited reach,
time-consuming, labor-intensive as well as, expensive (Kalla, 2016).
Critically analyze whether or not the communication mix demonstrates a strong alignment
to findings in assessment 1 and 2
From assessment 1 and 2, it was found that L’Oreal shampoo is promoted by celebrities who use
this product and it makes other girls for purchasing the products. The major limitation of
advertising is a misrepresentation of facts about products and services. Advertisers misrepresent
false benefits of products and make tall claims for exciting people in terms of indulging in action
that leads to their benefits but it is opposed to the self-interest of consumers (Valos, et. al., 2016).
It is also illustrated that advertising develops desire as consumers have low buying power. It is
also leading to annoyance. These discontents are very desirable from the perspective of society
specifically when it is affected a large number of individuals. However, it is significant when it
acts as a drive for social transformation (Oladepo and Abimbola, 2015).
It is evaluated that advertising is implemented as an instrument for cheating. Dishonest
companies defraud consumers through misrepresentation of the product via advertising. For
inducing individuals in order to purchase products, L’Oreal creates a false statement with respect
to different virtues regarding products and it undermines public confidence within advertising.

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 8
Consequently, there is a need to consider the advertising code of conduct that regulates
advertising as well as, making sure the commercial sincerity. It is found that these mistakes
could be costly. Since digital advertising is complex, it is not uncommon for L’Oreal businesses
to make mistake (Fill and Turnbull, 2016).
It is found that L’Oreal product is costly hence middle and higher class of individuals can afford
this. It is also addressed that L’Oreal product is highly luxurious for skin, nails, and hair. In
addition to this, consumers who switch the brands for another shampoo because of free sachets
and coupons. Hence, it can be stated that there is a misalignment between communication
strategy and findings obtained through a survey (Marino and Presti, 2016).
It is demonstrated that selecting wrong keywords, target ineffectively, leaving campaign when
L’Oreal thought it was off, and neglecting bidding cap is some factor that does not align the
communication channel with findings. For instance, when L’Oreal runs a campaign on
Facebook, but customers are more likely to act on LinkedIn (Fill and Turnbull, 2016).
Consequently, it leads to a decline the perception of consumers towards L’Oreal shampoo due to
lack of awareness regarding the product. Cost is one of limitation of an advertising program.
There is no assurance that consumer demand would increase and revenues would gain that can
cover the cost of advertising initiatives. Business owners should consider the cost of advertising
as well as, their potential for increasing revenues (Fetscherin, 2015).
It is addressed that advertising of L’Oreal shampoo is not effective that leads the consumers for
moving towards another brand. Internet advertising competition can create expensive ads but it
depends on the type of L’Oreal product. It is all relied on the price of products. For instance, it is
found that L’Oreal product is expensive as compared to other products hence there are chances
for switching the customers towards other products (Oladepo and Abimbola, 2015).

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 9
Demonstrative websites are also playing a fundamental role in influencing consumer buying
behavior. A key limitation of increasing business viability via advertising initiatives is that it
could cause rivalry for taking notice. Competitors can start new locations and can launch their
own advertising campaign for making efforts in order to increase market share. They can also
decline the rates and it can force other companies to perform the same for keeping consumers
(Valos, et. al., 2016).
From assessment 2, it is found that radically advertising has transformed the basis related to
human motivation. When people of earlier generations lived as well as, worked primarily for
bare necessities regarding life, the modern generation works harder for supplying itself the
luxuries and semi-luxuries regarding life (Ribeiro, et. al., 2015).
Three strategic recommendations
Social Networking
L’Oreal shampoo should focus on renowned social networking sites to perform as a marketing
approach besides putting up websites. There are some websites such as Facebook and Twitter
that could be invaluable in terms of evaluating existing products, initiating new products,
providing promotions as well as, increasing sales. In addition to this, YouTube and video
websites could be significant for L’Oreal shampoo in terms of increasing awareness regarding
products and services (Kalla, 2016).
Videos are the significant mode for endorsing the website, storing, and business to business
consumers. But, it is significant for integrating them with other advertising techniques. The
company can write out small script related to a five to eight-minute video. It can also deliver
some free advice that entices individuals for visiting the site (Sitorus, 2017). For instance, the
marketing manager of L’Oreal shampoo can conduct an ideal survey on consumers in order to

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 10
address their needs and wants. It can also create a Youtube.com account as well as, placing the
video in the online publication of business and social networking sites such as Facebook.com.
L’Oreal can also target those consumers that want to influence by labeling the video (Morris and
Kenyon, 2019).
Search Engine Optimization
Search engine optimization is the procedure related to tweaking the website, keywords as well
as, webpage for attaining first-page records in search engines like Yahoo and Google.com.
L’Oréal can find a person who is an expert in SEO in the targeted area due to increasing the
awareness of products and services. It is used for monitoring activities of websites. It could also
support L’Oréal to increase their ranking as compared to their competitors in the online sector
(Valos, et. al., 2016).
It is the best method to enhance web quality sites by making the web user-friendly, faster as
simple to direct. The search engine optimization is an effective structure that is practiced the
whole procedure has a higher number of phases and control set. In the competitive world, SEO
marketing is a vital way as compared to others that could direct to meet the organizational
purpose. This tool could lead to attracting a huge number of consumers on the same web (Fill
and Turnbull, 2016).
Frequency Card Programs
L’Oréal retailers could practice frequency card and loyalty culture to create store traffic as well
as a visit on the frequency. The main aim of this method is to retain them for the long term. This
method will allow the company to give rewards to those consumers who purchase more products
to the organization. This card could retain them for the long-term. For example, L’Oréal could

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 11
provide 250 points on the purchase of a specific amount. It will encourage them to spend more
on products and services (Fetscherin, 2015).

CONSUMER BUYING BEHAVIOUR AND MARKETING PSYCHOLOGY 12
References
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social media and their role in forming customer experience and brand image. Management &
Marketing, 13(3), pp.1108-1118.
Fetscherin, M., 2015. The CEO branding mix. Journal of Business Strategy, 36(6), pp.22-28.
Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences, and
participation. Pearson.
Jackson, G. and Ahuja, V., 2016. Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), pp.170-186.
Kalla, N., 2016. Marketing Communication Mix of Government of Rajasthan for Various
Healthcare and Family Welfare Schemes: A Case Study of Western Rural
Rajasthan. International Journal of Social Sciences and Management, 3(2), pp.135-140.
Kok, J.C., Schreurs, N.M., Cranston, L.M., Corner-Thomas, R.A., Ekanayake, W.E.M.L.J.,
Morris, S.T. and Kenyon, P.R., 2019. BRIEF COMMUNICATION: Comparison of meat quality
characteristics of lambs weaned at eight or 14 weeks of age grazing perennial ryegrass-white
clover pasture or a plantain-clover mix. New Zealand Journal of Animal Science and
Production, 79, pp.159-161.
L'Oréal Paris. 2019. About us. [Online]. Available at: https://www.lorealparisusa.com/about-
loreal-paris/overview.aspx (Accessed: 5 October 2019).
Marino, V. and Presti, L.L., 2016. Social Media Mix in the University Communication Plan: A
Bridge Towards Public Engagement: Structured Abstract. In Rediscovering the Essentiality of
Marketing (pp. 275-281). Springer, Cham.