A MAJOR PROJECT REPORT

ON

“CONSUMER’S ONLINE PUTRCHASE INTENTION

IN COSMETIC PRODUCTS”
Submitted in the partial fulfillment for the award of degree
Of
Bachelor of Business Administration
(2019-2022)

Submitted by: Project Guide by: Name of student: Kanishka kohli Amarpreet

Kaur Enrolment No.:03990201719

Sri Guru Tegh Bahadur Institute of

Management & Information Technology

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

1
 DECLARATION

I, Kanishka kohli, Enroll No.: 03990201719, hereby declare that the project
work entitled “Consumer’s online purchase intention in cosmetic product”.
submitted to Guru Go bind Singh Indraprastha University is a record of an
original work done by me under the guidance of Mrs. Amarpreet Kaur.

Place:
Date: ………….……………………….

(Signature of the Scholar)

Name of scholar: Kanishka Kohli
Enrolment number: 3990201719

2
 CERTIFICATE

This is to certify that I, Kanishka Kohli, enroll number 3990201719 BBA,

student of Sri Guru Tegh Bahadur Institute of Management & Information
Technology has done project work “Consumer’s online purchase intention in
cosmetic products”, under the guidance of Mrs. Amarpreet Kaur.

PLACE: DELHI
Date:
…………………………
Signature Of Guide
Amarpreet Kaur

…………………..
Signature of Scholar
Kanishka kohli
 3
ACKNOWLEDGEMENT

With Profound sense of gratitude & regard, I express my sincere thanks to my

guide &mentor Mrs. Amarpreet Kaur for her valuable guidance & the
confidence she installed in me, that helped me in successful completion of this
Project report. Without her help, this project would have been a distant affair.
Her thorough understanding of the subject & the professional guidance is
indeed of immense help to me.

Place:
Date: ………….……………………….

(Signature of the Scholar)

Name of scholar: Kanishka Kohli
Enrolment number: 3990201719
 4
TABLE OF CONTENT
Serial no. Topic Page No.
1 Declaration 2
2 Certificate 3
3 Acknowledgement 4
4 Executive Summary 6-7
5 Chapter 1: Introduction 8-18
6 Chapter 2: Literature Review 19-24
7 Chapter 3: Research Methodology 25-28
● Objectives
● Type of research
● Sample size
● Type of sampling
● Sample area
● Sample unit
 8 Chapter 4: Data analysis and 29-41
Interpretation
9 Chapter5: Conclusion and findings 42-44

10 Recommendations 45

11 Bibliography 46

12 Annexure 47-50

5
EXECUTIVE SUMMARY
Internet and Information technology have made tremendous contributions for
business transformation witnessed nowadays all over the world. This has given
birth to E commerce which encompasses several pre-purchase and post-purchase
activities leading to exchange of products or service or information over
electronic systems such as the internet and the other Telecommunication
networks. Analyzing the competitive advantage of E-Commerce it is observed
that E-Commerce enables simpler, faster and efficient business transactions.
For developing country like India, E-Commerce offer considerable opportunity
for growth. E-commerce leads to a boon for the current economic downturn.

The project will first study the perception of customers towards internet
marketing, also determining the factors which influence the consumer to
purchase goods and service. The second half of the project will depict the
attributes of online shopping influencing the purchase decision by the
respondent. It will also determine the issues regarding the online shopping
which includes the various limitations of the project.

The third part of the project determines the purchase decision with respect to
cosmetics. It will determine the place preference of cosmetic shopping with
respect to price, quality, variety, proximity and offers/ discounts.

Internet is changing the way consumers shop and buy goods and services, and
has rapidly evolved into a global phenomenon. Many companies have started
using the Internet with the aim of cutting marketing costs, thereby reducing the
price of their products and services in order to stay ahead in highly competitive
markets.

6
Companies also use the Internet to convey communicates and disseminate
information, to sell the product, to take feedback and also to conduct satisfaction
surveys with customers.
Customers use the Internet not only to buy the product online, but also to
compare prices, product features and after sale service facilities the will receive
if they purchase the product from a particular store. Many experts are optimistic
about the prospect of online business.
7
 CHAPTER –I:
INTRODUCTIO
N

8
In the present day and age, people are becoming self-aware. A part of this
process is to take care of one’s own body. Taking care of the body is not just
restarted to healthy eating and drinking water, but at the same time, people are
now taking extra caution while deciding what their body should come in contact
with. The usage of cosmetics has prevailed since day in age, but as the
consumers become more advanced, the products become more advanced.
People want to live healthy, and this concept of life now not only includes a
vegan diet, or exercising, but it also includes what choices people make when
they purchase cosmetics that they use on themselves.

COSMETICS
Cosmetics are either substances or products that can used to enhance the
appearance of one’s face or add fragrance and texture to the body. Most
cosmetics are designed for application to the face, hair or body.

They are made of chemical compounds, a lot of them produced chemically and
some taken from natural resources. Different types of organic and inorganic
compounds are used in the manufacturing of cosmetics. The most common type
of organic substances used are modified natural oils and fats, along with a
variety of petrochemical agents. Inorganic compounds include processed
minerals, such as, iron oxides, talc, zinc and zinc oxide. The cosmetic industry
is comprised by a limited number of multinational corporations.

9
Most of them came into being in the early 20th century. The distribution and sale
of cosmetics, however, spread among an array of different businesses. The
worldwide cosmetics industry generates approximately US $ 170 Billion worth
of annual turnover .

Europe being the leading market, responsible for about 71 US $. The industry is
expected to generate about 429.8 US $ by the year 2022, with an expected
CAGR of 4.3%. Skin, hair and sun care, deodorants, shampoos and available
and used by individuals. Retails stores, like, supermarkets, brand outlets, and
specialty stores for integral parts of the distribution channels. Online channels
are now gaining popularity among consumers.

Due to the increase in disposable income in the past couple of years, especially
the previous decade, there is a rise in demand of skin and sun care products.
Along with raise in income, change in global economies, change in lifestyles,
rising demands of skin care and sun care products is also influencing the
demand of these products.
The change in climatic conditions every few years, especially due to global
warming has also led to an increase in demands of cosmetics. The India
cosmetic industry is now growing at a CAGR of 7.5% between 2014 and 2016.
Just like for the rest of the world, this increase is due to increased purchasing
power and increasing consciousness about one’s wellbeing and health.
The awareness is rising amongst the Indian audiences because of the traditional
media and also because of online platforms. The flourishing fashion and the film
industry are also increasing awareness amongst masses, these platforms have
helped people look at beauty in a different way.

10
People now think that it is important to look good along with taking care of the
body in terms of a healthy living. According to the Confederation of Indian
Industries (CII), the total industry estimates to about US$950 million. It also
projects a growth of about 20% per annum in different segments of the industry
(toiletries, fragrances etc).
Among the various categories of cosmetics, the fastest growing in India is the
color cosmetics that accounts for about 10% of the total amount. Costs of
importing products is much higher as compared to producing the products
within the country.
The tariff on import of related products is about 39.2%.

ONLINE SHOPPING
Online shopping includes an activity of action of purchasing products or
services using the internet. It requires the user to go online, then to a seller’s
website, choosing something of choice and need and placing the order for its
delivery. The payment is either made online using a debit or credit card, or there
is also an option for paying upon delivery. It eliminates the need of going to the
retail store physically. Indian cosmetic industry is expected to grow at a fast
rate. Consciousness among both men and women will help this growth.

The companies have also realized the potential of the rural markets and have
started expanding to these markets. This new area of expansion will also help the
companies grow base. In traditional marketing and purchasing, discounts and
advertisements have seen to have great relevance when it comes to influencing
purchase behavior. A lot of times, higher discounts and repeated advertising is
seen to increase purchase action.

11
Every customer is price sensitive and responsive to lower prices. In an Indian
market, where price plays the most important role, it is seen that lower prices are
often resulting in increased purchase behavior. The paper is aimed to study the
impact of discounts, pricing and advertising has on purchase behavior of
consumers when it comes to shopping of cosmetics online.
Particularly online shopping has been chose because of the increase in online
shoppers and also to understand with something like cosmetics which is usually
tried and tested at the shops before purchase, with the elimination of this option,
how would most customers respond purchasing of cosmetics online.

Shopping enjoyment
Online shopping enjoyment is the perceived pleasure originated from a website
experience, the degree to which the activity of using a website is perceived by
the consumers to be enjoyable. Consumers that enjoy shopping attain pleasure
from shopping and spending time browsing for products.

The feeling of enjoyment felt while visiting a website can increase the online
purchase intention among consumers by contributing to an enjoyable shopping
experience, hence it is of great importance for companies operating on the web
to recognize the impact the enjoyment of the website has.

The perception of an online store has a direct effect on consumers shopping

enjoyment that in turn is enhancing consumers purchase intentions. In order to
attract the consumers that value shopping enjoyment companies should add
entertainment features to their website, such as providing interactive networking

12
communities for customers by doing so companies that could encourage the
consumers to purchase online .
Some products requires a more in-depth description and therefore it is suggested
that 3D virtual models could be used, which is a more advanced technology, by
experience that kind of technology on a website that might lead to a higher level
of shopping enjoyment among the consumers which then will enhance the
consumers purchase intentions.

Perceived risk

The perceived risk online is explained as consumers’ beliefs about possible

doubtful negative consequences from online transactions . Consumers generally
create a perception of the level of risk with an ecommerce business based on the
information communicated on the web site regarding the efforts of safeguarding
the customers’ personal information and the security in the transactions

Advertisement and factors influencing:

Advertisement is an attempt at creativity which influences the consumer’s
motive to buy a particular product and change or make the perception of the
product in the mind of the consumers. Advertisement appeal act as a supplier to
arouse the psychological motive of the consumer for buying.

Advertisement involves rational and emotional appeals. In rational appeals the

product can be emphasized mainly on its benefits and the problems which it can
solve while on the other hand emotional appeal meet the consumer’s
psychological, emotional and social requirements. Thus if we say that

13
advertisement is like a magic than it will not be false because advertisement
actually changes the needs and wants of the people and sometimes it creates the
need among the people. People are highly affected by the advertisements and
organizations are trying to target the masses of the people. Organizations are
using above the line and below the line techniques of the advertisement which
fit best with their products.

Researchers have found that media advertisement are most popular

advertisements and people like television ads, so it is a suitable medium to
advertise products like cosmetics and FMCG. A research conducted in India
found that adolescents are highly attracted towards the TV commercial. Along
with that teen girls also influenced by the TV commercials and they tend to buy
the products which they saw in commercials. So it gives us idea that mass media
has the great impact on the advertisements. Organizations are moving towards
the creative content which attracts the teenage girls as well as boys to buy the
products.

With the modern era there has been seen a remarkable boom in technology, with
this technology advertisers now considering the number of mass media channels
and means of communications which provide them the easy and fast access to
the consumers. Other side of this technology advancement is that customers are
now having plenty of information and they can get the thing which best suits to
them. So it becomes very difficult for the advertiser to build the brand
awareness and condition the mind of the customers to make final purchase.

14
Consumer attitude and behaviors
As mentioned earlier, consumer buying pattern is directly evolved from the
consumer behavior and its attitude. Many things combine to build up the
behavior of any individual. The first thing which influences the consumer
behavior and shapes it is his culture. Culture builds the strong perceptions of the
products in the mind of the customer. These perceptions are pinched in their
mind because of their culture, life styles and surroundings. Also advertisements
have very important role in shaping the consumer behavior.

Advertisements are the source of motivation which forces them to buy a

particular product. Advertisements are also a source of building trust. Consumer
is induced significantly if he is looking for the quality and prices of the products.
Purchase attitude can also be build up by product evaluation and brand
recognition.

Consumers in all over the world are attracted towards the brand and products
which are emotionally attached with their behaviors. Studies found that
emotional attachments put a huge influence on the customers and their buying
behavior as people tend to associate themselves with the brand.

Domestic Cosmetic Industry

Domestic market of India has been growing rigorously over the couple of
decades. The range of the cosmetics and beauty products are widening with a
good pace. Some local companies start manufacturing the cosmetic product to
fulfill the domestic as well as international need. This industry is growing and
have potential due to two reasons, first the effective cost cut and cheap available

15
in the India market and second is the increasing purchasing power of the people
of the country.

The demand of the cosmetic products is increasing due to advance media and
massive advertisements on the media. People start considering these products as
essential of the life. But due to all of these facts the total spending of the India’s
individual is very less as compared to the overall average spending per person in
world. Industry has much potential in it and can contribute much in the economy
of country, however in present time it is highly fragmented and concentrated in
big cities

.Consumer buying behavior of Cosmetic products:

According to the surveys conducted, this market is highly competitive in nature

and mainly comprises on the female with the males as par with them. Consumer
is considered as a king of market and marketers are focusing on the different
factors to attract more and more customers.

These factors include the buying habits, preferences, taste, like and dislikes of
consumers and accordingly they need to revise its policies and marketing mix.
As we see the buying behavior of consumers of this market it is obvious that
people are highly quality conscious. People are highly associated with the brand
due to quality and results of the specific brand.

They are attached emotionally with the brands and they can wait for the product
during the non-availability of the product. Although people are becoming brand
conscious but the actual brand decision is in their hands

16
Strategic innovation in cosmetic industry
Practitioners and strategists think that strategic innovation is an inclusive term
which involves the different innovation and creativity like new products and
services.

The companies are expanding due to saturation of the local markets and these
companies are. Several strategic innovation must me take into account for these
kind of expansions. Strategic innovation involves four things that are new
market creation, product value addition, competitive disruption and service
value addition .

Cosmetic industry is focusing in these four dimensions. Cosmetics are not

essential in the life of human beings yet they have to create their market and
expand their circle. So they have to focus on these things. They can attract the
customers by providing the best services and assuring the quality. Marketers in
the cosmetic industry are continuously finding ways to bring new and
innovative products for their customers. Along with this they are also focusing
on making the most attractive and appealing advertisements, so that they can
attract more and more customers

Site design quality

As the online market expands, the design of websites becomes a critical factor
of success . The website is the main connection between the company and the
consumers, therefore the design of the website becomes as essential as a store’s
layout .

17
There are several elements of a website design 17 quality that consumers
generally value, for example, attractiveness, content usefulness and ease of
navigation . Customers purchase intentions on a website appears to be
influenced by his or hers perception of the quality of the website, therefore
companies should create websites with attractive design and useful content, in
order to attract more customers to their businesses .
Attractiveness of site design
An upgrading of the design and appearance of a website will likely lead to an
enhancement of consumers online purchase intentions . While designing a
website, a lot of focus should be put into the overall graphical look and the
appearance of the website, which includes colors, images and shapes .

These features are of importance since it will convey certain meaning to the
consumers. Furthermore, it is essential that the images that are used on a website
is of high quality and if it is a website offering products it is advantageous to
include several product shots and from multiple angels .

The influence and atmosphere of a website has a significant impact on the

consumers’ attitudes and level of emotional arousal, subsequently, this could
result in higher online purchase intention among the consumers.

The website design tends to affect consumers behavior through attitude towards
the website and company, meanwhile the atmosphere generally influence
consumers behavior through emotional and more specifically states that
businesses cooperating online could use bright and lively colors to create a
happy atmosphere on their website since that could increase the online purchase
intention among the consumers.
 18

Chapter 2: LITERATURE
REVIEW

19
E-COMMERCE
E-commerce is an evolving market; the number of retailers and the growth in
online shopping has built up a competitive market. It is therefore essential for
companies to continuously develop their online activity to remain and attract
new customers.
To do so, companies need to create value for the customers and meet their
demands: therefore it is of great importance for companies to understand
consumers’ buying behavior, and moreover investigate in which factors are
related to the consumers’ online purchase intention.

(Britton) There is a lot of existing research on the kind of effect advertising

relating to fashion and beauty have on women. The impact on self-esteem, self
confidence have been studied previously. But, there is very little research how
cosmetics influence women and manipulate their appearances. The research
used the survey method for data collection, the survey questioned usage, habits
and beliefs of students (particularly female) towards makeup. The results show
that the cosmetic industry has a significant influence on college women.
College women form a major part of the cosmetic industry. However, they don’t
change their makeup habits and routines very often. There was no correlation
between self-esteem and an individual’s particular usage, habits and beliefs.
Though, there was a relationship between the levels of self-monitoring and an
individual’s cosmetic habits

(DeBelen), There are various makeup trends in the society that are coming up.

These trends are also changing rapidly, with new styles, aspirations and ideas.
With the major change that are showing in the industry, there is a psychology
behind it. The research is conducted to understand the reason behind the rapid

20
changes, impact of consumers and advertisements on these changes.
Advertisements do not have a great influence over today’s consumer. There are
various other factors that influence a consumer like online reviews, blogs,
testimonials and video reviews. Which shows that psychological influences are
extremely impactful.

(Silverio), There have been certain grooming activities and habits that everyone
is expected to follow, from brushing one’s teeth to flossing etc. People who
don’t follow these are frowned and looked down upon. In the recent years,
along with these activities, wearing makeup has also become an important
process. How long a woman takes to wear makeup differs from one to other.
The study helps in understanding whether a woman values herself more or less
when she is wearing makeup. The study used the survey method to collect data
and mainly filled in by students. The study found that women feel more in place
when they have makeup on. They had a sense of content when they had makeup
on. Most women are unsure about how they feel when they don’t have makeup
on. But even so, having no makeup on didn’t make them feel unattractive.
Lastly, most women felt that they felt uncomfortable wearing more than usual
amount of makeup.

(Alex L. Jones), The study tries to evaluate the impact applying makeup can
having on identity. Most variation in attractiveness comes between individuals
due to the difference I identities. The study includes understanding how
cosmetic and identity affect attractiveness by studying professionally applied
makeup. Study 1, 33 YouTube models were rated before and after they were
made to wear professional makeup. Study 2 included super models who went
through the same process. The study concludes by establishing that
professionally applied cosmetics have a larger effect than self-applied makeup.
But, the effect of

21
individual differences in facial appearances is way more important in
perceptions of attractiveness.

(Joseph) This particular study was conducted to understand the perception and
awareness among college students towards online shopping. The level of
awareness, factors that affect online shopping along with challenges encountered
while shopping online are taken into account for the study. The data was
collected from 60 students studying in college. Most of students have a positive
perception
towards online shopping. Most of them agree that shopping online saves time,
allows purchase at any time, provides access to information, and better security.
The pull factors that affect online shopping are ease, security in payment,
product variety, promotion, website reputation etc. There are also a bunch of
secondary factors that affect online shopping, namely, money, delivery time and
fee, return policy etc

(Mohamed, Hussein, Zamzuri, & Haghshenas) The study was conducted in

give information about an individual’s online shopping continuance intention.
The research has used two theories, Expectation Confirmation Theory and
Technology Acceptance Model. For research context, an online marketplace
which connects buyers and sellers in the country of Malaysia has been used. To
collect data, convenience approach was used. According to the results of the
study, satisfaction contributes to individual online shopping continuance
intention. Along with satisfaction, the usefulness of a website as perceived by
the user also contributes to continuance intention. The research helps increase
the understanding of role of satisfaction, perceived use of websites towards
continuance intention.
 22
(Jung Eun Lee) The study was conducted to inspect the effects of high vs low
price discounts by combining existing literature on price discounts, perceived
risks and purchase intentions for products sold online. Effect of price discounts
on perceived risks, along with the following effect of these risk perceptions on
online purchase intentions. The study used an experimental design. The results
reflected how the discount size helps increase the customer’s perceived risks and
these regulate the bond between price discount and purchase intentions. The
study helps provide a better consideration of customer’s risk perceptions for
online price discounts, which allows retailers to decide discounts in order to
attract customers.

(Rakesh & Khare) This research evaluates the influence of deal proneness on
Indian consumer’s shopping behavior online. Online shopping attracts heavy
investment from retailers. Shopping websites available on the online platform
offer a lot of discounts and promotions to attract customers to shop online.
However, online retailing is in the early stages of development and growth in
India. The results of the study indicate that Indian customers are not influenced
by offers, deal or other promotions offered online by retailers. Promotions may
not be viewed as an important attribute while making purchases online for
products and services in India.

(Dr. G. K. Deshmukh) For customers, the experience involved is very different

from shopping online as compared to the traditional shopping. It is possible to
touch and feel the products before the purchase in the traditional mode of
shopping, but online shopping allows only for visual assessment. The objective
of this paper is to understand online shopping behavior of consumers in the
Indian continent. The research includes an empirical study of around 100 online
consumers to recognize their online shopping behavior by making use of the
23
Structural Equation Modeling. The main finding of this research portrays the
demographics of customers, variety of products, sellers, and characteristics of
websites have a positive influence on the intention and the behavior of the
customers in India.

(Deepjyoti Choudhury) Online shopping has become one of the latest trends
in the dynamic of shopping. People in their youth have formed the majority of
online shoppers. The study is administered to understand the attitude of the
youth towards shopping online. The objective is to find out whether there is any
impact of major five factors; internet literacy, educational qualification, gender,
website usability and online product price on online shopping.
 24

Chapter 3: Research
Methodology
 25
RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary purpose for applied research is discovering,
interpreting, and development of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our world and the
universe. Research can use the scientific method, but need not do so.

Scientific research relies on the application of the scientific method, a

harnessing of curiosity. This research provides scientific information and
theories for the explanation of the nature and the properties of the world around
us. It makes practical applications possible. Historical research is embodied in
the historical method. Scientific research can be subdivided into different
classifications according to their academic and application disciplines.

OBJECTIVES
• To determine whether advertising encourages people to shop online for
cosmetics.
• To determine whether different prices online encourage people to shop
online for cosmetics.
• To determine whether discounts online encourage people to shop for
cosmetics online.
• To study how different demographics are affected by pricing, discounts and
advertisements while purchasing cosmetics online
• To explain the relationship between trust, perceived risk, shopping
enjoyment, site design quality and online purchase intention
Scope of the Study

26
The study will help gain perspective on the kind of influence advertising,
discounts and pricing have on the consumer’s mind to promote online shopping
of cosmetics online. The study will particularly point out the factors individually
affect buying decisions and explain the extent of influence. There are no
previous researches that are particularly studying shopping of cosmetics online
and how certain factors influence purchase behaviour.

Dimensions of Study
1. Discounts Online- The study tries to understand whether or not an average
online consumer notices the available discounts on online platforms that are
available for cosmetics. Discounts often act as incentives for most buyers to
purchase certain products. The study wishes to understand whether this tactic is
successful when it comes to the purchase of cosmetics online.

2. Prices- Another aspect that study is aimed at is understanding whether people

notice any price difference between online portals and brick mortar stores. And
if consumers notice price differences (either higher or lower) then are they
motivated or demotivated to make purchases of cosmetics online.

3. Advertising- Advertising is very important in increasing product and brand

awareness. Most online portals are heavily investing and relying on different
mediums of advertising in order to increase sales and awareness. The study is
aimed at understanding how influential advertising when it comes to brand
awareness amongst in the consumers.
4. Online purchase- The base idea of the study is buying online. Whether
consumers are willing to switch or are already buying using online portals is
another important aspect of the study

27
SAMPLE SIZE

Size of Sample: The sample size selected for the research is 60 in the area of
Delhi
Parameters of Interests: The major parameter of interest is the subgroup of
people who are working professional as well as students and web savvy having
an experience in online shopping.
The two other subsidiary parameters of interest are:
● The respondent should also have an experience in online shopping.
 ● The female respondent who have an online shopping experience.

TYPE OF SAMPLING
Random sampling: is the purest form of probability sampling. Each
member of the population has an equal and known chance of being
selected. When there are very large populations, it is often difficult or
impossible to identify every member of the population, so the pool of
available subjects becomes biased

SAMPLE UNIT
People buying online products
LIMITATION OF THE STUDY
● The study was done for a short period of time only
● The research was limited to some area of Delhi only. So, could not cover
the whole population
● The information given by the respondents can be biased.
28

CHAPTER –4:DATA
ANALYSIS AND
INTERPRETATION
 29
DATA ANALYSIS AND INTERPRETATION

Figure 1: Depicting
● 70 % of the people have purchased cosmetics products online.
● 30% of the have not purchased cosmetic products online.

30

Figure 2: Depicting

● 34.5% have gained information about new cosmetic products

● 43.1% have purchased cosmetic products online
● 22.4% don’t visit cosmetic online stores

31

Figure 3: Depicting
● 26.7% think it is convenient to buy online.
● 26.7% compares the price from different online stores.
● 21.7% think they can get many variety online.
● 25% buy the products which are not tested on animals.

32

Figure 4: Depicting
● 36.7% of people buy from sephora.
● 18.3% of people buy from nykaa
● 16.7% of people buy from purple.
● 28.3% of people buy from other websites.

33
 Figure 5: Depicting
● 42.4% read the online review before buying
● 33.9% go to the shop to test first
● 23.7% ask his/her friends before buying.

34

Figure 6: Depicting
● 30% spend less than 3000.
● 40% spends 4000-6000 in one time.
● 30% spends more than 10000 for buying cosmetics at one time.

35
Figure 7: Depicting
● 31.7% are unsatisfied with return policy.
● 13.3% are unsatisfied with shipping error.
● 26.7% are unsatisfied with delivery fee.
● 21.7% got difficulty to communicate with the buyer.
● 6.6% are unsatisfied with other problems.

36
Figure 8 Depicting

● 44.1% had difficulty in judging the quality of makeup online. ●

55.9% didn’t had difficulty in judging the quality of makeup online.
 37

Figure 9: Depicting

● 31.7% are willing to try different makeup products online ● 33.3%

are slightly willing to try different makeup products online. ● 35%
are not at all willing to try different makeup products online.

38

Figure 11: Depicting

● 30.5% get motivated on purchasing makeup products online the basis of discounts ●
45.8% get motivated on purchasing makeup products online the basis of latest trends. ●
23.7% get motivated on purchasing makeup products online on the basis of
advertisements

39

Figure 12: Depicting

● 53.3% feel confident using makeup
● 30% feel better using makeup
● 16.7% feel happy using makeup

40

Figure 13: Depicting

● 50% are satisfied with the quality of products

● 25% are neutral with the quality of products
● 25% are dissatisfied with quality of products

41

CHAPTER-5
FINDINGS
AND
CONCLUSION
 42
CONCLUSION AND FINDINGS

● With the increase in choice of different platforms available for purchasing

online products it becomes necessary to study the frequency of intention
of purchasing the products in online this study can provide valuable
insight to online selling.
● Further willingness to spend has a positive impact on frequency of
purchasing online exclusive products
● Advertisements encourage people to shop online, we look at the frequency
of exposure of advertisements as well as the motivation to shop because
of advertisements.
● Respondents also have a moderate positive correlation between the
 frequency of advertisement and frequency of purchase. It was also noticed
that people who come across advertisements more than frequently are less
likely to purchase. This shows that an average customer who comes
across an advertisement time and again, mostly gets annoyed by the
company or brand, to an extent wherein he decides to not purchase the
product because of the fact that he has seen the advertisements way too
many times.
● There is a significant impact of advertisements on the purchasing behavior
of customers with nearly double the motivation and likeliness of buying a
product if the respondents were motivated by the advertisements. Finally,
motivation caused by the frequency of advertisements peaks near the
middle and actually diminishes when the frequency goes too high. While
analyzing how prices encourage purchase behavior we look at discounts,
difference, and an absolute value of price.
● Those respondents that believed that discounts motivated them were three
times as likely to be favorable towards purchasing cosmetics. We also see

43
people who believe online portals had a lower price were 33% more likely
to purchase products online.
● Motivation caused by discounts where correlated with the motivation
caused by advertisements presents a positive low correlation which may
point to different respondents being motivated by different mediums.
● We also see purchase behavior increase by three-fold and is statistically
different for those people who are motivated by advertisements when
compared to those who are not.
● The two social demographics that we have considered while analyzing the
purchase behavior is age and gender. Looking at the purchasing behavior
 we see that age groups of 18 to 25 and 25 to 35 are the most active
consumer with a sharp dip after 35 years. We also see women are nearly
two times as likely to like purchasing cosmetics as compared to men who
also have a higher deviation for the same.
● Motivation by advertisements is also the highest in the younger age
segments of below 15 and 15-18 years and in the older age groups of 35. ●
Hence, we can conclude that price does have a significant influence on the
purchase of cosmetics online as well as discounts motivating certain age and
gender demographics. We also see, that advertisements do have a significant
influence on the purchase behaviors but a higher frequency of
advertisements is detrimental to the original cause, an observation that may
have been counter intuitive.

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RECOMMENDATIONS
• The study on consumer behavior towards purchase of cosmetics
online and the kind of impact advertising, discounts and pricing has
on the behavior will give a better understanding of how these
factors influence a consumer.
• The scope of online shopping is wide, and people are becoming more
aware by the day, but awareness about purchasing cosmetics online
is still lesser as compared to other products.
• A lot of people are still unsure and an unaware about the possibility
 of buying cosmetics online.
• Companies that are selling cosmetics online can work on their
awareness and advertising campaigns as a major part of the masses
remain untapped. The study also indicates that there is a lack of
trust from the side of the buyers pertaining to the purchase of such
products as quality is utmost important while purchasing cosmetics.
• Companies also need to work on the trust factor to promote more

selling. There is a lot of potential for both the sellers and the buyers
involved given that sellers try to increase awareness and establish
trust.

45
BIBLIOGRAPHY

• Aaker, D., Kumar, V., Day., G., Leone, R. (2011). Marketing research: an
applied approach. 10th ed. Hoboken: John Wiley & Sons. 198-440 •

Understanding Attitudes and Predicting Social Behaviour. New Jersey •A

’An empirical test of the link between web site quality and forward
enterprise integration with web consumers', Business Process Management
Journal,
• , Journal Of Marketing Theory & Practice, pp. 285-293, Business Source
Premier

• Marketing an introduction. 11th edition. England: Pearson Education

Limited.

• https://en.wikipedia.org/wiki/Cosmetic_industry
• https://www.alliedmarketresearch.com/cosmetics-market •
http://scopeonlineshopping.blogspot.com/2009/08/scope-of-online
shopping.html

ANNEXURE

46
QUESTIONNAIRE: -

This questionnaire survey is purely for academic purpose. Any

information collected through this survey is confidential and would not
be shared with anyone other than the people involved in this

Name: - …………………………....
Age: - ………
Designation: - …………………….
Department: - ………………………
Qualification: - …………………….
Q.1 Have you ever purchased a cosmetic products online?
● Yes
● No

Q.2 In what purpose do you visit cosmetic online store?

● Gain information about the new products
● Purchase cosmetic products
● I don’t visit online cosmetic stores

Q.3 What are the factors that make you shop online?
● Convenience
● Price comparable
● Variety
● No testing on animals

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Q.4 What are the websites you used to shop most?
● Sephora
● Nykaa
● Purple
● Others

Q.5 How you evaluate makeup products before making any online purchase
? ● Read the online review
● Go to the shop to test first
 ● Ask your friend

Q.6 How much money do you spend over your cosmetic online shopping in one
time ?
● Less than 3000
● 4000-6000
● More than 10000

Q.7 What are the things that make you unsatisfied most from your past online
shopping?
● Return policy
● Shipping error
● Delivery fee
● Difficult to communicate with buyer
● Others

Q.8 Did you had difficulty in judging the quality of makeup online?

48
● Yes
● No

Q.9 How are you willing to try different makeup

products? ● Extremely willing
● Slightly willing
● Not at all

Q.10 What do you look first when you buy a makeup

 product? ● Packaging
● Brand
● Features

Q.11 What motivates you in purchasing process in terms of

cosmetics? ● Discounts
● Latest trends
● Advertisements

Q.12 Using makeup products make you feel?

● Confident
● Better
● Happy

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Q.13 Are you satisfied with the quality of products that you have purchased
online?
● Satisfied
● Neutral
● Dissatisfied
50