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Factors Influencing Consumer Perception Regarding Cosmetics Purchase
Factors Influencing Consumer Perception Regarding Cosmetics Purchase
Krisnendu Mahalder
Syed Millatur Rahman
2020
Contribution: The study contributes to literature coherent with consumer behavior and
consumer perception regarding the customers of cosmetics products in Bangladesh. As
the literature has remained unexplored in context of Bangladesh, this paper would be an
insight for local and foreign branded cosmetics regarding how the consumers see the
market and the factors that influence their purchase, preference and loyalty decisions.
Furthermore, through the findings of the study, recommendations can be prescribed for
the local cosmetics manufacturers to strengthen their market share in the future.
II
Acknowledgements
We are truly grateful to our supervisor Dr. Olivia Kang who gave us invaluable support
and regular feedbacks to fine-tune our analysis. We would also like to show our gratitude
towards our examiner Dr. Ehsanul Huda Chowdhury for his constructive feedback.
Furthermore, we are thankful to all the participants who took part in the interviews and
online feedback poll which were vital for this study and enriched our analysis. Without
the help of all the above-mentioned participants, this paper would not have been possible,
and we are greatly indebted to them.
III
Table of Contents
1. INTRODUCTION .................................................................................................. 1
1.1 Background ........................................................................................................... 1
1.2 Overview of the Cosmetic Industry of Bangladesh ........................................... 3
1.3 Problem Identification ......................................................................................... 3
1.4 Aim & Research Questions .................................................................................. 5
1.6 Delimitation ........................................................................................................... 5
1.7 Disposition ............................................................................................................. 6
2. Literature Review ................................................................................................... 7
2.1 Consumer Behavior .............................................................................................. 7
2.2 Consumer-decision making process: .................................................................. 8
2.3 Consumer perception ......................................................................................... 11
2.4 Factors influencing Consumer Perception ....................................................... 12
2.5 Consumers in Bangladesh .................................................................................. 12
2.6 Trend for consumers of Bangladeshi cosmetics ............................................... 13
2.7 Theoretical framework....................................................................................... 14
3. METHODOLOGY ............................................................................................... 16
3.1 Philosophical Stance ........................................................................................... 16
3.1.1 Ontology ....................................................................................................... 16
3.1.2 Epistemology ................................................................................................ 16
3.2 Research Design .................................................................................................. 17
3.3 Unit of Analysis ................................................................................................... 17
3.4 Research Approach ............................................................................................ 18
3.5 Operationalization .............................................................................................. 19
3.6 Selection of Market Players ............................................................................... 20
3.7 Selection of Interview Participants ................................................................... 21
3.8 Interview Process ................................................................................................ 22
3.9 Analysis Method ................................................................................................. 23
3.10 Trustworthiness, Reliability, and Validity ..................................................... 24
3.11 Ethical Consideration ....................................................................................... 25
3.12 Summary of Research Process and Methodology ......................................... 25
3.13 Limitations of the Methodology ...................................................................... 26
4. Empirical Study .................................................................................................... 28
4.1 Empirical evidence from Interviews ................................................................. 28
4.1.1 Country of Origin ........................................................................................ 28
4.1.2 Psychological Attributes of Consumers ..................................................... 29
4.1.3 Place where product is sold......................................................................... 30
4.1.4 External Attributes ...................................................................................... 30
4.2 Empirical evidence from Online Survey .......................................................... 32
4.2.1 Quality .......................................................................................................... 32
4.2.2 Consumers’ own Characteristics ............................................................... 33
4.2.3 External Attributes ...................................................................................... 33
4.3 Summary of the Empirical Findings................................................................. 33
5. ANALYSIS/DISCUSSION .................................................................................. 35
5.1 Country of Origin as a factor of Consumer Perception .................................. 35
5.2 Psychological Attributes as a factor of Consumer Perception ....................... 35
IV
5.3 Place where product is sold as a factor of Consumer Perception .................. 36
5.4 External Attributes as a factor of Consumer Perception ............................... 36
5.5 Quality as a factor of Consumer Perception .................................................... 36
5.6 Consumers’ own Characteristics as a factor of Consumer Perception ......... 37
5.7 New Factor identified from the Findings ......................................................... 37
6. CONCLUSION ..................................................................................................... 42
6.1 Factors Influencing Consumer Perception of Cosmetics Consumers in
Bangladesh ................................................................................................................ 42
6.2 Answer to the Research Question ..................................................................... 42
6.3 Theoretical Contribution ................................................................................... 43
6.4 Managerial Contributions.................................................................................. 43
6.5 Reflections on the Study and Suggestions for Future Research ..................... 44
REFERENCES ............................................................................................................. 46
Appendix ....................................................................................................................... 54
Appendix 1: Questionnaire for interviews ............................................................. 54
Appendix 2: Questions of the Facebook Online survey. ....................................... 54
V
List of Tables
VI
List of Figures
VII
ABBREVIATIONS
VIII
1. INTRODUCTION
This chapter discusses about the general overview of the study. It includes background,
motivation, problem identification, research gap, aim and research questions.
1.1 Background
Consumers make a purchase decision of a product or service based on satisfying their
needs that they have recognized. The motive behind this decision to buy the product to
satisfy their respective unique needs depends on the perception of the consumer about the
quality of the product which can satisfy those needs. Consumers perceive product from
the viewpoint of quality and satisfaction factor it provides. Consumers’ product purchase
decision is influenced by the attribute which the successful marketer can give, lend or
portray through the product advertisement, packaging, manufacturing, country of origin
and other promotional techniques which determines product quality to a large extent
(Agyekum et al., 2015). The existence or non-existence of purchase goals may be linked
with certain search attributes and browsing patterns, which eventually affects consumers’
purchase decisions. Therefore, understanding the role of consumers’ purchase goal and
its controlling effect on the association between online reviews and consumers’ purchase
decision is crucial to both academics and practitioners (Weisstein et al., 2017).
Consumer behavior
Generally, Consumer behavior refers to customer approach, inclinations, intents, and
choices regarding a specific product or service in the market while making the purchase.
Usually, this marketing concept is known as Consumer behavior or Consumer buying
behavior. The study of Consumer Behavior involves some social science disciplines
including anthropology, psychology, sociology, economics, and so on. Another
explanation of consumer behavior is the process of individual or group of consumers find
out, choose, and buy a product or service which can satisfy their needs and wants.
Consumer behavior assists the product or service providers to understand the activities of
the customers in the marketplace and its primary intention of those activities. Consumer
behavior is believed to be a fundamental element of marketing. Kotler and Keller (2011)
described the definition of consumer buying behavior as the process of purchasing and
getting rid of commodities, services, and experiences. It can be considered both private
through individuals and in groups as well as commercially through organizations and
1
business buyers to satisfy their requirements and demand. In contrast, Kumer (2010,
p.218) suggested that consumer buying behavior is only the process of personal
consumption, signifying the buying behavior of end customers for both individual and
family unit. It is important to study the reasons behind consumers purchase decision and
specific factors which influence them to take the decision.
Consumer Perception
Consumers deploy various variables to perceive the quality of a product. These quality
rests in the eyes of the consumers who are perceiving these qualities. Products that seem
of higher quality to one consumer may seem subservient to another. Perception plays a
vital role in mind of the consumer. Business environment around us is filled with
countless stimuli attempting to attract our attention. Our perception quality depends on
the way we process and evaluate the stimuli or the information that reaches our senses.
The process through which one selects, processes, and interprets information received to
create purposeful picture of the world is called perception (Kotler, 1997). Consumer
perception can be formally defined as a marketing theory that incorporates a customer’s
thoughts, product knowledge and consciousness about a company or products/services it
offers (Korengkeng and Tielung, 2018).
2
1.2 Overview of the Cosmetic Industry of Bangladesh
According to the Global Islamic Economy Report (2016) people of Bangladesh have
spent a staggering US$ 2.5 billion on cosmetics alone in 2016. The report also mentions
that the country is the sixth-largest buyer of cosmetics in the Muslim world. This gives a
clear view of the real image of the cosmetic industry in Bangladesh. The market size is
significant and there is a huge demand for global brands too.
Bangladesh has drawn the attention of the world with its consistent economic growth.
With a target to become a middle-income country by its 50th birthday, it has also adopted
the Sustainable Development Goals (SDG) monitored by the World Bank. The World
Bank acknowledges the impressive track record of growth and development achieved by
Bangladesh (World Bank, 2020). So, the economic strength of Bangladesh has
strengthened many industries and also helped many industries to emerge. The cosmetic
industry is one of the leading ones to contribute to economic development. The GDP of
Bangladesh has risen from 5.05% in 2009 to 8.2 in 2019 (Bangladesh GDP Growth Rate
| 1994-2019 Data | 2020-2022 Forecast | Historical | Chart, 2020). The improved GDP
signifies more purchase power of the people. So, the demand and supply for domestic and
internationally renowned brands have also increased. Close attention to the changes gives
us a perfect insight into how the women-centric industry have included both men and
children in its grasp.
A study conducted by Yousaf et al., (2012) in Pakistan regarding brand loyalty in the
cosmetics industry suggests that significant positive relationship exists between brand
loyalty and brand credibility, brand awareness, brand association, perceived quality, and
product knowledge. The study also finds that global presence of cosmetics brands is
taking the foreign branded cosmetics to the highest level of success in Pakistan by
adopting global branding. It focused on consumer loyalty towards the brand “L'Oreal”
which is a global brand of cosmetics. The study indicates that brand awareness is the most
important variable in the path to success in the cosmetics industry in Pakistan. Cosmetics
industry has been able to portray itself as one of the best business in Pakistan and hence,
this study was conducted to examine the factors that play a role to build brand loyalty in
Pakistan.
Kalicharan (2014) suggests in his research that even though many cosmetics consumers
acknowledge the high quality of products made in specific nations, such consumers may
avoid buying such products as a result of previous bitter experiences that create a negative
image toward that specific country of origin.
4
Kim et al., (2006) in their research in South Korea have found through a scientific study
that the crucial problem with local cosmetics industry is poor brand power. Consumers’
needs are believed to be various and dynamic. Consumers have an inclination to rely on
the brand name. Therefore, an effective strategy of marketing needs to be implemented
to bolster the image of the brand.
It can be observed that significant number of studies exist focusing on the topic of
consumer behavior, brand loyalty, brand awareness, and brand power. And they focus
their own respective demography and industries. But no scientific peer reviewed study
can be found that examines the consumer behavior and consumer perception of
Bangladeshi cosmetics products customers precisely. Thus, a research gap in the
literatures can be identified which can be further explored.
1.6 Delimitation
To achieve valuable and valid results regarding the purpose of the present research, this
study focuses solely on the data collected from the local businesspersons and consumers
only from Bangladesh. Although there are some delimitations regarding geographical
locations and time constraint in this study, the authors attempted to examine all the issues
effectively to achieve a reliable analysis and results.
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1.7 Disposition
The following table provides a general idea and structural overview of the study.
Chapter 1: This Chapter presents the introduction and the research gap of the
Introduction thesis. Cosmetics industry is one of the largest industries in the world,
however no research has been undertaken in the context of
Bangladeshi consumers of cosmetics.
Chapter 2: The literature review chapter will address the relevant peer reviewed
Literature manuscripts and brief description of them and form our theoretical
Review framework.
Chapter 3: In this chapter, the research approach, data collection and
Methodology measurement tools will be discussed for a better understanding.
Chapter 4: This chapter aims to present the results obtained from the collected
Empirical data seeking to answer the research questions.
Findings
Chapter 5: This chapter provides interpretation of the collected data and empirical
Analysis data is discussed and analyzed parallel to the afore discussed literature
review.
Source: Own construction
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2. Literature Review
This chapter theorizes the main topics named Consumer Behavior, Consumer Perception,
Bangladeshi Consumers, Trend of Bangladeshi cosmetics consumers and at the end; a
theoretical framework has been developed by the authors which would serve as a base
for this study.
According to Gilaninia et al. (2013) consumer behavior has seven key points:
1. Consumer behavior is stimulated: Consumer behavior is driven to achieve a
specific purpose. Satisfying needs is the goal.
2. Consumer behavior comprises of many activities: activities such as searching for,
purchasing, using, evaluating, and disposing of products and services.
3. Consumer behavior is a process: Process of selection, acquisition, utilization, and
withdrawal of goods or services indicates the procedures of consumer behavior.
Consuming process entails three steps: pre-purchase activities, purchasing
activities and the post-purchase activities.
4. Consumer behavior includes various roles: In any specific situation, a consumer
can play multiple roles. Also, for any particular purchase, there may be more than
one person involved in one or more roles.
5. Consumer behavior is different in terms of time and complexity: The "number of
activities" increase the complexity. Time and complexity associated together
translates to decision being more complex and time consuming.
6. Consumer behavior is influenced by external factors: Some of the external factors
that influence consumer behavior include culture, social class, family, reference
groups etc.
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7. Different people have different behavior: Marketers utilize market segmentation
according to the unique behaviors of different people.
Need Recognition: In the first stage of the model consumers feel the urge to fulfill a need
which directs to the analysis of available information for a purchase decision. According
to Neil et al. (2006) the need recognition is the result of a solution to a need or problem
which can be personal or professional and this creates a purchase idea. Consumer’s social
class, knowledge, values, and lifestyle effect this stage like a woman who belongs to the
higher social class may feel a need of high-priced foreign brand makeup kit which can be
an only luxury to consumers which low income.
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Search for Information: Consumers search for information through various channels.
Factors like knowledge, attitude, available consumer resources play role here. Search can
be both internal and external where consumers use their memories, previous experiences,
use of internet and opinion of other consumers. Generally, in purchasing a low-priced
cosmetics items where differentiation is not a major fact consumer tend to rely on internal
search. Whereas for expensive cosmetics or solutions product they consider external
search with more importance.
Evaluation of Information: In this stage consumer compare different options for their
purchase. It is a very complicated stage which can often be time consuming and full of
pressure. Apart from monetary factors, personal influences factors like celebrity
endorsement can play a vital role for the consumers for choosing a certain brand in
cosmetics.
Purchase Behavior: In this stage customer has already made up his/her mind and just do
the purchase. According to Kacen and Lee (2002) purchase behavior can be differentiated
in three types which are: planned purchase, partially purchase and impulse purchase. Also
purchase can be done physically in a store as well as online. Like many other products
for cosmetics, online purchase is increasing day by day but at the same time many
consumers prefer to go to a shop and watch and feel the product first before buying it.
Consumption: Customers use the product in this stage. Consumption of the product can
be different in customer to customer. For cosmetics items, the consumption process is
usually very straight forward. Customers can have a positive or negative feel of the
product in this stage, but it is not conclusive yet.
Post consumption Evaluation: This is the stage where customers decide if they are happy
and satisfied with the product and if they want to repurchase it. Here again external factors
like peer groups opinion effect the customer’s judgement of the product regardless of
their level of objectivity (Trehan, 2015).
Divestment: This has become a very crucial stage in recent days. Many consumers are
now conscious about recycling and ecological impact. For cosmetics industry it is very
crucial as most of the cosmetics products comes in plastic containers which need to be
recycled properly to avoid environmental degradation. So, manufacturer now following
the procedures so containers can be easily recycled or making packaging eco-friendly to
stand out from the rest of the crowd (Blackwell et al., 2006).
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Environmental Influential Factors: These factors are considered as external factors
which influences consumers to make the purchase decision.
Culture: Schütte and Ciarlante (2016) have pointed out culture as a strong element for
determining consumer behavior. They have also mentioned Asian culture is distinctly
different from western culture. So, it is highly influential for consumer behavior.
Social Class: Social class refers to the position of consumers of society in a hierarchy of
distinct status classes. When it comes to a purchase decision, consumer often consider
how the product or service would match their societal value (Ahmed et al., 2016).
Personal Influences: Consumer’s own knowledge and ideas about the products influence
him to make the purchase decision. The influence formed through interactions with
customer’s surroundings (Blackwell et al., 2006).
Family: Family can influence consumer behavior two ways. It can help in developing
consumer’s own perception, evaluation, attitudes towards purchase decision and for
family unit purchase decisions (Ramya and Ali, 2016).
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Knowledge: Customers are aware of the product and services they purchase at least to
some extent. Consumer’s knowledge provides them about information regarding brand,
distribution channel, availability, and information about competitor’s product. It also
helps consumers to decide when to buy the product and information from their memory
guides regarding uses and requirements to use a product.
Attitudes: Attitudes are closely associated with customers through process which has
strong influence on customers decision making. Attitudes are difficult to change and can
decide future purchase choices.
Personality, Values and Lifestyles: Personality, values, lifestyles are psychologically
associated with consumers and make distinct consumer segments. It differentiates
consumer groups and marketers need to find the right consumer segment for the product
or services (Blackwell et al., 2006).
Perception refers to the act of capturing using the senses and the mind. Hence, perception
is not only related to basic senses such as visual, flavor and taste attributes, but also to
formed learning or experiences. Perception encompasses complex features of consumer
behavior such as learning, motivational and contextual factors. How and through which
path consumer perceptions shift is complicated to foresee because of the complex
dynamic which facilitates the change (Troy and Kerry, 2010).
Aaker and Joachimsthaler (2000) assess that brand awareness holds a critical role in
consumer perception, especially when consumers’ purchase pattern is not delineated.
Branded items offer the impression of familiarity especially in low involvement products.
For example: soaps and items that we use on a daily basis, media and advertisement are
operative devices for awareness.
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2.4 Factors influencing Consumer Perception
Wulandari and Kodrat (2015) identifies four stages of perception. They are sensory
system, attention, exposure, and interpretation. Unique sensory attributes lead to a good
reaction or sensation. Attention transpires when a stimulus triggers some receptors
sensory nerve sensations and outcomes are processed in the brain. Exposure ensues when
the stimuli come in an assortment of sensory receptors of a person. Consumers pay
attention to some individual stimulus that occasionally are not mindful of others, and even
disregard a few signals. Finally, interpretation is a consequence or reactions offered by
someone of what can be accepted. Interpretation from each other is different, dependent
on what they individually need.
Solomon and Stuart (2005) states three essential factors that play a role regarding
consumer’s perception: exposure, perceptive selection and interpretation.
1. Exposure
After being exposed to a product, consumers identify the stimuli produced by the product
to their own sensory receivers
2. Perceptive selection
At this stage, consumers concentrate more to some stimuli rather than the others.
3. Interpretation
During this process, they attribute a specific importance to the stimuli. It is possible to
influence this interpretation process by numerous associations which consumers make
based on their experiences and needs.
Another study conducted regarding Bangladeshi consumers finds that products deriving
from advanced developed nations are recognized to have similar positive attributes as
being of good/very good quality, reliable, good workmanship, well performing. On the
other hand, products that are made in emerging markets of South Asia are considered to
be of less desirable in quality (Kaynak et al., 2000).
Another study conducted considering cosmetics users of Rajshahi and Rangpur, two cities
in the northern part of Bangladesh, assesses that the most significant purchase influencer
for multinational brands’ cosmetics in that region is quality. Because of perceived to have
superior quality compared to local cosmetics, internationally branded cosmetic products
draw attention of the cosmetics consumers there. It also finds country of origin also has a
role in the consumers purchase decision and suggests marketers in Bangladesh
accordingly (Alam, 2020).
13
According to a research conducted to investigate the consumers’ purchase decision for
cosmetics products in the rural areas of Bangladesh, by considering consumers from
Mymensingh division, packaging and labeling plays a vital role in the cosmetics
consumers’ in that region. Apart from being an essential element of protection, packaging
is considered to be the sign of reliability, reason to be delighted with the new shapes and
packages’ colors and a strong deciding factor for their purchase decisions (Rodrick et al.,
2020).
Figure 2 below portrays different factors that influence consumer perception derived from
the theory section discussed above and contrasts them with the trends that are found in
terms of Bangladeshi cosmetics consumers. From the contrast and comparison, the factors
that influence the consumer perception of cosmetics purchase in Bangladesh can be
reached with a clearer picture of the situation.
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Figure 2 – Theoretical Framework
Factors Influencing
Cosmetics Consumers
in Bangladesh
The reason for selecting Pantano’s (2011) model of consumer perception is that his model
focuses on consumers rather than pointing our factors of perception in general. Trends
from studies conducted by Showrav (2018) and Alam (2020) has been used in the
framework as they are conducted reasonably recently and are more coherent with this
present investigation. These trends have been discussed previously in this chapter and are
from credible sources which can help us identify answer to the research question of this
study.
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3. METHODOLOGY
This chapter contains detailed information about how the research is conducted. It
describes the pattern of research used to conduct this study from philosophical point
and methods of research. The reasoning for choosing the methods is explained with
relative arguments. The data collection method and process are also described, and
how data credibility, validity and reliability are ensured. Moreover, this chapter deals
with the fact about processing of empirical data analysis.
3.1.1 Ontology
According to Easterby-Smith et al. (2015) ontology refers to a philosophical aspect that
investigates the nature of reality. Dilts and Delozier (2000) states that different topics can
be viewed differently dependent on the values, roles, and backgrounds of people.
Ontology is related to the topics of nature of the society. The two main aspects of ontology
are subjectivism and objectivism (Bryman and Bell, 2015). This study aims to examine
the factors influencing consumer perception of the cosmetics consumers in Bangladesh.
The consumers of cosmetics in Bangladesh are the object of the current research where
they are viewed as the social entities that have constant association with both society and
the environment. Subjectivism in this study is perceived through the various definitions
and interpretations of consumer perception and its factors.
3.1.2 Epistemology
Epistemology is the other philosophical aspect that describes the nature of knowledge, its
justification, its development, and the differentiation between points of view and stances.
Constructivism is considered as one of the concept of epistemology. Constructivism
believes that reality is created by people where it is motivated by different points of view
which gives it a subjectivist nature (Easterby-Smith et al., 2015). In this study we
16
followed the constructivism as the concept of epistemology based on interpretation and
analysis of the views provided by the respondents through interview and online survey.
After explaining the ontology and epistemology, the research method including the design
and approach would be based on those two pillars.
Primarily qualitative method has two research approaches: inductive and deductive
approach. The deductive approach portrays back tracking the data from the themes to
figure out if any additional information or more evidence could support each theme
(Creswell, 2009). By choosing the inductive approach, we were offered the ease of access
and organized set of procedures that can analyze qualitative data and as a result through
this approach, reliable and valid findings can be produced. (Thomas, 2006)
To obtain the relevant data and information for this present study, local businesspersons
were interviewed, and an online survey has been conducted in order to receive data from
17
consumers of cosmetics in Bangladesh. These local businesspersons had direct insight
into the cosmetics market in Bangladesh. The consumers of cosmetics who participated
in the online survey were regular consumers of cosmetics like any normal cosmetics
consumers in Bangladesh. Hierarchy of industry players can be determined by their
existence or experience on the market, but consumers cannot be given a hierarchy as we
believe regardless of what spending power individuals have, consumers are consumers,
and they have a right to be considered as one. Therefore, consumers cannot be labeled as
more important or less important or as consumers whose opinions matter less or more.
Quantitative research is “an approach for testing objective theories by examining the
relationship among variables. These variables, in turn, can be measured, typically on
instruments, so that numbered data can be analyzed using statistical procedures”.
Generally, in quantitative approach, the information is analyzed by using statistical
measures and hypothesis testing (Creswell, 2009).
Mixed methods research combines qualitative and quantitative data collection and data
analysis within a single study. Several fields, including sociology, education, evaluation,
and health sciences call for the integration of quantitative and qualitative research
methods emphasizing the value and can take advantage of the integrated data derived
from quantitative and qualitative research methods (Molina-Azorin, 2012). Using this
18
approach, investigators collect numerous forms of data of both qualitative such as
observations and interviews with quantitative such as surveys for their research work
(Creswell, 2009).
This study follows the mixed research method to reach the desired goal of answering the
research question. It started with research question to find answers. There are primary
data sources to evaluate and process to find how the consumers perceive local and global
cosmetics brands. For the qualitative approach, semi-structured questionnaire has been
conducted as during the interviews local business owners were asked additional questions
that would answer the research question more precisely. An online survey, which is
considered as quantitative data, has been conducted to get a clear and concise view from
the consumers’ perspective.
3.5 Operationalization
Interview questions were determined from the literature review of this research.
Additionally, questions were categorized according to the motives to cover all areas of
the study. Below in table 3, the operationalization table linking with themes and theories
are shown.
Table 3 - Operationalization of Interview Questions Link with Motives and Theories
S.N. Questions Motives Reference
1 How long have you been involved with Trustworthiness,
the cosmetic business? Reliability, and
Validity
2 Over the years, what is the most Supplementary
significant change that you have noticed? Question
3 How did the cosmetic industry evolve Psychological Showrav (2018)
over the period? Attributes
4 Where do the local manufacturers stand in Country of Alam (2020)
terms of competition with global brands? Origin
5 Do you prefer selling local products or Country of Alam (2020)
global products? Origin
6 How does a customer approach the local Psychological Showrav (2018)
cosmetic brands? Attributes
7 Do global products give you a higher Supplementary
profit margin or local products? Question
8 If a company wants to introduce a new Place where the Pantano (2011)
brand in the market, who will be the main product is sold
opponent?
9 How are the imports of global cosmetic Place where the Pantano (2011)
brands affecting the local manufacturers? product is sold
10 Do you think local companies are losing Country of Alam (2020)
the market share to global brands? Origin
19
11 We live in the era of globalization; more External Showrav (2018)
global brands will find their way to Attributes
Bangladesh. How do you predict the
future of local cosmetic manufacturers?
12 Do the products of global brands have a Supplementary
consistent price? Question
13 Do you often get products that are coming Supplementary
in illegal ways? Question
14 We have heard that there is also a problem Psychological Showrav (2018)
with counterfeit, how does this affect the Attributes
market?
15 Do you have any suggestions for the local External Showrav (2018)
cosmetic manufacturers? Attributes
Source: Own Construction
20
3.7 Selection of Interview Participants
For a qualitative study, there is no ideal number for the justification in terms of total sum
of interviewees. Also, researchers need to be cautious of the difficulty tangled in getting
approval from the interviewees which will impact their studies. It is imperative that
selection of participants is purposefully made (Fjellström and Guttormsen, (2016, p. 118).
Accordingly, we have decisively selected participants who could provide us with the best
and most reliable information, required for this study. We decided to interview local
businesspersons who are considered as market players who have deep insights in the
cosmetics market in Bangladesh. They have been active in the cosmetics industry for a
long time and therefore are able to shed light on different aspects leading to the answer
to our research question.
Table 5 below provides the details of the participants who were interviewed for the study.
The duration and locality of the interviews are also provided.
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We live in an era where internet technology is advancing at an extraordinary pace. Internet
is fast becoming the top choice for communication method all over the world. With this
advancement of technology, online surveys have become very popular in recent years.
There are two types of online surveys. E-mail surveys and web-based surveys. Online
surveys have several effective advantages over traditional methods of surveying that
make them popular among researchers. It takes less time, costs lower, data entry is easy
and often automatic, and the possibility to obtain additional response-set information
(Granello and Wheaton, 2004).
Therefore, for our quantitative study we decided to take advantage of the use of online
surveys. We created an online survey using social media website Facebook where the
consumers of cosmetics were free to answer a set of questions. The online survey
questions were shared in a popular beauty and grooming Facebook group. The questions
were close ended, and the questions were formed in a way that their answers would
directly indicate how the consumers of cosmetics react to the cosmetic industry; what
they think and feel about global and local cosmetics. A total of 143 people took part in
the online survey including women and men of different age groups.
We designed the systematic semi structured interview that we would later on carefully
analyze and validate and collected the answers of the respondents as the data to be
analyzed. The questions are formulated in a way that would give a clear and concise
picture of the cosmetics consumers of Bangladesh. With the permission or consent of all
the participants of the interviews, we were able to note down their responses and make
additional notes of their comments. Questions asked during the interview were directed
towards investigating consumer perception of Bangladeshi cosmetics consumers. These
questions were either related to or derived from the literature and theories of this study.
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The interviews were conducted in Bengali, which is the national language of Bangladesh.
Since most of the people are more comfortable communicating in Bengali and there was
a better chance of mutual understanding in terms of question-and-answer session, we
decided that asking the questions in the local language would be the best way to conduct
the interviews.
The respondents of the online survey took part in the survey voluntarily. The survey was
conducted in English as people who use social media are mostly used to English
communication and usually does not have any problem understanding simple close-ended
questions in English. The surveys had no time constraint, therefore voluntarily
participating respondents were able to comfortably answer all the questions taking their
own time.
To analyze the primary data, we have selected the content analysis method to further this
study. This method enables the researcher to examine theoretical agendas to better
understanding of the data collected. With the help of content analyzing method, it can be
possible to finely narrow down words into fewer content-based segments. When words,
phrases etc. are classified into the same category, it is considered to share the same
meaning. (Cavanagh, 1997)
After the collection of the primary data from the interviews, we accurately translated them
to English. Those transcriptions were coded whilst identifying keywords such as quality,
country of origin, product attribute, consumers’ own attributes, external factor,
psychological factor, place where product is sold. The coding approach assists to
streamline and reinforce the data analysis process by associating the uniformity between
the information observed in the interviews and the theories that acted as a base for this
23
study (Babbie, 2013). Furthermore, data is analyzed according to the coding of the data
and hereby the empirical findings are linked and compared with the theory presented in
the literature review.
For the quantitative analysis of the online survey that supplements the answers to the
research question of this present study, percentage frequency distribution method is used
to process the data. A percentage frequency distribution is an exhibition of data that
indicates the percentage of observations that exist for each data point or grouping of data
points. It is an especially useful process of showcasing the relative frequency of survey
responses. Percentage frequency distributions can be displayed as tables, bar graphs or
pie charts (Lavrakas, 2008, p.577).
We selected interview participants with respect to their experience levels which helped
to collect high-value data and avoided unrelated portions of responses related to the
research question. This decreased the tendency of misinterpreting interview questions by
participants thereby enhancing the validity of the study. To enhance the reliability in our
study, an interview questionnaire has been provided in the appendix section which
allowed us to ask the same questions to every participant.
24
3.11 Ethical Consideration
Ethical considerations were carefully evaluated while collecting the data. We followed
Bryman and Bell’s (2015) Ethical standard. According to it we ensured the four main
parameters where all the participants were free from any kind of harm; consent was taken
in prior, no invasion of privacy occurred, and respondents were aware of the purpose of
the interview, so no deception was involved. For the privacy concerns, respondents were
free to not answer any particular question and withhold information they choose not to
share. We have not mentioned their precise location and business name to keep the ethical
standard intact. Since the online survey was conducted in Facebook, the respondents’ data
were protected by the privacy policy of Facebook.
25
Figure 3 – Research Process
Research Process
Operationalizatio
n of Interview and Unit of Research Analysis
Survey Questions Analysis Approach of Data
Link with
Theories Interview Mixed Content
Responses, Analysis
Survey
Responses
Inductive
for Percentage
Qualitative Frequency
Distribution for
Quantitative
Interviews Online
Survey
According to Flick et al. (2004), content analysis has some limitations. If the research
question is too open or not capable of conclusive theoretical reasoning, then instead of
content analysis, more open procedures like grounded theory or a combination of both
approaches is recommended. Due to time constraint and global pandemic situation, we
were not able to utilize grounded theory and were limited to using content analysis.
27
4. Empirical Study
This chapter provides the information obtained from our interviews with local market
players and our online survey of the cosmetics consumers of Bangladesh. Data collected
were structured according to our theoretical framework which formed the basis for
further analysis.
“Customers usually seek global brands more. I prefer to sell global brands. Global
products offer a higher profit margin” (P6).
“I would personally like to sell more local products but the demand for them is a lot less
in the cities. Most customers do not usually seek for local brands. Global products sell
more, and they have a higher profit margin” (P7).
“Some customers only consider local brands if the global branded products are not
available” (P8).
From the interview responses, we can gather that consumers are mostly interested in
purchasing global branded cosmetics. Local branded cosmetics are not very popular in
the city areas especially where availability of global branded products is easy to acquire.
Consumers tend to lean towards the global cosmetic products as they perceive them to
28
have comparatively higher quality and their marketing and advertisement policy is much
more sophisticated in contrast to the local cosmetics brands.
“I know the industry for over ten years, but I have been actively involved with my own
business for the last seven years. I have actually observed a lot of change during this
time. It was hard to predict how the market has changed over the past several years. The
industry is booming with lots of products and customers. Customers are coming from
different age and sex groups too. More products for men are being introduced due to the
higher demand” (P10).
Counterfeit cosmetics can be found in the Bangladesh cosmetics market. Such existing
products are making consumers skeptical. Consumers struggle to trust both local and
foreign branded cosmetics because of counterfeit cosmetics being sold side by side with
the genuine products.
“The counterfeit products create skepticism among customers about global branded
cosmetics” (P1).
“This is really a dreadful problem because people lose their trust due to this problem”
(P11).
Consumers are flooded with the number of choices they are offered in recent times as
stated by our interviewees. The global brands are targeting consumers through social
media and other online platforms which evidently are able to attract more and more
customers effectively. As such, their advertising and attractive consumer retention policy
plays a huge role to influence consumer perception of cosmetics consumer in Bangladesh.
29
4.1.3 Place where product is sold
Local cosmetics products are preferred in the rural areas of Bangladesh. Interviewees
stated that because the customers in the rural areas of Bangladesh are not as much familiar
with the global products, they often opt for the locally branded cosmetics.
“In cities, global brands have a competitive advantage because customers are well
oriented with their brands. While in rural areas some local manufacturers are doing
really well in terms of market share and profit making” (P10).
The tendency to opt for local branded cosmetics is also affected by the fact that not as
much global products are available in the rural areas as it is in the city areas.
“Local manufacturers are trying to get a higher grasp of the rural markets. In major
cities, foreign brands have the upper hand” (P1).
As mentioned earlier due to more accessibility of technologies in rural areas and higher
socio-economic standard, foreign branded cosmetics are now targeting the customer
segment there with more intensity. The rural cosmetics market is supposed to grow more
and global brands are directing their sales and marketing strategies towards more market
share.
“The competition is getting higher but lots of new customers are also coming in the
market. So, there are opportunities” (P7)
Interviewees also stated that the local cosmetics brands are lagging in terms of market
research and are unable to properly target their customer segment. This is another
significant reason why they fall behind in the competition with the global brands. As we
30
have mentioned earlier, advertisement is one of the external factors that influence
consumer behavior.
“I would suggest they (local cosmetics brands) learn and improve product quality and
marketing” (P2).
“They (local cosmetics brands) need to put more resources on market research” (P7).
“I would suggest they (local cosmetics brands) adopt innovative ways to connect with
customers” (P4).
From the responses it is evident that the local branded cosmetics have a lot to learn from
the foreign brands in terms of market research, advertising and selecting target market in
a smarter way. They also state that the global brands did not become successful overnight
and in order to successfully compete with them, the local cosmetics brands need to be
innovative and persevere in terms of product quality and properly marketing their product
to effectively influence consumer perception in Bangladesh cosmetics market.
31
4.2 Empirical evidence from Online Survey
Yes No
4.2.1 Quality
Quality is an attribute that can significantly influence consumer perception. When asked
about the effort made by the local cosmetics manufacturers’ efforts (Q2) compared to the
quality of the foreign brands, consumers reactions are clear from the graph chart that only
21% respondents felt satisfied with the quality of the local brands.
The majority of the consumers (74%) were not ready to switch to local cosmetics products
even if they received better quality products as the answer of Q4 suggests. This trend
indicates towards the psychological factor of the consumer perception also.
When confronted with the question of finding any improvement with the local branded
cosmetics, 45% of the respondents answered yes while the rest of them answered
negatively.
32
4.2.2 Consumers’ own Characteristics
Consumer perception is affected by the factor of consumers’ own characteristics as well.
From the answer of Q1 and Q3, consumers’ own characteristics can be perceived. As we
have already found from the interviews of the local businesspersons, cosmetics products
have started to become more popular among men also. 76% respondents buy separate
cosmetics for men and women. 67% of the responding cosmetics consumers have stated
that cosmetics have become a crucial part of their regular lives (Q3). When answering
Q5, only 23% respondents admitted using locally manufactured cosmetics. This is
another pattern retrieved from consumers’ own characteristics. These characteristics
clearly influence consumer perception for the consumption of cosmetics.
33
Table 6 – Summary of Empirical Findings linking with Factors
34
5. ANALYSIS/DISCUSSION
This section of the study integrates information from the literature review and empirical
evidence with the objective of finding uniformity or differences with present academic
theories related to the topic.
36
perceived to be of superior quality compared to local branded cosmetics, internationally
branded products draw attention of the cosmetics consumers in Bangladesh.
According to Łopaciuk and Łoboda (2013), the demand for cosmetics will keep growing
mostly to satisfy high-rising demand from emerging markets of Asia and Latin America
due to increased disposable income which will impact customer buying patterns and may
even give birth to new giants in the business.
Both of the theories mentioned above support are in line with our newly identified factor
influencing consumer perception regarding cosmetics purchase in Bangladesh.
In below table 7, authors of this study have presented the findings of the study alongside
the theories in our theoretical framework. Our findings support the theoretical framework
along with a new factor that has been identified through this research.
38
Table 7 – Analysis of Findings of the study through comparison with theories
Factors Theory Authors Analysis of Findings of the study
Country of - Country of origin’s role Alam (2020) - Most of the Bangladeshi
Origin in the consumers’ cosmetics consumers have a
purchase decision. Kaynak et tendency to buy foreign branded
- Products’ perceived al., (2000) cosmetics.
desirability according to - In the rural parts of Bangladesh,
country of origin. local branded cosmetics are
more popular due to less
exposure to knowledge about
foreign branded cosmetics.
Psychological - Psychological motive Showrav - Increased ease of access to
Attributes of influencing consumer (2018) knowledge as a psychological
Consumers perception. factor influences consumer
perception.
- Identification of counterfeit
product as a psychological
factor influences cosmetics
consumer perception as trust
issue emerges.
Place where - Consumer perception Pantano - Local cosmetics are sold more
product is sold influenced by place (2011) in the rural areas of Bangladesh.
where product is sold in - Foreign branded cosmetics have
terms of product display, massive market share in the
arrangement etc. urban regions of Bangladesh.
External - External attributes such Showrav - Customer base is growing
Attributes as advertisement and (2018) rapidly amid fierce competition.
recommendation from - Local cosmetics brands are
peers influence lagging behind in terms of
consumer perception. market research, advertisement,
customer segmentation.
- Widespread availability of
foreign branded products in the
cosmetics market.
Quality - Quality is the most Alam (2020) - Majority of cosmetics
significant influencer of consumers perceive foreign
consumer perception. branded cosmetics being of
superior quality compared to
local branded cosmetics.
- Majority of the consumers are
unsatisfied with the quality of
local cosmetics.
- Majority of them would not
switch even if they improved in
quality.
Consumers’ - Consumers’ own Pantano - Majority of the Bangladeshi
own characteristics such as (2011) cosmetics consumers buy
Characteristics principles, religious separate cosmetics for men and
views, opinions, women.
lifestyles etc. influence - Majority of them believe that
consumer perception. cosmetics have become an
inevitable part of their lives.
- Very few of them use local
cosmetics in their daily usage.
Increased - Demand for cosmetics Łopaciuk and The disposable income of
disposable will keep growing in Łoboda Bangladeshi cosmetics consumers is
income emerging markets due to (2013) rising. Number of middle to affluent
increased disposable Bechan and class income families are growing.
incomes which will Hoque This is contributing to stronger
(2016) purchase power.
39
impact customer buying This is contributing to the massive
patterns. increase in demand of cosmetics
- the increase in number products in Bangladesh compared to
of middle-class earlier years.
individuals along with Number of consumers and demand
rising disposable income for cosmetics have increased rapidly
- contributes to the ever- over the years.
increasing demand for
luxury cosmetics
Figure 5 below represents a module depicting the factors that influence consumer
perception in terms of cosmetics consumers in Bangladesh. We have identified quite a
few factors that influence cosmetics consumer perception in Bangladesh along with a
new factor that has been identified in the course of analyzing our findings.
40
Figure 5 – Framework for Factors Influencing Consumer Perception of Bangladeshi
Consumers while Purchasing Cosmetics
Country
Of Origin
Psychological
Attributes of
Consumers
Place where
product is
sold
Consumers’
Own
Characteristics
Increased
Disposable
Income
41
6. CONCLUSION
This chapter entails the findings in response to the research aim, questions, and gap
earlier identified. Theoretical implications, practical implications, limitations, and
suggestions for future studies are also reviewed in this chapter.
42
collective set of consumers can affect consumer perception and eventually, these
individuals with the newly acquired purchasing power perceive cosmetics differently
compared to the past.
A new model (Figure 5) was developed based on the empirical data collected and
analyzed. Eventually, a new finding was confronted. A new factor that was not previously
encountered in the past literatures. This study can be a supportive material for the further
research on consumer perception of cosmetics consumers. The results of the study will
be applicable to the emerging markets. We are convinced that this new framework
generates new theoretical insights into the literature of consumer perception. In summary,
we believe this study complements the earlier studies undertaken with consumer
perception theories in mind. It will motivate further investigations into the concept of
cosmetics consumers’ perception in the future.
➢ This study can be utilized by local cosmetics brands to get a better view of how the
cosmetic consumers in Bangladesh perceive the locally produced cosmetics. This will
in turn help them increase their quality and modify their product in a way that better
satisfies the cosmetics consumers in Bangladesh.
43
➢ The scenario of the Bangladesh cosmetics market is changing. The increasing number
of middle to affluent income families and interviews with the local business people
indicate that number of consumers are increasing day by day. Adding to that, the
global brands have the upper hand mostly in the urban areas. But their availability is
not so widespread outside of the major cities. Therefore, in the less urban or rural
areas, there lies a huge opportunity for the local cosmetics brands to grasp the market
share and dominate in those areas. But they have to formulate marketing strategies so
that they do not lose the market share even when those areas become developed.
➢ A study from South Korea mentions that the leading cosmetics brand there is a local
brand called “Amore-Pacific”. In order to tackle competition from global brands,
Amore-Pacific employed a strategy of commercializing the beauty of the Korean
culture from product concept and content development to design and product
promotion strategy. (Hwang, 2004, p.28-29) In order to increase market share, the
local cosmetics manufacturers of Bangladesh must research for a change in their
marketing strategy that would attract the local consumers more towards the locally
manufactured products.
➢ Shop owners express the weak brand power of the local products in Bangladesh
cosmetics market. Brand power and brand cultivating must be focused on by the local
cosmetics manufacturers.
➢ The cosmetics market in Bangladesh is growing. The number of consumers is
increasing rapidly. Therefore, there is opportunity for the local manufactures to tap
into this fresh new customer segment. But for that, marketing, presentation, pricing
and mass sales strategies along with post purchase support need to be ensured. The
need customer base that are permanent and can closely associate with the products for
long term.
Since our empirical data was collated via electronic means rather than face-to-face
conversations, we were deprived of ascertaining the body language and verbal cues of the
interviewees. Nevertheless, supplementary questions were asked to determine the
credibility of the respondents. Due to time constraint, number of interviews were limited,
and we received lower number of survey participants than expected. Future research could
overcome these limitations which could lead to even more accurate findings.
45
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Appendix
1. When buying personal care products, do you buy different products for the male and
female members of your family?
Yes/No
3. Do you think some cosmetic products have become a part of your life?
Yes/No
54
4. If the local manufacturers come up with better products, will you switch to them?
Yes/No
5. Is there some product in your current list that is manufactured by local manufacturers?
Yes/No
55