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FACULTY OF EDUCATION AND BUSINESS STUDIES

Department of Business and Economics Studies

Factors influencing consumer perception


regarding cosmetics purchase

A study on Bangladeshi consumers

Krisnendu Mahalder
Syed Millatur Rahman

2020

Student thesis, Master degree (one year), Credits


Business Administration
Master Programme in Business Administration (MBA): Business Management
Master Thesis in Business Administration 15 Credits

Supervisor: Olivia Kang


Examiner: Ehsanul Huda Chowdhury
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Abstract
Aim and method: This study aims to investigate the consumer behavior of the cosmetics
customers and the consumer perception about the available local and foreign branded
cosmetics products in Bangladesh. To achieve the purpose of the study, an effective
mixture of qualitative and quantitative method has been utilized by conducting interviews
and online survey with local businesspersons and consumers of cosmetics in Bangladesh
respectively.

Result and conclusion: Consumer perception regarding cosmetics products in


Bangladesh is influenced by seven factors identified in this study. They are country of
origin, psychological attributes of the consumers, place where product is sold, external
attributes, quality, consumers’ own characteristics and finally increased disposable
income of the consumers. We identified all but one of these factors from the existing
literature and our analysis showed that findings of the existing literature support our
study. One new factor found in the course of this study is that the increasing number of
middle to affluent consumers in Bangladesh is another crucial factor that motivates
consumer perception towards cosmetics in the context of Bangladesh.

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.

Keywords: Perception, Consumer perception, Factors Influencing Consumer Perception,


Cosmetics Consumers in Bangladesh.

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

Table 1 - Structural Overview of the Study……………………………………………...6


Table 2 - Theoretical Framework………………………………………………………14
Table 3 - Operationalization of Interview Questions Link with Motives and Theories……….…….19
Table 4 - Operationalization of Online Survey Questions Link with Motives and Theories….20
Table 5 - Information of Participants and Interviews Conducted…….………………...…...21
Table 6 - Summary of Empirical Findings linking with Factors……………………….34
Table 7 – Analysis of Findings of the study through comparison with theories……….39

VI
List of Figures

Figure 1 – The Consumer Decision Making Process…………………………………....8


Figure 2 – Theoretical Framework……………………………………………………..15
Figure 3 – Research Process……………………………………………………………26
Figure 4 – Finding from the Online Survey……………………………………………32
Figure 5 – Framework for Factors Influencing Consumer Perception of Bangladeshi
Consumers while Purchasing Cosmetics…………………….……………….………...41

VII
ABBREVIATIONS

USD - United States Dollar


SDG - Sustainable Development Goal
GDP - Gross Domestic Product
MNC - Multinational Company

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

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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).

Cosmetics and cosmetics industry


Cosmetics falls under the category of health and beauty products. Apart from improving
the physical appearance and personal hygiene, cosmetics take care of our personal well
beings too. The cosmetic industry is one of the leading industries in the world. According
to Ramlia (2015) the global cosmetic industry was worth approximately USD 334 billion
at the time of the study. Like most countries of the world, Bangladesh also has a huge
demand for cosmetics. The demand varies based on the personal needs and purchasing
power of the customer. There are numerous local companies actively manufacturing
cosmetics to satisfy the demand but over time the demand for cosmetics from leading
foreign brands has increased significantly. This study will focus on the factors that
influence consumer perception regarding purchase of cosmetics products in Bangladesh.
It also sheds light upon the market players in the industry and their perception of the local
and foreign branded cosmetics and how the consumers react to those factors. By using
both qualitative and quantitative approach, there is a higher focus on data to make this
study a fruitful one.

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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.

1.3 Problem Identification


Studies conducted on consumer behavior is disparate and broad as shifts in society,
economics, and technology affect the way buyers behave (Peighambari et al., 2016). They
address factors such as consumer behavior, consumer perception, consumer purchase
decision and success of local and global brands of cosmetics in different geographical
locations of the world.

A scientific research conducted in Vietnam regarding consumer behavior of cosmetics


consumers conducted by Luong et al., (2017) state that three factors effect consumer
behavior in the Vietnamese cosmetic industry which are country of origin, brand, and
price.
According to Shenge (2010) consumers have a tendency to choose products from
developed nations more willingly than products that are made in emerging countries.
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They may accordingly be more inclined to pay a higher price for the product from more
developed countries than from developing countries.

Cosmetics consumer behavior study focusing on Malaysian consumers reveal that


product quality is the ultimate influencer of consumers’ purchase intention. Most of
customers are cautious about product quality, and they are prepared to pay extra for a
higher quality product. Brand image also plays a role as customers tend to choose the top
branded cosmetics with high brand image as they perceive those brands possess higher
quality. Product knowledge is another factor that influences cosmetics purchase decision,
therefore, firms require to deliver product information efficiently (Eze et al., 2012).

Study on the critical impact of brand on consumer buying behavior of fashionable


clothing of youngsters and professionals in Bangladesh indicates that brand plays an
inevitable tole on the consumer buying behavior in fashion cloth (Islam and Aktar, 2013).
The study focuses on the consumer behavior of a different industry in Bangladesh. But
upon critical probing, no significant scientific study could be found conducted focusing
on the consumer behavior of cosmetics products in Bangladesh.

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.

1.4 Aim & Research Questions


The primary focus of this study is to understand the factors that play a role to influence
cosmetics customers of Bangladesh to reach their purchase decisions. The purpose of the
study can be addressed by the following research question:

● What are the factors influencing consumer perceptions in terms of cosmetics


purchase in Bangladesh?

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.

Table 1 – 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

6
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.

2.1 Consumer Behavior


Consumer behavior refers to the processes involved when groups or individuals choose,
buy, utilize, or discard products, services, concepts, or experiences to fulfill their
demands. Additionally, consumers can be regarded as role players who require unique
products to assist them perform their various roles (Solomon et al., 2016). Another
perspective defines consumer behavior as the actions that consumers exhibit in searching
for, purchasing, using, evaluating, and disposing of products and services that they
anticipate will fulfill their needs (Schiffman et al., 2007).

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.

2.2 Consumer-decision making process:


As per the Blackwell et al. (2006) model (Figure 1), the consumer decision-making
process consists of seven main stages: Need recognition, Search for information,
Evaluation of information, Purchase Behavior, Consumption, Post-consumption
evaluation, and divestment. The model also takes consideration of Environmental and
individual influences which can be divided into internal and external factors. These
factors influence consumers in different stages accordingly.

Figure. 1 – The Consumer Decision Making Process

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).

9
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).

Situation: The final environmental influence is situation. According to this model,


customer’s purchase decision can be changed according to situational changes so it’s
impact can be said unpredictable and erratic. Situational factors are divided into three
categories which are communication, purchase, and usage (Blackwell et al., 2006).

Individual Differential Factors: Blackwell et al. (2006) in their book “Consumer


Behavior” discusses individual differential factors that are internally associated with
consumers and helps making consumer decisions.
Consumer Resources: Consumer resources plays a vital role in decision making. These
can be divided in three categories which are time, financial capability, and collection of
information for processing further.
Motivation: Consumer’s need works as motivation for purchase decision. Motivation is
directed towards two categories which are functional and subjective. Functional category
helps in customer’s thinking process from practical perspective whereas subjective
category looks for emotional attachment and benefits

10
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).

2.3 Consumer perception


Perception is a set of means by which an individual becomes mindful of and decode
material about their surroundings (Gregory et al., 1995). In other words, perception is the
first impression an individual draws and based on that selects and interprets information
to shape a meaningful picture of the world. (Munnukka, 2008).

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.

11
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.

According to Pantano (2011) model of consumer’s perception refers to a perception


process of branded products which focus on three factors.
1. Consumer’s own characteristics (principles and religious views, ideas, lifestyle
etc.)
2. Product characteristics (physical attributes, brand, cost, etc.)
3. Place where it is sold (in terms of arrangement, product exhibition, etc.)

2.5 Consumers in Bangladesh


A scientific research conducted on the Bangladeshi consumers reveal that country of
origin possesses a substantial positive effect on brand image regarding Bangladeshi
consumers’ intention of purchasing foreign products. Brand image of foreign brands is
12
another attribute that holds a positive effect on Bangladeshi consumers’ purchase
intention. The study also finds that Bangladeshi consumers also pay close attention to the
quality of foreign products (Haque et al., 2015).

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).

Fregidou-Malama et al. (2019) through their study conducted on the consumers of


Bangladesh demonstrates that product quality and modern newly developed products that
follow local requirements establish trust factor, enhances networking, and improves
consumers’ acceptance of the products in Bangladesh market.

2.6 Trend for consumers of Bangladeshi cosmetics


A research conducted regarding cosmetics buying behavior of consumers in Dhaka, the
capital city of Bangladesh reveals that three major factors impact consumer purchase
decision of cosmetics consumers in Dhaka. Firstly, consumers consider variables like
brand, price, quality of the product, its packaging, unique characteristics, and designs of
the product. Secondly, recommendations from others and advertisements both play a role
in the cosmetics purchase decisions of cosmetics customers in Dhaka. Finally,
psychological motive including terms like looking prettier, more attractive and being
socially acceptable, in the context of Bangladesh, are the most influencing aspects that
play a role in purchase and usage of cosmetics in Dhaka (Showrav, 2018).

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).

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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).

2.7 Theoretical framework


In table 2 below, factors that play an active role in consumer perception and trends in
Bangladesh in terms of consuming cosmetics are discussed according to their respective
academic references. This discussion provides a framework that assists reaching the
answer of the research question of this current study.

Table 2 – Theoretical Framework

S.N. Relevant Theory Authors Motivation


1 Model of consumer Pantano (2011) Identifying factors that influence
perception consumer perception
2 Trend for cosmetics Showrav Observing the trend in terms of
consumers in (2018); Alam cosmetics consumption in Bangladesh
Bangladesh (2020); Rodrick
et al., (2020)
Source: Own Construction

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.

14
Figure 2 – Theoretical Framework

Factors Influencing Trends in Bangladesh Cosmetics


Consumer Perceptions Consumption
• Product attributes, external
• Consumer’s own and phycological
characteristics (Showrav, 2018)
• Product • Quality & Country of
characteristics Origin (Alam, 2020)
• Place where it is sold

Factors Influencing
Cosmetics Consumers
in Bangladesh

Source: Own Construction

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.

15
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 Philosophical Stance


According to Easterby-Smith et al. (2015), ontology and epistemology are the central
element of discussions among philosophers. Furthermore, they have recognized them as
factors which function behind the scenes and usually less visible attributes in research
work.

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.

3.2 Research Design


Research design is assessed a core model to conduct the research constructively. It is the
blueprint of the research which contains the entire research process and determine the
aim, questions, data collection and findings. It is the base of collecting and analyzing
relevant data to enhance the understanding of research topic (Abutabenjeh and Jaradat,
2018).

According to Maxwell (1941) it is crucial for researchers to carefully explain their


research question in order to identify and state possible contradictions regarding
developing and modifying the theories that have been used. On the basis of correctness
of the research design, research gap can be effectively observed which eventually leads
to the overall success and thoroughness of the study.

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)

3.3 Unit of Analysis


According to Kumar (2018), unit of analysis can refer to individuals, groups of
individuals, organizations, countries, or objects associated to the aim of the research.
Babbie (2010) states that a single unit of analysis is used by most researchers to perform
their study as it helps to minimize unnecessary elements and pay attention to satisfy the
aim of the study.

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.

3.4 Research Approach


Generally, three main approaches have been recognized by the researchers to conduct the
research studies. These are qualitative, quantitative, and mixed approaches. (Creswell,
2009).

According to Creswell et. al (2007, p.15), ‘Qualitative research is an inquiry process of


understanding based on distinct methodological traditions on inquiry that explore a
social or human problem. The researcher builds a complex, holistic picture, analyses
words, reports details of informants, and conducts the study in a natural setting’.
Qualitative research allows researchers to approach an investigation from almost any
philosophical or theoretical stance. The specific research design that they employ for
actually carrying out the study is determined by the researchers’ stance. (Merriam, 2002)

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

Table 4 - Operationalization of Survey Questions Link with Motives and Theories

S.N. Questions Motives Theories


Q1 When buying personal care products, do you Consumers’ Pantano (2011)
buy different products for the male and own
female members of your family? Characteristics
Q2 Are you satisfied with the efforts of local Quality Alam (2020)
cosmetic manufacturers?
Q3 Do you think some cosmetic products have Consumers’ Pantano (2011)
become a part of your life? own
Characteristics
Q4 If the local manufacturers come up with Quality, Alam (2020);
better products, will you switch to them? Product Showrav (2018)
Characteristics,
Country of
origin
Q5 Is there some product in your current list Consumers’ Pantano (2011)
that is manufactured by local manufacturers? own
Characteristics
Q6 Do you find any improvements to the Quality, Alam (2020);
products of local manufacturers? Product Showrav (2018)
Characteristics
Q7 Do you always get your desired product in External factor Showrav (2018)
the market?
Source: Own Construction

3.6 Selection of Market Players


A total of 45 cosmetics establishments in Dhaka, Rajshahi, Chattogram, Sylhet and
Barisal were approached and 12 of them agreed to participate in the study. Out of them,
7 were cosmetics shop owners, 4 importers and 1 local distributor. All 4 importers are
based in Dhaka. The local business owners were approached directly while the importers
and the local distributor were found using common links with people that we know who
work for different MNCs in Bangladesh.

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.

Table 5 - Information of Participants and Interviews Conducted

S.N. Position Experience in Market Area Duration


P1 Importer 10 years Dhaka 30 min
P2 Business Owner 5 years Barisal 35 min
P3 Business Owner 7 years Dhaka 30 min
P4 Business Owner 12 years Sylhet 30 min
P5 Importer 3 years Dhaka 25 min
P6 Business Owner 6 years Dhaka 35 min
P7 Business Owner 6 years Chattogram 30 min
P8 Importer 2 years Dhaka 30 min
P9 Business Owner 9 years Dhaka 20 min
P10 Local Distributor 10 years Dhaka 25 min
P11 Business Owner 6 years Rajshahi 35 min
P12 Importer 10 years Dhaka 25 min
Source: Own Construction

21
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.

3.8 Interview Process


Interviewing is a well-known method of collecting qualitative research data as it is
considered as “talking” and talking is natural. Interviews do not predetermine any
statistical assumptions and people who are interviewed, known as “respondents” might
be close-by and willing to participate (Griffee, 2005).

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.

22
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.

3.9 Analysis Method


According to Cho and Lee (2014, p.3), Content analysis is the “systematic process of
‘coding and identifying themes or patterns’ for ‘describing the meaning of qualitative
data”. It is a very easy-going process that can be used for a variety of diverse media and
forms such as transcripts of semi and unstructured interviews, case studies of
establishments, and business documents. It is not a research method an approach to the
analysis of documents and texts (Bryman, 2012).

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).

3.10 Trustworthiness, Reliability, and Validity


Trustworthiness refers to the measure of confidence in the data of a study, interpretation
and methods used to maintain the dignity of the research (Connelly, 2016). Korstjens and
Moser (2018) define trustworthiness as the extent to which the finding of the research can
be depended upon.
Data is considered to have integrity when it is acceptable or dependable (William and
Morrow, 2009). Regarding qualitative research, a typical component of integrity is a
clearly expressed and referenced plan or analytic approach. Moreover, it is mandatory
that researchers of a study provide evidence of collecting adequate quality and quantity
of data. It is a must to know that trustworthiness goes beyond factors associated with the
sample size of data. Therefore, we made sure that the participants used for this research
were given the freedom to include diverse viewpoints that helped in this course.
Moreover, we presented evidence of how the interpretations indeed fit the data we used
for the study (William and Morrow, 2009).

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.

3.12 Summary of Research Process and Methodology


The overall process of the study conducted throughout this research is shown below in
figure 3. Starting with the Operationalization of the Interview and online survey questions
linking with theories, our research continued with local businessperson interview
responses and consumers’ responses from the online survey as units of analysis. A mixed
method is used. For qualitative method, inductive approach is used through interviews
and for qualitative method percentage method is used for close-ended questions. Finally,
content analysis method has been used for analyzing the data of the study.

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

Source: Own Construction

3.13 Limitations of the Methodology


DeJong et al. (2004) states that when inductive approached is used in a study, the readers
have the possibility of not seeing how different interventions fit together. Therefore, the
second approach of the study requires to incorporate theory at some level. Authors of this
study were not able to gather secondary data to incorporate with the different
interventions found which leads to a limitation for the inductive method faced for this
study.

The fundamental disadvantage of percentage frequency distributions is the loss of detail,


especially when continuous data are categorized into classes and the information for
individual cases is not available anymore (Salkind, 2010, p.507). Even though the online
26
survey questions are closed questions which can only be answered by yes or no, the
authors of the current study were not able to gather any other information about the
respondents apart from their gender. This loss of information about the respondents is a
limitation we faced during this study.

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.

4.1 Empirical evidence from Interviews

4.1.1 Country of Origin


Country of origin plays an important role in the consumer perception of the cosmetics
consumers. Interview participants stated that consumers come mostly looking for foreign
branded cosmetics when they come to purchase cosmetics at their shops.

“Customers usually seek global brands more. I prefer to sell global brands. Global
products offer a higher profit margin” (P6).

The effect of country of origin as a factor influencing consumer perception of cosmetics


consumers in Bangladesh may not be the same in the cities and the rural areas.
Participants mentioned that in the rural areas, local cosmetics are preferred. Availability
of global branded products are not widespread in rural areas.

“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.

4.1.2 Psychological Attributes of Consumers


The cosmetics consumers of Bangladesh have matured over time and know a lot more
about cosmetics products compared to the past. Interviewees stated that due to this
availability of new knowledge, the demand and availability for cosmetics has increased
rapidly over the years.

“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.

4.1.4 External Attributes


Factors such as advertisement and recommendation from peer group also plays a crucial
role in consumer perception. Even though the competition from the global branded
cosmetics is extreme at times, interviewees have stated that the customer base is growing
rapidly.

“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

Figure 4 – Finding from the Online Survey

Online Survey Results


90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Q1 Q2 Q3 Q4 Q5 Q6 Q7

Yes No

Source: Own Construction from collected data

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.

4.2.3 External Attributes


Respondents reaction to Q7 indicates towards the external factors that influence consumer
perception. 81% of the respondents have stated that they get their desired product in the
market. The widespread availability of the cosmetics plays a crucial role in terms of the
consumer perception of the cosmetics consumers in Bangladesh.

4.3 Summary of the Empirical Findings


The summary of empirical findings is gathered according to the reflected factors
identified in consumer perception in Bangladeshi cosmetics market in table 6 below.

33
Table 6 – Summary of Empirical Findings linking with Factors

Empirical Findings Factors


- Consumers come mostly looking for foreign branded
cosmetics when they come to purchase cosmetics at their
shops. Country of Origin
- In the rural areas, local cosmetics are preferred due to low
availability of global branded cosmetics.
- Due to product knowledge being easier to access, the
demand and availability for cosmetics has increased Psychological
rapidly over the years. Attributes of
- Counterfeit cosmetics cause trust issues in the mind of Consumers
consumers of both local and foreign branded cosmetics.
- Customers in the rural areas of Bangladesh are not as much
familiar with the global products, hence local products are
more popular there.
- There is a lack of availability of global branded cosmetics Place where product
in rural areas of Bangladesh is sold

- Competition from the global branded cosmetics is extreme


but the customer base is growing rapidly.
- Local cosmetics brands are lagging in terms of market
research and are unable to properly target their customer External Attributes
segment.
- 81% of the respondents have stated that they get their
desired product in the market.
- Only 21% respondents felt satisfied with the quality of the
local brands.
- 74% respondents would not switch to local cosmetics
products even if they received better quality products from Quality
them.
- 45% of them can see improvement in local cosmetics
products.
- 76% respondents buy separate cosmetics for men and
women.
- 67% of the responding cosmetics consumers have stated Consumers’ own
that cosmetics have become a crucial part of their regular Characteristics
lives.
- 23% respondents admitted using locally manufactured
cosmetics
Source: Own Construction

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.

5.1 Country of Origin as a factor of Consumer Perception


Reviewing the responses, we received from our interviewees, it is quite evident that
country of origin plays a significant role in influencing consumer perception. Consumers
reportedly come looking for foreign branded products. Respondents have hinted towards
the fact that if the cosmetics they are looking for is made in a developed country, they
perceive that the product that is made in the developed nation is of superior quality and
can be trusted. This was supported by Alam (2020) who has stated that country of origin
plays a huge role influencing consumer perception in the cosmetic market of Bangladesh.
Results of the interview is also supportive of the statements made by Kaynak et al., (2000)
who also through their study finds that products that derive from the developed nation are
perceived to be attractive in the eyes of the customers regarding quality, performance and
well crafted. Additionally, our online survey reveals that majority of the consumers are
not happy with the locally made cosmetics brands and very negligible number of
consumers use local branded cosmetics in their daily life.

5.2 Psychological Attributes as a factor of Consumer Perception


Psychological attribute is another factor that evidently instigates consumer perception.
Consulting with our interviewees we can establish that one of the biggest changes they
can point out in the last few years is that consumers are more knowledgeable about the
cosmetics than they were before. This has had a direct effect on the demand and the
incoming of foreign branded products as per the respondents. Respondents have stated
that counterfeiting problem negatively affects the psychology of the consumers as they
feel skeptical about the available cosmetic products. Consumers are also more conscious
about psychological motives such as looking pretty, more attractive, and being socially
more acceptable. Majority of our online survey respondents have admitted that cosmetics
have become an integral part of their lives. As discussed in our literature review, Showrav
(2018) has also found in his research that psychological attributes play a significant role
in purchase and usage of cosmetics in the context of Bangladesh.
35
5.3 Place where product is sold as a factor of Consumer Perception
Consumer perception can be influenced by the place where the products are sold. As our
interviewees suggested, the demand of local or foreign branded products can be more or
less, depending on which specific location of Bangladesh they are being sold at. For
example, our interview respondents have indicated that local brands enjoying an upper
hand in terms of market share in rural areas compare to global brands and in city and
urban areas, the situation in vice versa. But in recent times, global brands have
concentrated on reaching to rural market customer segments. As per the respondents, the
global brands have already spotted the less availability of foreign products in the rural
markets and have started to target the market there. This phenomenon goes along the same
theme as stated by Pantano (2011). He states in terms of product arrangement and product
exhibition, place where product is sold can have a significant influence on consumer
perception.

5.4 External Attributes as a factor of Consumer Perception


We have observed from the responses of our interviewees that external factors like the
rapid growth of consumer base in the midst of fierce competition in the cosmetics market
in Bangladesh, lack of market research of the local cosmetics brands, their failure to
properly target their customer segment are playing a significant role in shaping consumer
perception in the minds of cosmetics consumers of Bangladesh. From our online survey,
we can see that the major availability of their desired products in the market can also be
identified as an external factor. These external factors have also been identified in the
study conducted by Showrav (2018) who also finds that external factors such as
advertisements and recommendations from peers has the ability to influence consumer
perception in the cosmetics market in Bangladesh.

5.5 Quality as a factor of Consumer Perception


Analyzing the answers of our interviewees reveals that one of the reasons why consumers
choose products from global brands over the local ones is that the global products are of
superior quality. Majority of our online survey respondents are also not satisfied with the
efforts made by the local manufacturers in terms of quality. This has led to the increase
in demand of the global products in the Bangladesh cosmetics market. This finding goes
along the finding of the study conducted by Alam (2020) who observes that because of

36
perceived to be of superior quality compared to local branded cosmetics, internationally
branded products draw attention of the cosmetics consumers in Bangladesh.

5.6 Consumers’ own Characteristics as a factor of Consumer


Perception
Our empirical findings suggest that consumers’ own characteristics have the ability to
influence consumer perception. Majority of our online survey respondents have stated
that they buy separate cosmetics for men and women. Our interview respondents have
also mentioned that cosmetics is gradually becoming popular among men also. A lion
share of cosmetics consumers have admitted to perceiving cosmetics as an integral part
of their daily lives and consider it as a basic need. Both the interview and the online
survey point towards the fact that local cosmetics products are far less popular in
contrast to the internationally branded cosmetics. These characteristics evidently
influence the consumer perception of Bangladeshi cosmetics consumers. As discussed
in the theory section, Pantano (2011) also states that consumers’ own characteristics
such as their religious view, opinion and lifestyle has the authority to influence
consumer perception. His study findings are parallel to the interview responses and
internet survey results of our study.

5.7 New Factor identified from the Findings


Increased disposable income is a newly identified factor of consumer perception in the
context of Bangladesh cosmetics market. This is a new finding of this study. Bangladesh
undoubtedly falls under the category of said emerging markets in Asia (Nurunnabi and
Alam Hossain, 2012). As we have discussed earlier, with the new rising disposable
income and the rise in the number of middle to middle-affluent income consumers willing
to spend more and more on cosmetics, the statement above is well in line with the trend
we have experienced from our question and answer session with the local business
owners, distributors and importers from different parts of Bangladesh. The market
experienced respondents’ answers regarding the significant change and the direction of
the evolution of Bangladesh cosmetic industry indicates that demand for cosmetics has
been skyrocketing and the overall picture of the industry has changed drastically over the
last few years with massive increase in sales and revenue and increased ease of access to
diverse cosmetic products. Adding to that, our internet survey findings also support this
finding as the participating consumers of cosmetics have admitted to the fact that
37
cosmetics have become an inevitable part of their daily life and they buy different
cosmetics for men and women.

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.

According to Bechan and Hoque (2016) the increase in number of middle-class


individuals along with rising disposable income, growing urbanization, more females
entering the workplace contributes to the ever-increasing demand for luxury cosmetics.

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

Source: Own Construction

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

External Factors Influencing


Attributes Consumer Perception
Regarding Cosmetics
Purchase in Bangladesh
Quality

Consumers’
Own
Characteristics

Increased
Disposable
Income

Source: Own Construction

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.

6.1 Factors Influencing Consumer Perception of Cosmetics Consumers


in Bangladesh
The objective of this study was to examine the factors that influence consumer perception
regarding cosmetics consumption in Bangladesh. We wanted to investigate the depth of
the effects and what are the major factors which have a role on those effects. It was
initiated on the premise of a lack of current literature which did not have strictly
Bangladeshi cosmetics market in mind. Therefore, this study was undertaken to fulfill
this gap in the current literature. To this effect, this study sought to find answers regarding
the factors that effectively motivate consumer perception in the mind of the cosmetics
consumers in Bangladesh. Prior to finding these answers, it is imperative that a summary
of the definition of consumer perception is given. Consumer Perception is the first
impression a consumer envisions and based on that selects and interprets information to
shape an impression of the product which in turn gives the consumer the urge to obtain
that product.

6.2 Answer to the Research Question


We were set to find the factors that influence consumer perception in the consumers of
cosmetics in Bangladesh. Through the literature review, we identified quite a few factors
that influence consumer perception from a general product’s view and also from
Bangladesh cosmetics market. We cross-examined these factors with the factors that were
revealed by our interview respondents and the online survey that we conducted. Our study
found that the factors that significantly affect consumer perception of the Bangladeshi
cosmetics consumers are country of origin, psychological attributes of consumers, place
where product is sold, external attributes, quality, consumers’ own characteristics, and
increased disposable income. Increased disposable income is the new factor that was not
present in the literature discussion but was found during the course of the analysis. It was
evident from the interviews and the online survey that improved financial situation of a

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.

6.3 Theoretical Contribution


This study has contributed to the literature on factors influencing consumer perception
regarding cosmetics consumers. From the existing literature covering consumer
perception, it can be observed that there is a significant research gap in the studies
conducted with strictly cosmetics consumers kept in mind. To develop the study, we
collated literature on the consumer perception models in general with identified factors
that were contemporary. As such an initial model (Figure 2) was designed based on those.

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.

6.4 Managerial Contributions


Our study aimed to ascertain the effective factors that influence the minds of cosmetics
consumers in Bangladesh regarding cosmetics products available in the market. Through
the analysis of the interviewees and the responses of the online survey, we encounter few
suggestions which can positively change the consumer perception towards the local
cosmetics products in Bangladesh in the future. The local branded cosmetics
manufacturers will require to observe the following.

➢ 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.

6.5 Reflections on the Study and Suggestions for Future Research


This study was conducted through a mix method with participants from the market players
of cosmetics market and consumers of cosmetics in Bangladesh. This study can be
enhanced when its scope is extended including more interviews and taking survey of a
greater size of population from different age groups which enables identifying consumer
perception according to various age groups. Additionally, a quantitative study conducted
with larger scale data can be more effective in establishing conclusive evidence of the
factors that influence consumer perceptions in Bangladeshi cosmetics market.
44
Moreover, the study includes only the perspective of the local business owners and
consumers. To get a clearer picture, further research can be conducted from the
manufacturers’ point of view. Also, there is no significant empirical evidence of how
foreign branded cosmetics are entering Bangladesh market. It would enhance and capture
whether the massive availability of foreign branded cosmetics affect the consumer
perception also.

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

Appendix 1: Questionnaire for interviews


1. How long have you been involved with the cosmetic business?
2. Over the years, what is the most significant change that you have noticed?
3. How did the cosmetic industry evolve over the period?
4. Where do the local manufacturers stand in terms of competition with global brands?
5. Do you prefer selling local products or global products?
6. How does a customer approach the local cosmetic brands?
7. Do global products give you a higher profit margin or local products?
8. If a company wants to introduce a new brand in the market, who will be the main
opponent?
9. How the imports of global cosmetic brands are affecting the local manufacturers?
10. Do you think local companies are losing the market share to global brands?
11. We live in the era of globalization; more global brands will find their way to
Bangladesh. How do you predict the future of local cosmetic manufacturers?
12. Do the products of global brands have a consistent price?
13 Do you often get products that are coming in illegal ways?
14. We have heard that there is also a problem with counterfeit, how does this affect the
market?
15. Do you have any suggestions for the local cosmetic manufacturers?

Appendix 2: Questions of the Facebook Online survey.

1. When buying personal care products, do you buy different products for the male and
female members of your family?
Yes/No

2. Are you satisfied with the efforts of local cosmetic manufacturers?


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

6. Do you find any improvements to the products of local manufacturers?


Yes/No

7. Do you always get your desired product in the market?


Yes/No

55

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