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Research methodology and analysis for cosmetic issues

3827 words (15 pages) Essay in Marketing

5/12/16 Marketing Reference this

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This chapter will focus on the collected results and explain the analysis. As the data showed, female were more willing to cooperation the research while men showed to be reluctant to answer the questionnaire.

4.1 Profile of Respondents

Owing to the research is about young people in Shanghai, so the age category is about 18-35 and above 60% of respondents is 18-24, one-third 25 to 29, only less than 10% is older than 30 years old. It is the fact that cosmetics issues still are kind of girls’ topic, boys are less willing to do the questionnaire, and 50 of 158 male did the questionnaire. Since the most of respondents are younger than 30 years old, the rate of marriage is relatively low, 10.8% of participators are married and the majority of respondents are single. In addition, the number of students is the same as with the number of people worked in business, 37.3%; followed with respondents employed in service sector. In terms of more than one third of respondents were students, the income level is relatively low. The income amount of 60% of respondents is less than 3000 RMB, nearly two-thirds of these people’s monthly income is less than 2000BMB. 17% respondents showed that their regular monthly income is from 3000 to 3999 RMB, while less than 4% respondents’ salaries are more than 8000 RMB per month. According to statistics aired by Shanghai government (2008), the annual disposable income of local urban residents is 26,675 Yuan, and it means that regular monthly income of residents is 2,222 Yuan after tax. It is obviously that lower-income respondents shared a majority of the whole respondents. At the same time, half of respondents owned a Bachelor degree, followed by master degree (22.8%), and college (14.6%).

Table 1

Monthly expenses * Regular monthly income: RMB Crosstabulation

Regular monthly income: RMB

Total

Less than 2000

2000

-2999

3000

-3999

4000

-4999

5000

-7999

More than 8000

Monthly expenses

Less than 200

26(44%)

10(28%)

6(22%)

2(12%)

3(23%)

1(17%)

48(30%)

200-499

20(34%)

15(42%)

14(52%)

7(41%)

1(8%)

0

57(36%)

500-999

9(15%)

7(19%)

5(18%)

7(41%)

4(31%)

2(33%)

34(22%)

1000-1499

4(7%)

3(8%)

1(4%)

1(6%)

5(39%)

2(33%)

16(10%)

1500-1999

0

0

1(4%)

0

0

0

1(0.6%)

More than 2000

0

1(3%)

0

0

0

1(17%)

2(1.4%)

Total

59(100%)

36(100%)

27(100%)

17(100%)

13(100%)

6(100%)

158(100%)

Above Table is the cross tabulation of monthly expenses to cosmetics products with regular monthly income.

As indicated above, 37% of the respondents’ monthly income is lower than 2000 Yuan, and 40% of them spent on cosmetics products on average are less than 200 Yuan, while still large number of them spend 200-499 Yuan on cosmetics products.

Moreover, majority of the respondents who earn from 2000 to 4999 Yuan per month spent 200-499 on cosmetics products. And 41% of respondents who monthly income is 4000-4999 are likely to cost 500-999 Yuan on cosmetics products. It seems that 4000- 4999 Yuan monthly income is the breakthrough point of purchase cosmetics products. Those respondents whose average salaries are more than 5000 Yuan, they are more willing to spend much money on cosmetics products.

However, there is one respondent who earns 2000-2999 Yuan per month felt he or she will spend more than 2000 Yuan to buy cosmetics products. This result may explain the opinion of Schmitt (1997), the strong aspirations to cosmetics of young people, especially young women. As whole, majority respondents rend to spend 200-499 Yuan on cosmetics products, followed by less than 200Yuan (30%), and 500-999 Yuan (22%). The expenses to Cosmetics products seem as important consumption expenditure compare with the total monthly income. Meanwhile, although the world cosmetics markets are suffering a downtrend, cosmetics market in Shanghai seem as a new paradise for cosmetics enterprises.

4.2 Influence of Marketing Mix Communications

Table 2

Brand vs product

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly agree

24

15.2

15.2

15.2

Slightly agree

42

26.6

26.6

41.8

Neutral

71

44.9

44.9

86.7

Slightly disagree

14

8.9

8.9

95.6

Strongly disagree

7

4.4

4.4

100.0

Total

158

100.0

100.0

When buying cosmetics products, respondents indicated that neutral attitude to brand image. This means that respondents are likely to care about the product itself rather than the brand. 44.9% of the respondents felt they care more about brand than product when purchase cosmetics products. On the other hand, talking about the price of the cosmetics products, the total mean of attitude between price and products is shown relatively positive (2.30). Respondents thought if they want the cosmetics products, they would buy it and not influenced by the price. One-fifth of respondents showed strongly agree that they would buy the product when they need to and would ignore the price. While there are still one-third respondents are likely to be neutral.

Cosmetics products share the characteristics of products in maturity stage. Respondents showed a relatively weak brand loyalty to cosmetics products. Although they may loyal to some brand but still they will try on variety brands.

Price vs product

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly agree

33

20.9

20.9

20.9

Slightly agree

59

37.3

37.3

58.2

Neutral

54

34.2

34.2

92.4

Slightly disagree

9

5.7

5.7

98.1

Strongly disagree

3

1.9

1.9

100.0

Total

158

100.0

100.0

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

Brand vs product

158

2.61

.996

.079

Price vs product

158

2.30

.929

.074

Varieties of products

158

2.25

.957

.076

Loyalty to brands

158

2.31

1.070

.085

Table also displayed that majority respondents are likely to try varieties of brands. 22.2% of respondents showed strongly preference to trying varieties and only 2.5 % of respondents refuse to try varieties brands. But when asked question about loyalty to brands, there are 27.2 % of respondents felt that they are loyal to brands, and only 3.8% of responds said they do not loyal to any brands. The results of this survey indicated that young people in Shanghai are a complicate customer group, on the one hand, they accept to try different brands and on the other hand, they also have a relatively sense of brand loyalty to some cosmetics product.

Moreover, when deeper to the result, it cannot ignore that, there are some people among the respondents. They are neutral to whether try on new brand or loyal to some brand, which mean they do not concern much about the brand and would buy the cosmetics product randomly.

To summary, purchasing decisions of respondents are somewhat complicated. On the one hand, they shared the features of the brand loyal purchasing decision dimension. On the other hand, they also try variety brands and indifferent to brands, which made the external factors important to affect the purchasing decision.

Table 2

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

Loyalty to brands

158

2.31

1.070

.085

As mentioned above, the scale 1-5, smaller the scale is, the more positive attitude respondents are more likely to be. So in terms of when respondents purchase cosmetics products whether they would loyal to several brands or have brand loyalty. While the mean showed respondents displayed a relatively positive attitude to this (2.31< 2.50). Meanwhile, looking at their professions, there is slightly difference in varieties jobs. People who work in business would be tend to loyal to some brand while majority of students will be neural to this, but there is large number of students showed strong awareness to brand of purchase will.

4.3 Distribution Channel and Its Influence

Table 3

Where do you often to buy beauty products?

Answer Options

Response Percent

Response Count

Department Store

71.3%

112

Supermarkets

26.8%

42

Professional stores

73.9%

117

Pharmacy chain

30.6%

48

Online shopping

15.3%

24

Others

3.2%

5

answered question

158

skipped question

0

From the literature review, it was conclude that department store and supermarkets are the two most popular distributions of cosmetics products. According to the survey, 71.3% and 73.9% respondent are usually buying cosmetics in department store and professional stores. Only 26.8% respondents displayed that their preference to supermarkets, less than pharmacy chains (30.6%). This demonstrates a different trend of the reference location of young generation buying cosmetics product. Young people in Shanghai seems be more interested in shopping in professional stores and departments. This mainly because the operational environment of these places. Department stores play a crucial role in cosmetics products distribution channels. Almost department stores have cosmetics channels including different cosmetics brands from low-end brands to luxury brands. Professional stores in this case, seems more attracted to young people in shanghai, probably because of its locations and diversification of products. Professional stores in shanghai are very easy for access, using Watsons as a typical example, as one of the major cosmetics stores, there are more than 40 professional stores in Shanghai. Watsons is also friendly for its product display, especially the consideration for female customers to lower the shelves from 1.65 meters to 1.40 meters for easy approaching for women. Professional introductory of their sales associates, which according the table below, younger customers would be more interested in these factors.

The table below indicates that what factor customers would care about when shopping in the store. Respondents showed positive intend to the all factors, in which kindness and professional of sales peoples and product quality seem to be relatively important factors above all. Product quality always is an important competitive advantage. Meanwhile, customers would pay more attention to the service part not only the core physical product, followed by the product diversification.

The results fit with researched done by Mazursky and Jacoby (1986). They discover that merchandise-related aspects and service-related aspects at the store are the most important attributes of store images. The effective store atmospheres could attract their target customers and influence their patronage behavior.

Table 4

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

Atmosphere

158

2.45

.987

.079

Sales people

158

1.99

.778

.062

Display

158

2.53

1.032

.082

Promotion skills

158

2.32

1.041

.083

Product diversification

158

2.22

.842

.067

Product quality

158

1.83

.831

.066

Promotion skills

Answer Options

Strongly Agree

 

Neutral

 

Strongly Disagree

Rating Average

Response Count

New Products Promotion

16

55

49

23

15

2.79

158

Free Samples

9

35

65

28

21

3.11

158

Brand Samples

24

50

70

8

6

2.51

158

Membership

9

54

76

12

7

2.71

158

answered question

158

skipped question

0

In order to assess the influence of promotions for purchase cosmetics products, respondents, in a whole, are likely to be neutral to the promotions tools.

34.8% of respondents (55) showed that they would probably endorse the cosmetics product in promotion even they know little about it and 31% of the respondents (49) are likely to be neutral to this. In terms of product sampling, a popular promotion tool, majority of respondents said sampling would not have a strong impact on them to purchase the cosmetics products, since 41% of respondents felt neutral to the effectiveness of product sampling. Also, respondents showed to be neutral toward the well-known brand samples. The same situation appeared in membership promotion, 48% of respondents (76) felt that they would not buy a cosmetics product because of some membership promotion, while, 54 respondents (34%) expressed that the membership promotion may influence their purchase decision of cosmetics products.

The result of the survey suggests that product sampling and membership promotion play a relatively neutral role in influencing cosmetics products buying decisions of young people in Shanghai.

4.2 Brand packaging

Table 5

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

Product package

158

2.37

1.131

.090

Product specification

158

2.18

1.070

.085

Product package

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly agree

41

25.9

25.9

25.9

Slightly agree

50

31.6

31.6

57.6

Neutral

44

27.8

27.8

85.4

Slightly disagree

14

8.9

8.9

94.3

Strongly disagree

9

5.7

5.7

100.0

Total

158

100.0

100.0

Product specification

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly agree

55

34.8

34.8

34.8

Slightly agree

39

24.7

24.7

59.5

Neutral

47

29.7

29.7

89.2

Slightly disagree

14

8.9

8.9

98.1

Strongly disagree

3

1.9

1.9

100.0

Total

158

100.0

100.0

Generally, respondents show positive to the brand packaging. 25.9% of the whole respondents considered that they are attracted by the product packaging and this will influence they buying intentions, and 31.6% of respondents they may influenced by the product packaging, only 5.7% of respondents confirmed that they pay no attention the product packaging and they will not influenced by packaging when buying cosmetics products. Meanwhile, more than one-third of respondents said that they would read the product specification when they buy cosmetics products. However, less than 2% of respondents consider that they miss the specification.

Moreover, when divided respondents into age groups as showed in appendix, it is slight difference the attitude of different age group to product appearance. Respondents who age in 18-24 are more likely to influence by product packaging then whose age is 25-29. Majority young people claimed that product packaging would impact on their buy willing. Hence, respondents who are 18-24 showed a strong awareness of product packaging when they buy cosmetics products, while 25 to 29 years old respondents would be relatively indifferent to whether read the product specification.

Table

Preferable language

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

the original name

82

51.9

51.9

51.9

the Chinese name

35

22.2

22.2

74.1

depends

41

25.9

25.9

100.0

Total

158

100.0

100.0

Table above described that when the western cosmetics brands has been translated to Chinese, what name they prefer. 51.9% of the respondents showed strong preference to call their original name and 22.2% of respondents choose to call the translated Chinese name, while nearly 26% of respondent are relatively neutral to this.

Also, the pronunciation of brand names as shown in appendix, tend to be neutral to influence respondents to buy cosmetics products. Whether the translated meaning to match its original brand image, 35.4% of respondents display a indifferent view to this, but nearly 30% of respondents felt it some important and may influence their purchasing intentions.

Brand name, one of the brand packaging attributes, reflect the consumer attitude to the cosmetics products and have impact on the purchasing decisions as well. Since Yan (1994) suggested the preference of Chinese customers, this also fit with the young generations in Shanghai. Customers prefer brand name contain with positive name. As generally accepted the Western cultural, it also reflects on their attitudes to call Western brands.

4.3 Preference group

Table 6

Group Statistics

Gender

N

Mean

Std. Deviation

Std. Error Mean

Celebrities

Male

50

2.90

1.111

.157

Female

108

2.87

1.060

.102

Cosmetics experts/specialists

Male

50

2.42

1.012

.143

Female

108

2.51

.881

.085

Friends/colleagues

Male

50

1.88

.849

.120

Female

108

1.83

.717

.069

Family members

Male

50

2.22

1.148

.162

Female

108

2.52

1.000

.096

Level of importance

Very important

Unimportant

Reference group

Number

Total

Celebrities

16

39

65

24

14

158

Cosmetics experts/

specialists

21

59

66

5

7

158

Friends/colleagues

56

73

26

3

0

158

Family members

37

46

48

25

2

158

In terms of reference group and their influence, the result demonstrated that the extent of celebrities to influence the purchase intention emerged to be neutral. The mean of level of importance of cosmetics experts or specialists appeared to be relatively positive to young customers in shanghai. Specifically, 21respondents (13%) presented that experts or specialists were very important for buying cosmetics, while 66 respondents (41.7%) thought they were neutral for endorsing cosmetics products. This is slightly different to the traditional cultural about respecting for experts.

More conspicuously, friends or colleagues seem to have relatively significant impact on young people during the process of purchasing. As prove the results of research conducted by Barnes et al. (2004). 81.6% respondents were likely to consider the opinions of friends or colleagues would be important when buying cosmetics products. In which, 56 respondents (35.4%) thought they were very important and none respondents felt that their friends and colleagues are unimportant.

As whole, family members demonstrated also a relatively positive influence to buying cosmetics for young people, 37 respondents (23.4%) felt family members were very important to their intentions, with 30.3% of respondents felt they either important or unimportant. Among the respondents, male seemed to think their family members served a more important role compared to women, since the mean of family members impact on male purchasing intentions are smaller than the mean of influence women, which the influence of family member to women displayed somewhat neutral.

Aforementioned, the influence of experts play a great role in influencing the purchasing intentions, however, the result from the survey does not conform to the traditional Chinese respect towards the authority (Barnes et al., 2004). In a word, it has relatively neutral impact on endorsing cosmetics products. On the other hand, friends or colleagues attribute to the purchasing decision of cosmetics products to a great extent, which fits with the survey conducted by Barnes and his colleagues in 2004.

4.4 The Influence of Media

According to Figure, it is clearly shown that TV is the most influential media among six mass media. 54 respondents ranked TV as the most influential resource and 52 respondents thought it as the second important media. Among the young people in Shanghai, it takes for granted that Internet is the crucial part of daily life, 50 respondents considered Internet as the second most important influential media. Moreover, magazines and billboards are also considered as effective media to cosmetics products. 47 respondents thought magazines are third important media for influencing when endorsing cosmetics products. Meanwhile, 49 respondents felt that billboards are great media provide information about cosmetics products and have impact on purchasing decisions. However, 75 respondents thought radio has limited impact on buying cosmetics products. As it is known that cosmetics advertising is strongly image-oriented, while radio offer limited image information of cosmetics. Customers would feel not very persuasive.

As review the greater detail of the table, it can be seen that respondents held more relatively positive attitude to the influence of magazine. Since 33 respondents (20%) thought it is the very important source for cosmetics products and 43 people (27%) felt it is the second important resources. Besides the television, the power of magazines seems strong as well.

All in all, young people in Shanghai showed a relatively strong preference of TV and Internet as the influential mass media to the process of buying cosmetics products. Since, televisions could provide visual and aural information about cosmetics products, which will be more persuasive. Besides, television communications as a influential mass media, advertisers have to bear in mind that this media would need relatively high financial support, cosmetics companies should compare the expected expenditure and profitability and design the marketing strategy. Internet, as scholars mentioned above, is a supplement media of cosmetics product (Oshiba ,1998) and it become one of the major media among young people for influencing purchase cosmetics products. At the same time, magazines also have strong power to impact on cosmetics buying behaviors among the young people in Shanghai. Mainly because is the large circulation of magazines and higher selective target readers. As a result, when targeting new market, advertisers should evaluate every media, and make as a media promotion package would be more specific to target the customers.

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