IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828

Vol. 2, No.6, December 2013

Impact of Promotional Activities on

Consumer Buying Behavior: A Study of
Cosmetic Industry
Ms. Shallu
Assistant professor, Delhi College of Arts &
Commerce, University of Delhi
Delhi, India

Ms. Sangeeta Gupta

Assistant professor, Delhi College of Arts &
Commerce, University of Delhi
Delhi, India

Abstract-

it also consist of various promotional gimmicks

such as dirigibles at football games, on pack
offers, coupons, sweepstakes and games. In the
todays competitive scenario the goal of the
organizations is brand awareness, product loyalty
and corporate image. Earlier the main goal of
promotion used to be longer product awareness.
Cosmetics sector one of the fastest growing
industries in India.Cosmetics are mixtures of
surfactants, oils and other ingredients. The
cosmetics industry in world is a multi-billion
dollar industry. Promotional activities are
important in changing consumer perception
about a brand. New brands of cosmetics to
appeal to various population sectors are
constantly being developed.

Present study mainly aims at exploring the

various factors that influences consumer buying
behavior and purchase decision and to identify
the various promotional activities used by the
sellers in order to motivate the consumer buying
behavior and purchase decision. This study
consists of Indian cosmetic industry. It is one of
the fastest growing industries in India. Cosmetics
are mixtures of surfactants, oils and other
ingredients. The cosmetics industry in the world
is a multi-billion dollar industry.
Being the study exploratory as well as
descriptive in nature, findings have been made
through snap survey analysis which consisted of
200 consumers in the market. The questionnaire
designed for this purpose to know about the
Impact of Promotional activities on Consumer
buying behavior. Findings have also been made
theoretical analysis in order to provide in-depth
analysis into the way different promotional
factors influence consumers decision-making
processes.
It
has
been
found
that
p r o m o t i o n a l a c t i v i t i e s have positive
effects on consumers, purchasing behavior or
brand choice in cosmetic industry.
Keywords - Promotional activities, Consumer
buying behavior, cosmetic industry, cosmetic
sector.

Introduction
Promotion is fundamentally a tool to spread the
information about the products and services
available to them. However, promotional
activities today not only include advertising but

Value growth was also driven by changing

consumer perception, whereby most cosmetics
are increasingly considered as essential items for
daily use, rather than as luxury products for
indulgence. Growing from a smaller base, niche
products witnessed the most dynamic value and
volume growth.
In order to improve the marketing strategies the
organizations have to study the consumer by
understanding the following issues:
The psychology of how consumers
make decision between different
alternatives (e.g., brands, products, and
retailers)
The psychology of how the consumer is
influenced by his or her environment
(e.g., culture, family, signs, media)
Lack in consumer knowledge or
information
processing
abilities
influence marketing decisions and
outcome;

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IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
Vol. 2, No.6, December 2013

How The behavior of consumers affect

marketing decision while shopping or
making other decisions
The effect of consumer motivation and
decision strategies while deciding
between two different products
How marketers make and improve the
existing strategies in order to reach the
consumers effectively

Customer behavior study is based on consumer

buying behavior. The consumer plays three roles
of user, payer and buyer. For understanding
consumer buying behavior marketer uses
Relationship marketing. It is considered as an
influential asset. Relationship marketing helps in
understanding the true meaning of marketing as
it consider the importance of the customers,
customer
relationship
management,
customization; Consumer retention, one-to-one
marketing and personalization are also
considered important by the marketer for
analyzing the consumer behavior.
Objectives
1) To identify the various factors that
influences consumer buying behavior and
purchase decision.
2) To identify different modes of promotional
activities and their importance in motivating
consumer buying behavior and purchase
decision of consumers in cosmetic industry.
Literature Review
Marketers follow Customer Rules thus their
primary responsibility to the organization is to
gain knowledge of their customers: what satisfies
them and makes them happy and what benefits
they are seeking in the marketplace.
Researchers in marketing have studied most
areas of consumer behavior including the impact
of everything as to how people behave and how
they consume products. Hence the fact is that we
live in a consumption-driven culture. Therefore
marketers focus on the basic constructs accepted
today in the study of buying behavior.
According to Schiffman & Kanuk, 2004, four
different views are considered for understanding
consumer decision making process and
behaviour. According to him first is economic
view. According to this view point consumers

are facing imperfect competition in the market

and it is expected from the consumers that they
have full knowledge about the products in the
market and would make the decision rationally.
They can rank the positivity and negativity about
the different alternative in the market and select
the best alternative out of all. Second is Passive
View. This view is totally opposite to economic
view and according to this view consumers make
irrational decision and they are very impulsive
and they easily got influenced by marketer
promotional technique. Similarly third is
Emotional View. According to this view
consumer make buying decision based on their
emotional association or feeling about the
products and services. Fourth and most
acknowledged view is Cognitive View
according to this view consumers are thinking
problem solver Consumers buying behaviour is
based on information seeking and processing
attributes
usually
directed
by
a
goal.(Papers4you.com, 2006).
Despite the various studies on these four types of
decision making but it can be considered as a
valid argument that these four behavior exist
while making the buying decision and provide
the guideline for the analysis of consumers
accordingly by the marketers.
Batra & Kazmi (2004) asserts broader stages of
a consumers decision making process that
includes problem identification (feeling need of a
new car), information search ( on internet and
showrooms),
evaluation
of
alternatives
(comparing brands, for instance on basis of
repute and features), outlet selection and
purchase ( purchasing selected item) and postpurchase action (satisfaction or dissonance).
Research Methodology
Research methodology of this study consists of
following procedures:
Research Design: Being the study descriptive as
well as exploratory in nature, it will go through
sampling, data collection, and its analysis.
Source of Data: This study is mainly based on
primary data collected through a snap survey
using the questionnaire designed for this purpose
to know about the Impact of Promotional
activities on Consumer buying behavior. In
addition to this secondary data has also been

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IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
Vol. 2, No.6, December 2013

gathered from various newspapers, journals,

magazines and websites.
Sampling:
Sample size: 200
Sampling unit: Individuals at the market
(consumers)
Type: Deliberate/ purposive sampling has been
taken.
Research Method: Study is based on sampling
not the census method which limits its
universality.

and Ethers, Perfumed Hair Oil, Talcum Powder,

Kajol, Sindoor, Kum-Kum, Bindi and Herbal
Cosmetics and Toiletries. The Indian Cosmetics
Industry can match International Standards when
comes to quality, price and range. The industry
holds promising growth prospects for both
existing and new players.
Brands (International):
LOreal, Revlon, Maybelline, Garnier, Almay,
Max Factor, Neutrogena, Borghese, Adrein
Arpel, Nivea, Unilever Group, Body Shop,
Ponds
Brands (Indian):
Lakme, Ayur, Himalayas, Vicco, Shehnaz,
VLCC, Biotech

Consumer Buying Behavior

Consumer behavior considered as the mental and
emotional process and the observing behavior of
consumers during searching, purchasing and post
consumption of a product or service. Consumer
behavior involves study of what they buy, why
they buy, how they buy, and when they buy.
Consumer behavior consists of four basic
elements these are psychology, sociology,
economics and anthropology. These consumer
behaviors also consist of the influence of groups
such as family, friends, reference groups and
society in general on the consumer buying
process. Buyer behavior has two aspects: the
final purchase activity visible to any observer
and the detailed or short decision process that
may involve the interplay of a number of
complex variables not visible to anyone.
Cosmetic Industry at a Glance
Cosmetics sector one of the fastest growing
industries in India. They should be effective,
long lasting, stable and last not least safe to
human use. The demand of cosmetics is
increasing day by day. New cosmetics brands are
developing and entering into the market. The
industry produces a large number of products
which consists of nail products, creams, shaving
creams, shaving products, and perfumes, all
types of hair products, mouthwashes, lipsticks,
deodorants and lotions. Standards for the
materials used in these products have been
upgraded and many are now equal to the material
specifications for the pharmaceutical industry.
The Indian Cosmetic Industry consists of
traditional and the modern types of cosmetics.
Traditional Toiletries items are like Perfumes

Mode of Promotional Activities used in

Cosmetic Industry
The concept of ego:
According to Freudian Psychoanalytic theory
most of the cosmetic brands tries to position
itself on the basis of its appeal to the consumers
which have an ego. This means that the
consumers have an impulsive drive for which
they seek immediate satisfaction.
Women all over the world as well as women in
India always expected to look good. Women
always prefer those products which make them
to look good and improve style. Now With
globalization and liberalization of Indian
economy Indian women are not confined to her
home now they work and contribute to the
growth of Indian economy. Because of this
Indian women now are more concerned to their
looks.
The concept of personality groups:
Mostly cosmetic brands try to woo the
consumers according to Karen Horney's
classification of personality groups i.e. people
who move towards others. Women are always
preferred to look good and beautiful not only in
western countries but also in India.
Women loves if anyone appreciates their
beautiful, so it has become custom of the society
to look beautiful and get appreciated. So it would
be prudent to say that according to the societal
norms a women has to look good at all times and

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IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
Vol. 2, No.6, December 2013

which has a bearing on the psychology of female

consumers towards cosmetic products which
help them achieve that desired look.
Concept of perceptual selection:
On the basis of perceptual selection, in the
competitive scenario brands have tried to
position itself among its consumers in the
following ways:
In order to gain the attention of its consumers
brands have made their packaging and print
advertisements attractive. Looking at the product
depth it is pretty evident that brands have come
up with the number of products in the market
according to the need of the consumers in the
cosmetics industry.

3) Do quality advertisements change your

perception about the product?

Now consumers have easy access to high quality

products and with rising disposable income and
size of the Indian middle class consumers shifted
their attention to foreign players.
These are only some of the modes promotional
activities that cosmetic brands undertake
however trends are ever changing and so is the
consumer needs and desires. Promotional
activities are a tool to create brand awareness
and there by are required by every field and
cosmetic industry is no exception.
Data
Analysis
Interpretation

4 ) Do you buy a cosmetic product after

watching its advertisements?

and

1) How often do you buy cosmetics?

5 ) According to you what kind of

advertisement has long lasting impact in
terms of cosmetics?

2) Which factor influences you the most

while choosing your cosmetic brand?

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Vol. 2, No.6, December 2013

6) What motivates your purchasing

process in terms of cosmetics?

9) How often you recommend a cosmetic

brand after watching its advertisement?

7 ) Does celebrity endorsement influence

you to buy any cosmetic product?

10) Do you recommend cosmetic brand

depending on your past experience?

8) Do you believe cosmetic brands

endorsed by celebrities are of good
quality?

11) Do you think promotional activities are

must for a cosmetic brand to attain
success?

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IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
Vol. 2, No.6, December 2013

updated with the customers demand;

cosmetic
industry
has
immense
opportunities even for the new entrants
hence to remain ahead in competition its
important to be updated with customers ever
changing needs.
3) Today innovation is the key to success.
Sophisticated promotional mix can help in
attracting customers with regular offers with
match up the latest trends in order to capture
the market.
Conclusion
References
As per the analysis promotional
a c t i v i t i e s actually work; that is, have any
positive effects on consumers purchasing
behavior or brand choice in cosmetic industry.
This study attempts to provide an in-depth
analysis into the way different promotional
factors influence consumers decision-making
processes. Consumers do give importance to
advertisement be it T.V or newspaper while
choosing their brands. Reference group influence
is also observed to be dominating; word of
Mouth does play a vital role.
The usage of celebrity endorsements has been
confirmed to result in more favorable
advertisement ratings and positive product
evolutions. Marketers have heavily relied on
different forms of promotional activities like
celebrity endorsement, because they believe in
its positive impact of assisting in improvement
of brand awareness, brand equity, and even
financial returns. Besides returns on the financial
aspect and brand awareness, using celebrities in
advertisements can be a shortcut to assisting
brands in gaining recognitions. All these efforts
may be contributions in creating brand loyalty.
Recommendations
1) Sales performance will tell if the
promotional activities are working. Unless
the sales response to the promotional
activities is immediate and overwhelming, it
is almost impossible to use sales data to
judge the effectiveness. So it is
recommended to keep a check on the sales
performance and depending upon the result
of the consumer purchase decision it should
be altered.
2) Regular surveys should be conducted
regarding effectiveness of the promotions as
it is mandatory for the marketer to remain

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Vol. 2, No.6, December 2013

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AUTHORS PROFILE
1) Ms. Shallu
Assistant Professor
Department of Commerce
Delhi College of Arts and Commerce, University
of Delhi
New Delhi, India
Email: [email protected]

Model of Study of Cross-Cultural Business

Relationships,
Journal
of
Business
Research. 42, 135-143.
1 5 . L.L.Kanuk, Leon.G.Schiffman; Consumer
Behavior 9th edition.

2) Ms. Sangeeta Gupta

Assistant Professor
Department of Commerce
Delhi College of Arts and Commerce, University
of Delhi
New Delhi, India
Email: [email protected]

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