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MODEL DEVELOPMENT OPPORTUNITIES FOR ANALYZE CUSTOMER BEHAVIOUR IN THE COSMETICS MARKET

Authors:
  • Hungarian University of Agriculture and Life Sciences Godollo

Abstract and Figures

The aim of this study is to present our self-developed model of cosmetic consumer behaviour. The creation of the model was preceded by the exploration of the consumer side of the cosmetics market, cosmetic trends and groups, especially natural cosmetics, the presentation of cosmetic trends and factors, and (health and environment) conscious consumption, as well as a brief summary of source models. After getting acquainted with own model and its factors, a brief description of the methods of primary research planned in the future was outlined. Own model is a theoretical model, which has been developed on the basis of the processing of the literature and which we plan to modify later using the results of primary research. The most important, gap-filling objective of model development is that consumers describe the process of buying and consuming natural-non-natural cosmetic products. INTRODUCTION After a brief summary of secondary information and literature approaches on the cosmetics market (such as concepts and categories related to cosmetics, cosmetic services, their grouping options, presentation of the cosmetic market supply side and cosmetic manufacturers, analysis of the process of consumer and customer behaviour related to cosmetics and the factors influencing it) the source models determining the development of the theoretical model are illustrated. The detailed presentation of the theoretical model concludes with a brief description of the design of qualitative and quantitative primary research.
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Economics Section
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https://doi.org/10.36007/3754.2020.09
MODEL DEVELOPMENT OPPORTUNITIES FOR ANALYZE
CUSTOMER BEHAVIOUR IN THE COSMETICS MARKET
Nóra AMBERG
1
, Balázs GYENGE
2
ABSTRACT
The aim of this study is to present our self-developed model of cosmetic consumer behaviour.
The creation of the model was preceded by the exploration of the consumer side of the
cosmetics market, cosmetic trends and groups, especially natural cosmetics, the presentation of
cosmetic trends and factors, and (health and environment) conscious consumption, as well as a
brief summary of source models. After getting acquainted with own model and its factors, a
brief description of the methods of primary research planned in the future was outlined. Own
model is a theoretical model, which has been developed on the basis of the processing of the
literature and which we plan to modify later using the results of primary research. The most
important, gap-filling objective of model development is that consumers describe the process
of buying and consuming natural - non-natural cosmetic products.
KEYWORDS
Consumer and customer behaviour, models, cosmetics, influencing factors, trends, cosmetics
market, conscious consumption
INTRODUCTION
After a brief summary of secondary information and literature approaches on the cosmetics
market (such as concepts and categories related to cosmetics, cosmetic services, their grouping
options, presentation of the cosmetic market supply side and cosmetic manufacturers, analysis
of the process of consumer and customer behaviour related to cosmetics and the factors
influencing it) the source models determining the development of the theoretical model are
illustrated. The detailed presentation of the theoretical model concludes with a brief description
of the design of qualitative and quantitative primary research.
Antecedents of developing one's own theoretical model
The aim of our research is to present a theoretical model illustrating the consumption and
purchase of cosmetics and cosmetic services for the reason that there is currently no theoretical
approach or research supported by primary data that would describe domestic conditions.
The group of cosmetic products and services is also special because the development of beauty
care can be traced back thousands of years, and the use of natural substances is playing an
increasingly important role in the production of cosmetics. The manual production of natural
cosmetics plays a key role in reducing environmental pollution, which reduces machine work,
and the use of natural ingredients and packaging materials also has a positive effect on both our
environment and our health. During the study of the literature, it became clear that in the case
1
Nóra AMBERG, Szent István University, Doctoral School of Management and Organizational Sciences,
Gödöllő, Hungary, nora.amberg@gmail.com
2
Dr. Balázs GYENGE PhD, Szent István University, Faculty of Economics and Social Sciences, Supply Chain
Management, Institute of Marketing and Tourism, Department of Marketing, Gödöllő, Hungary,
gyenge.balazs.mark@gtk.szie.hu
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of consumer and customer behaviour related to cosmetics, given the special characteristics of
the range of products and services that are the subject of the decision, environmentally
conscious consumer behaviour is closely related to health awareness. The reason for this can
be explained primarily by the role of cosmetics in preventing and maintaining health.
The main research problem is to explore the reasons that make it clear why the consumer
chooses a cosmetic with a chemical composition and packaging, or why he decides to buy
natural cosmetics.
In connection with the conduct of the research, the fact that there is currently a lack of basic
research on cosmetic products and services presenting domestic conditions in Hungary also had
a serious motivating force. That is why we considered it necessary to present all the factors
influencing the consumer behaviour of cosmetics, highlighting the environmentally and health-
conscious factors. The starting point of the research is the introduction of the types of cosmetic
products, the cosmetics market, as well as the trends affecting the consumption of domestic
cosmetics, as well as the natural vs. exploring preferences related to the consumption and
purchase of non-natural cosmetics.
The definition of the different cosmetic consumer / customer groups was based on the secondary
sources presented.
The main research problem is that buyers / consumers of natural vs. whether non-natural
cosmetic products are preferred in Hungary.
Grouping of cosmetics and cosmetic services
Cosmetics can be grouped according to the purpose and function of the products, where the
main product groups are skin care products, hair and scalp care products, nail and nail bed care
products, and oral care products. Cosmetics can also be divided into product categories,
ingredients, active ingredients, packaging materials, cosmetics classification, certification,
manufacturers, production technology, brands, ingredients and product origin, commercial
turnover, contact information, advertising. Cosmetic services can be grouped according to the
cosmetic products used in the beauty industry, the cosmetics offered for sale and the cosmetic
service providers [1] [2].
In the cosmetics market, natural (eco, organic, organic, vegan) and non-natural (chemical)
cosmetics can be distinguished on the basis of cosmetic ingredients and packaging materials,
but there are also intermediate (temporary) cosmetics that contain both chemical and natural
ingredients. (Regulation (EC) No 1223/2009 of The European Parliament And of the Council
of 30 November 2009 on cosmetic products does not regulate the different types of cosmetics
(natural, organic, eco, organic, vegan), but only in general terms about the different dimensions
of cosmetics) [3] [4] [5].
The cosmetics market
In connection with the cosmetics market, it can be briefly stated that the demand side is
represented by the consumers and buyers of cosmetics, and the supply is represented by the
producers and manufacturers of cosmetics. In the cosmetics market, natural cosmetics are
increasingly appearing on the offer of large companies in the name of sustainability, which are
placed on store shelves with natural ingredients / in natural packaging. In parallel with the
expansion of this range of natural cosmetic products, conscious consumption comes to the fore,
i.e. health and environmental protection, price, value and brand awareness, as well as awareness
in finance, goals and consumer rights, which are “responsible, conscious trends”. It is also an
important aspect to examine the origin and origin of a given cosmetic product. The conscious
consumer is constantly looking for information about the range of cosmetic products in order
to make the right decision when choosing cosmetics [6].
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Trends affecting the cosmetics market
Trends in most countries of the world fundamentally determine development trends. Trends can
radically change everyday life, including changes in consumer behaviour [7].
Trend forecasts are made using different trend forecasting methods, which are influenced by
past trend movements, retail, market and consumer developments, opinion leaders, the world
of catwalks and fashion, drawing inspiration from art, design, technology, from science, food
and the influence of international events, research in exhibitions around the world, and personal
intuition [1].
One of the main features of today's society is speed, which can be measured in accelerated time,
pace, performance, and thirst for knowledge, consumer expectations, and consumption itself.
Today, the beauty and health industry is one of the fastest growing industrial and service sectors
[8] [9] [2]. In recent years, the cosmetics industry has dramatically diversified its managerial
and market orientation to meet customer needs as the response to customer trends has increased
toward a healthier lifestyle and the demand for natural cosmetics [10]. The cosmetics industry
is a very important industry, as the use of personal care products and cosmetics has always been
an important part of consumers’ lives. Mentioned as an example, in 2013, the global cosmetics
market grew by 3.8% compared to 2014 [11].
However, the shift towards green, sustainable, natural products is steadily increasing in the
market for cosmetics and personal care products [12]. The market for “green” products is
expanding widely in many industries, such as the food, fashion and cosmetics industries [13].
Currently, an important trend is the interest in the natural ingredients of cosmetic products in
the consumer market. Demand for herbal products reduces demand for products containing
other ingredients. Consumers are looking for individual, unique products that fully meet their
personal expectations, which are increasingly geared towards health and environmental
awareness. In countries where GDP is growing, there is a positive trend in consumers' lifestyles,
as they have more discretionary incomes, which is reflected in increased demand for skin care
products, and in which the use of natural ingredients also plays an important role. Changing the
style of packaging and attractive marketing strategies, advanced cosmetic treatments, and
increasing awareness of the potential side effects of cosmetics are also important trends [14].
Consumers are moving consciously and unconsciously fast, influenced by global forces. The
decisions they make reveal a lot about their way of thinking and allow us to extrapolate and
predict their future behaviour. Trends are only significant if they do something about them.
Each of these trends represents an opportunity for innovation [1].
New trends are outlined in the market dynamics of retail and changes in purchasing habits, as
well as online purchases are strongly shaping these habits [15]. The main categories of cosmetic
trends are global trends, mega- and metatrends, trends in conscious consumption, and trends
influencing fashion (we have associated our own cosmetic examples with sources).
• Global trends, trends that can be linked to socio-economic processes, such as the emergence
of globalization with the market emergence of global cosmetic brands, the importance of
localization in local cosmetic raw material production, the role of media in cosmetics
advertising [16] [7].
• Within megatrends, general trends, counter-trends, trends without counter-order, trends
primarily characterizing the behaviour of domestic customers, and other megatrends can be
distinguished [16].
- General trends are strong, creating long-term change in different disciplines. Examples
of such trends are speed (fast-acting cosmetics), mobility (take-away cosmetics) [16].
- The opposite of these directions is the opposite order. For example, slowing down (does
not affect the consumer in an accelerating world), searching for stability (home cosmetic
treatments).
- Trends without a counter-order are trends whose counter-orders are either not yet
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discoverable or the opposite of the trend is the traditional interpretation (in other words,
the basis of comparison is not trend-like). For example, the need for advice on a
cosmetic, knowledge of consumer rights [16]. The trends that primarily characterize the
behaviour of Hungarian customers are lifestyle and time balance research measuring the
change in the habits of the Hungarian population, i.e. what happened in the lives of
different groups of the population, how they act (time balance) and how they think and
live (lifestyle). For example, gainful employment (the more discretionary income
available to the consumer), learning (better knowledge of cosmetic ingredients) [16].
- Other megatrends are those that cannot be clearly classified into the previous megatrend
categories. For example, aging, demographics (cosmetic brands for different age
groups) [17], personalization (personalized cosmetics) [1].
• Like megatrends, metatrends are important for adapting to the fast-paced world, for the
production of fast-acting cosmetics, and for the production of cosmetic active ingredients and
packaging materials that comply with ecological, frugal thinking and are less or less harmful to
the environment. They are complex, at the highest level, “above-trend trends”, innovative. For
example, Asian beauty trends (K-beauty is Korean, J-beauty is Japanese, C-beauty is Chinese
beauty trend) [1]. Tendencies of conscious consumption are created by the influence of mega-
and metatrends and become the cornerstones of sustainability. Consumer behaviour is turning
into a trend, so this form of behaviour is becoming a trend in itself. For example, the use of
health and environmentally conscious cosmetics [18].
• And the trends that influence fashion are set for a shorter period (usually a year, season, or
season). For example, non-invasive medicine, skin treatment with probiotics [1].
Conscious consumption and sustainability
Sustainability is the focus of conscious consumption. Consumers who also strive to protect the
environment in their daily choices strive to reduce their ecological footprint. They aim for
sustainability in their cosmetic consumer / buyer decisions in order to leave a clean, healthy
environment for future generations. Conscious consumers take responsibility for their
environment and therefore prefer the cosmetics that pollute the environment the least and have
a beneficial effect on their health [19] [20] [21] [22]. Conscious consumption is responsible
consumption, which is socially responsible, environmentally conscious and ethical consumer
behaviour. In addition to the above “responsible, conscious” trends, purchasing decisions are
also influenced by various mega- and meta-trends. The former can be grasped primarily by their
strength, and the latter by their complexity and fundamentality [19].
Environmental problems have become increasingly part of the public in recent decades,
encouraging consumers to buy green products. The growing consumer awareness of their
preference for green products has increasingly put green consumption in focus. According to a
global survey conducted by the Nielsen Company in 2015, the Asia-Pacific region has the
highest number of consumers seeking increased market access for green products [23] [24]. As
a result, the green strategy has become a critical element in supporting business sustainability,
as in reality few companies are able to achieve this at the company level [23] [25]. Part of
environmental knowledge is the factual ecological knowledge that influences the way of
thinking, influences the values and attitudes that emerge, and through them the willingness to
act and the action. Achieving a higher level of knowledge results in more efficient information
processing, more informed decision-making processes, and increased adaptability [26].
Examining environmentally conscious consumer behaviour in the cosmetics market is
important for the reason that our environment is becoming increasingly polluted by
industrialization, the spread of various polluting fuels, waste disposal, artificial materials,
plastic product packaging, which affects our immediate environment, the environment itself,
also for our lives [27] [28]. Pollution of the environment also has a direct impact on our health,
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as “it is becoming increasingly difficult to keep people healthy today due to the increasing
degree of denaturation of the environment” [p. 3].
“Environmentally conscious consumption actually results in a purchase that meets the needs
at least to the same extent as traditional consumer behaviour, but is able to contribute to waste
reduction and lower environmental impact. On this basis, it roughly corresponds to the ‘sub-
area’ of consumption” [30] [31 p. 51].
People’s health awareness has spread from the food industry to the beauty industry. Consumers
are increasingly interested in natural ingredients, sustainable packaging and other green
elements in cosmetics [32].
Factors influencing the purchase of cosmetics and the use of cosmetic services
One of the main grouping factors influencing the purchase of cosmetics and the use of cosmetic
services is the division according to cultural, social, personal and psychological characteristics
[7]. The basis of our own model is also provided by these factors (Table 1) in addition to the
other category.
Table 1. Factors influencing the purchase of cosmetics / use of cosmetic services
Cultural
Social
Personal
Psychological
Other
Culture
Subculture
Social
class
Values
Community,
group effect,
reference groups
Family
Role, status
Advertising,
social media
Individual taste
Personality
Way of life, lifestyle
Socio-demographic
characteristics such
as:
Age, family life
cycle
Profession
Economic
conditions
Shopping habits
Perception,
memory,
association
Motivation,
personality,
emotions
Perception
Learning
attitudes
Place of purchase of cosmetics,
place of use of cosmetic
services
Selection availability
Cosmetics market, value chain,
sales channel
Cosmetics, quality and price of
cosmetic services
Legal environment
Conscious, ethical, sustainable
consumption (health-conscious,
environmentally conscious), the
role of eco-labels, willingness
to pay a surcharge
Brand
Expanding selection,
uniqueness, personalized
cosmetics
Source: [7] [33] [34] [35] [36] based on own editing, extension with additional and other
category characteristics (2019)
Consumer behaviour models used to explain the purchase of cosmetics
Our research is based on the purchasing behaviour model of Engel-Kollat-Blackwell (1979)
[37], the model based on consumer attitude of Dembkowski, Hanmer Lloyd (1994) [38], and
models based on factors influencing consumer behaviour (Grunert 1996, Törőcsik 2007,
Verbeke 2007, Alvensleben 1989) [39] [40] [41] [42].
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Engel-Kollat-Blackwell consumer behaviour model (1979)
Figure 1. Engel-Kollat-Blackwell explanatory model of consumer behaviour
Source: [37]
The Engel-Kollat-Blackwell model was first introduced in 1968. The model has been revised
twice: once in 1973 and again in 1979.
The Engel-Kollat-Blackwell model of consumer behaviour (Figure 1) is based on the customer
decision process, which consists of 5 stages, which are problem recognition, search
(information gathering), evaluation of alternatives, choice (purchase), post-purchase behaviour
(experience), satisfaction, dissatisfaction). Problem recognition means the emergence of needs.
In the case of cosmetics, such needs include the need to hydrate and wrinkle the skin.
The determining factors in the decision-making process are consumer interest and the functions
of the participants. The level of consumer interest significantly influences the time and
complexity of the customer process, the differentiation of the participants according to their
functions. Consumer interest as a motivating factor determines the relationship between the
consumer, the product and the customer situation. Consumer interest in a given product means
the importance of the product to the consumer, which may be different in different situations of
purchase or use. The latter is the situational consumer interest. Depending on the purpose of the
purchase, the consumer's locational interest in the same product is also different depending on
whether the buyer buys it for his own consumption or as a gift. Based on their tasks and
functions, the participants in the purchasing process are the following: groups of initiators,
influencers, decision-makers, customers and consumers / users [43].
The following information may appear when searching for consumer and customer information:
• personal resources (such as family, neighbours, friends, co-workers);
• Commercial sources (such as cosmetics titles, advertising, sales);
• Public service resources (e.g. certification, inspection bodies, cosmetics publications,
consumer test results);
• Sources of experience (for example, after using cosmetics).
The information search and collection phase is followed by the evaluation of alternatives, which
leads to the formation of an attitude [43].
The Engel-Kollat-Blackwell approach was important in the process of developing its own
theoretical model because it fully presents the decision-making process of consumer / customer
behaviour.
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Dembkowski and Hanmer-Lloyd's model of environmental awareness (1994)
Figure 2. Dembkowski and Hanmer-Lloyd model of environmentally conscious
consumption
Source: [38] based on own editing (2020)
In the Dembkowski-Hanmer-Lloyd model (Figure 2), behaviour appears as a dependent
variable, focusing mainly on behaviour in the private sector, primarily on aspects related to
purchasing and related consumption. Elements of the system of individual beliefs influence the
concretization of environmental awareness. These individual beliefs are global values, theme-
specific values, and evaluations of product properties. The global values in this case are the
protection of the environment and health. In the process of developing his own theoretical
model, the Dembkowski-Hanmber-Lloyd approach was important because it goes beyond
individual beliefs and deals with social responsibility, environmentally conscious behaviour.
For cosmetic products, this is the consumer / customer preference for environmentally friendly
product ingredients and packaging. Environmental awareness factors include the creation of a
clean, healthy environment, environmentally friendly consumption and a positive attitude
towards protecting the environment. The development of environmental awareness is
influenced by individual needs, individual responsibility, but also by social “pressure” and the
expected forms of behaviour, i.e. group and community pressure [38]. The factors related to
individual beliefs in Figure 2 relate primarily to traditional, classic cosmetics, which consist
mainly of chemical ingredients and packaging, while environmental awareness factors
represent the choice of environmentally friendly cosmetic ingredients and packaging as a result
of influencing individual and social norms and attitudes.
Grunert's food-oriented lifestyle model (1996)
Grunert’s food-oriented lifestyle model (Figure 3) can also be linked to cosmetics because there
is a link between lifestyle and product selection. Lifestyle analyses examined specific and
abstract product attributes, i.e. which attributes are of value to certain segments, and therefore
determined product and brand positions for each segment.
Features of the Grunert model:
• There is an indirect link between specific product properties and values;
• vertical model as it builds on chain of meaning theory;
• assumes a lasting relationship in the consumer behavioural system (due to the fact that lifestyle
changes take place relatively slowly and gradually);
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intermediate lifestyle factors (lifestyle, shopping motivations, quality factors, consumption
situations, shopping patterns) form the relationship between value and product as well as brand
perception and attitude;
consumer and customer situations can be characterized by customer motivations, customer
habits, ways of making a living, and consumer / user situations;
• consumer behaviour is a subjective perception based on knowledge of facts and ways of doing
things, as well as information and experience, as well as the learning process and cognition of
the product, and finally appears during use and recycling [43].
Figure 3. Grunert's food-oriented lifestyle model
Source: [39]
In the process of developing our own theoretical model, Grunert’s approach was important
because it builds on the impact of lifestyle on consumption and buying, which is also one of the
cornerstones of our own theoretical model. In the case of cosmetics, the model is adapted as
follows: purchasing motivations are influenced by values, different consumption situations,
which determine the way of buying and beauty care through quality factors and specific product
characteristics, which are significantly influenced by the consumer's lifestyle, way of life,
material and other options. Everyone is in a different consumption situation in terms of their
financial resources, needs and requirements, which will motivate them to make different
consumption decisions and lead them to cosmetics of different quality, composition and value.
The method of purchase can be in-store, where the consumer can view, grasp, feel, smell the
desired cosmetic of his / her choice (he / she is convinced of the product properties), or online,
without knowing the physical reality of the product, he / she cannot be convinced of the tangible
product properties and quality, “blindly” trusts a particular manufacturer, brand. Trust in the
chosen brand can be one of the guarantees of quality for the consumer.
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Groups of factors influencing customer behaviour
Figure 4. Factor groups influencing customer behaviour
Source: [40 p. 36] based on my own editing (2020)
Consumer behaviour is influenced by environmental stimuli, the consumer's individual habitus,
framework, and the conditions of the given purchase. Environmental stimuli affect current
trends, trends, the activities and marketing trends of a given cosmetic manufacturer or
distributor, and the narrower social environment of the consumer. The consumer's lifestyle,
buying opportunities, decision characteristics, and the consumer's relationship to the purchase
fundamentally determine his / her purchase decision. The conditions of the given purchase, the
current situation of the customer, the nature of the implementation of the purchase, or the
external influences of the situation may influence the decision. In the case of environmentally
friendly cosmetics, the conscious trends, the advertising campaign of the given cosmetic
company, and the experiences and recommendations of the acquaintances and the narrower
environment are decisive. Individual habitus, demand appears in financial possibilities as limits,
and in what lifestyle the consumer pursues, how he likes or dislikes buying, and how he / she
accomplishes this. What is important is the individual's financial and health situation, his or her
emotions, and his or her attitude towards a particular cosmetic (Figure 4) [40].
Consumer / customer decision-making processes for cosmetic products / services are also
determined by the factor groups of the model, such as the Engel-Kollat-Blackwell model, which
is also one of the cornerstones of our own model.
Gap between science and consumer perception
Verbeke’s perceptual filter theory (Figure 5) shows that the main task in promoting preventive
health behaviour is to “translate” the scientific relationship between personal hygiene and
beauty care into consumer language. When scientific facts pass through the perceptual filter,
they are transformed into subjective perception (perception). Cosmetic characteristics,
marketing communication, and situational factors arising from an individual’s situation
together determine perception. Consumer preference and choice is formed as a result of
subjective perception, the end result of which is the selection of the cosmetic, i.e. the purchase.
The right choice of marketing communication direction is also important [44]. "Perception is a
spiritual phenomenon." The impulses run in our nervous system, and as a result of various
crosstalk, the vegetative also “responds” to stimuli from the outside world, as well as stimuli
from the inner world. A word spoken in a thought often has a stronger effect than a word heard
[45 p. 80]. This phenomenon is related to desires, the formulation of desires that stems from
our needs.
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Figure 5. Gap between science and consumer perception
Source: [41] [44 p. 17] based on my own editing (2020)
The perception filter (the influencing factors) “translates” into the “language” of the consumer
who prefers cosmetics the objective cosmetic characteristics, cosmetic facts, quality, safety,
price, ingredients, by which the consumer “embraces” the information and then by perception
you can relate to them, find your way around the alternatives, evaluate and choose them, that
is, make the purchase decision.
Customer satisfaction
After the choice, purchase and consumption, the buying process does not end. The post-
consumer customer experience manifests itself in the form of satisfaction or dissatisfaction, and
has a repercussion on the repurchase process. Consumer satisfaction depends on the degree of
satisfaction / dissatisfaction with the cosmetics and the customer's place. Satisfaction by the
cosmetic or the place of purchase depends on the degree of agreement or discrepancy between
the perceived level of the cosmetic properties and other determining environmental factors and
the level expected by the consumer. Consequences of satisfaction: increase in repurchase,
customer and consumption frequency. In case of dissatisfaction, the consumer refuses to buy
back and will use negative word of mouth [43]. During repurchases, shoppers prefer to take off
the shelf what, in addition to the effect they have already tried in their everyday lives, also gave
them a pleasant plus [46]. Customer satisfaction expresses the extent to which a given cosmetic
or cosmetic service meets customer expectations (Figure 6) [47]. Strong brands should always
be offered at a price that is in line with the accepted value, a value that sometimes needs to be
brought to the attention of consumers. A brand that offers security and is no stranger to
consumers will continue to be attractive to consumers, in saturated, competitive and mature
markets where consumers are experienced and well informed, provided that the price-quality
ratio is acceptable [48].
Figure 6. Customer satisfaction
Source: [42] [43 pp. 56-57] Based on own editing (2020)
This model is also relevant to our research because if the consumer is frustrated with a
particular cosmetic, he or she will be dissatisfied, will have a harder time making future
purchase decisions, and will develop distrust, meaning he or she will feel deceived.
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Own theoretical cosmetics consumer behaviour model
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Figure 7. Model of the relationship between the factors influencing the consumption and purchase of cosmetics and the use of cosmetic services
Source: Own editing based on the models described above (2020)
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The possible flowcharts of the basic factors of the own cosmetics consumer behaviour model
(in short: own theoretical model) are illustrated in Figures 8-10. In each case, the starting point
of the model is the information input (endpoint 1) and the process base endpoint 2 is to learn
about and evaluate the (environmentally and health-friendly) cosmetic product / service, and to
determine the objective and subjective product properties. In Figures 8-9, the relationship
between the two endpoints is indirect, created by four factors in the first case and one factor in
the second case. In Figure 10, the relationship between the two endpoints is direct, as no
additional factors are found between them. In Figure 8, between the two mentioned endpoints,
lifestyle, way of life, status as factor 1, subjective norms and attitude as factor 2, recognition of
needs, desires, and problems as factor 3, attention, interest and process of motivation as factor
4 creates a connection.
The identity of the consumer and the customer are not always the same. Such cases are, for
example, when the customer gives a gift to the consumer or when the customer buys cosmetics
for his / her family members or other acquaintances that he / she does not use himself / herself,
for example, a wife buys a face alcohol for her husband. There may also be buying opportunities
where the two roles are also split when the customer is buying for someone because they are
asked to do so but do not live in a household, i.e. the customer is not a consumer of the cosmetic
purchased.
The role of the gift is important for one’s own theoretical model because the person of the
customer and the consumer are also different. The customer is the giver, the consumer is the
gifted. So gifts, such as the giving of Christmas gifts, are also important in our model because
the Nielsen Retail Index also measures sales of Christmas gift packages by target group, which
is the highest value turnover for packages for men and women. Both segments have a market
share of 48%. Stores larger than 2,500 m2 are in the 1st place in the sale of gift packages, which
concentrates almost 50% of the value sales, the 2nd most important channel is the drugstore,
which carries out 43% of the value sales of Christmas gift packages [49]. Observations in
drugstores played a prominent role in our research.
When giving a gift, the customer can also gift cosmetics or cosmetic services that match the
customer's lifestyle, way of life or status, because they want to give a cosmetic that, for example,
the recipient cannot afford, but the customer does. You can also give a gift that is the same as
the life of the recipient. There may even be cases that are unrelated to the way of life of any of
them, a kind of status symbol that would embody the need for belonging for them. The customer
can therefore also buy a cosmetic, which is a kind of status symbol, but does not necessarily
express the customer's current social affiliation. He chooses a product or service that is different,
for example, his discretionary income may not allow him to prefer and buy premium category
products / services, but his desires and desire to belong elsewhere motivate him to do so. In
some cases, the lifestyle, way of life and status do not correspond to the lifestyle and social
status of the customer.
The purchasing decision processes in Figure 8 were identified with the classic consumer / buyer
behaviour, i.e. as a result of the information input, the consumer reaches the filter of his own
subjective norm and attitude through the lifestyle, way of life, status factor. Through this, your
needs, desires and problems arise that induce you to buy cosmetics. You start to get interested,
monitoring the range of cosmetic products or services you want or need that motivate you to
get to know them better by evaluating both objective and subjective product properties. The
next step, for all three (Figures 8-10) initial processes, is to set up criteria for product purchase
by perceiving objective and subjective product characteristics as a kind of filter. This is
followed by some form of purchase or non-purchase (Figure 7).
12th International Conference of J. Selye University
Economics Section
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Figure 8. Possibility of process 1 of the base factors of the own model
Source: Own editing based on the models described above (2020)
In Figure 9, the indirect relationship between the two endpoints is made by lifestyle, way of
life, and status without affecting intermediate bases other than these, such as one’s own norms,
needs, but usually the other person, the gift, or the cosmetic product’s other responds to its
consumer by learning about and evaluating the properties of different cosmetics or cosmetic
services. The other processes are the same as described in Figure 7.
Figure 9. Process Possibility of Own Model Base Factors 2
Source: Own editing based on the models described above (2020)
In Figure 10, the two endpoints are directly related to each other. In this case, the choice of
cosmetics and cosmetic services are independent of lifestyle, way of life, status and other basic
factors. There are conscious consumers who directly know and appreciate the objective and
subjective product characteristics as a result of the information input, and choose products that
differ from their previous lifestyles and, in particular, encourage them to buy / use
environmentally and health-friendly products and services. Another group of consumers
instinctively feels that eco-friendly cosmetic products / services are particularly suitable for
them, due to the subconscious effect of previous information inputs. The other elements of the
process are the same as described in Figure 7.
12th International Conference of J. Selye University
Economics Section
23
Figure 10. Possibility of process 3 of the base factors of the own model
Source: Own editing based on the models described above (2020)
Table 2 summarizes the main factors of our own model, based on the own theoretical model
in Figure 7.
Table 2. Presentation of the factors of the own theoretical model
The main factors
of our own
model
The main factors of the own model are detailed and the relationship between the
factors
Information input
The own model starts from the input of information, that is, one starts from one's own
cultural medium as an individual.
Beliefs and attitudes about cosmetics are determined by several factors, i.e.
knowledge, health history, shopping habits, demographic and socio-economic
characteristics of the customer shape beliefs, ideas, attitudes, environmental
awareness, health awareness, beliefs about environmental friendly cosmetics and
services. These include knowledge of the types of cosmetics selected, their
composition, their effects on health, their effects on beautification and personal
hygiene, the environmental impact of their packaging, and the use of sources of
information on cosmetics. All of these factors influence beliefs about health, beauty,
and the environment in cosmetics, which in turn determines beliefs associated with the
properties of cosmetics and natural cosmetics, and ultimately attitudes. The
individual's health history includes chronic illnesses, therapies, and the level of
physical activity resulting from deterioration in health due to family history illnesses
[44].
Through socialization, the consumer acquires the abilities and skills that are the root
of the formation of culture. He will have different beliefs, and group norms will be
decisive for him, his actions will be influenced by his family and his contemporaries.
Education has a decisive role in the development of health and environmental
protection and social responsibility, and in the following stages of life, conscious
trends will also play a major role in decisions, of which environmental and health
awareness stands out from the point of view of our topic. Manufacturers are also
affected by these trends, according to which they are producing more and more
environmentally and health-friendly cosmetic products. For example, consumers can
get acquainted with the products through the mediation of various marketing tools and
the recommendation of acquaintances, i.e. they can gather knowledge and information
about cosmetics.
Factor group 1:
lifestyle, way of
life, status
How the consumer decides in relation to the purchase of cosmetics plays a key role in
his / her current lifestyle, way of life and status, as he / she forms the norms and
attitudes for his / her own further life on the basis of these.
Factor group 2:
getting to know
and evaluating
environmentally
and health-
friendly products
/ services,
The dashed arrow from lifestyle, way of life, status points to factor group 2, as this is
optional, the customer is affected by his / her lifestyle, if he / she buys for himself /
herself, if he / she buys cosmetics as a gift to someone else, it is usually no longer
based on his / her lifestyle, as it does not necessarily match and the lifestyle of the
customer with the lifestyle of the gifted.
12th International Conference of J. Selye University
Economics Section
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The main factors
of our own
model
The main factors of the own model are detailed and the relationship between the
factors
defining product
properties
Subjective norms,
attitude
The subjective norm depends on the “expectations” of the persons considered
important, as well as on the extent to which the individual's own motivation supports
the fulfillment of these expectations [7].
Positive consumer attitudes towards eco-friendly products (natural cosmetics)
ultimately determine the willingness to buy (pay / surcharge, surcharge), i.e. the
action [44].
Attitudes towards cosmetics, especially natural cosmetics, are shaped by the
individual's current shopping habits and demographic and socio-economic
characteristics.
Recognizing
needs, desires,
problems
Needs, desires, feelings of lack constantly arise, the satisfaction of which the
individual tries to compensate by purchasing products and services.
Attention,
interest,
motivation
The individual satisfies his / her need for health and beauty with cosmetics, and this is
what his / her motivation is about. For the first time, the consumer maps the range of
cosmetic products corresponding to the trends and the market, gets to know the
environmentally friendly alternatives and product properties. Physiological and
sensory perception of cosmetics (e.g. packaging, fragrance, design, and function
price) also plays a key role.
Objective and
subjective
evaluations
Based on these, he makes objective and subjective evaluations. Objective evaluations
can be made on the basis of product range, labels, categories, or availability, income,
subjective ones are highly dependent on personality, habitus, what value to the
consumer, what you want to achieve with your purchase, various from your nerves,
your habits, and your situation. If the customer really wants to do it for his / her
environment, he / she is also willing to pay a surcharge, i.e. to spend more money on a
cosmetic that has a more beneficial effect on his /her environment and health.
Compensatory consumption works on an emotional basis, it means compensating for
some hidden need by buying and using the selected cosmetic.
Other influencing factors are personal factors such as age, gender, age, status, social
affiliation, environmental stimuli, the particular cultural environment, the economic
situation, and the impact of marketing activities.
Processing
evaluations,
defining criteria
related to
product
purchasing
The criteria for the product are made by the customer on the basis of the above
assessments, i.e. the extent to which he takes individual responsibility for the
environment, his / her own health and the health of his / her family.
You can rank based on quality, i.e. expected and actual features, higher price
willingness to pay for environmentally friendly alternatives, value for money, brand
(brand loyalty or trying new brands), product availability, competing product
characteristics. The range of cosmetic properties is physical, chemical, cosmetic
ingredients (natural, artificial substances) and additives (other added substances).
Cosmetic properties affect consumer behaviour through physiological (e.g., the need
to colour grey hairs, cleanse the face) and sensory effects.
Regarding individual factors, a range of biological (e.g., age, gender, and hair
length), psychological, and sociological factors can be mentioned.
Environmental factors include cultural, economic and marketing factors (price, sales
promotion, sales channel, branding) [43].
From the
intention to buy
to the act of
purchase, or lack
thereof
The intention to buy is either in the possession of the consumer or not. The action, if
possible, leads to product testing, based on which you either buy the product or not.
You can postpone your purchase decision if you still can't make a decision. Based on
previous product experience, you will either re-purchase the product or refuse to
purchase. It is important to evaluate the experience, to learn from the experience.
Lack of purchase intent will result in rejection of the purchase. For some reason, the
consumer would need cosmetics, but may not find a suitable alternative, so his / her
desire remains unsatisfied with regard to beauty care. You may also choose a
competing product that better suits your current situation. Purchasing preparations
are also affected by the shopping situation, such as the courtesy of the seller, the
12th International Conference of J. Selye University
Economics Section
25
The main factors
of our own
model
The main factors of the own model are detailed and the relationship between the
factors
atmosphere of the store, the breadth of the product range, and the availability of the
cosmetic product (store, online).
Source: Own editing based on sources in the table and findings on cosmetics (2019)
The novelty of our own theoretical model is that it adapted complete and partial (for non-
cosmetic product groups) consumer / customer source models when creating the model of
consumer / customer behaviour for the cosmetic product and services. The model also focuses
on environmentally and health-conscious decision-making aspects, because conscious
consumption and conscious trends are the cornerstones of the topic, but it is also important to
include personalized cosmetics and compensatory consumption factors, as these factors are
innovative in decision-making of purchasing cosmetics. Another important factor is the
evaluation of experiences, learning from experiences.
Planned qualitative and quantitative research
As qualitative research methods, we plan to conduct unstructured observation, individual, pair
and focus group interviews, and as quantitative research methods, we plan to conduct structured
observation and customer surveys, as well as online surveys.
The main objective of the primary studies is how the factors of our own consumer / customer
model influence the natural vs. preference for non-natural cosmetics / cosmetic services.
Unstructured observation aims to reveal the main cosmetic consumer groups. Not all factors of
the own theoretical model can be examined by this method (only those factors that can be
observed with this method are examined). Individual, paired and focus group interviews aim to
explore the reasons for customers / consumers to choose natural vs. non-natural cosmetics. All
the factors of the theoretical model can be examined by them, i.e. the own theoretical model
can be validated with these methods and modified according to the examinations.
The structured observation and the point-of-purchase survey and the online survey describe the
relationship between the factors influencing the consumption / purchase of cosmetics. The own
model validated by the qualitative methods reaches its final structure at this stage.
DISCUSSION
Our own theoretical model was developed on the basis of the source models reported in the
study as a result of literature processing and secondary research. The model embodies a
complex customer flow chart, the structure of which clearly shows that customers / consumers
can make a decision in the course of their purchases due to several factors, which factors are
related. The model is a theoretical model, ie the realized customer / consumer decision-making
is processed and analyzed during the primary research, according to which the model is
modified. Environmental and health awareness play a key role in the theoretical model, as both
conscious trends are currently present in the cosmetics market. Depending on his / her past
(information input) and present experience, the customer / consumer may decide to buy or
refuse to buy a cosmetic product. The study of objective and subjective product properties also
plays an important role in the model, as conscious purchases are preceded by the examination
and evaluation of these product properties. Emotional purchases are primarily based on the
influence of the emotional factor of subjective product characteristics. The current way of life
and lifestyle of the customer / consumer is also decisive in their purchasing decision in some
cases, just as subjective norms may play a role in the case of certain customer groups (3 types
of input options into the whole model in Figure 8-10). The customer can also make / reject
purchase decisions at the place of purchase due to the situational factors that characterize the
purchase. Testing product samples is paramount because it brings the customer even closer to
12th International Conference of J. Selye University
Economics Section
26
the product of their choice. Finally, it can be emphasized that the purchasing decision process
consists of complex steps, as customers / consumers do not always “work” objectively, so
numerous factors can influence their decisions even outside the model. This model is merely
an optional buying behaviour model.
COMPLETION
In the course of the secondary research, the literature antecedents of the development of the
own theoretical model were presented (grouping aspects of cosmetics and cosmetic services,
presentation of the cosmetics market, trends affecting the cosmetics market, conscious
consumption, factors influencing the consumption of cosmetics / cosmetic services, leading
source models or own model). The significance of the own theoretical model lies in its
complexity and the possibility of three approaches (inputs). Each approach assumes a different
type of customer, yet the main conclusion is that customer / consumer decision-making is the
result of a complex process, ie a combination of several factors, one possible approach of which
is the presented consumer / customer behaviour model. Primary qualitative and quantitative test
methods will be performed in the future. Among the qualitative methods, the main groups of
cosmetic consumers / customers are identified during the unstructured observation, and the
natural vs. consumer groups are identified during the individual and pair interviews, the reasons
for choosing a non-natural cosmetic are revealed. Quantitative methods describe the factors
influencing the consumption and purchase habits of the cosmetics, as well as the unobservable
reasons for the consumption and purchase of the cosmetics, and the main consumer / costumer
of the cosmetics are definitively delineated.
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Thesis
Full-text available
The topic of the paper is the importance of brand awareness in the era of sustainability. The trend of sustainability has been present for years, and with the pandemic, consumer awareness of the importance of sustainability has become even greater. The trends have not bypassed the cosmetics industry either, where more and more companies are turning to sustainability, both through their operations and through communication with end customers. The paper presents 3 hypotheses: Millennial and Gen Z generation consumers ask ethical and environmental questions before buying products, cosmetic companies respond to the needs and different wishes of consumers and there is a trend of new, sustainable cosmetic brands. The first part presents a theoretical overview, with an explanation of how important is brand awareness and the importance of sustainability in today's communication with consumers. For the primary research, a questionnaire was conducted on 111 respondents on the criteria for choosing cosmetic products and sustainability, and as secondary research, a review of research published so far about sustainability in the cosmetics industry and brand awareness was conducted. The paper presents the presence of trends in the cosmetics industry, examples and provides insight to marketing experts on the importance of sustainability when communicating brand awareness with end customers. Younger generations of customers (millennials and Gene Z generation) pay more attention to products that are sustainable, whether they contain ingredients, packaging or the least harmful effect on the environment. The paper shows that Millennial and Gen Z generation consumers ask ethical questions and questions about the environment before buying products; however, based on primary research it is clear that although this trend is present in Croatia, price is still an important criterion when purchasing. Companies respond to consumers’ needs and adapt their products and business to new market demands, and new, sustainable cosmetic brands are entering the market.
Article
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Poucher's Perfumes Cosmetics and Soaps has been in print since 1923 and is the classic reference work in the field of cosmetics. Now in a fully updated 10th edition, this new volume provides a firm basic knowledge in the science of cosmetics (including toiletries) as well as incorporating the latest trends in scientific applications and legislation which have occurred since the 9th edition. This edition will not only be an excellent reference book for students entering the industry but also for those in specialized research companies, universities and other associated institutions who will be able to gain an overall picture of the modern cosmetic science and industry. The book has been logically ordered into four distinct parts. The historical overview of Part 1 contains an essay demonstrating William Arthur Poucher's influence on the 20th Century cosmetics industry as well as a chapter detailing the long history of cosmetics. Part 2 is a comprehensive listing of the properties and uses of common cosmetic types, ranging from Antiperspirants through to Sunscreen preparations. There are an increased number of raw materials in use today and their chemical, physical and safety benefits are carefully discussed along with formulation examples. The many additions since the last edition demonstrate the dramatic recent expansion in the industry and how changes in legal regulations affecting the development, production and marketing of old, established and new products are operative almost worldwide. Information on specialist products for babies and others is included within individual chapters. The chapters in Part 3 support and outline the current guidelines regarding the assessment and control of safety and stability. This information is presented chemically, physically and microbiologically. Part 3 chapters also detail requirements for the consumer acceptability of both existing and new products. Those legal regulations now in force in the EU, the USA and Japan are carefully described in a separate chapter and the remaining chapters have been extensively updated to explain the technical and practical operations needed to comply with regulations when marketing. This information will be invaluable to European Union and North American companies when preparing legally required product information dossiers. The final chapters in Part 4 contain useful information on the psychology of perfumery as well as detailing methods for the conduct of assessment trials of new products. As ingredient labelling is now an almost universal legal requirement the International Nomenclature of Cosmetics Ingredients (INCI) for raw materials has been used wherever practicable. The advertised volume is the 10th edition of what was previously known as volume 3 of Poucher's Cosmetics and Soaps. Due to changes in the industry there are no plans to bring out new editions of volume 1 and 2.
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Napjainkban a fogyasztói magatartás kutatásának egyik fontos területe a fogyasztók tudatosságának vizsgálata. A tudatos fogyasztó előzetes információgyűjtést követően előre megfontolt vásárlási döntéseket hoz, érvényre juttatva bizonyos, általa fontosnak tartott szempontokat. E szempontok igen változatosak lehetnek, kötődhetnek a fogyasztó önérdekeihez (ártudatosság, minőségtudatosság, márkatudatosság, egészségtudatosság stb.) vagy a köz, a társadalom érdekeinek figyelembevételéhez (környezettudatosság, társadalomtudatosság stb.). E két esetben a fogyasztókat eltérő mozgatórugók hajtják, eltérő kínálatra vágynak, és eltérően lehet őket megszólítani. Napjaink kutatási eredményei szerint a fogyasztók világszerte egyre inkább tudatosak, éppen ezért a vállalatok sem mehetnek el szó nélkül a témakör mellett. Hosszú távú sikerességük érdekében növekvő súlyt kell helyezniük a tudatos fogyasztókra, az ő igényeik kielégítésére. Ez többféle követelményt is támaszt velük szemben: egyrészt érdemes a jelenlegi tevékenységet és teljesítményt mindinkább a tudatos, illetve az egyre tudatosabbá váló fogyasztók igényeihez igazítani, másrészt pedig érdemes új tevékenységekbe, piaci teljesítményekbe fogni, melyek speciálisan az új, tudatos réteget célozzák meg.
Chapter
This chapter of Sustainability: How the Cosmetics Industry is Greening up gives an introduction to sustainability, focusing specifically on the relevance of environmental and social impacts, and also provides an overview of the contents discussed in the subsequent chapters of the book. Sustainability has three pillars or dimensions: environmental dimension, social dimension, and economic dimension. The cosmetics industry gets more than its fair share of scrutiny because of the perceived nature of cosmetic products. Apart from the ethical issues surrounding animal testing, the industry is often criticised for its selection and use of raw materials, environmental impacts and safety issues of finished products. The chapter discusses the factors pushing the sustainability agenda in the industry. It explains two ways companies report their sustainability actions: Corporate social responsibility (CSR) and sustainability reports, and communicating to consumers.
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Purpose – Over the past decade, concepts that focus on environmental stewardship have gripped the collective intellect of humankind, challenged our capacity to be self-aware, and established a common global imperative to respond to critical issues that arise from world-wide climate change and natural resource conservation. Yet, while most enterprises have already undertaken some form of “green” initiative, very few have established an enterprise-level “green” strategy that responds to the new global imperative. This paper aims to provide a methodology and tool-set to help close that gap. Design/methodology/approach – The article provides a methodology and tool set needed to assess an enterprise and formulate green strategy. The scope covers: a definition of “green” strategy and the guiding principles for its formulation; best practices and illustrations of how they are being adopted; a methodology for developing an enterprise-level green strategy that integrates with all the other areas of strategy formulation in an enterprise (business, operating/organization/information/technology applications, and infrastructure).A “green” maturity model and maturity assessment framework are also developed to help business leaders determine what their current state of “green maturity” is, and guide decisions on where they would like their business to be in the future. Findings – The paper finds that business leaders and decision makers increasingly miss-out on significant benefits because they do not consider “green” opportunities in a strategic context. Originality/value – The methodology and tool set provided in this article can help business leaders capture new value from green opportunities. It can also accelerate changes to existing methodologies for formulating strategy to include important “green” dimensions. Each area of an enterprise is discussed in the context of how it can be affected and improved by having a green strategy.
Book
Part I: Introduction. 1: Market orientation, product development and competitive advantage. Part II: Generating market intelligence. 2: The systematic generation of market intelligence. 3: Analysing consumers at the aggregate level. 4: Analysing consumers at the individual level. 5: Analysing distributors at the aggregate level 6: Analysing distributors at the organisational level. 7: Case: The generation of market intelligence in a medium-sized food company. Part III: Developing market responsiveness and profitability. 8: A framework for understanding market responsiveness. 9: Short- and medium-term product and process development. 10: Long-term development of firm and industry. 11: Developing supplier and customer relations. Part IV: Conclusion. 12: Market orientation and agriculture: summary, implications and research perspectives. References. Index.