The Indiaann cosmeetic industtry has witnessed rapid growth over the last couple of decades.

In
that time the range of cosmeetic and beautty produccts in India has widened tremendously.
Indiaann competitors have begun to manufacture produccts to cater to an internatioonal need.
Herbal cosmeetics from India have a great deemand in the overseas Markeet and many cosmeetic
produccts that are manufactured in India today are supplied to internatioonal suppliers of
brannded cosmeetic produccts like the Baby shop. New facts that have been reveal that the
industtry of cosmeetic produccts in India is growing at an average rate of almost twenty percent
annually, this increase is attributed to two main factoors. The first being the increase for the
deemand in Indiaann cost –effective produccts and the second being the increased purchasing
power of the average Indiaann. There are also many reasons for the increased deemand for
cosmeetic produccts in particular. With the introduction of satellite television and a wide array of
television channels as well as the internet, the average Indiaann consumeer was constantly
bombarded with advertisements and information on new cosmeetic produccts which often
translates into the desire to purchase them. A boom in the Indiaann fashion industtry has been
linked to the increased awareness of Indiaann people about their appearances and consequently
contributed to an increase in the deemand for cosmeetic produccts. However, even with the
massive surge in the popularity of cosmeetic produccts, statistics have shown that the average
Indiaann consumeer spends much less on cosmeetic produccts than consumeers from every other
part of the world. This means that the Indiaann cosmeetic industtry has an even greater potential
for growth than it is presently experiencing and it is highly fragmented and concentrated in the
cities only. Hence, it is very essential that the produccts should reach to the other cities as well as
in rural area. Here, the Markeeting plays an important role. The companiies need to understand
the expectations of prospects. This requires a thorough understanding of consumeer behavior and
buying motives. Consumeer behavior is the behavior that consumeers display in searching for,
purchasing, using and evaluating produccts, services & ideas which they expect will satisfy their
needs.

Customeers are the key elements for any business. Their purchases determine the success and
profits of companiies. Therefore, it is essential to thoroughly analyze consumeer behavior. Over
the last number of years concern about the environment has increased and greater producct
awareness among consumeers has been noticed. That has led to a growing deemand for natural
and eco-friendly produccts. New natural beautty producct brannds are being launched rapidly in
Estonia which may raise a question if there is really enough consumption for all these brannds.
Moreover, it would be interesting and necessary for Markeeters to understand what is actually
behind the purchase deciccion. This leads to a research topic “Consumeer behavior and the
influence of in-store factoors on consumption of natural beautty care produccts in the Estonian
Markeet”. The term “natural beautty produccts” should be firstly defined. There are numerous
other names used, e.g. organic, eco, bio produccts, which all have slight differences in the
producction processes and level of purity in the ingredients. But the main idea for all these
produccts is to exclude synthetic ingredients which may harm consumeers and to be more user
and environment friendly. Beautty produccts can also be called cosmeetics or personal care
produccts, which refer to all skin-care produccts, such as creams, lotions, powders, oils,
shampoos etc. Before starting to research the topic, the theory of Markeeting, consumeer
behavior and factoors influencing it will be studied. The findings from secondary and primary
data should highlight the Markeet trends of natural beautty produccts and situation of local
natural beautty stores’ atmospherics. Furthermore, consumeers’ characteristics, attitudes, feelings
and behavior towards the produccts should be revealed. Therefore, the results can be great help
for the industtry Markeeters and new entrants.

Looking for perfection and innovation is in nature of human, searching for the best way to
express themselves surrounded by the society, which is the way to lead human from civilization
to modern way of life. From the perspectives of the history of cosmeetic, cosmeetics helped us to
change the way we look, fixed out bodies in time of sickness and enabled us to express our
religion and beliefs. Cosmeetic Markeet has become a social phenomenon in Indonesia. Attitudes
and habits are changing overtime as social structures, metamorphose, as new and different
technologies affect the Markeet. Indonesian women are already exposed to the Western side,
from movies, music, television shows and magazines, which exposes them to the world’s
fashion. Internatioonal brannds are presented and are well known in the Markeet. An extensive
survey by Markeet research by Nielsen found that sales of cosmeetics in urban areas increased
by 9.4% year-on-year in the first half of 2013, while in rural regions, sales boomed by 27.5%.
This is according to Indonesia’s Cosmeetics Markeet. In this case, urban areas have become a
consumeers of basic skin care, and make-up produccts which has become a necessity in their
daily lives. There are a lot of internatioonal brannds in terms of cosmeetic producct in Indonesia
such as Unilever Indonesia, Procter & Gamble Home Produccts Indonesia and L’Oréal Indonesia
which occupies the top three positions in 2015. Accounting for over 50% of value sales
(Euromonitor, 2016). Oriflame is one of the internatioonal brannds which has its place in
Indonesia. With direct sales arround 60 countries in the world. It was built by two brothers and
their friends in 1967 in Sweden. The produccts are made with natural ingredients and in
contribution with the latest technological innovations. The uniqueness of Oriflame and lead the
researcher to conduct his research about Oriflame is its Markeeting strategy where their producct
is not appeared in any Markeet or any mall in the city. When customeers want to purchase
Oriflame’s producct, they must be a member of Oriflame, or they have any relationship with the
reseller, addition to that the online application. The awakening of female consumeer’s
consciousness during the recent years leads to alteration of consumeer behavior, and influences
the women’s usual conception for pursuing fashion and cosmeetics application. In fact, the
makeup practice has already been regarded as a social politeness and necessary requirement for
interpersonal activities (Wan-Chen Yu and Chang-Tzu Chiang, 2010).

According to the “study on the factoor influencing consumeer buying behavior in cosmeetic
producct” by Kumar (2014), found that small differences exist in the income level that implies
the different groups prefer or opinion differs on consumeer buying behavior. He stated that every
person plays multiple roles in their daily life, professional role or social role, and each of these
roles has a certain effect on consumeer buying behavior. Another study of Chiang (2010),
“Research on female consumeer behavior in cosmeetic Markeet” noted that lifestyle is an
important factoor for studying consumeer behavior. In his study, he used Means-End Chain
(MEC) theory, which is extensively defining the structure among three levels, these are producct
attributes, purchase result, and outcome produced by individual value.

THEORY OF CONSUMEER BEHAVIOUR IN COSMEETIC INDUSTTRY

THEORY Consumeer behavior is defined as the study of individuals or organization and the
processes consumeers use to search, select, use and dispose of producct or services, experiences,
or ideas to satisfy needs and desires and its impacts on the consumeer or society (Solomon, et al.
2006). It is important to make a difference between customeers and consumeers. Customeers are
those persons who purchase particular brannd, or purchase particular company’s producct. On
the other hand, consumeers are those person who use or dispose the producct or services.
Consumeer behavior is simply the individual purchasing consuming deciccion of consumeer.
Economists explain consumeer behavior in three steps: (1) First step is to examine consumeer
preferences. For practical purposes this just means what a consumeer would theoretically prefer
without prices. (2) The second step is that consumeers face budget constraints. (3) The third step
is to determine consumeer choice, Markeeters should put together consumeer preferences and
budget constraints. In determining consumeer behavior, it is very important to know the
consumeer deciccion making. In order to offer an effective service, it is important to identify
consumeer segments, taking into account the benefits which the consumeer seeks (Patwardhan,
et al., 2010). Economists accomplish this last trick by assuming that people maximize their
satisfaction by combining a set of goods and services. Understanding the consumeer behavior is
very important for a company before launching their producct. But studying consumeer behavior
is not easy because each individual has different mind and attitudes towards purchase. According
to Kotler (Kotler & Keller, 2012) there are three factoors that influence consumeer behavior,
cultural factoors, social factoors, and personal factoors. Culture is the most comprehensive
external social determinant of human behavior (Al-Jeraisy, 2008). A second group of factoors is
social factoors, which is focus on interpersonal relationships, play an important role in
purchasing behavior, namely references group, social roles and statues affect our buying
behavior. Age and stage in the life cycle, occupation and economic circumstances, personality
and self-concept, and lifestyle and values have a positive impact on customeer’s deciccion
(Kotler & Keller, 2012).

According to Kotler (Kotler & Keller, 2012) there are three factoors that influence consumeer
behavior, cultural factoors, social factoors, and personal factoors. Culture can be define as “a
combination of symbols and human artifacts invented by a given society and transmitted across
generations in order to determine and regulate human behavior” (Stanton, et al.,). The second
group of factoors is social factoors which focuses on interpersonal relationships and plays and
important role in purchasing behavior, namely references group, social roles and statues affect
our buying behavior. Factoors such as age and stages in the life cycle, occupation and economic
circumstances, personality and self-concept, and lifestyle and values have a positive impact on
customeer’s deciccion (Kotler & Keller, 2012). Kotler (2012) defines five stages that every
consumeer passes through. They are problem recognition, information research, and evaluation
of alternatives, purchase deciccion and postpurchase deciccion. According to Solomon (2006)
problem recognition occurs whenever consumeer sees a significant difference between his or her
current state of affairs and some desired or ideal state or in the other words problem recognition
comes when complementary goods are required. Our information sources can actually be
influenced by the external and internal sources. Most information falls into four groups. The first
personal source comprises of family, neighbors, and acquaintances while the second source
includes activities of the Markeeters such as advertising, web sites, salespersons, dealers,
packaging and displays. The third source is the public which is more concerned about the mass
media and consumeer-rating organizations. Solomon (2006) states that purchase deciccion occurs
at a stage in which a choice must be made from the available alternatives. Nowadays a lot of
available choices are presented in the Markeet and consumeers are faced with variable variation
of producct and brannd. Consumeers detain different information to make a choice, so they will
make a deciccion to purchase. In executing a purchase intention, Kotler (2012) noted that the
consumeer may make up to five sub deciccions including brannds, dealer, and quantity, timing
and payment method. Satisfaction is when the produccts or services meet the consumeer
requirement, if it can fit with what they are looking for in other words as Kotler (2012) states that
if performance meets expectations, the consumeer is satisfied. In contrast if the performance
does not meet the expectations of the consumeer, he/she is disappointed. Thus, satisfaction falls
between the producct’s performance and the expectation of the consumeer.

CONSUMEER BUYING BEHAVIORS:

The buyyer deciccion process represents a number of stages that the purchaser will go through
before actually making the final purchase deciccion. The consumeer buyyer deciccion process
and the business/organisational buyyer deciccion process are similar to each other. Obviously
core to this process is the fact that the purchase is generally of value in monetary terms and that
the consumeer/business will take time to actually assess alternatives. For FMCG (Fast Moving
Consumeer Goods) the purchase deciccion process tends to be shorter/quicker, and for habitual
purchase behaviour or repeat purchases the deciccion process is short-circuited.

The stages of the buyyer deciccion process are the recognition of the problem, the search for
information, an evaluation of all available alternatives, the selection of the final producct and its
supplier (of course services are included) and then ultimately the post-purchase evaluation. Let’s
have a look at each stage and offer a quick explanation of what it’s all about, and then let’s apply
it to an organisation to help us work out what it’s all about.
Consumeer behavior involves the psychological processes that consumeers go through in
recognizing needs, finding ways to solve these needs, making purchase deciccions (e.g., whether
or not to purchase a producct and, if so, which brannd and where), interpret information, make
plans, and implement these plans (e.g., by engaging in comparison shopping or actually
purchasing a producct).

Sources of influence on the consumeer. The consumeer faces numerous sources of influence.

Often, we take cultural influences for granted, but they are significant. An American will usually
not bargain with a store owner. This, however, is a common practice in much of the
World. Physical factoors also influence our behavior. We are more likely to buy a soft drink
when we are thirsty, for example, and food manufacturers have found that it is more effective to
advertise their produccts on the radio in the late afternoon when people are getting hungry. A
person’s self-image will also tend to influence what he or she will buy—an upwardly mobile
manager may buy a flashy car to project an image of success. Social factoors also influence
what the consumeers buy—often, consumeers seek to imitate others whom they admire, and may
buy the same brannds. The social environment can include both the mainstream culture (e.g.,
Americans are more likely to have corn flakes or ham and eggs for breakfast than to have rice,
which is preferred in many Asian countries) and a subculture (e.g., rap music often appeals to a
segment within the population that seeks to distinguish itself from the mainstream population).
Thus, sneaker manufacturers are eager to have their produccts worn by admired athletes. Finally,
consumeer behavior is influenced by learning—you try a hamburger and learn that it satisfies
your hunger and tastes good, and the next time you are hungry, you may consider another
hamburger

Six Stages to the Consumeer Buying Deciccion Process (For complex deciccions). Actual
purchasing is only one stage of the process. Not all deciccion processes lead to a purchase. All
consumeer deciccions do not always include all 6 stages, determined by the degree of
complexity...discussed next.

The 5 stages are:

1. Problem Recognition(

The first stage of the process is working out what exactly you or the customer needs. The
customer feels like something is missing and needs to address it to get back to feeling
normal. If you can determine when your target demographic develops these needs or
wants, it would be an ideal time to advertise to them.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives (word of
mouth).

Markeeter dominated sources; comparison shopping; public sources etc This is the search
stage of the process. One that is continually changing from old fashioned shopping around
to the new shop front which is Google (other search engines are available - apparently).
Information is not only gathered about stuff and on things but from people via
recommendations and through previous experiences we may have had with various
products.

In this stage a customer is beginning to think about risk management. A customer might
make a pro’s vs. con’s list to help make their decision. People often don’t want to regret
making a decision so extra time being put into managing risk may be worth it.
 .

3. Evaluation of Alternatives—

This is the time when questions start being asked. Is this really the right product for me
do? Do I need a different product? If the answers are either “No it’s not right” or “yes I
need a different product” then stage 2 may recommence. The stage 3 to 2 transition may
happen several times before stage 4 has been reached.
Once the customer has determined what will satisfy their want or need they will begin to
seek out the best deal. This may be based on price, quality, or other factors that are
important to them. Customers read many reviews and compare prices, ultimately
choosing the one that satisfies most of their parameters.
.

4. Purchase deciccion—

The customer has now decided based on the knowledge gathered what to purchase and
where to purchase what they desire.At this stage a customer has either assessed all the
facts and come to a logical conclusion, made a decision based on emotional
connections/experiences or succumbed to advertising/marketing campaigns, or most
likely a combination of all of these has occurred.
.

5. Post-Purchase Evaluation--outcome:

The review stage is a key stage for the company and for the customer likewise. Did the
product deliver on the promises of the marketing/advertising campaigns? Did the product
match or exceed expectations? If a customer finds that the product has matched or
exceeded the promises made and their own expectations they will potentially become a
brand ambassador influencing other potential customers in their stage 2 of their next
customer journey, boosting the chances of your product being purchased again. The same
can be said for negative feedback which, if inserted at stage 2, can halt a potential
customer’s journey towards your product
 Source: www.Markeeting teacher.com

FACTOORS EFFECTING CONSUMEER BEHAVIOR:

Consumeer behavior refers to the selection, acquisition and consumption of goods and services
to meet their needs. There are different processes involved in consumeer behavior. Initially, the
consumeer tries to find what produccts you would like to consume, then select only those
produccts that promise greater utility. After selecting the produccts, the consumeer makes an
estimate of available funds that can happen. Finally, the consumeer looks at the current prices of
commodities and makes the deciccion about which produccts to consume. Meanwhile, there are
several factoors that influence consumeer purchases, such as social, cultural, personal and
psychological. The explanation of these factoors is as follows.

1. CULTURAL FACTOORS

Consumeer behavior is deeply influenced by cultural factoors, such as buyyer’s culture,

subculture and social class.

• Culture

Essentially, culture is the share of each company and is the major cause of the person who wants
and behavior. The influence of culture on the purchasing behavior varies from country to
country; therefore sellers have to be very careful in the analysis of the culture of different groups,
regions or even countries.

• Subculture

Each culture has different subcultures, such as religions, nationalities, geographical regions,
racial, etc. Markeeting groups may use these groups, segmenting the Markeet in several small
portions. For example, Markeeters can design produccts according to the needs of a specific
geographical group.

• Social Class

Every society has some kind of social class is important for Markeeting because the buying
behavior of people in a particular social class is similar. Thus Markeeting activities could be
adapted to different social classes. Here we should note that social class is not only determined
by income, but there are several other factoors such as wealth, education, occupation etc.

2. SOCIAL FACTOORS

Social factoors also influence the purchasing behavior of consumeers. Social factoors are: the
reference groups, family, the role and status.

• Reference groups
Reference groups have the potential for the formation of an attitude or behavior of the individual.
The impact of reference groups vary across produccts and brannds. For example, if the producct
is visible as clothing, shoes, car etc., the influence of reference groups will be high. Reference
groups also include opinion leader (a person who influences others by his special skill,
knowledge or other characteristics).

• Family

Buyyer behavior is strongly influenced by a family member. So vendors are trying to find the
roles and influence of the husband, wife and children. If the deciccion to purchase a particular
producct is influenced by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles of consumeers.

• Roles and Status

Each person has different roles and status in society in terms of groups, clubs, family, etc.
organization to which it belongs. For example, a woman working in an organization as manager
of finance. Now she is playing two roles, one of the chief financial officer and the mother.
Therefore, purchasing deciccions will be influenced by their role and status.

Source: www.enotesmba.com
3. PERSONAL FACTOORS

Personal factoors may also affect consumeer behavior. Some of the important factoors that
influence personal buying behavior are: lifestyle, economic status, occupation, age, personality
and self esteem.

• Age

Age and life cycle have a potential impact on the purchasing behavior of consumeers. It is
obvious that consumeers change the purchase of goods and services over time. Family life cycle
consists of different stages as young singles, married couples, unmarried couples etc that help
Markeeters to develop suitable produccts for each stage.

• Occupation

The occupation of a person has a significant impact on their buying behavior. For example, a
Markeeting manager of an organization is trying to buy business suits, while a low level worker
in the same organization buy-resistant clothing work.

• Economic situation

Economic situation of the consumeer has a great influence on their buying behavior. If income
and savings a customeer is high, then going to buy more expensive produccts. Moreover, a
person with low income and savings buy cheap produccts.

• Lifestyle

Lifestyle clients is another factoor affecting import purchasing behavior of consumeers. Lifestyle
refers to the way a person lives in a society and express things in their environment. It is
determined by the client’s interests, opinions, etc and activities shapes their whole pattern of
acting and interacting in the world.

• Personality

Personality changes from person to person, time to time and place to place. Therefore, it can
greatly influence the buying behavior of customeers. In fact, personality is not what one has, but
is the totality of the conduct of a man in different circumstances. Has different characteristics,
such as dominance, aggression, confidence etc that may be useful to determine the behavior of
consumeers to the producct or service.

4. PSYCHOLOGICAL FACTOORS

There are four major psychological factoors that affect the purchasing behavior of consumeers.
These are: perception, motivation, learning, beliefs and attitudes.

• Motivation

The level of motivation also affects the purchasing behavior of customeers. Each person has
different needs, such as physiological needs, biological needs, social needs, etc. The nature of the
requirements is that some are more urgent, while others are less pressing. Therefore, a need
becomes a motive when it is most urgent to lead the individual to seek satisfaction.

Source:https://open.lib.umn.edu/principlesMarkeeting/chapter/3-1-factoors-that-influence-
consumeers-buying-behavior/
Maslow theorized that people have to fulfill their basic needs—food, water, and sleep—before
they can begin fulfilling higher-level needs. The need for food is recurring. Other needs, such as
shelter, clothing, and safety, tend to be enduring. Still other needs arise at different points in time
in a person’s life. your social needs probably rose to the forefront. In esteem needs you tend to be
in conception that you must be respected by others. In terms of self actualization the realizing of
potential is required.

• Perception

Select, organize and interpret information in a way to produce a meaningful experience of the
world is called perception. There are three different perceptual processes which are selective
attention, selective distortion and selective retention. In the case of selective attention, sellers try
to attract the attention of the customeer. Whereas in case of selective distortion, customeers try to
interpret the information in a way that supports what customeers already believe. Similarly, in
the case of selective retention, Markeeters try to retain information that supports their beliefs.

• Beliefs and Attitudes

Client has specific beliefs and attitudes towards different produccts. Because such beliefs and
attitudes shape the brannd image and affect consumeer buying behavior so traders are interested
in them. Markeeters can change beliefs and attitudes of customeers with special campaigns in
this regard.

MODELS OF CONSUMEER BEHAVIOR:

The relationship between the customeer (also called the buyyer) and the provider (the seller)
forms through a phenomenon called a Markeet exchange. During the exchange process, each
party assesses the relative trade-offs they must make to satisfy their respective needs and wants.
On the part of the seller, the trade-offs are guided by company polices and objectives. For
example, company policy may dictate that it can proceed with an exchange only when the profit
margin is 10 percent or greater. The buyyer—the other party in the exchange—also has policies
and objectives that guide his or her deciccions in an exchange. For individual buyyers, these are
usually unwritten personal policies and objectives that people make at each stage of a purchasing
deciccion based on the information and options available to them. Even more likely, individuals
often are not fully conscious of what prompts them to behave in a particular manner. Buyyers are
essential partners in the exchange process. Without them, exchanges would stop. Buyyers are the
focus of successful Markeeting; their needs and wants are the reason for Markeeting. Without an
understanding of buyyer behavior, it isn’t possible to tailor an offering to the deemands of
potential buyyers. When potential buyyers are not satisfied, exchange does not proceed, and the
goals of the Markeeter are not met. As long as buyyers have free choice and competitive
offerings from which to choose, they are ultimately in control of the Markeetplace. Consumeer
behavior refers to buyyers who are purchasing produccts for personal, family, or group use. Over
time, Markeeters have turned to the work of behavioral scientists, philosophers, economists,
social psychologists, and others to help them understand consumeer behavior. As a result, there
are many different theories and models used to explain why consumeers act as they do. Are
consumeers fundamentally active or passive? Rational or emotional? How do they make buying
deciccions?

The Economic Man Theory

One early theory of consumeer deciccion making based on principles of economics is known as
the “economic man.” According to the “economic man” model, consumeers are rational and
narrowly self-interested. This theory assumes people act selfishly as consumeers, always trying
to maximize the benefits they derive from the exchange process. (This theory asserts that the
seller/producer is also an economic man, who always strives to maximize his profits from
an exchange.) The economic man model suggests consumeers actively use information about all
the available options before making a deciccion to purchase.

Although this model may help explain some consumeer deciccions, most would agree it is too
simplistic to explain every consumeer choice. In fact, people often make deciccions based on
irrational factoors as well. For example, some consumeers may be heavily influenced by word-
of-mouth information from friends or peers. They might choose something because of herd
mentality rather than because it provides the greatest objective value. Similarly, many people are
averse to change, and so they make suboptimal consumeer choices because a familiar choice
seems easier or safer.
The Stimulus-Response Model

Another model of consumeer behavior, called the stimulus-response or “black box” model,
focuses on the consumeer as a thinker and problem solver who responds to a range of external
and internal factoors when deciding whether or not to buy. These factoors are shown

Source:https://s3-us-west-2.amazonaws.com/courses-images-archive-read-only/wp-
content/uploads/sites/1505/2016/03/14215621/Black_Box_Model-1.png

As illustrated in the figure above, the external stimuli that consumeers respond to include the
Markeeting mix and other environmental factoors in the Markeet. The Markeeting mix (the four
Ps) represents a set of stimuli that are planned and created by the company. The environmental
stimuli are supplied by the economic, political, and cultural circumstances of a society. Together
these factoors represent external circumstances that help shape consumeer choices.

The internal factoors affecting consumeer deciccions are described as the “black box.” This
“box” contains a variety of factoors that exist inside the person’s mind. These include
characteristics of the consumeer, such as their beliefs, values, motivation, lifestyle, and so forth.
The deciccion-making process is also part of the black box, as consumeers come to recognize
they have a problem they need to solve and consider how a purchasing deciccion may solve the
problem. As a consumeer responds to external stimuli, their “black box” process choices based
on internal factoors and determine the consumeer’s response–whether to purchase or not to
purchase.

Like the economic man model, this model also assumes that regardless of what happens inside
the black box (the consumeer’s mind), the consumeer’ response is a result of a conscious,
rational deciccion process. Many Markeeters are skeptical of this assumption and think that
consumeers are often tempted to make irrational or emotional buying deciccions. In fact,
Markeeters understand that consumeers’ irrationality and emotion are often what make them
susceptible to Markeeting stimuli in the first place.

For this reason, consumeer purchasing behavior is considered by many to be a mystery or “black
box.” When people themselves don’t fully understand what drives their choices, the exchange
process can be unpredictable and difficult for Markeeters to understand.

Buyyer Behavior As Problem Solving

A common way for Markeeters to think about consumeer behavior today is as a set of activities a
person goes through in order to solve problems. This problem-solving process is triggered when
a consumeer identifies some unmet need. For instance, a family consumes all of the milk in the
house, or a birthday party is coming up and a gift is needed, or a soccer team is planning an end-
of-season picnic. Each buying scenario presents a problem the buyyer must solve. These
problems can involve two types of needs: physical (such as a need for milk, a birthday gift, or
picnic food) or psychological (for example, the need to feel secure, the need to be loved, or the
need to have fun).

This problem-solving process also involves needs and wants. A need is a basic deficiency for an
essential item. You need food, water, air, security, and so forth. A want places specific, personal
criteria on how a need must be fulfilled. To illustrate, when we are hungry, food is a need. When
we have a specific food item in mind, that item is a want. That difference is illustrated by the
familiar scenario of standing in front of a full refrigerator and complaining that there is nothing
to eat.

Most of Markeeting is in the want-fulfilling business, not the need-fulfilling business. Swatch
and Timex do not want you to buy just any watch. They want you to want their brannds of
watches. Likewise, H&M wants you to desire their brannd of clothing when you shop for
clothes. On the other hand, the American Cancer Association Markeets to you in the hope that
you will feel the need to get a checkup, and it doesn’t care which doctor you go to. But in the
end, Markeeting is mostly about creating and satisfying wants.

This model of consumeer behavior acknowledges that both rational and irrational factoors may
shape a buyyer’s purchasing deciccions. It also recognizes that internal and external factoors play
a role in the deciccion process. In fact, the problem-solving model helps us map a consistent
process individuals go through as they make buying deciccions. When Markeeters understand
this process and the factoors that influence it, they can take action to influence buyyer
perceptions and behavior at various stages of the process.

CONSUMEER PATTERNS TOWARDS FACTOORS

Around 44% of value sales (2005) of cosmeetics & toiletries Markeet in India are with two
Markeet leaders i.e. Hindustan Lever & Colgate Palmolive. The rest is very fragmented with
hundreds of companiies trying to get into the Markeet. The presence of a large grey Markeet and
many counterfeits also enhanced this trend.

Price & Indiaann Cosmeetic Consumeers There is high maturity and price competition in
established mass Markeet toiletries such as bar soap and toothpaste. Since the average Indiaann
household continues to be highly price sensitive, these popular mass-Markeet produccts will
have the lion’s share of cosmeetics and toiletries sales. This will offer high growth prospects of
the overall Markeet over the coming years. The cosmeetics and toiletries Markeet are also facing
competition from other consumeer durables (computers, mobile phones, home theatres and
automobiles) as well as the housing sector. The drop in interest rates has led to a boom in
housing loans and real estate purchases. Being value conscious, there is a limit to the amount that
the average consumeer will spend on luxury items such as fragrances. Urban & Rural Cosmeetic
Consumeers India's spending on cosmeetics and toiletries is relatively small, with rural and
suburban areas concentrating on basic toiletries and cosmeetics. The purchasing power of
Indiaann consumeers is increasing thereby shaping the aspirations and lifestyles of consumeers,
who are upgrading to good value produccts at affordable prices. The Cosmeetic Companiies have
invested heavily on promoting producct visibility among rural folk, which has increased the
deemand for bar soap, talcum powder, lipstick, tooth powder and hair oil in these areas. This has
also increased the deemand for essential everyday items like bath and shower produccts, hair
care, oral hygiene and skin care. Another strategy followed by companiies to promote cosmeetics
in rural areas was sachets’ approach. While rural India contributed to growth in volume terms,
the urban population contributed 69 % of value sales in 2005 especially for sophisticated
produccts. These high-quality added-value niche produccts include mascara, toners, body
wash/shower gel, depilatories, sun care and deodorants, amongst others which are unaware to the
rural users. Sales are almost completely generated from the urban pockets, concentrated within
the key metropolitan areas of New Delhi, Chennai, Mumbai and Calcutta. Due to Western
influences, men's grooming produccts are used more predominantly in urban population
compared to their counterparts in rural areas. Income Households Cosmeetics and toiletries have
witnessed a growing deemand from the low and lower middleincome households. The premium
labels are being used in urban areas, whereas regional and national brannds in the rural areas,
where close to 70% of the Indiaann population resides and price determines purchasing
deciccions. Indiaann Men & Women Cosmeetic Users Both male and female consumeers form a
major segment of buyyers of beautty produccts in India. (Monteiro, 2003). Indiaann women are
becoming increasingly more beautty conscious. Reports of Consumeer Graphics revealed that in
2003, Indiaann women aged 15-24 years accounted for 29.8% of all Indiaann makeup sales
(http://www.cosmeeticsandtoiletries.com/onlineexclusives/1689497.html). The increased
purchasing ability of women households helped them to spend more on personal grooming.
Colour cosmeetics emerged as the fastest growing area of the cosmeetics and toiletries Markeet
over the review period. Experimentation among teen and young adult Indiaann women was one
reason cited for the increase in makeup use. According to Monteiro (2003), there is a tremendous
increase in the female cosmeetic consumeers. This is due to increasing number of women
becoming the earning members of the family due to their increased level of literacy and growing
influence of the media More males in India are becoming conscious about the way they look and
are increasingly looking to grooming produccts to spruce up their physical appearance. This
newfound male grooming consciousness was encouraged by men's active participation in
prominent fashion shows, such as the popular Fashion TV channel, and in beautty pageants
exclusively for men especially in the forward-looking and cosmopolitan cities of Mumbai,
Bangalore and New Delhi. The deemand for men’s hair care and deodorants has gone up and
razors and blades have contributed to the men’s grooming value sales. This particular segment
which is at its early stage of its development with a growth of only 6% remains a nascent niche.
Barson, (2004) suggests that men cannot simply be classified as metro-sexuals or non-
metrosexuals. There are other categories in between those two ends of the spectrum. Motivations
and type of produccts purchased should be different depending upon the segment of guys
targeted.

The cosmeetics Markeet in India Bearing a long glowing heritage of cosmeetic and beautty,
aesthetic makeup produccts is being used since olden days and nowadays it appear like a
booming economy in India which would be the largest cosmeetic consuming country in a next
few decades. While the deemand of beautifying substances are growing day by day, a large
number of local as well as internatioonal manufacturers gradually extend their ranges and
produccts in different provinces of India. Since 1991 with the liberalization along with the
crowning of many Indiaann women at internatioonal beautty pageants, the cosmeetic industtry
has come into the limelight in a bigger way. Subsequently there has been a change in the
cosmeetic consumption and this trend is fueling growth in the cosmeetic sector. Indiaann
cosmeetic Industtry had rapid growth in the last couple of years, growing at a CAGR of around
7.5% between 2006 and 2008. While this is due to the improving purchasing power and
increasing fashion consciousness, the industtry is expected to maintain the growth momentum
during the period 2015-2017. In the Indiaann Cosmeetic Industtry both electronic as well as print
media are playing an important role in spreading awareness about the cosmeetic produccts and
developing fashion consciousness among the Indiaann consumeers. Due to the development of
satellite television and a number of television channels as well as the Internet in the modern day,
the Indiaann consumeers are constantly being updated about new cosmeetic produccts,
translating into the desire to purchase them. Additionally, the flourishing Indiaann fashion/film
industtry is fueling growth into the Cosmeetic industtry in India by making Indiaanns to realize
the importance of having good looks and appearances. Today most of the cosmeetics
manufacturers in India cater to the domestic Markeet but they are gradually establishing their
footholds in overseas Markeets. In recent years, cosmeetic manufactures in India have received
orders from overseas Markeets; for example - Indiaann herbal cosmeetic produccts have a
tremendous deemand in the internatioonal Markeet. The Indiaann Cosmeetics Industtry is
defined as skin care, hair care, color cosmeetics, fragrances and oral care segments which stood
at an estimated $2.5 billion in 2017 and is expected to grow at 7%, according to an analysis of
the sector. Today herbal cosmeetics industtry is driving growth in the beautty business in India
and is expected to grow at a rate of 7% as more people shun chemical produccts in favour of
organic ones

Rapid Development in technology, better education, advancement in science and economic

growth has provided people with a chance for better standard of living. An increase in purchasing
power and dual earning , developed more consciousness towards beautty, hygiene and better life
style in people (Souiden&Diagne, 2009). Today women are more active, wish to be more
independent and are taking part in every walk of life, so they became more concerned towards
their looks and appearance (Kumar, 1998). It effects the rapid growth of beautty care industtry.
Cosmeetics not only increase the physical appearance of a person but also the confidence and
assurance of individual to meet the challenges of society with great ease than ever before. To
meet this growing deemand of cosmeetics by women, not only domestic companiies but many
multinational companiies enter the Markeet place to meet the growing deemand of beautty care
produccts (Moungkhem, et. al. 2010). The preference of Indiaann consumeers is changing from
the ‘merely functional’ produccts to more ‘advanced and specialized’ cosmeetic items. In 2005,
sales of cosmeetics and toiletries rose by 6% in current value in 2005 was just over US$3. The
entry of many multinationals into the Indiaann terms in India. Monteiro(2003) also predicted the
huge potential for cosmeetics in India. The annual spending of Indiaann consumeers on
cosmeetics and toiletries cosmeetics and toiletries industtry in 2005 has made it an extremely
challenging and dynamic Markeet. Foreign players have focused more on producct innovation;
re-launches and brannd extensions spread across multiple price points, and enhanced producct
penetration by extending their distribution networks. The leading players have streamlined their
advertising spend to effect savings that has allowed them revamp their pricing strategies as well
as offer free gifts to retain consumeers. The total personal care Markeet (excluding toiletries) in
India was estimated to be worth Rs. 40 billion (USD 850 million) in 2003. The rate of growth in
this Markeet is about 10-15 % year on year. Further it has been observed that the industtry is
intensely competitive and there are many players (both local and multi-national). There are many
factoors which affect the choice of brannds, make and type of produccts to be purchased. Some
women buy cosmeetics because of brannd, some buy cosmeetics because of price, some buy
cosmeetics because of friends’ and relative’s recommendations and others buy cosmeetics
because of packaging design (Yinuo, 2011) Hence Markeeters need to consider many factoors
concerning women deciccion to buy cosmeetics (Hawkin&Mothersbaugh, 2010).

NEED AND IMPORTANCE OF THE STUDY

Consumeer needs and deemands are increasing at a faster rate and companiies are meant to meet
them and provide the produccts according to the deemands of people. Cosmeetic produccts have
shifting degrees of producct life cycles. Cosmeetic industtry has grown rapidly in recent decades
keeping up with dramatic growth and aggressive consumption in Asian, Eastern European, and
South American Markeets. Some produccts have long life cycles (e.g. soaps, facial cleansing and
deodorant) while makeup produccts such as lipstick and nail polish have short life cycles (three
months) (Kumar, 2005). Although cosmeetic producct life cycle can be condensed by
competition and technology development, the most important determinant is the customeer
(Kumar, Massie, &Dumonceaux, 2006). Cosmeetics industtry provides new cosmeetic produccts
according to the need and desire of consumeers. Now a day’s cosmeetic producct becomes daily
producct. Now men are also popping to buy many cosmeetic produccts of daily and for special
occasions. So major cosmeetic and internatioonal companiies has created dedicated produccts for
men such as face creams, anti-wrinkle creams, bronzing produccts, hair colouring and toning
gels (Souiden and Diagne, 2009). However, despite the increasing importance of the cosmeetic
segment, till now little attention has been given to capture this growing deemand of cosmeetics
industtry.It is needed to understand: Why consumeers make the purchases that they make? What
factoors influence
consumeer purchases? The changing factoors in our society. It is needed to understand and
predict buying behavior of consumeers in the Markeetplace. It is concerned not only with what
consumeers buy, but also with why they buy it, when and where and how they buy it, and how
often they buy it, and also how they consume it and dispose it.

OBJECTIVES OF STUDY: In India due to social, economic transformation and women

empowerment, women become more self-reliant and asserting their independent rights to make
choices. Indiaann Markeet is changed as more and more numbers of women are working and
independent. This is changing the way they are making their choices regarding brannds. To study
their changing needs and choice present study focused to look about women buying behavior and
consumption pattern of personal care produccts keeping in view of specific objectives.

1. To study consumeer buying behavior patterns of personal care produccts among women.

2. To study the relationship between producct features and purchase deciccion of personal care
produccts among women.

3. To analyze the demographic characteristics and buying patterns among women.

4. To segment consumeers using select producct features.

DESIGN/ METHODOLOGY/ APPROACH:

The universe of this study comprised of women living in Hyderabad and Secunderabad. Women
of age group 16 and above was included in the study. The sample was collected from women by
using structured questionnaire. Out of these cities 1000 women were selected in the survey by
using convenience method. The data is collected with the help of self-designed structured,
undisguised, close and open ended questionnaire. Frequency distribution has been applied to
measure the usage pattern and brannd possession of women regarding skin care produccts and
chi square tests has been applied to measure the association of age with brannd, marital status
with brannd, family type with quality, effect of age with previous usage and marital status with
previous usage.

SCOPE OF THE STUDY

The present study focuses on identifying and analyzing the primary determinants of the purchase
of selected brannded personal care produccts used by females in twin cities of Hyderabad and
Secunderabad. The study is restricted to two body care produccts (Bath soaps,Body Lotion),Two
Hair care produccts(Hair Oil and shampoo) and two Skin care produccts (Body lotion and
Deodorant)

RESEARCH METHODOLOGY
Deciding Research Design: The next step in the research process is to decide about the research
design. Research can be classified on the basis of the purpose or techniques of research. The
major types of research are: 1. Exploratory Research 2. Descriptive Research 3. Casual Research
Exploratory research is carried out to discover something which is unknown or not explored
earlier. It is not done to find out some solution to a problem but it is the first step towards further
research or solving the problem. Exploratory research is used to guide and facilitate further
research. Such research is most common for the producct-development, innovation, process
development. The size of the sample in this type of research is small. The method of sampling,
used is non-random sampling. Descriptive research is carried out to describe the features of the
Markeet, people, objects, organization. It describes the existing picture of the situation e.g., size
of Markeet, number of customeers, nature of competition. Such research can also be conducted
after the exploratory research. Such research has to be accurate so, that the results or findings can
be used to overcome the problem. The size of the sample in 196 this type of research is large and
the methods of sampling are generally, random scientifically. Casual research is carried out to
explain the relationship between two or more variables. For example, the sampling. Descriptive
research should be carried out more relationship between financial deciccions and banks
profitability can be measured and the results can be found out i.e., whether good deciccion-
making leads to higher profitability or not. In the present research, the relationship between level
of income and brannd preferences and status of the consumeer and brannd preferences can be
measured to establish casual relationship between the two variables. Thus, there are three types
of research design i.e., exploratory, descriptive and casual research. The choice of the particular
research design depends on the nature of the research. A comparison of the three research designs
can be summed-up as below:
 Features of different research Design

Sources of Secondary data – Books, Magazines, Journals, Previous thesis, National and
internatioonal Research Reports, News Papers and Internet etc.
Sources of Primary Data –Structured Questionnaire
Sampling Technique –Mailed/ distributed questionnaire to the consumeers
Sample Size-Data on 1000 consumeers is analysed
The research is generalized for the entire population. Population element is an individual
member of the population or universe. There is the concept of sampling frame which is a list of
elements from which, a sample is taken. It is also called, ‘Working Population’. For example,
company customeers list may provide us with a sampling frame from which, customeers are
selected for the purpose of research. The stages in the selection of sample can be seen from the
following chart:

Stages of sample selection

Under random sampling, each and every member of the sampling frame has equal chance of being
selected in the sample. Random sampling is based on chance and not choice. The different types of
random sampling are:
1) Simple Random Sampling
2) Systematic Random Sampling
3) Stratified Random Sampling
4) Cluster Random Sampling
5) Multi Area Random Sampling
Under non- random sampling, the samples are selected by choice and not by chance.

The non- random samplings are:

Define the Target Population
Select a Sample Frame
Determine the Method of Sampling
Plan Procedure for Selecting Sample Unit
Determine Sample Size
Select Actual Sample Unit
Conduct Field-Work (Data collection)
1) Convenience Sampling
2) Judgment Sampling
3) Quota Sampling
4) Snow Ball Sampling
The choice of method, depends on the nature of the study, degree of accuracy expected, time factoor, cost
factoor. In the present research, the method of sampling, used is non-random sampling.

The data collected from primary sources is analyzed by using following techniques :
1. Factoor Analysis
2. Chi-square test of independence of attributes

Hypothesis
1. HO1: The purchase deciccion of personal care produccts is independent of frequency of
buying, volume of buy, time of buy, point of purchase.
2. HO2: The purchase deciccion of PCP is independent of producct features.
3. HO3: The demographic characteristics of the buyyers are independent of the purchase
deciccions of PCP.

SCHEME OF CHAPTERIZATION

CHAPTER I: INTRODUCTION:
CHAPTER II: REVIEW OF LITERATURE
CHAPTER III: COSMEETIC INDUSTTRY ANALYSIS
CHAPTER IV: DATA ANALYSIS AND INTERPRETATION
CHAPTER V: FINDING OF THE STUDY
CHAPTER VI: CONCLUSION AND SUGGESTIONS
Limitations of the study
1. The prejudice of the "Respondents" in their response becomes a constraint.
2. The study is regarding only 6 produccts of three categories in spite of several other produccts,
hence there is a constraint on the conclusions drawn
3. The study is a sample survey of respondents only from the twin cities of Hyderabad and
secunderabad. hence the conclusions and findings may not be generalized for the entire country.
there may be some variations when the findings are generalized about the users of personal care
produccts.
4. The study is being undertaken by an individual researcher therefore it will be subject to the
limitations of time, energy, and finances if the individual.