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United International University

Report on
Factors Influencing the Consumers’ purchasing
Intention of Shampoo

Course Title: Brand Management


Course Code: MKT
Section: D

Submitted to
Dr.Kawser Ahmmed
Associate Professor, SoBE

Dr. Md. Shariful Alam (MdSa)


Associate Professor, SoBE

Submitted by
Group-07
Name ID
Saifur Rahman Chowdhury 111 143 085
Md. Fuad Hasan 111 143 070
Nowshin Naina 111 151 237

Submission Date: 15 September, 2018


Table of contents

Executive summary ...............................................................................................................01


Chapter -1
1.1 Introduction .......................................................................................................................02
1.2 Objective of the study .......................................................................................................03
1.3 Significant or importance ..................................................................................................04

Chapter -2
2.1 Marketing Growth in Bangladesh Shampoo Market…………………………………….05
2.2 Market trend in Bangladesh ……………………………………………………………..06

Chapter -3
3.1 Purchase Intention of consumers ………………………………………………………..08
3.2 Factors influence the consumer purchase intention ……………………………………..09

Chapter -4
4.1 Samples for the Study .......................................................................................................14
4.2 Measurement......................................................................................................................14
4.3 Data collection Procedures ................................................................................................15
4.4 Data Analysis.....................................................................................................................16
4.2 Findings..............................................................................................................................16

Chapter -5
Conclusion ..............................................................................................................................18
Appendix.............................................................................................................................19-23
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Executive Summary:

This research is prepared for the purpose of gaining a better understanding on the factors
influencing the consumers' Purchase intention. Those factors are independent in nature
influencing the purchase intention of consumer which is dependent on those factors. In order
to understand the consumer‟s purchase willingness of shampoo we took empirical findings
which include interviews and survey results of evidence observable to the senses. We
conducted a survey of around 100 sample participants trying to show the closest result on
some critical variable factors like Brand consciousness, Perceived Price, Perceived Quality
and Emotional Values that vary among people while intend to make purchase decision. In
order to examine the perceive quality of the intended brand and determine whether the
ingredients of shampoo is suitable to meet consumers need respondents‟ opinion and
suggestion could be considered.
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Chapter-01

1.1 Introduction:
The purpose of this report is to investigate the factors that influence the consumers‟
purchasing intention of fast moving consumer goods. More precisely the report identifies the
influencing factors while consumers‟ intending to buy Shampoo.Thus this assignment aims to
reflect the professional view of real world working environment. School of Business and
Economics of United International University offers four year BBA program majoring in
different related fields. This four year BBA academic program is the building up of the
theoretical knowledge about business administration which is the base of practical
knowledge. This assignment is an attempt to provide a real life business situation in which we
can observe and evaluate the use and applicability of the theoretical concepts which were
taught in the classrooms.

The report on “Factors Influencing the Consumers‟ purchasing Intention of Shampoo” is


prepared by 3 of our Group members under the supervision and guidance of Dr. Kawsar
Ahmmed, Associate Professor, School of Business and Economics, United International
University to meet the requirement of the course Brand Management. To meet these specific
purpose this report encompasses several activity like, Identifying the consumer‟s needs and
demands with some specific variable factors and relating those with some branded shampoo‟s
offering which basically done through an empirical testing method. Consumers' buying
behaviour is affecting the purchasing power of the consumers. There are several factors that
influence the consumers' buying behaviour. In order to identify these factors, a research on
the shampoo market was carried out.

In addition to that, a better understanding on the factors influencing consumers' buying


behavior will be gained through this report analysis.
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1.2 Objective of the study:


Broad Objective: To explore the various factors and analyze how those factors influence the
intention of buyers‟ while making decision to purchase „‟SHAMPOO‟‟.

Specific Objects:
 To examine the level of consumers‟ purchase intention
 To examine the impact of brand consciousness on consumer purchase intention
 To examine the perceive quality of the intended brand
 To examine whether the ingredients of shampoo is suitable to meet consumers need
 Observing and understanding the consumer demand whether this is a very credible
shampoo brand or not
 To focus on products competitive advantage.
 Identify and compare the performance of the mostly used brads with that of others.
 Identify findings of analysis and make recommendation based on the findings.

In order to meet the above criteria this report has gone through an empirical testing method
where we collected data for which questionnaires were constructed and distributed in an
online platform. The objective was to relate independent variable that is here consumers‟
purchase intention with the dependent variable of several influencing factor. The
questionnaire constructed is based on the factors that affect the consumers' buying behavior.
Refer to the appendix for sample of the questionnaire.

The first four questions in the questionnaire are constructed based on the personal factors.
The first question is about the gender, followed by the age, employment status and lastly, the
monthly income of the respondent. The fifth question is about the current brand of the
shampoo used by the respondent. The first four questions will determine the choice of
shampoo chosen by respondent as the first four questions are the manipulating variables and
the responding variable is the choice of shampoo. There is a combination of social factors and
psychological factors in question six. The purchasing decision is made by the family member,
friends' recommendation and good research and development (R&D), influenced by brand
ambassador, gentle to hair as it is chemical free are social factors and psychological factors
respectively. Only one choice is from promotion which is promotions and offers made for the
shampoo.
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1.3 Significant or importance:


Customers are more valuable to shampoo industry. Identify customers, build relationships
with them and work to bring in new customers with a similar profile is very important to be
successful. Understanding customer preference helps to sell more and make more profit as
well as it is to identify opportunities to sell them new products and target them with
appropriate offers. Sometime, customers help in to build customer loyalty, find new
customers, and develop new and improved products.

Branding create knowledge and developing a strong brand identity in customer mind. Good
branding of shampoo increases the value of its company, creates customer satisfaction, and
makes acquiring new customers easier.

A strong brand works to build customer recognition. That means when a customer goes for
buying shampoo, they are far more likely to choose a particular shampoo brand.

Brand creates differentiates in the marketplace. When customers recognize a particular


shampoo brand, they back to that brand, it helps lend a competitive edge to that company.
The more recognition create more competitive with other well-known brands.

Customers don‟t want to take risk when they purchase skin for hair care product. So, if
customers are attracted to brands, they share values with others. Strong brands convey values
to build an emotional connection with customers. Sometime, Brand loyalty lasts for a lifetime
and even transfers to generation to generation.

When any shampoo brand already has a loyal customers and strong brand, it is often easier
and less expensive to introduce new segment of shampoo.

Having a strong, well-known brand enhances credibility with customers shampoo industry. If
shampoo brand build credibility, it also build recognition, loyalty, and competitiveness.
Because credibility has a direct connection to customers ease of purchase shampoo.
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Chapter -2
Overview of the Shampoo industry in Bangladesh

The shampoo industries of Bangladesh depend on import process. Basically 90% of the
shampoos are imported shampoo. Bangladesh`s shampoo industry is deemed competitive
because lots a international brand takes top position in this sector. Some companies who has
positioned themselves as quality product provider imported brand of shampoo. Most products
have been imported from UK, France, Middle East, China, USA, Paris, Malaysia, Germany,
Thailand and India with reasonable price. Customer can easily buy their favorite & suitable
shampoo by online shopping Site. Besides, some local brands also operate in Bangladesh.
The reasonable priced products are most popular in the local market.

2.1 Marketing Growth in Bangladesh Shampoo Market:

The growth of shampoo market in Bangladesh is also supported by a changing lifestyle and
growing urbanization along with increasing environmental pollution. In addition, an
availability of a variety of shampoos through different type of distribution channels is also
aiding the growth of this market. Our research finds that the market offers a wide variety of
shampoos varying in contents, action and types. Also, the trend of using different types of
shampoos for different hair-related issues will give a fillip to the market of shampoos. The
Bangladesh shampoo market is expected to register a CAGR of 5.2% during the forecast
period, 2017 to 2022.
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Global brands are gaining a prominent presence in the local shampoo market, driven by faster
growth in demand because of the low-priced sachets that are popular among low-income
groups, students, and travelers. Rural and semi-urban consumers, many of whom are new and
irregular users, are the main contributors to the rise in sales of shampoos in the form of
sachets.

The introduction of innovative products such as herbal shampoos along with employing
aggressive marketing techniques will also boost the growth of the shampoo market. By
category, the market can be segmented into men, women, and others. The unisex segment
accounted for highest share of 41.83% of the market share by category in 2016, and is
expected to witness CAGR of 4.9% during the forecast period.

2.2 Market trend in Bangladesh:

The demand for hair care products is quite common for consumer to prefer branded items.
Some customers will find branded shampoos from globally renowned brands.

 By product type, Bangladesh shampoo market can be categorized into herbal and
chemical Kumarika harbal shampoo, Mumtaz herbal shampoo, Himalaya Herbals
Protein Shampoo, Lotus Herbals Henna Shampoo, Khadi Herbal Saffron, Tulsi and
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Reetha Shampoo, Patanjali Coconut Hair Wash, Biotique Bio, Kelp Protein Shampoo,
Meena herbal shampoo are become popular and available herbal shampoo in the
market in Bangladesh. Recently those are thriving in the market which general people
can easily get herbal shampoo.
 The demand of globally renowned brands like L‟Oreal, Pantene, Neutrogena,
TRESemme, Dexe, The body shop, Garnier and others has risen in the past five years
into Bangladesh.
 The 2 in 1 products are being manufactured, which offer both shampoo and
conditioner in one pack.
 The introduction of shampoo sachets was a very smart strategy adopted by the
manufacturers. About 65% of Bangladesh is rural, which has been the target for the
companies when sachets were introduced, which led to high sales, owing to the
economic leverage it provided to the lower income customers of the country.

The list of Existing brand in Bangladesh:


International brands in Bangladesh Local brands in Bangladesh

1. Sunsilk 1. Keya natural care shampoo


2. Dove 2. Select plus
3. Pantene 3. Meena harbal solution
4. All clear 4. Aarong harbal etc.
5. Head & shoulder
6. Garnier
7. L‟Oreal
8. TRESemme
9. Dexe
10. Herbal Essences
11. Simple gentle care
12. The body shop
13. Argan hair shampoo
14. SYOSS
15. Biotin solution
16. Neutrogena and Others
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The study examines the consumers' attitude towards the brand of Shampoo in Bangladesh.
These people were users of different brands of shampoo. Based on discussion with them, the
respondents stated that they resorted to six brands of shampoo which they considered as
predominant in the Bangladeshi market. These include Dove, Head & Shoulder, All Clear,
Sunsilk, L‟Oreal and Pantene.

Chapter-3

3.1 Purchase Intention of consumers:

Purchase intention means to plan to buy a good or attain a service. It refers to the desire of a
customer to buy a particular product of a certain brand. A positive purchase intention will
lead to a positive commitment that increases the possibility of consumers‟ purchase behavior
of products.

This research is prepared for the purpose of gaining a better understanding on the factors
influencing the consumers' buying behavior. The shampoo market is chosen as the field of
study on the consumers' buying behavior because everyone needs shampoo to wash their hair
so anyone could be the respondents of my survey. The age of the respondents in this survey
ranges from 18 years and above.

The questionnaire constructed is based on the factors influencing the buying behavior which
are the social factors, the personal factors and the psychological factors. In order to
understand the consumer‟s purchase willingness of shampoo first we have to examine the
level of consumers‟ purchase intention. This report by surveying the opinion of around 100
sample participants tries to show the closest result about how and on what factors vary among
people while intend to make purchase decision. Secondly, to examine the impact of brand
consciousness on consumer purchase intentions our 100 participants react differently on a
scale from strongly disagree to strongly agree. To examine the perceive quality of the
intended brand to examine whether the ingredients of shampoo is suitable to meet consumers
need.
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3.2 Factors influence the consumer purchase intention:

Social factors

Unique feature Personal factors

Brand name Psychological


factors

Purchase
Brand loyalty Brand
Intention consciousness

Emotional value Perceived Price

Packaging Perceived Quality

Perceived Risk

1. Social factors:

For social factors, the purchasing decision is made by the family member, friends'
recommendation. Some consumers just follow their family's decision in purchasing a
shampoo as they have no preferences on shampoo. As for friends' recommendation, if the
shampoo is proven good by their friends, some consumers will tend to buy it as they trust the
results of the shampoo told by their friends.

2. Personal factors:

Personal factors such as gender, age, employment status, lifestyle and monthly income of the
respondent influence purchase behavior. For age, young generations will prefer a brand that
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manufactures color lock shampoo so that the color of the dye on their hair will last longer,
whereas the older generation only prefers a basic range of shampoo as they seldom dye their
hair. When the person is working full time and earns a high monthly income, he or she will
definitely purchase a more high quality shampoo like the ones sold in the saloons. When they
go for chemical treatment on their hair, damage such as split ends and dry hair will be
resulted, so they are willing to spend more on high end shampoo to protect their hair from
such damages. From that, we can conclude that personal factor influence the consumers'
buying behavior.

3. Psychological factors:

Psychological factors of purchasing the shampoo include Motivation, Perception, Beliefs and
attitudes, brand loyalty. One of the psychological factors is the attitudes and beliefs of the
consumers where they believe that the shampoo must be good when the brand ambassador is
their favorite celebrity. This kind of buying behavior usually occurs among the teenagers or
the youth because they wanted to follow the footsteps of their favorite celebrity and what
kind of product used by the ambassador must be proven to be very good as they have a
perception that their idol is always perfect. Besides that, some consumers believe that the
shampoo is very gentle to the hair as the shampoo states that it is chemically free, where this
is known as attitude. Lastly, the consumers are also motivated to purchase that particular
shampoo when the company has done a good R&D. This is because it is very convincing
when there is a proven research done by the company.

4. Brand consciousness:

Brand consciousness is consumer‟s mental orientation in choosing well-known brand-name


of shampoo. Brand consciousness is combination of brand image and brand awareness.

Brand Brand
Brand image
Awareness consciousness
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Brand Awareness is the measurement of the accessibility of a brand in the memory of the
customer. Brand awareness can affect the decision making of a consumer. Attractive brand
name of shampoo, an effective advertisement, effective promotions & Sales programs, first
Mover Advantage are different variables which increase consumer‟s awareness about brands
of shampoo.

Brand image means how a consumer perceives a brand. Some of the consumers will be
influenced to purchase the particular brand of the shampoo. The most important goal of a
brand image is building a strong brand which is also fruitful in long term.

From our survey result, we can conclude that when a consumer is going to buy shampoo he
considers a brand. If the consumer knows well about his brand he will have more
opportunities for buying and make wise decision.

5. Perceived Price:

Another important factor that affects the purchase intention is the perceived cost to be paid
for any product as well as shampoo also. The price of the shampoo influences the buying
behavior as some consumers are not particular about the brands of the shampoo. They just
only want a shampoo which is cheap and good to wash their hair. Price sensitive consumers
are attracted more towards the cheaper products but the consumers who prefer quality over
the price they are less likely to buy low-cost product regardless of its quality. These
consumers think that only expensive products are high quality.

6. Perceived Quality:

Perceived Quality means how much a brand fulfills the expectations of its consumers. It
refers to the personal thought of a consumer about a certain brand or a product. According to
our findings, when it comes to shampoo brands, quality is given more importance than price.
Shampoo brands are generally categorized their product to ensure reliability, suitability with
best performance to their customers. Consumer-driven quality is very important to achieve
the competitive advantage of perceived quality because the perceived quality of a product
also depends upon the overall public image. This helps the companies to reduce the switching
tendency of customer and increase loyalty of customers.
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7. Perceived Risk:

Risk perception of a consumer also influences his buying intention.

The degree of consumers‟ risk perception is one of the important factors influencing buying
decision Normally consumers prefer to go for well known international brands of shampoo as
the risk factor in products. Consumers are less likely to purchase unknown brands because of
they think that the risk is high. Customers benefited of purchasing familiar brands to reduce
their purchasing risk.

According to our studies, risk encounters during their purchasing and consumption, which
have a negative impact on their attitude. In order to avoid that, consumers reduce to buy poor-
quality shampoo and instead prefer to buy more expensive ones.

8. Packaging:

An attractive package also attracts the consumers towards the product a well packed and well
advertised brand will always be preferred over in consumers‟ purchasing decisions.
Packaging is a key factor and products are normally evaluated by the consumers from the
details stated on the packaging. Shampoo are normally well-packaged and advertised, and
charge premium pricing marketed countrywide because of consumers regard low price, less
famous brands and simpler packaging of shampoo as quite unsafe for hair and scalp. Eyes-
catching packaging of shampoo positively influences consumer purchasing decision and
helps to create positive brand image.

9. Emotional value:

Customer‟s emotional and personal association also affects his purchase intention of buying
any certain brand of shampoo. If a shampoo has the capability or efficacy of changing the
feeling or emotion of consumers, it is endowed with emotional value. Consumers‟ emotional
response is indicators to measure emotional value to surroundings may have direct influence
on their decision on consumption.
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Emotional value

Positive emotion
Negative emotion
(Positive emotions like
(negative emotion like
comfortablity, loyalty,
fear and guilt )
nostalgia , excitement )

Emotional value might have relations with the aspects of perceived quality, perceived price
and economic situation. Customer feel satisfy for the product purchased if they think that
products were bought is good deal, others might have satisfaction only if price and quality are
considered worth it on what they pay for.

10. Brand loyalty & customer satisfaction:

Brand Loyalty means the extent of the commitment of a customer to his brand and how
many times he repeats his purchases for the same brand. A loyal customer will prefer to
purchase his brand consistently no matter what price is offered. Shampoo companies always
thrive to sustain its customers. They make strategies not only to attract new customers but to
cultivate loyal customers.

Customer satisfaction can be considered a key factor that affects the behavior of repurchase
intention. Satisfaction can be accumulated from the loyal buyers. Consumer is more likely to
make repeat purchase only if they derive an acceptable minimum level of satisfaction from
the last purchases. Satisfied consumers are more likely to share their experiences with others,
generate positive effect towards purchase intention and work as a recommendation from the
side of a worthy and reliable source can help the customer to purchase the brand. Similarly,
dissatisfied consumers are more likely to complain or switch brands, engaging in negative
Word of mouth

.
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11. Brand name:

Shampoo‟s Brand name explicitly conveying a product benefit leads to higher recall of an
advertised benefit claim consistent in meaning with the brand name compared with others.
Consumers are more likely to be influenced by brand name Even sometimes, consumer was
found to choose a product based on its brand name even if this meant choosing a product of
lower quality. Some of the consumers will be influenced to purchase the particular brand of
the shampoo.
Best quality product, comparative low price, a good distribution channel, effective promotion
program are the main strengths of Shampoo company which helps to make a good brand
name in the market and helps to increase sales.

12. Unique feature:


Consumers now view their shampoo choice as one that can make a difference in the way they
look, smell, and feel. The shampoo features is sophisticated such as anti-dandruff, hair fall
control, long lasting fragment or colour lock and the packaging of the shampoo is nice. Under
this new weight, shampoo marketers have started positioning consumers as responsible for
the health and beauty of their hair.

Chapter -04
4.1 Samples for the Study:

Sample of the study includes how many sample size we take while doing this survey. We
took 100 samples for this study.

4.2 Measurement:

We are measuring the consumer purchase intention which is affected by four factors. Those
are- Brand consciousnesses, Perceive quality, Emotional value, and Perceived Product Price.
Those four factors are also evaluated by some questions.

Brand consciousness
1. It is important to buy well known shampoo
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2. I try to strike to a certain brand in buying shampoo


3. I give importance on brand name to buy shampoo
Perceive quality
1. This is a reliable shampoo brand
2. The ingredients of this shampoo is suitable to meet my refreshment need
3. This is a very credible shampoo brand
4. Marketer of this shampoo is very empathic to the customers
Emotional value
1. This branded shampoo makes me feel good.
2. This branded shampoo gives me pleasure.
3. This branded shampoo makes me want to use it.
4. I feel comfortable in drinking this branded shampoo.
Perceived Product Price
1. I would rate the price of this shampoo as lower than expected
2. I would rate the price of this shampoo as higher than expected
3. I would rate the price of this shampoo as expected
Purchase intention
1. I intended to buy this brand when I need to buy shampoo
2. I plan to continue buying this brand shampoo even the company increases the price.

To measure all those variables we use questionnaire methods on 5 point rating scale. Where 1
indicates highly disagree, 2 indicates disagree, 3 indicates neutral, 4 indicates agree & 5
indicates strongly agree. So with those rating scale we tried to measure which factors are
more influencing and which are less while purchase a shampoo.

4.3 Data collection Procedures:

Data collection is the process of gathering and measuring information on variables of interest,
in an established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes.

We use the Google form for online survey to know which factors are influencing the
consumer purchase intention. We follow the Convenience sampling method where students
of UIU, friends and family members participated in this survey.
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4.4 Data Analysis:

After surveying the factors of consumer purchase intention we gave input the data of 100
samples to the Microsoft Excel and analysis those data. We tried to find the individual
average of all the factors and tried to find which factors are influences more to the consumer
purchase decision.

The Survey results are given below:

Factors influence the consumer purchase


intention.

4.5
4.06 3.99
3.86
4
3.5 3.35

3
2.5
2
1.5
1
0.5
0
Brand Consciousness Perceive Quality Emotional Value Perceived Product Price

4.5 Findings:

According to the analysis, we have found out that the average brand consciousness of all 100
samples is 3.86, perceived quality is 4.06, emotional value is 3.99 & perceived product price
is 3.35. All the average value is close to the 4.

Let‟s describe those values in the 5 point rating scale. Where 1 indicates highly disagree, 2
indicates disagree, 3 indicates neutral, 4 indicates agree & 5 indicates strongly agree.

So the brand consciousness value of 3.86 indicates that this factors is influencing the
consumer purchase intention that means when a consumer is going to purchase a shampoo,
he/ she choose a well-known branded shampoo rather than a non-branded shampoo.
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Although brand consciousness is an important factor but this is less important than perceive
quality. According to the research we can found out that the value of the average perceived
quality is 4.06. That is higher than the brand consciousness. That means when consumer is
going to purchase a shampoo, he/ she also consider the quality of this shampoo. And
according to the research consumer seeking the quality shampoo more rather than considering
other factors.

Another important factor that influences the consumer purchase intention is emotional value.
Emotions are the primary reason why consumers prefer brand-name shampoo. After all,
many shampoos we buy are available as generic and store brands with the same ingredients
and at cheaper prices. „Why do we decide to pay more for brand-name products?‟ that
because of the emotional attachment with a particular branded shampoo. The research says
the value of emotional value of purchase intention is 3.99. That is the second highest factor
that influences the consumer purchase intention.

Another factor that affects the consumer purchase intention is perceived product price. This is
the value that consumers willing to pay while buying a particular shampoo. The survey found
out the value of perceived product price is 3.35 that indicates this factor is also influence the
consumer purchase intention but this factor is less important than others. That means when
people is going to buy a shampoo they consider quality, brand name, emotional attachment
more than the perceived product value.

The research says the value of consumer‟s purchase intention is 3.77 that is positive response
of consumer at purchasing decision making. This rate is also positive reflection of brand
loyalty and customer satisfaction.

Discussion:

After analysis the 100 sample we have found out that perceived quality is more important
than others factors while purchasing a shampoo. So companies must consider the quality of
shampoo as a first priority and maintain and try to continuously increase the quality of
shampoo. Otherwise companies may lose their customer as well as decrease the brand value.
Besides that they also consider the others factors. Because other factors are also closely
affects the consumer purchase intention like the perceived quality.
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Chapter-5
Conclusion:
The research identified five factors that influence consumer buying behaviour that‟s are:
Brand consciousness which give importance on brand name to buy shampoo, Perceive quality
that gives credibility that the marketer of this shampoo is very empathic to the customers,
Emotional value helps to feel comfortable in using this branded shampoo, Perceived Product
Price that rate the price of this shampoo as expected and finally the Purchase intention that
ultimately continue buying this brand shampoo even the company increases the price.
Although these five factors have impact consumer purchase decision, the study proves that,
price-quality relationship is most important factor. Consumers prefer lower price moreover
take in to consideration of the quality that is ingredient content, fragrance and other depends
on consumer preference.

References:
 Wikipedia (www.wikipedia.com)
 Mplans(www.mplans.com)
 Now publishers (www.nowpublishers.com)
 Business Dictionary (www.businessdictionary.com)
 Tandf online (www.tandfonline.com/doi/)
 Intangible Capital.org (www.intangiblecapital.org.com)
 GSM Arena (www.gsmarena.com)
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Appendix:
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