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iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 48 Effects of Advertising on Consumer Buying Behaviour : With Reference to Demand for Cosmetic Products in Bangal ore, India Akwasi Ampofo University of Madras, Chepauk, Chennai 600005. Emai l: [email protected] Abstract The study seeks to examine the effects of advertisi ng on consumer buying behaviour considering demand for cosmetic products by residents in and around Nagara bhavi, Bangalore. Using a sample of 100 respondents of mostly the young, we ran regressions and found that advertising does influence expenses incurred on cosmetics products but much influence on the purchase of cosm etic products results from one’s income or pocket money available, and other factors like price of the prod uct, the brand and other people’s recommendation co ncerning the product. We concluded that, advertising satisfies the needs of the firm and the wishes of consumers. Its role c annot be replaced by any other means.
Therefore firms must s trategize and know when and where they should adver tise. The consumers need to be informed about products an d until that is done, the products of firms will still be in stores with no demand for them. JEL Classification: M37, D12 Keywords : Advertising–impact, Consumer behaviour–Bangalor e, Cosmetic products—demand, Cosmetics demand—Bangalore 1.0 Introduction Consumers are final end user of products.
They keep the production cycle moving. Consumers do play a v ital role in the economic system of any nation, thus, an y nation will face crisis if consumers don’t have the effective demand for goods produced. Consumers demand different commodities based on the ir taste and preference for them. Awareness of good influences consumers purchase of that good. Other f actors that influence one’s taste and preference for a good are psychological and environmental. Taste and pref erence for a good change overtime. Awareness of a p roduct, thus, advertisements, play a role in influencing th e taste and preference of consumers’ choice. Consumers are known to be rational with regard to t heir purchases, wanting to maximize their satisfaction when it comes to consumer goods.
A consumer will theref ore not purchase a commodity whose price is above the additional satisfaction that he derives from the good. How much of a good demanded, depends on the satisfaction the consumer gains from spending extra money on the good. Rational consumers will spend o n a good till their gains equal the cost they pay for t he product. Thus where MUP=MCP (Sloman and Wride, 2007) Advertising is the mass publicity of a product. It involves creating awareness of a product’s uses and benefits to others. Doing this makes a product available to tho se in need of them and this satisfies the needs of the advertiser; increasing sales. According to Cohen, advertising is a business a ctivity that employs creative techniques to design persuasive communication in mass media that promote ideas, goods, and services in a manner consistent with the achievement of the advertiser’s objective, the deli very of consumer satisfaction and the development o f social and economic welfare. (Cohen, 1988) From Cohen’s definition, it can be found that adver tising satisfies 3 objectives; to increase sales of the firms, to guarantee consumers a great deal of service and fin ally to ensure the social and economic welfare of society.
Advertising is seen in various ways. One encounters them mostly while watching television, reading mag azines and newspapers, surfing the internet, and on the ra dio or even simply while walking down the street (S harma and Sharma, 2009). Advertising has thus, a stimulating influence on the purchasing behaviour of the consum ers. Advertising are most effective on products that hav e intrinsic qualities. These qualities are not known at the time of purchase and it takes one to discover this upon using the product. Also, when there is a substantia l chance of differentiating a product, it best suits to adverti se on that product. Again, when there is a strong e motional purchasing motive such as to protect health or enha nce social position, it pays to advertise on such a product.
These conditions make the demand for the product mo re inelastic. The more emotions consumer attach to a product, they more they tend to be insensitive to i ts price. This is of importance to firms as they can earn high sales in pricing their products (Borden, 1942). Advertising on food, clothing, durables and househo ld items tend not to yield higher sales.
Consumers are not affected much by the publicity on such items as the y consume such products on a daily basis. The highe r the consumption of a product, the less effective is adv ertising on them. Advertising thus tend to have a less marginal effect on such items (P. Doyle, Nov., 1968) Advertising has a long term dynamic effect on consu mers’ purchase and sales of producers. A firm’s reason forNew Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.
27, 2014 49 advertising is to create awareness of a product. Th is has effect on current and future sales of firms as consumers tend to respond to the advertisement in the long ru n. This dynamic effect of advertising explains that firms usually advertise a product the most at the entry. (Sharma and Sharma, 2009) Producers often advertise their product with the in tention of increasing their sales which allows the firms to gain economies of scale and keep prices down. It also ma kes their products well known on the market.
Also, advertising is necessary when introducing new produ cts on the market. Without it, firms would find it difficult to break into market in which ther e are established brands.(Sloman and Wride, 2007) Advertising increases output, but increased output in turn increases production cost and this must be taken into consideration when comparing the cost and benefit o f extra money of advertisement.
The correct decision is to increase advertising until the marginal revenu e from an additional money from advertisement, is just equal to the full marginal cost of that advertisement. Tha t full marginal cost is the sum of the money spent directly on the advertisement and the marginal production cost that results from the increased sales that advertisement brings about. Thus the firm should advertise where MRA=MCA. (Pindyck and Rubinfield, 1995) Indian consumer market is one of the fastest growin g markets in the world with a very high increase in the demand for luxury goods and personal care products.
According to reports by Beauty Mart, the personal care products specifically, the beauty industry in India , is growing at a rate twice that of the US and Eur ope. The cosmetics market alone is growing about 15% to 20% annually, making it the right place for investors to channel their resources. The cosmetic products market have seen a 60% growth over the past five years. (Beauty Mart, 2013) The quest of this research was to find if this mass ive growth in the cosmetic market is as a results o f the advertisement made on the cosmetic products or othe r factors. As stated previously, advertising affect products t hat are believed to have an intrinsic quality that is not known at the time of purchase. One of such products is cosme tics.
It isfor this reason that we have chosen this produ ct as a case study. 1.1 Statement of the problem Advertising is essentially to fulfil the traditiona l desire of firms to reach the ever increasing popu lation so that their products may receive optimum exposure. The ro le of advertisement; to increase sales revenue and profits of the local firms and increase the demand for g oods, has been falling apart. (Sundarsan, 2007). Most increase in product sales, especially, cosmetic pro ducts have been attributed to other factors like taste; long term use of a product and users unwillingness to switch products. This has raised numerous questions as to why cosmetic firms still do advertise their products. Advertising has been a subject for debate either on one pretext or another for decades at the beginning of the 19th century.
People showed little interest but it later became a fertile topic for research at the turn of the 19th century. (Sharma and Sharma, 2009). This study therefore seeks to find out the role adv ertising play in the consumer buying behaviour of c osmetic products with emphasis to its users in and around N agarabhavi, Bangalore. We are considering cosmetic product because we beli eve it satisfies the conditions of commodities on which it is effective to advertise. There are a lot of cosmetic products which are differentiated but serve the sa me purpose.
Again these products are believed to have intrinsic qualities which can only be known after it has bee n used and lastly, some consumers attach strong emotions to th e end products of these good and use it to improve their social status. 1.2 Objectives The general objective of the study was to f ind out if there is any effect of advertising on consumer buying behaviour of cosmetic products in Bangalore. In our quest to achieve the general objective , the following specific objectives were set and formulated to guide in data collection and analysis: i.
To know the extent to which purchases of consumers are based on advertisement. ii. To find the age and social group that is influenced by advertised cosmetic products. iii. To find out the motives and reasons of consumers fo r demanding advertised cosmetic products. iv. To know the other factors influencing consumer purc hase besides advertisements The study continued with review of literature on ad vertising and the consumer buying behaviour.
It then followed with the methodology employed in the study . The findings and results were then presented which was followed by conclusion and recommendations for cosm etic firms. 2.0 Literature Review In reviewing previous works on the subject matter, so many views cropped up with others adding new knowledge to the subject. 2.1 Issue of Advertising in Economics: The Overview Advertising has been a subject discussed over centu ries ago, but prior to the 20th Century, this subject was not asNew Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.
27, 2014 50 important as it seems now. The reason been that, in the 19th century, economist were busy trying to develop the theory of perfect competitive markets, this theory assumed that, there was perfect information in the market and that, consumers had fixed preference for their prod ucts which were homogenous in nature. It was then t hought of as a waste of resource and an increase in cost of p roduction for one to advertise on products because consumers were not in any way going to respond to that. (Bagw ell, 2001) Also, there was no large scale production until the late 19th century when numerous inventions cropped up. The advancement in transportation and technology, made producers rethink their decision to improve their capacity and thus, ensure publicity of their products.
(Bagw ell, 2011) After these happenings, advertising then became an important area for economist to research into. An early reflection was given by Alfred Marshall (1890, 1919 ). In his works, “Principles of Economics” and “Industry and Trade”. He marks out two roles played by advert ising. To him, advertising might be useful in providing information to consumers which will help them satis fy their wants.
He termed this as a constructive role played by advertising. The second role he calls a combativ e role played by advertising may provide less information to consumers leading them to shift among products. Mar shall gave an insight to the role of advertising but less can be said of its fusion to microeconomics. (Bagwell, 2011) Chamberlin in his work “The Theory of Monopolistic Competition” came up wit h new ways of looking at advertising. He modelled the expenditure of a firm as a “selling cost” that expands a firm’s demand fo r a differentiated product. In his work, he describes a market structure in which there are many firms pro ducing and selling similar but not identical products. In this market, Chamberlin believes that advertising may p rovide consumers with information about their wants but al so adds that, it can be persuasive and alter one’s demand for another. Advertising when informative makes consum ers responsive to price changes and thus increases the demand elasticity for the product but a persuasive advert will create brand loyalty making the demand for a good inelastic(Bagwell, 2011).
Scale economies play a central role in Chamberlin’s work and he believes that, such economies may exis t in production and advertising as well. Chamberlin then concluded that, the effects of adve rtising cannot be determined by theory alone, thus where a firm’s demand curve is tangential to its U-shaped a verage cost of production and selling, but by also considering the extent to which advertising is whether informat ive or persuasive and also whether scale economies exist. (Bagwell, 2011) After this insight by Chamberlin, there came into e xistence three views of advertising; persuasive, informative and complementary. The persuasive view developed by Robinson and later advanced by Braithwaite (1928) and Kaldor (1950), and empirically supported by Bain (1956) and Comanor an d Wilson (1967) holds that, advertising affects one’s demand and it is capable of ensuring brand loyalty. This view adds that, advertising makes demand for a product inelastic and thus ensures increase in the price of the product and this effect might lessen as a resu lt of scale economies. The view also adds that, consumers are u nwilling to try new products especially those of unknown quality and this may deter entry of new producers.
These scholars agree that, this view of advertising will only work in the presence of scale economies in producti on. The informative view of advertising, propagated by Ozga (1960) and Stigler (1961) holds that, advertising serve to inform consumers about a product. They add that, advertising increases the demand elasticity for a product and this happens because, it is believe by these sc holars that, as information of a product is given, it is assumed the product is of high quality and this can even in crease the demand for products which is of low qual ity in general. There is the complementary view of advertising whic h is developed by Stigler and Becker (1977) and thoroughly defended by Stigler and Murphy (1989).
This view be lieves that, advertising influences consumers by attaching a “complementary influence in the consumer’s utility function” (Bagwell 2001). It might be that, a consumer would like to attain some status in society and usi ng a certain product is capable of achieving this. What this view means is that, the consumer, in his quest to a chieve this social status will be influenced by this advertising. These views make us understand the different phases through which advertising has gone and we now know the areas through which advertising works perfectly. 2.2 Advertising and Consumer Behaviour A firm’s primary mission is to reach prospective cu stomers and influence their awareness, attitudes and buying behaviour.
They spend a lot of money to keep indiv iduals (markets) interested in their products. To succeed, they need to understand what makes potential custom ers behave the way they do. The firm’s goal is to get enough relevant market data to develop accurate pro files of buyers to find the common group for communications. This involves the study of consumer behaviour (Arens, 1996). Proctor et al.
(1982) noted that the principal aim of consumer behaviour analysis is to explain why co nsumers act in particular way under certain circumstances. The study tries to determine the factors that influence consumer behaviour, especially the economic, social and psyc hological aspects which can indicate the most favou redNew Media and Mass Communication www.iiste.
org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 51 marketing mix that management should select. Consumer behaviour analysis helps to determine the direction that a consumer’s behaviour is likely to take and to give preferred trends in product developme nt, attributes of the alternative communication method etc. Consumer behaviour analysis views the consumer as another factor of production, a factor that producers cannot control and this factor interprets the pro duct or service not only in physical terms, but als o according to their social and psychological makeup. Incorporation of this knowledge in any firm’s decis ion will ensure a greater satisfaction of the firm’s objective.
Most views have cropped up as to maintaining a sust ained profit and it is when firms adopt to the new order of making consumers a part of their daily decision, ot her than just selling products to them, will firms achieve this target. Firms in achieving this state have a greate r gain in advertising their products. 2.3 The Indian Buying Behaviour The Indian consumer buying behaviour has seen treme ndous growth over the past years. This can be attributed to the high growth in the middle class in the country. This increase in the middle class has resulted in increased demand for luxury and personal care products. Many foreign firms and entrepreneurs have noted the increase in the demand for goods and have ensured increasing su pply of these goods to consumers. A lot of foreign companies moved into the Indian market after the li beralisation of trade and there have been massive increase in job opportunities and income resulting in high dema nd for goods and services.
The rise of companies after trade and liberalisatio n in the 1990s, saw most cosmetic firms enter India with local ones gaining grounds from partnerships. Consumers h ave since then increase their demand for products of these cosmetic firms. It is in this steady growth that th e Associated Chambers of Commerce and Industry in I ndia, ASSOCHAM (2013) estimated the Indian cosmetic marke t to be $50 billion. The high demand in cosmetic products has been a great deal for firms and the In dian market has also benefitted from the products p rovided by these firms. ASSOCHAM has also found out that, there is increase in the buying behaviour among the youth in India especially with regard to personal care products. T hey attributed the increase in the female spending on cosmetic products to an increase in female employability and females being bread winners in their families. They also found out that, men on average spend more on cosmet ic products than women, with the men spending averagely about Rs.1000 – Rs.
5000 on cosmetic products monthl y. This, they attributed to men’s demand for decent hair care, deodorants and razor blades. The high increas e in the spending on cosmetic products is as a result of the youth in India being conscious of their bodies and looking for products to enhance their physical appe arance. With an increase in the level of literacy and the i nfluence of the media, there has been a greater inf luence on the spending of males in particular (ASSOCHAM, 2013) This high growth in demand for cosmetic products ma kes it worthwhile researching this area to know the motives behind consumers purchase and factors assoc iated with their purchase.
2.4 Empirical Review Finding the relationship between advertising and bu ying behaviour empirically, Ekelund and Gramm (1969 ) in studying “A Reconsideration of Advertising Expendit ures, Aggregate Demand and Stabilization” concluded that, there is no positive relationship between advertisi ng and aggregate consumption. Taylor and Weiserbs (1972) in studying the relation ship between advertising expenditure and aggregate consumption using Houtakker-Taylor model revealed t hat, there is a simultaneous relationship between advertising and consumption but not a unidirectiona l. Thus, advertising and consumption seem to work o n each other. Dr.
Abey P. Philip (2007) in his study of “The Rela tionship between Advertising and Consumption in Ind ia: An Analysis of Causality” made use of unit root test, cointegration and error correction model and found out that, fluctuations in advertising expenditure positively impacts consumption expenditure. Sharma and Sharma (2009), using Fixed Effect Model of Panel Data Analysis for 134 companies, found in their study that, besides advertising, factors like compa ny’s brand, quality of the product and company’s re putation affect the sales of a company. Dr.
Naveen Kumar et al. (2011), using mean and stan dard deviation, in their study of advertising and consumer buying behaviour with special reference to Nestle L imited, India found that, advertising and sales promotion together with the image of a company influence the consumer buying decision. They added that, the qual ity and price of a product also influences a consumer’s pur chase of a good. Banerjee et al (2012) found evidence of cointegrati on between marketing communication and sales i n the personal care industry in India. Bin Junaid A. et al (2013) found in their study of female buying behaviour of cosmetic products in New Delhi and NCR that, as income of females increase, their purchase of cosmetic products also increase.
They also, added that, this increase in expenses on cosmetic p roduct is made possible by the advertisement made o n them. ASSOCHAM (2013) in a survey of 2000 youth in major cities in India found that, there is a high increase in the consumption of cosmetic goods among the youth. They added that, men on average spend more on cosmeticNew Media and Mass Communication www.iiste.
org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 52 products than their female counterparts and attribu ted this increase to the awareness created on the products. 2.5 Research Gap From literatures reviewed, we can say that, indeed advertising has a positive effect on the purchase of consumers and it positively influences the sales of companies . We found that most work done in the subject, found out the effects of advertising on companies’ sales using various econometric tools. Little can be said of wo rk done on the consumers’ side using econometric an alysis.
Also, most reviewed literature made use of descript ive statistics thus, measures of central tendency and dispersion which didn’t give any empirical evidence as to how much effects advertising has on consumer buying behaviour. It is therefore a necessity to have this research done. 3.0 Methodology The study was to find the effects of advertising on consumer buying behaviour of young men and women w ith a special case of users of cosmetic products in and a round Nagarabhavi, Bangalore. The methodology used to help us with the research, shows how the research was carried out taking into consideration available resources and limitations. 3.
1 Study Area The study area for the research was Bangalore, whic h is the capital city of Karnataka State. It is in the Southern part of India. Most respondents were people in and around Nagarabhavi, which is a suburb of Bangalore. 3.2 Sample Size The sample size for the study was 100youth responde nts who reside in and around Nagarabhavi, Bangalore. From previous studies it is revealed that most cons umers of cosmetic products are young men and women in India (ASSOCHAM, 2013) and based on this revelation , we selected this group to have our objective achieved.
3.3 Sampling Technique The sample techniques selected in administering the questionnaire were purposive sampling, and snowbal l sampling. Purposive sampling was used considering m ostly the youth in the area as found in previous studies, the snowball sampling was used to get easy access t o cosmetic product users and ensured faster gathering of information. This sample was chosen bearing in mind the constrai nts and the limited resources. Using the snowball sampling technique, an online questionnaire, created with Go ogle Forms was administered to some people in and a round Nagarabhavi. This was to get responses from mostly females. It was difficult for males and especially a foreigner to have females respond to the questionnaire.
3.4 Source and Type of Data The sources of data were primary data, collected fr om respondents in the study area, observations and interviews conducted with respondents and sales managers. There were unstructured interview with sale manager s of cosmetic products at 2 different malls in and around Nagarabhavi, Bangalore. We found out from the manag ers, how consumers reacted to goods advertised, factors they considered before making purchase and the reas ons behind their purchase of these goods. Sales managers also gave us information on the bran ds most patronised by consumers of cosmetic product s.
They also gave us the proportion of brands that mak e up most of their monthly sales. Observations of the consumers were made at these tw o Malls as they purchased cosmetic products. We interacted with them when they were done filling th e questionnaire.
The information collected through the issued questi onnaire, interviews and observation gave us a clear understanding of the buying behaviour of the youth on cosmetic products and which factors they conside red in their purchase. 3.5 Research instrument Questionnaire was the main device used in the colle ction of data. Primary data were used. Primary data are the pieces of information elicited from respondents wh ich were directly related to the research topic. The questionnaires contained structured questions w ith the main aim of eliciting information on the effects of advertising on consumer’s purchase. The questionnai re was structured with closed ended questions and open ended questions.
The closed ended questions made it easier to compare the views of the respondents. It also provided standardized responses and made coding eas y. The open ended questions gave the respondents mo re room to express their views and opinions, answer qu estions in their own way and give suggestions where necessary. It also gave us different views from the respondents and quantitative information on the mo nthly income or pocket money and expenses made on cosmeti cs. Using the data from the consumers assisted us to process the information needed and to test the info rmation empirically. The questionnaires were made up of list of qu estions relating to the objectives of the study. The questionnaire was made up of two sections; demograp hic data and those relating to the study.
Each of these sections focused on specific issues that relate to the research question. The questionnaires were admi nistered with greater assurance of confidentiality, anonymit y and convenience.New Media and Mass Communication www.iiste.
org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 53 3.6 Data Collating/Processing The collected data was then collated and analysed u sing SPSS and STATA. These are statistical package tools used for presenting and analysing data. Using SPSS, we found the descriptive statistics of the data and presented them in graphs. We cross tabulated some variables l ike age and sex, advertising effect and sex among others. This was to find out which group had advertising in fluencing their purchase of cosmetic products. Using STATA, we ran a regression of expenses on cos metic products on income of consumers, advertising, price, brand, and recommendation influence on consumers.
Using qualitative data made it easier to know and o bserve the behaviour of consumers of cosmetic produ cts. To achieve our objectives, this data helped us know wh ich among the social groups are influenced most by advertising in their purchase of cosmetic products and also to what extent their purchases are affected by adverts as well. Also, the data gave us most of the qualiti es consumers look out for before making purchases l ike the price, income and others recommendation.
3.7 Regression Model The regression model that was ran using STATA was EXP = 1 + 2ln_INCOME+ 3Da+ 4Db + 5Dp+ 6Dr + ? Where EXP = Expenses on cosmetic products and which is the d ependent variable. ln_INCOME is the log of income of consumers, which is the co variate of the model Da is the dummy for those influenced by advertising.
Da=1 , when respondents are influenced by advertising, Da=0, if otherwise Db is the dummy for those considering the brand of co smetic products. Db=1 when one considers brand of cosmetics products, Db=0, if otherwise Dp is the dummy for those considering the price of a cosmetic product. Dp=1 when one considers price, Dp=0, if otherwise. Dr is the dummy for those influenced by others recomm endation in their purchase. Dr=1 , when one considers others’ recommendation, Dr=0, if otherwise.
1 is the intercept or benchmark for those who aren’t influenced by advertising, price, brand and recommendation from others in their purchase. 2 is the slope coefficient of income showing the abs olute change in income on expenses made. 3, 4, 5, 6 are the differential intercept coefficients of t hose influenced by advertising, brand, price and other’s recommendation. ? is the error term factoring other factors that affe cts the purchase of cosmetic products but are not considered in the model The log of income or pocket money was used to corre ct any biasness in the data and make it easier to explain and understand. It would have been appropriate to estimate the pric e elasticity for cosmetic products, however it was not possible to include the actual prices in the model since inf ormation on that was not provided for in the questi onnaire hence introducing a dummy for how price influences customers’ purchase was the best option. This was because, consumers purchase different products even within t he same brand, hence using the prices of different products would be difficult for the study. The dummies were used to know how consumers rate th ese factors before making a purchase. Since the study is on consumers’ behaviour in purchasing cosmetic good s, factoring these qualitative variables was essential.
3.8 Hypothesis testing The hypotheses of the regression model were then te sted to know empirically, the effects of advertising on consumer purchase of cosmetic products. Other varia bles in the model were also tested. The null and alternate hypotheses formed were; Ho: advertising has no influence on the consumer’s purchase of cosmetic p roducts H1: advertising has influence on the consumer’s purcha se of cosmetic products Ho: income of consumers has no influence on the consumer’s purchase of cosmetic p roducts. H1: income of consumers has influence on the consumer’s purchase of cosmetic products. Ho: price of a product has no influence on the consumer’s purchase of cosmetic p roducts H1: price of a product has influence on the consumer’s purchase of cosmetic products Ho: Others’ recommendation has no influence on the consumer’s purchase of cosmetic p roducts H1: other’s recommendation has influence on the consum er’s purchase of cosmetic products Ho: Cosmetic brand has no influence on the consumer’s purchase of cosmetic p roducts H1: Cosmetic brand has influence on the consumer’s purc hase of cosmetic products 4.0 Data Findings and Analysis After collating the questionnaires administered and the observation and interview conducted, the following were the findings.New Media and Mass Communication www.
iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 54 4.1 Observation and Interview. Table1.0 Consumers Sales Managers Total Men Women Total Number of Observation 10 15 – 25 Total no of Interviews conducted 8 10 2 20 From 25 observations on consumers, we came to understand that, men and women go in for cosmetic products for various reasons and are influenced by advertisi ng through various means. We observed and interacted with 10 females who use cosmetic products and they stated that their reason for using them were to be confident and elegant.
Accord ing to them, the mere thought of other’s recognising their physical looks boost their morale and makes them gi ve their best. They added that, they are loyal to a brand of cosmetic product they have been introduced to it by their family, particularly their mothers and do not consider changing those brands for any other, irrespective o f the adverts made on those products. Some are pric e sensitive to cosmetic products and do not consider any brand or adverts made on them that much. Thus, they purch ase the products that is within their budget. Others also a dded that, they depended on the recommendation from others. They believed that, the words from their friends ab out a product really is worth purchasing. Advertisements on cosmetic products, according to t hese women, inform them on the essence of using the product and create awareness of the cosmetic produc ts but their purchase of these products is highly influenced by other factors like the quality, brand, others re commendation and price. Interaction with 2 other females after they are don e filling the questionnaire revealed that, they were emotionally attached to the Oriflame brand.
Their reason was th at, the adverts on the products claimed, the final products are not tested on animals, and to these women, this app eals to them making them patronise the product. 8 men we interacted with were mostly concern about how they wanted to be seen among their peers. Most of these who were single wanted to appear presentable. Most men like to go with a brand they are familiar with, depending mostly on recommendations from their frie nds even when they have seen an advert of the product on television and the internet. Some men, like the wom en, were price sensitive; they considered the price at times when purchasing a product. Some respondents also added that, they admire celeb rities promoting cosmetic products. They believe, the mere fact that a ‘Superstar’ was using the product means , it is of value and worth purchasing. This in a way influences their purchase of the cosmetic products.
These cele brities create a certain level of brand loyalty for consumers and some are unwilling to switch brands irrespectiv e of the adverts they see of other products. From our interaction with two (2) sales managers of cosmetic products at Gopalan Arcade and Garuda Mal l all in Bangalore, they revealed that, most customers co me with a particular product brand in mind. They pu rchase those products and do not consider any other.
Other s also come describing an advert they saw on television. These adverts are mostly of celebrities associating with a brand. Most customers however, were price s ensitive and compared prices to know which product is cheape r and of good quality. Some of these customers, the managers added, rely sometimes on the recommendatio n of sales attendants and the managers themselves.
The managers also revealed that, most female costum ers patronise brands like Lakmé from Hindustan Unilever Limited, Revlon and Nivea. They added that, these b rands make up most of their sales every month. Acco rding to them, they have promotional sales in arrival of new products on the market and the reception they g et is always overwhelming. With the men, the managers revealed that, they patr onise products like Garnier and L’Oreal.
Some men, according to the managers, use unisex products from Lakmé as well. Attempts made to contact the Head of Sales Departme nt at Hindustan Unilever Limited were unsuccessful after numerous emails sent and calls made. This was to fi nd out how the company monitor its advertisement on cosmetic products and how they evaluate the impact of advertisement made on their cosmetic products. 4.
2 Findings from Questionnaire The 100 questionnaires were administered and variou s responses were gathered and processed. 4.2.
1 Income and expenditure distribution of respon dents From the data gathered, males made up 50% with fema les taking the other 50%. Men spent on average, 4.26% of their monthly pocket money on cosmetic products, wh ile the females spend 4.78%. One remarkable thing noticed in the table is that, the standard deviations of income is more than the mean value. This is as a result of the high outliers in the inc ome with the minimum being Rs. 1,000 and highest be ing Rs.
100,000.It can also be seen that, most respondents recorded Rs. 5,000 as their monthly pocket money. T his can be attributed to most of the respondents being stud ents and having below the mean value as pocket mone y.
New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 55 Table II.
Descriptive Statistics Men Women Total Income Expenses Income Expenses Income Expenses Total no. obs 50 50 50 50 100 100 Mean(Rs.) 15596 665 14682 702 15139 683.5 Median(Rs.) 10500 500 5000 500 10000 500 Mode (Rs.) 10000 1000 5000 500 5000 500 Standard Dev. 16844.5 482.
7906 17812.84 494.3518 17253.77 486.4846 Minimum(Rs.) 1500 100 1000 100 1000 100 Maximum(Rs.) 100000 2000 80000 2000 100000 2000 4.
2.2 Advertising influence on cosmetic products Out of 39% preferences for Hindustan Unilever products, 29% of the respondents are influenced by advertising when making purchase.15% out of 20% of users of the Garnier brand are influenced by advertising in their purchase. Nivea has 11% out of 17% of users, being influenced by advertising. In all, 70% of the responses have advertising influencing their purchase of cosmetic products. This percentage is highly remarkable as firms get returns for investment made in publicising their pr oducts. Surprisingly, the same number of men and wo men are influenced by advertising on cosmetic products. Fro m the study, 35% of males and 35% of females have advertising influencing their purchase of cosmetic product, representing 70% of total sample surveyed.
Advertising influence reach a lot of people through different media. Out of the 70% of respondents inf luenced by advertising, 48% encounter advertising messages on television,14% from the internet and 8% through the print media. Effective use of these media will ensure inc rease in the sales revenue of firms. When we consider the age group of the respondents, advertising has a stronger influence on the purchase of the working group; those within the range of 25-35 year s. Thus, 50% of respondents who are influenced by advertising fall in this group, with 48.6% from the age range 15-25 years.
This shows that, most peopl e in the working group are responsible for most purchase of cosmetic products. But it should also be noted that, those within the age range 15-25 years should also be fac tored in the manufacturing of cosmetic products and advertising on them. As to whether the respondents were satisfied using the product they purchased or not, 61% out of the 7 0% of those influenced by advertising on a cosmetic produ cts asserted that, they were satisfied with them with the remaining 9% not satisfied using the product. Most of those who were satisfied after using the product added that, their expectations on the products were met and the advertising did really inform them about the product. The remaining 9% who were not satisfied after purchasin g the product via the adverts on them added that, the advertisement exaggerated and the products did not meet their expectations as was informed via the adverts.
This affirms Marshall and Chamberlin’s view on the roles of advertising as being constructive and combative. 4.2.3 Regression Output Several regression models were ran to know the best functional form in relation to our study. The most appropriate functional form we got was the lin-log model, with the expenses on cosmetic product being the dependent variable and the log of income or pocket money together with other qualitative variables being the independent variables. In estimating this, the foll owing regression was ran using STATA.
EXP = 1 + 2ln_INCOME+ 3Da+ 4Db + 5Dp+ 6Dr + ? After running the regression, upon checks, we realised th at, there existed unequal variance thereby resulting in the insignificance of income. The Cook-Weisberg test for heteroskedasticity was c onducted and it revealed that, the chi-square test for the residuals was 8.24 with a p-value of 0.0041, which means rejecting the null Hypothesis, thus, variance is constant. To correct this error so as to make the m odel BLUE, we ran a robust regression and the outcome sh owed that, the test statistic for income was now significant at 5%.New Media and Mass Communication www.
iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 56 Output 4.1 Output 4.2 Test of heteroskedasticity Output 4.
3 Fitting the regression showed that, a consumer’s in come was positively related to the expenses made on cosmetic products. The slope coefficient of income means tha t, an increase in income by 1% will increase the expenses on cosmetic products by Rs. 0.77( 2*0.01). This shows that a consumer will increase his or her expenses on cosmetic products by Rs. 0.
5( 2* ) for a Rs. 100 increase in income. This shows a rela tively smaller increase in expenses on cosmetic products f or a larger increase in income. Thus a 1% change in income will increase expenditure on cosmetic products by 0 .
11%. Notwithstanding this, the slope coefficient of income was statistically significant at 5% and it therefor e plays an important role when one considers spendi ng on cosmetic products. _cons -592.
2451 444.6135 -1.33 0.186 -1475.03 6 290.5453 Dr 224.1852 111.7674 2.
01 0.048 2.268537 446.1019 Dp 205.5358 137.7003 1.49 0.139 -67.
87151 478.943 Db -118.1303 217.0312 -0.54 0.588 -549.0509 312.7904 Da 409.
7348 117.7648 3.48 0.001 175.
9099 643.5596 lnincome 77.12331 41.
99456 1.84 0.069 -6.257877 160.5045 Expense Coef.
Std. Err. t P;|t| 95% Conf. Interval Total 23430275 99 236669.
444 Root MSE = 445.49 Adj R-squared = 0.1614 Residual 18655458.6 94 198462.
325 R-squared = 0.2038 Model 4774816.42 5 954963.285 Prob ; F = 0.0006 F( 5, 94) = 4.
81 Source SS df MS Number of obs = 100. reg Expense lnincome Da Db Dp Dr Prob ; chi2 = 0.0041 chi2(1) = 8.24 Variables: resid Ho: Constant varianceBreusch-Pagan / Cook-Weisberg test for heteroskedasticity . hettest resid _cons -592.2451 373.
8965 -1.58 0.117 -1334.625 150.
1351 Dr 224.1852 103.7664 2.16 0.033 18.15466 430.2158 Db -118.
1303 111.9414 -1.06 0.294 -340.
3926 104.1321 Dp 205.5358 114.
3759 1.80 0.076 -21.5603 432.6318 Da 409.
7348 82.48144 4.97 0.
000 245.9659 573.5036 lnincome 77.
12331 38.35454 2.01 0.047 .9694786 153.2771 Expense Coef. Std.
Err. t P;|t| 95% Conf. Interval Robust Root MSE = 445.49 R-squared = 0.
2038 Prob ; F = 0.0000 F( 5, 94) = 7.43Linear regression Number of obs = 100New Media and Mass Communication www.
iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 57 Advertising influence has a positive effect on expe nses made on cosmetic products.
One who is influenc ed by advertising will spend on average, Rs. 409.73 more on cosmetic products than those not influenced by it. This shows a greater influence of advertising on the pur chase of cosmetic products as indicated by 70% of t he respondents who purchase cosmetic products. The coe fficient of advertising influence is statistically significant at 5% indicating the important role advertising pla ys on the purchase of cosmetic products. The recommendation from others also positively infl uence the expenses on cosmetic products.
One who fo llows the advice of others spend Rs.224.19 more than thos e who do not. Statistically, this coefficient is significant at 5% and shows that, what other people say of a produ ct positively influences the expenditure made on it.
The influence of price has positive effect on how m uch is spent on cosmetic products. This shows that, someone who is cautious of price differences will spend Rs. 205.04 on cosmetic products.
This coefficient is not statistically significant at 5% indicating that, th ere is no difference between those who factor price when purchasing a cosmetic product and those who don’t. It can be added that, consumers do not consider the price of cosmetic products that much if it will serve the pu rpose they want it to from information gathered thr ough advertising and from others view. Brand choice interestingly, is negatively related t o the amount spent on cosmetic products. Those who considers brand spend Rs. 118.
13 less. The coefficient of thi s variable is statistically insignificant at 5% indicating that, there is no difference on how much is spent on cosm etic products between those who consider a brand of a cosmetic product and those who don’t. All these variables, as shown, have a role to play in the purchase of cosmetic products. They are 20% responsible for the variations in the amount of money spent on them and with an F value of 7.
43, all the slope coefficients are statistically significant at 5%. This indicates that, though one might not consider the brand of a product as well as how much is charged on the product, one wil l be influenced by them together with the adverts seen on them and the advice from others on a product. It ca n be added that, one will spend on a product if others tell him or her of its quality. This can be seen from our su rvey that, 99% of the respondents go out for the be st products that address their needs and wouldn’t worry about t he brand or the high cost on the product. This last model is chosen because it explained the problem better.
The variation in income was reduced by taking its natural log and this made the income or pocket money of the respondents statistically significant. Also, most of the variables considered in the regression are s ignificant with a higher R2. 5.0 Recommendations and Conclusion It can be seen from the study that, on average, adv ertising does have influence on the purchase of cos metic products and it is a must for cosmetic firms to con tinue advertising on their products if they require maximum sales.
Also, we found out that, though advertising does influence the purchase of consumers, other fac tors like income and others’ recommendation do play a role in one’s purchase. In our study, we had wanted to estimate the effect of advertising on firms’ sales as well, but no access to data was the reason why this was not achieved. Again, we were constraint by time and the resources at our disposal. We will suggest to others to increase the sample size and the study area to know the effect o f advertising on consumers’ buying behaviour. From the study, the following recommendations were suggested. i.) Advertising works and affects consumers’ purchase i n the long run. It is required of firms to increase their advertising budget and make advertising livel y for consumers to associate with. This will definitely have an impact on the sales of cosmetic firms. Advertising in the long run tend to make demand for cosmetic goods inelastic and this accord ing to Robinson (1933) and Chamberlin (1933) will persuade consumers to be attached to a particu lar brand. ii.) The complementary view of advertising was found not to be so strong for cosmetic products. The respondents stated that, the prestige attached to a brand was not all they look out for when purchasing a product. With as high as 40% of respon dents stating this as a weak reason for purchasing a product, it falls on cosmetic firms to concentrate on the quality which 99% of the respondents believe they look out for in a product. iii.) With about 15% to 20% growth in the demand for cosm etic products annually, it is required of firms to pay attention to the required needs of consumers an d channel this into their advertising contents. Making use of the most patronised media; television internet and prints, to increase their sales. iv.) One thing also found in the study was that, consume rs like to factor in discounted prices when purchasing cosmetic products. It is therefore requi red of firms to make their prices affordable for consumers. Advertising satisfies the needs of the firm as well as the wishes of consumers. Its role can never be replaced by any other means in this dynamic world of ours. It i s therefore a must for firms to strategize and know when and where they should advertise to gain maximum returns . The consumers should be considered as a factor of production, they need to be informed about products and until that is done, the products of firms will still be inNew Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 58 stores with no demand for them. References Associated Chambers of Commerce and Industry in Ind ia, ASSOCHAM (2013), http://www.assocham.org/prels/shownewsarchive.php?i d=4128 (Accessed on 13/05/14) Bagwell K. (2001),”The economic analysis of adverti sing, Introduction”, American Economic Review Volum e 2, 81, 224-239 Bain, Joe S. (1956), “Barriers to New Competition: Their Character and Consequences in Manufacturing Industries”, Cambridge, MA: Harvard University Pres s. Bin Junaid A. et al. (2013), “A Study on the Purch ase Behavior and Cosmetic Consumption Pattern among Young Females in Delhi and NCR”, Journal of Social and Development Sciences, Vol. 4, No. 5, pp. 205-211, May 2013 (ISSN 2221-1152) Borden N. H (1942), “The Economic Effects of Advertising” First Edition, Richard D. Irwin, Inc. Beauty Mart Report, (2013) http://www.beautymart.co .in/industry-scenario-india.php (Accessed on 27/05/14) Chamberlin, E. (1933), “The Theory of Monopolistic Competition”, Cambridge, MA: Harvard University Press.1948. Cohen D.(1988), “Advertising”, Longman Higher Educa tion Comanor, William. S. and Thomas. A. Wilson (1967), “Advertising, Market Structure and Performance,” The Review of Economics and Statistics, 49, 423-40. Comanor, William S. and Thomas A. Wilson (1974), “A dvertising and Market Power”, Cambridge, MA: Harvard University Press. Doyle P. (Nov., 1968), “Advertising Expenditure and Consumer Demand” Oxford Economic Papers, New Serie s, Vol. 20, No. 3 (Nov., 1968), pp. 394-416, Oxford Un iversity Press. Ekelund, R. B., Jr. and Saurman D. S. (1988), “Adv ertising and the Market Process: A Modern Economic View”, San Francisco, CA: Pacific Research Institut e for Public Policy. Gujrati, Damodar N. (2003),”Basic Econometrics”, Mc -Graw- Hill Companies, Inc.: New York Horsky D. and Simon L.S. (1983), “Advertising and t he Diffusion of New Products”, Marketing Science, 2 (1), pp. 1-17 Krishnan V.T. and JainD.C. (2006), “Optimal Dynamic Advertising Policy for New Products” ,Management Science, 52 (12), 1957-1969 Kumar A. et al (2011) “Advertising and Consumer Buy ing Behaviour: A Study with special reference to Nestle ltd.”, Volume No. 2 (2011), issue No. 10 (Octobe r, 2011), International Journal of Research in Comm erce ; Management. Marshall, A. (1890), ?”Principles of Economics”, Lo ndon: MacMillan and Co. Marshall, A. (1919), “Industry and Trade”, London: MacMillan and Co Ozga, S. A. (1960), “Imperfect Markets Through Lack of Knowledge,” Quarterly Journal of Economics, 74.1, 29-52. Pindyck R. S. and Rubinfield, D. L. (1995), “Microe conomics”, Prentice Hall International, Inc. pp. 395 Robinson, Joan (1933), “Economics of Imperfect Comp etition”, London: MacMillan and Co Sharma J, Sharma S., “Sales and Advertisement Relat ionship for Selected Companies Operating in India” (2009), School of Doctoral Studies (European Union) Journal July, 2009, No. 1 Sloman J. and Wride A. (2007), “Economics” Seventh Edition, Prentice Hall Financial Times Stigler, George J. and Gary S. Becker (1977), “De G ustibus Non Est Disputandum,”American Economic Revi ew, 67, 76-90. Sundarsan, P.K. (2007), “Evaluating Effectiveness o f Advertising on Sales; A Study Using Firm Level Da ta”, ICFAI Journal of Managerial Economics, Vol. V (1), pp.54-62 Taylor, Lester D. and Daniel, Weiserbs (1972), “Advertising and Aggregate Consumption Function” , American Economic Review, Vol. LX11 (4), pp.642- 55New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 59 APPENDIX Frequency Table s Sex of Respondents Frequency Percent Valid Percent Cumulative Percent Valid Female 50 50.0 50.0 50.0 Male 50 50.0 50.0 100.0 Total 100 100.0 100.0 Age of Respondents Frequency Percent Valid Percent Cumulative Percent Valid 15-25 51 51.0 51.0 51.0 25-35 46 46.0 46.0 97.0 35-45 3 3.0 3.0 100.0 Total 100 100.0 100.0 Marital Status of Respondents Frequency Percent Valid Percent Cumulative Percent Valid Single 69 69.0 69.0 69.0 Married 31 31.0 31.0 100.0 Total 100 100.0 100.0 Occupation of Respondents Frequency Percent Valid Percent Cumulative Percent Valid Student 50 50.0 50.0 50.0 Banking 6 6.0 6.0 56.0 Teaching 3 3.0 3.0 59.0 Marketing 10 10.0 10.0 69.0 IT and Computer 9 9.0 9.0 78.0 Other 22 22.0 22.0 100.0 Total 100 100.0 100.0New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 60 Brand of Cosmetic Products Frequency Percent Valid Percent Cumulative Percent Valid HUL 39 39.0 39.0 39.0 Emami 8 8.0 8.0 47.0 Revlon 3 3.0 3.0 50.0 L'Oreal 11 11.0 11.0 61.0 Nivea 17 17.0 17.0 78.0 Garnier 20 20.0 20.0 98.0 Other 2 2.0 2.0 100.0 Total 100 100.0 100.0 Ad_Effect Frequency Percent Valid Percent Cumulative Percent Valid No 30 30.0 30.0 30.0 Yes 70 70.0 70.0 100.0 Total 100 100.0 100.0 Medium of Encountering Advertising Frequency Percent Valid Percent Cumulative Percent Valid None 30 30.0 30.0 30.0 T.V 48 48.0 48.0 78.0 Papers 8 8.0 8.0 86.0 Internet 14 14.0 14.0 100.0 Total 100 100.0 100.0New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 61 Place of Purchase Frequency Percent Valid Percent Cumulative Percent Valid Malls 33 33.0 33.0 33.0 Internet 9 9.0 9.0 42.0 Supermarket 42 42.0 42.0 84.0 Pharmacy 13 13.0 13.0 97.0 Local Shop 3 3.0 3.0 100.0 Total 100 100.0 100.0 Purpose of Adverts Frequency Percent Valid Percent Cumulative Percent Valid Inform of Product 58 58.0 58.6 58.6 Create perception 19 19.0 19.2 77.8 Create Preference 11 11.0 11.1 88.9 Create awareness 11 11.0 11.1 100.0 Total 99 99.0 100.0 Missing System 1 1.0 Total 100 100.0 Advertising Influence Frequency Percent Valid Percent Cumulative Percent Valid Strong 26 26.0 26.0 26.0 Moderate 55 55.0 55.0 81.0 Weak 19 19.0 19.0 100.0 Total 100 100.0 100.0 Brand of Product Frequency Percent Valid Percent Cumulative Percent Valid strong 63 63.0 63.0 63.0 Moderate 32 32.0 32.0 95.0 Weak 5 5.0 5.0 100.0 Total 100 100.0 100.0New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 62 Price Frequency Percent Valid Percent Cumulative Percent Valid Strong 50 50.0 50.0 50.0 Moderate 38 38.0 38.0 88.0 Weak 12 12.0 12.0 100.0 Total 100 100.0 100.0 Others_recommendation Frequency Percent Valid Percent Cumulative Percent Valid Strong 26 26.0 26.0 26.0 Moderate 52 52.0 52.0 78.0 Weak 22 22.0 22.0 100.0 Total 100 100.0 100.0 Quality of Product Frequency Percent Valid Percent Cumulative Percent Valid Strong 71 71.0 71.0 71.0 Moderate 28 28.0 28.0 99.0 Weak 1 1.0 1.0 100.0 Total 100 100.0 100.0 Prestige attached to Product Frequency Percent Valid Percent Cumulative Percent Valid Strong 22 22.0 22.0 22.0 Moderate 38 38.0 38.0 60.0 Weak 40 40.0 40.0 100.0 Total 100 100.0 100.0New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 63 Packaging of Product Frequency Percent Valid Percent Cumulative Percent Valid Strong 25 25.0 25.0 25.0 Moderate 43 43.0 43.0 68.0 Weak 32 32.0 32.0 100.0 Total 100 100.0 100.0 Being_Beautiful Frequency Percent Valid Percent Cumulative Percent Valid Strong 42 42.0 42.0 42.0 Moderate 44 44.0 44.0 86.0 Weak 14 14.0 14.0 100.0 Total 100 100.0 100.0 Attractive to the Opposite Sex Frequency Percent Valid Percent Cumulative Percent Valid Strong 9 9.0 9.0 9.0 Moderate 42 42.0 42.0 51.0 Weak 49 49.0 49.0 100.0 Total 100 100.0 100.0 Being Socially Acceptable Frequency Percent Valid Percent Cumulative Percent Valid Strong 39 39.0 39.0 39.0 Moderate 41 41.0 41.0 80.0 Weak 20 20.0 20.0 100.0 Total 100 100.0 100.0New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 64 Satisfied with the Product Frequency Percent Valid Percent Cumulative Percent Valid 0 11 11.0 11.0 11.0 Yes 89 89.0 89.0 100.0 Total 100 100.0 100.0 Cross Tabulations Age, Sex and Brand Cross tabulation Ad_Effect * Consumer’s Satisfaction of ProductCross tabulation Satisfied Total 0 Yes Ad_Effect No Count 2 28 30 % within Ad_Effect 6.7% 93.3% 100.0% % within Satisfied 18.2% 31.5% 30.0% % of Total 2.0% 28.0% 30.0% Yes Count 9 61 70 % within Ad_Effect 12.9% 87.1% 100.0% % within Satisfied 81.8% 68.5% 70.0% % of Total 9.0% 61.0% 70.0% Total Count 11 89 100 % within Ad_Effect 11.0% 89.0% 100.0% % within Satisfied 100.0% 100.0% 100.0% % of Total 11.0% 89.0% 100.0% Sex Age Male Female Total 15-25 years 25-35 years 35-45 years Total Total Surveyed 50 50 100 51 46 3 HUL 11% 28% 39% 22% 17% 39% Emami 7% 1% 8% 0% 8% 8% Revlon 1% 2% 3% 1% 2% 3% L’Oreal 3% 8% 11% 8% 2% 1% 11% Nivea 11% 6% 17% 8% 9% 17% Garnier 16% 4% 20% 11% 7% 2% 20% Oriflame 1% 1% 2% 1% 1% 2%New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 65 Ad_Effect * Brand_of_CosCrosstabulation Brand_of_Cos Total HUL Emami Revlon L'Oreal Nivea Garnier Other Ad_Effect No Count 10 2 1 5 6 5 1 30 % within Ad_Effect 33.3% 6.7% 3.3% 16.7% 20.0% 16.7% 3.3% 100.0% % within Brand_of_Cos 25.6% 25.0% 33.3% 45.5% 35.3% 25.0% 50.0% 30.0% % of Total 10.0% 2.0% 1.0% 5.0% 6.0% 5.0% 1.0% 30.0% Yes Count 29 6 2 6 11 15 1 70 % within Ad_Effect 41.4% 8.6% 2.9% 8.6% 15.7% 21.4% 1.4% 100.0% % within Brand_of_Cos 74.4% 75.0% 66.7% 54.5% 64.7% 75.0% 50.0% 70.0% % of Total 29.0% 6.0% 2.0% 6.0% 11.0% 15.0% 1.0% 70.0% Total Count 39 8 3 11 17 20 2 100 % within Ad_Effect 39.0% 8.0% 3.0% 11.0% 17.0% 20.0% 2.0% 100.0% % within Brand_of_Cos 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% % of Total 39.0% 8.0% 3.0% 11.0% 17.0% 20.0% 2.0% 100.0% Ad_Effect * Sex Crosstabulation Sex Total Female Male Ad_Effect No Count 15 15 30 % within Ad_Effect 50.0% 50.0% 100.0% % within Sex 30.0% 30.0% 30.0% % of Total 15.0% 15.0% 30.0% Yes Count 35 35 70 % within Ad_Effect 50.0% 50.0% 100.0% % within Sex 70.0% 70.0% 70.0% % of Total 35.0% 35.0% 70.0% Total Count 50 50 100 % within Ad_Effect 50.0% 50.0% 100.0% % within Sex 100.0% 100.0% 100.0% % of Total 50.0% 50.0% 100.0%New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 66 Dep. Variable Intercept (t value) Independent Variables R2 (Adj) F P Income (t value) ln_Income (t value) Da (t value) Db (t value) Dp (t value) Dr (t value) Exp 306.0627 (2.80) .0036 (1.38) 396.49 (3.37)* 0.13 (0.11) 7.26 0.00 Ln_Exp 4.5221 (7.19) .1267 (1.87) .7151 (3.84)* 0.16 (0.15) 9.62 0.00 Ln_Exp 4.5221 (7.95) .1267 (1.98)* .7151 (3.92)* 0.16 12.59 0.00 Exp 58.5737 (0.42) .0036 (1.67) 410.45 (4.48)* -154.31 (-1.55) 213.84 (1.81) 251.33 (2.49)* 0.19 7.40 0.00 Exp -592.24 (-1.58) 77.1233 (2.01)* 409.73 (4.97)* -118.13 (-1.06) 205.54 (1.80) 224.19 (2.16)* 0.20 7.43 0.00 Exp -592.24 (-1.58) 77.1233 (2.01)* 409.73 (4.97)* -118.13 (-1.06) 205.54 (1.80) 224.19 (2.16)* 0.20 7.43 0.00 ln_Exp 4.42 (6.48)* 0.1081 (1.66) .7490 (3.97)* -0.3577 (-1.45) 0.4305 (1.77) .2617 (1.60) 0.22 6.18 0.00 Regression Models Italicised indicates a robust regression, meant to correct heteroskedasticity *indicates statistically significant values INSTITUTE FOR SOCIAL AND ECONOMIC CHANGE, BANGALORE QUESTIONNAIRE FOR USERS OF COSMETIC PRODUCTS This research is to find out the effects of adverti sing on buying behaviour of consumers of cosmetic p roducts. All information provided would be confidential. Ple ase tick the box and write where appropriate. SECTION A : Biographical details 1. Gender Male Female 2. Age range 15-25 25- 35 35- 45 45- 55 55-a bove 3. Marital Status Single Married 4. Occupation Student Banking Teaching Mark eting IT and Computer Other……………. 5. What is your monthly income/ Pocket money Rs ……. ……………… SECTION B: 6. Which brand of cosmetics do you use among these? Lakme (Hindustan Unilever Ltd) Emami Revlon L’Oreal Nivea Garnier Other……………….. 7. Does advertising influence your purchase of the cosmetic product above? Yes No 8. If yes, which medium of advertising influences y our purchase of the above cosmetic product? Television Print (Newspapers, Magazines, Broch ures) Internet (Online)New Media and Mass Communication www.iiste.org ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol.27, 2014 67 9. Where do you most purchase the above cosmetic pr oduct brand? Malls Internet(online) Supermarket Pharmacy Local shops Other……………….. 10.What purpose do adverts on the cosmetic product serve you? Inform you of the features and benefits of the prod uct Create the desired perceptions of the product Create a preference for the product Create awareness of a new product 11. How much do you spend on the cosmetic products monthly? Rs. ………………………….. 12. Rankthefactors which most influence your purcha se ofthecosmetic products Strong Influence Moderate Influence Weak Influence Advertising Brand Price Recommendation from others Quality Prestige Packaging Other(……………….. 13. Why do you purchase the cosmetic products? Strong Reason Moderate Reason Weak Reason To look beautiful To be attracted to the opposite sex To be socially acceptable Other………………… 14. Are you satisfied using the product? Yes No. If Yes/No, Why …………………… .………………..…………………………………………………………. Please add your comments. … THANK YOU. 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