BRM PROJECT ON

" Physiological and Psychological Effect On The Consumer

Buying Behavior In Anti Acne Cosmetic Market "

Master of Business Administration – International Business

(MBA-IB)

(2021-2023)

SUBMITTED BY SUBMITTED TO

Ayush Shakya Dr. Arun Kumar Deshmukh

R. Mohini
Surya Prakash Dubey

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 TABLE OF CONTENTS

SERIAL NO. CONTENTS PAGE NUMBER

1 INTRODUCTION 7
2 LITERATURE REVIEW 10
3 RESEARCH METHODOLOGY 12
4 DATA TABULATION AND ANALYSIS 13
5 FINDINGS AND CONCLUSION 18
6 SUGGESTIONS 21
7 LIMITATIONS 22
8 REFERENCES 23
9 ANNEXURE 24

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 1. INTRODUCTION

Makeup is worn for "social and professional interaction," "emotional pleasure," "improved
physical appearance," "self-perception," and the creation of a "symmetrical face."
Consumers consume various products and services based on their requirements,
preferences, and purchasing power. They eat perishables, durables, specialty items, and
industrial goods. Consumers have a variety of options for obtaining the goods they require.

Cosmetics have been used for thousands of years, with evidence dating back to the
Egyptian, Greek, and Roman eras. The cosmetics industry has grown rapidly in recent
decades, owing to significant growth and hostile consumption in Asian, Eastern European,
and South American markets (Kumar, 2005).
Improvements in technology, science, society, economy, and education have given people a
better standard of living and lifestyle in the globalization era. The rapid growth of the beauty
care industry, especially in this decade, is influenced by the development of consumer
purchasing power and the market trend of people becoming more conscious of hygiene and
beauty. The global cosmetics market, particularly professional skin care, has grown stronger
as a result of rising customer demand, particularly for skin care brands, and the health
sector's development has accelerated in 2019.
The majority of people wish to be attractive, healthy, and attractive. It is a well-known fact
that most people aspire to look like models. A smooth and bright skin with an ideal body
shape for a wonderful life is the same for men and women.
Consumer behavior is defined as the actions that people take when they are looking for,
purchasing, using, evaluating, and discarding products and services that they believe will
meet their needs (Shiffman and Kanuk, 2010). Consumer behavior examines how people
decide how to spend their limited resources (time, money, and effort) on consumption-
related items. This includes what they buy, why they buy it, when they buy it, where they
buy it, how often they buy it, how often they use it, how they evaluate it afterward, and
how such evaluations affect future purchases.

Understanding consumer purchasing behavior is one of the keys to a company's

success.

About Anti Acne Cosmetics Market

Anti-acne cosmetics are those that aid in the reduction of acne on the skin. Skin care facial
cleansers, toners, face masks, moisturizer’s, emulsions, and other spot treatment products.
The manufacturing industry is dominated by a small number of multinational corporations
that date back to the early twentieth century, but cosmetics are distributed and sold by a
variety of companies.

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What Is Consumer Buying behavior?

Consumer Buying Behavior refers to the actions taken by customers before purchasing a
product or service (both online and offline). This may entail using search engines,
responding to social media posts, or taking a variety of other steps. Understanding this
process is beneficial to businesses because it allows them to better tailor their marketing
initiatives to previous marketing efforts that have successfully influenced consumers to buy.

Customer buying behavior is influenced by four factors:

1. Cultural Factors - A person's nationality does not always define their culture. It can be
defined by their affiliations, religious beliefs, or even their geographical location.
2. Social Factors - Aspects of a person's environment that influence how they perceive
products.
3. Personal Factors - These factors could include a person's age, marital status, financial
situation, personal beliefs, values, and morals.
4. Psychological Factors - When a person is approached with a product, their state of
mind often determines how they feel about the item as well as the brand as a whole.

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 Why Consumer buying behavior is Important?

Businesses can better market their products and services by understanding how buyers think,
feel, and make decisions. This aids in the marketing of existing products and services by
allowing marketers to predict how their customers will behave. It also enables forward-
thinking companies to spot new opportunities.

Analyzing demographics is one way that marketers examine consumer behavior. Age, income,
and education level are all statistics that can be used to predict behavior. For example, studies
show that Millennials respond best to word-of-mouth recommendations, so marketers know
that a traditional billboard campaign isn't a good strategy for that age group.

Marketers use a variety of research methods, such as surveys and interviews, to try to figure
out how often customers buy, where they shop, where they get their information, how they
share it with others, and so on. Consumer behavior research relies heavily on knowing what
questions to ask and how to ask them.

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 2. LITERATURE REVIEW

 Consumer behavior as an individual differs from that of a group, according to the

authors. A purchase decision made by a family differs significantly from a purchase
decision made by an individual. The authors discussed a number of factors that
influence a consumer's purchasing decision. The book focused on the family life cycle
and the various needs of consumers at various stages of life. The family decision-
making process is described as a group decision-making process, and it is suggested
that the market be segmented according to the hierarchy of family needs. Consumer
Behavior by Leslie Lazar and Schiffman

 This approach's essence is critical for organizational success, as it allows them to gain
a better understanding of their customers' behaviors (Solomon et al., 2006).
Marketers can track a consumer's physical actions or behavior, as well as their
purchasing decisions, on a daily basis (Papanastassiu and Rouhani, 2006).

 As a result, many businesses are devoting significant resources to understanding how

consumers make purchasing decisions, including what they buy, how much they spend,
when they buy, and where they buy (Kotler, Amstrong, 2001)

 Hawkins Best, Coney, and Mukherjee’s Consumer Behavior: The book's authors
discussed a variety of factors that influence consumer buying behavior, including
demographic and social influences (family and household), group influence,
advertising impact, and internal influences (learning, perception, attitude etc.).

 From a business standpoint, the reason why marketers choose to learn about
consumers' buying habits is to be able to reach out to them more effectively and
increase their chances of success (Sargeant & West, 2001).

 Consumer behavior has taken a huge leap forward in the commercial world, becoming
one of the most important concepts in achieving a company's goals (Schiffman and
Kanuk, 2007).

 According to various theories and researchers, organizations that fully meet all aspects
of their customers' needs increase their profitability (Chaudhuri, 2006), as well as
enable them to develop a better consumer-facing strategy (Asseal, 1998).

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 Consumer behavior, according to Michael R. Solomon (2001), examines the processes
of group or individual purchases/disposals of products, services, concepts, or
experiences to meet their needs and desires.

 Every year, according to Kotler (1996), consumer behavior has a huge impact on a
firm's marketing decision-making process. There's a chance that what a customer does
will have an impact on his or her behavior and result in negative consequences.

 In some cases, the user and the purchaser may be different people; in other cases, an
influencer may provide recommendations for or against certain products without
actually purchasing or using them (Solomon 1999; Solomon et al. 1999).

 Most large consumer electronics retailers tend to collect more data on customers'
motivating factors and what influences their purchasing decisions. Solomon and
Stuart (2000).

 According to Medeiros and Cruz (2006), three factors can influence a consumer's
purchasing behavior: cultural, personal, and social. These factors alter the consumer's
purchasing behavior, making him more demanding and knowledgeable about the
goods he wants to buy. Studying these factors allows us to gain a better understanding
of the type of consumer we're dealing with in terms of his financial capacity, manners,
and desires, among other things, making him more likely to believe in the quality of
services, client support, and the company as a whole in terms of fulfilling his wishes
and needs, thereby gaining his loyalty and increasing the organization's prestige and
esteem.

 According to Vilain and Pereira (2013), a person's social status and role play a
significant role in determining how a consumer purchases a product, as he may base
his interest in that product on information gleaned from social groups into which he
was inserted, he may want to acquire the same products, and so on, all in the hopes of
becoming more integrated into the social group.

 The global anti-acne cosmetics market size was valued at USD 3.47 billion in 2020 and
is expected to grow at a compound annual growth rate (CAGR) of 9.1% from 2021 to
2028 (Grand View Research, 2020). Acne vulgaris is a nearly universal skin disease
afflicting 79% to 95% of the adolescent population as in surveyed in the western
societies (P Bhadra – 2020).

 Acne can persist into adulthood, with detrimental effects on self-esteem. There is no
ideal treatment for acne, although a suitable regimen for reducing lesions can be
found for most patients. (HC Williams, RP Dellavalle, S Garner - The Lancet, 2012 –
Elsevier)

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 Acne patients are prone to suffer from depression, anxiety, lack of confidence, low self-esteem,
loneliness and poor quality of life. The emotional and mental association that an individual has
with his or her appearance can be attributed to the psychological effects which has increased
the usage of anti-acne cosmetics (Grand View Research, 2020)

 nearly 40% experience moderate-to-severe acne and nearly 50% continue to have acne in their
adulthood. Thus, high prevalence, especially in the young population, is anticipated to fuel
market growth (Article published by the Journal of The European Academy of Dermatology
and Venereology).

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 3. RESEARCH METHODOLOGY

The research design applied for the study is described as 'descriptive research'. This study
involves primary sources of data. The data has been collected through questionnaire and
the sample size for the study is 139. The data collected through questionnaire was analyzed
using pie charts, percentages, Likert scale and graphs.

3.1 OBJECTIVES
 To identify the factors influencing the consumer perception towards Anti Acne
cosmetics products.

 To study whether they get influenced by celebrity endorsement at the time of

purchasing cosmetics.

 To study the impact of advertisement of cosmetic product on an individual.

3.2 SOURCE OF DATA

Data plays a very pivotal role in any research; it provides information for analysis and
interpretation. For this research, for analysis part only primary data is used, however to
understand more the topic secondary data is also used.

3.3 TOOLS USED FOR DATA COLLECTION

To collect data for this analysis, a structured questionnaire was developed, which comprised all
the important questions related to the physiological and psychological factors affecting
consumer buying behavior. The questionnaire was then floated to people of different age
groups through different online channels.

3.4 SAMPLING
The selected sample batch is of different age groups to gain more in-depth insights about
consumer perception while choosing cosmetic products.

3.5 SAMPLE SIZE

For this research a sample of 139 individuals were taken.

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 1. DATA TABULATION AND ANALYSIS

1. Demographics Profile of the Respondents

Demographic profile is playing a very important role in understanding the Physiological and
psychological factors affecting the buying decision of consumer. The following pie chart
representation shows that the demographic profile of the respondents.

Analysis: From the pie chart we can see that 77.7% respondents are between 18 and 25
years of age and Individuals between 25 and 30 contribute to 18% of the total respondents.

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Analysis: Among the 139 respondents 64(46%) were male, 75(54%) were female and 0
individuals preferred not to say about their gender.

Analysis: Among the 139 respondents 61.9% had Master’s degree, 32.4% had Bachelor’s
Degree and individual with higher degree is 4.3% of the total respondents.

Analysis: Among the 139 respondents 66.2% were students, 17.3% were unemployed and
16.5% individuals were employed.

2. Purchase of Cosmetic Products

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 Analysis: Among the 139 respondents, 120(86.3%) voted they purchase cosmetic products
where 12(8.6%) voted they do not buy any cosmetic products.5% of the respondents voted
maybe, they were not sure about their buying’s.

Frequency and Timing of buying cosmetic products

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Analysis: Among the 139 respondents, 91 (65.5%) were the frequent buyers and 48(34.5%)
were not a frequent buyer. It has been seen that social factors majorly influence the
consumers purchase decision regarding cosmetic products. people tend to buy frequently
cosmetics when they have applied it once.

Reason for purchase

Analysis: Among the 139 respondents, the most preferred reason for purchase was “to
enhance personality” with 122(87.8%) responses followed by “Hide scars” with 65(46.8%)
responses. “To look younger” gained 55(39.6%) responses.

3. People’s perception about looks

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Analysis: Among the 139 respondents, 58 respondents have selected the highest parameter
that states most of the time looks do matters.

Online appearance

Analysis: Among 139 respondents, 89(64%) said yes appearance do matter while
interacting on an online platform where 45(32.4%) respondents had selected “may be”
because they were not certain about their appearances on online platforms. Out of 139
respondents 5 had selected “No” for them appearance does not matter that much while
interacting.

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Willingness to use skin care products

Analysis: Among 139 respondents, 110(79.1%) were not going to use skin care product if
they have any known allergies. From this data, we have found that maximum respondents
are aware about the chemicals used in skin care product which can harm them in case of
any allergy.

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Skin texture

Analysis: skin texture is important for most of the people in the survey out of 139 respondents
53(38.4%) had selected the highest parameter (5) on the scale of 1 to 5 followed by 30
responses with rating (4) it indicates texture of skin is somewhat important for majority of the
consumers. As the sample population includes mostly young people so it corroborates that for
young generation skin texture is an important aspect.

Psychological factor

Analysis: Out of 139 respondents, 88(63.3%) responded “yes” for them scars on face
matters a lot and 29(20.9%) had marked “maybe”. From this data, we have found that
maximum respondents are worried about scars on their faces.

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 Analysis: out of 139 respondents, 84(60.4%) responded “Maybe” they were not certain
about revival of someone’s lost confidence. 36(25.9%) had said “yes” it can revive
someone’s confidence and 19(13.7%) had responded “no” for them someone’s lost
confidence can’t be revived because it’s not the only factor. The maximum respondents
are not sure, whether the cosmetic treatment will boost confidence or not.

Analysis: 89(64%) respondents voted “no” complexion insecurity does not compel individual
to use cosmetic products.31(22.3%) respondents marked “yes” they believe Most people are
self-conscious about aspects of their appearance that they wish they could change, and it's
perfectly normal to have days when you don't like what you see in the mirror.19(13.7%)
respondents were not certain about their choices

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Analysis: 99(71.2%) respondents voted social media advertisement has a lasting impact
followed by TV ads with 34(24.5%) response. According to a study Consumers are influenced
by their friends' social media posts in 81 % of cases. (Forbes) After seeing social media
images from other consumers, 66% of consumers were inspired to purchase from a new
brand Consumers are 71 % more likely to make a purchase after hearing about it on social
media.

Attitude- 93 out of 139 respondents considered attitude as most important aspects of

personality.25 respondents considered attitude as somewhat influential.

Motivation- 71 respondents preferred Motivation as most important factor in anyone’s

personality whereas 31 respondents considered motivation to be somewhat influential.

Perceptions- 61 respondents considered Perception as most important factors in personality

whereas 36 respondents had a neutral opinion regarding perception.

Looks- 46 out of 139 respondents gave more preference to Looks whereas 38 respondents
considered Looks as somewhat influential in personality.

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Analysis: Among 139 respondents, 109(78.4%) believed that yes brands name, ads and
commercial directly or indirectly affect our buying decision. Followed 19(13.7%) responses
marked “Maybe” conclusion can be drawn yes brands name, ads and commercial affect our
buying decision it has a psychological impact like what we see, what we heard etc.

As per my sample, 78.4% of respondents think brand names, advertisements, and commercial
affect buying decisions whereas rest major population are not sure about it. This corroborates
those advertisements highly influence the buying decisions of consumers.

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 5. FINDINGS AND CONCLUSION

The main aim of this research project was to study the Physiological and Psychological effect
on consumer buying behavior in the cosmetic market. Several observations have been made
using the data collected through the survey questionnaire:

1. The major reason to purchase Anti Acne cosmetic products as per the survey is to
enhance the personality and to hide scars on face.

2. Looks are the most influencing factor among individual. People are concerned about
how they look virtually and physically.

3. People preferred cosmetics product even though they have some allergies.

4. More than half of the consumer considered skin texture as most important factor.

5. Social media advertisement has a lasting impact on individual perceptions to buy

cosmetic products (celebrity endorsement).

6. cosmetic treatment can somehow boost someone’s lost confidence but there are
some other factors too.

7. Attitude is the most important aspects in personality followed by motivation.

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 7. LIMITATIONS

• Sample size is small and the conclusion cannot be generalized.

• There are many factors which affect consumer buying behavior for cosmetics
products and all of them are not taken into account.

 There may be bias from the respondent’s end.

• The number of responses is more by the younger generation so the results may incline
towards one type of mindset.

• Not everyone has a clear knowledge about every physiological and psychological factor
and it was not possible to explain the respondents about the terminologies before
circulating the form.

• The survey form was circulated using only one medium, i.e., online and therefore wasn't
equally interactive for all user base.

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 8. REFERENCES

1. Marketing Management, by Philip Kotler (New Delhi: Prentice Hall of India, 2000).

2. Assael Henry is a character in the book Assael Henry (2006). Marketing Action and
Consumer Behavior (New York: Thomson Learning)

3. Rajan Saxena (2002). Prentice Hall of India (P) Ltd., New Delhi. Marketing Management.

4. Teixeira, J. C. I. (2010), Factors that influence consumer behavior, Cândido Mendes

University, Rio de Janeiro.
http://www.avm.edu.br/docpdf/monografias_publicadas/k212800.pdf

5. Medeiros, J. F., & Cruz, C. M. L. (2006), Consumer behavior: factors that influence the purchase
decision of consumers. Economic Theory and Evidence, 14(Special)

6. Leion G. Schiffman and Leslie Lazar Kanuk (1997). Prentice Hall of India (P) Ltd., New
Delhi. Consumer Behavior.

7. Anute. N. Deshmukh, A. Khandagale, A. Khandagale, A. Khandagale, A. Khandagale, A.

Khandagale, A. Khandagale, A. Khand 03(07), 33-34, International Journal of
Management and Social Science

8. A Literature Review on Acne Due to Hormonal Changes and Lifestyle Preetha Bhadra and
Atanu Deb-2020

9. Converting cork by-products to ecofriendly cork bioactive ingredients: Novel

pharmaceutical and cosmetics applications - C Carriço, HM Ribeiro, J Marto - Industrial Crops
and Products, 2018.

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 9. ANNEXURE

(Questionnaire used for survey)

Cosmetic market
Physiological and Psychological effect on consumer buying behavior in the Anti Acne cosmetic market

Name ………………………………

Gender: Male (), Female (), prefer not to say ()

Age: 18-25(), 25-30(), 30-35(), 35-40(), 40-45(), 45+ ()

Level of education: School education (), Bachelor's Degree (), Master's Degree (), Higher Degree ()

Employment Status: Unemployed (), Student (), Employed (), Retired ()

Do you purchase cosmetic products? Yes (), No (), Maybe ()

Are you a frequent buyer of Cosmetics Products? Yes (), No ()

Reason to purchase cosmetic products?

o To look younger
o To enhance personality
o Occupational requirement
o Hide scars to be socially acceptable

Rate how much do looks matter to you (1 being the least and 5 being the most)

Do you think your appearance matter while interacting on an online platform?

Yes (), No (), May be ()

Would you use a skin care product if you have any known allergies?
Yes (), No (), May be ()

How important is the texture of skin for you?

Do scars on your face bother you?

Yes (), No (), May be ()

According to you what kind of advertisement has a lasting impact on you in terms of Anti Acne
cosmetic products?
o T.V advertisement
o Print Media
o Social Media
o Radio Advertisement

Do you think, going for cosmetic treatment can boost someone’s lost confidence?
Yes (), No (), May be ()

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Does complexion insecurity compel you to use cosmetics products?
Yes (), No (), May be ()

What is the most important aspect of personality? (1 being the least important and 5 being the most
important)
 Attitude
 Motivation
 Perception
 Looks

Does celebrity endorsement influence you to buy any Anti Acne cosmetic products?
Yes (), No (), May be ()

Are you willing to pay more for a cosmetic product if it consists completely of natural ingredients?
Yes (), No (), I don't know ()

Do you think brand names, advertisements, and commercials affect your buying decisions?
Yes (), No (), May be ()

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