Impact of Brand Perception and Awareness On Consumer Buying Behavior

IMPACT OF BRAND PERCEPTION AND AWARENESS ON
CONSUMER BUYING BEHAVIOR
A project submitted to
University of Mumbai for partial completion of the degree
of Bachelor of Management Studies
Under the Faculty of Commerce
Submitted By
Ms. PAYAL KAMTE

ROLL NO.
3133
Under the Guidance of
PROF. NIRAV TAWADIA
PRAHLADRAI DALMIA LIONS

COLLEGE OF COMMERCE &
ECONOMICS
SUNDAR NAGAR, S.V.ROAD, MALAD
(WEST) MUMBAI 400 064
APRIL 2022
Prahladrai Dalmia Lions College of Commerce &

Economics Sunder Nagar, Malad (West), Mumbai, 400 064
ISO 9001:2015 Certified
CERTIFICATE
This is to certify that Ms. PAYAL KAMTE has worked and duly completed
her/his Project Work for the degree of Bachelor of Management Studies under
the Faculty of Commerce and her/his project is entitled, “IMPACT OF
BRAND PERCEPTION AND AWARENESS ON CONSUMER
BUYING BEHAVIOR ” under my supervision. I further certify that the entire
work has been done by the learner under the guidance and that no part of it has
been submitted previously for any Degree or Diploma of any University.
It is her own work and facts reported by her/ his personal finding and
investigations.
PROF. NIRAV TAWADIA
Date of Submission: APRIL 2022

DECLARATION
I the undersigned PAYAL KAMTE here by, declare that the work embodied
in this project work titled “IMPACT OF BRAND PERCEPTION AND
AWARENESS ON CONSUMER BUYING BEHAVIOR ”, forms my
own contribution to the research work carried out under the guidance of
PROF. NIRAV TAWADIA is a result of my own research work and his/her
not been previously submitted to my other University for any other
Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.
I, hereby further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.
(Ms. PAYAL KAMTE)
Certified by
PROF. NIRAV TAWADIA

ACKNOWLEDGEMENT
To list who all helped me is difficult because they are so numerous and the depth is
so enormous.
I would like to acknowledge the following as being idealistic channels and

fresh dimension and completion of the project.
I take this opportunity to thank the University of Mumbai for giving me the
chance to do this project.
I would like to thank my I/C Principal, Dr. Kiran Mane and our Vice-
Principal - SFC, Prof. Subhashini Naikar for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our Co-ordinator Prof CA Durgesh Kenkre and
Our Guide Prof. Nirav Tawadia for his moral support and guidance.
I would like to thank my college library for having provided various reference
books and magazines related to my project.
Lastly I would like to thank each and every person who directly or indirectly
helped me in the completion of the project, especially my Parents and my
peers who supported me throughout my project.
Ms. PAYAL KAMTE

PRAHLADRAI DALMIA LIONS COLLEGE OF COMMERCE AND ECONOMICS
PAPER PRESENTATION CERTIFICATE
IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 1

INDEX
CHAPTER NO. TOPICS PAGE NO.
1 INTRODUCTION 3-40
2 RESEARCH AND 41-60
METHODOLOGY
3 LITERATURE REVIEW 61-68
4 DATA ANALYSIS AND 69-88
INTERPRETATION
5 CONCLUSION & RECOMMENDATIONS 89-94
BIBLOGRAPHY & WEBLOGRAPHY 95
ANNEXURE 96

IMPACT OF BRAND PERCEPTION AND

AWARENESS ON CONSUMER BUYING BEHAVIOR
CHAPTER 1
INTRODUCTION
MEANING OF BRAND
The term brand refers to a business and marketing concept that helps people
identify a particular company, product, or individual. They provide enormous
value to the company or individual, giving them a competitive edge over others
in the same industry. Brands are intangible, which means you can't actually
touch or see them. This is especially true when companies need to set
themselves apart from others who provide similar products on the market,
including generic brands. A brand is an intangible asset that helps people
identify a specific company and its products. As such, they help shape people's
perceptions of companies, their products, or individuals. Brands commonly use
identifying markers to help create brand identities within the marketplace. As
such, many entities seek legal protection for their brands by obtaining
trademarks.
History of Brands
Brands have long been used to set products apart over the course of history. The
idea of branding may go as far back as 2000 B.C., where merchants used it to
sell their wares in different markets. At that time, it was commonly used as a
technique to denote ownership of a product or a piece of property. Branding has
been used throughout the ages. The oldest known generic brand still used today
is an herbal paste from India called Chyawanprash. In the 13th century, Italians
began putting watermarks on their paper as a form of branding. The term brand
also refers to the unique marks burned into the hides of cattle to distinguish the
animals of one owner from those of another.
What is Branding ?
Branding is the process of creating a strong, positive perception of a company,

its products or services in the customer’s mind by combining such elements as
logo, design, mission statement, and a consistent theme throughout all
marketing communications. These include consistent imagery and logos. Of
course certain elements of branding are consistent with both online and in store.
Branding in store is more experiential as people can walk around and pick
things up, whereas customers online are experiencing a two-dimensional scene.
Effective branding helps companies differentiate themselves from their
competitors and build a loyal customer base. Branding in store can be very
different to online branding as in store you have to worry about positioning of
products and props that can effect how a customer experiences your
brand.Branding Branding is the process of creating a strong, positive perception
of a company, its products or services in the customer’s mind by combining
such elements as logo, design, mission statement, and a consistent theme
throughout all marketing communications.
WHY DO WE NEED TO DO BRANDING? (IMPORTANCE OF

BRANDING)
A business’s branding is more important than you might think. On the outside,
your brand may seem like it consists only of elements such as logos and colors,
but your brand is actually the entire identity of your business. Your brand gives
you personality.
Branding has always been a vital part of business, but it may be more important
now than ever before. With social media, consumers get exposed to new brands
every day. This can be great for consumers who have plenty of options and are

able to do research to find the best one, but it makes it harder for businesses.
There’s a huge amount of competition today, so businesses need to go the extra
mile of ensuring they stand out in a crowd. To do this, you should invest in
creating a strong brand that will get and keep people’s attention. With the right
branding, you have the chance to get some control over how people perceive
your business, so you don’t want to overlook this.
➢ More People Will Recognize Your Business
One of the most obvious reasons that businesses need branding is to help them
get recognized more often. If you have strong branding for your business,
people will naturally take note of it much more than they would a business
without it. A business that doesn’t really have any cohesive branding isn’t going
to stay in someone’s mind for very long.
However, a business with elements such as a distinct logo, attractive colors and
other visual elements will be much more memorable. Someone might see your
brand for only a moment, but if it sticks out in a positive way, there’s a good
chance they won’t forget it, even if this person isn’t ready to use your products
or services just yet. Eventually, when they’re ready to take the next steps, if
your branding has stuck with them, they’ll come back to you.
➢ Branding Can Help Build Trust
Trust from your audience is one of the most important things you can have as a
business, but this isn’t always easy to gain. A business that’s missing key
elements of branding will have an even harder time getting people to trust them.
Branding is something many of us expect to see when we look at businesses in
any industry, and missing this could be a red flag to some. Without branding,
you have very little to show for your business.
If you had to choose between a business with clear, professional-looking
branding and a business that hasn’t made this effort, you probably know which
one you’d trust more. Branding helps you show potential customers that you’re
an established, credible business. You can use this to tell people very early on

what they can expect from your business. This is an investment your business is
making to improve itself, and potential customers will recognize that you put in
the work to create your brand.
➢ You Can Improve Your Advertising
Your business won’t be able to get very far without advertising. Branding and
advertising go hand in hand. If you want to have better advertising for your
business, you’re going to need to work on creating a brand first. When you’re
advertising your business, you want everything to be cohesive and represent
your business’s identity and values. This can be a challenge when you haven’t
taken the time to form your brand. If you’re advertising without solid branding,
you’re missing out on a lot of great opportunities to create an effective
campaign. Incorporating branding into your advertising will help increase
recognition of your brand when it’s all tied together.
➢ It’s Great for Your Employees
Branding provides value inside of your company as well. Of course, you want
your employees to love working for your company and feel like they’re a part of
a team. A company with great branding will have an easier time getting
employees to feel like they’re involved with something more than just a job. In
addition to branding that can help draw in new customers, you also want to
invest in the aspects of branding that keep your team motivated. This includes
little things like branded apparel and merchandise, but also the look of your
entire office space. If you can motivate your employees by creating a sense of
unity through branding, you could end up seeing great results all around.
➢ Branding Creates Loyal Customers
You don’t just want customers who recognize your brand and use your business
once — you want to create customers who continue to come back. With good
branding, you can give your brand a more human side, which your customers
can relate to more than a company that’s strictly all business. In many ways,
you can appeal to people’s emotions through branding and make them feel more

connected to your company. Branding allows you to build relationships with

your audience, which can eventually turn them into loyal customers. You can
create a brand that people actually care about and put yourself ahead of
businesses that aren’t using this to their advantage.
Meaning of Brand Perception
Customers, not companies, own brand perception. Brand perception is what

customers believe a product or service represents, not what the company
owning the brand says it does. Brand perception comes from customer use,
experience, functionality, reputation and word of mouth recommendation - on
social media channels as well as face to face.
When a brand delivers, or exceeds customer expectations, it has the potential to

establish a whole lifetime of loyal brand equity .Until target customers have
experienced your product, believed your brand promise and developed a
sufficiently positive perception to buy (and rebuy) it, your brand will not grow.
Brand perception as a sensory experience - A brand is more than just the sum
of its products. It has its own, carefully-crafted personality that represents its
parent company’s vision, mission or culture. So it’s not surprising that the brand
as a personality jibes with customers on a personal level – a mental impression,
or perception. A customer mentally processes sensory messages from a brand to
create their own perception, and marketers take full advantage by exposing it to
all our senses:
Visual: Instantly-recognisable logos (Nykaa, Purplle, BMW, Nestle, Cadbury,

PG Tips) and high budget, entertaining commercials.

Auditory: Catchy musical jingles (Intel) or catchphrases (the cheesier and more
annoying the better) that make their way into popular culture (eg ‘Give Me a
Break!’, Kit Kat).
Visible : Our sense of smell has a remarkable ability to trigger memories and
emotions. Smell marketing is as simple as a café wafting the scent of frying
bacon out into the street, or as complex as airlines’ use of patented scents in
their cabins and hot towels and on their crew to enhance their brand experience.
Taste: Free samples or special offers to taste new products.
Emotional: Heartstring-tugging Christmas TV ads (John Lewis, Marks and
Spencer, Sainsbury’s)
Meaning of Brand Awareness:
Brand awareness is a marketing term that describes the degree of consumer

recognition of a product by its name. Creating brand awareness is a key step in
promoting a new product or reviving an older brand. Ideally, awareness of the
brand may include the qualities that distinguish the product from its
competition. Products and services that maintain a high level of brand
awareness are likely to generate more sales. Consumers confronted with choices
are simply more likely to buy a name brand product than an unfamiliar one.
Consider the soft drink industry. Removed from their packaging, many soft
drinks are indistinguishable. The giants in the industry, Coca-Cola and Pepsi,
rely on brand awareness to make their brands the ones consumers reach for.
Over the years, these companies have employed advertising and marketing
strategies that have increased brand awareness among consumers, and that has
directly translated into higher sales. This higher rate of brand awareness for
dominant brands in a category can serve as an economic moat that prevents
competitors from gaining additional market share.

Brand Awareness vs Perception:

There are two big questions:
1. Have consumers heard of our brand?
2. What do consumers think about our brand?
Finding definitive answers to these questions will offer key insights when
looking to attract new customers, keep existing customers happy, and build or
maintain a positive brand image. While these questions and objectives tend to
go hand-in-hand, they should be distinctly different in terms of their research
strategies.
➢ To determine whether or not consumers have heard of your brand,

conduct a Brand Awareness Study.
➢ To understand what consumers think about your brand, conduct a Brand
Perception Study.
Brand Loyalty:
It refers to repeated purchase of a particular product or brand by the consumer.

It shows positive attitude of consumer towards a particular product. There are
some positive factors which contribute to brand loyalty and some negative
factors which contribute against the brand loyalty. The positive factors are:
1. Actual performance of the product
2. Social and emotional factors
3. Habit of the consumer
The negative factors which work against the brand loyalty are:
1. Market Forces
2. Customer Factors

The positive factors include product performance, social and emotional image,
created by the product and consumer buying habits. When the product performs
well and it satisfies the customer, he becomes loyal to a particular product.
Another positive factor is the social and emotional image, created by the
product. Social image refers to the type of personality; you want to be looked
as. A customer may feel more attached to a particular brand or product due to
psychological attachment and he becomes brand loyal.
The third factor which creates positive effect is the customer habit.Thus, brand
loyalty is the result of above three positive factors namely, product actual
performance, social and emotional image and consumer buying habit.
There are some negative factors which act against the brand loyalty. These
factors can be classified into market factors and customer factors. The market
factors include:
1. Other substitute products or brands
2. Promotional measures of other competitors.
Substitute products and their characteristics influence the choice of consumer
towards a particular product. When two substitutes are similar in terms of
quality and features, then customer will take into account the performance of
the product and other social and emotional images of the product. In such a
situation, the promotional measures, taken by the organisation play an important
role in influencing customer towards a particular product.
Brand Equity and Brand Loyalty:
The concepts, brand equity and brand loyalty are closely related and
interdependent. Brand equity refers to the value, a customer gives to a particular
brand. It is the amount of money which a customer is willing to pay. Higher the
amount, higher will be the brand equity. Brand equity is based on the following
dimensions:

1. Performance of the product

2. Social image, it creates
3. Value of the product compared to cost
4. Trustworthiness of the product
5. Identification or attachment to the product.
Brand loyalty is the consistent buying of the product. Higher the brand equity,
higher will be the brand loyalty and vice-versa. When there is higher brand
loyalty, a customer is willing to pay higher price.
Brand Identity:
It refers to the identity, the brand provides to its users. It is like brand
association, a product creates with customer. It leads to brand image. Brand
identity is based on the basic essence of a product or a brand it tries to match
customer needs, choice, liking, desire with the product and its attributes. Brand
identity can be explained in terms of:
Brand identity as a product relates to products features, quality and uses and
users. It helps in the marketing the products in the target group of the customers.
Brand as an organization is directly related to the name of the organization.
Many organizations prefer to name their product on the basis of organization. It
helps in marketing and advertisement of the product. For example, Tata sells
variety of its products with its name and product name together like Tata tea,

Tata cloth, Tata finance, Tata housing, etc. Most family brand products have
organization name as brands.
Brands can also be linked to human personality and is based on the products
which are intended to be focused as that of the personality or character.
Personality adds higher value to a brand as well.
Brand Challenges:
A brand faces various challenges due to changing market environment and other
factors like, political, social, etc. These challenges are:
1. Qualitative Aspect of the Product
2. Changing Consumer Needs and Preferences
3. Technological Advances
4. Rising Trend of Private Labels
5. Brands, becoming Generic
6. Lack of Effective Communication
7. Keeping Brand Young
These challenges can be overcome through various marketing promotion
measures such as:
1. Advertising and Publicity 2
. Exhibition
3. Events and Sponsorship
4. Promotion
5. Merchandising and visual Merchandising
Brand challenges can also be solved through:
1. Rebranding
2. Repositioning
3. Revitalizing
4. Reinforcing

In the case of re-branding, the company changes the name of the product,
symbol and design with the objective of creating a new image of the product in
the market. In case of repositioning, the company re-defines the placement of
the product in the market. It is to adjust to the change in the market environment
like, change in economic conditions, change in consumer preferences, changes
in market competition and changes in technology. It may be introduced by
changing the existing market. In case of revitalizing the product which is
declining or failed to maintain the brand positioning is revitalized. It means, the
brand strategy is changed. It includes market segmentation, targeting and
positioning. It also includes the planning of all marketing mix i.e., product,
price, place, promotion, etc. In the case of re-enforcing, the company
continuously undertake on brand awareness, brand image, brand benefits. This
is done to protect the brand from newly entered brands.
UNDERSTANDING CONSUMER BUYING BEHAVIOUR
The consumer buying behaviour or consumer decision process also called the
buyer decision process, helps markets identify how consumers complete the
journey from knowing about a product to making the purchase decision.
Understanding the buyer buying process is essential for marketing and sales.
The consumer or buyer decision process will enable them to set a marketing
plan that convinces them to purchase the product or service for fulfilling the
buyer’s or consumer’s problem.
The consumer decision process, also called the buyer decision process, helps
markets identify how consumers complete the journey from knowing about a
product to making the purchase decision. Understanding the buyer buying
process is essential for marketing and sales. The consumer or buyer decision
process will enable them to set a marketing plan that convinces them to
purchase the product or service for fulfilling the buyer’s or consumer’s problem.

● Consumers go through 5 stages in deciding to purchase any goods or

services.
● 5 Stages of the consumer decision process (buyer decision process)

are;
1. Problem Recognition or Need Recognition.
2. Information Search.
3. Evaluation of Alternatives.
4. Purchase Decision.
5. Post-Purchase Evaluation.
1. Problem Recognition or Need Recognition.

The first step of the buyer decision process is the need recognition stage. Here
the consumer recognizes a need or problem and feels a difference between the
actual state and some desired state. They try to find goods to satisfy such needs.
2. Information Search.
This leads to the second stage of searching for information about the product.
The consumer tries the find out as much as possible about the product’s
available brands. The consumer may have heightened attention or may
undertake an active search for information. The amount of searching a
consumer will depend on the strength of his drive, the amount of information he
starts with, the ease of obtaining more information, the value he places on
additional information, and the satisfaction he gets from searching.
3. Evaluation of Alternatives.

At the Third stage, the consumer uses the information to evaluate alternative
brands. While evaluating goods and services, different consumers use different
bases.Generally, the buyer evaluates the alternatives based on the product’s
attributes, the degree of importance, belief in the brand, satisfaction, etc. to
choose correctly.
4. Purchase Decision.
After that, the buyer makes the purchase decision at the fourth stage by
selecting the most suitable product. At this stage of the buyer decision process,
the consumer buys the product. After the alternatives have been evaluated,
consumers decide to purchase products and services. They decide to buy the
best brand. But their decision is influenced by others’ attitudes and situational
factors.

5. Post-Purchase Evaluation.
The fifth stage is the post-purchase evaluation, and it is the most important one.
Depending on the level of satisfaction or dissatisfaction, the consumer will
become a loyal customer or actively avoid the brand and tells others to do so via
online reviews and word of mouth.
CONSUMER PERCEPTION
Consumers deploy various variables to perceive the quality of a product. These

quality rests in the eyes of the consumers who are perceiving these qualities.
Products that seem of higher quality to one consumer may seem subservient to
another. Perception plays a vital role in mind of the consumer. Business
environment around us is filled with countless stimuli attempting to attract our
attention. Our perception quality depends on the way we process and evaluate
the stimuli or the information that reaches our senses. The process through
which one selects, processes, and interprets information received to create a
purposeful picture of the world is called perception (Kotler, 1997). Consumer
perception can be formally defined as a marketing theory that incorporates a
customer’s thoughts, product knowledge and consciousness about a company or
products/services it offers (Korengkeng and Tielung, 2018).

Customer perception definition: “Marketing concept that encompasses a

customer’s impression, awareness, or consciousness about a company or its
offerings.”
Customer collects information about a product and interprets the information to
make a meaningful image about a particular product. This is called customer
perception. When a customer sees advertisements, promotions, customer
reviews, social media feedback, etc. relating to a product, they develop an
impression about the product.
The entire process of customer perception starts when a consumer sees or gets
information about a particular product. This process continues until the
consumer starts to build an opinion about the product.
Everything that a company does affects customer perception. The way the
products are positioned in a retail store, the colors, and shapes in your logo, the
advertisements that you create, the discounts that you offer, everything impacts
the customer perception.
Why is Customer Perception Important?
A happy customer is one who is satisfied with the experience that he has with a
product or a service. The customer perception is built around the experience that
a customer has with a product.
Consumer perception can make or break your brand. When customers had a
pleasant experience of getting their products delivered on time they form a
perception. Getting the products that were as described in the product
description also creates a positive customer perception. When customers
experience a great after-sale service it is going to develop a positive opinion
about the brand.
But when customers had a bad experience such as broken products, no returns,
no after-sales service, etc. the customers build a negative perception about the
brand.

When companies work towards strengthening the bond between customers and
the company, customer perception improves, and this gives way for a better
competitive edge.
Customer perception is also important to determine the kind of image a brand
wants to build.
Factors Influencing Customer Perception
Customer perception can be influenced by external factors, some of which are

listed below:
1. Personal experience - Customer perception is highly influenced by the

personal experience that a customer had while buying and using a particular
product. If the quality, customer service, price, logo, color, discounts, etc. were
able to make an excellent impression on the minds of the customers, they would
build a good perception of the brand. But in case they did not enjoy the
experience with the brand, it will leave an everlasting impression.
2. Advertising - Customers get to see the products first through
advertisements and therefore become one of the biggest factors that influence
customer perception. The advertising and campaigns that a company runs will
help to build a positive customer perception.
3. Influencers - People generally buy things when another person has tried
and tested it. Such people who have bought it first and tried the product become
influencers. When people hear about the great product that the influencer has
tried out, it will influence the person to buy it and test it out, as the
recommendation has come from a known person whom they trust.
4. Customer reviews - Many people look into the customer reviews before
buying a product. This shows that customer reviews are an important factor in
defining customer perception. If the consumers see that a product has a lower

number of stars it means that product does not have good customer reviews. The
impression that it creates on the consumer’s mind is negative.
5. Social Media - Social media has become the strongest medium to manage
customer perception. When social media audience gets consistent
communication regarding a product, the users build an image of the product.
Social media can be used to post content, images, videos, etc. which helps to
build the kind of perception intended by the company.
CONSUMER BUYING BEHAVIOUR RELATED TO COSMETIC

PRODUCTS
Consumer buying behaviour is a decision-making process and mentality of a

person in purchasing and consuming the products. Once the consumer identifies
his/her wants and needs, the consumer starts to search for the products or
services to fulfill their required desires.
According to past studies, consumers make their decisions based on the quality,
quantity, packaging, price, brand, and price aspects while choosing cosmetics.
It is a decision-making process which is influenced by many factors. In the
analysis of Consumer buying behavior, it is assumed that consumers take
rational decisions by considering various factors.
Different factors such as
1. Cultural factors
2. Social factors
3. Economic factors
4. Psychological factors
5. Personal factors
1. Psychological Factors
Human psychology is a major determinant of consumer behavior. These factors

are difficult to measure but are powerful enough to influence a buying decision.

Some of the important psychological factors are:
i. Motivation
When a person is motivated enough, it influences the buying behaviour of the

person. A person has many needs such as the social needs, basic needs, security
needs, esteem needs and self-actualization needs. Out of all these needs, the
basic needs and security needs take a position above all other needs. Hence
basic needs and security needs have the power to motivate a consumer to buy
products and services.
ii. Perception
Consumer perception is a major factor that influences consumer behavior.
Customer perception is a process where a customer collects information about a
product and interprets the information to make a meaningful image about a
particular product.
When a customer sees advertisements, promotions, customer reviews, social
media feedback, etc. relating to a product, they develop an impression about the

product. Hence consumer perception becomes a great influence on the buying

decision of consumers.
iii. Learning
When a person buys a product, he/she gets to learn something more about the
product. Learning comes over a period of time through experience. A
consumer’s learning depends on skills and knowledge. While a skill can be
gained through practice, knowledge can be acquired only through experience.
Learning can be either conditional or cognitive. In conditional learning the
consumer is exposed to a situation repeatedly, thereby making a consumer
develop a response towards it. Whereas in cognitive learning, the consumer will
apply his knowledge and skills to find satisfaction and a solution from the
product that he buys.
iv. Attitudes and Beliefs
Consumers have certain attitude and beliefs which influence the buying
decisions of a consumer. Based on this attitude, the consumer behaves in a
particular way towards a product. This attitude plays a significant role in
defining the brand image of a product. Hence, the marketers try hard to
understand the attitude of a consumer to design their marketing campaigns.
2. Social Factors
Humans are social beings and they live around many people who influence their
buying behavior. Human try to imitate other humans and also wish to be
socially accepted in the society. Hence their buying behavior is influenced by
other people around them. These factors are considered as social factors. Some
of the social factors are:
i. Family

Family plays a significant role in shaping the buying behavior of a person. A

person develops preferences from his childhood by watching family buy
products and continues to buy the same products even when they grow up.
ii. Reference Groups
Reference group is a group of people with whom a person associates himself.

Generally, all the people in the reference group have common buying behavior
and influence each other.
iii. Roles and status
A person is influenced by the role that he holds in the society. If a person is in a

high position, his buying behavior will be influenced largely by his status. A
person who is a Chief Executive Officer in a company will buy according to his
status while a staff or an employee of the same company will have different
buying pattern.
3. Cultural factors
A group of people are associated with a set of values and ideologies that belong
to a particular community. When a person comes from a particular community,
his/her behavior is highly influenced by the culture relating to that particular
community. Some of the cultural factors are:
i. Culture
Cultural Factors have strong influence on consumer buyer behavior. Cultural

Factors include the basic values, needs, wants, preferences, perceptions, and
behaviors that are observed and learned by a consumer from their near family
members and other important people around them.
ii. Subculture

Within a cultural group, there exists many subcultures. These subcultural groups
share the same set of beliefs and values. Subcultures can consist of people from
different religion, caste, geographies and nationalities. These subcultures by
themselves form a customer segment.
iii. Social Class
Each and every society across the globe has form of social class. The social
class is not just determined by the income, but also other factors such as the
occupation, family background, education and residence location. Social class is
important to predict consumer behavior.
4. Personal Factors
Factors that are personal to the consumers influence their buying behavior.
These personal factors differ from person to person, thereby producing different
perceptions and consumer behavior.
Some of the personal factors are:
i. Age
Age is a major factor that influences buying behavior. The buying choices of
youth differ from that of middle-aged people. Elderly people have a totally
different buying behavior. Teenagers will be more interested in buying colorful
clothes and beauty products. Middle-aged are focused on houses, property and
vehicles for the family.
ii. Income
Income has the ability to influence the buying behavior of a person. Higher
income gives higher purchasing power to consumers. When a consumer has
higher disposable income, it gives more opportunity for the consumer to spend
on luxurious products. Whereas low-income or middle-income group

consumers spend most of their income on basic needs such as groceries and
clothes.
iii. Occupation
Occupation of a consumer influences the buying behavior. A person tends to

buy things that are appropriate to this/her profession. For example, a doctor
would buy clothes according to this profession while a professor will have
different buying pattern.
iv. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The
buying behavior is highly influenced by the lifestyle of a consumer. For
example when a consumer leads a healthy lifestyle, then the products he buys
will relate to healthy alternatives to junk food.
5. Economic Factors
The consumer buying habits and decisions greatly depend on the economic
situation of a country or a market. When a nation is prosperous, the economy is
strong, which leads to the greater money supply in the market and higher
purchasing power for consumers. When consumers experience a positive
economic environment, they are more confident to spend on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by
unemployment and lower purchasing power.
Economic factors bear a significant influence on the buying decision of a
consumer. Some of the important economic factors are:
i. Personal Income
When a person has a higher disposable income, the purchasing power increases
simultaneously. Disposable income refers to the money that is left after
spending towards the basic needs of a person.

When there is an increase in disposable income, it leads to higher expenditure

on various items. But when the disposable income reduces, parallelly the
spending on multiple items also reduced.
ii. Family Income
Family income is the total income from all the members of a family. When
more people are earning in the family, there is more income available for
shopping basic needs and luxuries. Higher family income influences the people
in the family to buy more. When there is a surplus income available for the
family, the tendency is to buy more luxury items which otherwise a person
might not have been able to buy.
iii. Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes higher

spending. Sellers are making it easy for the consumers to avail credit in the
form of credit cards, easy installments, bank loans, hire purchase, and many
such other credit options. When there is higher credit available to consumers,
the purchase of comfort and luxury items increases.
iv. Liquid Assets
Consumers who have liquid assets tend to spend more on comfort and luxuries.
Liquid assets are those assets, which can be converted into cash very easily.
Cash in hand, bank savings and securities are some examples of liquid assets.
When a consumer has higher liquid assets, it gives him more confidence to buy
luxury goods.
v. Savings
A consumer is highly influenced by the amount of savings he/she wishes to set

aside from his income. If a consumer decides to save more, then his expenditure

on buying reduces. Whereas if a consumer is interested in saving more, then

most of his income will go towards buying products.
Maslow has given another explanation in terms of Maslow’s theory of

motivation or need hierarchy. This can be seen from the following figure:
Maslow’s has classified human needs into five categories. These are:
1. Physiological needs

2. Safety needs
3. Social needs
4. Esteem needs
5. Self-Actualization needs
These needs are arranged in order from lower level needs to higher level needs.
Physiological needs are the basic needs which must be satisfied first. The
physiological include basic needs like food, clothing and shelter. A hungry
person thinks of food only. Once basic needs are satisfied, it gives rise to safety
needs i.e., security and to protect from danger, unemployment and other
problem of society. Poor people spend much of their time in satisfying the
physiological and safety needs. Once these needs are satisfied, it gives rise to
social needs i.e., love, attraction, and respect in the society. It is higher level
needs than the basic needs. Once social needs are satisfied, it gives rise to
esteem needs. It includes recognition by the society, rewards, status.
It gives rise to self-actualization needs. It includes self-development, own
personality and attaining to the maximum potential of an individual. Thus, the
needs are arranged from lower level to higher level needs. Therefore, marketers
should understand the needs level of the consumer so, that they can effectively
market their product to difficult levels of needs hierarchy. For example, a
company selling higher and luxury car must focus on the higher level needs of
consumers who wish to satisfy their esteem needs and self-actualization needs.
Such a luxury product cannot be directed to lower level needs or basic and
safety needs. However, an important point to be noted here is that a satisfied
need is not a motivator of behavior. For example, a person has high end luxury
cars and therefore, he will not be motivated by the same product.
Thus, marketers must find out the unsatisfied needs of the consumer and
provide or direct their marketing efforts towards satisfaction of these needs.
Herzberg has given to factor theory i.e., dissatisfiers and satisfiers. Dissatisfied
factors are those factors that cause dissatisfaction and satisfiers are those factors

that create satisfaction. He was more interested in motivation in the organization

which can lead to higher productivity. Thus, there are different explanations of
the psychological factors Maslow’s theory can be more useful in marketing and
advertising as marketers can focus their marketing strategies, depending on the
need level of their customers or the products
MARKET EMERGING PANORMA
Indian economy has witnessed dramatic changes in the last two decades. Till the
year 1980, the Indian market was small limited and largely regulated by the
government by way of licensing. The market in India was operated by large
number of Indian companies and few subsidiaries of some Multinational
Companies (MNCs). The market was controlled by few players or a sort of
monopoly and duopoly. Managing any product and its marketing was mostly
confined to production planning and distribution and logistics planning. There
was limited market competition and marketing was mainly done by intuition or
gut feeling. The market was mainly sellers’ market and hence, marketing of
products was not difficult. The size of the market was also small due to low per
capita income and low purchasing power.
In the mid-eighties, the Indian market witnessed some competition when

government allowed automatic capacity expansion and entry of some new
players in the market. This allowed some choice to Indian consumers and Indian
companies started formulating some strategies termed as, ‘Selling Approach’.
For example, the Indian car market which was earlier dominated by few players,
witnessed some competition with the entry of ‘Maruti Udhyog Limited’. Thus,
the Indian market which was protected market experienced some taste of
competition. Consequently, marketers in India, adopted various systematic

approaches collectively and which can be termed as, ‘Marketing Strategies’,

instead of relying on intuition and gut feeling. The year 1991, it brought further
waves of liberalization and privatization in India. It ushered a new era in India
marketing approach. The reforms resulted in many charges in the Indian
economy such as, control to decontrol, licensing to de-licensing, public sector to
privatization, etc. This created a situation of free market economy and greater
market competition. Consumers soon, found variety of products, flooded in the
market and choice in terms of quality and price.
Consumer India:
The following pages highlight the features of consumer India. This can be seen
as below:
Demographics:
One of the important factor in India is the size of population in the year 2011
India population was 1210 million, an increase of 181 million between 2001 &
2011. This has further gone to about 1250 million in 2013. UP is the largest
populated in India with 16.5% of the total population. India has high density of
population. It is 385 persons per square kilometer in 2011. The gender ration is
940 females per 1000 males. The average literacy rate is 7 6 percent. As a result
of rapid rise in population India will be overtaking china by the year 2030 as the
most populous nation in the world. India also enjoys the most favorable age
composition. It has highest population in the age group 20-59 years & lowest.
Population in the age group above 60 years. The age composition shows that
India will be a nation of youth. The dependency ratio in India is declining. This
can be seen as below:
YEAR DEPENDENCY
RATIO

1985 72
1995 68
2005 60
2015 52
2025 48
It can be seen from the above table that dependency ratio in India has declined
from 72% in 1985 to 52% in 2015 & likely to decline to 48% in 2025. The
above demographic analysis indicates that India will be enjoying attractive
demographic dividend in the coming years.
Economic Conditions: The economic conditions in India are improving. The

growth of GDP over the period of time has changed economic conditions for the
better. GDP has been accelerated over the period from 0.5% to 3.5 to 5.5 and
7.5 & above. The number of rich persons in India is increasing. The numbers of
poor are decreasing. Hence, more and more people are entering the
consumption community and the consumption basket is expanding. A shift is
taking place towards spending; choice based consumption rather than need
based consumption. As a result, many foreign brands are entering Indian
market.

Size of India’s Consumer Market: The size of India’s consumer market can be
seen from the following table:
(Billion Dollar)
It can be seen from the above table that the aggregate consumer market in India
is 470 billion USD in the year 2011 which is likely to go up to 675 billion USD
by 2016. The total market of food and grocery which is 325 billion USD in
2011 and it is likely to increase to 425 billion USD in 2016. The growth rate is
about 7 percent. The percentage share in 2011 on food and grocery is 69 percent
which will be 62 percent in 2016. Though there is decline in percentage share

from 69 to 62 percent but in absolute terms, there is rise in consumption

expenditure.
Thus, food and grocery is the main item in the consumption basket of the
people. It is followed by apparel and clothing. The total expenditure on apparel
and clothing which was Rs.35 billion in 2011, likely to go up to Rs. 50.2 billion
in 2016. Its percentage share was 7.4 % in 2011 and 7.5 % in 2016. The next in
order of consumption is jewellery and watches. The total consumption on this
item was 25.6 billion in 2011 which is likely to go up toRs.44.2 billion in 2016.
Similarly, the expenditure on consumer electronics and IT which was Rs. 22.7
billion in 2011, likely to be Rs.42.8 billion in 2016. Thus, the four major items
in the consumption basket are food and grocery, apparel, jewellery and watches,
consumer electronics and IT. The total percentage share of these four items in
the year 2011 was 23.3% and 29.6% in 2016.
Research Objectives: Objectives are the goals of the research. It is the end
result of research. Research is conducted for the attainment of certain well
defined objectives. Objectives should be clearly defined and measurable so, that
there is no confusion as to what is to be achieved. Objectives and research
problems are correlated. They are inter-dependent. The best way to frame the
objective is to convert the research problem into research questions.
OBJECTIVES OF THE STUDY:
Major objectives of the research :
1. Factors, responsible for Brand Preferences: The first major objective

of the study is to find out factors, responsible for brand preferences by the

customers. Consumer buying decisions and brand preferences depend on

variety of factors like, quality of the product, end-use, price of the
product, services provided, brand image and soon. The study will focus
on the most important factors so, that marketers can concentrate on these
for planning their marketing and branding strategies.
2. Correlation between Brand Identity and Brand Image: The third
major objective of the research is to find out the coefficient and
correlation between brand identity and brand image. The brand identity is
created by the firms and brand image is the perception of the customers.
The study will help in identifying the gap between the two so, that firms
can take measures to bridge this gap. The above objectives will be
covered by the collection of data from the selected targeted customers
and the same will be analyzed in terms of statistical significance and
results
3. Main objectives of the study are:
● To study factors affecting buyers' decisions for purchasing cosmetic
products.
● To study the purchase pattern of consumers for cosmetic products.
● To study brand preference for cosmetic products.
● To find out the cosmetic brands and factors influencing purchase on the
basis of brand perception.
● To identify the consumers‘ brand preferences towards cosmetics
products.
● To analyze the effect of media communication on buying behaviour.
SCOPE OF THE STUDY:
The scope of the subject of consumer behavior is much wider as consumer

behavior itself. It is a complex subject, affected by large number of factors.

However, the present research focuses on few factors which will help in
assessing the impact of these factors on consumer purchases. The scope of the
study includes:
(1) Branding (2) Consumer profile/ Indian consumer (3) Marketing of brands
(4) Qualities of good brands (5) Consumer Preference for cosmetic Brands/
consumer behavior.
● Branding/Brand Image: This includes the concept of branding,

importance of branding, types of branding, advantages of branding,
branding process, brand extension, functional brands, image brands,
experience brands, features of good brands, etc.
● Consumer Profile: It includes the changing consumer profile of Indian
consumers, size of the market, types of consumers, income distribution,
urban and rural consumers, consumer spending and different products
categories, etc.
● Marketing of Brands: It includes the various marketing and promotions,
adopted by firms to market their products. It includes advertising,
publicity, sales promotion, customer relationship, personal selling, etc.
● Qualities of Good Brands: It includes various elements of brands such
as, brand name, uniform resource locators, logos and symbols, characters,
slogans, etc. It also includes the features of a good branding, etc.
● Consumer Behavior: It includes the study of consumer behavior i.e.,
how consumer makes decisions to spend their income on various items. It
is a process in which, a consumer is engaged in evaluating, acquiring,
using, disposing of goods and services. Consumer behavior is not uniform
for all consumers and for all products. Such study will help in taking
appropriate business decisions.

ORGANIZATION
NYKAA
Nykaa is an e-commerce website founded in 2012 by Falguni Nayar

headquartered at Mumbai Maharashtra. She was born and raised in Mumbai.
Falguni Nayar is a graduate of the Indian Institute of Ahmedabad. In 1993,
Falguni joined Kotak Mahindra Bank as a Head of their Investment Banking
division. After eight years of managing their international operations in the US
and the UK; Falguni then moved on to take over the role of Managing Director
of their investment banking business in 2005. Over the period of 10 years, she
successfully leads the firm to become India’s leading IPO bankers and was also
the key person behind the closure of a number of successful M&As as well. She
took a job as a management consultant after completing her degree of MBA in
Finance. Her husband whom she met at business school, took a job in
finance.He is now a CEO of KKR India. Other than that, she was a Founding
Member of the Asia Society in India, and also sits on the boards of several
companies, including the Aviva Insurance Board, Dabur India, Tata Motors (as
an Independent Member), as well. Falguni Nayar got the idea of starting Nykaa
when she once walked into a Sephora store. She was amazed by the variety of
brands available at the store. She bought products worth hundreds of dollars.
The sales associates showed her the best way to use them. They recommended
her best beauty products without any bias. She felt that there is a dearth of
multi-brand chains in India in beauty and wellness. At the age of 50, Nayar gave
up her stellar career at Kotak Mahindra and turned into an entrepreneur. That’s
how Nykaa Business Model was formed. The demand was on the top, but there

were only few places to get genuine beauty products so she launched Nykaa
with her husband, Sanjay Nayar in 2012. She raised a total of INR 280
Crore(USD 41.6 Million) through multiple rounds of funding. Nyka generated
INR 260 Crore(USD 38.4 Million) turnover in 6 years. Nykaa’s revenue has
grown close to 300% in past two years. The company is also eyeing for an
initial public offering in 2020. Nykaa is receiving 16,000 orders in a day.
India’s beauty market is dominated by Nykaa, which commands a 33% share.
Makeup accounts for about 60% the sales, Skincare makes up 26%, haircare
takes about 18% of the sales. Men centric products contributes 7% and the rest
of the sales revenue is derived from bath products, perfumes, beauty appliances,
etc. As your beauty buddy, Nykaa also offers expert advice and guidance,
through their must-read Beauty and Makeup Blog –‘Beauty Book’, which
accounts from 25 leading makeup stylists, skin, hair, personal care and wellness
experts who answer any questions or concerns that one may have related to
beauty, health, nutrition and personal care. This section also includes a Virtual
Makeover tool to try and share different makeup looks as well. Beyond that,
Nykaa also has a section called – ‘Ask Nykaa’, which is a community of fellow
members of the portal for all the questions and doubts that one may have before
they purchase a product from the site.
HOW HAS BEEN NYKAA’S GROWTH SO FAR

Falguni founded Nykaa.com when she was looking at various business options.
This one particular trend that she noticed was countries like Japan, France, and
Europe had stores like Harrods, Bloomingdale’s and Saks Fifth Avenue that
offered a wide range of beauty products and fragrances. But unlike them, even
after having a huge demand, India did not have many such outlets. Later, she
also studied and observed Sephora – a US-based multi-brand retailer, which
offered its customers an unbiased advice about multiple brands and
products.Around that time, the eCommerce sector had begun to take off in 2012

when she quit investment banking. There was a need for a multi-brand retail
format in the beauty business in India, and the millennials exactly knew what
they wanted and were also open to change. So if you wanted to cater to such
customers, a few brands on display would not have been enough; but instead,
you’d need performance-based products!
She understood that this segment had a large market to be catered and
eCommerce would be more efficient way to service all the customers with a
long-tail inventory market in India. Hence, inspired by the concept and a keen
interest in the segment; Falguni along with her banker husband Sanjay Nayar,
started Nykaa.com. The Nayars invested $2 Mn from their own pockets and
controlled roughly 95% stake, while employees held the remaining stake. They
started off with an extensive selection of curated and branded products through
an initial offering of 100+ brands and 4000+ SKUs (stock keeping units), and
received their first order on 24thOctober 2012. In the next two years, not only
did Nykaa open their first physical store in Delhi’s T-3 Terminal (August 2014),
but were also booking a staggering growth of 323%, with 1.5 million visitors
and 50,000 unique visitors a month. They had now expanded to over 350 brands
and 35,000 products and were also claiming to have sold more than 1.25 million
products to 178,659 customers till date. They were now directly competing with
companies like Purple, as well as large online retailers such as Amazon. More
recently, the company has also introduced their privately labeled products in the
bath and body care category and have also expanded their physical outlet to
Mumbai airport as well. Talking about their funding – Nykaa.com has raised a
total of $12.9M from a clutch of investors, including high-net-worth individuals
(HNIs), non-resident Indians (NRIs) and family offices, along with TVS
Capital, Atul Nishar, Harsh Mariwala, Dalip Pathak (who established the India
business for private equity firm Warburg Pincus, LLC in 1994), Techpro
Ventures Private Limited, etc… Going ahead, Nykaa aims to open offline stores
in Mumbai, Delhi, and Bangalore by the end of this year. They also intend to
raise roughly ₹100 crores more, to expand their private labels and offline stores,
and for marketing and setting up warehouses.
UTILITY OF STUDY
The importance of the study can be seen as below:
1) Cosmetic industry is one of the fastest growing industries in India and all
over the world. It covers skin care, hair care, makeup, perfumes, hygiene
products and oral cosmetics. There are multinational corporations, operating in
this field. At the same time, there are small scale units. The study will reveal the
size and structure of cosmetic industry, its growth rate and future potentials.
2) Branding is one of the most important developments in the field of
marketing. The study will focus on how companies build their brand over the
period of time. It will help in describing the brand image or brand equity of the
companies.
3) The study will also reveal, why consumer prefers a particular brand and helps
in branding of goods by other competitors.

4) It will also help in understanding the consumer buying behavior. It will also
help assessing the important determinants of consumer decision making
process.
5) The study will provide information on the subject which is not much
discovered in India.

CHAPTER NO. 2
RESEARCH METHODOLOGY
Research methodology simply refers to the practical “how” of any given piece
of research. More specifically, it’s about how a researcher systematically
designs a study to ensure valid and reliable results that address the research
aims and objectives.
For example, how did the researcher go about deciding:
● What data to collect (and what data to ignore)

● Who to collect it from (in research, this is called “sampling design”)
● How to collect it (this is called “data collection methods”)
● How to analyse it (this is called “data analysis methods”)
In a dissertation, thesis, academic journal article (or pretty much any formal
piece of research), you’ll find a research methodology chapter (or section)
which covers the aspects mentioned above. Importantly, a good methodology
chapter in a dissertation or thesis explains not just what methodological choices
were made, but also explains why they were made.
The basics of a research methodology
A research methodology encompasses the way in which you intend to carry out
your research. This includes how you plan to tackle things like collection
methods, statistical analysis, participant observations, and more. You can think
of your research methodology as being a formula. One part will be how you
plan on putting your research into practice and another will be why you feel this
is the best way to approach it. Your research methodology is ultimately a
methodological and systematic plan to resolve your research problem.

In short, you are explaining how you will take your idea and turn it into a study,
which in turn will produce valid and reliable results that are in accordance with
the aims and objectives of your research. This is true whether your paper plans
to make use of qualitative methods or quantitative methods.
The main objectives of any research are:
● To get an insight into a problem

● To find solution to a problem
● To test existing theories
● To develop new concepts, theories and ideas
● To test hypothesis
● To predict the future
The steps, involved in research process are:
STEPS DESCRIPTION

Thus, research involves a systematic procedure or steps which are to be

followed in the research process. These steps are discussed in the present
chapter.

WHAT IS RESEARCH PROBLEM ?
Formation of Research Problem:

Research begins with the identification of research problem. Research problem
is the problem, faced by the researcher which is to be tackled through research.
Defining problem is very important and crucial. A problem which is clearly
defined is half solved. It gives proper direction to research. Research problem
can be identifies through literature review, intuition, consultation, discussion
and various other sources.
Literature review is the study of earlier research work, done by various
individuals or organisations on the subject of the research. The purpose of
literature review is to know the present status of the problem at hand, find out
existing research gaps and take research further to fill the gap. Research must
add to existing knowledge. Literature review implies analysis of research
papers, journals, books, magazines, reports, projects on the subject of study.
The next step is to decide the research objectives. Objectives are the end result
of research. It is the goals which the researcher aims at. Objectives should be
few and not too many. The research question is converted into research
objectives. There can be main objectives and sub objectives. Main objectives
are the overall statement of the focus of the research while sub objectives are
the specific component of the main objectives. The main objectives of the
present research are:
1) To find out the correlation between income and status on branded products
2) To find out the factor, influencing consumer behavior for the purchase of
cosmetic brands 3) To find out the correlation between brand identity and brand
image of the product
Thus, the objectives are clear and well defined as well as measurable.
Objectives determine the nature and type of research to be undertaken or the
research design to be adopted.

Another important element of research problem is the identification of

variables. There are two types of variables i.e., dependent variables and
independent variables. Independent variables are responsible for the change
while dependent variables are the outcome of the change. In the present
research, brand image. Consumer behavior is the dependent variable while
factors such as income, age, occupation, preferences are the independent
variables.
Another important element of this is the formulation of research hypothesis. It is
a statement or a proposition which is to be tested for its correctness and validity.
It is the basic assumption of the research. The hypothesis are generally, based
on the research objectives. There are two types of hypothesis i.e., Null
hypothesis and Alternative hypothesis. The null hypothesis describes that there
is no relation between the two variables while alternative hypothesis describes
that both the variables are interdependent and related. Acceptance of Null
hypothesis implies rejection of the alternative hypothesis.

Research Design:
The next step in the research process is to decide about the research design.
Research can be classified on the basis of the purpose or techniques of research.
The major types of research are:
1. Exploratory Research
2. Descriptive Research
3. Casual Research
Exploratory research is carried out to discover something which is unknown or
not explored earlier. It is not done to find out some solution to a problem but it
is the first step towards further research or solving the problem. Exploratory
research is used to guide and facilitate further research. Such research is most
common for the product-development, innovation, process development. The
size of the sample in this type of research is small. The method of sampling,
used is non-random sampling.
Descriptive research is carried out to describe the features of the market, people,
objects, organization. It describes the existing picture of the situation e.g., size
of market, number of customers, nature of competition. Such research can also
be conducted after the exploratory research. Such research has to be accurate so,
that the results or findings can be used to overcome the problem. The size of the
sample in this type of research is large and the methods of sampling are
generally, random scientifically.
Casual research is carried out to explain the relationship between two or more
variables. For example, the sampling. Descriptive research should be carried out
more relationship between financial decisions and banks profitability can be
measured and the results can be found out i.e., whether good decision-making
leads to higher profitability or not. In the present research, the relationship
between level of income and brand preferences and status of the consumer and

brand preferences can be measured to establish casual relationship between the

two variables.
Thus, there are three types of research design i.e., exploratory, descriptive and
casual research. The choice of the particular research design depends on the
nature of the research. A comparison of the three research designs can be
summed-up as below:
What are the different types of research instruments?
A research instrument is a tool you will use to help you collect, measure and
analyze the data you use as part of your research.
The choice of research instrument will usually be yours to make as the
researcher and will be whichever best suits your methodology.
There are many different research instruments you can use in collecting data for
your research.
Generally, they can be grouped as follows:
● Interviews (either as a group or one-on-one). You can carry out

interviews in many different ways. For example, your interview
can be structured, semi-structured, or unstructured. The difference
between them is how formal the set of questions is that is asked of
the interviewee. In a group interview, you may choose to ask the
interviewees to give you their opinions or perceptions on certain
topics.
● Surveys (online or in-person). In survey research, you are posing
questions in which you ask for a response from the person taking
the survey. You may wish to have either free-answer questions
such as essay style questions, or you may wish to use closed

questions such as multiple choice. You may even wish to make the
survey a mixture of both.
● Focus Groups. Similar to the group interview above, you may
wish to ask a focus group to discuss a particular topic or opinion
while you make a note of the answers given.
● Observations. This is a good research instrument to use if you are
looking into human behaviors. Different ways of researching this
include studying the spontaneous behavior of participants in their
everyday life, or something more structured. A structured
observation is research conducted at a set time and place where
researchers observe behavior as planned and agreed upon with
participants.

Each type of research gives different results. Exploratory research discovers

new ideas and concepts but it needs further testing before taking any action.
Descriptive research is more focused and structured. Results of this research can
be used for decision-making and further action. Casual research is also more
structured and focuses on specific hypothesis. It gives the impact of change in
the independent variable on dependent variables.
Instrument for Data Collection:
The next step in the research process is to prepare the instrument of data
collection i.e., the questionnaire. A questionnaire contains list of questions on
the subject of the research. Questionnaire is generally divided into different
parts like, general questions, specific questions, covering various aspects of the
research problem. Preparedness of the questionnaire is not an easy task. It
requires complete understanding of the subject of research. Questionnaire can
be can be prepared on the basis of list of information, needed in the research to
solve the problem. The best way to make a questionnaire is to make a list of
topics or sub-topic which is required to be collected from the respondents and
the same topics can be converted into research questions. Questions can be
open-ended or closed-ended. Open-ended questions provide large variety of
answers and hence, it becomes difficult to analyse these questions. Closed-
ended questions provide limited options to choose from like, ‘Yes’ or ‘No’,
‘Strongly Agree’, ‘Not Agree’, ‘Strongly Not Agree’, etc. Such questions can
be easily tabulated and analysed. In the present research, both open-ended as
well as closed-ended questions are asked to the respondents. However, majority
of the questions are closed-ended questions.
The questionnaire should be simple and easy so, that there is no confusion to the
respondents in answering the question. The questionnaire should not be too

large or too small. The ideal size depends on the nature of the research. The
questionnaire must provide sufficient information on the problem of research
and helps in drawing useful conclusions. A copy of the questionnaire is
enclosed in the annexure I of the present research. The questionnaire was first
prepared as draft questionnaire and then, it was tested on a pilot group of five
customers to get an idea about the actual working or validity of the
questionnaire and on the basis of these results, the final questionnaire was
modified and prepared.
Sampling Design:
Research is carried out on the basis of sampling. A sample is a part of the

universe, selected for the purpose of research. For example, if there are 10,000
consumers, then it is not possible to cover all 10,000 consumers and collect data
from them, it will not be sample study. It is called, ‘census’ which means,
listing the entire population or universe. It is difficult to cover the entire
population as it is time consuming and expensive. Therefore, some units from
the total are chosen as sample and on the basis of sample results, the research is
generalized for the entire population. Population element is an individual
member of the population or universe. There is the concept of sampling frame
which is a list of elements from which, a sample is taken. It is also called,
‘Working Population’. For example, company customers list may provide us
with a sampling frame from which, customers are selected for the purpose of
research. The stages in the selection of sample can be seen from the following
chart:

There are two methods of sampling i.e., ‘Random Sampling’ and ‘Non-random
Sampling’. Random sampling is also called, ‘Probability Sampling’.
Under random sampling, each and every member of the sampling frame has
equal chance of being selected in the sample. Random sampling is based on
chance and not choice. The different types of random sampling are:
1) Simple Random Sampling
2) Systematic Random Sampling
3) Stratified Random Sampling
4) Cluster Random Sampling
5) Multi Area Random Sampling
Under non- random sampling, the samples are selected by choice and not by
chance. The non- random samplings are:
1) Convenience Sampling

2) Judgment Sampling
3) Quota Sampling
4) Snow Ball Sampling
The choice of method, depends on the nature of the study, degree of accuracy
expected, time factor, cost factor. In the present research, the method of
sampling, used is non-random sampling.
Data Collection, Data Processing & Analysis
These three steps are separate and some of these are covered in detail in the
same chapter. The present paragraph, describes in brief the entire components
i.e., data collection, data processing and data analysis. The steps, involved can
be seen as below:
Data collection implies field work to collect the data from the chosen samples
or respondents. Data collection is most tiring job and requires a lot of passion. It
is time consuming and frustrating. There is always the problem of sampling
error or non-sampling error. Sampling error takes place because of the selection
of wrong samples or substitution of wrong samples. Non-sampling error takes
place due to error in reporting or communication. Editing of data means,

checking the completeness of the data collected, its consistency and legibility of
data so, that the data is ready for further processing. Some editing can be done
at the field also i.e., checking the omissions or blank pages of the questionnaire,
checking the handwriting or checking the responses whether they are logical or
not. Data collection needs competent, qualified investigator. The present data is
collected by the researcher herself from the respondents or targeted customers.
The researcher has tried to minimize the sampling and non-sampling errors.
Once the data processing is completed, tables are prepared, then the raw data is
analysed.

The most common and basic analysis is descriptive analysis. It summarizes

large data in few statistics. It describes the basic characteristics of the data such
as, central tendency distribution and variation. Mean, median, modes, range,
variance and standard deviation are used in descriptive analysis. Tabulation and
frequency distribution is carried out to describe the data. Even cross tabulation
is done for data analysis, cross tabulation analyses data with more than two-
three variables. Tables, graphs can simplify and clarify data. It facilitates
summarization of data. Data analysis is described in detail in the same chapter.
Report Writing:
The last step in the research process is report writing. It is a complete document
which describes the entire research work, undertaken in a systematic manner. It
describes the actual findings of the research. It also makes suggestions and
recommendations. There are different types of reports such as, technical report,
draft report, research report and so on. Most research reports contain the same
elements or topics.
Topic of Research:
The topic of the present research is ‘Impact Of Brand Perception And

Awareness On Consumer Buying Behaviour ’. The research is conducted to
study consumer behavior with respect to cosmetic products. The objective of the
research was to identify factors, responsible for brand preferences by the
consumers. There are various factors which influence the buying behavior of
consumers. These are Income, Age, Sex, Occupation, Status, etc. There are
various motives which influence consumer decisionmaking process.
Another objective of the research is to find out the correlation between the
brand preferences and income and social status. The last objective is to correlate
between brand identity and brand image of the product. Brand identity is

created by the seller and brand image is the result of consumer perception of the
brand.
The present research is based on one corporate entity which is market leader in
the field of cosmetic products. It is Nykaa. It is the most popular brand in the
market. The research will help in finding out the comparative analysis of Nykaa
the other brands with respect to consumer brands preferences, the factors,
influencing and testing of brand images of the Nykaa products.

Sources of Data:
There are two sources of data, used in any research. These are Primary Sources
(or Primary data) and Secondary Sources (or Secondary data). Both primary and
secondary data are used in the present report. Primary data is the data which is
first hard collected, directly from the field work with the help of a structured
questionnaire. It is raw data which needs to be processed and analysed to
convert it into specific information and results. The collection of primary data
involves field work, contacting the respondents. Such data is very useful in the
research process as it gives the current state of the situation or problem in hand.
The primary data is used along with the published secondary data to draw
meaningful conclusions and results. However, collecting primary data is
expensive and time consuming. There is also the possibility of interviewers’
bias or the respondents’ bias.
Secondary data is the available, published data. Such data is readily available
and it is economical and less time consuming. It is also reliable as it is published
data and the sources are authentic. There are two main sources of secondary
data. These are internal sources and external sources. Internal sources are
companies own sales record. The external sources are government publications,
trade associations, newspapers, text books, journals, trade directories,
companies’ annual report, etc. Such data can be private, public, national and
global in nature. Some of the important private, public, national and
international sources are:

Tools, Used for Data Collection:
The method of data collection was:
1) Questionnaire
Questionnaire is an instrument, used for data collection from the respondents or

consumers. Questionnaire, in order to be effective, must collect the right
information, needed for research, must induce consumer to provide all the
information and must minimize errors in reporting. A structured questionnaire
was prepared for the research. It was accompanied by a covering letter,
explaining the purpose and objective of the study. The questionnaire can be
structured or unstructured in the present research. Structured questionnaire with
closed-ended questions were asked to the respondents. The wording of the
questions was kept very simple so, that consumer can answer the questions
without much difficulty. The response of the consumer on the whole was
excellent.

Research Design:
The various types of research designs are:
1) Basic Research
2) Applied Research
3) Quantitative Research
4) Qualitative Research
5) Descriptive Research
6) Exploratory Research
7) Historical Research
8) Experimental Research
9) Casual Research
This topic is also covered in this chapter. The present research design is a blend
of descriptive research as well as quantitative and casual research.
Sampling Methods/Sample Size:
There are two methods of sampling i.e., Random Sampling and Non-Random
Sampling. These methods are briefly described in this chapter earlier. The
sample size for the study is 145 female consumers which will cover the brand
i.e., Nykaa as well as other competitors of cosmetic products. Reason to take
survey only from female consumers is because major cosmetics users in India
are females. Major decision of buying goods, products and different things at
home is mainly the responsible of the women in the house. Even the male
members usually ask females suggestions before purchasing any cosmetic

product. So this was one of the reason to be more interested to know their
perception and awareness related to brands & product purchasing.
These female consumers were interviewed with the help of the questionnaire to
know their consumer behavior with respect to these brands and then to compare
Nykaa and other brands to find out which brand is preferred by the consumers,
why and which brand has retained its brand identity and brand image in the
market. .
Important terms & Concepts, Used in the Present Project:
Some of the important concepts and terms, used in the present research are
described as under:
1) Consumer Behavior
2) Brand Identity
3) Brand Image
4) Branding
5) Brand Personality
6) Brand Positioning
7) Brand Equity
8) Marketing Strategy
9) Values
10) Group Influence
11) Perception
12) Learning

13) Memory
14) Motivation
15) Personality
16) Emotion

CHAPTER 3
LITERATURE REVIEW
1) According to American Marketing Association, ‘Brand is a name, term, sign,

symbol or design or combination of them which is intended to identify the
goods or services of one seller or a group of sellers and to differentiate them
from those of competitors.
Brand image refers to a set of attributes and associations that consumer

connects to the brand name.
3) Asker and Keller (1990) laid the foundations of brand extension models,
finding that the success and failure of a brand extension mostly depends on (1)
the extent to which the skills / assets, associated with making and the original
product can be transferred to the extension product category fit; (2) the observed
quality of the core brand; (3) the interaction between the core brand quality and
the degree to which the original and extension product categories either
complement or substitute each other; (4) the perceived difficulty or designing
and making an extension product category.
4) Aaker (1991), a brand can stabilize business, fight competition, and helps
customers to shop with confidence. Once a customer has decided on a brand, it
helps them becomes brand loyal, generate referrals, continue to make repeat
purchases, prefer it over the other.
5) Mitchell & Greatorex (1993) in their research found out that low level of
trust can be overcome and perceived risk of consumers can be reduced, if a
brand is a respected brand.

6) Broniarczyk and Alba (1994), the success of brand extension is a direct

function of the perceived similarity between the core brand and the new
product, the quality of parent brand, the strength of brand portfolio, and the
support by the side of marketing. Also, brand extension receives the corporate
image of the firm that introduces the extension.
● Dubious, Laurent &Czellar, 2001 gave six dimensions of luxury brands.

These are:
1) Excellent Quality
2) Very High Price
3) Scarcity and Uniqueness
4) Aesthetics and Poly Sensuality
5) Ancestral Heritage and Personal History
6) Super flushness.
Branding is the result of image, created by the product in the market.
7) Parameshwaran, (2001) - Management thinkers strongly believe that the

customer is the king. The single most important job in marketing is the job of
creating and retaining a customer and the best way of creating and retaining
customers is by building strong brands. Now, what are Brands? Products?
Enhanced Products? Products with names? In simple equation:

Thus, brand is much more than product. It is a mixture of physical

product. It is a mixture of physical product and the image, associated with
the product. Advertising is a means of creating that image in the mind of
the consumer and lead to brand building. In case of services, brand is:
Branding is nothing but providing an identity and building a distinct

image of a product or service. It is all about differentiating an
organization from its competitors. Branding involves, creating a mental
structures and helping consumers in organising their knowledge about
product and services and help their decision-making process and at the
same time, provide value to the firm. In other words, branding is
endowing products or services with the power of the brand. Branding has
become one of the strategic instruments of all business today.
8) Rebekah Bennett and Lillian Bovet (2002), conducted research on identifying

key issues for measuring loyalty. Loyalty implies, consumers repeat purchase of
the products. There are various benefits of loyalty to an organization. These are:
Acquiring new customer is more costlier than retaining existing one
● Loyal customers trend to be less deal prone

● Loyal customers are likely to provide free WOM advertising referrals
● Loyal customers will purchase additional products with less marketing
efforts
● Loyal Customers buy frequently and therefore, cost is less
● Customer loyalty and employee loyalty to be positively correlated
● Increased knowledge of loyal customer can be used to improve
effectiveness of marketing activities and negotiation with customers.

● The problem in measuring consumer loyalty is what factors, determine

loyalty, how to measure consumer behavior which include attitude and
behavior towards the product.
9) David Gilbert (2003) - The Pyramidal model of a brand can be seen as

below: (Permanence core values, sources of inspirations or continuity and
identity of the brand)
The positioning of a brand places its competitive context. It is determined on the

basis of product usage, price, and target market.
9) Bhattacharya and Seen (2003) explained the relationship between consumer

and company through the branding process. Consumer relates the brands to
company corporate social identity. It helps in delivering close relationship
between customers and corporate. Thus, a brand reflects corporate social
culture, corporate image, and corporate responsibilities towards the society.
Corporate marketing activities, related to product and market innovation will
have favorable impact on customers and society. Brands can build good
relationship with the consumers and target market. This will help in marketing
of the goods and services as the task becomes easy due to existence of brand
image equity of the product in the market.
10) Keller (2003) identified important criterias which help in building

sustainable brand equity. These criteria are memorability, meaningfulness,
aesthetic appeal, transferability, adoptability and flexibility, legal and
competitive protectability, etc. Hence, while building strategies, corporate
should consider these criteria so, that their brands have higher brand equity. The
advantage of brand equity is that a company can crate higher earnings and
revenue by charging higher price for their goods and services.
11) Chaudhari & Majumdar, (2006) described the periodic structural analysis of
conspicuous consumption behavior indicating its historical evolution, nature
and characteristics. This can be seen as below:
It can be seen from the above table that the drivers of behavior changed from
era to era, earlier it was military and political power. Then it was social power
and status and today, it is self-expression and self-image.

11) Jean Noel Kapferer, (2008), the purpose of brand identity is to specify the
brands meaning, aim and self-image. Brand identity proceeds brand image and
before projecting an image to the public, the sellers must know as to what
exactly they want to project before it is received. The sellers must know what to
send and how to send it. It is explained hereunder:
Thus, image is the synthesis made by the customers of all the various brand
signals. Brand identity can be represented by a hexagonal prism as below:
13) Richard Elliott, Larry Percy (2008) -
The starting point for all brands is developing brand awareness. For all markets,
awareness is necessary because it reduces the perception of purchase risk. In
order to get to the second stage of brand, two elements are necessary, namely,
perception of differentiation and personal relevance. In order to make consumer
perceive as differentiated product from the competitors, three beliefs must be
developed:
1) That the brand is different from other brands
2) The point of difference is unique to the brand
3) The difference is worth paying more for it
Thus, brand must maintain perception of differentiation. Relevance implies that

the brand has some relevance to the user or customer. Brand Stage two means,
sustainable and profitable brand. Third stage can be achieved when Brand make
social esteem and emotional bond. Social esteem implies as to how other people
view the brand and emotional bond implies, relationship based on experience
with the brand. As brand is built, consumer develops familiarity, trust and
confidence in the brand.
14) Bhimrao M. Ghodeswar (2008) identified important elements of brand

building on the basis of existing literature review and the success of most
powerful brands in the country. The four elements of brand building are
positioning of the brand, communication of the brand message, delivering the
brand performance and leverage the brand equity. The PCDL model
(positioning, communication, delivery and leverage) can be seen as below:
FIG. _______ PCDL MODEL

The PCDL model can be served as a guideline to managers in building brand

identity in their chosen target market. With changing market environment, the
managers have to change their marketing strategies as per the expectations of
their customers. Thus, there are various elements in building brand identity and
these elements can be altered to create greater image of the brands in the eyes of
the customers. The research covered a case study of Dabur Vatika. The brand
positioning includes premium quality, pure 100% coconut hair oil in white and
green bottle. The communication strategy includes TV shows, sponsored events,
advertisement and publicity, music award functions. The delivery includes
benefits of natural products in a single pack and easy availability at the stores.
Leverage strategy includes anti- dandruff shampoo, fairness face pack, etc.
Thus, Dabur has successfully built its brand in the market.

CHAPTER NO. 4:
DATA ANALYSIS, INTERPRETATION AND

PRESENTATION
Q1. Which age group do you belong to?
Age Group 15 TO 20 21 TO 30 31 TO 40 41 & ABOVE
AGE
20%
26%
15 TO 20
21 TO 30
31 TO 40
41 & ABOVE
13%
41%
DATA INTERPRETATION:
In the above diagram we can observe that out of 145 responses 20% of the
respondents belong to 15 to 21 age group. 41% of the total respondents falls
under the age group of 21 to 30. 13% of the respondents are of 31 to 40 age
group and 26% of the total respondents belong to 41 & above age group.

Q2. Gender
GENDER
FEMALE
100%
Data Interpretation:
In the above diagram we can see that the questionnaire was only drafted for
females which are why the gender specification is 100% females.

Q3. May I know your Occupation?
A B C D
Student Employee Self Employed House Wife
Occupation
14%
33%
Student
12%
Employee
Self Employed
House Wife
41%
From the above pie chart we can see that out of 145 respondents around 32% of
total females are students, whereas 41% are employees, 12% belong to the self
employed category and 14% are House Wife.

Q4. How frequently do you purchase cosmetic products?
A B C D
Weekly Monthly Yearly Occasionally
1%
23%
Weekly
Monthly
Yearly
11% Occasionally
65%
As we can see from the above pie chart that 1% of the total female respondents
purchase cosmetic products on a weekly basis. 23% of the total respondents
purchase cosmetics on a monthly basis. 11% purchase on yearly basis and 65%
of the female respondents purchase occasionally.

Q5. Which of the following mode do you prefer to buy cosmetic products?
A B
Online Offline
30%
Online
Offline
70%
From the above diagram we can observe that around 30% of the total female respondents
prefer to buy cosmetic products from online mode, whereas 70% of the female respondents
prefer to buy cosmetic products from offline mode.

Q6. Which of the following application do you prefer to purchase cosmetic

products online?
A B C D
Nykaa Purplle The Body Shop Others
Nykaa
44%
49% Purplle
The Body Shop
Others
5%
2%
The above pie diagram shows that 49% of respondents use Nykaa application
for purchasing cosmetic products whereas 2% of the respondents use Purplle,
5% use The Body Shop, and 44% use other applications for purchasing
cosmetic products.

Q7. Which of the following factor influence you the most while choosing your
cosmetic brand?
A B C D
Advertisements Friends Social Media Family

Influencers
17%
19%
Advertisments
Friends
Social Media Influencers
24%
Family
40%
Out of 145 respondents, 19% are been influenced by advertisements, 40% of the
respondents are been influenced by friends, 24% of the respondents are
influenced by Social media Influencers and 17% are been influenced by Family.

Q8. Do advertisements and celebrity endorsements change your perception

related to the brand?
A B C
Yes No May be
6%
21%
Yes
No
55% May be
18%
As we can see from the above diagram 6% of the respondents say yes whereas
21% of them say No and rest of them are from the option of May be.

Q9. Do you think expensive brands are better than the cheaper ones?
A B C
Yes No May be
33%
37%
Yes
No
May be
30%
From the above pie diagram we can observe that 33% of the respondent says
yes that expensive brands are better then cheaper ones whereas 30% of them say
no and rest of the respondents are with an opinion of May be.

Q10. Do you collect necessary information before purchasing a product of a

specific brand?
A B C
Yes No May be
8%
6%
Yes
No
May be
86%
From the above pie chart we come to know that 86% of the total female
respondents collects necessary information before purchasing while 6% of them
do not collect the information and 8% of the respondents are with the opinion of
May be.

Q11. Rate the brands according to your preference for buying cosmetic
products where 1 = Lowest Rate, 2 = Mediator, 3 = Good, 4 = Excellent, 5 =
Delightful
Brands Delightful Excellent Good Mediator Not worth

5 4 3 2 1
Nykaa 73 40 23 3 6
Purplle 16 48 50 24 7
The Body 32 48 42 16 7
Shop
Lush 15 36 46 37 11
Beauty 17 29 47 37 15
Barn India
80
70
60
50 5
40 4
3
30 2
20 1
10
0
Nykaa Purplle The Body Shop Lush Beauty Barn
India

From the above chart we can see that Nykaa stands to be first among all where
as The Body Shop stands on second, Third position is held by Purplle, and then
comes Lush and after which Beauty Barn India.

Q12. Rate the factors that you keep in mind while preferring a brand for
cosmetic products where, 1 = Lowest Rate, 2 = Mediator, 3 = Good, 4 =
Excellent, 5 = Delightful
Factors First Second Third Fourth Fifth

Preference Preference Preference Preference Preference
Brand Name 78 38 19 6 4
Quality 120 11 4 2 8
Discounts 63 42 25 7 8
Celebrity 25 23 56 23 18
Endorsements
140
120
100
5
80
4
60 3
2
40 1
20
0
Brand Name Quality Discounts Celebrity
Endorsements

From the above diagram we can see that Brand Name plays an important role
whereas Quality is the primary one for the respondents. Discounts is the second
last one and celebrity endorsements is the last one.

Q13. Do you recommend cosmetic brands depending on your past experience?
A B C
Yes No May be
8%
5%
Yes
No
May be
87%
The above diagram shows that 87% of the total female respondents recommend
cosmetics brands on the basis of past experience, whereas 5% say no that they
do not recommend and 8% of them are from the may be opinion.

Q14. On which of the following parameters would you like to refer the brand
to others?
A B C D
Experience with Quality of the Quality of the Price of the

the Brand Product Service Product
1%
3%
29%
Experience with the Brand

Quality of the Product
Quality of the Service
Price of the Product
67%
The above diagram shows that 29% of the total respondents would refer to the
brand based on their experience. 67% of the respondents would refer on the
basis of Quality of the product, whereas 1% of respondents would refer on the
basis of the service and rest 3% would refer on the basis of the price of the
product.

Q15. According to you on which elements the online applications of brands

needs to improve themselves to build a better brand loyalty?
A B C D
Packaging Return/Exchange Product Delivery Provisions for last

Policy minute changes
15%
18%
Packaging
12% Return/Exchange Policy
Product Delivery
Provisions for last minute

changes
55%
In the above diagram we observe that 18% of the respondents suggests that the
brand needs to improve the packaging, whereas 55% of them says that their
Return or exchange policy should be improved, 12% of the respondents suggest
to improve the product delivery and rest 15% of the respondents suggest to give
provisions for last minute changes.

Q16. Which is the main factor that Influences your decision to switch brands?
A B C D
Experience with Advertisement of Variety of Price

the Brand competitor brand Products offered
13%
Experience with the Brand
Advertisement of competitor
20% brand
Variety of products offered
64% Price
3%
From the above diagram we can see that 64% of the respondents are been
influenced to switch the brand because of experience with the brand, 3% of
them are influenced because of the advertisements of the competitors brand.
20% of the respondents are influenced because of the variety of product offered
and rest 12% of the respondents are influenced because of the price.

Q17. Which factor makes you to recall a cosmetic brand?
A B C D
Advertisement Offers Experience Recommendations
14% 16%
Advertisement
Offers
17%
Experience
Recommendations
53%
According to the above pie chart, 17% of respondents recall the brand because
of their advertisements whereas 17% of them recall because of the various
offers given by the brand, 53% of the respondents recall the brand on the basis
of their experience with the brand and rest of the 14% recall the brand because
of the recommendations.

Q18. Which of the mode do you think has an impact on uplifting the value of
the brand?
A B
Online Applications Offline Showrooms
46%
Online Applications
Offline Showrooms
54%
From the above pie chart we observe that 46% of the female respondents thinks
that the online application mode has an impact on uplifting the value of the
brand, where as 54% of the female respondents thinks that the offline
application mode has an impact on uplifting the value of the brand.

CHAPTER NO. 5:
CONCLUSIONS AND SUGGESTIONS
The Indian economy witnessed rapid changes in the year 1991 when
Government introduced the NEP of liberalization, privatization and
globalization of the economy. It has brought a series of changes in the economy
such as from control to de-control, licensing to delicensing, local market to
global market, less completion to more competition and so, on. This has brought
great impetus to foreign capital and MNC in the country. Before 1991, foreign
capital was not fully allowed in the country but after that, foreign capital started
flowing in the country and this also resulted in the entry of many MNC in the
country. The market became buyers’ market with greater focus on customer and
quality of the products and services. The market become more competitive and
marketing became more challenging and difficult. This has benefited customers.
The macro-economic scene of India changed over the period of time in terms of
GDP, population, growth rate, Forex, inflation, Balance of payment etc. India
became one of the fasted growing economies in the world after China. The
country has the largest number of young population in the world which will
provide demographic dividend to the country.
The total size of the cosmetic sector in India is about 950 million USD and it is
growing at the rate of 15 to 20 percent per annum. However, major sales of the
cosmetics products are in the lower and medium price range. This is due to the
fact that people are more price conscious and sensitive. The composition of the
Indian cosmetic industry is in terms of products as Color cosmetics (17%),
Fragrance (19%), Hair care (21%), Skin care (14%), beauty services (09%),
Herbal products (13%) etc. Thus the industry provides all types of cosmetic to
the customers. The rapid growth of this sector can be attributed to various
factors and one most important is the present nature of business environment in

the country which include Political factors, Economic factors, Legal factors,
Technological factors, and so, on.
The break-up of the industry in terms of domestic brands and foreign brands is
about 80% and 20% respectively. Thus, the domestic brands dominate the
market and foreign brands are limited. This is due to the fact that foreign brands
are costly and expensive and the lower and middle income group customers
may not buy such products. The SWOT analysis of Indian cosmetic industry
can be seen as below : • The strength of the industry is good presence of global
players, more developed and matures industry, better innovation, good sales and
distribution system, contributes to growth of the economy, and global presence.
• The weaknesses of the cosmetic sector are consumer are price conscious,
highly fragmented sector, lack of presence in the rural areas, more spending on
promotion, domination of few players. • The opportunities for this sector are
higher young population, rising income, greater personal care, diversified
market, etc. • The threats of this industry are high concern about the quality and
health and environment, high cost of research and development, high cost of
technology and innovation, too much regulation by the Government, stiff
competition in the market between local and global players, etc. Consumer
behavior however, is the understanding of how consumer behaves with respect
to his demand for the products and services. It means, why he buys the
products, when he buys the products, how much he buys the products, how
much he want to pay for the products and so,on. The study of consumer
behavior will help marketers to know their customer better and to serve them
well. It makes the task of marketing much easy and profitable. Consumer
behavior is more complex and dynamic subject because it keeps on changing
from time to time. Companies should know their customers so, that it will help
them to retain their customers as retaining customer is more economical than
getting new customers.

Consumer behavior depends of large number of factors which can be classified

into internal factors and external factors. The internal factors include perception,
learning, memory, motivation, personality, emotions, attitudes etc. The external
factors include Culture, sub culture, demographics, social status, reference
groups, Family and Marketing activities. A consumer purchase is a process of
experiences and acquisition and satisfaction of their needs and desires. The
decision process consist of various steps such as situation, problem recognition,
Information search, alternative evaluation, outlet selection, purchase decision
and post purchase evaluation. Thus, understanding of consumer behavior is the
key element in the success of marketing and building of marketing strategies of
all organizations today. The present research relates to understanding of
consumer behavior with respect to cosmetic brands to find out what factors are
responsible for the purchases of cosmetic brands by them and to find out the
correlation between income and status of the consumers and their purchase of
cosmetics. Another objective of the research was to find out the relation
between brand identity and brand image with respect to cosmetics. The analysis
provides an overview of a cosmetic industry in the world in the Asia Pacific and
in India. Cosmetic sector is expanding globally as well as in Asia Pacific and
India. The cosmetic sector is divided into different segments like on product
basis, distribution basis, gender basis and geographic basis. The expansion of
cosmetic sector is due to various favorable factors, operating globally such as,
changing life style, rising disposable income, use of national ingredients, large
young population, higher standard of living, growing awareness about beauty
and health, etc. While China has the largest population, India has the largest
young population. This is beneficial to the cosmetic sector.
While the Indian cosmetic market size is about 4.6 billion USD. Thus, the Asia
Pacific market represents 37 percent of the global market while India’s cosmetic
market represents only 1.58 percent of the global market. This indicates that
there is good market potential for cosmetics in India. In the cosmetic sector,

skin care market is the largest, globally accepted market in western countries as
well as in India. There are many motivational brands, operating at the world
level as well as in India. The top ten global brands are Proctor & Gamble,
L’Oreal, Unilever, Colgate, Palmolive, Estee Lauder, Avon, Johnson &
Johnson, Shiswido, Kao Corp. The top ten brands in India are Lakme,
Maybelline, L’Oreal, Revlon, Elle 18, Avon, Boutique, Amway, MAC, Shahnaz
Husain, etc. The Indian market has presence of MNC, Indian large companies
as well as small companies in the decentralized sector. This creates great
diversity and stiff competition in the market. The cosmetic sector in India also
face various inherent problem like multiplicity of market players, stiff
competition, price variance, quality variance, supply of counterfeit distribution
problem, government regulations, urban dominant market and so, on. Despite
these problems, the industry will witness about 8 to 10 percent growth rate in
the years to come. The research is based on two leading cosmetic brands namely
Lakme and MAC. Lakme is one of the most famous and known brand in the
world. It is the product of Unilever which is a multi-national company. The
company is very old in the business of cosmetic and it was started in the year
1952. The company has large number of cosmetic products in all categories of
cosmetics and beauty. It is the market leader in the field of cosmetic in the
world as well as in India.
The research also validated the relationship between branded goods and
preferences of the consumers. The research also established a significant
positive correlation between brand identity and brand image of the cosmetic
brands of Lakme and MAC. The hypothesis, framed in the beginning of
research is tested with the help of data collected and the entire three null
hypotheses are rejected. These hypotheses were firstly there is no correlation
between income and brand preferences, secondly, branded goods are not
strongly preferred by the consumers because of brand image and thirdly, there is
no direct correlation between brand identity and brand image. The statistical

test, conducted, invalidates the three hypotheses. The analysis, however clearly
shows that although Brand Image may not be an exact mirror image of the
Brand Identity, a company strives to achieve. Nevertheless, most cosmetic
companies have succeeded in reflecting the same. Most of the consumers agreed
that Brands are important and their characteristics like, ‘High Price’ are actual
positive aspects rather than negative. Most consumers agreed that high price of
a brand is equated to better quality and more value for money and not just
unwanted inflated price of a brand. In case of cosmetics, it is also very clear that
‘Branded Goods’ are most important viz-a-viz, cheaper products. Therefore,
consumers at the lower tier or strata also preferred, using Global Brands like,
L’Oreal, Lakme, and Maybelline. Although, the products itself may be at a
lower price point. This is again a smart strategy, incorporated by the companies,
maintaining a balance between product mix and Brand Identity. This will ensure
Brand Loyalty when the same consumers move up to the next tier.
Recommendations:
On the basis of the findings of the research, the following recommendations are
made which will be useful to the marketers in improving their marketing
strategies and targeting their customers:
1) The research revealed that impulse purchasing is an important element in

consumer buying decision. Hence, marketers should take-up suitable measures
for visual merchandising of the cosmetic products and proper display of the
products at the strategic points in the store which can be easily noticed by the
consumer and help in selling products to many customers.
2) Companies marketing and selling cosmetic products should provide more

detailed information about the natural ingredients and organic ingredients being
used in the products. This will help the customer in better decision- making
about the products.

3) The study revealed that Lakme as brand has greater preferences as compared
to MAC brand in the higher income group customers. Hence, MAC should take-
up proper advertisement and publicity of the MAC brand to create better brand
image among the customers. On the basis of quality, both the brands are
important to the customers.
4) A small proportion of the customers indicated that they are not aware of these
brands and not used these brands. Therefore, the company should also focus on
proper advertising and publicity so, that the customer base of the product
widens.
5) Both, Lakme and MAC should also focus on online sales and provide
discounts to the customers as there is no distribution cost and middle men
margin. The direct marketing will benefit customers to get the branded goods at
comparatively lower prices and provide value for money. This will help in
meeting market competition and creating greater customer loyalty for the
brands.
6) The research revealed that consumer buying process is highly impulsive.

Hence, the seller must focus on proper display of the products at the strategic
location in the retail outlets to attract the attention of such buyers.

BIBLOGRAPHY & WEBLOGRAPHY
References/Bibliography :
1. Special studies in marketing Hinduja Srichand, Tejindar More, Thakur

publisher’s (2013-14), ISBN-978-93-83130-26-9,“Special Studies in
Marketing”.
2. Aaker, D.A. and Keller, K.L. (1990) January in “Consumer Evaluations of

Brand Extensions”, Journal of Marketing Research, 54, 27-41.
3. Aaker, D. A. (1991), “Managing Brand Equity”, New York: Free Press.
4. Mitchell, V-W. &Greatorex, M. (1993), “Risk Perception and Reduction in

the Purchase of Consumer Services”. Service Industries Journal, 13 (4). 179-
200
5. Broniarczyk, S.M., & Alba, J.W. (1994), “The importance of Brand in Brand
Extension”. Journal of Marketing Research, 31(2), 214-228.
6. Aaker, Jennifer L. (1997), “Dimensions of Brand Personality,” Journal of

Marketing research, 34 (August), 347-356.
7. Bowen, John T. & Shoemaker, Stowe (1998). Loyalty: “A strategic

commitment”. Cornell Hospitality Quarterly, 39(1), February, 12-25.
8. Dubios&Dugnesnse (1993), “The Market for Luxury Goods”, Income v/s

Culture, European Journal of marketing.
9. “Brand Building Advertising Concepts and Cases”, TATA Mc. Graw Hill –
2001 by Parameshwaran,, ISBN-13-978-0-07-022394-3, ISBN-10-0-07-
022394-7
10. Rebekah Bennett &Liliana Bove: "Identifying Key Issues for Measuring
Loyalty”, Australian, Asian Journal of Market Research,(2002)

Annexure:

Impact of Brand Perception and Awareness On Consumer Buying Behavior

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Impact of Brand Perception and Awareness On Consumer Buying Behavior

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IMPACT OF BRAND PERCEPTION AND AWARENESS ON

CONSUMER BUYING BEHAVIOR

Ms. PAYAL KAMTE

Under the Guidance of

PROF. NIRAV TAWADIA

PRAHLADRAI DALMIA LIONS

Prahladrai Dalmia Lions College of Commerce &

PROF. NIRAV TAWADIA

Date of Submission: APRIL 2022

(Ms. PAYAL KAMTE)

PROF. NIRAV TAWADIA

I would like to acknowledge the following as being idealistic channels and

Ms. PAYAL KAMTE

PAPER PRESENTATION CERTIFICATE

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 1

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 2

IMPACT OF BRAND PERCEPTION AND

Branding is the process of creating a strong, positive perception of a company,

WHY DO WE NEED TO DO BRANDING? (IMPORTANCE OF

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 4

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 5

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 6

connected to your company. Branding allows you to build relationships with

Meaning of Brand Perception

Customers, not companies, own brand perception. Brand perception is what

When a brand delivers, or exceeds customer expectations, it has the potential to

Visual: Instantly-recognisable logos (Nykaa, Purplle, BMW, Nestle, Cadbury,

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 7

Brand awareness is a marketing term that describes the degree of consumer

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 8

Brand Awareness vs Perception:

1. Have consumers heard of our brand?

2. What do consumers think about our brand?

➢ To determine whether or not consumers have heard of your brand,

It refers to repeated purchase of a particular product or brand by the consumer.

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 9

Brand Equity and Brand Loyalty:

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 10

1. Performance of the product

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 11

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 12

UNDERSTANDING CONSUMER BUYING BEHAVIOUR

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 13

● Consumers go through 5 stages in deciding to purchase any goods or

● 5 Stages of the consumer decision process (buyer decision process)

1. Problem Recognition or Need Recognition.

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 14

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 15

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 16

Consumers deploy various variables to perceive the quality of a product. These

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 17

Customer perception definition: “Marketing concept that encompasses a

Why is Customer Perception Important?

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 18

Factors Influencing Customer Perception

Customer perception can be influenced by external factors, some of which are

1. Personal experience - Customer perception is highly influenced by the

IMPACT OF BRAND PERCEPTION AND AWARNESS ON CONSUMER BUYING BEHAVIOUR Page 19

CONSUMER BUYING BEHAVIOUR RELATED TO COSMETIC