An Empirical study on Factors Influencing Purchase Decision of L'oreal Paris Cosmetic Products in Pune City 1 Prof.Nanda Das, 2 Dr.Vaibhav Patil, 3 Dr.Ganesh Waghmare 1 Assistant Professor, Sri Balaji University Pune‘s Balaji Institute of International Business, Pune, (Maharashtra), India 2 Assistant Professor, Sri Balaji University Pune‘s Balaji Institute of Management and Human Resource Development, Pune, (Maharashtra), India 3 Assistant Professor, Sri Balaji University Pune‘s Balaji Institute of Management and Human Resource Development, Pune, (Maharashtra), India Abstract: The market size of the cosmetics industry in India is estimated to be worth more than US$ 6 billion out of global market of USD 274 billion. Market is expected to register annual growth of 25 per cent touching USD 20 billion by 2025. The study is carried out to find out factor influencing Purchase Decision of customers of L'Oreal Paris cosmetic products. Research was exploratory in nature. Research was carried out in Pune city. Population was divided into representative areas, representative hundred sample size decided and responses were collected. simple percentage analysis, frequency, cross-tab graph, charts were used for simple data analysis & factor analysis, Chi square, & regression SPSS test were used for the hypothesis testing Brand image, Celebrity endorsement, Quality, Price, Professional Consultation, Discount have significant influence on the buying decision of customers of Loreal paris products. TV advertisement and social media were the major source of information. Makeup segment and skin care segment had major customers. Products related to face fairness and skin care air were in major demand. Customers are satisfied with the products and services of L'Oreal Paris. Majority of the customer has good experience with the quality of the L'Oreal Paris products and would like to recommend to others. Keywords: L'Oreal Paris, cosmetics, Beauty products, Brand image, Price, Professional consultation, Skincare products, Purchase Decision. Mukt Shabd Journal Volume IX, Issue VIII, AUGUST/2020 ISSN NO : 2347-3150 Page No : 326
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An Empirical study on Factors Influencing Purchase Decision of L'oreal Paris
SPSS software tools: - Chi square, Regression and Factor Analysis
Mukt Shabd Journal
Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 330
Reliability Test:
Reliability Testing: Cronbach's Alpha is designed as a measure of internal consistency of items in
the questionnaire. Reliability was tested using Cronbach's Alpha and it found excellent having
.902.
Data Analysis and Interpretation:-
The above graph shows that majority of the respondents 33% belong to 25 to 31 age group
followed by 18 to 24 age group 32%, followed by 32 to 38 age group 18%
From the above graph it can be seen that majority of the respondents are doing private job 34%
followed by housewife 30% followed by government job 18% and business is the least observed
occupation
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Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 331
The above graph shows that TV Advertisement 26% was the major source of information for or
L'Oreal Paris beauty products followed by social media 20% followed by friends and family 18%
followed by word of mouth 16% followed by print advertisement 8%
In case of pattern of usage of products by the respondents, majority of respondents are
using L'Oreal Paris products since last one year 29%, followed by in between 1 and 2
year 28%, followed by 2 year -3 year 18%, followed by more than three years 15%
The graph shows that makeup segment it was the major product segment used by respondents
36%, followed by skin care segment 31% followed by fragrance segment 16% followed by Hair Care
segment 10%
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Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 332
Above graph shows that L'Oreal Paris product related to face was majorly used by 27% of the
respondent, followed by skin care 26%, eyes products 16%, followed by lips products 12%
followed by nail enamel 9%
Above graph shows that frequency of buying products - majority of the respondents said that they
are buying L'Oreal Paris products frequently 31%, followed by very frequently buying pattern
28%, followed by somewhat 20%, followed by rarelly 17%
The above graph shows that majority of the customers are bi products worth below 1000 rupees per
month 31%, followed by 1000 to 1500 rupees group, 29%, 1500 to 2000 rupees group, 21%, and
above 2000 rupees group ,19 %
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Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 333
From the above graph it can be seen that majority of the customers has bought L'Oreal Paris beauty
products from General Stores 31%, followed by malls 23%, followed by online shopping platforms
21% followed by Departmental Store 16%
Regarding satisfaction of the customers L'Oreal Paris beauty products majority of the customers are
highly satisfied 42%, followed by satisfied customers 27%, followed by dissatisfied customer 14%,
followed by neutral customer 9%
Regarding L'Oreal Paris beauty products recommendation by the customers to other
people, majority of the customers will strongly agree 38%, followed by, 29%
will recommend, followed by neutral 15%, followed by 12% which will not recommend
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Regarding the quality of the L'Oreal Paris beauty products 45 percent of the customer reported
that the products are best, followed by 27% says it is better, followed by 15% sad it's good, Ud
followed by 7% said bad quality
Reliability
Reliability Statistics
Cronbach's
Alpha
N of
Items
.902 15
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total
Correlation
Cronbach's
Alpha if Item
Deleted
Overall Experience 56.4200 131.741 .329 .904
Advertisement 56.4800 129.060 .401 .902
Price 55.9900 132.636 .696 .899
Offers 55.9900 136.212 .357 .904
Value for Money 56.1200 136.066 .229 .906
Warranty period 56.1300 135.225 .332 .904
Quality 57.1900 108.721 .863 .883
Discount 55.9900 132.010 .756 .898
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Convenience 57.3900 107.230 .826 .885
Availability 57.3900 107.412 .820 .886
Brand image 57.3900 103.695 .939 .879
Variety 55.9900 132.697 .690 .899
Brand Performance 56.2600 138.861 .031 .911
Celebrity Endorsements 57.4100 105.355 .894 .882
Professional Consultation 57.3800 109.127 .857 .884
Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .887
Bartlett's Test of Sphericity Approx. Chi-Square 1279.785
df 91
Sig. .000
Communalities
Initial Extraction
Advertisement 1.000 .649
Price 1.000 .813
Offers 1.000 .731
Value for Money 1.000 .486
Warranty period 1.000 .638
Quality 1.000 .848
discount 1.000 .751
Convenience 1.000 .811
availability 1.000 .787
Brand image 1.000 .910
Variety 1.000 .693
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Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 336
Brand Performance 1.000 .425
Celebrity Endorsements 1.000 .860
Professional Consultation 1.000 .810
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 7.338 52.413 52.413 7.338 52.413 52.413
2 1.834 13.101 65.514 1.834 13.101 65.514
3 1.042 7.440 72.954 1.042 7.440 72.954
4 .918 6.557 79.511
5 .724 5.173 84.684
6 .532 3.803 88.488
7 .478 3.417 91.905
8 .331 2.362 94.268
9 .315 2.250 96.518
10 .163 1.161 97.679
11 .130 .927 98.606
12 .101 .721 99.327
13 .055 .393 99.720
14 .039 .280 100.000
Component Matrixa
Component
1 2 3
Advertisement .355 .130 .712
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ISSN NO : 2347-3150
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Price .808 -.374 -.146
Offers .461 -.718 .057
Value for Money .239 .646 -.107
Warranty period .366 .566 -.429
Quality .914 -.108 -.014
Discount .847 -.182 -.041
Convenience .889 -.146 -.012
Availability .850 .244 .075
Brand image .954 -.008 .025
Variety .744 .350 -.133
Brand Performance .018 .395 .519
Celebrity Endorsements .906 .143 .136
Professional Consultation .898 .013 -.047
On the basis of factor analysis following variables those have high value in communalities table taken
for the study further and applied chi-square crosstab to prove validity and reliability of the hypothesis
the following hypothesis are proven
Factor Analysis :- Interpretation
Factor analysis was carried out for the following variables
Brand image, Celebrity endorsement, Quality, Price, Convenience, Professional
consultation, Availability and Discount.
After factor analysis results those have high value in communalities table taken for the study
further Chi square test is applied on these variables
Following results were observed After applying chi-square test we observed following results P value for brand image is 0.01 which is less than 0.05, so we reject null hypothesis and accept
alternate hypothesis P value for celebrity endorsement is 0.027 which is less than 0.05, so we reject null hypothesis and
accept alternate hypothesis P value for quality is 0.026 which is less than 0.05, so we reject null hypothesis and accept alternate
hypothesis P value for price is 0.026 which is less than 0.05, so we reject null hypothesis and accept alternate
hypothesis P value for professional consultation 0.037 which is less than 0.05, so we reject null hypothesis and
accept alternate hypothesis
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Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 338
P value for professional availability 0.005 which is less than 0.05 so we reject null hypothesis and
accept alternate hypothesis P value for professional discount 0.008 which is less than 0.05 so we reject null hypothesis and
accept alternate hypothesis
Sr.No. Hypothesis Communalities
extraction
values
Pearson Chi-
square value
Status
1 There is significant relationship between
Brand image and Buying decision .910 .001 Alternate
Accepted
2 There is significant relationship between
Celebrity Endorsement and Buying
decision
.860 .027 Alternate
Accepted
3 There is significant relationship between
Quality and Buying decision .848 .002 Alternate
Accepted
4 There is significant relationship between
Price and Buying decision .813 .026 Alternate
Accepted
5 There is significant relationship between
Convenience and Buying decision .811 .026 Alternate
Accepted
6 There is significant relationship between
Professional consultation and Buying
decision
.810 .037 Alternate
Accepted
7 There is significant relationship between
Availability and Buying decision .787 .005 Alternate
Accepted
8 There is significant relationship between
Discount and Buying decision .751 .008 Alternate
Accepted
Findings:-
1) Brand image, Celebrity endorsement, Quality, Price, Professional Consultation, Discount
have p value 0.01, 0.027, 0.02, 0.026, 0.026, 0.037, 0.05, 0.008 respectively which are less
than significant level 0.05 so these variables influence the buying decision of customers of
Loreal paris products positively.
2) TV Advertisement 26% & social media 20% was the major source of information for or
L'Oreal Paris beauty products
3) Majority of respondents 29%, are using L'Oreal Paris products since last one year
4) The makeup segment 36% & skin care segment 31% were the major product segment used
by respondents
5) Product related to face 27% & skin care 26%, were majorly used by L'Oreal Paris
customers
6) Majority of the respondents are buying L'Oreal Paris products frequently 59 %
7) Majority of the customers 50%, buy products worth below 1500 rupees.
8) Majority of the customers has bought L'Oreal Paris beauty products from General Stores 31%
& malls 23%.
9) Majority 69% of the customers are satisfied
10) 67% of the customers will recommend L'Oreal Paris beauty products to other people.
Mukt Shabd Journal
Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 339
11) Overall quality of L'Oreal Paris beauty products is better as reported by the 72 percent of the
customer.
Suggestions:-
1) Brand image, Celebrity endorsement, Quality, Price, Professional Consultation, Discount
should be given preference while making marketing strategy of Loreal paris products
2) It is Suggested Loreal Paris Brand should prefer TV Advertisement social media for their
promotions.
3) Brand should focus more on the makeup segment & skin care segment
4) Brand should focus more on Product related to face & skin care
5) Brand should make available at all the outlets General Stores & malls
6) Brand should develop maximum beauty product range below 1500 rupees per month usage.
7) Brand should use CRM to maintain satisfaction level high against competitors
8) Brand should use maintain overall Quality level high against competitors
Conclusion:-
Brand image, Celebrity endorsement, Quality, Price, Professional Consultation, Discount
have significant influence on the buying decision of customers of Loreal paris products
TV Advertisement social media were the major source of information.
The makeup segment & skin care segment were the major product segment used by
respondents
Product related to face & skin care are in major demand frequency of buying in L'Oreal
Paris products seen more than ordinary unbranded beauty products
Mostly people purchase cosmetics below 1500 rupees.
General Stores & malls are the preferred places to buy the loreal paris products
Customers are satisfied with the brand Loreal Paris
Customers will recommend the brand Loreal Paris to others.
Overall quality of L'Oreal Paris beauty products is better than most of the competitors
Mukt Shabd Journal
Volume IX, Issue VIII, AUGUST/2020
ISSN NO : 2347-3150
Page No : 340
References:-
1. Anand Deshmukh et al. July 2015, "Consumer Buying Behavior towards Cosmetic Products",