Report on “Customers’ Perception towards Imported Cosmetics & Preference towards Different Brands of Shampoo”. It is based on the Study of Advanced Marketing Research course study.
Report on “Customers’ Perception towards Imported Cosmetics & Preference towards Different Brands of Shampoo”. It is based on the Study of Advanced Marketing Research course study.
The report is prepared by Elegant (VI) group.
ReportOn“Customers’ Perception towards Imported Cosmetics &Preference towards Different Brands of Shampoo”(Based on the Study of Advanced Marketing Research)
ReportOnAdvanced Marketing Research (Course: 515)Topic: Customers’ Perception towards Imported Cosmetics &Preference towards Different Brands of ShampooPrepared for:Dr. A. K. Fazlul Haque ShahProfessorDepartment of MarketingFaculty of Business of StudiesUniversity of DhakaPrepared by:“Elegant (VI)”Section: ADepartment of Marketing (14th)Faculty of Business StudiesUniversity of DhakaDate of Submission: 1stDecember, 2012 eng.
Group Profile:“Elegant (VI)”No. Name Roll Designation E-mail Address1 Md. Abdur Rakib 041 Member email@example.com Rumana 087 Member firstname.lastname@example.org Md. Al Amin 089 Member email@example.com Anjuman Ara 139 Member firstname.lastname@example.org Md. Moben Ahmed 151 Member email@example.com Chowdhury Omor Faruque 173 Leader firstname.lastname@example.org
Letter of Transmittal:1stDecember, 2012 eng.Dr. A. K. Fazlul Haque ShahProfessorDepartment of MarketingUniversity of DhakaDear Sir,Here is the report on the topic of “Customers’ Perception towards Imported Cosmetics &Preference towards Different Brands of Shampoo” and the details of research findings that youasked us to conduct.Our study of analyzing as well as learning research contents, problem statement, methodology,designs, scaling, data analysis, interpretation & report preparation for a particular problem willhelp us know about a lot of information to conduct any research.We appreciate your choosing this report submission on research problem. If you need anyadditional information or assistance in the overview of our report regarding the topic, please askus.Sincerely Yours,“Elegant (VI)”Section: ADepartment of Marketing (14th)Faculty of Business StudiesUniversity of Dhaka
Acknowledgement:At first, we would like to thank almighty Allah for having me the opportunity to complete thereport. We also want to thank all the people, who have given their support and assistance andextremely grateful to all of them for the completion of the report successfully. Our lab instructorand classmates provided us with support and guidance for our report to be completedsuccessfully.We would like to thank our honorable course teacher Dr. A. K. Fazlul Haque Shah for hisvaluable time and guidelines.We would also like to thank him for choosing the report and giving us the opportunity to do aresearch report and analysis.
Table of Contents:No. Contents Page No.1 Executive Summary iv2 Introduction 13 Statement of the Problem (IN Case of 1st Topic) 14 Statement of the Problem (IN Case of 2nd Topic) 25 Objective of the study 26 Literature Review 27 Research Design 38 Measurement & Scaling 39 Research Development 4-510 Instruments (Questionnaires) & Forms (In Case of 1st Topic) 5-811 Instruments (Questionnaires) & Forms (In Case of 2nd Topic) 8-1012 Sampling 1013 Data Collection & Fieldwork 10-1114 Data Analysis (In Case of 1st Topic) 11-1215 Data Analysis (In Case of 2nd Topic) 12-1316 Results of Data Analysis 13-1717 Limitations & Scope of the Research 1718 Conclusion 1819 Recommendation 1820 Appendices 19-2221 References 22
Executive Summary:In our Marketing Research Report we have chosen two topics for our research report. One is“Customer Perceptions towards Imported Cosmetics” and the 2nd topic is “CustomerPreference towards Different Brands of Shampoo”. For the 1st topic, we use the regressionmethods to analyze the topic. And for the 2nd situation, we use MDS (Multidimensional Scaling)method to analyze the situation as the 2nd topic is related to measure the customers’ preferenceof different brands.All the group members worked hard to complete the report; we divided our work on the basis ofdifferent tasks. And we tried to work with heart & soul though we have various limitations.The most significant findings of our report are: We find that customers have positive perception towards imported cosmetic product. In our report 40% of variance of dependent variable is explained by the MultidimensionalScaling. Though it is not desirable, it is representative because our sample size is small.The complete set of findings is discussed in details in analysis of the findings part of our report.
Introduction:“A thing of beauty is joy forever”- John KeatsThis poem is written by John Keats. He wrote this poem 200 hundreds years ago. John Keats isno more with us. But we didn’t forget his famous comment about beauty. Some people havegood face others don’t have, whether they are beautiful or not we try to be beautiful buy usingsome products that make us beautiful. Thus, the opportunity comes to us as a marketer to start anew business which makes man and women more beautiful.As a developing nation, unfortunately we don’t have enough technology to use the latesttechnology to use our cosmetic products. So, we have to depend on the quality importedproducts. So, our client decided to import the quality cosmetic product from abroad. Beforeimporting this product he wants to know about the perception about customer to importedgenuine cosmetic product. We believe that Customer is our king”. By Knowing about customers,it will help us to import the right products for right customers. This will be profitable for bothour client and his customers.Statement of the Problem (In Case of 1st Topic):Our client has decided to import the cosmetic product by his agent, who lives in U.S.A. He helpsour clients to supply the original product. From the thousands of product our client needs tochoose some products which is popular in Bangladeshi market. As we wanted to import qualityproduct, so the price will definitely be high. And our customers are upper class. We supply theseproducts initially in Dhaka city in popular shopping mall, super market and cosmetic shop. Wewant to know the customers’ perception about imported cosmetic products and to determinewhether it is profitable or not for our company. That is why we have chosen the topic as“Customer Perceptions towards Imported Cosmetic Products”.
Statement of the Problem (In Case of 2nd Topic):As there are many brands of shampoo exist in our market, it is difficult for our client tounderstand customer preference of different brands of shampoo. He wants to know the customerpreference on different brands that exist in our market. That is why we have chosen the topic as“Customers’ Preference towards Different Brands of Shampoo” in which shampoos are alsoimported for different countries.Objective of the Study:General objective:We wanted to know about customer perception towards imported cosmetic product to determinewhether it is profitable for our clients business or not.Specific objective: Customer brand choice about cosmetic product Where they would like to purchase cosmetic product. Price or quality which impact most before purchasing How many times they purchase cosmetic in a month Positioning of different brand of shampoo in market.Literature Review:Numerous studies will be conducted to measure customer attitudes towards imported cosmeticsand preference of different brands of shampoo. Various factors have been identified that canaffect the customer satisfaction. Customers are usually price sensitive, quality conscious, loyal todifferent brands. But in our country variety of product is not available as there are less researchabout the product, technology limitation, financial problem and shortage of efficient manpowerin this sector. Thus imported cosmetics have a great demand in the marketplace. Especially
women are very much attracted to such kinds of products. Personal marketing (Such as, KatrinaKaif is the brand ambassador of Lux in India) attracted our women to know about the foreignbeauty product and also creating huge demand in the local market. Although company likeUnilever have lots of beauty product but all the product is not imported by the mother companyas the cost is huge or other reason. This is the great opportunity for the local importer. They caneasily imported quality product and using the brand name and no advertisement cost they caneasily familiar with the customer.In cosmetic product industry, there are various issues that appear such as market penetration,price insensitivity, grey market etc. Every marketer has to know the perception of the consumersabout the products they are going to offer. Variety of information must be required to conductthe research such as brand preference, usage volume and rates, quality issues, price issues,product variety etc.We will try to identify conceptual map of customer in purchase decision of imported cosmeticshow favorable attitude customer behavior towards foreign brand and preference of differentbrands of shampoo on the basis of paired comparison. A comparison between national andforeign brand preferences among customers can give an illustrative overview of the topic. In thisregard we will follow Regression Analysis and multidimensional scaling. Through SPSS we willmake concrete illustration of the problem.Research Design:Nature of the Study: The study is quantitative in nature. It uses descriptive research design as itinvolves the survey.Measurements & Scaling:We have followed 5 point Liker scale (1= strongly disagree, 5= strongly agree), multiple choiceand paired comparison for the 2nd topic.
Research Development:We have developed our research by the following way:Conceptual Model (in case of 1st topic)Customer perception is the extent to which quality & price of cosmetics matches customerexpectations. Customer expectations are formed on the basis of their prior experience of usagecosmetics, renowned brand & so on. Customer perception on imported cosmetics includesquality, price, brand name, promotion & usage. These are used as independent variables as theyhave impact on the level of perception of customers.SecondaryDataSelection ofVariablesLiteratureReviewQuestionnairePreparationConductSurveythroughfieldworkPrimaryDataData AnalysisReportPreparationResearch onCustomer’sperception
Independent Variables:Instruments (Questionnaires) & Forms (In Case of 1st Topic):Forms:Questionnaire Form(For academic purpose only)Department of MarketingUniversity of DhakaRespondents’ Personal Information:Name ParticularsSexAgeOccupationLocationEmailPriceBrand NamePromotionUsageCustomerPerceptionIndependentvariableVariableDependentvariableQuality
Questionnaire for the 1stTopic:To conduct the study 30 questionnaire are formed based on the attributes found from theindependent variables. The respondents are given a questionnaire with some attributes to givetheir perceptions on the related issues and the responses will be marked in a 5- point likert scalefrom 1(strongly disagree) to 5(strongly agree) & personal choiceQuestionnaire Which types of cosmetic do you use?1. Indigenous product2. Imported product How often do you use cosmetic product?1. More than once a day2. Once a day3. Less than once a day4. Never Which of these factors do you particularly look for purchasing your cosmetic product?1. Brand I always buy2. Special benefits (e.g. Vitamins, sun protection, natural ingredients)3. Well-known brand4. Cheapest price “Quality is the most important things that I consider”- Do you agree with this statement?Strongly Disagree Disagree Neutral Agree Strongly Agree1 2 3 4 5
“Price is critical in my purchase decision”- Do you agree with the statement?Strongly Disagree Disagree Neutral Agree Strongly Agree1 2 3 4 5 Your purchasing decision is made on the basis of the person marketing (BrandPersonality)”- Do you agree with this statement?Strongly Disagree Disagree Neutral Agree Strongly Agree1 2 3 4 5 Which advertising media do you expose more?a) Televisionb) Newspaperc) Internetd) Magazinee) Billboard Which of the company you favor when you purchasing your cosmetic product?1. Unilever2. Square3. Johnson & Johnson4. P & G5. Garner
When purchasing cosmetic product Halal product is considered most by you – Do youagree with the statement?Strongly Disagree Disagree Neutral Agree Strongly Agree1 2 3 4 5Instruments (Questionnaires) & Forms (In Case of 2nd Topic):Forms:Questionnaire Form(For academic purpose only)Department of MarketingUniversity of DhakaRespondents’ Personal Information:Name ParticularsSexAgeOccupationLocationEmail
Questionnaire for 2nd Topic:To conduct the study 30 questionnaire will be formed based on the attributes found from theindependent variables. Each respondent is given a questionnaire with brands similarity judgment.Questionnaire Please rate the brands in terms of similarity judgment.Similarity JudgmentVerySimilarDissimilar Indifferent Similar VerySimilar1 2 3 4 5All Clear vs. Head & ShoulderAll Clear vs. PanteneAll Clear vs. SunsilkAll Clear vs. DoveAll Clear vs. GarnierAll Clear vs. VatikaAll Clear vs. L’OrealHead & Shoulder vs. PanteneHead & Shoulder vs. SunsilkHead & Shoulder vs. DoveHead & Shoulder vs. GarnierHead & Shoulder vs. VatikaHead & Shoulder vs. L’OrealPantene vs. SunsilkPantene vs. DovePantene vs. GarnierPantene vs. Vatika
Pantene vs. L’OrealSunsilk vs. DoveSunsilk vs. GarnierSunsilk vs. VatikaSunsilk vs. L’OrealDove vs. GarnierDove vs. VatikaDove vs. L’OrealGarnier vs. VatikaGarnier vs. L’OrealVatika vs. L’OrealSampling:The target population for the study includes all of the customers (especially female). To conductthe study convenience sampling has been used as it meets criteria with 30 respondents fromdifferent departments of the Dhaka University.
Data Collection & Fieldwork:Data Collection Method:To facilitate the study, data have been collected by using the approaches illustrated below:Methods of Data Analysis:Data is analyzed by using the regression analysis (in case of 1sttopic) and multidimensionalscaling (in case of 2ndtopic) through SPSS software.Data Analysis (In Case of 1st Topic):Our principal tool is linear regression model which is commonly known as the multipleregression models. The form looks like this:Y= β0 +β1X1 + β2X2 + β3X3 + β4X4 + βkXk + eY=Customer Perceptions.Β0 = Constant (Intercept of the variable).Data forResearchPrimaryDataSurveySecondaryDataWebsiteJournals Periodicals Articles
Β1 = Coefficient of cosmetics quality.X1 = Importance of cosmetics quality.Β2 = coefficient of cosmetics price.X2 = Importance of cosmetics price.Β3 = Coefficient of cosmetics brand name.X3 = Importance of cosmetics brand name.Β4 = Coefficient of cosmetics promotional activities.X4 = Importance of cosmetics promotional activities.e = error.Data Analysis (In Case of 2nd Topic)::We have used multidimensional scaling for comparing the different brands of shampoo on thebasis of different attributes by using following attributes.QualityAttributesPrice
We have performed paired comparison by making comparison on the following brands:a) All clearb) Head & Shouldersc) Pantened) Sunsilke) Dovef) Garnierg) Vatika &h) L’OrealResults of Data Analysis:Regression Analysis:Model SummaryModel R R Square Adjusted RSquareStd. Error ofthe Estimate1 0.460 0.212 -0.143 1.53143a. Predictors: (Constant), Halal Consideration in Purchasing, Frequency of Usage, Types ofCosmetics Used, Purchase decision based on person marketing, Advertising mediaexposure preference, Factors considered for Purchasing, Company favored forpurchasing, Price is critical in Purchase decision, Quality is Most Important.b. Dependent Variable: Customers Positive Perception towards Imported Cosmetics.R= 0.460, R represents the multiple correlation among the variables specified. Here, R = 0.460means positive correlation among the variables.
R2= 0.212 measures the proportion of variation in one variable that is explained by the other. Itmeans that variation in the dependent variable is explained by the independent variables. Here, R& R2are not close to symmetric measures of association.Adjusted R2= 0.212-9(1- 0.212)/20 = -0.143 measures the number of independent variables &the sample size to account for diminishing return.ANOVAModel Sum ofSquaresdf MeanSquareF Sig.1 Regression 12.595 9 1.399 0.597 0.785Residual 46.905 20 2.345Total 59.500 29a. Predictors: (Constant), Halal Consideration in Purchasing, Frequency of Usage, Types ofCosmetics Used, Purchase decision based on person marketing, Advertising mediaexposure preference, Factors considered for Purchasing, Company favored forpurchasing, Price is critical in Purchase decision, Quality is Most Important.b. Dependent Variable: Customers Positive Perception towards Imported Cosmetics.F is significant with 20 degrees of freedom.Here, F =𝑆𝑆 𝑟𝑒𝑔 /𝑘𝑆𝑆 𝑟𝑒𝑠 /(𝑛−𝑘−1)=𝑅2/𝑘(1−𝑅2)/(𝑛−𝑘−1)=.212/9(1−.212)/(30−9−1)= 0.597Null hypothesis is rejected means that one or more partial regression coefficient have a valuedifferent from 0.But to determine which β (s) are nonzero t-test is required.
Independent variables like Halal Consideration in Purchasing, Frequency of Usage, Types ofCosmetics Used, Purchase decision based on person marketing, Advertising media exposurepreference, Factors considered for Purchasing, Company favored for purchasing, Price is criticalin Purchase decision, Quality is Most Important are significant in t-test. That means thesevariables have values of nonzero and there are linear relationship between X & Y.CoefficientsModel UnstandardizedCoefficientsStandardizedCoefficientst Sig.B Std.ErrorBeta1 (Constant) 5.978 2.781 2.150 .044Types of Cosmetics Used .476 .764 .159 .622 .541Frequency of Usage .107 .553 .048 .194 .848Factors considered for Purchasing -.360 .529 -.175 -.682 .503Quality is Most Important -.657 .559 -.390 -1.176 .253Price is critical in Purchase decision .027 .338 .024 .080 .937Purchase decision based on personmarketing-.302 .289 -.275 -1.046 .308Advertising media exposurepreference.055 .355 .036 .154 .879Company favored for purchasing -.270 .263 -.257 -1.026 .317Halal Consideration in Purchasing .465 .413 .361 1.126 .273
From the testing for significance of the Partial regression coefficients (βi’s), Halal Considerationin Purchasing, Frequency of Usage, Types of Cosmetics Used, Advertising media exposurepreference & Price is critical in Purchase decision are important in explaining “CustomersPerception towards Imported Cosmetics”.On the other hand, Factors considered for Purchasing, Quality is Most Important, Purchasedecision based on person marketing &Company favored for purchasing are not important inexplaining “Customers Perception towards Imported Cosmetics”.The estimated model can be illustrated as the following:Ŷ (Customers Positive Perception towards Imported Cosmetics) = 5.978 (Constant) + .476(Types of Cosmetics Used) + .107 (Frequency of Usage) + (-.360) (Factors considered forPurchasing) + (-.657) (Quality is Most Important) + .027 (Price is critical in Purchase decision) +(-.302) (Purchase decision based on person marketing) + .055 (Advertising media exposurepreference) + (-.270) (Company favored for purchasing) + .465 (Halal Consideration inPurchasing)On the basis of these models, “Customers Positive Perception towards Imported Cosmetics”shows 3.5. It means that customers have positive perception towards the imported cosmetics.
MDS (Multidimensional Scaling) Analysis:We have labeled horizontal axis as quality and the vertical axis as Brand Image. Positive largevalues of horizontal axis denote higher in quality and negative values denotes lower in quality.On the other hand, positive large values of vertical axis denote high brand image and negativevalues denotes low brand image of that product.In the horizontal axis, Head & Shoulder, Garnier and Pantene are with positive value. It indicatesthat Head & Shoulder, Garnier and Pantene are very high quality brands of shampoo. Head &Shoulder is a leading brand on quality dimension and Garnier is the close competitor competingon quality according to customers’ preference. Pantene is also good at quality but the brandimage is not so strong according to the perceptions of customers. On the vertical axis, Clear,Sunsilk and Dove are on negative sides. It indicates that the brand image of Clear Sunsilk andDove are not good according to customers’ preference. On the other hand, Vatika, L’Oreal are onpositive side of the vertical axis. It indicates that the brand image of Vatika and L’Oreal aregood.
For the matrix,Stress = .26547 RSQ = .40216Here, RSQ indicates that 40% of variance of dependent variable is explained by theMultidimensional Scaling. Though it is not desirable, it is representative because my sample sizewas small.Limitations & Scope of Research: Lack of expertise is one of the major barriers in conducting the study. Besides, this study hasbeen conducted only on the basis of regression analysis that might include other techniques. Questionnaire may not be well developed to identify the underlying influences. Sample size of 30 may not be representative of the total users of cosmetics products. Those who are interested will find this field more attractive as there is great number ofrespondents to provide the valuable information needed. It offers available opportunities forthe researchers to work with this field that will help increase the quality of domestic cosmeticproducts. We will not use more than 30 samples of respondents as it will costs for us more. We may need one month to conduct the research on customers. Because surveying customersusing questionnaire, analyzing the data and preparing the total project will requireconsiderable time.
Conclusion:Cosmetic product is very much demandable product in Bangladesh. The prospect of this productis lucrative. But the businessmen should be careful about the quality assurance of the product.And they should also choose the right brand which helps them to profit in the marketplace. Asour client is also a importer of cosmetic product he should follow the following factors. We arevery much sure that following those factors are helping our clients to do well in this business.Recommendation:The report finds following recommendation:1) Our client should import the Halal product as the most of the respondent given preferencein this issue.2) In advertising personal marketing is important. The customer is greatly influence by thepersonal marketing. So our clients need to advertise by the celebrities of his product.3) Quality is most important in comparison of price in cosmetic product. So the qualityshould be given more priorities than the price by our clients.
Appendices:Statistical Output (In Case of 1st Topic):Descriptive StatisticsVariables Mean Std. Deviation NCustomers Positive Perception Towards Imported Cosmetics 3.5000 1.43238 30Types of Cosmetics Used 1.6667 .47946 30Frequency of Usage 1.7333 .63968 30Factors considered for Purchasing 2.0000 .69481 30Quality is Most Important 4.3667 .85029 30Price is critical in Purchase decision 3.4000 1.24845 30Purchase decision based on person marketing 3.4667 1.30604 30Advertising media exposure preference 1.5667 .93526 30Company favored for purchasing 3.0667 1.36289 30Halal Consideration in Purchasing 3.9333 1.11211 30Residuals StatisticsMinimum Maximum Mean Std. Deviation NPredicted Value 2.4268 4.6984 3.5000 .65901 30Residual -2.16337 2.53594 .00000 1.27178 30Std. Predicted Value -1.628 1.818 .000 1.000 30Std. Residual -1.413 1.656 .000 .830 30
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