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Abstract
The aim of this research is to find out the customers brand preference regarding cosmetics in
Khulna City. We have found that 4 factors are to be correlated with brand preference based on
the response from 384(100) individuals such as student, housewife, service holder and
businessman in Khulna City. Regression results showed that Brand Image, Price and
Satisfaction have positive impact on the Brand Preference. Promotion, Fashion consciousness
and Quality have negative impact. Brand Image and Price are statistically significant. Fashion
Consciousness, Quality, Promotion, and Satisfaction are statistically insignificant.
Key Word: Brand Preference, cosmetics, Khulna City.
1. Introduction:
Brand preference has a strong influence on customer’s buying decision. Brands are important in
every part of our lives (Bhatti, Parveen, & Arshad, 2011). In most of time they are well known
about what product they are buying & for what purposes. Consumers almost always approach the
market place with a well-established set of tastes and preferences (Hoyer & Brown, 1990).
Attractive appearance is very important for both men and women. Now people are willing to
spend big amount of money for taking care the beauty of face and skin by buying trusted
cosmetics. More people are capable and willing to pay more for high quality products, especially
who wants to look attractive by using cosmetics. The history of cosmetics spans at least 6,000
years of human history, and almost every society on earth. Cosmetics are, therefore, products
intended to be applied to the human body for cleansing, beautifying, promoting attractiveness or
altering the appearance without affecting the body's structure. This broad definition includes any
material intended for use as a component of a cosmetic product.
Cosmetics which are available in Khulna market ranged from local products and imported
products. Bangladesh is rich with natural materials that are used by Bangladeshi entrepreneurs to
make local cosmetic products. Since it is made from our nature, it fits with the skin condition of
Bangladeshi people. Unfortunately, the dependency Bangladeshi people on foreign cosmetic is
increasing day by day. Imported cosmetic brands are available in Bangladeshi market. It is
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predicted that 60% of Bangladeshi cosmetic products is dominated with imported cosmetics, and
not even including the illegal imported products which approximately in high number as Indian
border near in Khulna.
After 1996, many Bangladeshi women have been crowned at international beauty pageants
which corresponded with an increase on focus on the cosmetics industry. Gradually there has
been a change in consumption of cosmetics and so the sector has been growing& within few
years the Bangladeshi cosmetics industry has experienced rapid growth. Along with media is
playing an important role in spreading awareness about the various products available and in
developing fashion consciousness among the Bangladeshi consumers.
Now people of Khulna City become more aware about their skin. They want to use branded
cosmetics because it is very sensitive issue. Not only foreign products are branded, there are
some few domestic branded cosmetics. But most of cases customers can’t depend or trust on
domestic branded product. Sometimes customers buy branded cosmetic to gain social value. So
there are many reasons or factors are working behind customer’s brand preference in cosmetic.
They want to pay premium price for buying those branded cosmetics.
This paper provides an overview of the brand preference of Khulna City women’s buying
behavior concerning branded cosmetics. This study will provide useful information to the
preference of branded cosmetics in Khulna City.
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2. Literature Review:
Khulna is the 3rd largest city in Bangladesh after Dhaka and Chittagong. Often referred to as
Industrial City, it is one of the important industrial and commercial areas of the country. The
population of the city (under the jurisdiction of the City Corporation) was 1,000,000 in 2007
estimation. Its population is 2,318,527 according to the census of 2011.
Several shopping malls and centers including New Market, Khulna Shopping Complex, Jalil
Tower, Akhtar Chamber, Haji Malik Chamber, SMA Rab Shopping Complex, Esha Chamber,
Shahid-Suhrawardi Market, Railway Biponi Bitan, Darbes Chamber, Mina Bazar, Aarong, Rang,
and Safe & Save have been offering different types of cosmetics. This rapid growth in cosmetics
sales and market in the Khulna City grabs the attention of beauty and skin care companies
throughout the World.
Brand is a distinguishing feature of a product and is often important to customers purchasing the
product. For example, although customers may be satisfied with the functional value of the
product, if the brand is not their favorite, some customers may not purchase the product again
(Aaker, 1996; Pitta & Katsanis, 1995; Steenkamp, Batra, & Alden, 2003). For that reason, many
studies have examined diverse concepts of brand such as brand associations (e.g., Chen, 2001;
Xu & Chan, 2010), brand attitudes (e.g., Chang & Chieng, 2006; Suh & Yi, 2006), brand
credibility (e.g., Kim, Morris, & Swait, 2008), brand equity (e.g., Keller, 1993; Washburn &
Plank, 2002), brand experience (e.g., Brakus, Schmitt, & Zarantonello, 2009; Schmitt, 2009),
brand identification (e.g., Bergkvist & Bech-Larsen, 2010; Kuenzel & Halliday, 2008), brand
image (e.g., Martinez, Polo, & Chernatony, 2008; Meenaghan, 1995), brand loyalty (e.g.,
Kressman et al., 2006; Lee & Back, 2010), brand personality (e.g., Aaker, 1997; Louis &
Lombart, 2010), and brand value (e.g., Chu & Keh, 2006; Johansson & Nebenzahl, 1986).
Brand preference is the extent to which the customer favors the designated service provided by a
certain company, in comparison to the designated service provided by other companies in his or
her consideration set (Hellier et al., 2003, p. 1765). Customers form brand preferences to reduce
the complexity of the purchase decision process (Gensch, 1987). The process of forming brand
preference involves, first, being exposed to many brands, followed by a complex purchase
decision process. Customers often delete some product brands from their memory; then, among
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remaining brands of products, customers memorize the brands of products they would consider
purchasing in the future (Roberts & Lattin, 1991).
Image is defined as the sum of all thoughts, associations of ideas which are connected with the
person to a particular product, brand, company, and person. We can distinguish three main types
of image: The perceived image is the common interpretation of images, and is the picture the
Target group is having about the brand. This is the most important type for marketing persons.
The desired image is equal to positioning in marketing practices. It is a strategic Intention
according to which the perceived image has to be positioned in the range of consumers idea in
the way the company wants, all this distinctively from the competitor brand’s image.
Duff (2007) investigated the niche market in women’s cosmetics and observed that cosmetics
buyers were becoming more fashion conscious and were demanding products with more
attractive design; furthermore, consumers have a tendency to use different makeup designs for
different occasions. It is further argued that design or visual appearance is the important part of
the product, which includes line, shape and details affecting consumer perception towards a
brand.
Cadogan & Foster (2000) argued that price is probably the most important consideration for the
average consumer. Consumers with high brand loyalty are willing to pay a premium price for
their favored brand, so their purchase intention is not easily affected by price. In addition,
customers have a strong belief in the price and value of their favorite brands, so much so that
they would compare and evaluate prices with alternative brands (Keller, 2003).
Promotion is a marketing mix component, which is a kind of communication with consumers.
Promotion includes the use of advertising, sales promotions, personal selling and publicity.
Advertising is a non-personal presentation of information in mass media about a product, brand,
company or store. It greatly affects consumers’ images, beliefs and attitudes towards products
and brands, and in turn, influences their purchase behaviors (Lovelock, 2010). This shows that
promotion, especially through advertising, can help establish ideas or perceptions in the
consumers’ minds as well as help differentiate products against other brands. According to Clow
(2010), promotion is an important element of a firm’s marketing strategy. Promotion is used to
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communicate with customers with respect to product offerings, and it is a way to encourage
purchase or sales of a product or service.
Product quality embraces the features and characteristics of the products that can satisfy the
consumers’ needs and wants (Kotler& Armstrong, 2010).It is stated by Goetsch & Davis (2005)
that quality can be measured. Product quality can be measured by concerning the materials,
color, functional quality and the endurance of the products (Khraim, 2011).
Materials for cosmetics really affect the healthiness of the skin. Further, the color is also
important as one of the aspect to measure the quality of the product. Every consumer has their
own preference of color which makes color as one of the consideration to buy cosmetics. Some
of the functional quality in cosmetics consists of quick-dry, breathable, waterproof, lightweight,
and durability (Khraim, 2006).
Satisfaction is the fulfill response to customer about the service and product (Oliver 1997).
Levesque and McDougall (1996) explored that satisfaction is conceptualized as an overall,
customer attitude towards a service provider. Andreessen and Lindestad (1998) explored that
customer satisfaction is the accumulated experience of a customer’s purchase and consumption
experiences. It was therefore; client satisfaction constructs in this paper will be measured through
the overall satisfaction. According to Kumar, Kee and Manshor (2009) high quality of service
can result in high customer satisfaction and increases customer loyalty. Thus customer
satisfaction is the outcome of service quality (Parasuraman, Zeithaml & Berry 1988, Naeem &
Saif 2009).
In our research we have identified six factors of Brand preference and they are brand image,
fashion consciousness, price, promotion, product quality, satisfaction.
3. Objective
• To find out the customers brand preference regarding cosmetics in Khulna city.
• To identify the factors underlying brand preference and their buying behavior in Khulna
City.
• To establish the cause and effect relationship between brand preference and buying
behavior.
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4. Research Model & Hypotheses
After looking at the literatures & objectives, we have pointed the following hypotheses and
statistical model:
H1 There is a significant relationship between cosmetics brand image and brand
preference.
H2 There is a significant relationship between customer fashion consciousness and
brand preference.
H3 There is a significant relationship between cosmetics price and brand preference.
H4 There is a significant relationship between cosmetics promotion and brand
preference.
H5 There is a significant relationship between product quality and brand preference.
H6 There is a significant relationship between satisfaction and brand preference.
According to the existing literature the conceptual in this study is shown in figure
5. Research Methods:
Our research design is causal research. We have taken Quota Sampling that is non probability
methods of sampling for the 384(100) individuals. Here manipulation of dependent variable is
brand preference with the control of independent variables are brand image, fashion
consciousness, price, promotion, product quality and satisfaction. We have measured these
factors by close ended question.
5.1. Sample and Data Collection:
Our research’s data gathered through personal administered questionnaire. As our population is
2,318,527 according to the census 2011 in Khulna. We have chosen 384(100) individuals by the
following formula and the table have given in the appendix part. This formula is the one used by
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Krejcie & Morgan in their 1970 article.
We have followed non probability sampling (Quota sampling). We have divided these
individuals into 4 categories. We have collected data from potential respondents in randomly
selected student, housewife, service holder and businessman in Khulna City. We, four members
have visited in different university in Khulna (Khulna University, Northern University and Azam
Khan Commerce College), homes and workplaces of the sample group to collect the data from
June to July 2014. A total of 384(100) survey forms have distributed to the 384 (100) individuals
and all 384(100) have collected. We have collected our data from 50% male and 50% female.
The response rate is very high due to the fact that we have pursed all the respondents personally
and motivate respondents to participate in the survey. We have used SPSS 16.0 for basic
statistical analysis (Chi-square, Cronbach Alpha,T-test, Correlation & Regression).
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5.2. Definition and Measurement of Variables
We have summarized the operational definition and measurement of variables for validation of
the research hypotheses. We have adjusted variables by using the results of a personal interview
of individuals.
Table 1: Operational Definition and Measurement of Variables
Variable Operational Definition Measurement items
Brand Preference Preference of Branded
cosmetics
• Distinguishing feature
• Advertisements
• Favorite Brand
• Consistency of
performance
Brand Image Creation of image and brand
identity
• Functional value of Brand
• Distinctiveness of Brand
• Brand experience
Fashion
Consciousness
Fashion consciousness and
acceptance
• Attractive design
• New designs
• Changing fashions
Price Value positioning of brands or
products.
• High brand loyalty
• Favored brand
• Price tolerant
• Judgments of offer
Promotion Kind of communication with
consumers.
• Modes of Advertising
• Acceptances on Sales
Promotion
• Personal Selling
Product Quality Characteristics of the products
that can satisfy the consumer’s
needs and wants.
• Materials
• Colors
• Functional Quality
• Endurance of Products
• Feature of Products
Satisfaction Customer reaction to the state
of satisfaction and customer’s
judgment of satisfaction level.
• Consumption Experience
• Availability
• High Product Quality
• High service Quality
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We think brand preference depends on the brand image, fashion consciousness, price, promotion,
product quality and satisfaction. These are the independent variable and our dependent variable
is brand preference. Each item has based on five points Likert Scale (1) Strongly disagree, (2)
Moderately disagree, (3) Agree, (4) Moderately agree and (5) Strongly agree.
5.3. Reliability:
Reliability is the consistency of result when the research object has been repeatedly measured.
We have measured reliability by using Cronbach’s alpha methodology based on internal
consistence. The reliability analysis of each factor has performed after eliminating measurement
items that lower the overall reliability, produced the following results: brand preference
.674,brand image .723,fashion consciousness .460,price .725,promotion .720,product quality.752
and satisfaction .608.Cronbach Alpha value for all factors is (∝>.613),indicating satisfactory
reliability level of internal consistency is (∝>.60).
Brand Preference Factors Number of Items Cronbach’s Alpha Value
Brand Image 5 0.723
Fashion consciousness 5 0.460
Price 6 0.725
Promotion 7 0.720
Product Quality 5 0.752
Satisfaction 6 0.608
6. Results of Hypotheses tests:
6.1: Independent T-test:
The Levene’s test reveals that F statistics is significant (p<0.05). The bottom row (Equal
Variances not assumed) is appropriate for explaining whether difference in opinions lies between
male and female consumers on Brand Preference and Brand Image. Bottom row shows that null
hypothesis (H01) is not significant (p >.05). It signifies that the hypothesis is true, thus accepted.
It is concluded that there is no difference in the perception of male and female consumers on
Brand Preference and Brand Image. (Figure 1)
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The Levene’s test reveals that F statistics is significant (p<0.05). The bottom row (Equal
Variances not assumed) is appropriate for explaining whether difference in opinions lies between
male and female consumers on Brand Preference and Brand Image. Bottom row shows that null
It is concluded that there no difference is found in the perception of male and female consumers
on Brand Preference and Brand Image. (Figure 2)
The Levene’s test reveals that F statistics is not significant (p>0.05). The upper row (Equal
Variances Assumed) is appropriate for explaining whether difference in opinions lies between
male and female consumers on Brand Preference and Price. Bottom row shows that null
on Brand Preference and Price. (Figure 3)
male and female consumers on Brand Preference and Promotion .Upper row shows that null
on Brand Preference and Promotion. (Figure 4)
male and female consumers on Brand Preference and Quality. Upper row shows that null
It is concluded that there no difference is in the perception of male and female consumers on
Brand Preference and Quality. (Figure 5)
male and female consumers on Brand Preference and satisfaction. Upper row shows that null
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It is concluded that there is no difference is found in the perception of male and female
consumers on Brand Preference and Satisfaction. (Figure 6)
6.2: Regression:
This study combined six cosmetics variable into one regression, to see the overall effect on brand
preference. The result in the table shows that of the six hypothesized relationships, two are
significant (p<0.05) and four are non-significant (p>0.05).
This model explains 53.1% (R2
=.531) variation of Brand Preference. Still 46.9% variation is not
measured. So, Brand image, Fashion Consciousness, Price, Promotion, Quality, Satisfaction
(Independent Variables) are not capable enough to measure Brand Preference (Dependent
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .729a
.531 .501 .47386
a. Predictors: (Constant), satis, price, fashion, Image, quality,
promotion
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 1.594 .516 3.088 .003
Image .475 .067 .594 7.130 .000
fashion -.087 .103 -.075 -.848 .399
price .335 .096 .289 3.503 .001
promotion -.207 .134 -.148 -1.551 .124
quality -.117 .110 -.095 -1.058 .293
satis .168 .113 .131 1.477 .143
a. Dependent Variable: Brand
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Variable) of 46.9%. This table also indicates that brand image and price are statistically
significant (p<.05) in determining the preference for brand in Khulna. So, null hypothesis is
rejected and there is relationship among Brand preference and Brand Image, Price. This table
also indicates that Fashion Consciousness, Promotion, Quality and Satisfaction are not
statistically significant (p>.05).So, null hypothesis is accepted and there are no relationship
among Brand Preference and Fashion Consciousness, Promotion, Quality, Satisfaction.
Regression results showed that Brand Image, Price and Satisfaction have positive impact on the
Brand Preference. Promotion, Fashion consciousness and Quality have negative impact.
This table also indicates that Brand is statistically significant (p<.05). Null hypothesis is rejected.
As (p<.05), so, the data fit the model well.
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6.3: Anova:
H0: There is no difference between genders on Brand Preference having different occupations.
H1: There is difference between genders on Brand Preference having different occupations.
Table shows that (p<.05) null hypothesis rejected. So there is a difference between genders on
Brand Preference having different occupations. Respondents have different occupation and
gender, so their brand preference is also different.
ANOVA
Brand
Sum of Squares df Mean Square F Sig.
Between Groups 7.307 3 2.436 6.285 .001
Within Groups 37.207 96 .388
Total 44.514 99
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Gender * occupation 100 100.0% 0 .0% 100 100.0%
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6.4: Chi-Square:
H0: There is a no relationship of gender and occupation.
H1: There is relationship of gender and occupation
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 5.921a
3 .116
Likelihood Ratio 5.988 3 .112
Linear-by-Linear Association 4.209 1 .040
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum
expected count is 6.50.
Table shows that (p>.05) it is statistically insignificant. So, null hypothesis is accepted. So, there
is no relationship of gender and occupation.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .243 .116
Cramer's V .243 .116
N of Valid Cases 100
Table shows that (Phi=.243).The relation between gender and occupation is very weak.
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7. Conclusion:
This research framework for this study relied on the six practices as identified in various past
research namely Brand Image, Fashion Consciousness, Promotion, Price, Product Quality, and
Satisfaction. Based on the result of the study only the brand image is found to be correlated with
Brand preference. These results indicate that 5 factors are not likely to influence the brand
Preference. In conclusion we can say all six factors affect the Brand preference positively or
negatively. From this result, it can be concluded that this study has achieve its main objective,
which is Brand Preference on cosmetics in Khulna City.
8. Limitations and Recommendation:
Even though all the possible cautions are maintained during planning of study and selection of
methods and techniques, the study is not free from limitations. The study will be confined only in
Khulna and sample size is small.Moreover, the sample is drawn on non probability sampling and
it may not represent entire population. We have to survey on 384 respondents according to figure
11 but we take only 100 respondents. And some respondent don’t want to share their personal
information to anyone. Further analysis is needed to determine the appropriate factors of Brand
Preference in Khulna City.
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