Consumer Decision-Making In Participatory Digital Culture

Overview of the Industry Partner

Discuss about the Consumer Decision Making In The Participatory Digital Culture.

A consumer is one who purchases and uses products. Consumers demand a variety of products depending on their tastes and preferences, which vary with time. A consumer’s tastes and preferences can also be determined by psychological and ecological factors. Therefore, promotional activities function to influence the taste and preference of the choice of the consumer (Sharma, 2009). Promotions involve massive publicity of items. Promotional activities focus on creating awareness of the use and advantage of products to consumers. Through such activities, products are made available to those interested, and this meets the desires of the advertiser thus increasing sales (Moriarty et al., 2014). Consumers are usually rational concerning their purchases and wish to optimize their satisfaction of consumer products (Sharma, 2009). Solomon et al. (2014) defines consumer behavior as the conduct that is exhibited by a consumer in seeking for the purchase, use, assessment and dispose of services or products he/she expects to meet the needs. Consumer behavior encompasses what consumers purchase, the reason, the period, the place of purchase, the manner of acquisition, the frequency of the item’s or service use, how to assess it after buying and the effect of such an assessment, and how they dispose of it (Lantos, 2015).

 Natio Cosmetics, Australia is an Australian family business that manufactures beauty products for skin care and other cosmetics both domestic and international market. The company was founded by Max and Viviane Ross and has been in operation for the last 75 years. Natio Cosmetics is one of the cosmetic giants in the Australian market in the production of natural beauty products, and its products have been rated as one of the best performing skincare and make-up brands in the pharmaceutical sector of Australia. The organization is on the move with a definite goal of delivering plant-based, smooth and straightforward beauty treatments that are flexible and can meet the current assorted lifestyles. The company believes that none should lower standards when dealing with cosmetics and skincare, and as a result, they have developed a quality beauty care system that is economical to everyone. The organization is determined that consumers expense majorly on the product and not for expensive advertisements and packaging (Natio, no date).

Promotion or advertisement has been researched from various perspectives for decades. According to (Sharma, 2009) individuals and organizations were disinterested with advertisements in the 19th century because most of the increase in the sales of beauty products than was attributed to other aspects such as taste, period of use of the products and the readiness of the consumer to shift between products (Tellis, 2009). This prompted numerous research, especially in the cosmetics industry.

Problem Statement

The research by de Magistris and Gracia (2008) on the cosmetics industry of Mexico showed that strategic product positioning and active retailing influence the perceptions of the consumers and assist in the development of long-term consumer attitude towards the brand. Lu and Yu-Jen Su  (2009) found out that the consumer’s selection of mobile phones was influenced by social, cultural and personal factors. The author also singled out peer pressure to play a prominent role in controlling the purchase behavior of telephone handsets by students.

The conflicting research findings on the impact of promotional activities on consumer behavior was the basis for the problem of this research. Thus, the researcher sought solutions for how promotional activities influence consumer behavior with a par, particular focus on the cosmetics industry. The researcher chose cosmetic products as a case study because they fulfill the settings of products on which they are effective to advertise. The Australian cosmetics industry comprises several differentiated cosmetic commodities which accomplish the same objective. Hence, this study seeks to ascertain the impacts of promotional activities on consumer buying behavior of cosmetic products with a case study of Natio Cosmetics, Australia.

The general aim of this study was to find out the influence of promotional activities on consumer buying behavior with a specific focus on Natio Cosmetics, Australia.

1.    What kind of promotional activities are used by Natio Cosmetic Brand for attracting customers?
2.    What issues are the company facing in developing attractive promotional features?
3.    What are detrimental factors resulting in a decline in sales in the organization?
4.    How is the customer purchase intention influenced by the company’s activities?
5.    What improved steps can the organization adapt to increase sales and overcome promotional challenges?

This study comprises of five chapters. The first chapter includes an introduction, problem of research, and study aim. The literature review is in section two; chapter three comprises of research methodologies used in the study. Chapter four provides the findings and subsequent justifications in and evaluation whereas chapters five and six provide discussions and recommendations respectively. Finally, the seventh chapter offers research conclusions and recommendations.

This chapter involves a review of the theoretical literature, empirical literature, research gap and conceptual framework.

The objective of promotional activities makes the consumer aware of the organization’s product. The promoter has to therefore carefully choose the medium which will increase the chances of reaching the target market. This calls for an analysis of the most common media used by the target consumers (Nelson-Field and Riebe, 2011). Promotional help in not only creating awareness but also developing an interest in the product by the consumer. This is usually achieved by exposing the consumer to the benefits of the product and being presented as the solution to a problem. Through awareness, the number of consumers who are likely to buy the product is maximized due to the exposure to promotional activities (Butler, 2013).

Research Aim

Promotional activities like advertising serve to arrest the consumer’s attention to a given product to influence their purchase decision (Lundqvist et al., 2013).  This is attained through providing relevant information to the consumer, like the rewards of the product to the consumer. The advertisement uses different creativity to share the same information but from a new light such as the use of humor, celebrities among others. However, care should be exercised in the use of celebrities to ensure that there is integration and that the focus doesn’t shift to the creative device but the intended message reaches the target consumer (Gurun and Butler, 2012).

Bian and Forsythe (2012) divide message appeals into rational and emotional. Emotional appeals are geared towards the development of positive feelings and create an individual brand, whereas rational appeals are built on facts about the product. Promotional activities often use emotional appeals because studies have proved them to be most effective (Micu and Plummer, 2010). This is because the attitudes of the consumers towards a product will significantly affect their purchase decision and yet positions are based on emotions. Thus promotional activities use this strategy to make products appealing by influencing the consumers’ attitudes.

Rani (2014) defined culture as “the intricate symbols and artifacts created by a given society and passed down from generation to generation as determinants and regulators of human behavior”. Each culture comprises smaller subcultures or categories of people with a typical value system based on universal life experiences and circumstances. For example nationalities, religions, racial groups, etc. (Horner and Swarbrooke, 2016).

 Lee and Kacen (2008) researched the influence of culture on consumer buying behavior and found out that culture substantially affects consumer buying behavior at all its levels be it ethnicity or personal level. The study outcomes also demonstrated that culture affects both individual and corporate behavior towards a product. According to Nayeem (2012) culture is so powerful because an individual would like to conform to it when seeking approval, status, and belonging. De Mooij (2010) observes that there exist essential cultural differences across the globe and therefore it’s fatal for marketers to assume of cultural uniformity while making marketing strategies.

According to Kotler (2012), social factors that affect consumer buying behavior can be grouped into three: family, reference group and social class. Engels (2010) defines family as a social group that is made up of a minimum of two individuals that reside together due to marriage or relationship. The family unit shapes views, values, and attitudes of its members, be it children, husband or wife (Kotler, 2012). Furnham and Gunter (2008) note that children influence the purchase decision of the parent in electronic products, snacks, and services like an outing.

Research Questions

According to Dacko (2008), consumer purchase behaviors are affected by reference groups. It defines a reference group as that category of people that affect one’s behavior, views and feelings. These groups act as points of reference for people while ascertaining their needs and creating perceptions (Wang and Xiao, 2009). Therefore, people consent to the influence of the reference groups due to the perceived rewards. The role and status of persons is a significant factor of social impact.

Carpenter (2008) found out that buyer frequency in most of the supermarkets in the United States were affected by demographic factors. More specifically, the study discovered that health and cosmetic products were frequently bought by females whereas electronic products were purchased mainly by male shoppers. Kolyesnikova et al. (2009) also studied consumer purchase behavior concerning gender in Texas. The findings indicated that the future purchasing behavior of males was persuaded by a sense of appreciation, while the female shoppers in the USA appeared to have obligatory feelings to the sales representatives and this affected their future buying behavior. The research concluded that consumer buying behaviors might be determined by factors considered as apparent and therefore marketers should be conscious of this while developing marketing strategies (Kolyesnikova, 2009). Hira and Loibl (2008) further explored the impact of gender on the investment behavior of consumers and found out that consumer investment preferences and practices were affected by gender and hence the male and female exhibited varying investment behaviors.  

Religion is an integrated structure of beliefs and practices associated with sacred things, whereas religiosity is perceived to be the level to which beliefs in a given religious ethics and are believed and practices by a member (Hawkins, Best, and Coney, 2010). The authors opine that religious identity influences the purchase decision of its members. Commodities that are figuratively or ceremonially related to the commemoration of given religious days are freely bought by the members of that religions as a result of the influence of the religious beliefs. For instance, most gifts are purchased during Christmas in the Christendom (Hawkins, Best, and Coney, 2010). Barry and Weinstein (2009) examined the impact of religious association on consumer behavior and found out distinct variations in the psychographic factors between protestant churches in Brazil.

?opaciuk and ?oboda (2013) report that the cosmetic industry is one of the fast-growing industries with over profit margin of $7.76 billion by 2018. This lucrative business of cosmetics has led to an influx of both small and big companies which are competing for the same market and producing cosmetic products that serve the same purpose. As a result, the cosmetic industry is the leading one with differentiated products and aggressive advertisements (Salvador and Chisvert, 2011).

Literature Review

Customers are left with too many brands to choose from because almost all the cosmetic companies produce a variety of products and almost none of them have focused on a single brand. Yee et al. (2013) note that the aggressive and advanced marketing strategies adopted by the cosmetic companies have resulted in the use of specialty stores and through online and not department stores and pharmacies.

Yang, Jayashree, and Marthandan (2012) observes that the economies of cosmetic business have changed because consumers now are not loyal to specific beauty products but instead buy across brands. This can be attributed to the presence of too many beauty products in the market, and the consumers have to try each of them before they can settle on one. Also, Fatima and Lodhi (2015) Opine that aggressive promotional activities have led to the lack of loyalty to some consumers who cannot stick to one brand. On the other hand, ?opaciuk and ?oboda (2013) argue that innovative marketing in the current cosmetic industry will increase market share for beauty products.  

According to Singh and Nanda (2012) the increase of consumer protection laws and the insurgence of many investors into the lucrative industry has led to the revision and enforcement of legislation by the Federal Food Drug and Cosmetic Act (FFDCA) and the Fair Packaging and Labelling Act (FPLA) which has led to increased oversight of the industry. Any false or misleading information labeled on cosmetic products is regarded by FDA as misbranding (OAIC, 2018).

Singh and Nanda (2012) contends that the new legislation of demanding that all cosmetic companies to register their facilities with FDA before distribution in addition to the submission of ingredient statements before approval has been seen as stringent by players in the industry who have for long been using subliminal advertisements to sell their products

The Engel Kollat and Blackwell (EKB) model was first developed by James Engel, David Kollat and Roger Blackwell in 1968 and authored to provide more knowledge to the consumer buying behavior. The model explains different elements of consumer decision making and their associations. The EKB model comprises five steps: problem recognition, information search, alternative evaluation, choice and outcome (Solomon, Russell-Bennett, and Previte, 2012).

Step one is problem recognition wherein the consumer ascertains an issue that requires a solution or a need which is to be met. This level is when the consumer seeks to ease a state of disquiet (Ashman, Solomon, and Wolny, 2015). Scott et al. (2017) observe that need recognition is as a result of the consumers’ detection of the variances between his present state and the expected state. Step two of the process of decision making comprises of the search and collection of all information that is relevant to the solution of the current problem. The time required to gather sufficient information is dependent on the size of the purchase decision. (Shiffman, 2008).

Step three of the purchase process is the evaluation of the alternatives. This is the stage at which the consumers resolve between deal-breaker and deal-maker. At this stage, consumers will consider various factors like brand, price, and quality among others. Step four is choice, and the consumer decides on the product or service they are to purchase. The purchase decision will be determined by various factors such as the availability of the preferred commodity and the influence of the seller (Pickett-Baker and Ozaki, 2008). If the consumer had purchased, experienced and was contented with the item before, then he is likely to avoid the previous steps and begin at level four (Solomon et al., 2014).

The fifth and last step in the decision buying process is the after-purchase behavior. This phase is very critical to the marketer because the attitudes of the buyer and product assessment will determine if at all there will be future purchase repetitions which may also lead to brand loyalty or cease to use the item forever. The EKB theory is much applicable to this study because it explains a simple process of consumer decision making (Lin, Wang, and Hwang, 2010). Furthermore, has repetitively been revised to incorporate the emerging variations and improvements in consumer buying theory and knowledge. On the contrary, criticism labeled on the model is that it is too robotic and limiting to incorporate all the varying situations of consumer decision-making process (Ashman, Solomon and Wolny, 2015).

Studies show that almost 75% of the marketing budget of companies goes to sales promotion (Gedenk, Neslin, and Ailawadi, 2010). And, this has been attributed to the fact that promotional activities affect the purchase decisions of consumers (Mittal and Sethi, 2011; Fogel and Thornton, 2008). Promotional activities affect the attitude of the consumers towards a product and not just to create awareness. This is because the content of the promotional activities is inclined towards promoting the benefits of the products and solving predicted customer problems. Martinez and Seock (2017) assert that sales promotion stimulates consumer purchases and acts as incentives for consumers to go for specific products. According to Azmi et al. (2016), brand loyalty depends on the post-purchase experience of the consumer. If the product meets the expectations and performance of the consumer, then repeated purchases will follow which will ultimately result to brand loyalty.

Khan et al. (2015) observe that promotional activity are directly related to competitive advantage and increased market share. The objective of promotion, according to Familmaleki, Aghighi, and Hamidi (2015) is to increase sales, brand loyalty, and consequently, market share. Other studies shave also associated successful marketing to increased competitive advantage (Azmi et al., 2016; Godey et al., 2016).

Digital marketing has been defined by Chaffey and Ellis-Chadwick (2016) as a subcategory of marketing that applies digital technology to place and sells commodities. With technological advancement, increased globalization, and changing customer needs, thriving organizations have shifted from traditional marketing to digital marketing. The study by Ryan (2016) showed that both the old and young spent more time on the internet and therefore made most of their purchases via the internet.

Kuvykaite, Dovaliene, and Navickiene (2009) note that a good packing design assists organizations to differentiate their commodities from competitors and positively affects consumer buying behavior. It also improves product positioning in the market and as thus can be used to engage the customers and send appropriate message to them. Cosmetic packaging utilizes different colours as it affects customers purchase decision (Kuvykaite, Dovaliene, and Navickiene, 2009).

According to Raja & Kavitha (2015), the current dynamic consumer market that is highly inquisitive before making a purchase decision requires that they first test the product before purchase. The author recommends the establishment of a department store for free provision of consolation services and free routine makeover contests to attract customers and improve sales

Free giveaways are recommended by Raja & Kavitha (2015) as effective strategies for marketing in the cosmetic industry. Smith (2011) proposes setting a minimum entry number for customer purchases who qualify giveaways as means of introducing new products in the market and increasing market share.

This chapter outlines the detailed research methodology adopted by the researcher including research design, target population and sampling design, sampling technique, sample size, data collection, and analysis.

This study adopted both qualitative and quantitative approaches (Mixed method) (Creswell and Creswell, 2017). The study ensured a combination of different techniques of the mixed method approach. A mixed approach was preferred because it makes the research more comprehensive as a result of the statistical analysis alongside observation, interpretation, and interview (Creswell and Creswell, 2017).  

The study population comprised of the employees of Natio Cosmetics and the company’s consumers. The population was chosen to enable the researcher to obtain solutions to the research questions (Saunders, 2011). The target population was 500 and is shown in table 3.1 below

Table 1Table 3.1 Target Population

Table 3.1 Target Population

Respondents Category	Number
Male	200
Female	300
Total	500

The study sampled a total of 55 respondents. However, 50 of them participated in the research. This was adequate to represent the whole population and permit the accomplishment of the objective of assessing some aspects of the population and generating conclusions about the entire population.

The study used purposive sampling and random sampling to obtain samples from the target population (Suri, 2011). This approach was used to select prospective respondents on the basis of their roles in the organization. Data was acquired from essential informants like Consumers, Accountants, Cashiers, Sales officers, and Marketing Managers because they have a vital duty in influencing consumer buying behavior of Natio Cosmetic products. The researcher also used random sampling to select participants among the consumers of Natio Cosmetics items. This ensured that all the consumers had an equal opportunity of selection and to minimize the biases of the researcher in the sampling process (Christensen et al., 2011). To accomplish this regarding customer inclusion in the study, customers that came to the organization’s offices to buy products were randomly picked.

Mugenda and Mugenda (2012) recommend the use of10% of the target population for each category as a representative sample. The sample size consisted of a total of 50 participants distributed across the various groups using the percentage proportions as shown in table 3.2 below;

Table 2Table 3.2 Sample Size

Table 3.2 Sample Size

	Frequency	Percent
Valid	Female	30	60%
Male	20	40%
Total	50	100%

Both primary and secondary data were collected. Secondary data was gathered through the literature review of relevant research to give an in-depth understanding of the research topic to the researcher. Primary data was collected primarily using questionnaires. The researcher designed and used structured questionnaires to gather data. They were self-administered. The researcher used hand delivery to distribute the questionnaires and requested the respondents to fill them individually. The questionnaires had close-ended questions. The responses were rated using a Likert scale to enable statistical analysis (Rowley, 2014). Each possible response is assigned a numerical value and an average of the feedbacks calculated at the end of the research. The questionnaires were sectioned into three. Section one comprised of the demographics of the participants namely; respondent’s age, gender, education level, and category. Section two addressed the awareness of the respondents regarding the Cosmetics Promotional strategies used by Natio Cosmetics and the impacts promotional activities on consumer behaviour. The last part dealt with implications of social factors, religion, gender and culture factors on consumer behavior.

The collected data through completed questionnaires was checked for inclusivity and consistency, after which it was coded enable categorization of the responses. Quantitative data were analyzed using content analysis tools and descriptive statistics used to examine the data with the help of SPSS to obtain percentages and tabulations. The data was then presented using tables and graphs for easy comprehension.

The informant’s identities will be referenced in anonymity in the entire research to avoid any potential consequences such as intimidation from the management. Furthermore, the collected information from Natio Cosmetics will be used with highest confidentiality levels and any disclosure of personal content for official use will only be done so under the consent. The information will also be used just for the intended objective. This will be assured by the use of the University Introduction letter which outlines the aim of the study.

This section of the study contains the findings of the survey, data analysis, and the discussion. More specifically demographic features of the respondents such as age, gender, level of education, promotional activities used by Natio Cosmetics and their impacts on consumer behavior, and how different factors affect the purchase decision-making process of the consumers.

This part shows the demographic features of the study respondents

Table 3Table 4.1 Age Summary of the Respondents

Table 4.1 Age Summary of the Respondents  

	Sex of respondent	Total
Female	Male
Age of Respondent	25-30	1	2	3
31-35	22	6	28
36-40	3	9	12
41-45	1	3	4
46-50	3	0	3
Total	30	20	50

Source: Researcher’s Analysis (2018)

The study examined the informant’s age to ascertain whether the influence of promotional activities on consumer buying behaviour varies with age. Based on table 4.1, it is clear that most (28%) of the participants belonged to age bracket of 31-35 years, followed by respondents aged between 36-40 years (12%), 4% of the respondents were aged 41-45 years and those of 46-50 years were the least (3%).

Table 4.2 Gender Summary of the Respondents

The respondents were also asked to indicate their genders, and table 4.2 below shows the feedback

Table 4Table 4.2 Gender of the Respondents

Table 4.2 Gender of the Respondents

	Frequency	Percent (%)
	Female	30	60
Male	20	40
Total	50	100

Source: Researcher’s Analysis (2018)

Table 4.2 shows that 60% of the respondents were female where as 40% were male.

Table 5Table 4.3 Education Level of Respondents

Table 4.3 Education Level of Respondents

	Frequency	Percent (%)
	Diploma	13	26
Degree	30	60
Post Graduate	5	10
Masters	2	4
Total	50	100

Source: Researcher’s Analysis (2018)

The results documented in table 4.3 above clearly shows that 60% of the respondents are undergraduates, 26% are diploma holders, 10% have post graduate diplomas, and 4% possess masters.

Majority of the respondents confessed to be conscious on promotional strategies of cosmetics.

Table 6Figure 4.1: Awareness on Promotional Strategies in Cosmetics

Figure 4.1: Awareness on Promotional Strategies in Cosmetics

Source: Researcher’s Analysis (2018)

Figure 4.1 shows that 72% of the respondents claimed to be totally aware of the cosmetics promotional strategies, 24% were partially aware, with only 4% being ignorant of cosmetics promotional activities.

The respondents were given four promotional strategies to select among them those used by Natio Cosmetics. This was aimed at determining the most used promotional strategy by the company.

Table 7Figure 4.2: Promotional Strategies used by Natio Cosmetics

Figure 4.2: Promotional Strategies used by Natio Cosmetics

Source: Researcher’s Analysis (2018)

The study outcomes show that all the listed promotional strategies are used by Natio Cosmetics with Digital marketing being the most used (64%), followed by creative packaging (24%), makeover strategies (8%) and issuing free samples is the least used strategy (4%).

Table 8Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products

Figure 4.3 Promotional Activities Draws Attention on Natio Cosmetic Products

Source: Researcher’s Analysis (2018)

Figure 4.3 indicates that 56% of the respondents strongly agree that promotional activities affects consumer buying behaviour by drawing their attention to the products of Natio Cosmetics, whereas 24% of them agree, 12% disagree, and only 8% strongly disagree.

Table 9Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products

Figure 4.4 Promotional Activities develop interest in Natio Cosmetic Products

Source: Researcher’s Analysis (2018)

Findings from the study as indicated in table 4.4 above show that 44% of the respondents agree that promotional activities impacts consumer buying behaviour by creating an interest towards the products of Natio Cosmetics, where as 26% strongly agree, 20% disagree, and 10% of the participants strongly disagree.

Table 10Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products

Figure 4.5 Promotional Activities Create Desire in Natio Cosmetic Products

Source: Researcher’s Analysis (2018)

Figure 4.5 demonstrates that 58% of the informants strongly agree that their purchase behaviours are affected by promotional activities by generating a desire for the commodities of Natio Cosmetics, 26% agree, 8% disagree, and 8% strongly disagree.

the research found out that 56% of the respondents disagree to the statement that their religion is significant in determining what cosmetic item to purchase, while 20% strongly agree, 16% strongly disagree, and only 8% of the respondents agree.

60% of the respondents strongly agree that gender influences their buying behaviour of cosmetics, while 26% agree, 8% disagree, and 6% strongly disagree to the assertion.

The study outcomes as shown in figure 4.11 shows that 60% of the respondents strongly agree to the assertion that their culture prevents them from buying specific cosmetic items, whereas 20% agree, 12% disagree, and 8% strongly disagree to the conclusion.

This chapter provides discussions based on the findings with reference to the research aim.

The researcher analyzed the respondent’s response to different types of promotional activities adopted by Natio Cosmetics for advertising its commodities. The aim was to ascertain the most used promotional strategy. The outcomes showed that the company utilized four significant strategies namely digital marketing (64%), creative packaging (24%), makeover strategies (8%), and issuing of free samples (4%). Digital marketing and creative packaging were the most used strategies. The organization used digital marketing like YouTube to show the production process of the cosmetics right from production to the shelves, and as a result, the consumers developed positive attitude towards the products. Digital marketing like the use of online platforms enabled Natio to display the products of the company in their website and social account with all fundamental information, and these created interests in them thus motivating them to purchase the products. These findings agree with those of Kuvykaite, Dovaliene, and Navickiene (2009) who found out that advertisement increases sales through the creation of the interest.

The organization also uses creative packaging to alter and improve the consumption pattern of its consumers. Natio Cosmetics employs the use of color, shape, and size of packaging, product information, and design in creative packaging. The color is a key player in the purchase decision making of the customer because it first attracts their attention and then their curiosity leads them to inquire more about the product. Good enough the information provided in the product develops the interest to go further and try out the product after being convinced. Ritnamkam and Sahachaisaeree (2012) also found out that purchase decisions were affected by how the males graded their color of choice. The size of the packaging also affected consumer buying behavior. For instance, the consumers perceived differently elongated products as of different volume even though they had bought the product before, this attracted their attention and interest was aroused in them which led to a purchase decision. Similarly, outcomes were found by Chandon and Ordabayeva (2009).

Natio Cosmetics also promotes its products by the use of makeover strategies. The organization provides free makeovers to some of its loyal clients on a regular basis. The organization uses this strategy as a promotional activity to build confidence in potential customers of the effectiveness of their products thus arousing their interests in their products. Natio Cosmetics also issues free samples of some of its selected commodities to be tested by the customers and create a desire in them of trying out their new products and of course to spread the message of quality products through word of mouth.

The interview with the managers of Natio Cosmetics gave insight to some challenges faced by the company in developing engaging promotional activities. First, the competition level of the Australian cosmetic industry is intense. There are so many cosmetic shops in Australia each with aggressive marketing strategies. This challenges the organization which also produces several beauty products because they are not able to quickly mark out their loyal customers who are being swayed away by the many products in the market and promotions. As a result, the employees buy a cross-brand of products, and this reduces the company’s market share and sales. ?opaciuk, A., and ?oboda (2013) also found out that stiff competition was one of the significant challenges in the cosmetic industry.

The changes in legislation in the cosmetic industry was also pointed out as a significant problem. The imposition of rigid legislation on advertisements by FAD such as the use of drug or healing related messages in cosmetics as misleading limits promotions whose primary objective is to attract, create attention and arouse a desire to purchase a given product. Similar conclusions were arrived at by Singh and Nanda (2012).

The findings of the study indicated that the organizational sales are negatively affected by various factors ranging from internal to external factors. These factors include the types of promotional activities used by the Natio Cosmetics, stiff competition in the cosmetic industry, stringent legislation, and dynamic factors that influence consumer buying behaviors.

The study findings indicated that Natio Cosmetics primarily use four promotional activities namely digital marketing, creative packaging, makeover strategies, and issuing free samples. The organization used mostly digital marketing and creative packaging to promote its products whereas other strategies like makeover strategies and the issuance of free samples were underutilized. The interests of consumers vary depending on various factors such as social, gender, religion, and culture. Thus the lack of exploring multiple promotional activities limits the target market of the organization during marketing. This, in turn, reduces the market share of the company and consequently reduces sales. Zhu and Zhang (2010) also associated decline in sales with poor marketing.

The study observations and findings show that the cosmetic industry is one of the fastest growing industry and as a result, it is flooded with many cosmetic companies which are competing for the same consumers and all are producing beauty products that serve the same purpose. This scenario is a challenge to Natio Cosmetics which manufactures a collection of beauty products and competing for the same consumers with other competitors. With aggressive advertisements and a variety of beauty products to choose from, consumers end up buying across brands thus leading to declining in sales; an assertion similarly arrived at by Raja & Kavitha (2015).

The dynamic cosmetic markets regarding the ever-changing customer tastes and preferences pose a challenge to the marketing department of Natio Cosmetics about gaining the attention of the potential customers through promotional activities in order to influence their buying behavior. The research found out that consumer buying behavior is affected by various factors such as social, religion, culture and gender. Therefore, the company is faced with the challenge of customizing its promotional activities to suit the varying factors in order to influence the buying behavior of the consumers. Similar findings are noted by Solomon et al. (2014) who found out that consumer behavior is dynamic based on marketing strategy among other factors.

The study findings show that the purchase intention of the consumers is significantly affected by the promotional activities of the company. The respondents were asked to indicate the impacts of promotional activities on their buying behavior. The respondents were of the view that promotional activities attracted their attention and enabled them to research more on the cosmetic products and thus to develop an interest in them towards a particular item which influences their purchase intention. Based on the interviews carried out with the respondents, the findings revealed that promotional activities affected their purchase intention by arousing interest on Natio Cosmetics because it helps to differentiate the organization’s products from other beauty products. Therefore, promotional operations of the company influence consumers to buy their beauty products in place of those of the competitors.

The analysis of the feedback of the respondents suggests that promotional activities influence the purchase intention of the consumers by creating a desire in them thus making them prefer the use of  Natio Cosmetic products in reference with others. New users of Natio Cosmetic items are likely to be influenced to buy their products after seeing the promotional activities.

This section presents the researcher’s recommendations based on the findings of the study.  The overall objective of this research is to ascertain the impact of promotional activities on consumer buying behavior by focusing on Natio Cosmetics, Australia.

The Australian cosmetic market is the fastest growing industry with various assortments of beauty products serving almost the same purpose, and this stimulates stiff competition which leads to aggressive advertisements. The outcomes of this study have demonstrated that promotional activities have a significant role in influencing the consumer buying behavior of Natio Cosmetics and should, therefore, be highly prioritized by the company. The following are the detailed recommendations that the company can implement to expand its market share and increase sales:

Natio Cosmetics should conduct thorough market research on which product is purchased by most of its customers or that which is highly demanded by most consumers in the market. After which they can specialize in specific products and concentrate its efforts towards the few products. This is because the Australian and global cosmetic market is experiencing an influx of companies both small and established ones that produce a variety of beauty products for the same market and which serve almost the same purpose. As a result, consumers end up buying across the brands which negatively affects the market share and sales. This strategy will help in differentiation of the organization’s products and in the selection of a specific market niche which will lead to the creation of loyal customer to their particular brand.

Natio Cosmetics should come up with well-designed promotional strategies for implementation, to influence the aspirations of the consumers, meet their needs and thus influence their behaviors. This is because each successful promotion can only be achieved after the company has conducted proper situational analysis and formulated marketing programs that optimize on the factors that influence the purchase decision of the consumers as the study has indicated (Kotler, 2012). Therefore, the organization should explore other promotional activities and improve the current ones. For example, the company can adopt the use of TV adverts, magazine advertising, and the use of T-shirts among others. This will first arrest the customer’s attention who will develop an interest as he compares and contrasts it with other market products. This will create a desire to try it out and based on the post-purchase experience; the customers can become loyal to specific brands courtesy of the initial encounter promoted by specific promotional activity.  

Customer relationship management involves the coordination of various organizational departments like the sales, marketing among others with the objective of working towards meeting the customer needs. The existence of stiff competition in the Australian cosmetic industry and technology advancement calls for the effective employees and customer relationship management to succeed. The findings indicate that the buying behavior of Natio Cosmetics is influenced by the education level, age, and gender. This, therefore, requires more diversified promotions by examining the customer needs, evaluation of the company’s products that need to be formulated to meet the needs of the target market and increase the market share. Additionally, the study found out that most of Natio’s customers are well-educated meaning that the content of the promotional activities should be formulated in a manner that will appeal to them in order to arouse interest and create a desire for the beauty products (Kotler, 2012).

Since this research has shown that promotional activities, social factors, gender, culture, age, education level, and packaging are important in that they affect consumer buying behaviors of Natio Cosmetics products, it is crucial that the company to further explore other factors that equally affect consumer buying behaviour such as product rewards, constituents, quality, price, testimonials and product names. Also, the organization can expand and grow through becoming a learning organization by learning from the leading cosmetic companies in the market regarding their performances on the association between promotional activities and consumer purchase decision. This can be achieved by planning for employees training on techniques of the business development process.

Conclusions

Based on the study outcomes, the researcher concludes that promotional activities substantially influence the consumer buying behavior by charming attention, exciting interest, developing a desire for the product and at least make them buy the items. These findings are harmonious with the EKB model examined in the literature review. During the survey, the researcher found out that Natio Cosmetics has adopted different promotional activities such as; digital marketing, creative packaging, makeover, and issuing free samples.  These strategies have attracted only a few buyers through influencing their purchase decisions by arresting their attention, creating interest and developing the desire for the Natio Cosmetic products. The promotional activities have also attempted to create awareness of the commodities and attract purchasers. The study provides recommendations based on the findings which are geared towards increasing market share and hence organizational sales revenue.

The time allotted for the study was limited because it is a scholarly research project which requires an adequate period to carry out the survey. This limitation was managed by the researcher by using questionnaire and interview methods for gathering data within the allotted time. The researcher also faced financial constraints and therefore could not use a bigger sample size as initially intended. To address this issue, the researcher hired out experienced people to assist in the dissemination and collection of the completed questionnaires while he conducted the interviews. Finally, some respondents were reluctant to participate in the study for fear of intimidation from their supervisors. This constraint was addressed by the researcher by the use of persuasive language to get them participate in the survey and collect the filed questionnaires. The respondents were also guided on how to complete the questionnaires in situations where dishonesty response was suspected.

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