Method
The below mentioned literature review explain the information about the cosmetic industry of Jordan. The review evaluates the impact of firm generated content and user generated content on the purchasing behaviour of people. Consumer purchasing power is an independent variable that refers to the capacity of an individual to buy certain quantities of goods and services from the market. Further user generated content refers to the content that includes images, videos, audios and texts, that have been posted by the users itself on the online platform like social media etc. Firm generated content refers to the content that is displayed by the companies on social media with an aim to promote the product in the market and increase its sales as well. Firm and user generated content influence the prospective customers in the market to view details about a certain product and purchase them in the market. There is high degree of competition in the Jordanian industry of cosmetics due to which customer mainly rely on the authentic user and firm generated content present on different platforms. The below mentioned review explain the impact of such type of content on the cosmetic industry of Jordan. The Jordan cosmetic industry is majorly responsible for the purchasing behaviour of the customers in the target market. Also, it should be noted that the firm generated content is also influenced by the user generated content present on the social media. With the expansion of the businesses, it has become important for the companies to consider the information shared on social media so that they can further initiate the sales in the target market. Genuineness or authenticity of a product can be analysed on the basis of user generated content for the specific product that is present on the social media platforms.
In the cosmetics industry, how the products are portrayed plays a very important role in its success. The most basic example of it is the fact that people desires of the cosmetic products that make them the same way companies have shown through different advertisements. This has a deeper influence on the purchasing intention of the people. Purchasing intension is also influenced by the way in which companies have portrayed its product (Kahttab, Al-Manasra, Zaid & Qutaishat, 2012). For example the people in Jordon like the cosmetic that look trendier and has long no side effect. The way in which company touches the challenges faced by the people in their advertisement and the probable solution their products can provide, plays a decisive role in the purchasing intention. For example women who want to look fairer always go for the products that offer the solution related to her tanned skin. There are several methods used by the firm so as to affect the purchasing behaviour of consumers (Goh, Heng, & Lin, 2013). It is seen that people get influenced by these methods as they give them a detailed idea about the way consumers are going to purchase the product or the way in which consumers are attracted towards any product. Social norm plays a very crucial role in defining the way in which consumers in the market will move.
Findings
It is seen that companies gather data from different sources. This collection is done on both the micro and macro level. This is a consumer generated content that is about the pattern in which consumers purchases any product. In this test loyalty of the consumer is also tested along with the fact that what kind of product he or she purchases regularly. It also evaluates purchasing intention by checking the fact that what has actually led the person to buy the product several numbers of times. Using this data firms these days do target marketing (Kumar, Bezawada, Rishika, Janakiraman & Kannan, 2016). Personalised marketing becomes easier with this data as the firm starts to understand the consumer choice and their purchasing intention hence frame their advertisements accordingly. This helps them in attracting customers towards their products that are often purchased by the specific consumers.
From the data that is collected by various sources companies do underline the expenditure power of the consumers. The spending of the consumers shows that what their purchasing power is. After analysing the spending power of the consumers, companies shape their marketing campaign (Muñiz Jr & Schau, 2011). In the personalised marketing, they market only those types of products to the consumers that are under the purchasing capacity of the consumers. Since if the people have searched for any product this means that they have certain intention to purchase that product hence personalised marketing are easier to be made. Since Jordon is a having a high per capita income hence the spending of the people is on the higher side hence companies also shows the products that are expensive or provides them with luxury.
According to Cantallops & Salvi, (2014) profitability is a company generated content that tells about the products that are performing well and the products that are not working out. The profitability of the companies is evaluated on the basis of their growth in the sale of a particular product. Using this data firm gives focus towards such products that are giving high profits and concentrate their marketing towards promotions of these products only. Researches shows that people also get to know about the product that is actually making a success and hence their purchasing intentions also get moulded accordingly.
As per Tang, Fang & Wang, (2014) cross buying analysis is again a consumer generated content that is analysed by the firm to understand the purchasing behaviour of the customers. The firm also makes their marketing campaigns in such a way that they can market one product of theirs with other products. Most of the time, this affects the consumer’s intention as they also get to know about other products of company hence they go for cross-buying.
On the contrary Albuquerque, Pavlidis, Chatow, Chen & Jamal, (2012) social media review is again a consumer generated data that is helpful in understanding the buying behaviour of the people. The reviews, likes, dislikes and other comments on the social media platforms about the products or services are analysed using different tools so as to understand the market and each one of their customer’s intention towards purchasing their product. Due to this social media marketing can be made attractive and hence people can get attracted towards their products and services.
Methods using which the companies exactly understand the purchasing behaviour of the consumer. According to Heinonen, (2011) a difference in differences is a statistical technique that is utilised for quantitative research and econometrics in the social sciences. The analysis is done by researching the differential effect of a treatment on a ‘treatment group’ against a ‘control group’ in a natural experiment. The people of Jordan acts as a treatment group in this experiment as marketing will be done according to their purchasing power only. Other than this treatment effect is a binary approach to experimenting where the people who purchased products as compared with the people who have not purchased (Xiang, Schwartz, Gerdes Jr & Uysal, 2015). This is done estimated through regression model, instrumental variables, social experiments and matching estimators etc. The people of Jordon are considered as a treatment group on which analysis is done.
A finding can be drawn that both the above-mentioned methods help to redesign the experimental scenario where understanding the pattern of consumer behaviour, their intention and attitude is done. According to Masoud, 2013, the research by the firms generated and the consumer generated data are very much essential for understanding the attractiveness of the products and services. This also illustrates the purchasing behaviour of the people of Jordon. It is found that the effective marketing that is done to change the purchasing intention of the customers (Alawneh, Al-Refai & Batiha, 2013). It is also seen that there are people from the different segments of society and they have different kinds of social norms. This is having a high degree of effect on the purchasing behaviour of consumers especially their purchasing intention. The firm generated data contents are having an impact on the mindset for the shorter period of time. It is highly beneficial in the case of innovation where people do not know about the product as they are new in the market and hence companies give information about the product. Mostly the advantages of the products are highlighted against the problems that normal consumers are facing.
On the other hand, Muñiz Jr & Schau, (2011) believes that consumer generated contents are helpful for improving the marketing that is related to the existing products. The analysis about the liking and disliking of the consumers tells the company that how they are going to proceed with their product marketing. This would be a long-term approach which will ensure that marketing results can be obtained for a longer period of time. Consumer generated contents like feedbacks and comments show their purchasing intention which is evaluated to make changes in the products. These changes made on the basis of consumer’s purchasing behaviour can be shown in the marketing for the next time (Masoud, 2013). Social norms such as the cultural attachments towards any specific products are essential for any firm to understand. It was also found that Jordon people have high purchasing capacity hence the firms will not face problems in marketing any type of product and hence higher sales can be achieved. It is also crucial for filtering the products that are performing well and once that are not performing well.
Kumar, Bezawada, Rishika, Janakiraman & Kannan, (2016) finds that consumer generated contents are larger in size and need a precise evaluation especially in terms social and cultural norms of the individuals. The diversification in the society of Jordan can be evaluated easily using these methods and hence mass and personalised marketing can be improved so as to influence the buying behaviour of the consumers.
As discussed above that social media platforms have become an important tool in helping the companies to strategize their marketing activities by creating a bond and increasing the trust level of customers in the target market. In the given case independent variable are the firm generated content and user generated content. These content does not depend on any external condition as it only provides specific view and perception about the particular cosmetic product. Further, social norms acts as a moderating variable as it affects the relationship between the independent and the dependent variable. And the purchasing intention of the customer is the final depending variable as this decision is completely dependent on the firm and user generated content.
See-To, & Ho, 2014 said communication is one of the best ways with which companies develop a meaningful relationship with the customers in the target market. Social media is currently used in a very precise and specific manner to initiate the opinion of people towards a certain brand in the market. Talking about the cosmetic industry of Jordon, it should be noted that the industry is mostly based on the user as well as firm generated content only. The companies present in the industry have appropriately understood the importance of social media in the beauty industry due to which they implement their market strategies on social media only so that customers can change their buying behaviour and purchase the product in the market (Cheng, & Ho, 2015).
User Generated Content (Independent): In the viewpoint of Xie, & Lee, 2015 the customers that have already used the services of some organization, share their views, opinions and product usage as well so that viewer can get adequate information about the product. Resulting in which, companies in the current market have also started promoting the product on social media by giving gift hampers to YouTube as well as Instagram bloggers and other social media influencers as well. These influencers share their views and opinion about certain products on their social media blogs and the fans or viewer watch at the product specification and purchase the products from the beauty companies. The purchasing behaviour of the consumer in the industry fluctuates on the basis of quality of the product, its brand image and various other social influences (Tang, Fang, & Wang, 2014).
Social media is a tool that helps companies to promote their brand in the international market as well. E-commerce has a very strong impact on the purchasing behaviour of the customer (Zhang, & Benyoucef, 2016). It has added an additional line for the companies to initiate sales in the target market as earlier only physical sales were used by companies to earn money but now social media apps and websites offer the products of different companies to the customers in the market. User generated content has become new word of mouth facility in the target market as this process makes people post their views and opinions and let people know about the product as well. The firm also market their product using taglines, images and audios that helps the customers in creating a positive brand image in their mindset (Godey, et. al., 2016).
The internet-based board is the platform where the contributor submit their opinion regarding the brand and this information subsequently allows the users to base their decisions and create an impression about the product. If the contributors for posted bad comments about the product and the company then the customer will attain a bad image about the product in the market and they will not purchase the product. The user generated content help the other users to attain information about the company and base their purchasing intention. Resulting in which, firms in the current market have increased awareness about the user’s experiences in the market due to which the response to the dissatisfied customers and regards the happy customers present in a market (Park, & Nicolau, 2015).
Firm Generated Content (Independent): The firms have started generating content that is attractive and true with the customers. In the cosmetic industry of Jordan, there are many companies that provide unnaturally or product made with chemical under the name of providing organic products in the market. Firms in the cosmetic industry of Jordan have better defined and distinctive ideas of what customers think, feel and want from the product. In the perspective of Muñiz Jr, & Schau, 2011, it is not about making or posting reviews about the product, the users of social media also exchange knowledge, concerns and seek suggestions using this type of platform. In the cosmetic industry, customers are willing to purchase the product that has goodwill in the market and all love the product. So, if the company has managed to earn a good response from the customers in the target market, then it will ultimately motivate other customers to initiate sales in the target market.
Thus, it can be said that user generated content and firm generated content has a direct relationship with the consumer buying behaviour in the market. Positive response on platforms will lead to increase in sales whereas negative response will lead to a decrease in sales in the target market. Social norms and moderating variables also have a strong relationship with the consumer buying behaviour (Filieri, Alguezaui, & McLeay, 2015).
Social Norms (Moderating): Social norms are a major driver of human behaviour and crucial in consumer decision making process as consumers mostly take the behaviour of others and expectations into considerations when they decide what type of product they want to purchase in the market. For instance, there is trend in the Jordan industry that people are looking for nude shade lipstick and nude shade cosmetic as well. So, the social norms and facilities present in the market are making the customers incline towards nude products. This has also made to companies to provide a variety of such products in the market (Cantallops, & Salvi, 2014). So, with this illustration, it can be easily understood that social norms present in the industry highly affect the buying decisions of the customers in the market. Further, from the perspective of (Tang, Fang, & Wang, 2014) other moderating variables like price, quality, taste, trend etc. also affect the buying behaviour of the customers in the target market. Involvement of such variable misbalances the decision of the customers in the target market. These social norms and moderating variables present in the market are circulated to the customers using user generated content and firm generated content on social media.
Purchasing Intention (Dependent): The interest of the customers and their buying behaviour is completely based on these variables only (Flanagin, et. al., 2014). The cosmetic industry of Jordan is very fluctuating as the interest of the customers keeps on changing due to which, the companies present in the Jordanian market tend to regularly post contents about their product in the market. Such companies write blogs on ways to use their product and its benefits etc. so that the customer can get attracted towards it and initiate sales in the market (Kumar, et. al., 2016). Thus, it can be said that there is a very strong impact of user generated content and firm generated content on the purchasing behaviour of the customers. Not only about this industry or country, but this fact has also been stated true by industries present in the worldwide market. As with the occurrence of social media platform and various other multilevel channels, companies have started posting their information on such stages to attract customers. In response to the information posted by the firms, the customers also respond or give their opinion in the market. Further, after analysing, evaluating all the information posted by both ends in the market, the customers finally make their decision and initiate the sale of the company in the market. With the use of such information, the customer gets to purchase the right type of product for them. The cosmetic industry is extended and very large, so this type of information successfully helps the customers in initiating sales in the market.
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted the purchasing intention of the customers present in the Jordanian industry of cosmetics highly fluctuates on the basis of the user and firm generated content present in the industry. Consumers along with companies now a day use various platforms to express their views and opinions towards certain products. Such views helps other consumers to make decision of buying. Thus, it can be said that such content highly affect the purchasing behaviour of the consumer. People present in this industry are directly affected by the opinion of others due to which the information present on different platforms highly affect the purchasing intention of the customers in the market. The above-mentioned review explained that the Jordanian market highly fluctuates due to which people rely on the opinion of other people and firms while purchasing a cosmetic product in the market. Also in the current market, it is important for the customers to gain information from other people to invest their money in the right type of product.
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