THE EFFECT OF MARKETING STRATEGY ON CONSUMER BUYING
BEHAVIORE IN CASE OF COSMETICS PRODUCT IN GONDAR TOWN
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT
A RESEARCH PROPOSAL SUBMITTEDTO IN PARTIAL FULFILMENT OF
THE REQUIRMENT FOR MASTER OF ARTS (MA) DEGREE IN
MARKETING MANAGEMENT
BY:
ESHETU SIMEGNEW
TO ADVISOR: FENTAYE KASSA (PhD)
AGUST, 2022
GONDER, ETHIOPIA
University Of Gondar
College of Business and Economics
Department of Marketing Management
Effects of Marketing Strategy on Consumer Buying Behavior in Gondar city foursub-cities
Cosmetics Product Seller Shops
By
EshetuSemegnew
Advisor:FentayeKassa (PhD)
Approved By the Examining Board:
_____________________________Signature________________Date________________
Examiner
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Examiner
i
Declaration
I, the under signed, declare that this research paper is the result of my own work and all the
reference materials used in this paper have been well acknowledged. Taking various useful
guidance and suggestions from my research advisor FentayeKassa (PhD). I have developed this
research thesis independently. This research paper has not been presented to collect any degree
in this or any other University. This research paper is submitted for the partial fulfillment of
Master degree in Marketing Management
Name: Eshetu Semegnew
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Certification approval Sheet
This is to certify that the thesis entitled: The Effects of Marketing Strategy on consumer
buying behavior in Gondar city four sub cities cosmetics product seller shops” submitted in
partial fulfillment of the requirements for the degree of Masters of Marketing Management of the
Postgraduate Studies, University of Gonder and is a record of original research carried out by
EshetuSimegnew, under my supervision, and no part of the thesis has been submitted for any
other degree or diploma. The assistance and help received during the course of this investigation
have been duly acknowledged. Therefore, I recommend it to be accepted as fulfilling the thesis
requirements.
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This is to certify that the thesis prepared by Eshetu Simegnew, entitled “The Effects of
Marketing Strategy on consumer buying behavior” and submitted in partial fulfillment of the
requirements for the Degree of Masters of Marketing Management complies with the
regulations of the University and meets the accepted standards with respect to originality and
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Acknowledgements
First, I would like to thank the almighty of God who helped me endure all the pressure and
bestowed me with strength and peace to successfully finish my proposal.
I would like to express my appreciation to my advisor Fentaye Kasa (PhD), A Special thanks
are also dedicated to my family, they deserve to be praised and credited for their unfailing and
unconfined material, moral as well as financial support for this and throughout the whole time
my stay in this University.
Finally, I would like to thank those individuals who shared their concern and ideas about my
achievement in different directions. Thank you all.
v
Contents
Acknowledgements ......................................................................................................................... v
List of figure ................................................................................................................................... x
List of table .................................................................................................................................... xi
Abstract ......................................................................................................................................... xii
Acronyms and Abbreviations ...................................................................................................... xiii
CHAPTER ONE ........................................................................................................................... 14
INTRODUCTION ........................................................................................................................ 14
1.1
Background of the study ................................................................................................ 14
1.2 Statementof the Problem ..................................................................................................... 16
1.3. Objective of the study ........................................................................................................ 18
1.3.1 General objective of the study ...................................................................................... 18
1.3.2 Specific objective of the study...................................................................................... 18
1.4. Hypothesis .......................................................................................................................... 19
1.5. Scope of the Study.............................................................................................................. 19
1.6
Limitation of the Study .................................................................................................. 20
1.7. Significance of the Study ................................................................................................... 20
1.8 Definition of Terminologies ................................................................................................ 20
1.9 Organization of the Paper .................................................................................................... 21
CHAPTER TWO ........................................................................................................................ 22
2.
RELATED LITERATURE REVIEW ............................................................................... 22
2.1 Introduction ......................................................................................................................... 22
2.2 Theoretical framework of the study .................................................................................... 22
2.1 Marketing Strategy .............................................................................................................. 23
2.3 Elements of Marketing Strategy.......................................................................................... 25
vi
2.3.1 Segmentation ................................................................................................................ 26
2.3.1.1 Market segmentation strategy in cosmetics market ................................................... 26
2.3.2 Targeting ....................................................................................................................... 28
2.3.3 Positioning .................................................................................................................... 28
2.4 A Model of consumer behavior ........................................................................................... 28
2.5 Conceptual Framework ....................................................................................................... 30
CHAPTER THREE ...................................................................................................................... 31
3. REASERCH METHODOLOGY.............................................................................................. 31
3.1 Introduction ......................................................................................................................... 31
3.2 Research Approach ............................................................................................................. 31
3.3 Research Design .................................................................................................................. 31
3.4 Data source and Data type ................................................................................................... 31
3.5. Description of the Study Area &Target Population of the Study ...................................... 32
3.6. Sampling Technique ........................................................................................................... 32
3.7. Sample Size Determination ................................................................................................ 32
3.8. Data Collection Technique ............................................................................................... 33
3.9. Data Analysis Methods ...................................................................................................... 33
3. 10. Validity and reliability of data ........................................................................................ 34
3.11. Ethical considerations ...................................................................................................... 34
CHAPTER FOUR ....................................................................................................................... 36
4.1. DATA ANALYSIS AND RESULT DISCUSSION .......................................................... 36
4.2. Response Rate .................................................................................................................... 36
4.3. Demographic Background of the Respondents .................................................................. 36
4.4. Descriptive Analysis .......................................................................................................... 38
4.4.1. Marketing Strategies that Affecting Consumers Buying Behavior ............................. 38
vii
4.4.1.1. Product Strategy ....................................................................................................... 39
4.4.1.2. Price Strategy............................................................................................................ 41
4.4.1.3. Promotion Strategy ................................................................................................... 43
4.4.1.5. Distribution Strategy ................................................................................................... 45
4.5. Reliability Analysis Test .................................................................................................... 46
4.6. Test of Assumptions ........................................................................................................... 47
4.6.1. Multicollinearity .......................................................................................................... 47
4.6.2. Normality Test ............................................................................................................. 48
4.8. The Relationship between Marketing Strategy and Consumers Buying Behavior ............ 50
4.7.1. Correlation Analysis .................................................................................................... 50
4.9. The Impact of Marketing Strategy on Consumers Buying Behavior ................................. 51
4.9.1 Regression Analysis ..................................................................................................... 51
4.9.2 Hypothesis Testing ....................................................................................................... 54
4.9.3 Interpretation of the Research Model ........................................................................... 55
4.10. Discussion of Quantitative Results .................................................................................. 56
CHAPTER FIVE .......................................................................................................................... 60
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ......................... 60
5.1. Introduction ........................................................................................................................ 60
5.2. Summary of Major Findings .............................................................................................. 60
5.3. Conclusion.......................................................................................................................... 61
5.4. Recommendations .............................................................................................................. 61
5.5. Limitations and Further area of Study................................................................................ 62
Reference ...................................................................................................................................... 63
Appendix: I ................................................................................................................................... 68
viii
University of Gondar College of Business and Economics Department of Marketing
Management .................................................................................................................................. 68
Post Graduate Program (Questionnaire to be filed by cosmetic product consumers in Gondar city
four sub cities cosmetics shops) .................................................................................................... 68
This questionnaire is designed for the purpose of collecting data for research topic entitled on
“the effect of marketing strategy on cosmetic products consumer buying behavior in Gondar
town”. You are politely requested to provide the required and correct data as per the
questionnaire because it has a great role for the attainment of the objective of the study. The
information that you provide is only for academic purpose and therefore all information provided
shall be treated with maximum caution and confidentiality. ........................................................ 68
If you have any query you can reach me via: ............................................................................... 68
Mob No: +251918099161/+251987765905 .......................................................................... 68
Email: eshetusimegnew@gmail.com .................................................................................... 68
Please check it the questionnaire paper have 4 pages. .......................................................... 68
Thank you for your cooperation in advance! ................................................................................ 68
ix
List of figure
Figure 1 Different segmentation of Cosmetic Industry ............................................................... 27
Figure 2.Model of Consumer Behavior ........................................................................................ 29
Figure 3. Conceptual frame works ................................................................................................ 30
x
List of table
Table 4. 1: Respondents Demographic characteristics ................................................................. 37
Table 4. 2. Product Strategy.......................................................................................................... 39
Table 4. 3. Price Strategy .............................................................................................................. 41
Table 4. 4: Promotion Strategy ..................................................................................................... 43
Table 4. 5. Distribution Strategy ................................................................................................... 45
Table 4. 6 Reliability Test ............................................................................................................ 47
Table 4. 7. Multicolliniarity statistics ........................................................................................... 48
Table 4. 8: Pearson Correlation Result ......................................................................................... 50
Table 4. 9: Regression Analysis of Model Summary ................................................................... 52
Table 4. 10: Analysis of variance (ANOVA) ............................................................................... 52
Table 4. 11: Regression Coefficient Table ................................................................................... 53
Table 4. 12.Summary of Hypothesis............................................................................................. 55
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Abstract
The ultimate goal of any business establishment is to satisfy customers Gaps and remain in
business profitably through production and sales of products or services. So, it should be
implemented effectively to achieve the company’s objectives. Having this in mind, the study is
conducted to assess the effect of marketing strategy on consumer buying behavior in case of
Cosmetics product in Gondar city four purposely selected sub cities. The researcher applied
primary data gathering tools such as questionnaires from cosmetics consumers. The target
population of the study would be customers of cosmetics product in Piayasa, maraki, arada and
Azezo cosmetics product shops. The researcher used non-probability convenience sampling
techniqueto collect quantitative data from 384 respondents. Descriptive and inferential statistics
was used to analysis the data. Person correlation was employed to see the strength of the
relationship between marketing strategies and consumers buying behavior. The multiple
regressions also used to show the significance effect of marketing strategies on consumers
buying behavior. The result showed that the product packaging was not clear to identify the
product from other similar products; packed product was not convenient to consumers.
Regarding product price, the quality and the price of the product was incompatible; the price of
the product was very expensive. The product value is poor as compared to its price. The
consumers of the cosmetics product were not well informed about its promotions presented by
famous peoples. The promotion was not reach for all customers. There is a problem of
availability of the product in all markets and the distribution channel was not easily to order the
product. The correlation result of the study showed that strong correlation was established
between product, price and promotion strategies with consumers buying behaviorwhere as
moderate relationship was existed between distribution strategy and consumers buying behavior.
The regression result of the study revealed that all marketing strategies were significantly affects
consumers buying behavior. Therefore, the cosmetics product consumers and product seller
(owner of the product shops) should work together on quality of product, price of product,
promotion mechanisms and how the distribution strategies should be accessible to all
consumers.
KEY WORD: Marketing strategy (Product strategy, Price strategy, Promotion and distribution
strategy, Consumer Buying Behavior. Gondar city Cosmetics product shops
xii
Acronyms and Abbreviations
AMA:
American Marketing Association
CBB:
Consumer Buying Behavior
SPSS:
Statistical package for social sciences
Pop:
Point of Purchase
xiii
CHAPTER ONE
INTRODUCTION
The attention of this section is essentially addresses the background of the study, statements of
the problem, objectives of the study, Significance of the study, scope, terminologies and
organization of the paper.
1.1 Background of the study
Philip Kotler and Kevin Keller (2012) stated marketing management as an art and science of
choosing target markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value. The purpose of this study is to assess
the effect of marketing strategy on consumer buying behavior of cosmetic product. For practical
implication, it is important for cosmetic users to understand the marketing strategy effect on
consumer’s behavior. They also thought as Marketing is about identifying and meeting human
and social needs. One of the shortest good definitions of marketing is “meeting needs
profitably”. Marketing also described by the American Marketing Association (2008) as the
activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.
According to Kotler (2000), Marketers use numerous tools to elicit the desired responses from
their target markets. These tools constitute a marketing mix. Marketing mix is the set of
marketing tools that the firm uses to pursue its marketing objectives in the target market.
Robert Lauterborn (1990) suggested that the sellers’ four Ps correspond to the customers’ four
Cs (i.e., Product Customer solution, Price Customer cost, Place Convenience and Promotion
Communication). Captivating business firms are those that satisfy customer needs efficiently and
suitably and with effective communication.
Cosmetics Market
The word ‘cosmetics’ is taken from a Greek word “kosmeticos” which means to embellish.
Sure, cosmetics make you look good, but just like all things too good to be true, the positive
benefits of using such products can take a toll on your health. Since early days materials used for
re modeling or improvement of presence comes under the category of cosmetics. People want to
look beautiful and the concept of cosmetics is as old as mankind and development. Various
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beauty products such as skincare products, hair products, fragrances, oral hygiene, and nail
products, which may contain toxic chemicals that can be destructive to health, are used
especially by women. Since long time cosmetics have been known to enhance the arrival of the
human body. In a society obsessed with beauty, people are lured to fake their appearance as a
cure for their insecurities the average woman uses 12 personal care products a day containing
168 different chemicals. Cosmetics have not only seeped into the fashion world but are also
playing a prominent role in one’s day-to-day life (Chhabra, Nancy & Mathew, Shamalu& Gupta,
Apar, 2021)
Cosmetics market is the consumer market and Cosmetic is defined as products of chemical or
natural origin specifically for topical application on the skin in the form of creams and lotions
and makes it more beautiful. The intentions of using cosmetic products is to maintain the body in
a good condition, protect it from the effects of the environment and aging processes or shrink of
faces, change the appearance, and make the body smell nicer. Cosmetic products such as Baby
and Child-Specific Products Bath and Shower, Color Cosmetics, Deodorants, Depilatories,
Fragrances, Hair Care, Men's Grooming, Oral Care, Skin Care, Sun Care, moisturizers,
shampoos, make up colognes and other cosmetics are becoming part of our daily grooming
habits and widely used by every socioeconomic class of human beings to cleanse, perfume,
protect, and change the appearance of skin. In recent years, the consumption of cosmetics and
associated adverse effects are increasing. Hence studying their utilization pattern and impact
would be important. The study showed that 97.3% of the participants had a habit of using
cosmetics (BirhanuGetaMeharie et.al. 2015)
Due to time, a Place and utility gap marketers decide to operate in a broad market recognizes that
it normally cannot serve all customers in that consumer market. As, customers are too numerous
and diverse in their buying characteristics instead of competing everywhere, the company wishes
to identify the market segments that it can serve most effectively (Kotler& Keller, 2012)
Marketers usually are more effective when they target their markets. Target marketing strategy
involves three activities: market segmentation, market targeting, and market positioning (MSTPs
Model). A market segment consists of a large identifiable group within a market, with similar
wants, purchasing power, geographical location, buying attitudes, or buying habits. Segment
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marketing allows a firm to create a more adjusted product or service offering, price it and
distribute appropriately for the target audience (Anderson &Narus, 1995)
Consumer buying behavior
As Philip Kotler and Gary Armstrong, John Sounders and Veronica Wong (1999), put their
thought in principles of marketing; Markets have to be understood before marketing strategies
can be developed. The consumer market buys goods and services for personal consumption.
Consumers vary tremendously in age, income, education, tastes and extra factors.
Marketers must understand how consumers transform marketing and other inputs into
buying responses. Consumer behavior is influenced by the buyer's characteristics and by the
buyer's decision process (Philip Kotler et al., 1999)
In buying such cosmetic consumer products, the buyer goes through a decision process
consisting of need recognition, information search, and evaluation of alternatives, purchase
decision and purchase behavior. The marketers of such cosmetics are responsible to understand
the buyers' behavior at each stage and the influences that are operating to develop a significant
and effective marketing program for the target market. Generally a person's buying behavior is
the result of the multifaceted interplay of all these cultural, social, personal and psychological
factors (Kotler& Armstrong, Sounders & Veronica Wong, 1999)
1.2 Statementof the Problem
The marketing concept emerged in the mid-1950s as a customer-centered, sense-and-respond
philosophy. The job is to find not the right customers for your products, but the right products for
your customers (Kotler&Keller, 2012). They further thought as Companies are also shaping
separate offers, services, and messages to individual customers, based on information about past
transactions, demographics, psychographics, and media and distribution preferences. By
focusing on their most profitable customers, products, and channels, these firms hope to achieve
profitable growth, capturing a larger share of each customer’s expenditures by building high
customer loyalty.
As well, customers’ desires have become extra complex, whereby variety of services open by
beauty shops has increased. Today, Ethiopian beauty markets are facing challenges with stiff
16
competition. Therefore, to come across with customer needs is expected of them to win this
competition. So, it becomes vital for cosmetics to recognize the most influential marketing
strategy to play in the marketplace. With the help of this marketing strategy, marketers can
operate their assets to get maximum return (Kotler, 1999).
Marketing strategy is a marketing logic by which the company hopes to create customer value
and achieve profitable customer relationship.” (Kotler& Armstrong, 2012).
In place of the strategic planning process, a company has to formulate a marketing strategy
before entering a new market. For company marketers, formulation of a good marketing strategy
is of big importance since it contributes benefits, including raising the efficiency of new products
launches, cost reduction and improving product quality and market share performance. So,
before beginning to develop a product, the entrepreneur must show that the product will be
accepted by a target audience and their marketing strategy will accomplish this goal (ZelalemT.
& Negi R., 2009).
Companies like the cosmetics market needs to provide offerings or services that satisfy consumer
needs and expectations to ensure the company’s economic survival. In order to accomplish this
feat, they need to understand consumer buying behavior to help them assess their service
offerings. Consumers of beauty products go through a cycle of decision making processes means
(from information searching about the product and the company, data screening, evaluation to
making a purchase decision), which define their behavior in the consumption of the product they
purchase from these companies. The consumer buying process is a complex problem as many
internal and external factors impact on the buying decision of the consumer. Therefore,
organizations/companies would in some cases have a better position if they only do
supplying for some targeted behavior (Kotler, 2013).
The trend of cosmetics utilization has increased globally; however, what product design offers,
how to use and for who such product is more appropriate is not researched much enough. Lack
of well-designed updated strategy on marketer’s side and over all limited standards regulations
about cosmetics usage enhances consumer’s confusion on proper use of cosmetics and which
product type or style is much fitted with their consumer behavior characteristics, particularly in
developing countries, causes a prominent marketing challenge. The researcher is initiated to do
this study in some cosmetic super market there has no marketing related strategy for different
17
category of cosmetic products, price, promotion, place, people, process, physical evidence to
match with which demographic differences is feat and on the other side the customers don’t
know really which product is more appropriate to their natural and emotional behavior. Due to
marketers inappropriate practice customers are involved in miss-purchase decision and finally
disappointed with product and other related problem led to this market research mainly on
understanding the consumer’s behavior. Because without the base idea or know how of the
customers buying behavior the market have not achieved its short and long run objectives.
Related to strategies apart from an effort in trying to define the market, it is not fully
implemented and there is lack of consistency across the application in the cosmetic market. The
gaps on marketing strategy practice further affect the practice of consumer’s decision to be friend
with the image and benefit of unique cosmetic product& other mixes in consumers mind. To
bridge these gaps, this study is provide descriptive investigation of the impact of marketing
strategy on consumer buying behavior of cosmetics product in Gondar and generalizes its
findings to thenation cosmetics market.
Finally this study recommends about which strategy standards is appropriate for marketer and
customers and what its relation with consumer behavior also, which products really needs
differentiation for various customer groups was informed as guide for individuals and
organizations.
1.3. Objective of the study
1.3.1 General objective of the study
The general objective of the study is to investigate the impact of marketing strategy on the consumer
behavior in Gondar city four sub cities cosmetics product shops.
1.3.2 Specific objective of the study
The study has specific objective of determining under listed marketing strategy that are believed
to have impact on consumer behavior of cosmetics product shops.
 To examine the effect of product strategy on the consumer behavior in Gondar city four
sub cities cosmetics product shops
 To determine the effect of pricing strategy on the consumer behavior in Gondar city four
sub cities cosmetics product shops.
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 To investigate the effect of promotion strategy on the consumer behavior in Gondar city
four sub cities cosmetics product shops
 To examine the effect of distribution strategy on the consumer behavior in Gondar city
four sub cities cosmetics product shops.
 To established the relationship between marketing strategies and consumer behavior in
Gondar city four sub cities cosmetics product shops.
1.4. Hypothesis
On the grounded of the general and specific research objective establish the following statement
are testing by proper statistical measurements, SPSS, coefficient of variable and verified using
the regression model, the following hypothesis will used:
H1:
Product Strategy has Positive Significant effect on Consumer Behavior.
H2:
Price Strategy has Positive Significant effect on Consumer Behavior.
H3:
Promotion Strategy has Positive Significant effect on Consumer Behavior.
H4:
Distribution Strategy has Positive Significant effect on Consumer Behavior.
1.5. Scope of the Study
This study wasfocusedon the effect of marketing strategy practices on consumer buying behavior
in beauty and cosmetics super market in Gondar city specifically in Piassa, Arada, Maraki and
Azezzo sub-towns. The paper wasmotivated on customer’s side of cosmetics market. Moreover,
the research would be limit geographically. Due to the homogeneity of service delivery and
marketing offers in all beauty shops in the nation, the sample frame would be enclosed to Gondar
towns’ cosmetics super market shops. This study aims to assess what is the effect of marketing
strategy on consumer behavior of the particular cosmetics product in Gondar. Additionally, the
independent variable is delimited to only marketing mix strategy such as product strategy,
promotion strategy, pricing strategy, and distribution strategy and dependent variable is
delimited to consumer behavior thus achieving positive consumer behavior is the objective of the
business and help for development of the business operation. The population of the study was
limit to the customers of the cosmetics product at the time of surveying the study
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1.6 Limitation of the Study
There is no customer profile in cosmetics super market to conduct the research on random
probability sampling technique to generalize the respondent’s data.Due to novel nature of
marketing words it is difficult to translate for local Amharic language in understandable manner
to customers.Lack of enough published sources in selected super market areas and concerned
government institutions to review their strategy.
The respondents are not fully voluntarily to answer the survey as some questionnaire papers are
returned and incomplete answer.It is challenging to finalize the result and use cross-sectional
study as the consumer buying behavior changes rapidly and continuously.
1.7. Significance of the Study
This study is expected to be important to the cosmetic product marketers by providing adequate
marketing strategy to build profitable consumer behavior and examine and show how marketing
mix elements impact the consumer behavior. Moreover, the study was benefiting the firm in
understanding the causal relationship between marketing strategy and consumer behavior. In
other words, the marketers would be able to determine the factors of marketing strategy which
reflects on the cosmetic products consumer behavior. The study would help the company to
establish and apply more appropriate marketing strategy to increase customer satisfaction, obtain
competitive advantage and cope with dynamic business environment. In addition, findings of the
study would be useful to researchers and scholars as it will contribute to the body of knowledge
and it was also assist other researchers to further their studies on areas of interest not yet
exploited. Hence significance of the study was offer perspectives for the company in planning
for more effective marketing strategies to build their consumer behavior.
1.8 Definition of Terminologies
Marketing: is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational goals (Kotler, 2002).
Strategy: is the direction and scope of an organization over the longer term ideally, which
matches its resources to its changing environment, and in particular, to its markets, customers
and clients to meet stakeholder expectations (Johnson & Scholes, 1993).
20
Marketing strategy: is the marketing logic by which the business unit hopes to achieve its
marketing objectives (Kotler, 2005).
Marketing mix elements: the set of tactical marketing tools product, price, Placement, and
promotion, process, physical that the firm blends to produce the response it wants in the target
market (Kotler& Armstrong, 2012).
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives
in the target market (Philip Kotler, 2000).
Marketing strategy: This section explains the broad marketing strategy that will be
implemented to accomplish the plan’s objectives (Philip Kotler, 2000).
Product: A product is anything that can be offered to a market for attention, use or consumption
that satisfies a want or need (Kotler& Armstrong, 2012).
Price: Price is the amount of money charged for a product or service, or the sum of the values
that consumers exchange for the benefits of having or using the product or service (Kotler&
Armstrong, 2012).
Promotion: The specific mix of advertising, personal selling, sales promotion and public
relations that accompany uses to pursue its marketing objectives (Kotler& Armstrong, 2012).
Placement: The distribution strategy is to provide effective Placement convenience for the
customers to avail products and services of the service provider. It is related to the distribution
pattern, channel management, and retailer network of the telecom service providers (Sabu, 2014)
1.9 Organization of the Paper
The study contains five chapters in this proposal, the first chapter deals with introduction, which
includes the background of the study, background of the organization, statement of the problem,
objective of the study, significance and scope of the study. The second chapter deals with
literature reviews which is related to cosmetics industry market segmentation. The third chapter
deals with methodology, the fourth chapter deals with data analysis and interpretation. The fifth
chapter deals with summery, conclusion and recommendation of the study.
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CHAPTER TWO
2. RELATED LITERATURE REVIEW
2.1 Introduction
This chapter provides the review of related literature on the effect of marketing strategy on
consumer behavior as presented by various researchers’ scholars and authors. First, it will talk
over the definitions set by different marketing scholars on the word marketing strategy and
consumer buying behavior. Second, focus on discussing the pillars of marketing and other
extended service mixes. And the last, look at on conceptual studies of marketing strategies to
customer buying behavior.
2.2 Theoretical framework of the study
In today‘s dynamic business environment, appropriate strategy is required for business
companies to be competitive or a minimum of remain where they're in their field of operation
(Muthengi, 2015).Marketing strategy has become important tool globally for any organization to
stay in competitive market environment and was stronger(Gbolagade, 2013).
According to (Owomoyela, Oyeniy and Ola, 2013), marketing strategy may be a strategy that
organizations use to supply their target customer with quality products, at affordable price, offer
effective promotional strategy and interact with their distribution outlets hence creating demand
for his or her products and increasing performance. Marketing mix is a business tool that's
employed by organizations to realize a competitive advantage. As stated by(Mohammed Et al,
2014) marketing strategy is that the process which will allow a corporation to concentrate its
limited resources on the best opportunities to extend sales and develop positive behavior.
Marketing strategies and consumers behavior has been grounded on marketing mix theory and
theory of push and pull. Marketing mix theory remains used today to form important decisions
that cause the execution of a marketing plan. The thought of a marketing mix theory is to arrange
all aspects of the marketing plan round the habits, desires and psychology of the target market
(Muthengi, 2015).
Kotler and Keller (2012), They thought as Companies are also shaping separate offers, services,
and messages to individual customers, based on information about past transactions,
demographics, psychographics, and media and distribution preferences. By focusing on their
22
most profitable customers, products, and channels, these firms hope to achieve profitable growth,
capturing a larger share of each customer’s expenditures by building high customer loyalty.
Marketing strategies is a procedure by which companies react to situations of competitive market
and forces of market or react to environment forces and internal forces to enables the firms to
achieve its objective and goals in target market, through all aspects of the marketing mix, that
consist of products, prices, promotion, and distribution ( F.M. Moghaddam, 2011).
Marketing is about identifying and meeting human and social needs. One of the shortest good
definitions of marketing is “meeting needs profitably.” Marketing is a societal process by which
individuals and groups obtain what they need and want through creating, offering, and freely
exchanging products and services of value with others (Drucker, 1973).The aim of marketing is
to know and understand the customer so well that the product or service fits him and sells itself.”
Ideally, marketing should result in a customer who is ready to buy. All that should be needed
then is to make the product or service available (Bernd, 1999).
2.1 Marketing Strategy
Marketing in a cosmetic company is a continuous change of strategy as such that any cosmetic
company stands very much being the competition if they don’t change their way of marketing
(Businesswire.com, 2010). It is not a universal rule to follow like carbon copy but it is a
continuously changing process while the base is the same. Many researchers in this field add new
dimensions which are still helping modern-day marketing. A popular example of this is a change
of marketing mix from some decade which is now accepted globally even by the cosmetic
companies that a more developed 7P’s gives an essential cover of necessary marketing mix with
some researchers and theorists as they do deep research (Lehman & Wickham, 2014).
Before proceed through what is the Marketing Mix, the original 4P’s gives an additional
fundamental to marketing mix with some theorists as they do deep research on marketing.
According to Harrigan& Hulbert (2011), Marketing mix is helpful to the marketing perspective
of a cosmetic industry where to get the best possible return of money.
PRODUCT- The cosmetic product should meet with the need of consumers demand. (Malhotra,
2010). It should be what the consumers are buying that particular cosmetic product.Kotler and
23
Armstrong (2006) define a product as anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a want or need. They further define
a consumer product as the product bought by the final consumer for personal consumption.
Consumers buy products frequently, with careful planning, and by comparing brands based on
price, quality, design, features, brand name and sizes. Mohammad et al, (2012) also say that
product is the physical appearance of the product, packaging, and labeling information, which
can also influence whether consumers notice a product in-store, examine it, and purchase it.
PLACE- Jones, (2007) defines place as any way that the customer can obtain a product or
receive a service. Bowersox and Closs (1996) give distribution as another name for place.
According to them, it is the third element of the marketing mix, and it encompasses all decisions
and tools which relate to making products and services available to customers. Kotler and
Armstrong (2006), also define place or distribution as a set of interdependent organizations
involved in the process of making a product available for use or consumption by consumers. The
cosmetic product should be available at comfortable reach of targeted people. This can be street,
shopping mall or via e-commerce.
PRICE- (Kotler, 2007) defines price as a cost of producing, delivering and promoting the
product charged by the organization. (Zeithaml, 1988) is of the view that monetary cost is one of
the factors that influence consumers’ perception of a products value. Price can be stated as the
actual or rated value of a valuable product which is up for exchange; some define it as amount of
money paid for product (Kotler et al, 2005). The product should always reflect good value for
money. It is neither too cheap or overprice. It has been found that people are generally willing to
pay extra if they find little extra benefit. For example it is better to find dark patch removal with
fair complexion making cream.
PROMOTION- It is a method of telling people the benefit of certain cosmetic product. Using
TV stars or giving emotional or funny advertisement etc. can be used for this purpose (Miles,
2007).Zeithamlet al. (1995), describe promotion as part of specific effort to encourage customers
to tell others about their services. According to Duncan (2005), promotion is the key to the
market exchange process that communicates with present and potential stakeholders, and the
general public.
24
Every firm or store must cast itself into the role of communicator and promoter.
Hakansson (2005) also reports that promotion appears as an issue of how to create an optimal
mix of marketing communication tools in order to get a product's message and brand from the
producer to the consumer. Borden, (1984) defines promotion as sales promotion, advertising,
personal selling, public relations and direct marketing. Kotler, (2007) discovers that Promotions
have become a critical factor in the product marketing mix which consists of the specific blend
of advertising, personal selling, sales promotion, public relations and direct marketing tools that
the company uses to pursue its advertising and marketing objective.
As the marketing strategy is changing like direct or sell from shop to selling online via ecommerce the total marketing strategy is changing according to it. Even after 31 years since it is
made (54 years for the old 4P’s) the marketing mix is useful for every person who is associated
with consumer business whether it is small or big at every moment (Tracy, 2004). A good
marketer should learn to adapt with changing environment model.
The marketing environment consists of the task environment and the broad environment. The
task environment includes the actors engaged in producing, distributing, and promoting the
offering. These are the company, suppliers, distributors, dealers, and target customers. In the
supplier group are material suppliers and service suppliers, such as marketing research agencies,
advertising agencies, banking and insurance companies, transportation companies, and
telecommunications companies. Distributors and dealers include agents, brokers, manufacturer
representatives, and others who facilitate finding and selling to customers (Clifford, 2009).
2.3 Elements of Marketing Strategy
In order to achieve the marketing objectives, we need to have a strategy that includes different
elements. Here there are four major elements that are used in the literature to explain the detail of
marketing strategy. These are the Target market, Segmentation, Positioning and the marketing
mixes (Roger, 1994).
Segmentation, targeting and positioning practices refer to ways in which the cosmetic market
identifies specific groups within the population to sell their consumer products to and increases
the attractiveness of its products to this specific group of buyers. Segmentation includes dividing
population into groups according to certain characteristics, while targeting implies choosing
25
specific groups identified as a result of segmentation to sell products. Positioning refers to the
selection of the marketing mix that is the most attractive for the target customer segment (John
Dudovskiy, 2016).
2.3.1 Segmentation
At its most basic level, the term “market segmentation” refers to subdividing a market along
some commonality, similarity, or kinship. That is, the members of a market segment share
something in common. The purpose of segmentation is the concentration of marketing energy
and force on the subdivision (or the market segment) to gain a competitive advantage within the
segment. According to (Ferrell & Hartline, 2011), many segmentation approaches are traditional
in the sense that firms have used them successfully for decades. Some organizations actually use
more than one type of segmentation, depending on the brand, product, or market in question.
2.3.1.1 Market segmentation strategy in cosmetics market
The cosmetics industry presents some unique characteristics which require marketers and fashion
brand managers to add to the more traditional customer segmentation criteria, some additional
product-specific considerations. Now, the cosmetics industry is growing, and as such firms have
opportunities to experiment in terms of product development, and in terms of occasions of use to
intensify the range of customers that might be drawn to their brand. Beauty is the word that has
been used to identify a very wide variety of products that are used for personal care including
skin care, sun care, body care, hair care, makeup, and perfumes.
The beauty product consumer audience can be segmented in terms of consumer typologies. Four
macro-categories can be identified:
Traditional consumer: This is the person who normally goes to a perfumery reads magazines and
buys foundation, eye and lipstick products. The traditional consumer is an individual who is
influenced by media in his/her purchase decision process but does not invest higher own time in
the pursuit of the latest trend.
New entrant: This is a consumer that begins to put on makeup when becoming an adult, starting
from word of mouth, showing increasing interest towards these products and finally
experimenting with them. This new entrant is more influenced by the communication efforts put
forward by cosmetics companies, but he/she is unlikely to have a strong, personal passion for the
industry.
26
Beauty addicted: This is the customer that spends much of his/her time consulting blogs and
tutorials, almost in a state of competition with other addicted customers in learning the latest
news and rushes to buy the latest products regardless of actual needs. This is the “fashion victim”
of cosmetic products and could be considered a lead user, in terms of understanding the use,
positioning, and appeal of a new product.
Beauty expert: This is a professional makeup artist either because of his/her career or because of
a strong passion in the industry. This customer may have access to a variety of information
channels, but without being influenced by opinions, and being independent in purchase choices.
As a professional, he/she is likely to be especially loyal to a particular set of high-end brands to
access a degree of reliability and consistency in his/her work.
Figure 1Different segmentation of Cosmetic Industry
Source: international Journal of Commerce and Management Research
27
2.3.2 Targeting
Targeting is the next step in the sequential process and involves a business making choices about
segment(s) on which resources are to be focused. Targeting is the actual selection of the
segment.
Market targeting is the act of evaluating and comparing the identified groups and then selecting
one or more of them as the prospects with the highest potential. A marketing mix is developed
that will provide the organization with the best return on sales, by creating the maximum amount
of value to customers (Kotler& Keller, 2013)
2.3.3 Positioning
Positioning is the technique in which marketers try to create an image or identity for a product,
brand, or company. It is the 'place' a product occupies in a given market as perceived by the
target market. Positioning is something that is done in the minds of the target market. A product's
position is how potential buyers see the product. In other words, it is the act of designing the
company’s offering and image so that they occupy a meaningful and distinct competitive
position in the target customer’s mind. Positioning is expressed relative to the position of
competitors (Kotler, 2000)
Positioning provides the bridge between targeting and the marketing mix. Identifying possible
competitive advantages: offer consumers greater value, either through lower prices or by
providing more benefits that justify higher prices. In selecting the right competitive advantage
and positioning (Kotler, Bowen &Makens, 2006), emphasizes to avoid the occurrence of the
under positioning, which means failing ever to position the company at all, over positioning by
giving buyers too narrow a picture of the company and Confused positioning by leaving buyers
with a confused image of a company.
2.4 A Model of consumer behavior
Consumers make many buying decisions every day. Most large company’s research consumer
buying decisions in great detail to answer questions about what consumers buy where they buy,
how and how much they buy, when they buy, and why they buy. Marketers can study actual
consumer purchases to find out what they buy, where, and how much. But learning about the
whys of consumer buying behavior is not so easy the answers are often locked deep within the
consumer's head.
28
Figure 2.Model of Consumer Behavior
Source: Philip Kotler and Kavin Keller (1956).Marketing Management 12th edition, p 174
29
2.5 Conceptual Framework
The conceptual framework is a diagrammatical presentation of variables in the study. As the
study aims at assessing the effect of marketing strategies on consumer behavior with special
reference to the selected cosmetics super market in Gondar, Ethiopia, the research framework
designed in the way that represents two interrelated parts, which are marketing strategy and
cosmetic consumers buying behavior by classifying these two as dependent and independent
variables. The independent variables include: product strategy, pricing strategy, place strategy,
promotion strategy, people strategy, physical evidence and process marketing strategy while the
dependent variable is Consumer buying behavior in Gander.
A conceptual framework is aresearch tool proposes to assist the researcher to develop awareness
and understanding of the situation under inspection and to communicate it (Kuwu, 2014). The
conceptual model depicted below developed based on the literature review in order to
demonstrate the relationships among the study variables.
Independent variable (marketing strategy)
Dependent variable
Product strategy
Consumer
Behavior
Price strategy
Promotion strategy
Distribution strategy
Figure 3. Conceptual frame works
Source: Adopted from (Gbolagade, Adesola&Oyewale, 2013)
30
CHAPTER THREE
3. REASERCH METHODOLOGY
3.1 Introduction
This chapter describes research design and methodology, research approach, Population and
sample size determination, Data source and type, Data collection method, Data collection
procedure, method of data collection, and data analysis. The study focused on the assessment of
marketing strategies on consumer behavior cosmetics product. Additionally discusses on the
issues of reliability and validity and determines its ethical considerations of the study.
3.2 Research Approach
The matter of the research conduct on quantitative approaches to collect and analyze the data
having quantitative nature that would be applying for the data collection from respondents via
structured questionnaire. Therefore, the researcher has conducted this study by collecting all the
necessary quantitative data from the cosmetics customers.
3.3 Research Design
For the current research study, the quantitative-based cross-sectional research design was used
since it allows observing the actual respondents internal state at the time of surveying, as well as
measuring multiple outcomes at the same time. Descriptive method is a method that describes
the study systematically, factually and accurately utilizing facts, behaviors and relationship
between the phenomenon’s will be studied (Naik, 2010).
3.4 Data source and Data type
The study used a primary source of data collected from the survey and interviews. In order to get
adequate and relevant information the study use well-designed questionnaire as best instruments.
According to (Malhotra, 2005), primary data are originated by the researcher for the specific
purpose of addressing the problem at hand, even if obtaining them can be expensive and time
consuming, primary data being the most significant are gathered through structured
questionnaires, the questionnaire is prepared in Amharic as well as in the English language to
enhance the reliability of the study.
31
3.5. Description of the Study Area &Target Population of the Study
The study area located in the town of central Gondar, compromises areas such as Arada, Piassa,
Maraki and Azzezosub-cities areas. The population in Gondar for June 2, 2022 is 252 537.
Gondar is one of 40 cities in Ethiopia and ranks 4 in the Ethiopia population. Gondar city
population data has been obtained from public sources. On the Population HUB website you can
find out the number of people in any of the regions of the Earth. In this study, the target
populations are cosmetic users in such listed sub-towns. The main reason for the selection of
those four areas is their crowded nature of market with large size population and the cosmetic
super markets are located in that area.
3.6. Sampling Technique
In this study a non-probability convenience sampling was adopt to collect data directly from the
customers of cosmetics market in such four main sub-cities from the 384 respondents.
Though random sampling is preferred for such kind of studies that need to make a statistical
inference, the nature of the research subjects in this particular research made it difficult to
undertake random sampling. It is not possible to get a list of customers profile in such cosmetic
super market to undertake random sampling survey.
The researcher distributes the questionnaire in the super market locations for a research period.
The credible explanation for representativeness of this sample is that customer arrivals are
random in nature.
3.7. Sample Size Determination
In order to; determine the sample size, the study adopted a statistical formula developed by
(Saunders et al, 2009).The researcher set the confidence level at 95% with 5% error. The reason
of choosing this sample size was to generalize the findings of this research to the population of
customers Cosmetics market. Therefore the sample size of employees and customers, uncertain
population is computed as follow:
𝑍2
𝑛= 2×𝑝×𝑞
𝐸
Assumptions
32
95% confidence level, and E=+ 5%
Where:
Z= Confidence interval in standard error units.
P= Estimated proportion of success.
q= (1-p) or Estimated proportion of failures.
E= the maximum allowance for error between population mean and sample mean.
P= 0.5, q= 0.5, Z= 1.96
𝑛=
𝑍2
𝐸2
×𝑝×𝑞
(1.96)2
(0.05)2
× 0.5 × 0.5
3.8. Data Collection Technique
The study uses both primary and secondary data collection technique. Through structured
questionnaires and secondary data collection methods by reviewing journals, articles, books,
cosmetic policy papers, the annual statement of cosmetic stores and online reference to make the
study fruitful.
Structured questions method of data collection is quite popular, particularly in case of big
enquiries (Kothari, 2004). The questionnaire in this research contains general and specific
questions. The general questions are concerning to gather general information about the
respondents like gender, age, and education and so on. The specific questions construct measures
are based on extensive review of the literature on marketing segmentation and consumer buying
behavior. The respondents would asked to rate their level of perception of the segmentation
variables on five points of Likert scale.
3.9. Data Analysis Methods
The researcher collects the required data through the data collection method and screened,
edited, classified and presented in the form of tabulation, pie chart and other data analysis and
presentation methods. The data analysis used both descriptive and inferential statistics. The result
is presented in percentage, frequency distribution, mean and standard deviation. On the other
33
hand, in order to investigate the effect of independent variables on the dependent variable,
inferential statistics that is multiple linear regressions is carried out by using SPSS (statically
package for social science) version 20 software.
Multiple regression equation assumes the form:
Y = a + b1X1 + b2X2……
Where X1 and X2 are two independent variables and Y being the dependent variable, Kothari
(2004). The regression model for this study is:
𝑌 = 𝛽𝑜 + 𝛽1 𝑃𝑅𝑆 + 𝛽2 𝑃𝑅𝑆 + 𝛽3 𝑃𝑅𝑂 + 𝛽4 𝐷𝐼𝑆 + 𝑒𝑖
Where
Y
Consumers Buying Behavior
βo
constant,
β1…β4
The coefficient of independent variables:
PRS
Product,
PRI
Price,
PRO
Promotion,
DIS
Place and
3. 10. Validity and reliability of data
Validity alarms the degree to which a question measures what it is proposed to measure. To
guarantee the validity of the study, the researcher discussed with the advisory about the
questioner in advance allocating. In order to check that the measures are reliable or not the
researcher applied Cronbach’salpha coefficient the most used instrument for checking internal
consistency of the instrument.
As far as validity of the instrument is concerned the instrument of the study was developed on
the previous conceptual and theoretical frame works in the area.
3.11. Ethical considerations
When the researcher conducts this study, the information collected from the respondents is kept
secretly to fulfill their right of privacy. The study would not expose the output of the company
34
and the response of the respondents. It also secures the morale and ethics of the cosmetics market
participants and the information require only for academic purpose. Respondents would be
informed about what their secrecy and confidentiality is granted. Also, they was ensure that
personality identifying information is not collect and only relevant components are assessing.
Finally, respondents would be introduced to the topic and the aim of the thesis, as well as
provide with informed consent and assure that at any time of questionnaire filling they are able to
remove and the respondents are informed to the participation is voluntary.
35
CHAPTER FOUR
4.1. DATA ANALYSIS AND RESULT DISCUSSION
This chapter contains the data analysis, result interpretation and presentation of the survey data
collected through self-administered questionnaire. The data collected through questionnaire from study
respondents were translated to Amharic language and analyzed using SPSS version 20. It consisted of
three parts. The first part is concerned with the description of the demographic characteristics of
the respondents. The second section of the survey focuses on the impact of marketing strategies
(product strategy, pricing strategy, promotion strategy and distribution strategy) on customers
buying behavior in Gondar city four purposely selected sub cities( Piyasa, MarakiArada and
Azezo). The data used in this research were collected by structured questionnaire from cosmetics
product consumers at cosmetics seller shops in four sub cities. And the likert scale questions
collected from respondents can be analyzed as a scale measurement. The data collected in
questionnaire form was structured as a 5 scale likert scale ratings. Then the collected data were
analyzed mainly by using descriptive and inferential statistics.
4.2. Response Rate
Coming to the respondent’s response rate, from the total of 384distributed questionnaires all 324
questionnaires were collected or returned, which is 84% from the total distributed questionnaires.
After checking the retrieved questionnaires, the 324 were found valid for statistical analysis. So,
84% of the response rate was taken for this study. Therefore, over all discussion and interpretation
of the result was done accordingly and presented on the next sections.
4.3. Demographic Background of the Respondents
In order to have clear understanding about the result of the study, it is important to be familiar with
demographic characteristics of the sample respondents who are close to public budget. Then in this
sub section, variables such as gender, age, educational level, marital status and work experience
and in each finance offices were analyzed. The data processed by SPSS is summarized as follows
by figures and graphs.
36
Table 4. 1: Respondents
Demographic characteristics
Variable
Category
Frequency
Percentage
Gender
Male
120
37
Female
204
63
Total
324
100
18-25 years
91
28.1
26-35 years
114
35.2
36-45 years
83
25.6
46-55 years
36
11.1
Above 55 years
-
-
Total
Married
324
160
100
49.4
Single
122
37.7
Divorced
24
7.4
Widowed
18
5.6
Total
324
100
Unemployed
79
24.4
Employed
102
31.5
Housewife
143
44.1
Retired
-
-
Total
324
100
Income/ Monthly by Less than 3000
73
22.5
Birr
3001- 6,000
160
49.4
6001-9,000
79
24.4
Above 9,000
12
3.7
Total
324
100
Age
Marital status
Current Occupation
Source: Researcher own Survey Data. 2014
As depicted from the above table 4.1. The demographic characteristics of respondents were
assessed. The result showed that majority 63% of respondents were female and 37 % of them were
male. This indicated those females are consuming cosmetics products as compared to male.
37
The researcher asked the cosmetics consumers about their age range; majority 35.2% of
respondents between 26- 35 years old , 28.1% of them were at age range of 18- 25 years old,
25.6% of respondents also between 36-45 years old. The few respondents which account 11.1%
were at 46- 55 years old. This indicated that the adolescent peoples are the most cosmetics
consumer in the study areas next to young population.
Regarding with marital status, the majority 49.4% of respondents were married, 37.7% of them
were single and 7.4% and 5.6% of respondents were divorced and widowed respectively. This
showed that married respondents were high cosmetics consumers as compared to others (single,
divorce and widowed).
Concerning on respondents occupational status, majority 44.1% of study participants were
housewife, while 31.5% of them were employed at different areas but the rest 24.4% of
respondents were unemployed.
The respondent’s monthly income level was assessed by this study. The result showed that 49.4%
of study participants have monthly income from 3001 -6000 Ethiopian Birr, 24.4% of them have
from Birr 6001- 9000 per month, Very few respondents (3.7%) only have above 9000 birr monthly
income. But respondents which account 22.5% have less than 3000 birr per month. This indicated
that respondents who have moderate income consume cosmetics.
4.4. Descriptive Analysis
4.4.1. Marketing Strategies that Affecting Consumers Buying Behavior
This section looks major marketing strategies that affecting consumer behavior in Gondar city four
sub-cities cosmetics product selling shops. In descriptive statistics mean and standard deviation
would be used. The mean indicated to what extent sample of the study averagely agree or disagree
with different marketing strategy statements. The higher the mean, the more respondents agree
with the statement. The lower the mean, the more respondents disagree with the statement. On the
other hand, standard deviation shows the variability of an observed response from a single sample.
The descriptive analysis also presented by frequency and percentage of respondents on each
marketing strategies statements. Therefore; the descriptive result of four marketing strategy factors
results presented by both frequencies and mean scores. The percentage and mean values were
presented in tables, together with standard deviation of values for each item.
38
4.4.1.1. Product Strategy
The product quality, attractiveness of the product design, the product feature and ingredients and
the product package were assessed under this section. Respondent’s response would be presented
by frequencies, percentage, mean and standard deviation in the following table 4.2
Table 4. 2. Product Strategy
Product strategy Items
The product have quality as you expect
The product design is attractive to you
The product feature is attracts you to use
The product ingredients are important to your
beauty
The product package is convenience to handle
The packaging helps to identify the product
from others
Measurement
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Strongly Dis agree
Disagree
Neutral
Agree
Strongly Agree
Total
Frequency
16
184
102
22
324
26
3
74
129
92
124
Percentage
4.9
56.8
31.5
.6.8
100
8
0.9
22.8
39.8
28.4
100
Mean
3.401
Std. Dev.
0.690
3.401
3.796
0.690
1.110
3.796
1.110
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
22
48
155
99
124
26
3
83
116
96
124
22
48
1
156
97
124
6.8
14.8
47.8
30.6
100
8
0.9
25.6
35.8
29.6
100
6.8
14.8
0.3
48.1
29.9
100
3.805
1.214
3.805
3.780
1.214
1.125
3.780
3.796
1.125
1.212
3.796
1.212
Strongly Disagree
30
9.3
3.413
1.370
Disagree
Neutral
Agree
Strongly Agree
Total
88
10
110
86
324
27.2
3.1
34
26.5
100
3.413
1.370
Source: Researcher own Survey Data. 2014
39
As indicated from the above table 4.2, the majority 56.8% of respondents were respond neutral
on the product quality. But 31.5% of respondents were agreed that the cosmetics product quality
was as expected. The other 6.8% of them were strongly agreed that the product have quality as
expected. Very few (4.5%) of study participants were disagreed that the product have no quality
as expected. This finding showed that majority cosmetics customers ere not sure the product
have quality or not as expected.
Regarding with product design, majority 39.8% of respondents were agreed that the product
design was attractive for them, 28.4% of study participants were strongly agreed that the product
design was attractive. The other 8.9% of respondents strongly disagreed that the product design
was not attractive for them. This indicated that majority cosmetics customers in Gondar city four
sub cities of were attracted by the product design.
The respondents were asked to respond their perception on the attractiveness of product feature.
As revealed from table 4.2, majority 47.8% of respondents were agreed that the product feature
was attractive to use, 30.6% of them were strongly agreed that the product feature was attractive
to use. But other 14.8% and 6.8% of study participants were disagreed and strongly disagreed
that the product feature was not attractive to use. From this result, it can be concluded that
majority cosmetics customers in the study area was attracted by product feature.
Concerning on the products ingredients, respondents were asked to provide their observation on
product ingredients. Majority 35.8% of study participants were agreed that the product
ingredients are important for keeping beauty, 29.6% of participants was strongly agreed on issue.
25.6% of them were replied neutral. The rest 8.9% of participants were disagreed that the
product ingredients were not important for keeping beauty.
Respondents were asked to respond their opinion on the handiness of packed product to handle.
As shown from above table 4.2, majority 48.1% of respondents were agreed that the product
package was convenience to handle, 29.9% of participants were strongly agreed that the product
package was convenience to handle, 6.8% and 14.8% of study participants were strongly
disagreed and disagreed that the product package was not convenience to handle. The rest 0.3%
of them were replied neutral. From this result, it can be concluded that package products
wasconvenience to handle formajority cosmetics customers in the study area.
The last product strategy question was the importance of packaging. Majority 34 % of
respondents agreed that packaging was important to identify the product from other products,
40
27.2% of them were disagreed that packaging was not important to identify the product from
other products,26.5% of respondents also strongly agreed that packaging was important to
identify the product from other products. The rest 9.3% was replied disagreement on the issue.
Others were neutral. This indicated that most of cosmetics consumers in the study area identify
the product from other similar products by product packaging. Other many cosmetics consumers
in the study area could not identify the product from other similar products by product
packaging.
To summarize, cosmetics consumers buying behavior in the study areas was affected by product
strategy segments. Consumers were not sure whether the product quality was as they expected or
not, consumers were attracted by product design which implies their behavior would be forced to
buy that product. Product feature, product ingredients and product package was additional
segments affecting consumers buying behavior in the study area.
4.4.1.2. Price Strategy
The priceof the product, fairness of the product price, affordability to buy the product and
comparativeness of the product with other personal care products would be presented to the
study participants. The result showed in the table 4.3 below:
Table 4. 3. Price Strategy
Price strategy Items
The price shows products quality
The price is fair to purchase the cosmetics
product
The price is affordable to pay with your
buying power
Measurement
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Frequency
103
101
102
16
2
324
14
38
16
170
86
124
Percentage
31.8
31.2
31.5
4.9
0.6
100
3.4
11.7
4.9
52.5
26.5
100
Mean
3.401
Std. Dev.
0.690
3.401
3.796
0.690
1.110
3.796
1.110
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
4
18
2
176
124
1.2
5.6
0.6
54.3
38.3
3.805
1.214
41
The price has relationship with product
value
The price competitive with other personal
care products
Total
124
100
3.805
1.214
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
36
90
22
94
82
124
11.1
27.8
6.8
29
25.3
100
3.780
1.125
3.780
1.125
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
30
98
10
110
76
124
9.3
30.2
3.1
34
23.5
100
3.796
1.212
3.796
1.212
Source: Researcher own Survey Data. 2014
As shown from table 4.3, study participants were asked to respond about price strategy of the
product. Based on the majority response, 31.8%, 31.2% and 31.5% of respondents were strongly
disagree, disagree and neutral on the relationship of product price and product quality. As
revealed from the table 4.3, most of cosmetics consumers disagreed that the price and the
product quality was not compatible. The means score of 3.401 showed that the product quality is
not as its high price. The price was very expensive.
Regarding with fairness of the product, 52.5% of respondents agreed that the price was faire to
purchase the product, 26.5 % of them were strongly agreed that it was faire to purchase the
product. Other 11.7%, 4.3% respondents were disagreed and strongly disagreed that the price
was not faire to purchase the product. This implies that the price of the cosmetics product was
faire for consumers in the study areas.
The respondents were asked about price affordability of the product. The result showed that
54.3% of respondents agreed that the product was affordable to pay buying power, 6.8% of them
were disagreed that the price was not affordable to pay buying power. In relation with price and
product value, 29% and 25.3% of respondents agreed and strongly agreed that the product price
has relationship with product value respectively. Contrary, 27% and 11.1% of respondents
disagreed and strongly disagreed that the product price has not relationship with product value.
The rest 6.8% of them were neutral. This showed that product price and product value has
relationship.
42
The last price strategy question was about price competitiveness with other personal care
products. Respondents were required to respond their perception of price competitiveness of the
product with other personal care products. The majority 34% of respondents were agreed that the
price was competitive with other personal care products, 23.5% of them were strongly agreed
that the price was competitive with other personal care products. But 39.5% of study participants
were believed that price was not competitiveness with other personal care products, 3.1% of
them were neutral on the issue. This finding depicted that majority cosmetics consumers agreed
that the price of the cosmetics was competitive with other personal care products. All most the
same majority cosmetics consumers believed that the price of the cosmetics was not competitive
with other personal care products in the study areas.
To sum up price strategy was significantly affects consumers buying behavior due to price
incompatibility with quality.
4.4.1.3. Promotion Strategy
The researcher required to indicate the respondent’s level of agreement on promotion strategy of
the cosmetics products. The product which is promoted by famous peoples, whether the quality
of the product has a relation with promotion, the time duration of promotion and accessibility of
the promotion for all customers would be presented on the table 4.4 below:
Table 4. 4: Promotion Strategy
Promotion strategy items
The product promoted by famous people
Promotion has relation with product
quality
The promotion is frequently addressed
Measurement
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
Frequency
10
189
109
16
324
26
3
87
116
92
124
Percentage
3.5
58.3
33.6
4.9
100
8
0.9
26.9
35.8
28.4
100
Mean
3.401
Std. Dev.
0.690
3.401
3.796
0.690
1.110
3.796
1.110
Strongly Disagree
Disagree
Neutral
Agree
22
62
150
6.8
19.1
46.3
3.805
1.214
43
The promotion reached to all customers
The promotion effective to answer your
question
Strongly Agree
Total
90
124
27.8
100
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
92
116
87
26
3
124
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
22
62
150
90
124
3.805
1.214
28.4
35.8
26.9
8.0
0.9
100
3.780
1.125
3.780
1.125
6.8
19.1
46.3
27.8
100
3.796
1.212
3.796
1.212
Cumulative mean and Standard deviation
3.7156 1.3996
Source: Researcher own Survey Data. 2014
As indicated from table 4.4, promotion strategy questions were provided to respondents. The
majority 58.3% of study participants were implied neutral. This showed that respondents were not
sure whether product promotion by famous individuals affects their buying behavior. 33.6% of
respondents were agreed that product promotion by famous peoples influences buying behavior of
consumers.
Regarding promotion and product quality, majority 35.8% and 28.4% of respondents agreed and
strongly agreed that promotion and quality has direct relation respectively. The other 26.9% of
them were neutral on the issue. The rest 8.9% of them were believed that promotion and quality
has no relation. This concluded that promotion and quality product has relation and consumers
buying behavior influenced by product promotion. The promotion strategy was not reach for all
customers. As the result confirmed 35.8% of consumers disagreed that the promotion reached for
all consumers, 28.4% of them were strongly disagreed that promotion reached for all consumers.
The rest 26.9% of respondents replied neutral. This finding concluded that promotion was not
reach for all cosmetics product. This directly related with consumers poor awareness on product
price, quality, design and other product characteristics.
44
4.4.1.5. Distribution Strategy
The distribution strategy of the cosmetics product in the study area was affected by different
specific segments. This segments changes consumers behavior during distribution availability to
all markets, the system how to distributed the product, distribution channel and placement was
affected the consumers buying behavior in Gondar city four sub cities cosmetics product markets.
Table 4. 5. Distribution Strategy
Distribution strategy items
The product available in all market
Measurement
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
The distribution system reduces your
Strongly Disagree
transportation cost
Disagree
Neutral
Agree
Strongly Agree
Total
The distribution channel easy to order the Strongly Disagree
product
Disagree
The placement of cosmetics product
attractive to you
Frequency
2
230
92
324
30
95
137
62
124
-
Percentage
0.6
71
28.4
100
9.3
29.3
42.3
19.1
100
-
Mean
3.401
Std. Dev.
0.690
3.401
3.796
0.690
1.110
3.796
3.805
1.110
1.214
30
9.3
Neutral
95
29.3
Agree
137
42.3
Strongly Agree
62
19.1
Total
124
100
3.805
1.214
Strongly Disagree
-
-
3.796
1.212
Disagree
30
9.3
Neutral
95
29.3
Agree
137
42.3
Strongly Agree
62
19.1
Total
124
100
3.796
1.212
Source: Researcher own Survey Data. 2014
45
The respondents were asked to respond their perception towards distribution strategy. The result
showed majority 71% of respondents were replied neutral regarding the availability of the product
in all markets, 28.4% of study participants were agreed that the cosmetics product was available in
all markets in the study areas but 0.6% of them were not believed that the product was not
available in all markets.
Regarding with product distribution system; the majority 42.3% of respondents were agreed that
distribution system reduces transportation cost. Other 29.3% of them were replied neutral on the
issue. The rest 9.3% of study participants were disagreed that distribution system reduces
transportation cost.
The researcher was asked respondents about distribution channel. The majority 42.3% of them
were agreed that distribution channel was good to easily order the product, where 29.3% of
respondents were neutral. This finding concluded that distribution channel was good to easily
command the product.
The last distribution strategy question was about placement of the product. The sums of 61.4 % of
respondents were agreed that cosmetics consumers in the study area were attractive by placement
of the product, while 29.3% of respondents replied neutral on the same issue. But the rest 9.3% of
respondents were believed thatplacement of the product did not attractive them. This finding
concluded that cosmetics consumers in the study area were attractive by product placement.
4.5. Reliability Analysis Test
To be reliable an instrument must be consistent in such a way that it was considered stable and
can be depended on to yield similar test results under similar circumstances (Borg & Gall, 1996)
as cited by (Musyoka, 2015). According to Field (2005) a Cronbach’s α > 0.7 implies the
instrument is relatively good measurement tool therefore reliable. Cronbach’s test was run on the
fourmarketing strategy variables (product strategy, price strategy, promotion strategy and
distribution strategy). The results obtained were summarized and presented in the table below.
Over all Cronbach alpha value for twenty 25 items is 0.908.
46
Table 4. 6 Reliability Test
Marketing strategy Variables
Number of questions
Cronbach’s alpha
Product strategy
6
.940
Price strategy
5
.837
Promotionstrategy
5
.924
Distributionstrategy
4
.901
Consumers Buying behavior
5
.916
Over all reliability
25
.908
Source, SPSS Data, 2014
As the table 4.6 shows, the alpha value for four independent variables, one dependent variable
and overall reliability for independent variable which is above 0.7 that was the minimum
requirement for consistency of items (Hair et al., 1998). This implies that study participants of
Gondar city four sub city cosmetics markets consumers answered the whole questions
consistently. Besides this, the value of alpha for product strategy was (0.940), price strategy
(0.837), promotion strategy (0.924), and distribution strategy (0.901). The dependent variable
(consumers buying behavior also consistent at alpha value of (0.916).The overall reliability was
also 0.908.
4.6. Test of Assumptions
4.6.1. Multicollinearity
Collinearity is where two independent variables are highly correlated or multicollinearity, where
more than two independent variables are highly correlated and this can have damaging effects on
multiple regression. Different authors suggest different way of identifying multicolinearity
problem. However as rule of thumb (Yfield, 2009) suggested that variable inflation factor (VIF) of
any independent variables should not be greater than 10, or the tolerance should not be less than
0.1. According to the results in table below, all the independent variables have small (less than10)
and greater than (1) values which implies that there is no a problem of multicollinearity.
47
Table 4. 7. Multicolliniarity statistics
Variables
Collinearity Statistics
Tolerance
VIF
(Constant)
Product strategy
1
Price strategy
Promotion Strategy
Distribution
a. Dependent Variable: Consumers Buying Behavior
.197
.132
.106
.580
5.073
7.573
9.441
1.723
4.6.2. Normality Test
For Normality Test histogram of residuals and normal probability plot (NPP) were used.
Histogram of residuals revealed that the residuals are normally distributed around its mean of
zero. The normal probability plots were used to test the normality of data because a straight line
gives the impression to fit the data reasonably well. According to Brooks (2008) normality can
be a problem when the sample size is small (< 50) and highly skewed data create problems.
Accordingly the result of this analysis shows that there is not a normality problems in the data
used in this study.
48
Source; Computed from SPSS result.
Figure 4.6 Normal probability plot test.
49
4.8. The Relationship between Marketing Strategy and Consumers
Buying Behavior
4.7.1. Correlation Analysis
The study conducted a Pearson correlation analysis to measure the strength of linear association
between two variables. Pearson correlation coefficients reveal the magnitude and direction of
relationships (either positive or negative) and the intensity of the relationship (-1.0 to +1.0).
General guidelines of the relation of .10 to .30 are considered weak, correlations of .30 to .70 are
considered moderate correlation and of .70 to .90 are considered large and correlations of .90 to
1.00 are considered strong (Marczyk, et al., 2005
Table 4. 8: Pearson
Correlation Result
Product
Price
strategy strategy
Promotion
Distribution
Consumers
strategy
strategy
buying
behavior
.874**
.882**
.534**
.888**
.000
.000
.000
.000
324
324
324
324
324
.874**
1
.920**
.525**
.872**
.000
.000
.000
Pearson Correlation
Product strategy
1
Sig. (2-tailed)
N
Pearson Correlation
Price strategy
Sig. (2-tailed)
.000
N
324
324
324
324
324
.882**
.920**
1
.632**
.906**
Sig. (2-tailed)
.000
.000
.000
.000
N
324
324
324
324
324
.534**
.525**
.632**
1
.668**
.000
.000
.000
324
324
324
324
324
.888**
.872**
.906**
.668**
1
Sig. (2-tailed)
.000
.000
.000
.000
N
324
324
324
324
Pearson Correlation
Promotion strategy
Pearson Correlation
Distribution strategy Sig. (2-tailed)
N
Pearson Correlation
Consumers buying
behavior
**. Correlation is significant at the 0.01 level (2-tailed).
Source : SPSS bivariate , survey data , 2014 E.C
50
.000
324
As revealed from the correlation of the study variable the investigator conducted a Pearson
correlation. From the study findings showed that there is positive and strong correlation between
cosmetics consumers behavior and product strategy as shown by the correlation factor (r=0.888)
at 0.000 level of confidence. The study also established positive and strong correlation between
pricing strategy and consumers buying behavior as shown by the correlation result of(r= 0.872)
at 0.000 confident levels. The correlation result of promotion strategy was also observed in the
table, a positive and strong correlation (r=0.906) at 0.000 confident level. This showed that
promotion and consumers buying behavior has strong correlation as compared to other factors.
When cosmetics product was frequently promoted by famous peoples, quality of the product is in
relation with promotion and promotion is reached to all consumers, the consumers buying
behavior would be increased. The distribution strategy correlation result showed that moderate
correlation was established. As indicated from table 4.8 the Pearson correlation (r=0.668) at 0.00
confident level. This showed that availability of the product in all markets , distribution system,
distribution channel and placement of the cosmetics product moderately correlated with
consumers buying behavior.
To summarize, except distribution strategy, product strategy, price strategy and promotion
strategy has strong and positive correlation with consumers buying behavior in the study area.
4.9. The Impact of Marketing Strategy on Consumers Buying Behavior
4.9.1 Regression Analysis
The researcher employed multiple linear regression estimates the coefficients of the linear
equation, involving one or more independent variable (Field, 2005). Multiple linear regressions
were conducted in order to determine the explanatory power of the independent variables
(product strategy, price strategy, promotion strategy and distribution strategy) to identify the
relationship.The marketing strategy segments (product strategy, price strategy, promotion
strategy and distribution strategy) are explanatory variables which make influence on predicted
variable (consumers buying behavior) in Gondar city four sub cities cosmetics product markets.
The independent variable is the one that you use to predict what the other variable is. The
dependent variable depends on what independent value you pick. It also responds to the
explanatory variable and is sometimes called the response variable. The researcher sought to
51
reveal the variation of four marketing strategies determination by R square result in the model
summary table. The research model also checked at ANOVA table. The significance impact of
and magnitude of four marketing strategy variables also presented in unstandardized B
coefficient.
Table 4. 9: Regression Analysis of Model Summary
Model
R
R Square
Adjusted R
Std. Error of the Estimate
Square
.937a
1
.879
.877
1.60813
a. Predictor: (Constant), Product Strategy, Price Strategy , Promotion Strategy, Distribution
Strategy
b. Dependent variable: Consumers Buying Behavior
Source: Researcher Own Survey Data, 2014
The result of regression analysis presented in Table above, indicated significant relationship
between consumers buying behavior and predictor variables. This means independent variables
determine the dependent variable i.e. Consumers buying behavior. R square measured the
goodness of fit of the explanatory variable in explaining the variation in dependent variable. The
R square (𝑅 2 = .879) showed that explanatory power of all independent variables in the study.
Hence product strategy, price strategy, promotion strategy and distribution strategy jointly
determine (explain) 87.9% of the variation in consumers’ buying behavior. The rest 12.1% of
consumers buying behavior to purchase cosmetics product were determined by the variables
which were not included in this study.
Table 4. 10: Analysis of variance (ANOVA)
Model
Sum of Squares
Regression
1
Residual
Total
df
Mean Square
5965.258
4
1491.314
824.964
319
2.586
6790.222
323
F
576.667
Sig.
.000b
a. Dependent Variable: Consumers Buying Behavior
b. Predictors :(Product Strategy, Price Strategy , Promotion Strategy, Distribution Strategy)
Source: Researcher Own Survey Data, 2014
52
The analysis of variance shows the overall significance/acceptability of the model from a
statistical perspective. As the significance value of F statistics shows a value of 576.667 and pvalue (. 000𝑏 ), which is less than 𝑝 < 0.05 , the model is significant. This indicates that the
variation explained by the model is not due to chance.
Table 4. 11: Regression Coefficient Table
Model
Unstandardized Coefficients
Standardized
t
Sig.
Coefficients
B
(Constant)
1
Std. Error
-.702
.492
Product strategy
.285
.034
Price strategy
.179
Promotion strategy
Distribution strategy
Beta
-1.427
.155
.373
8.482
.000
.056
.173
3.225
.001
.283
.057
.297
4.950
.000
.313
.042
.191
7.452
.000
a. Dependent variable: Consumers Buying behavior
Source: Researcher Own Survey Data, 2014
According to the regression equation established, taking all four marketing strategy variables
constant, customers buying behavior will be -0.702. The analyzed data findings also shows that
taking all independent variables at zero, a unit increase in product strategy will lead to a 28.5%
increase in the consumers buying behavior in the study areas. A unit increase in price strategy will
lead to a 17.9% increase in the customers buying behavior. A unit increase in promotion strategy
will lead to a 28.3% increase in customers buying behavior. A unit increase in distribution strategy
will lead to a 31.3% increase in customers buying behavior in the study areas.
The significance effect of marketing strategy on consumers buying behavior was predicted in this
study. The result showed that all predictor variables have significance effect on consumers buying
behavior in the study area. As the table above the above coefficient table indicated that product
strategy has a positive and significant effect on consumers buying behavior in Gondar city four
sub cities cosmetics products with a coefficient of (0.285, p=0.000). This revealed that product
strategy contributes 28.5% towards consumers buying behavior in the study area. . price strategy
had positive and significant effect on consumers buying behavior in Gondar city four sub cities
53
cosmetic markets with unstandardized beta coefficients (.179, p=0.001). This result showed that
price strategy contributes 17.9% towards consumers buying behavior in Gondar city four sub cities
cosmetics product markets. The promotion strategy has sig value of p=.000 and variation
determination of 28.3% and p=.000. The highest variation was recorded on distribution of products
and it has p value of 0.000. This depicted that distribution strategy contributed about 31.3%
towards consumers buying behavior in Gondar city four sub cities cosmetics products.
In conclusion, all marketing strategy variables (product strategy, price strategy, promotion
strategy and distribution strategy) significantly affects consumers buying in Gondar city four sub
cities cosmetics product markets.
4.9.2 Hypothesis Testing
The decision criterion to accept or reject the hypothesis in this study was: Accept Ha if p < 0.05
and Reject Ha if p > 0.05. The decision has made based on the significance value of the variables.
H1:Product strategy has positive significant impact on consumer buying behavior.
As shown in the table 4.11 above, unstandardized B coefficients result product strategy has a
positive and significant effect on theconsumer buying behavior as it is shown by its positive beta
coefficient which is .285 with its significant p value, as shown in its p-value which is 0.000 and
less than the study’s level of significance i.e., 0.05, the variable has positive and significant effect
on consumer buying behavior. Therefore, the first hypothesis (H1) stating that “Product strategy
has positive significant impact on consumer buying behavior.” is accepted.
H2:Price strategy has positive significant effect on consumer buying behavior.
As it was clearly depicted in the above table 4.11, unstandardized B coefficients of price strategy
has a small but positive beta coefficient of .179which means that it has smallpositive effect on
consumer buying behavior with significance value of .001. This indicates that the variable ‘price
strategysignificantly affectsconsumer buying behavior. As its significance value is less than the
significant level of the study is 0.05, it has significant effect on consumer buying behavior.
Therefore, the second hypothesis
(H2) stating that ‘’Price strategy has positive significant effect on consumer buying behavior’’ is
accepted.
54
H3: promotion strategy has positive significant effect on consumer buying behavior.
Promotion strategy has a positive unstandardized B coefficients of (.283) and significance value of
0.000. This indicates that the significance value of the variable is less than that of the study’s
significance level (0.000< 0.05). Therefore, promotion strategy has positive and significant effect
on consumer buying behavior ‘and the third hypothesis stating that “promotion strategy has
positive significant effect on consumer buying behavior.” is accepted.
H4: Distribution strategy has positive significant effect on consumer buying behavior.
The unstandardized B coefficients result of distribution strategy has a positive beta coefficient of
.313 and significance value of 0.000. This indicates that distribution strategy has positive and
significant effect on consumer buying behavior, as its significance value is less than that of the
study’s level of significance. Therefore, the fourth hypothesis stating “distribution strategy has
positive significant effect on consumer buying behavior” is accepted.
Table 4. 12. Summary of Hypothesis
Hypothesis
Expected
Actual result
Decision
Product strategy
Has positive and significant effect on Cbb
0.000
Accepted
Price strategy
Has positive and significant effect on Cbb
0.001
Accepted
Promotion strategy
Has positive and significant effect on Cbb
0.000
Accepted
Distribution strategy
Has positive and significant effect on Cbb
0.000
Accepted
Source, PSPSS, Beta coefficient Table, 2014
4.9.3 Interpretation of the Research Model
Based on the results demonstrated from coefficient of regression table 4.11, the following model
was derived to explain the relationship between the independent variables, demonstrated in the
study and the dependent variable which was consumer buying behavior in Gondar city four-sub
cities cosmetics product selling shops.
55
The model is specified as;
𝑌 = 𝛼 + 𝛽1 𝑝𝑟𝑜𝑠 + 𝛽2 𝑝𝑟𝑖𝑠 + 𝛽3 𝑝𝑟𝑜𝑚𝑜𝑠 + 𝛽4 𝑑𝑖𝑠 + 𝑒𝑖
𝐵𝑈
= −.702 + 0.285𝛽1 + 0.179𝛽2 + 0.283𝛽3 + 0.313 + 𝑒𝑖
𝑌
Where:
Y:
Consumer buying behavior
α:
Disturbance term constant,
β1-4:
Marketing strategies affecting factors.
ProS:
Product strategy
PriS:
Price strategy
PromoS:
Promotion strategy
DiS:
Distribution strategy
ei:
error term
The findings from the unstandardized B coefficient result indicated that distribution strategy had
the highest effect on consumer buying behavior in Gondar city four-sub cities cosmetics product
selling shops. The result implied that a unit increase in distribution strategyled to a 31.3%
improvement in consumer buying behavioratGondar city four-sub cities cosmetics product selling
shops. Product strategy has the second highest effect on consumer buying behavior; as indicated by
the unstandardized Coefficient, a unit increase in Product strategy led to a 28.5% improvement in
consumer buying behavior. A unit increase in promotion strategy also led to a 28.3% improvement
in consumer buying behavior. The unit increment in price strategy led to a 17.9% improvement in
consumer buying behavioratGondar city four-sub cities cosmetics product selling shops.
4.10. Discussion of Quantitative Results
This section presents the findings of the study in line with the objective of the study. With
respect to first objective, to examine the effect of product strategy on the consumer behavior in
Gondar city four sub cities cosmetics product. The descriptive analysis result showed that 56.8%
of cosmetic product consumers were not decided whether the product have quality or not. 31.5%
of respondents were agreed that the cosmetics product quality was as expected. Regarding with
product design, 39.8% of consumers were attracted by the product design in the study area. On
the other hand, the product feature was influences the consumers to use the cosmetics product.
56
47.8% of consumers were agreed that the product feature was attractive and it enforces
consumers to use the product. The product ingredients were important to keep the beauty of the
consumers. The 35.8% of study participants agreed that product ingredients were vital to keep
the beauty of consumers But 25.6% of consumers were not sure that the ingredients are
important to keep the beauty. The 27.2% of cosmetics product consumers in the study areas were
believed that the packaging could not be helps to identify the product from others.
As descriptive statistics ,reviles that , consumers perception indicates product strategy affects
consumers buying behavior as shown the total mean score 3.718 and standard deviation of
1.2062.
The findings of product strategy in this study was similar with the study of Hitt and Hoskisson
(2015), customers increasingly expect products to be of high quality. Therefore, product quality
is often considered to be a major contributor to the development of a firm’s competitive
advantage. The literature suggests that there is a significant role of product quality in buying
behavior but it may vary from culture to culture.
The second objectives of the study were to examine the impact of price strategy on consumers
buying behavior in Gondar city four sub cities cosmetics product. Thedescriptive result of price
strategy items showed that 31.8%, 31.2% and 31.5% of cosmetics consumers in the study areas
were believed the price of the product did not indicated the quality of the product. This result
was confirmed by mean score of 3.401. This indicates the incompatibility of product price and
quality of product. Majority of 54.2% and 26.5 of cosmetics consumers in the study areas
believed that the price was faire to purchase. On the other hand, 54.3% of consumers can afford
to pay the product. The price of the product was competitive with other personal care prices as it
accounts by the majority 34% and 30.2%.The mean and standard deviation score of sum of price
strategy items showed that consumers buying behavior affects by the price (mean =3.7156,
standard deviation =1.0702). This finding is similar with previous studies done by Kabiru (2014)
argues that price is a perception of value and that is never constant. He recommends firms to
always position a product with the value going up, i.e. either lower the price, increase benefits or
increase benefits more than the increase in price. Additionally, Sarwar et al. (2014), stated that
the influence of consumer psychographics on their tendency to purchase retailer brands, that
must be valid and reliable so the consumers are more price conscious and prefer and purchase
57
retailer brands. Familmaleki et al. (2015) in their research also revealed that there was a
significant relationship between attitude towards price discounts coupons, free samples and
“buy-one-get-one-free” with buying behavior.
The third objectives of the study were to investigate the effect of promotion strategy on
consumers buying behavior in Gondar city four sub cities cosmetics product. The descriptive
result analysis showed that 58.3% of cosmetics consumers were neutral on whether products
were promoted by famous peoples, 33.6% of consumers agreed believed that products were
promoted by famous peoples. On the other hand, 35.8% and 28.4% of consumers agreed and
strongly agreed that the promoted product has a quality as told by the promotion. But 26.9% of
consumers cannot confirm that the promoted product has a quality as explained by the
promotion. The majority 35.8% of respondents believed that promotion could not reached for all
consumers. The sum of mean score result showed that promotion was moderately affects
consumers buying behavior of the cosmetics product in the study areas as shown the (mean
=3.7156 and standard deviation of 1.3996).
Previous studies regarding consumers buying behavior was done by considering different
marketing strategies. This finding is similar with the study of Chukwu et al., (2018) stated that
sales promotion may be good for well promotion prone consumers for reasons beyond price
savings.
This study finding is similar with the study done by Kabir and Rezvi (2017) who conducted a
research on the influence of word of mouth on consumer buying decision. The findings revealed
that word of mouth has an influence on consumer buying behavior. The results suggested that
word of mouth was built by trust and loyalty. It also in agreement with Wafula (2017) who in his
study on the effect of online word of mouth on businesses and organizations in Kenya, revealed
that online word of mouth affects the sales and revenue.
The fourth specific objective of the study was to examine the effect of distribution strategy on
consumers buying behavior in Gondar city four sub cities cosmetics product. The descriptive
statistics result showed that majority 71% of respondents were replied neutral on availability of
the product in all markets at the study areas. The 42.3% of respondents agreed that the
distribution system reduces transportation cost. The majority 42.3% of cosmetics consumers
58
believed that distribution channel was not easy to order the product. But 61.4% of cosmetics
consumers in the study areas was attracted by placement of the product.
The findings of this study is similar with the studies done by Prahalad (2012) indicated that firms
should think about new ways to reach the consumers, instead of just thinking about places to sell.
Ali and Ahmad (2016) also made it clear that among the major challenges of serving markets is
the need to ensure availability of products and services all over the country and not just in cities.
The Pearson correlation result indicated that strong relationship between promotion strategy
(r=0.906), product strategy (r=0.888) and price strategy (r=0.872) was established. This indicated
that product strategy; price and promotion strategies have direct relation with cosmetics
consumer buying behavior in the study area. The distribution strategy was moderately correlated
with consumers buying behavior in the study areas.
The regression result of the study revealed that 87.9% of consumers buying behavior were
explained by four marketing strategy segments. The four independent variables significantly
affects consumers buying behavior in Gondar city four sub cities cosmetic product selling chops
59
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1. Introduction
The study offers a summary of findings based on the analysis and discussion of the study.The
study was made to examine the effect of marketing strategy on consumers buying behavior in
Gondar city four sub cities cosmetics products. The study included four independent variables
and one dependent variable. The independent variables are product strategy, price strategy,
promotion strategy and distribution strategy. A 5 point Likert Scale was designed to measure
attitude of customers. Qualitative data was used for the analysis.
Descriptive and inferential statistics was used to analysis the quantitative data. The mean score
value, percentage of responses was use to interpret the analyzed data. Pearson correlation
coefficient was used to see the strength of relationship between marketing strategy and
consumers buying behavior. Multiple linier regression analysis was used to see the significant
effect of marketing strategies on consumers buying behavior in the study area. After the
summary of the result discussions majorfindings, the conclusion and recommendations would be
elaborated on briefly.
5.2. Summary of Major Findings
The descriptive result of product strategy showed that 14.8% of consumers believed that the
product feature is not attractive. On the other hand, 14.8% of them were believed that the product
packaging was not convenient to handle. Concerning on identifying one product from another,
27.2% of consumers said that packaging of the product did not help the buyers to identify from
other similar products.
The 31.8%, 31.2% and 31.5% of respondents believe that the price of the product did not show
the quality of the product. The consumers replied that the price and quality of the product is
incompatible. The price of the product is not competitive with other personal care products. The
product value and price has poor relation.
58.3% of cosmetics consumers in Gondar city four sub cities cosmetics product selling shops
were not sure whether the cosmetics product was promoted by famous peoples or not. 35.8% of
consumers believed that the promotion was not reach for all customers in the study area
60
The Pearson correlation result indicated that strong relationship between product strategy, price
strategy and promotion strategy with consumers buying behavior. But moderate correlation was
existed between distribution and customers buying behavior.
The regression result of the study revealed that 87.9% of consumers buying behavior were
explained by four marketing strategy segments. The four independent variables significantly
affect consumers buying behavior in the study areas.
5.3. Conclusion
The objective of the study was to examine the impact of marketing strategy on consumers`
buying behavior in Gondar city four sub cities purposely selected cosmetics selling shops. Based
on the research conducted Gondar city four sub cities purposely selected cosmetics selling shops
has adopted considerable amount of product strategy and it has resulted a positive significant
effect on consumers buying behavior.
The study concluded that marketing strategy factors (product, price, promotion and distribution)
has helped the cosmetics shops enter new markets by expanding their territory, selling to existing
customers and winning over customers from other competitor’s. The summation of all marketing
strategies affects the consumers buying behavior at moderate level.
The research concludes that productstrategy; price strategy and promotion strategy has
strongpositive significant effect on customers buying behavior but moderate positive and
significant effects was established between distribution strategy and consumers buying behavior
in Gondar city four sub cities cosmetics product selling markets.
According to regression result of the study, all independent variables significantly affect
consumers buying behavior in the study areas. The regression result of the study revealed that
87.9% of consumers buying behavior were explained by four marketing strategy segments.
5.4. Recommendations
Depending on the findings of the study and conclusions made, the researcher came up with some
important recommendations that can be used to influence marketing strategies towards
consumers buying behavior.
The recommendations are in line with major findings:
 According to the research findings marketing strategies in cosmetics product selling
shops has significant effect on consumers buying behavior. On the other hand, based on
the information from distributed questionnaire cosmetics product consumers were not
61
satisfied by the product packaging ,convenient to handle , and features of attractiveness in
the study areas. Therefore,
 Cosmetics product owners should put more effort to create suitable convenient product
package to simply pick up by hand, one products packaging should identified from the
other and feature should be attractive to use the product.
 The cosmetics product seller should be either increase the quality of the product or
decrease the price of the product.
 The cosmetics product shop should be competitive the cosmetics product with other
personal care products.
 The cosmetics product shop owners should be used different promotional mechanisms
that easily accessible for all customers.
 The cosmetics consumers also attended other means of product promotional mechanisms
including famous people’s promotion.
 The product distributors should be done through providing information for both
customers and the owner of the product seller shop.
 Finally, the owner of the product seller should use easiest distribution channel.
 The product consumers should use other multiple chances to buy the cosmetics with low
cost.
5.5. Limitations and Further area of Study
The researcher was using only four independent and one dependent variable. Further
research should be done by using other variables.
The research was limited only a specific geographical area (Gondar city four sub cities
and purposely selected cosmetics shops. This limitation will be covered by other
researchers to conduct the study at the same cities in Amahra region.
62
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67
Appendix: I
University of Gondar
College of Business and Economics
Department of Marketing Management
Post Graduate Program
(Questionnaire to be filed by cosmetic product consumers in Gondar city
four sub cities cosmetics shops)
This questionnaire is designed for the purpose of collecting data for research topic entitled on
“the effect of marketing strategy on cosmetic products consumer buying behavior in Gondar
town”. You are politely requested to provide the required and correct data as per the
questionnaire because it has a great role for the attainment of the objective of the study. The
information that you provide is only for academic purpose and therefore all information provided
shall be treated with maximum caution and confidentiality.
If you have any query you can reach me via:

Mob No: +251918099161/+251987765905

Email: eshetusimegnew@gmail.com

Please check it the questionnaire paper have 4 pages.
Thank you for your cooperation in advance!
68
Part One: Respondents Demographic Information
Kindly answer with a tick (√) mark the extent to which you agree or disagree with the following
statements where applicable to you and finally provide additional views and opinions on the
overall marketing strategies practiced in cosmetics market.
1. Gender:
(A) Male
2. Age: (A) 18-25
above
(B) Female
(B) 26-35
3. Marital status (A) single
(C) 36- 45
(B) married
4. Current Occupation (A) unemployed
D. retired
5. Income/ Monthly A. below 3000
6. Family size
A. < 2
(C) divorced
(D) 46-55
(D) Windowed
B. Employed
B. 3001-6000
B. 2-5
69
(C) House wife
C. 6001-9,000
C. 6-10
(E) 56 and
D. above 9,000 birr
D. >10
Part Two: Measure the Effect of Marketing Strategies
Please indicate the extent to which you agree with the following statements by ticking the
appropriate answer using the Lickert scale below: Strongly agree = 5, Agree = 4, Neuteral = 3,
Disagree = 2, strongly disagree = 1
1.
Q1
Product Strategy
The product have quality as you expect
Q2
The product design is attractive to you
Q3
The product feature is attracts you to use
Q4
The product ingredients are important to your beauty
Q5
The product package is convenience to handle
Q6
The packaging helps to identify the product from others
1
2.
Pricing strategy
Q 7
The price shows products quality
Q 8
The price is fair to purchase the cosmetics product
Q9
The price is affordable to pay with your buying power
Q 10 The price has relationship with product value
Q11
1
The price competitive with other personal care products
70
2
3
2
3
4
4
5
5
3.
Promotion strategy
Q12
The product promoted by famous people
Q 13
Promotion has relation with product quality
Q 14
The promotion is frequently addressed
Q 15
The promotion reached to all customers
Q 16
The promotion effective to answer your question
4.
Distribution strategy
1
2
3
4
5
1
2
3
4
5
The product available in all market
Q 17
Q 18
The distribution system reduces your transportation
cost
Q 19
The distribution channel easy to order the product
Q 20
The placement of cosmetics product attractive to you
Part three: Consumer Buying Behavior
5.
Consumer buying behavior
Q 21
I search about the product before purchase
Q22
I purchase the product frequently
Q 23
1
I have been using the cosmetic product for long period of
time
Q 24
I
evaluate the product quality from other competitive
products
Q 25
The product is easily disposable
Thank you for voluntariness
71
2
3
4
5
በበበበበበበበበበበ
በበበበበ በ/በበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበ
በበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበበ
ይይይይይይይይይይይይ
“ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
”
ይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይ +251918099161/+251987765905
ይይይይeshetusimegnew@gmail.com
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይ!
72
በበበ 1በ-ይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይ (√) ይይይይይይይይይይይይይይይይይይይይይይይ
1. ይይይይ) ይይይ
2. ይይይይይ) 18-25
ይ)
ይ) 26-35
ይይ
ይ)
ይ) 46-55
36-45
ይ) ይ 56 ይይይ
3. ይይይይይይይይ- ይ) ይይይይ(ይ)
ይ) ይይይ (ይ)
ይ) ይይይ (ይ)
ይ) ይይ/ይይይይይይይይ/ይይይይይይ
4. ይይይይይይይ- ይ) ይይይይ
ይ) ይይይይ
ይ) ይይይይይይይ
ይ) ይይይ
5. ይይይይይይ (ይይይ)ይ- ይ) ይ3000 ይይይ
ይ) ይ3001-6000
ይ) ይ9000 ይይይ
73
ይ) ይ6001-9000
በበበ
2በ-
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይይይይይይ 5 ይይይይይይይይይይ (lickert scale) ይይይይይ (√)ይይይይይይይይይይይይይይይይ
ይይይይይይይይይ=
5ይይይይይይይ=
4ይይይይይይይይይይይይይይይ=
3ይይይይይይይ=
2ይ
ይይይይይይይይይ =1
ይይይይ
ይ.ይ
1.
በበበበበበበ
1
2
3
4
5
ይይይይይይይይይይይይይይይይይይ
2.
ይይይይይይይ (ይይይይ) ይይይይይይይይይይ
3.
ይይይይይይይይይይይይይይይይይይይይይይይይይይ
4.
ይይይይይይይይይይይይይይይይይይይይይይይይይይ
5.
ይይይይይይይይይይይይይይይይይይይይ
6.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይ
ይይይይ በበበበበበበበበበ
ይ.ይ
1 2 3 4 5
7.
ይይይይይይይይይይይይይይይይይይይይይ
8.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
74
9.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
10.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
11.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይ
ይይይይ በበበበበበበበበበበ
ይ.ይ
1
12.
ይይይይይይይይይይይይይይይይይ
13.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
14.
ይይይይይይይይይይይይይይይይይይይይይይ
15.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
16.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
2
3
ይይይይ በበበበበበበበ
ይ.ይ
4
5
1 2 3 4 5
17.
ይይይይይይይይይይይይይይይይይይይይ
18.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
19.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይ
20.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
21.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
75
በበበ2በይይይይ በበበበበበበበበበ
ይ.ይ
1 2 3 4 5
1.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
2.
ይይይይይይይይይይይይይይይይይይ
3.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
4.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
ይ
5.
ይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይይ
76
77