Ilia State University
Business Research Project
"The influence of social networks on consumer behavior in the cosmetics industry."
Made by:
Korkashvili Elena
Tbilisi 2023
Content
Introduction.................................................................................................................................... 3
Literature review ............................................................................................................................ 5
Project aim and objectives ........................................................................................................... 10
Methodology................................................................................................................................. 10
Data collection and analysis techniques ..................................................................................... 10
Results ........................................................................................................................................... 11
Analysis ......................................................................................................................................... 12
Discussion ..................................................................................................................................... 25
Conclusion .................................................................................................................................... 26
Bibliography ................................................................................................................................. 29
2
Introduction
In the modern world, social media plays an increasingly crucial role in people's
everyday lives. They are used for communication, obtaining information, entertainment, and
making purchases. The cosmetic industry is one of the sectors where social media significantly
influences consumer behavior.
In Georgia, the number of social media users continues to grow. According to
Hootsuite's research, in 2023, there were 3.5 million social media users in Georgia, constituting
70% of the country's population. Among them, 55% are women. (Hootsuite: Digital 2023
Global Overview Report). This indicates that social media serves as a crucial communication
channel for cosmetic companies in Georgia. They can utilize social media to inform consumers
about their products and services, attract new customers, and enhance brand visibility. 60% of
consumers in Georgia make decisions to purchase cosmetic products after seeing them on
social media.
In addition, 75% of consumers in Georgia follow the advice of other users on social
media when choosing cosmetic products. According to Nielsen's research, 70% of consumers
in Georgia use social media to gather information about cosmetic products. (Nielsen: Global
Trust in Advertising Report 2022)
The main reasons causing the need to study the impact of social media on consumer
behavior in the cosmetic industry are as follows:
1.
Popularity of Social Media: Social media has become an integral part of people's
lives worldwide, used by individuals of all ages and social groups.
2.
Information Accessibility: Social media provides consumers with the ability to
quickly and easily obtain information about products and services, including cosmetic
products.
3.
Communication
Opportunities:
Social
media
enables
consumers
to
communicate with each other, share opinions about products and services, and receive
recommendations from other users.
The impact of social media on consumer behavior in the cosmetic industry is
manifested in the following aspects:
3
1.
Behavioral Changes: social media contribute to changes in consumer behavior
in the cosmetic industry. Consumers become more informed about products and services, more
selective in their purchases, and more inclined to follow recommendations from other users.
2.
Increased Competition: social media contribute to increased competition in the
cosmetic industry. Companies are compelled to pay more attention to marketing and
advertising on social media to attract consumer attention.
3.
Changes in Marketing Strategies: social media necessitate changes in companies'
marketing strategies. Companies must adapt their marketing messages and communication
channels to the new landscape.
4
Literature review
YouTube stands out as one of the globally acclaimed platforms for sharing videos.
Over 2 billion people visit YouTube monthly, and a significant portion of them uses the
platform to gather information about cosmetic products. (Nielsen: "Global Trust in
Advertising Report 2022")
Research indicates that YouTube has a substantial impact on cosmetic choices.
According to Nielsen's study, 70% of global consumers use YouTube to obtain information
about cosmetic products. Additionally, 60% of consumers make purchasing decisions for
cosmetic products after seeing them on YouTube.
According to YouTube data, in 2023, cosmetic channels on YouTube gathered over
100 billion views. This constitutes approximately 10% of the total views on YouTube.
In 2023, the most popular cosmetic channels on YouTube were:
1.
James Charles (USA) - 64.8 million subscribers, 4.4 billion views
2.
NikkieTutorials (Netherlands) - 16.5 million subscribers, 3.8 billion views
3.
Huda Beauty (Jordan) - 49.9 million subscribers, 3.7 billion views
4.
Tati Westbrook (USA) - 10.8 million subscribers, 3.6 billion views
5.
Jaclyn Hill (USA) - 10.5 million subscribers, 3.5 billion views
Cosmetic channels on YouTube cover a wide range of topics, including:

Reviews of cosmetic products

Makeup tutorials

Skincare tips

Videos about fashion and style

Videos about life and travel
YouTube influences cosmetic choices in several ways. Firstly, it provides consumers
access to a vast amount of information about cosmetic products. YouTube users can find
product reviews, makeup tutorials, and user testimonials. This information helps consumers
better understand the properties of cosmetic products and make more informed choices.
Examples:
Product reviews on YouTube give consumers the opportunity to see and evaluate a
product in action. This can be particularly useful for products that are challenging to assess
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through photos or descriptions.
Makeup tutorials on YouTube can teach consumers how to properly use cosmetic
products to achieve the desired results. This can help consumers look better and feel more
confident. (Chung and Lee, 2017)
User testimonials on YouTube can give consumers an insight into how a product
performs in real life. This can be especially helpful for products with limited reviews in other
sources.
Secondly, YouTube allows consumers to communicate with each other and share
opinions about cosmetic products. This contributes to the formation of consumer
communities that exchange advice and recommendations. This community can have a
significant influence on cosmetic choices, as consumers tend to trust recommendations from
fellow users.
Examples:
YouTube users can leave comments on videos, sharing their impressions of products.
This can help other users learn more about a product and make a purchase decision.
Videos that receive a high number of views and likes can serve as a source of
information about new products and trends.
There are numerous communities on YouTube dedicated to cosmetics. In these
communities, consumers can interact, exchange advice, and share recommendations.
Thirdly, cosmetic companies use YouTube to promote their products. Cosmetic
companies create channels on YouTube where they post videos about their products. These
videos can be an effective way to inform consumers about products and increase their
visibility.
Examples:
Cosmetic companies often create advertisement videos on YouTube to showcase their
products and attract consumer attention.
Cosmetic companies may create videos about their products to demonstrate them in
action and talk about their benefits.
Cosmetic companies can produce makeup tutorials to show how to use their products
to achieve the desired results.
Additionally, the influence of YouTube on cosmetic choices may vary depending on
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the country and region. For instance, in some countries, YouTube may be a more popular
source of information about cosmetics than in others.
The impact of YouTube on cosmetic choices can also depend on the age and gender of
the consumer. For example, young people and women are more likely to use YouTube for
information about cosmetics than older individuals and men.
The influence of YouTube on cosmetic choices may be related to the consumer's
income level. For instance, individuals with higher income levels may be more inclined to
trust YouTube influencers' recommendations than those with lower income levels.
The impact of YouTube on cosmetic choices can be both positive and negative. On
the one hand, YouTube can help consumers access more comprehensive and reliable
information about cosmetic products, leading to more conscious purchases and a reduced risk
of disappointment. On the other hand, YouTube may contribute to the spread of false
information and advertising tricks, potentially leading to misguided purchases and consumer
disappointment.
Instagram is one of the most popular social networks globally, with over 2 billion
active users. The platform has become a crucial space for communication, information
exchange, and promoting goods and services.
It's not surprising that Instagram also influences cosmetic choices. Studies show that
Instagram users are more likely to purchase cosmetics they see in posts and stories.
In a 2022 study conducted by Nielsen, it was found that 66% of Instagram users who
see posts about cosmetics are more likely to buy those products. The research also showed
that Instagram users are more likely to trust cosmetic recommendations they see on
Instagram than recommendations from other sources.
Another study conducted in 2023 by Forrester revealed that Instagram is the most
influential source of cosmetic information for millennials and Generation Z. The study
indicated that these generations are more inclined to buy cosmetics they see on Instagram
than previous generations.
Several factors explain why Instagram influences cosmetic choices. Firstly, Instagram
provides users with the opportunity to see cosmetics in action. Users can watch videos where
influencers demonstrate various products or view photos showcasing the results of using
cosmetics. This allows users to better understand how the cosmetics will look on themselves.
7
Secondly, Instagram enables users to communicate with each other and receive
feedback on cosmetics. Users can leave comments under posts about cosmetics or directly
interact with influencers. This allows them to obtain more objective information about
products and avoid purchasing low-quality cosmetics.
Thirdly, Instagram is a visually appealing platform. Posts about cosmetics often
contain bright photos and videos that capture users' attention. This makes cosmetics more
desirable and encourages users to make a purchase.
TikTok is a popular social network where users share short video clips, and it has
significantly influenced the choice of cosmetics.
Initially, TikTok facilitates users in exploring and finding new products and brands.
The platform features videos showcasing various cosmetic products, from new launches to
budget-friendly options. This allows users to learn about cosmetics they might not have
encountered through other sources.
Secondly, TikTok helps users explore different application techniques for cosmetics.
The platform hosts videos demonstrating how to apply makeup, take care of the skin, and
create various looks. This enables users to learn how to use cosmetics more effectively and
achieve desired results.
Thirdly, TikTok contributes to the popularization of new makeup trends. The
platform showcases videos featuring the latest makeup trends, from everyday looks to
evening styles. This keeps users informed about the current trends and helps them create upto-date looks.
Overall, TikTok has a positive impact on the choice of cosmetics, assisting users in
discovering new products and brands, learning application techniques, and staying updated
on the latest trends.
Popularizing new products and brands: In 2022, TikTok played a significant role in
popularizing products such as the Huda Beauty Desert Dusk eyeshadow palette and Fenty
Beauty Stunna Lip Paint. These products gained high demand after popular TikTok
influencers showcased them.
Spreading information about makeup application techniques: TikTok hosts videos
demonstrating various makeup application techniques and tools. This helps users learn how
to use cosmetics correctly, achieving the desired results.
8
Setting new makeup trends: TikTok often becomes a source of new makeup trends.
For example, in 2022, TikTok popularized the "Y2K" makeup trend, reminiscent of the
makeup styles from the 1990s.
Facebook is one of the most popular social networks globally, and it has a significant
impact on various aspects of our lives, including the choice of cosmetic products.
Girls use Facebook for selecting cosmetics for the following purposes:
Facebook allows girls to learn about new cosmetic products and trends emerging in
the market. They can read articles and reviews, watch videos, and engage with other users
who share their experiences with cosmetics.
Before purchasing a new cosmetic product, girls often want to know reviews from
other users. Facebook provides a platform for exchanging cosmetic reviews, enabling girls to
make more informed choices.
Facebook enables girls to compare prices for cosmetic products from different sellers.
This helps them save money and find the best deals.
Many cosmetic brands have their pages on Facebook, where they sell their products.
This allows girls to buy cosmetics online without leaving their homes.
According to a study conducted by Facebook, 40% of women use the social network
to find information about cosmetic products. Among these women, 70% believe that
Facebook helps them make more informed decisions about purchasing cosmetics.
9
Project aim and objectives
Methodology
Research purpose. To study the influence of social networks on consumer behavior in
the beauty industry in order to identify trends, preferences and the influence of online
communities on purchasing decisions.
Industry: Beauty Industry.
Key facts about the industry
1.
Social media has emerged as an important platform for sharing experiences and
recommendations in the beauty industry.
2.
Video content and product reviews on platforms such as Instagram and YouTube
have a significant impact on buyer decisions.
3.
Brands are actively using social media for marketing and engaging with customers.
4.
Consumers
are
increasingly
focusing
on
social
media
reviews
and
recommendations when choosing beauty products and services.
5.
Interaction with online beauty communities can have a significant impact on
building brand loyalty.
Overall Objective of the Study
To investigate the impact of social media on consumer behavior in the beauty industry
with a focus on customer decisions, preferences and the influence of online communities on
decision making.
Research Onion
Research Philosophy
Paradigm: Interpretive.
Position: Constructivist.
Approach to Theory Development
Deductive Approach: Based on existing theories about the impact of social media,
creating hypotheses and testing them through analyzing questionnaire responses.
Research Strategy People from various countries participated in the survey in order to
ensure a wide range of perspectives in regards to the chosen research topic.
Data collection and analysis techniques
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To collect quantitative data, surveys were conducted among 200 individuals. Taking
part in this survey was optional, and the responses provided were anonymous. All data
provided by the respondents were used only for research purposes and was not shared with
third parties.
The survey participants were 200 people from the following countries: Australia,
Canada, Georgia, Germany, Russia, UK, USA.
Results
For gathering the relevant data for the given research project, an online survey was
conducted which explored the impact of social media on consumers’ choice and purchasing
decisions of cosmetic products.
The survey asked the question about the country of residence. The table below
summarizes respondents’ country of residence:
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Analysis
In which country do you currently reside?
90
68
45
23
0
Australia
Canada
Georgia Germany
Russia
UK
USA
Figure 1: Respodents’ place of residence
As indicated in the figure no. 2, the highest number of respondents represented the age
categories of 18-24 and 25-34.
What is your age group?
60
45
30
15
0
18-24
25-34
35-44
45-54
55-64
65 or Under 18
older
Figure 2: Respondents' age categories
35% of people use the internet more than once a day, 60% use the internet at least once
a week, and 100% use the Internet at least once a week.
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Figure 3: Frequency of internet utilization
As illustrated in Figure no. 4, only 22% of respondents indicated that social networks
influenced their decision to purchase cosmetic products, whereas 30% mentioned that it didn’t
have any impact of their choice at all, as for the remaining 48% of the respondents it influenced
their choice only to some extent.
Figure 4: Social media influence
The highest number of participants indicated that they occasionally considered social
media reviews and recommendations before buying cosmetic products, 24% almost never took
such information into their consideration:
13
Figure 5: feedback and recommendations
Respondents utilized several social media platforms for seeking information about
cosmetic product: Instagram (24%), YouTube (23%) and TikTok (21%) representing most
widely used online platforms.
Figure 6: Social media platform usage for cosmetic products
Majority of respondents indicated that celebrities and influencers on social media
impacted their choice of cosmetic brands/products, equal number stated that they had
influence only to some extent or not at all.
14
Figure 7: celebrity endorsement
A significant proportion of participants (35%) recognized the importance of authentic
reviews and results, emphasizing a preference for genuine product information. More than
one-fifth of respondents (22%) highlighted comparative reviews, emphasizing the need to
compare different products to make more informed decisions. 18% of respondents highlight
the importance of video demonstrations, emphasizing the impact of visual representations of
products on decision making. Approximately one in every five participant (20%) focused on
advice and recommendations from influencers, noting their impact on cosmetic product
selection. A small group of respondents (5%) highlighted other factors, demonstrating the
diversity in individual preferences and criteria when choosing cosmetic products s.
Figure 8: Impact of feedback on social media
Only 12 % of respondents believed that social media images/videos fully reflected the
quality and results of beauty products. 38% believed that these images largely reflected the
15
reality and 30% believed that they did not fully reflect the reality. 20% expressed that these
images did not reflect the reality at all.
Figure 9: Impact of social media images
23% of respondents expressed admiration when viewing posts about cosmetic products
on social media, 12% demonstrated trust, 27% had doubts, 15% appeared envious, 20%
remained neutral, and only 3% of participants indicated their individual feelings:
Figure 10: feelings when seeing posts about cosmetics on social media
32% of respondents believe that social media significantly contributed to making better
decisions for purchasing cosmetic produscts, while 48% of participants said that the influence
of social media on their cosmetic product decisions was of medium importance. For 20% of
respondents, social media had no influence on their cosmetics decisions at all:
16
Figure 11: How social media influences the process of making well-informed buying choices.
33% of respondents experienced problems with information overload, 38%
encountered misleading information, 24% highlighted privacy issues, and 5% cited other
difficulties not included in the listed categories when using social media for seeking
information on cosmetic products.
Figure 12: Problems associated with using social media
17
Figure 13: Association of social networks with purchases of cosmetics
22% of participants reported associations between their social media interactions and
purchases of cosmetic products. An additional 30% indicated a weak positive connection.
While 48% of respondents did not outline any connection between their social media
interactions and purchases of cosmetics .
42% of survey participants consider source reliability very important when choosing a
new cosmetic product. 30% emphasized the importance to some extent, while 28% believed
that source reliability was not important to them when choosing a cosmetic product:
Figure 14: Source reliability
45% of survey participants indicated that AR filters and virtual fittings significantly
influenced their purchasing decisions of cosmetics. An additional 35% indicated a slight
18
influence, while 45% of respondents experienced no influence at all on their cosmetics’
purchasing decisions:
Figure 15: The impact of AR filters and virtual fittings
37% of survey participants considered user-generated content to be very influential in
shaping their opinion of cosmetics. An additional 30% indicated that user-generated content
was weakly influential. For 33% of respondents, such content did not impact their opinion of
cosmetics:
Figure 16: The influence of ser-generated content
15% of survey participants reported a positive influence of social media issues or trends
on their cosmetics purchasing behavior. 10% reported a negative impact. Half of the
19
respondents (50%) claimed that social media had no impact on their cosmetics buying
behavior, and 25% were not involved:
Figure 17: Influence of social media issues or trends on cosmetics’ purchasing behavior
29% of survey participants noticed an increase in social media addiction when shopping
for cosmetics in the face of COVID-19 and the rise of online shopping. For 18%, the
dependence decreased, and for the majority, 53%, nothing changed.
Figure 18: The impact of COVID-19 on the rise of online shopping
21% of survey participants believed social media is very effective and influential in
addressing inclusivity and diversity in cosmetics. 41% of participants believed they were
slightly effective and influential, while 38% indicated that social media is not effective or
influential in their brand choices.
20
Figure 19: inclusiveness and diversity in cosmetics
16% of survey participants considered "FOMO" to be a very significant factor when
deciding whether to purchase limited or fashion cosmetics. 29% considered it somewhat
significant, while for 55% of respondent’s "FOMO" did not appear important in such
purchases.
Figure 20: of "FOMO" significance
34% of survey participants indicated that privacy and data security issues significantly
impacted their interactions with beauty brands and social media influencers. 44% indicated a
minor impact, while for 22% these issues had no impact on their interactions in this context.
21
Figure 21
40% of survey participants believed that new trends would be characterized by an
increase in social media influence on the cosmetics industry. 47% mentioned that the
influence would remain about the same. A decrease in influence was expected according to
10%, and 3% of respondents believed that the new trends would have no impact on the
cosmetics industry on social media.
Figure 22
5% of survey participants often purchased beauty products based on social media alone.
30% sometimes did so, while for 65% of respondent social media was not the main source for
making cosmetics purchasing decisions.
22
Figure 23
27% of survey participants reviewed makeup content on social media daily, 32% did so
several times a week, 18% did so once a week, 14% did so less than once a week, and 9% never
reviewed such content:
Figure 24: makeup-related content
28% of survey participants were most interested in product reviews, 18% were
interested in recommendations from beauty bloggers, 22% preferred makeup lessons, 12%
were interested in demonstrations of new collections, and 20% of participants were most
attentive to the results of applying cosmetic products:
23
Figure 25: type of cosmetic content
25% of survey participants often refused to buy beauty products because of negative
reviews on social media. An additional 38% had sometimes made similar decisions. While for
40% of respondents, negative reviews on social media never influenced their cosmetics
purchasing decisions.
Figure 26: negative reviews on social media
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Discussion
The results of the conducted research indicate that social media has a noticeable impact
on consumer behavior in the cosmetics industry, although it is not a determining factor.
The majority of respondents use Instagram, YouTube, and TikTok to seek information
about cosmetic products. This aligns with data showing the growing popularity of beautyrelated content on these platforms (Sanders et al., 2016). Users pay attention to reviews and
recommendations from others, especially when accompanied by photo or video evidence of
results. This corroborates findings on the influence of electronic word-of-mouth on beautyrelated purchase intentions (Chu and Kim, 2011).
At the same time, a significant portion of the respondents expresses doubts about the
authenticity of content on social media and does not consider it fully reflective of reality. This
aligns with other studies indicating that consumers often encounter issues of misinformation
and lack of objectivity on social media (Djafarova and Trofimenko, 2019).
The overall results of this study confirm that social media exerts a noticeable but not
decisive influence on consumers' decisions to purchase cosmetics. They serve as one of the
sources of information that may impact the final choice but are not the sole determining factor.
For future research, a more detailed examination of the influence of specific platforms
and types of content (reviews, demonstrations, recommendations) on purchase decisionmaking is recommended. It is also valuable to explore differences in content perception based
on demographic characteristics of the target audience. This will enable companies to develop
more targeted marketing strategies, taking into account the influence of social media.
25
Conclusion
Social media serves as a crucial source of information on cosmetic products for many
individuals, yet its impact on purchase decisions varies.
The majority of respondents browse makeup-related content on social media, with only
about a third using it frequently for purchase decisions.
Authentic reviews, comparative reviews, video demonstrations, and advice from
influencers are the aspects that users pay the most attention to.
Many respondents believe that images and videos on social media do not fully reflect
the quality and results of cosmetic products.
While social media can contribute to making more informed cosmetic purchase
decisions, it can also lead to information overload, misinformation, and privacy concerns.
The impact of social media on cosmetic purchasing behavior varies among users.
Social media can contribute to inclusivity and diversity in the cosmetics industry but
may also contribute to the Fear of Missing Out (FOMO).
Privacy and data security are crucial considerations for many individuals when
interacting with beauty brands and influencers on social media.
It is anticipated that social media will continue to exert a significant influence on the
cosmetic industry in the future.
The highest number of respondents falls within the age categories of 18-24 and 25-34,
indicating that social media is the most popular source of cosmetic information among young
individuals.
The frequency of internet usage indicates that social media is an integral part of many
people's lives, used regularly for seeking information about various products and services,
including cosmetics.
The influence of social media on cosmetic purchase decisions varies, with 22% stating
it affects their decisions, 30% claiming no influence, and 48% indicating partial influence.
Most participants occasionally consider reviews and recommendations on social media
before purchasing cosmetic products, highlighting that such information is a factor but not a
decisive one.
26
Instagram (24%), YouTube (23%), and TikTok (21%) are the most widely used online
platforms for obtaining information about cosmetic products, emphasizing their popularity.
Celebrity and influencer influence on cosmetic brand/product choices vary among
participants, with some significantly influenced, while others are unaffected.
A significant portion (35%) acknowledges the importance of authentic reviews and
results, while 22% highlight the significance of comparative reviews for making informed
decisions. Approximately 20% focus on video demonstrations, emphasizing the impact of
visual representations. Around 20% concentrate on advice and recommendations from
influencers, noting their influence on cosmetic product choices.
Survey results revealed that the majority of respondents use the internet daily or
multiple times a week. However, only 22% of participants indicated a significant influence of
social media on their decisions to purchase cosmetic products.
At the same time, some respondents approach social media content with skepticism,
believing that it does not fully reflect the real quality and effects of products. Many face issues
of information overload and misleading information.
Thus, it can be concluded that social media has a noticeable but not decisive impact on
consumer choices in the cosmetics sector. Their role lies in providing additional information
and opinions that may influence the final purchasing decision.
The obtained results can be valuable for beauty industry companies in developing
marketing strategies, taking into account the influence of social media. Specifically, they
provide insights into what factors are important to consumers when choosing cosmetics
online. Further research could delve more deeply into the influence of specific platforms and
types of content on purchase decision-making.
The conducted research has revealed the influence of social media on consumer
behavior in the cosmetics industry. Survey results indicate that the majority of respondents
use the internet regularly, including social media, but only 22% of participants noted a
significant impact of these platforms on their decisions to purchase cosmetic products.
Among the preferred platforms for seeking information about cosmetics, Instagram,
YouTube, and TikTok stand out. Users pay special attention to reviews and recommendations
from others, especially when supported by photo and video materials. At the same time, some
27
respondents approach social media content with skepticism, believing that it does not always
accurately reflect the real quality of products, leading to issues of information overload.
Thus, it can be concluded that social media has a noticeable, although not decisive,
impact on consumer choices in the cosmetics sector. Their primary role lies in providing
additional information and opinions that may influence the final purchasing decision.
The obtained results provide valuable starting points for beauty industry companies in
developing marketing strategies considering the impact of social media. It is particularly
important to consider factors influencing consumers' choices in online cosmetic purchases.
Further research is recommended to delve more deeply into the influence of specific platforms
and types of content on purchase decision-making.
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Djafarova, E., & Trofimenko, O. (2019). ‘Instafamous’ – credibility and self-presentation of
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Nielsen: Global Trust in Advertising Report 2022
Hootsuite: Digital 2023 Global Overview Report
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