THE IMPACT OF MIX MODEL ON THE BRAND LOYALTY: A
STUDY OF COSMETICS
Marium Khan
ABSTRACT
The aim of this study is to analyze the impact of Mix Model on the Brand Loyalty: A study of
Cosmetics. Mix Model has the variables (Price, Perceived Quality, Availability and Promotion)
and its impact on the Brand Loyalty in the Cosmetic Industry. In this research the impact of Mix
Model on the Brand Loyalty has been observed and as this research has shown that all the
variable of Mix Model which is Price, Perceived Quality, Availability and Promotion have the
significant impact on the Brand Loyalty in the Cosmetic Industry. In this research Multiple
Linear Regression is used to find out the impact of Mix Model (Price, Perceived Quality,
Availability and Promotion) on the Brand Loyalty. The results suggest a significant impact of all
four variables of Mix Model (Price, Perceived Quality, Availability and Promotion). Mix Model
has an impact on the Brand Loyalty of the Cosmetic Industry, as any effect on any variables of
Mix Model would create an effect on the Brand Loyalty of the consumers of cosmetics. The
results propose a significant impact of Mix Model on the Brand Loyalty.
1.
INTRODUCTION
1.1.
Overview
Understanding the behavior of consumers is a source to the victory of business organizations.
Marketing personnel are continuously investigating the patterns of buying behavior and purchase
choices to forecast the prospect trends. Consumer behavior can be enlightened as the
investigation of why, when, how, and what people purchase. The behavior of the consumer could
be explain as the choice process and physical action as the individuals employ in when
disposing, acquiring, using, or evaluating of services and goods. These days, this experience can
also be exemplified in the subsequent way that activities people agree to when disposing,
consuming and attaining services and products. The foundation of this study is relying on Mix
Model (Price, Perceived Quality, Availability and Promotion) which are affecting the Brand
Loyalty in the field of cosmetics. Mix Model is the collaboration or blend of the different
attributes of marketing and the alteration of the basic of Marketing Mix (Price, Place, Product,
Promotion, People, Process and Physical Evidence). As in today’s world most of the consumers
want to have the best quality of the products in the reasonable pricing but when we talk about the
cosmetic world at time companies need to be really focused when it comes to pricing because if
the pricing is really low then customer thinks at times that the product lacks quality and is of sub
standard. If the product’s price is really high then some of the customer would not b able to buy
the product and it would be affecting their sales which would be certainly affect the brand
loyalty. Perceived Quality is one of the most important factor which affect the cosmetic business
because consumer does not want to compromise on the quality when it comes to skin. As the
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consumer is gaining knowledge and companies are also playing vital role in defining the
prosperous results of cosmetics and skin care. Any change in the quality of the product would
poke the consumers and consumers would switch to other brands or can stick to the brand.
Because of globalization the distances are decreasing and world is coming closer but still it is not
very easy to have all the products available at a time to every region so because of this reason
consumer switch to another brands. Promotion plays a vital role in attracting new customers and
retention of the old customers. In cosmetic and skin care companies are spending billions of
dollars for the promotion of their products and educating consumers about their products.
Promotion can helps companies to change the decision making power of the consumers about
their product line.
1.2
Problem statement
Study on the factors affecting Mix Model on the Brand Loyalty in the field of cosmetics.
1.3
Hypotheses
H1: Price has a significant impact on the Brand Loyalty.
H2: Perceived Quality has a significant impact on the Brand Loyalty.
H3: Availability has a significant impact on the Brand Loyalty.
H4: Promotion has a significant impact on the Brand Loyalty.
1.4
Outline of the Study
The idea of this research is to find out the affects of Mix Model (Price, Perceived Quality,
Availability and Promotion) on the Brand Loyalty in the field of cosmetics. The consumers’
requirement of shifting Cosmetic‘s product causes shift in the brand loyalty towards the brands
too which have both negative and positive outcomes. The function of the study is to examine that
which of variables (Price, Perceived Quality, Availability and Promotion) has a significant
impact in forecasting the Brand Loyalty and whether the significant variables are positively or
negatively associated with Brand Loyalty.
1.5
Definition
1.5.1. Brand Loyalty:
Brand Loyalty is defined as a scale to which a consumer time after time purchases the similar
brand within a product class. Customers' perceived worth, brand trust, customers' contentment,
replicate purchase behavior, and dedications are established to be the key controlling factors of
brand loyalty. Assurance and frequent purchase behavior are considered as essential
circumstances for brand loyalty tracked by professed value, fulfillment and brand trust.
1.5.2. Mix Model:
2
Borden (1949) was the first person whom had brought in the concept Marketing Mix Model and
said that the firms need to mix the basic ingredients of marketing and to analyze and then create
a strategy for the firm which would be beneficial for the firm and could help the products and the
market to grow ahead. As McCarthy (1960) was the first individual to propose the Four P's of
Marketing: Price, Promotion, Product and Place, which comprise the most general variables
exercised in assembling a Marketing Mix. Furthermore highlighted by McCarthy (1960) that the
marketers fundamentally have these Four P’s which can be utilize while creating a marketing
strategy and scripting a marketing plan. In the stretched term, all four of the mix variables can be
altered, although in the short term it is complicated to amend the product or the distribution
channel. From the foundation of the Marketing Mix, the Mix Model is been created and it is
usually used to analyze the products for the new market or the existing product for the new
market or for the penetration of product in the market. Mix Model is a model which is consists of
four attributes which are Price, Perceived Quality, Availability and Promotion. Mix Model could
be helpful to agree for market that how to yield a fresh proposition. Mix Model could
furthermore be helpful to assess the marketing strategies which are prevailing in the current
market. The attributes of marketing mix and mix model are somewhere same only the
alternations have been made to further analyze the market. In Mix Model the impact of the
analysis helped to create the marketing strategy and to boost the sales of the product.in Mix
Model the variables can be altered as per the need of the market and situation but the basics
would always remain the same that is the marketing mix at times few researchers have added the
sales as a variable too in order to analyze the market in depth.
1.5.3. Price:
It is the amount of expense or reimbursement given by one person or a party to another person or
a party in the exchange for services or goods. The amount or quantity a person wants to give
away in the exchange of services or goods.
1.5.4. Perceived Quality:
It is a set of characteristics and features of a product that give ability to the product to fulfill the
needs of the consumer. It is the quality identifies by the consumer about the product which can
be good or bad too.
1.5.5. Availability:
It is an ease of use of the product. The availability of the product can be further defined as a
customers’ accessibility towards the product, to reach out the product in time from the place and
to make it convenient or difficult to fetch the product by the consumer.
1.5.6. Promotion:
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It is the connection between buyers and sellers for the reason of notifying, manipulating, or
convincing a possible buyer's buying choice. ATL (Above the Line Promotion) are the
promotional activities which are basically for mass media. ATL activities are: TV, radio,
newspapers, mobile phones, internet and illustrated songs. BTL (Below the Line Promotion) it is
much intended to be understated adequate for the consumer to be uninformed that endorsement is
taking place. BTL activities are sales promotion, merchandising, personal selling, public
relations, trade shows, testimonials, direct mail, sponsorship and product placement.
1.5.7. Cosmetics:
These are the materials used to improve the manifestation or scent of the body. Cosmetics consist
of eye and facial makeup, skin-care creams, perfumes, deodorants, powders, lotions, lipsticks,
towelettes, hand sanitizer, colored and contact lenses, permanent waves, fingernail and toe nail
polish, hair sprays and gels, hair colors, bubble baths, bath oils, salts and butters, baby products
and a lot of further categories of products. Many companies differentiate among ornamental
cosmetics and skin care cosmetics.
Women globally are in love with cosmetics. Ladies prefer all types of whether the simple
makeup or specialist cosmetic items, mineral or natural makeup, makeup applicators and antiaging products of skincare. For the women the proverb “Too a large amount of a high quality
item can’t stay erroneous. “As per the enduring study, cosmetic firms are functioning firmer than
firms prepared just in the past to retain the customer approaching back plus reclaiming items
which had been bought previously. Frequently females are changing skin care products and
cosmetics brands. Greatest numbers of them have given the reasons of switching from one brand
to another that because of new products in cosmetics and skin care, print and media ads that are
alike to analyze, not obtaining the outcomes which had been read about the products, products
not satisfying their need, urge to look much better than others. The mainstream cosmetic and
skincare products firms are placing innovative goods or items every quarter nowadays
contrasting to each year. As the basic motive of the cosmetics and skincare products firm is to
increase the sales and customer satisfaction because wanted to achieve one of the key objectives
that the customer does the repeat buying means retention of the current consumer of the
products.
2.
LITERATURE REVIEW
Boas (2004) described that in numerous marketplaces, consumers can get more knowledge
concerning how fine the goods value through their fondness only through its post purchase
experience. This could then generate loyalty for the products tried initially. As consumers
discover in the initial stage regarding the merchandise which have been purchased and then
formulate preferences in the subsequent stage regarding the challenging merchandises,
particularly what it have been discovered in the initial stage. Contrary to previous point,
companies which are looking ahead apprehended that it would have been grown in the upcoming
time from enclosing a superior market allocation in the existing time and contend further
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assertively in prices of the products. For comparable price cut aspects for consumers and
companies, the later impact dictates.
Jagpal and Brick (1982) had explained the need of the alternation of the marketing strategies and
the variables that works on the foundation of the need and the alternation as per the environment
is required so that the alternation on the basic marketing mix and other models of marketing are
been made because there are several reasons and circumstances which would affect the outcomes
or results and further proceedings. Mix Model is actually altered on the basis of need and to
increase the spectrum of analysis, as it would not be necessary always that the Price, Product,
Place and Promotion would affect at times the Product Availability, Personal Selling, Perceived
Quality is the key reason and can affect the sales and the customer satisfaction and a switch from
one product to another. Some of the researcher and books consider Personal Selling is the part of
the Promotional activities, which is justified and thus it is not been made the part of the Mix
Model. In Mix Model, it has been suggested that these attributes Perceived Quality and
Availability needed to be added and the variables can be changed as per the need but the
foundation would remain the same which is Marketing Mix.
The basic objective defined by Lambin (1972) of analytical Mix Model made in marketing is to
support organization in forecasting the possible impacts of substitute strategies of marketing:
marketing system to be explained, experimental valuation of reaction or responses,
authentication plus forecasting. As the management of any company mostly give more
importance to validation and prediction which actually requires the least number of value of
response.
Chernev (1997) examined the consequence of familiar on brand selection and the reasonable role
of trait significance. It is debatable that when brand characters vary in significance, with the
finest worth on the most significant characters, therefore more polarizing brands’ option shares.
In opposite, when characters are alike in their significance, common characteristics are possibly
to have a converse effect, balancing brands market share.
While unfolding about shopping orientation, Sinha (2003) reported that South Asian Customers
pursue emotional importance rather the purposeful importance of buying. Their direction is
supported further on the entertainment importance than on the purposeful importance. The
direction is established to be affected primarily through the category of store or shop, the rate of
recurrence of purchasing and to various levels through the socioeconomic classification.
Retailers required trying out with a design that draws both categories of shoppers.
Russo and France (1994) investigated the character of the selection practice for generally
purchased nondurables through trailing eye fascinations in a laboratory replication of
supermarket layouts. The findings are completely well-matched with the broad observation that
the selection method is developed to get used to the immediate purchase environment.
Voss and Parasuraman (2003) recommended that the buying inclination is primarily determined
through price than perceived quality for the period of pre-purchase valuation. Set open quality
information, price has no impact on the perception of quality whether pre-purchase or post5
consumption. Instead, the evaluation of the quality of post-consumption had a positive effect on
the evaluation of price.
Vigneron and Johnson (1999) described that the need of the people for looks and presentations
were increasing. That is people would like to please the want to feel and look superior. This
formed a growth in the toiletries and cosmetic sector throughout the globe. As Chambers
Encyclopedia describes cosmetics as items proposed to be poured, rubbed, sprayed or sprinkled
on, initiated keen on or otherwise applied to the body or whichever part intended for beautifying,
promoting, cleaning, attractiveness or varying the look and items proposed for usage as a part of
such items. Now a variety of toiletries and cosmetics variety as of natural to refined items are
accessible in the market.
Karo (1967) Social and economic forces seem likely to continue to support U. S.
cosmetics/toiletries sales at the growth rate of recent years. Low costs permit high returns on
capital employed. Human nature must change before this industry's products become less
marketable. Changes in fashion provide opportunity. Rapidly growing areas, fragrances, hair
spray, and men's products, illustrate distinctions between cosmetics and toiletries. There are
problems. However, pluses and minuses balance out to a resounding plus.
Gothoskar (1997) had explained the very interesting aspect about female consumers when it
comes to usage of products from both toiletries and cosmetics. Females from both working and
non-working class wanted to look beautiful and always ready to spend for the beauty products.
Different toiletries and cosmetics companies are introducing different products for both working
and non-working class keeping in view the different demographics. Looking good and better is
the basic need of the females all around the world in general and ladies whom are working and
doing white collar jobs are more specific when it comes to beauty products in comparison to the
ladies whom are not working.
Nakanishi (1973) established that as toward the promotion along with advertising impacts on
consumer reaction to fresh items, it looks quite obvious that every advertising modes or medium
has dissimilar impacts on the test and replicate buy rates.
Bayus (1992) expounded that the companies are facing immense amount of pressure when it
comes to maintaining the brand loyalty. As on the daily basis new products and technologies are
introducing in the market and the consumer is becoming more intelligent and wanted to have the
best product with low pricing. But at the same time there are customers for them low pricing
means low quality, that’s create massive pressure on the companies in order to maintain the
brand loyalty from the consumers. Marketing strategies and models are developed by the
companies in order to increase customer satisfaction and the loyalty.
When to speak on the subject of the brand loyalty a study by Wernerfelt (1991) enlightened that
the two models of brand loyalty are characterized, the first model is the inertial brand loyalty in a
outcome as of time lags in understanding and the second model is the cost based brand loyalty in
a outcome as of inter temporal usefulness consequences. Their market intensity propositions are
properly in a result of continuous time model. As it been established that the inertial brand
6
loyalty directs to equilibria through price distribution, whereas cost based brand loyalty as well
possibly would permit lone price equilibria. In the entire cases, since brand loyalty disappears, as
a result creates the differentiation among the standard trading price plus the price which achieves
by means of no brand loyalty.
About the consumer’s loyalty towards a brand by Agrawal (1996) stated that every company’s
brand has a segment of loyal consumers who purchase their beloved brand if not the contending
brand is presented at a great deal of lesser price through the seller. The amount of consumers
which are loyal is dissimilar meant for the two brands furthermore is that the power of their
loyalty towards their preferred brands of the goods. The consumers whom are loyal to the brand
by means of hardcore loyalty need a superior price difference in support of the contending brand
prior to the change from the preferred brand of the goods.
According to the study by Shugan(2005) suggested that loyalty towards brand plus the additional
contemporary issues of figuring customer life span assessment and formulating loyalty plan stay
the main spot for a significant number of research based articles and studies. At initial, this
research shows steady with company performances. On the other hand, thorough analysis
discloses disaffirming substantiation. A lot of existing so called loyalty plans show distinct to the
promotion of brand loyalty of the customer along with the formation of customer possessions.
Kotler, Armstrong, Saunders, and Wong (2002) who is one of the ultimate researchers of
marketing believed that brand is a forename, expression, design, symbol or else it can be
believed as a blend of these basics. These basics are proposed to recognize the products of a
trader furthermore branding distinguishes it from the other individual.
Schultz and Schultz (2003) felt that a brand must be taken care of as a lawful asset for the reason
that the value of a brand is obligatory. Here the related behaviour mutually the researchers as
well stressed out on the setting that brands have the worth by which a company can grow its
extended associations with their customers.
Moore, Wilkie, and Lutz (2002) suggested that in present competitive battlefield, the perception
of brand equity has established to be a significant foundation of strategic imminent for the
marketers. Though, one prospectively important foundation of brand equity is the process of
intergenerational influences which has been normally been ignored in the marketing text.
Keller and Keller (2007) elucidated that brands are utilized not simply to develop an affecting
connection among the products and the consumers however it is in point of fact employed as a
marketing language in support of a particular item or good. The main and purposeful
characteristics of a brand truly signifies the market examination and a research as well as need on
the way to the accomplishment of specific unaddressed part or a move to a new inclination in
fashion and market .The approach a brand represents itself is almost the same way a consumer
recognizes it. Therefore the brand simply leads the loyalty of consumers on the way to the newfangled direction or the way anywhere it wants its consumers to subsist.
7
The researchers suggest a theoretical structure through which marketing fundamentals be linked
to the magnitude of brand equity, which is, brand loyalty, association with brands along with
perceived quality pooled with brand awareness. These magnitudes are then associated to brand
equity. The results have shown through the researchers that regular price promotions, such as
price deals, are linked with little brand loyalty, elevated price, while elevated advertising
expenditure, superior store representation, and elevated supply and distribution concentration are
associated to high brand equity. The studies explore the associations between selected marketing
mix elements and the formation of brand equity.
As according to the researcher the usage of the cosmetic is not up to the standard then it would
have cause worse results and consumer can switch to other brands too. In several cases this shift
has remarkable or disturbing consequences on skin. Fragile dermal surface are not intended to be
beaten by varying cosmetics or skin care products frequently. Most of the skin care experts,
estheticians and dermatologists suggested that it took almost four weeks - three months for skin
to observe a visible constant alteration which can be fine or unwell, towards a fresh skincare
product or cosmetic. Through not letting the skin, point in a stretch it needs to regulate to
whichever fresh cosmetic or skincare products or items are using, the customers do not
understand that these are harming the skin. Damaged skin would eventually build up, peeling,
itchiness, Products based Rosacea, pimples and acne, tiny bumps as well as sometime
staphylococcus. One of the most important reason that consumers are unable to achieve the
desire results or skin damaging issues because of the usage of infected and polluted applicators
of makeup such as, makeup clothes or else brushes and sponges. As the consumer are becoming
more educated about their skin type and their daily routine so that companies are also trying to
educate their consumers. By reading the factual information about the cosmetic and skin care
product consumer are making their decisions and because of this consumers loyalty towards the
brands are changing. Pricing and availability are the most important aspects because of it
consumer switch from one brand of cosmetic to another. Because of the research and keeping a
strong eye on the quality of the products brand loyalty can be increased.
Research proposed that beauty awareness amongst population in a broad-spectrum is shifting.
The pattern and inclination of utilization of these products vary according to diverse segments of
age, socio-economic class and gender. The review on the data on the cosmetic and toiletry
industry, not several studies are existing especially about Pakistani scenario and even for about
International scenarios.
Some global and local scenarios are defined below which are describing the usage of cosmetics,
brand loyalty, consumer behaviors and the growth in the cosmetic industry. In 2010, the world
market for toiletries and cosmetics was prized at USD 501 billion, up 4.8% from 2009 (in fixed
trade rate terms). Though full-grown, hair care upholds its position as the most precious sector in
global toiletries and cosmetics. According to Global Cosmetic Industry report (August, 2010) the
advanced learning offered by brands regarding the products' elements and reimbursements have
ended today's consumer more responsive of what is needed for applying on the bodies and
creating them additional amount to pay.
8
The Pakistani cosmetics industry is on the rise in terms of product progression and marketing.
The inclinations of Pakistani consumers are shifting from the purely practical products to more
towards highly developed and specialized cosmetic products. In 2010, sales of toiletries and
cosmetics rose by 9% in current value terms in Pakistan. The sales in 2010 have shown a great
number of growths, the major cause is being a better ability to buy personal grooming items
amongst a better base of financially self-sufficient women, many appropriate product launches
and increasing beauty awareness and knowledge, particularly between the younger people. In
spite of the enormous promising potential in Pakistan, toiletries and cosmetics is anticipated to
grow up at a comparatively sluggish pace in even value terms. The possible basis being
undistinguished presentation of products which have by now comprehensive household
penetration, such as oral hygiene and shower and bath products, which signify collectively over
half of the worth sales of toiletries and cosmetics in Pakistan.
Although the growth was influenced by low product understanding or be short of of inclination
to spend on toiletries and cosmetics particularly in rural parts. The hard line price contests of
regional and local players, which detained volumes with improved trade margins and a great deal
of discounted options, have also added to the equivalent.
The entry of many multinationals and also the local companies into the Pakistani toiletries and
cosmetics industry in 2005 to 2010 has ended up it a tremendously demanding and vibrant
market. All the foreign companies are paying more attention on re-launches and product
advancement and brand extensions stretch across numerous price peaks, and improved product
penetration through broadening their sales and distribution networks. The foremost companies
have rationalized their ad expenditure to produce savings that has permitted them restore their
pricing strategies also present free gifts to retain their existing consumers. Despite the fact that
other global companies are using conventional Pakistani Herbal and Traditional Applications for
beauty solutions. Pakistani consumers are progressively more into international celebrities in
skincare brands and cosmetic brands, in the conviction that the relationship with and the usage of
an international brands bestow one with a classy and upper class look.
The major rationale for the growth in cosmetic industry as growing beauty and fashion
awareness joined with rising focus on fitness and health and rise in the income. To match this,
cosmetology or beauty lifestyle has appeared as a most important business opportunity with
considerable commercial prospective. Products and media publicity, techniques and Innovative
scientific development has participated in Pakistani fashion business in producing major
revenues and this has provided the development of toiletries and cosmetics industry. According
to the Euromonitor International, 2006 had reported the reasons of consumer buying behavior
towards the toiletries and cosmetics industry that the intensifying media exposure, deeper
consumer pockets, beauty awareness and increasing hygiene, growth in retail fragment and wider
accessibility and availability, larger product preferences, due to shifting lifestyles and
demographics.
Over the recent times, Pakistan has observed increasing urbanization and better beauty
consciousness amongst the women of the society, penetration of satellite television, increasing
9
literacy levels, which has produced in rewarding growth prospect to toiletries and cosmetics
producers.
Most of the sales of toiletries and cosmetics market in Pakistan are with these market leaders i.e.
Unilever, Colgate Palmolive, Procter and Gamble Pakistan, Olivia Pakistan (Bleach Cream) and
L’Oréal Pakistan. The rest is much sectioned with number of companies demanding to acquire
the part in the market. The existence of a huge grey market and a lot of forged products is also
the reality of the toiletries and cosmetics market.
There is price competition and high development in founded mass market toiletries such as
toothpaste, bar and soap. In view of the fact that the standard Pakistani families persistently to be
extremely price responsive, these well-liked mass-market items would have the biggest share of
toiletries and cosmetics sales. This would suggest high growth forecasts of the on the whole
market above the future years. The toiletries and cosmetics market are also approaching
competition from further consumer durables which are automobiles, mobile phones, home
theatres and computers also the housing segment. The fall in interest rates has directed to a
growth in real estate purchases and housing schemes and loans. As a price conscious, there is a
bound to the quantity that the regular consumer would pay out on luxury products like
fragrances, skincare products and cosmetics.
Pakistani’s expenditure on toiletries and cosmetics are comparatively diminutive because of rural
and suburban regions focusing on fundamental toiletries and cosmetics. The buying authority of
Pakistani consumers is growing in that way molding the desires and standard of living of
consumers, who are improving to good quality, worth items at reasonable prices. Cosmetic
Companies have put in a great deal on upholding product understanding and visibility between
rural population, which has improved the demand of the basic products such as hair oils, soaps,
tooth powders and pastes, lipsticks and talcum powders in rural regions, the result of this that it
has also improved the demand for basic everyday products such as sun care, skin care, hair care,
shower and bath items and oral sanitations. An additional approach pursued by companies to
encourage cosmetics in rural segments was sachets’ strategy. The premium quality niche items
consist of body wash/shower gel, sun care and skincare product, deodorants, depilatories, toners
and mascara are along with other products which are uninformed to the rural population. The
usage of color cosmetics become known as one of the highest growing segment of the toiletries
and cosmetics market over the period of time especially in urban market. As far as the sales are
concerned it is approximately entirely produced from the urban market, intensely from the
different areas of Islamabad / Rawalpindi, Lahore, Karachi, Faisalabad and Peshawar. Because
of the influenced of the Western culture, self hygiene products are utilized for the most part in
urban regions as compare to their opposite number in rural regions. Pakistani women are
progressively becoming more beauty aware. As per the Consumer Graphics’ Reports discovered
that Pakistani ladies of the age (15-25 years) are a huge part of the Pakistani makeup sales and
the future growth has been projected because of the knowledge and awareness about the skin
type and cosmetics. Following new trends and experimenting with their looks is quite popular in
teens and young adults this is one of the reasons that Pakistani women have increased the usage
of makeup. The improved buying capability of women domestics facilitated them to invest
further on personal hygiene and grooming. The basic reason behind it is that the growing number
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of females becoming independent and brings finances to home as females’ literacy rate is
increasing and rising awareness of the media. As most of the people in Pakistan have become
more aware about the manner that how do it required to appear in public and are progressively
more seemingly looking forward to groom themselves by using products to up bring their wellgroomed physical emergence and enhance their personality. This newborn awareness of brush up
and tidy look has been encouraged by the society and encourages the active contribution in the
day to day life and to admire others to use products which are of good quality and in their price
range.
3.
RESEARCH METHODS
3.1
Method of Data Collection
The method which has been used for data collection was the Survey. As surveying is one of the
most crucial and important part of any research so it was also one of the intricate and time
consuming element of the research as it involves meeting numerous number of people whom are
part of different sorts of life. For this survey especially questionnaire was been designed and it
has been consciously attempted during this survey that prior to filling the questionnaire from
people the importance and reason of the questionnaire should had been obvious on them in a way
to evade any pointless biasness on the part of the contributors. The sample was selected from all
walks of life means from different demographics like; non working, working, family status,
social classes, ages, marital status, income levels, heights of Karachi, so that there would be no
biasness in the data.
3.2
Sampling Technique
For this study the Unrestricted Non- Probability Sampling Method has been used.
3.3
Sample Size
For this study the sample size which has been comprised of 150 reactants/respondents for the
research. The reactants/respondents which were chosen were from diverse walks of life to obtain
the unbiased data as the research was been dependable upon it. The cautious efforts have been
made in order to get the unbiased data and the reactants/respondents were explained about the
topic so that the results could be accurate and transparent.
3.4
Instrument of Data Collection
The instrument of data collection which has been designed for this research is Questionnaire.
Questionnaire has included 20 questions along with it is majorly divided into two different
sections and each one section has the similar layout in the questionnaire.
The questions incorporated in the first section are based on Dependent Variable (Brand Loyalty),
in the second section are based on Independent Variable (Price, Perceived Quality, Availability
and Promotion).
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3.5
Research Model developed
The research model which was prepared, illustrates that Independent Variable (Price, Perceived
Quality, Availability and Promotion) can predict Dependent Variable (Brand Loyalty). This
research model is reflecting that the Independent Variables (Price, Perceived Quality,
Availability and Promotion) are predicting the Dependent Variable (Brand Loyalty) with the help
of Multiple Regression Model.
Price
→
→
Perceived Quality
Availability
Brand Loyalty
Promotion
3.6
Statistical Technique
For this research the Multiple Regression Analysis was been applied. In order to test the
hypothesis for the grounds that there are four independent variables (Price, Perceived Quality,
Availability and Promotion) and one dependent variable (Brand Loyalty).
Optimal scaling technique has been employed for this research, as the data was non-parametric
ordinal data or categorical data. At this juncture have taken one dependent variable (Brand
Loyalty) and have taken independent variable (Price, Perceived Quality, Availability and
Promotion). For the questionnaire filling it has been attempted to offer every necessary
awareness to the reactants/respondents so without difficulty provide the correct outlooks and
ideas as per inquired in the questionnaire which would be valuable for the statistical technique to
be executed.
4.
RESULTS
4.1
Findings and Interpretation of the results
Table 4.1
Model Summaryb
Model
R
R Square
Adjusted R Square
Std. Error
Estimate
of
the
.729a
1
.532
.519
.26007
a. Predictors: (Constant), Perceived Quality, Promotion, Price, Availability
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Model Summaryb
Model
R
R Square
Adjusted R Square
Std. Error
Estimate
of
the
1
.729a
.532
.519
.26007
a. Predictors: (Constant), Perceived Quality, Promotion, Price, Availability
b. Dependent Variable: Loyalty
The Table 4.1 informs that the potency of the association among the dependent variable as well
as the model. “R” is the multiple correlation coefficients, is the linear correlation among the
witnessed as well as the values of dependent variable from model predicted, as its huge value
signifies a resilient association. The value of the multiple correlation coefficients is the
coefficient of determination squared which is R Square. It shows that about half the deviation in
time is explicates through the model. At this point the assessment of Adjusted R Square has been
taken for the reason that there are four independent variables (Price, Perceived Quality,
Availability and Promotion) and the value of Adjusted R Square is 0.519.
Table 4.2
ANOVAb
Model
1
Sum of Squares df
Mean Square
F
Sig.
Regression
11.143
4
2.786
41.188
.000a
Residual
9.807
145
.068
Total
20.950
149
a. Predictors: (Constant), Perceived Quality, Promotion, Price, Availability
b. Dependent Variable: Loyalty
The test which tested the adequacy of the model as of a Statistical viewpoint is the table of
ANOVA. The row of Regression exhibits facts regarding the deviation observed, intended for
the model. The row of Residual exhibits facts regarding the deviation which is not observed,
intended for the model. The sum of squares, Regression plus Residual are more or less
equivalent that point out, about half of the variation in (Price, Perceived Quality, Availability and
Promotion) time is described through the model and as the significance value is less than 0.05 of
the “F” Statistic which indicates, the deviation described through the model is not for the reason
that of the chance. As the table of ANOVA is a helpful assessment for the capability of the
model to clarify whichever deviation in the Dependent Variable, its do not straightly deal with
the power of that association. Here the value of F is 41.188 at P = 0.000 which is P<0.05, hence
it is significant.
13
Table 4.3
Coefficientsa
Unstandardized
Coefficients
Collinearity
Statistics
B
Std.
Error
(Constant)
1.748
.181
Price
-.095
.030
-.235
-3.187 .002
.594
1.684
Availability
.227
.033
.558
6.961
.000
.502
1.993
Promotion
.080
.030
.166
2.689
.008
.852
1.173
.395
5.508
.000
.628
1.592
Model
1
Standardized
Coefficients
Perceived
.180
.033
Quality
a. Dependent Variable: Loyalty
Beta
T
Sig.
9.636
.000
Tolerance VIF
In this table illustrates that there are the entire variables are significant variables which are the
Price, Availability, Perceived Quality and Promotion that have the significant value less than
0.05. On the other hand the negative value of beta shows the negative relationship between
Brand Loyalty and Price even as rest of the variables demonstrating the positive association. As
the cutoff point of t is 1.5, therefore here all the variables t value is greater than 1.5 so it has been
accepted. Tolerance Test and VIF have shown that there is no multicollinearity between the
independent variable because the values of Tolerance Test greater than the defined range of
Tolerance Test which is 0.1-0.2 and the values of VIF is less than the defined range of VIF
which is 5-10.
4.2
Hypotheses Assessment Summary
Hypotheses
Beta
Price has a significant impact on the Brand -0.235
Loyalty.
Perceived Quality has a significant impact on 0.395
the Brand Loyalty.
Availability has a significant impact on the 0.558
Brand Loyalty.
Promotion has a significant impact on the 0.166
Brand Loyalty.
Value
of Adjusted
Significance R Square
0.002
0.519
Accepted/
Rejected
Accepted
0.000
0.519
Accepted
0.000
0.519
Accepted
0.008
0.519
Accepted
14
5.
CONCLUSION, DISCUSSIONS, IMPLICATIONS, LIMITATION
AND FUTURE RESEARCH
5.1
Conclusions
In this research the impact of Mix Model on the brand loyalty in the field of cosmetics is quite
visible. There are four hypotheses in this research. All four of them test the impact of mix model
on the brand loyalty in the field of cosmetics. According to the results of this research all four of
independent variables (Price, Perceived Quality, Availability and Promotion) have the significant
impact on dependent variable (Brand Loyalty). Independent variables (Price, Perceived Quality,
Availability and Promotion) have shown the significant value less than 0.05 which are reflecting
the approval of the hypotheses that would be comprehend the significant effect of independent
variables on dependent variable in this research.
5.2
Discussions
Mix Model is used for identifying the target market, promoting the product and identifying the
reasons of sales according to the need of the consumer as per the analysis on the four variables
(Price, Perceived Quality, Availability and Promotion). In this research the data was been
collected through a questionnaire. 150 females from different walks of life were been asked to
fill the questionnaire so that the diversity of the data would become part of the research. The
reason of the study is to discover out the outcome of independent variables (Price, Perceived
Quality, Availability and Promotion) on dependent variable (Brand Loyalty) in the field
cosmetics. For this research multiple regression analysis was used to assess the significances of
the independent variables (Price, Perceived Quality, Availability and Promotion) in forecasting
the dependent variable (Brand Loyalty). The result of the test interpreted that all four of the
independent variables (Price, Perceived Quality, Availability and Promotion) are significantly
forecasting the dependent variable (Brand Loyalty) These results have shown that the Price,
Perceived Quality, Availability and Promotion significantly influenced the Brand Loyalty of the
consumer of the cosmetics.
5.3
Implications and Recommendations
The Mix Model concept consolidates the concept of Marketing Mix. This research may perhaps
be significant for prospect researchers to be conscious of the aspects deeply manipulate the
consumers’ choice towards the cosmetics and cause the affect on the brand loyalty. In this
viewpoint the significance of the research topic emerges unambiguous. As Marketing Mix is one
of the most important concepts which helps to determine the marketing strategy or the marketing
plan for a company. By seeing the impact of Mix Model on Brand Loyalty in cosmetics it has
been observed in this research that significant impact which presents the exposure or revelation
for other researchers to work more in this contrast.
15
5.4
Limitation and Future Research
Many diverse, specific and different variables can link up with Brand Loyalty for the future
researches. The researchers can able to work on different aspect of the Brand Loyalty and Mix
Model. In this research all four variables were accepted therefore it would be excellent
experience for the researchers to work on further aspects and dimensions that may illustrates the
significant relationship with Brand Loyalty and further scrutinize the reasons of the impact of
Mix Model on Brand Loyalty through the research. This research possibly would support
numerous numbers of other researchers for the advance researches and studies.
16
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