A

SYNOPSIS
ON
“BUYING BEHAVIOUR OF CONSUMERS
TOWARDS ORGANIC COSMETIC PRODUCTS”

Submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration
(2017-2019)

Submitted to
Department of Business Administration

Punjab College of Technical Education, Baddowal, Ludhiana.

Affiliated to
Punjab Technical University, Jalandhar.

Research Supervisor Submitted by

Name
Designation Roll No ….
 INTRODUCTION
Cosmetics or skincare products are the products that people use for their personal purpose
such as cleanliness, fairness, body odour, etc. It includes various types of creams like
moisturizing creams, cold creams, fairness creams, body talc, deodorants, perfumes,
mists, body oils, hair oils, shampoos, conditioners, soaps, body washes and all other
beauty care products. These are the core FMCG products. In other words we can say that
the personal care products or cosmetics are the backbone of FMCG industry. Now, the
demand of personal care products is increasing day by day.

Today, not only the working or financially independent women are skin conscious but
also the teenagers, young girls and the housewives are equally aware and conscious about
their skin and beauty. Media and advertisement has played a major role in changing the
perception and preferences of women towards cosmetics and other skincare products. We
can see every cosmetic brand is promoting its range of skincare, haircare products at such
a faster pace. Maximum celebrity endorsement is in this sector. Even the advertisements
of bathing soaps are endorsing the film stars which are highly paid for endorsing
themselves into the advertisements. So, with all these changes the women became highly
conscious about their skin care but the focus is mainly on all the chemical based
cosmetics as they are easily available, highly promoted and had captured the greater share
of personal care and cosmetics industry. The Indian cosmetic industry has witnessed
rapid growth over the last couple of decades but the main focus has always been on
manufacturing chemical based cosmetics.

Some of the companies started to manufacture the cosmetics which include harmful
chemical ingredients also such as parabens, phthalates, triclosan, xylene etc, which are
not harmful to skin only but also our natural environment as many of these chemicals are
non-biodegradable and they are disturbing the ecological balance of nature to some
extent. Now, the biggest question is it possible to take care of your skin while being
ecologically correct? Here, comes the concept of natural and organic cosmetics, made
from almost 100 percent natural components, their production processes are also totally
sustainable, from raw materials to marketing. This provides the consumer with the
certified quality product that is not harmful to skin. This study is related to organic and
natural cosmetics because these cosmetics are not just a fad but rather a better health care
and they are being suggested for used by dermatologists and cosmetologists.

Organic cosmetics are rich in vegetable and essential oils, butters and various extracts
that never harms our body and natural environment. According to International standards
of ECOCERT(Ecological and Organic certification), for a cosmetic product to be
considered organic, it is necessary that 95 percent of its natural raw materials are
organically certified, free from chemical, synthetic or animal substances. Product may
contain 5 percent purely synthesized ingredients, that is, molecules derived from
chemical synthesis and only when they are absolutely necessary for production process.
Organic cosmetic components must follow stricter agricultural production control. They
must be grown in uncontaminated soil and their cultivation must be pesticide free. Raw
materials harvested from dead animals are strictly prohibited. Some naturally produced
animal raw materials are allowed for example - Milk. Animal raw materials cannot hurt
endangered species and their harvesting cannot negatively impact ecological balance.
Mineral raw materials are allowed, provided they are used for their intrinsic properties
and that their extraction does not pollute or degrade the environment according to the
purity criteria. The global market of truly natural and organic cosmetics is estimated at
around 6.5 billion Euros in 2011 dominated mainly by US and Europe.

Meaning of Organic Cosmetics

The term ‘natural’ and ‘organic’ are often used interchangeably or simultaneously most
of the times. There is just a basic difference between both. The difference lies in the
production or we can say agricultural process of the ingredients which are being used in
manufacturing these cosmetics. The organic cosmetics are made from the organically
produced vegetables, flowers fruits etc. They are grown and harvested in the
uncontaminated soil without the use of any pesticides and herbicides. On the other hand
the natural cosmetics are also made from the same type of ingredients but its not
necessary that they have to be an organic produce.
 REVIEW OF LITERATURE
Chattaraj et al., (2018) examined the relationship between various demographic and
socio economic factors of the consumers are important. The study was based on primary
data captured through a structured questionnaire and was administered to a total of 187
respondents. Descriptive statistics were used to find out the significance of association
between the demographic and socioeconomic attributes and frequency of buying herbal
cosmetics. Factor analysis was considered appropriate to find out the factors underlying
the buying behaviour of herbal cosmetics. The findings of the study showed a significant
relationship between age, household income, and education with frequency of purchasing
herbal cosmetics.

Bhatt and Sankhla (2017) analysed the consumer buying behavior towards cosmetics.
100 samples were taken from Navsari city, Gujarat. Both Primary and secondary data
were used in research. One sample t-test, frequency analysis and multiple response
analysis were used as data analysis statistical tools. People consider quality as the most
important factor to purchase cosmetics. The findings may be used to marketers to design
marketing strategy for cosmetics.

Rajarajan and Birundha (2016) examined that how the beauty of a person gives
perceptual experience of pleasure or satisfaction. Herbal Cosmetics, referred as Products,
are formulated, using various permissible cosmetic ingredients to form the base in which
one or more herbal ingredients are used to provide defined cosmetic benefits and are
called as “Herbal Cosmetics”. Herbs do not produce instant cures. They offer a way to
put the body in tune with nature. The demand of herbal medicines is increasing rapidly
due to their skin friendliness and lack of side effects. The best thing of the herbal
cosmetics is that it is purely made from herbs and shrubs and thus is free of side-effects.
This article highlights the consumer behaviour towards herbal cosmetic products in India.

Salo (2014) explored the consumer behavior towards green cosmetic products in Finland.
The goal of the study is to explore the various factors which influence the purchasing
decisions of facial products. An online questionnaire was developed to serve the purpose
of the study. The questionnaire consists of 28 questions, and it was sent by email. In total,
177 women took part in the survey. The results of the includes the summary, where the
outcomes of the thesis are highlighted.

Kataria et al., (2013) explored the factors influencing consumer behavior for eco-
friendly products by applying the theory of planned behaviour. To accomplish this, in-
depth interviews were conducted with individual customers. The findings revealed that
values (concern for the health of children and family members) and knowledge (about
environmental issues and products) had a strong influence on eco-friendly purchase
behaviour. This research also discusses how the present findings may help green
manufacturers and marketers to improve their environmental products and campaigns.

Rawat and Garga (2012) noted that the potential of green marketing in the Cosmetic
industry which caters to the demands of one and all, ranging from newborn to the
nonagenarians. This industry produces wide range of products which guarantee beauty
and youth. Research conducted over a sample of 200 working women in Pune, gave quite
optimistic results. Comparatively higher cost, of green cosmetic to the chemical one, was
perceived as a threat but the changing demographic and economic factors in India proved
it otherwise.

Maria (2011) examined the effect of environmental consciousness, health consciousness,

appearance consciousness, ecoliteracy and interpersonal influence on consumers’
attitudes toward organic cosmetics in Greece. The relationship between attitude and
intention toward purchasing organic cosmetics is also investigated. This study is based on
results of a self – administered questionnaire survey conducted on a sample of 100 Greek
consumers. The data collected were analyzed with SPSS 19.0 and regression analysis was
used to test the relationships among the variables. The results indicate that environmental
consciousness and informational influence are important predictors of attitude toward
organic products.
NEED OF THE STUDY
From the last decade onwards people became more concerned about their health as a
result of which they are using more of green products. Green products can be stated as
having less of an impact on the environment and are less damaging to human health than
conventional products, and hence are also called as sustainable or environment friendly
products. The purpose of the study is to examine the buying behaviour of consumer
towards organic cosmetic products because consumer behaviour is a very complicated
field of study. There are many factors, which affect the behaviour of consumers which
purchasing, using and evaluating the products. It will help understand the reason as to
why female prefer the organic cosmetic product. It will help understand the reason for the
variation in the buying behaviour in the consumers. This study helps to understand the
preferences of females towards the natural and organic cosmetics and the factors
affecting their decisions to buy certain cosmetic products.
 OBJECTIVES OF THE STUDY
 To study the buying behaviour of consumer regarding the natural and organic cosmetics.
 To study the level of awareness in consumer regarding the natural and organic cosmetics.
 To identify the factors affecting consumer behaviour in choice of natural and organic
cosmetics.
 To know whether the females prefer to shift from chemical based cosmetics to natural
and organic cosmetics.
 SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes
place. How individuals learn is a matter of interest to marketers. They want to teach
consumers in their roles as their roles as consumers. They want consumers to learn about
their products, product attributes, potential consumers benefit, how to use, maintain or
even dispose of the product and new ways of behaving that will satisfy not only the
consumer’s needs, but the marketer’s objectives. The scope of my study restricts itself to
the analysis of female’s preferences, perception and purchase behavior of natural and
organic cosmetics. The scope of my study is also restricts itself to Ludhiana region only.
 RESEARCH METHODOLOGY

RESEARCH DESIGN
In this research project Exploratory Research Design will be used.

SOURCES OF DATA
Primary data : Primary data will be collected fresh and thus happen to be original
in character.
Secondary data: Secondary data will be collected from journals, books, websites
etc.

SAMPLING SIZE
The female consumers of Ludhiana city will be select for the research. The sample will
be 200 female consumer select from different area of Ludhiana city like, sarabha nagar,
civil lines, Ghumar Mandi, Model Town, Dugri, Gurdev Nagar and BRS Nagar.

SAMPLING TOOLS AND TECHNIQUES

Convenience sampling will be used for this study.

RESEARCH TOOLS
A structured questionnaire will be prepared for the purpose of primary data collecting.

STATISTICAL TOOLS AND TECHNIQUE

The statistical tool and techniques like a percentage, chi square & correlation will be used
in this study.
 REFERENCE

Bhatt, K., and Sankhla, P., (2017). A study on Consumer Buying Behavior towards
Cosmetic Products, International Journal of Engineering Technology Science and
Research, 4(12).
Kataria, A., Kataria, A., and Garg, R., (2013). Factors Affecting Green Purchase Behavior:
An In-Depth Study of Indian Consumers, Journal of management research – SCMS
Noida, 1(2), 15-41.
Maria, K., (2011). Attitudes and intention toward organic cosmetics in Greece: an
exploratory study, Master Thesis: International Hellenic University, Thessaloniki.
Rajarajan, M., and Birundha, G., (2016). Consumer Buying Behaviour towards Herbal
cosmetic Products in India- An overview, International Journal of World
Research, 1 (34).
Rawat, S.R., and Garga, P.K., (2012). Understanding Consumer Behaviour Towards
Green Cosmetics, SSRN Electronic Journal. Retrieved from
http://www.researchgate.net/publication/256027708
Salo, E., (2014). Consumer behavior towards green skin care cosmetic products in
Finland, Bachelor's thesis SEINÄJOKI UNIVERSITY OF APPLIED SCIENCES,
Finland.
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Soap-Or-A-Conventional-Soap