PURCHASE OF COSMETIC PRODUCTS: A STUDY OF FACTORS

INFLUENCING NARESUAN UNIVERSITY GRADUATE STUDENTS’

PURCHASE BEHAVIOR

SANITPONG MOUNGTHONG
SAITHIP PAMITTASIL
CHUNHAPAK UNGTAWORNDEE

An Independent Study Submitted in Partial Fulfillment

of the Requirement for the Master of Business Administration Degree
(International Program)
May 2008
Copyright 2008 by Naresuan University
 The independent study entitled “Purchase of Cosmetic Products: A Study of
Factors Influencing Naresuan University Graduate Students’ Purchase Behavior”,
submitted in partial fulfillment of the requirements for the Master of Business
Administration Degree in Business Management is hereby approved.

……………………………………………
(Srisuda Chongsithiphol, D.B.A)
Advisor

……………………………………………
(Srisuda Chongsithiphol, D.B.A.)
Director, Bangkok Academic Center
Naresuan University
May 2008
 ACKNOWLEDGEMENT

We are deeply grateful to Associate Professor Doctor Srisuda Chongsithiphol

for her invaluable advice and her patient proofreading towards the completion of this
independent study. Furthermore, we also sincerely thank Assistant Professor Doctor
Suthinun Promsuwan for his kindness in writing concept proofing.
We would also like to extend our sincere thanks to all committees for their
helpful correction of this paper and their suggestions for the accomplishment of the
independent study. Their ideas are so useful that this independent study becomes more
helpful to those who might want to extend or do a similar study.
Additionally, we would like to thank those whose names are not mentioned
here but have greatly inspired and encouraged us until this independent study comes
to a perfect end.

Chunhapak Ungtaworndee
Saithip Pamittasil
Sanitpong Mungthong
Title Purchase of Cosmetic Products: A Study of Factors
Influencing Naresuan University Graduate Students’
Purchase Behavior
Author Chunhapak Ungtaworndee, Saithip Pamittasil,
Sanitpong Mungthong
Advisor Srisuda Chongsithiphol, Ph.D.
Type of Degree Independent Study MBA. in International,
Naresuan University, 2008
Key words Purchase, Cosmetic

ABSTRACT

The purpose of this research was to study the factors influencing purchase
behavior for cosmetic products. The specific purpose was based on factors that affect
consumer behavior of purchasing. There were 3 steps to the study:
(1) Data collection (2) Data analysis (3) Summary. The quantitative study consisted
of 271 respondents of questionnaires. The SPSS for windows was performed to
analyze basic statistics. The research results indicated that there are relationships
between gender, brand, and price. Moreover, there are relationships between income
and brand.
 LIST OF CONTENT

Chapter
Page

IAAINTRODUCTION…………………………………………………. 1
Rationale of the Study……………………………………...………... 1
Purpose of the Study…………………………………...…………..... 1
Significance of the Study………………...…………………………... 1
Scope of the Study…………………………...………………………. 2
Basic Assumption……………………………...…………………….. 2
Definitions of Terms…………………………..…………………….. 2
Hypotheses…………………………………..……………………….. 4

IIAALITERATURE REVIEW………………….…………….………... 5
aaaThe Meaning and General Characteristics of Cosmetic aaa
aaaaaaProducts…………………………………………………..……..…. 5
aaaCosmetic Market in Thailand……………………...……..…………… 8
aaaMain Product in the Market……...………………………..………...... 17
aaaMarketing Mix…………………………….………………..………… 24
aaaResearches…………………………………………………………….. 35

IIIAAMETHODOLOGY………….…………………………………… 40
aaaPopulation and Sample………………………….………………….... 40
aaaResearch Instrument…………………………………………………... 41
aaaData Collection……………………………………………………...... 41
aaaAnalysis of Data………………………………………………………. 41
 LIST OF CONTENT (CONT.)

Chapter
Page

IVAARESULTS…………………………………….………………………… 43
Part I Data Analysis on Respondents’ Personal Information…...... 44

Part II Data Analysis on Consumer Behavior…………………...... 59

VAACONCLUSION AND RECOMMENDATIONS………...…………... 66

Findings…………………………………………….……………... 66
Discussion………………………………………………...……….. 67
Recommendation…………………………………………………... 67

REFERENCES……………………………………….…………... 68

APPENDIX……………………………………...………….…. 72

BIOGRAPHY……………………………………………………... 78
 LIST OF TABLES

Table Page

1 Market Share by Sub-Sector…………………………………………… 9

2 Cosmetic Import Export Statistic……………...……………………….. 9
3 Import Duty………………………………………...………………….. 12
4 Cosmetic Products Market in Thailand 2004-2006……………………. 14
5 Import Duty Contact Information at the Thai Food and Drug
aaaAdministration Office………….…………………………...……... 16
6 The Main Organizations that Produce Face Treatment Product in the
aaaMiddle Level…………………………………………..…………… 19
7 The Worth of Face Treatment Product in Middle Level…………..…... 20
8 Market Share for Face Treatment Product. 2003………………………. 20
9 Market Share for Face Treatment product. 2004………………………. 20
10 Market Share for Face Treatment product. 2005………………………. 21
11 Market Share for Face Treatment Product in Each Brand 2005……….. 21
12 Market Share for Anti-Age Product in Each Brand 2005……………… 21
13 Market Share for Whitening Product in Each Brand 2005………..…… 22
14 Growth Cosmetic Product in High Level 1998-2004………..………… 22
15 Category Mix Top 20 High Level Brand 2004………………………… 23
16 The Cosmetic Products Price in the Market (Sample)…………………. 29
17 Men Cosmetic Products….……...……………………………………. 31
18 The Sample of Cosmetic Products Promotion…………………………. 33
19 Questionnaire Quantity………………………………………………… 43
20 Comparatives in Gender as Related to Price……………………...…… 59
21 Comparatives in Age as Related to Price.……………………..………. 59
22 Comparatives in Income as Related to Price…………………...……… 60
23 Comparatives in Education as Related to Price………………..………. 60
24 Comparatives in Occupation as Related to Price………………..……... 61
25 Comparatives in Gender as Related to Brand…………………….......... 62
 LIST OF TABLES (CONT.)

Table Page

26 Comparatives in Age as Related to Brand……….…………………….. 62

27 Comparatives in Income as Related to Brand……….…………….…… 63
28 Comparatives in Income as Related to Brand by Couple
aaaConsideration…………………………………..…………………… 63
29 Comparatives in Education as Related to Brand………….………….… 64
30 Comparatives in Occupation as Related to Brand………….………….. 64
 LIST OF FIGURES

Figure Page

1 Conceptual Framework……………………………………………… 4
2 Respondents Percentage by Age………………..……………………. 44
3 Respondents Percentage by Education……………………..………... 45
4 Respondents Percentage by Career…………………………..………. 45
5 Respondents Percentage by Gender……………..…………………… 46
6 Respondents Percentage by Income……………………..…………... 46
7 Respondents Percentage by Buying reason……………….…………. 47
8 Respondents Percentage by Brand influence……..………………….. 48
9 Respondents Percentage by Product quality influence……………..... 49
10 Respondents Percentage by Buying reason………………..………… 50
11 Respondents Percentage by Packaging influence……………………. 51
12 Respondents Percentage by Price influence…………..……………... 52
13 Respondents Percentage by Convenience store influence………...…. 53
14 Respondents Percentage by Atmosphere influence………………….. 54
15 Respondents Percentage by Service influence……………...………... 55
16 Respondents Percentage by Discount influence………………...…… 56
17 Respondents Percentage by Advertisement influence……………….. 57
18 Respondents Percentage by Suggestion influence……...……………. 58
 CHAPTERaaI

INTRODUCTION

Rationale for the Study

The cosmetic industry is growing very fast. There are more people interested
in cosmetic products than before. Nowadays, cosmetic products are a part of life for a
lot of people, especially women. On the other hand, cosmetic product lines for men
are expanding and increasing. The key factor which determines purchase behavior is
career and daily life activity. Nowadays, consumers are more aware of what they are
wearing on their bodies, and they are willing to pay for products which enhance
appearances and keep them looking young and fit. (Nair and R, 2007)
At the moment, cosmetic products have a greater influence than they have in
the past. There is a rapid change in the purchase behavior of consumers because the
quality of life is increasing and the world is shrinking. The world is global and
information is fast moving. Therefore, consumers are more highly educated and
receive information easily. Their purchase behavior is changing. There are many
factors affecting purchasing behavior and many businesses are interested in those
factors.

Purpose of the Study

1.aaTo study factors that influence consumers’ purchasing behavior on
cosmetic products
2. aaTo study Naresuan students’ demographics in Bangkok campus

Significance of the Study

Factors influencing cosmetics products purchasing behavior.
 2

Scope of the Study:

To study the purchasing behavior of Naresuan University Students at the
Bangkok Campus in the period from March-April 2008. What influences their
purchase of cosmetic products. Through a questionnaire and analysis of data, such a
question was answered.
Independent Variables
-aaAge
-aaIncome
-aaEducation
-aaGender
-aaOccupation
Dependent Variables
-aaBrand
-aaPrice

Basic Assumption
1.aaHow brands influence the decision making
- The famous brands
- Brand loyalty
2. a How price influence the decision making
- The attractive price

Definition of Terms
This topic contains a lot of terms such as:
-aaCosmetic products means skin care products such as Body lotion/Cream,
Anti-ageing cream, Face Lotion/ Cream, Face Foam/Gel, Eye cream, moisturizer,
scrub and sun block that are sole in supermarkets.
-aaConsumers means people who study at Naresuan University area.
-aaDecision making in this study is the process of making the decision to buy
cosmetic products.
-aaWork Status refers to the kind of occupation such as officer, the owner
or student at NU.
 3

-aaAge is average from all NU students.

-aaBrand was originally developed as labels of ownership: name, term,
design, and symbol. However, today it is what they do for people that matters much
more, how they reflect and engage them, how they define their aspiration and enable
them to do more. Powerful brands can drive success in competitive and financial
markets, and indeed become the organization's most valuable assets.
-aaPrice in economics and business is the assigned numerical monetary
value of a good, service or asset. The concept of price is central to microeconomics
where it is one of the most important variables in resource allocation theory (also
called price theory). Price is also central to marketing where it is one of the four
variables in the marketing mix that business people use to develop a marketing plan.
-aaSex refers to the male and female duality of biology and reproduction.
Unlike organisms that only have the ability to reproduce asexually, many species have
the ability to produce offspring through meiosis and fertilization. Often, individuals of
the two sexes attract one another and communicate their readiness to procreate
through biological changes, or, in social species, through courtship behaviors.
An organism's sex is defined by its biological role in reproduction, not
according to its sexual or other behavior. The female sex is defined as the one which
produces the larger gamete and which typically bears the offspring. In contrast, the
male sex has a smaller gamete and rarely bears offspring. In some animals and many
plants, sex may be assigned to specific structures rather than the entire organism.
Earthworms, for example, are normally hermaphrodites.
-aaFriends is a sitcom about a group of friends in the New York City
borough of Manhattan that was originally broadcast from 1994 to 2004. It was created
by David Crane and Marta Kauffman, and produced by Kevin S. Bright, Marta
Kauffman and David Crane. The show has been broadcast in over one hundred
countries and continues to attract good ratings for its episodes in syndication. An
estimated US audience of 51.1 million watched the final episode of the show. Friends
won six Emmys and a Golden Globe followed by another 56 wins and 152
nominations.
-aaSale is a process completed by the seller, the owner of the goods. It starts
with consent (or agreement) to an acquisition, appropriation or request followed by
 4

the passing of title (property or ownership) in the item and the application and due
settlement of a price, the obligation for which arises due to the seller's requirement to
pass ownership, being a price he is happy to part with ownership of or any claim upon
the item. The purchaser, though a party to the sale does not execute the sale, only the
seller does that. To be precise the sale completes prior to the payment and gives rise to
the obligation of payment. If the seller completes the first two above stages (consent
and passing ownership) of the sale prior to settlement of the price the sale is still valid
and gives rise to an obligation to pay.

Hypotheses
1.aaThe differences in gender, age, income, occupation and education are
related to price.
2.aaThe differences in gender, age, income, occupation and education are
related to brand.

The significant level will be used to test these hypothesizes.

Independent Variables Dependent Variables

-aPrice influence on purchasing

-aaGender
behavior for cosmetic product
-aaAge
-aaIncome
-aaEducation
-aBrand influence on
-aaOccupation
purchasing behavior for
cosmetic product

Figurea1aaConceptual Framework
 5

CHAPTERAAII

LITERATURE REVIEW

In this research, we use theories in order to know “the factors influencing

purchase behavior for cosmetic products.” These theories are illustrative of the topics
as follows:
1.aaThe meaning and general character of cosmetic product.
2.aaCosmetic market in Thailand.
3.aaMain Products in the market.
4.aaMarketing Mix.
5.aaResearches

The Meaning and General Characteristics of Cosmetic Products

In terms of law, cosmetic means something that is used for scrubbing,
massaging or adding on any part of the body in order to clean, to keep up the skin, and
make the skin beautiful. Cosmetic products are face cream, eye cream, body lotion,
sun block, toner, mascara, powder, lipstick etc. Cosmetic products include cologne and
perfume. It is conclude that cosmetic products are used only on external skin or body.
General cosmetic products do not have specific chemical substances.
The cosmetic product companies that produce domestically can produce by
themselves and don’t have to inform the food and drug organization. Somehow those
products they produce must have the labels in Thai. The details must be clear. (The
contents in the label must be accurate and have the reference).
(Edward Sagarin, n.d., 4) said that
-aaArticles intended to be rubbed, poured, sprinkled or sprayed on,
introduced into, or otherwise applied to the human body or any part thereof for
cleansing, beautifying promoting attractiveness, or altering the appearance.
-aaArticles intended for use as a component of such any article, except that
the term shall not include soap.
 6

The standard paper industrial product (Industrial Standard 152 - 2518) gave the
meaning of cosmetic products: the products that are used with skin or any part of the
human’s body by anointing, scrubbing, spraying, puffing, fading. Examples are
cleansing, beauty and make up products.
The pharmacy newspaper (15, May- June, B.E. 2505) gave the meaning of
cosmetic product: Every product that is intended directly to the person for cleansing or
beautifying under the control of the law food, drug and cosmetics.
(The Cosmetic Acts B.E. 2517) said that cosmetic products are:
-aaThe materials used to anoint, scrub, spray, drop, perfume etc. to any part
of the body for cleansing, beautifying.
-aaThe materials that are the parts of a composition to produce cosmetic
products or
-aaThe materials that are set to the cosmetic product by the law.
The characteristics of cosmetic products
The production of cosmetic products is similar with the production of drugs
but cosmetic products have 3 main factors
1.aaCosmetic products have good smell.
2.aaCosmetic products are graceful and have good packaging also.
3.aaCosmetic products are easy to use.
The benefit of cosmetic products
1.aaMake up the skin; cleaning and rising.
2.aaSanitation for mouth, teeth, etc.
3.aaIt can close spots and dark in the skin.
4.aaNaturalise the hair or set the hair according to style.
5.aaMake the skin free, destroy the appellation.
 7

Types of cosmetic products

The Thai Cosmetic Act (B.E. 2535) defines the cosmetic products to 3 types
as follows:
1.aaThe special controlled cosmetic products which have the high effect and
high risk; thus the regulators pay more attention to them than other cosmetic products.
These cosmetic products must have registration. These cosmetic products can only be
sold after getting the licenses. The following are examples of special controlled
cosmetic products such as the toothpaste that have fluoride, hair permanent product,
hair coloring product, hair prolonging product, depilatories.
2.aaThe controlled cosmetic products, have some effect and risk but less than
the special controlled cosmetic products. The producers of these cosmetic products
have to inform the food and drug organization 15 days before production or import
into the kingdom.
The controlled cosmetic products have 2 characteristics as follows:
-aaCosmetic products that are controlled such as sanitation towel, cool towel,
body powder and shower powder.
-aaSubstance that is controlled by the Department of Public Health namely:
Sun-block which has 19 categories of substance such as Oxybenzone,
Atesilparamate, Toxysonnamat.
Anti-dandruff which has categories of controlled substances, namely Zinc
Pyrithione, Piroctone Olamine and Climbazone.
3.aaThe general cosmetic products, don’t have controlled substances or
special controlled substances. Producers of these cosmetic products, however, follow
procedure when producing and importing namely:
1.aaWhen producing domestically, these cosmetic products must have the
Thai label with the complete contents and correct reference to the law enforcement.
2.aaWhen importing, these cosmetic products must have the import approval
license and set the Thai label with the complete contents and correct reference to the
law enforcement within 30 days after the approval for import.
The following are examples of general cosmetic products: shampoo without
anti-dandruff substance, hair conditioner, bar of soap, shower cream, oil body,
 8

cleansing foam, foundation preparations, eye shadow, blush-on, lipstick without the
sun-blocked substance, antiperspirants and deodorants.

Cosmetic Market in Thailand

Cosmetic Products Market Thailand 2001-2003 Market Overview
The cosmetics market in Thailand was highly competitive for both high-end,
internationally well-known brands and medium to low-end local brands. Make-up
products were 65 percent of total cosmetics imports in 2003, and Thailand imported 90
percent of its total perfume market. Thailand was still a major producer and exporter
of shampoo products, which accounted for forty percent of the total export value of
cosmetic products in 2003. Thailand’s exports of cosmetic products increased by 72
percent in 2003 compared to a year before. The cosmetics market was expected to
grow an average of 18 percent in 2004, due mainly to Thailand's positive economic
situation. It expected positive GDP growth. There was ample room for growth in high-
end make-up products, skin care lotions for special treatment (face and eyelids), and
medium and high-end perfumes. Make-up, skin care, and perfume products generally
had an import duty rate of 40 percent, while hair care products generally had a 20
percent import duty. The product registration and import authorization were required
by the Thai Food and Drug Administration of the Ministry of Public Health prior to
the actual shipment of the cosmetic products.
 9

Tablea1aaMarket Share by Sub-sector:

2001 2002 2003 Growth Share

Mil. US$ Mil. US$ Mil. US$ (Over 2002) % (2003) %
Hair Care 191 241 265 10 38
Make Up 184 230 253 10 37
Skin Care 111 136 155 14 22
Perfume 15 14 22 58 3
Total 501 621 695 12 100

“Source” (Industrial Estimate, 2004)

Tablea2aaCosmetic Import Export statistic

2001 2002 2003 Ave. Growth

Mil. US$ Mil. US$ Mil. US$ (01-03) %
Total Imports* 100 90 167 38
Total Local Production 633 744 895 19
Total Exports* 230 214 367 32
Total Market Size 503 620 695 18
Total Imports from U.S.* 24 22 43 43

“Source” (Customs Department, Ministry of Finance, 2004)

Imported cosmetic products accounted for approximately 24 percent of the

total market. Major countries of origin included Belgium, France, Germany, Japan, the
United Kingdom, Italy, China and the United States. Brand name products produced
under license from internationally well-known brands account for 70 percent of local
production, while local brands accounted for 10 percent of the total market.
As of 2003, there were 800 manufacturers of cosmetic products listed with
the Industrial Works Department of the Thai Ministry of Industry. Approximately 70
percent of them are clustered in the Bangkok metropolitan area.
 10

Hair Care Products

The hair care product market can be divided into four major sectors: normal
shampoo (60%), hair conditioning shampoo (28%), medicated shampoo (9%), and
light shampoo (3%). Most of the hair care products are locally produced by three
major manufacturers:
-aaUni Lever Thai Holding Co., Ltd. commands approximately a 40% share.
Leading brands include; Sunsilk, Clinic, Dove.
-aaProcter & Gamble Manufacturing commands approximately a 25%.
Leading brands are Clairol, Pantene, Head & Shoulders, and Rejoice.
-aaKao Commercial commands a 15% share. Leading brands are La Venus,
Feather, Shokubutsu
-aaOthers (20%) including: L'Oreal, Johnson & Johnson, Kodomo,
Dermapond.
Competition in the hair care sector is always intense and very dynamic, as the
three leading manufacturers and distributors are major international corporations with
ample funding for their marketing plans and efforts. The hair care product life cycle is
relatively short in Thailand as new products are frequently introduced into the market
in the hope of capturing more or retaining the current share of the market. Launching a
new hair care formula using well-known celebrities as models is a typical tactic for
retaining and/or improving the market share. Heavy advertising of hair care products
on prime time television and radio stations is common in Thailand.
Make-Up Products
Make-up products comprise lipsticks, nail polishes, face powders, and eye
shadows. In 2003, imported make-up products accounted for approximately 14 percent
of the total make-up products in Thailand, 11 percent lower than 2002 with local
products accounting for the remaining 86 percent. Imported lipsticks commanded
approximately 38 percent of the total imported make-up products, face powder had 31
percent, eye shadow had 27 percent, and manicure products had 4 percent.
-aaMajor leading imported make-up brands include; Estee Lauder, Clinique,
Shiseido, Lancome, Louis Vuitton, Mary Kay, Maybelline.
-aaMajor local make-up products include; Pias, ZA, Oriental Princess, Cute
Press, Miss Teen, Bense.
 11

Skin Care Products

The skin care product market can be divided into two sectors: face lotion
(40%), and body lotion (60%). Thais prefer skin care products in liquid form (lotion)
compared to cream. Seventy percent of the market likes the lotion form, while 30
percent likes the products in cream form. The main reason behind this is probably the
price difference between the two forms. A liquid lotion skin care solution with low
efficacy/concentration level is priced lower than the higher concentration skin care
product in cream form.
Whitening skin care lotion has been very popular in Thailand for the past few
years. In 2003, it commanded 60 percent of the total skin care product market. The
leading brand in this sub-sector includes Nivea, Ponds, and Oil of Olay. Skin repair
lotion and cream commanded approximately 20 percent (Estee Lauder, Clinique,
Lancome, Eucedrin, Oil of Olay); facial oil reduction lotion and cream commanded 5
percent (Johnson & Johnson, Ponds, Oil of Olay), and general skin care and
moisturizer commanded 15 percent (Johnson & Johnson, Baby Mild, Nivea, Ponds,
Vaseline, Citra, Care).
Perfume
Thailand imported US$21 million worth of perfume products in 2003,
representing an increase of 68 percent from 2002. France led the market with a 63
percent share of imported products, worth approximately US$13 million. Perfume
products from the U.S. came second with a 15 percent (US$3 million) share, followed
by the United Kingdom, Italy, Switzerland, Belgium, Germany and China.
Most good quality, high price perfume products are marketed through over
the counter sales in major shopping malls and department stores, mainly in Bangkok
and Chiang Mai. Some direct sale companies also market perfume products, but most
of them are medium and low-end. Most major international and well-known brands of
perfume are represented here in Thailand, including: Estee Lauder, Lancome, Polo,
Givenchy, Shisheido, Christian Dior, Nina Ricci, Ralph Lauren, Noir, etc.
Import Regulations and Import Duties
Importation of cosmetic products is controlled by the Thai Food and Drug
Administration of the Ministry of Public Health. A product registration is required
prior to the actual importation and marketing of the cosmetic products. The
 12

registration process is not complicated, but may take one to two months’ time. The
basic documents required by the Thai FDA include a notarized Certificate of Free Sale
or a Certificate of Manufacture issued by the manufacturer in the manufacturing
country (e.g. United States) and notarized by a notary public. A full
ingredient/composition listing issued by the manufacturer and notarized by a notary
public is also required. Both documents have to be legalized either by the Thai
Consulate in (e.g. Washington, DC or the American Embassy in Bangkok, Thailand).

Table 3aaImport Duty

HS Code No. Descriptions Duty Rate (%)

3303 Perfume 40
3304 Make Up Products & Lotion 40
3305 Hair Care Products 20
3307 Shaving Products and Deodorant 20

Best Prospect
Best prospects for cosmetic products from the U.S. include:
-aaanti-aging facial treatment
-aawrinkle free eye treatment
-aawhitening facial treatment
-aawhitening body lotion
-aahigh-end body cream and lotion
-aahigh-end make-up and skin care
-aamedicated shampoo
-a medium and high-end perfume
-aabody spray
Distribution Channel
Cosmetic products in Thailand are distributed through three major channels:
Direct sales (60 percent) - has been very popular for a number of years and is expected
to continue being a major marketing channel for cosmetic products in Thailand for
many years to come. Direct selling is the most effective way of introducing new
 13

medium and low-end cosmetic products to the market. In a direct sales sector, price is
more sensitive than product quality. Some international direct-sale companies that
operate in Thailand include: Amway, Avon, Herbal Life, Nu Skin, Nu Life, Nature's
Best, NutriMetic.
Counter sales (30 percent) - a standard venue for marketing high quality/high
price and internationally well-known brands of cosmetic products. There are 108
department store locations concentrated in major cities including Bangkok,
Chiangmai, Cholburi, Nakornratchasima, and Songkhla. Major department stores
include: Central Department Stores (14 stores), The Mall Department Stores (7 stores),
Robinson Department Store (18 stores), Emporium (1 store), Imperial Department
Stores (3 stores), Isetan (1 store), ZEN (1 store), Tang Hua Seng (1 store).
Hanging sales (10 percent) - directed toward young buyers and the mass
market for medium and low-end cosmetic products. Major players in this sector
include: Boots, Watson, Red Earth, TOPs Supermarket, Big C, Carrefour, Lotus.
Major brands of cosmetic include: Mary Kay, Maybelene.
To the best of our knowledge, the information contained in this report is
accurate as of the date published. However, the Department of Commerce does not
take responsibility for actions readers may take based on the information contained
herein. Readers should always conduct their own due diligence before entering into
business ventures or other commercial arrangements. The Department of Commerce
can assist companies in these endeavors.
 14

Table 4 Cosmetic Products Market in Thailand 2004-2006

2006
Overview 2004 2005
(Estimated)
Total Market Size 834 908 1,078
Total Local Production 1,075 1,300 1,560
Total Exports* 437 620 743
Total Imports* 196 228 261
Imports from the U.S. 51 50 57

“Source” *The Thai Customs Department, Ministry of Finance, 2006

“Note” The exchange rate was $1/THB36

The overall growth rate of the cosmetic products market in Thailand in 2006
was expected to be at 12 percent, 3 percent more than the year before. The increasing
growth was considered to be significant considering the continuing economic
slowdown and the prolonged unstable political situation in Thailand. High quality,
international branded cosmetic products were expected to do better and might have a
growth rate between 15-20 percent due mainly to good brand image, brand loyalty and
perception of good quality. Products from the United States were highly regarded and
lead the imported market. Competition from France, Japan, the United Kingdom and
Germany got stronger. Perfume from France remained the market leader in Thailand
followed by perfume from the US. Hair care and make up products maintained a
single digit growth (at 5 and 7 percent respectively), while skin care and perfume
showed better growth at 17 and 15 percent respectively. Products such as anti-wrinkle
cream, anti-aging facial cream, and whitening facial and body lotion had good growth
potential. They were classified as problem-solving cosmetic products that suited
customers’ needs. More cosmetic products especially designed for men were
becoming popular. Thailand remained a strong manufacturer and exporter of
shampoos and other hair care products, color cosmetic and skin care products. Direct
sales were the preferred distribution channel and accounted for 60 percent of the total
market.
 15

Competition among the cosmetic suppliers and distributors was always fierce
and strong. The prevailing economic slowdown made the competition more severe,
especially among medium to low quality body care, skin care and hair care products.
The suppliers of these products always introduced new strategies not only to retain
their existing customers but also to capture greater share and enlarge their customer
base. All leading cosmetic companies invested heavily in promotional campaigns to
keep their market share and to stimulate the market. High-end international brand
cosmetic products used women’s magazines as their major advertising means to reach
their potential buyers. Premiums and point-of-sale promotional campaigns were also
used regularly to stimulate sales. Counter sales at major department stores were their
main sales channel. The counter sales accounted for approximately 30 percent of the
total cosmetic sales in Thailand. For low to medium quality cosmetic products, TV
was the main venue used for advertising campaigns. Sampling and giveaway were the
two leading promotional strategies utilized to introduce new products and to stimulate
the sales of existing products. Uniliver and Procter & Gamble were the leading
advertising spenders in Thailand. Direct selling, discount stores, drug stores and
convenience stores were the major channels of distribution for medium and low
quality cosmetic products.
More than half of the imported cosmetic products were high-end facial cream,
mostly anti-aging, and body and skin care products. The products from the U.S.
dominated this sub-sector with approximately 32 percent share. Leading brands
included: Estee Lauder, Clinique, Shisheido, Christian Dior and Lancome. Imported
perfume still supplied 90 percent of the total demand of perfume products in Thailand.
Perfume from France dominated the market with approximately 56 percent share in
2005. The perfume products from the U.S. came second and had about 17 percent
share of the market.
The overall growth potential for the cosmetic products during the next three
years (2006-2008) was optimistically expected to grow between 15-20 percent. With a
total potential customers base of 18 million of (women between the age of 15 to 50
years old), mostly professionals, Thailand’s market for cosmetic products had a very
strong group of potential buyers. Political stability after the general election in early
 16

2008 should enhance the consumers’ confidence. Consumer spending was expected to
grow positively after a new elected government was formed.
Make-up, skin care, and perfume products generally had an import duty rate
of 30 percent, while hair care products generally had 20 percent import duty. A
product registration and import authorization were required by the Thai Food and
Drug Administration in the Ministry of Public Health prior to the actual shipment of
the cosmetic products.
Import Regulations and Import Duties
Importation of cosmetic products is controlled by the Thai Food and Drug
Administration of the Ministry of Public Health. A product registration is required
prior to the actual importation and marketing of the cosmetic products. The
registration process is not complicated, but may take one to two months’ time. The
basic documents required by the Thai FDA include a notarized Certificate of Free Sale
or a Certificate of Manufacture issued by the manufacturer in the manufacturing
country (e.g. United States) and notarized by a notary public (e.g. in the U.S.). A full
ingredient/composition listing issued by the manufacturer and notarized by a notary
public is also required. Both documents have to be legalized either by the Thai
Consulate (e.g. in Washington, DC or the American Embassy in Bangkok, Thailand).

Tablea5aaImport Duty Contact information at the Thai Food and Drug

Administration office

HS Code No. Descriptions Duty Rate (%)

3303 Perfume 30
3304 Make Up Products & Lotion 30
3305 Hair Care Products 20
3307 Shaving Products and Deodorant 20

“Source” http://www.buyusa.gov/asianow/thcosmetic.html
 17

Main Products in the Market

Ponds
Ponds is under the Unilever Thailand Holding company. The marketing
slogan of this company is “Add Vitality to Life.” This company opened the new
product with confidence. With the support of Consumer Insight, the company
understood the consumer and the movement in the market. The mission of this
company is high quality product with low price. .
Unilever focuses the new product on target groups such as teenagers or
women 30 years old and above. Specific products are for each target group and are
usually well accepted by them. Examples of these products are ponds wrinkle free
cream for the people that are 30 years old and above, or powder for people who are 18
years and above.
Olay
In 2005 The P & G (Thailand) company focused on Olay Total Effect Plus
and made the product settle in the market. The company also had plan to provide new
products for the customers’ needs.
Because of the economic crisis it was better to empower people to purchase
the high quality product. The consumers were looking for a product that was good for
wrinkle free skin care and protection. This was an opportunity for P and G to make use
of there expertise in technology.
P &G continued to support Olay Total Effect Plus by retaining the existing
customers and expanding this product to new customers.
Nivea
In 2005, Nivea developed the product efficiency to include more than its,
wrinkle free protection capabilities. This product’s market growth was 30 percent per
year. Nivea is the leading producer of this product.
In 2006 Nivea expanded the customers of whitening cream group. The over
view of cream market was 3,500 million baht and the whitening shared 1,800 million
baht.
 18

Smooth E
The Siam health company group has Smooth E gold product and the bath
washing product called “White and slim body lotion.” It also has the sun block cream
with SRF that is a new innovation in Thailand.
Garnier
The L’Oreal company has focused on the Garnier marketing on face
treatment product and made Garnier to be the mass brand, monitored by a wide target
market (ages 18-30 years). The 3 main products are Pure group for the consumers 15-
20 years old, Light group for the consumers 18-30 years old and Lift group for the
consumers 25 years old up.
Garnier promotes itself by advertising and PR. It does events to make the
consumers remember the brand. Moreover Garnier is the brand in L’oreal group that
has a product developing center. This provides advantage for Garnier.
Garnier also has the mask product. It is promoted with reasonable price in
supermarkets, Hi-per markets and convenient stores to cover the target group such as
teenagers, office people both men and women.
L’Oreal
L’Oreal Co., Ltd is the first of the world of cosmetic industry and has
branches in more than 150 countries. L’Oreal Co., Ltd has many successful brands
such as L’Oreal Paris, Maybelline New York, Garnier, Lancome, Biotherm, Shu
Umera, etc.
In this year it faced some challenge, but L’Oreal (Thailand) still enjoyed a
growth of 12% in the first half of this first year. L’Oreal believe, that the professional
standard, research and quality products, are the factors that make it quickly grow up
continuously.
Shisiedo
Shiseido holds the largest share of the Japanese cosmetics market and its
business operations may be divided into two areas. The first, concentration is on the
counseling-oriented customer and the other is on customers who are mainly self-
selection-oriented.
For the counseling-oriented customer, membership in the Camellia Club
assures recording of customer purchases, enabling the beauty consultant to provide
 19

better personalized advice. Members can receive information on beauty, fashion, and
new products from the "Hanatsubaki" magazine, a cultural magazine with a circulation
of 200,000, distributed to Camellia Club members.
Shiseido communication with customers is not limited to the Shiseido
cosmetics brand. Currently, Shiseido also develops IPSA, D'ICI LA, ETTUSAIS, and
AYURA, brands, formulated with different marketing concepts from the Shiseido
brand.

Tablea6aaThe Main Organizations that Produce Face Treatment Products in The

Middle Level

Brand Company
PONDS Unilever (Thailand)
Olay P and G
Nivea Beiersdorf (Thailand)
C Care C Care International
L’Oreal L’Oreal (Thailand)
Clinique Elca (Thailand)
Eucerine Beiersdorf (Thailand)
PIAS I.C.C. International

“Source” (Marketing Info and Communication Co., Ltd, 2003)

Tablea7aaThe Worth of Face Treatment Product in Middle Level

Year Worth (Million)

1999 2,100
2000 2,400
2001 2,400
2002 2,500
2003 3,600
 20

Tablea7aa(cont.)

Year Worth (Million)

2004 4,000
2005 4,260

“Source” P and G (Thailand)

Tablea8aaMarket Share for Face Treatment Product in 2003

Type of cosmetic product Market Share (%)

Whitening product 58
Anti-age product 21
Other 21

“Source” (P and G (Thailand), 2003)

Tablea9aaMarket Share for Face Treatment Product in 2004

Type of cosmetic product Market Share(%)

Whitening product 58
Anti-age product 22
Other 20

“Source” (P and G (Thailand), 2004)

 21

Tablea10aaMarket Share for Face Treatment Product in 2005

Type of cosmetic product Market Share(%)

Whitening product 60
Anti-age product 30
Other 10

“Source” aa(P and G (Thailand), 2005)

Tablea11aaMarket Share for Face Treatment Product of Each Brand in 2005

Brand Market Share (%)

Olay 34
Ponds 28
L’Oreal 10
Nevea 8
Other 20

“Source” (P and G (Thailand), 2005)

Tablea12aaMarket Share for Anti-age Product of Each Brand in 2005

Brand Market Share (%)

Olay 40
Nevea 25
Other 35

“Source” (Beiersdorf (Thailand), P and G (Thailand), 2005)

 22

Tablea13aaMarket Share for Whitening Product of Each Brand in 2005

Brand Market Share

Ponds 21
Olay 19
Garnier 12
Other 5

“Source” (Beiersdorf (Thailand), P and G (Thailand), 2005)

Tablea14aaMarket Growth of Cosmetic Product in High Level 1998-2004

%Growth %Growth %Growth %Growth %Growth

Ranking Brand
1999-2000 2000-2001 2001-2002 2002-2003 20003-2004
1 Shiseido 10.47 10.51 7.37 16.66 9.86
Estee
2 8.03 8.54 14.01 12.46 7.13
Lauder
3 Lancome 22.25 25.02 22.87 14.23 9.34
4 Clinique 16.15 19.83 19.31 14.57 4.12
5 Dior 16.95 26.39 29.15 26.73 23.45
6 La Mer 74.08 41.83 34-19 33.28
7 Clarins 14.29 7.83 19.30 21.85 8.40
8 Biotherm 37.40 24.69 66.57 41.14 14.17
9 SK II 248.27
10 Mac 30.36 29.34 16.68 10.62 26.83
11 Sisley 167.52 67.39 43.36 21.91
Bobbi
12 20.63 8.97 14.87 21.93 34.41
Brown
13 Origins 105.12 45.33 21.81 20.91
14 Kanebo 17.99 33.68 32.05 21.81 20.91
15 Chanel 7.55 24.84 7.54 7.49 9.62

“Source” (LVMH Perfumes and Cosmetics (Thailand): Sorted by sales ranking,

2004)
 23

Tablea15aaCategory Mix Top 20 High Level Brand 2004

Total of counters Skincare Make Up Fragrance

No. Brand
in 2004 (%) (%) (%)
1 Shiseido 45 70 29 1
2 Estee Lauder 33 60 30 10
3 Lancome 33 55 23 22
4 Clinique 33 70 25 5
5 Christian Dior 31 42 36 22
6 La Mer 5 100 X X
7 Clarins 31 75 25 X
8 Biotherm 18 85 15 X
9 SK II 7 85 15 X
10 Mac 7 10 90 X
11 Sisley 14 90 10 X
12 Bobbi Brown 6 10 90 X
13 Kanebo 32 70 28 2
14 Chanel 14 22 50 28
15 Shu Umera 7 5 95 X
16 Kose 31 70 25 5
17 La Prarie 12 95 5 X
18 Cla de Peau 4 90 10 X
19 Guerlain 11 60 35 5
Elizabeth
20 21 60 30 10
Arden

“Source” (LVMH Perfumes and Cosmetics (Thailand), 2004)

 24

Marketing Mix
Product
The procedure of product is very important in the cosmetic market. Every
brand in the market tries as much as possible to stimulate the consumer’s purchase of
the product.
1.aaPond’s
Pond’s is a global face care expert that has a presence in over 50 countries
including Asia (Philippines, Thailand, Indonesia, China, Vietnam, and Korea), Japan
and the US - making it a skin care brand to reckon with. The brand boasts of state-of-
the-art R&D facilities led by Ponds Institutes at New York, Tokyo and Madrid,
helping it create international beauty solutions for the discerning woman. The Pond's
philosophy is based on the application of leading-edge technology to face care, and
giving customized solutions for different skin care needs. By combining this with an
intimate understanding of the woman's skin care needs and requirements, Pond’s
delivers results women can see and feel.
Pond’s products have been in the Thai market since 1968. Thailand started
importing “Pond’s Gold and Pond’s Vanishing Cream.” These products have been
accepted by customers and still exist in the market. Moreover Pond’s always develops
the new innovation for the need of Thai consumers by the support of “Pond’s Research
Centre”
Pond’s’ understanding of the Thai people’s attitude towards skin care,
prompted its production of a whitening cream. Pond’s then is the first company that
pioneered whitening cream in 1995.
At the moment, Pond’s has varieties of products such as cleansing product,
treatment product for different ages, Anti-age product, make-up product etc.
Pond’s has launched 2 new products: Pond’s age miracle and Pond’s flawless
white.
Pond’s developed Pond’s age miracle as a new innovation of anti wrinkle
product especially for Asian women. This product treats the skin, clears up the
wrinkle, makes the skin fresh. The user will feel that the skin is better within 7 days.
Pond’s age miracle is an innovation that anti the wrinkle like a miracle and
Pond’s age miracle was researched and developed by “Pond’s Research Center
 25

U.S.A.”. It has “C.L.A.(Conjugated Linoieic Acid), the natural substance that can
destroy wrinkle, dark spot and treat the skin at the same time.
Pond’s Flawless White is an innovation for whitening product and has the
VAO-B3 complex, the worldwide technology especially for Asian women. It bakes
the skin bright and white within 7 days.
2.aaOlay
P&G Thailand jump-started its 2008 business agenda with the latest
campaign launch dubbed “Love your Skin, Say Olay” at Siam Discovery Centre. It
offers an enticing all-in-one package deal of two product lines: Olay Total Effects and
Olay White Radiance to consumers. The product trial will also be offered to
consumers so that they can get a glimpse of the Olay perfect skin experience ideal to
women throughout the nation.
Corporate & Marketing Communications Manager for Procter & Gamble
Trading (Thailand) Ltd., talked to the media and stressed Olay’s mission to offer a
product of high caliber that will ensure the perfect skin experience for every woman.
Olay skincare is the successful culmination of extensive research studies and
innovative technology that guarantees the radiant and natural, young-looking
complexion, giving women a daily dose of skin rejuvenation. Olay propagates the faith
in the unique beauty in every woman and aims to establish their confidence after using
Olay. Olay allows them to savor the benefits of the product which is the very virtue
that enables Olay to be no.1 choice for skin care products. Olay believes that the best
experience is the experience of having the perfect skin. Therefore, Olay is determined
to create the skin care product that addresses the needs of consumers in all dimensions.
“The campaign ‘Love your Skin, Say Olay’ is Olay’s marketing strategy to
tap into the skin care segment yet again. This is the first time ever that Olay has
brought together 2 skin care product lines including Olay Total Effects from the anti-
ageing product range and Olay Total White Radiance from the skin whitening product
range. The consumers can see the diversity of Olay products that cater to their needs.
Olay products are for everyone looking for the ideal perfect skin. Olay will provide the
experience of a fair, radiant, natural and young looking complexion that makes them
feel like being pampered every day in their home. Consumers then will fall deeper in
love with Olay. This year, 2 Olay product ranges will be produced. These new
 26

products are of distinct quality, the latest skincare technology innovation. Such a
technology will enhance the product performance and also will accommodate the ever-
changing demand and lifestyle of consumers”.
In the beginning of this year, Olay Total Effects launched its latest product
that fits present busy lifestyle of the consumers who have very little time to take care
of their skin but yet need very special care. Olay Total Effects Anti-Ageing Facial
Stretch Mask helps reduce the fine lines with the latest innovation of Stretch
Technology, uniquely developed for Olay. Certified by dermatology experts from
APCSA (Asia-Pacific Center for Skin Ageing), the product envelops facial contours to
deliver 7 anti-ageing treatment benefits deep into the surface layers of the skin, leaving
the skin radiant and young-looking. APCSA has conducted research on the ingredients
that contribute to the anti-ageing treatment and found that ‘Niacinamide’ in Olay Total
Effects has the very skincare benefit in helping reduce fine lines.
To increase market share in the skin whitening segment, Olay sends 2 more
new products to the battlefield in February namely Olay White Radiance UV Blocker
and Olay White Radiance Eye Brightening Serum. The 2 products help fight 5 sign of
skin darkening problems such as blotches, uneven skin tone, damage from sun
exposure and blemishes thanks to the concentration of vitamins for skin whitening 10
times higher.
The newly-launched products of each range, developed especially for Asian
women’s skin emphasizes the reason of Olay to address every specific need of the
perfect skin experience ideal to women around the world. Offering various
alternatives to the skin perfection, Olay is ambitious to give the skin experience that
will make the consumers say Olay is the best way of expression when it comes to
giving love and care to the skin. With the 360 degree marketing integration that
combines above-the-line and below-the-line activities side-by-side with marketing
events and PR promotional campaigns, as well as the utilization of mass media i.e.
TV, newspapers and other new media sources, Olay aims to create the brand
experience or the ‘product trial experience’ through consumer events, allowing them
to put Olay to test and develop a sense of brand loyalty in the long run. Such strategy
will help P&G sustain its leadership in the skin care market.
 27

3.aaSmooth E
Smooth E called themselves as the leading producer of Cosmeceutical s for
anti-age and Scar care product. From the Info Search it is gathered that the consumers
have accepted this product. In 2005
At present Smoot E is the best seller of anti-age and scar care cream in the
Pharmacy shop (Abac Poll) and accepted by doctors, pharmacists and Medical
Science.
From the research of Info Search Company, 97% of the people who use
Smooth E are impressed with this product and 40% of the users have the advice from
other people. So, Smooth E is really the expert of Anti-age and scar care cream.
In the campaign “Smooth E Skin Expert” adds efficiency to Smooth E cream
by adding Centella Essence: CAE, Vitamin E 50 % and Allium Cepa. The resulting
product helps destroy wrinkle, scar and treat the skin at the same time.
Smooth E has the new campaign “Smooth E Skin Expert” and open the new
product “Smooth E Therapeuic Body Lotion.” This expanded the product to include
the body lotion market.
4.aaNivea
Beiersdorf (Thailand) leads in cosmetic treatment under brand Nivea. Nivea
has varieties of product to targeted at specific markets as follows:
Nivea Men, is for men, because men face matters in day life and night life.
This product will protect men’s skin from oxidant, wrinkle, dark spot. It also acts as an
anti – aging application.
Nivea Body Total UV Milk Repair, is for very dry skin. It helps as an anti
oxidant. It’s the new lotion with SPF for dry skin.
The latest, Nivea product is Nivea sun whitening for immediate sun
protection SPF50 5 in 1. This product is a sun block used for face and body. Its
advantage from other sun block cream is that the user does not have to wait until 20
minutes to be able to go outdoors. After using this product, the user can face the
sunrise immediately.
 28

5.aaShiseido
Shiseido not only produces treatment products for women but also for men.
An example is called “Shiseido Man.” Shiseido has a variety of products that serve
men problems.
The main ingredient in Shiseido Man is “Damage Defense Complex” that
treats deep in the cell, and treats the skin. It is anti –wrinkle; solves the dry skin and
oily skin.
Shiseido Man has the following variety of products:
-aaCleansing foam used for cleaning up the face; make up the skin fresh.
-aaToning Lotion used after cleaning the face; the cool toner reduces the oily
face.
-aaHydrating Lotion makes the face fresh and reduces the dry skin problem.
-aaMoisturizing Emulsion treats the skin, reduces the wrinkles on the face
and makes the face bright.
6.aaL’Oreal Paris
L’Oreal Paris has the latest innovation for the women 40 years old and up.
L’Oreal Revita lift is a double lifting application that helps prevent wrinkles and
makes the skin lighter at the same time. L’Oreal Revita Lift (day cream) is anti-
wrinkle and makes the face skin firm. This product has SPF18 composition.
Moreover, L’Oreal Paris has the men product called “L’Oreal Men Expert.”
Its variety are L’Oreal Paris Men Expert Vita Lift for men 40 years old and up. This
product is skin anti-sagging and anti-wrinkle. L’Oreal Men Expert Energetic, is anti-
dullness and makes the face feel fresh.
Price
The pricing policy has been chosen to ensure long-term sustainability of the
initiative, to meet the priorities decided by the community in offering affordable
(possibly not-for profit) services to local people (probably members)."
 29

Tablea16aaThe Cosmetic Products Price in The Market (sample).

Name of product Price (Baht)

Ponds
Pond’s age miracle 50 ml, day cream 399
Pond’s age miracle 50 ml, night cream 449
Pond’s flawless white 50 ml, day cream 259
Pond’s flawless white 50 ml, day cream 299
Pond’s white beauty detox 50ml 285
Olay
Anti-aging night cream 399
White Radiance 100 g. 499
Total white 80 g. 269
Olay total effect 50ml. 399
Nivea
Nivea visage white extra repair 50 ml. 159
Nivea anti-ageing Q10 plus 50 g 399
Neutrogena
Fine Fairness Essence Day Cream 30g. 500
Fine Fairness Essence Night Cream 50g. 399
L’Oreal
L’Oreal white perfect day cream 50 ml. 309
L’Oreal white perfect Day Cream 30 ml 416
L’Oreal revitalift white 30 ml. 399
L’Oreal revitalift Double Lifting 30 ml 550
L’Oreal Revitalift Eye Cream 15 ml 430
Smooth E
Smooth E cream 100 g 459
Smooth E Gold 65 g 535
Smooth E white Baby face Serum 24 g 495
Smooth E white Baby face Serum 12 g 295
 30

Tablea16aa(cont.)

Name of product Price (Baht)

Garnier
GN. Age lift Pro-X White serum 30 ml. 399
GN. Age lift Day Cream 50 ml 314
GN. Age lift Night Cream 50 ml 323
GN. Light SPF 30 Cream 269
GN. Light Eye Contour light 15 ml 299
Shiseido
White Lucent Set
-White Lucent Brightening Cleansing
Foam 75 ml.
- White Lucent Brightening Refining 2,100
Softener 100 ml.
- white Lucent Moisturizing 30 ml.
Shiseido man cleansing foam 980
Shiseido man toning lotion 1,300
Shiseido man hydrating lotion 1,300
Shiseido man moisturizing emulsion 1,500

“Source” (Watson Shop Century Branch, 2008), www.shiseido.co.th

 31

Tablea17aaMen Cosmetic Product

Name of products Price (Baht)

Origins Save the Males 1,650
Clarins Men Moisture Balm 1,950
Dermalogical Intensive Moisture Balance 2,200
Biotherm Homme Anti-Rides Line Peel 2,400
Lancome Men Hydrix Micro-Nutrient
1,800
Moisturising Balm
Zirth Clay Mask 800
Lab Series Instant 1,400
Clinique Maximum Hydrator for Men 1,600
Biotherm Homme Abdoscuipt Body
2,400
Firming Gel

“Source” (Men’s Health Magazine, January 2008)

Place
Place simply refers to how you will sell your products to your customers.
What you are selling will directly influence how you distribute it, and it affects mainly
those businesses that are in production. For example, if you own a small retail outlet
or offer a service to your local community then you are at the end of the distribution
chain. You will be directly supplying a variety of products directly to the customer.
For cosmetic products, we can find the varieties in many places such as
department store, convenience store, hyper market and internet.
Department Store: We can find the cosmetic products in there own
departments. There are many brands of cosmetic products such as Shiseido, Lancome,
Clinique, Clarins, SKII etc. in the leading department stores like Central Pattana group
branches, The Mall group branches, Central World Plaza and The Emporium,
Robinson Department Store etc..
Convenience Stores: The convenience stores are usually open 24 hours
covering many areas with many branches. These are comfortable to the consumers.
 32

Examples are 7-eleven, Family Mart, and some that are located in department stores
such as Watsons, Boots. Most of the cosmetic products are in the middle level such as
Olay, Pond’s, Nevea, L’Oreal Paris, Garnier etc.
Hyper Market: Most of the cosmetic products available in the hyper market
are in the middle level such as Pond’s, Olay, Nevea, L’Oreal, Smooth E etc. This is
because in the hyper market, most buyers purchase other things such as houseware,
food, snacks etc. The leading hyper markets are Big C, Tesco Lotus and Carrefour.
Internet: Now the internet influences the people to buy cosmetic products.
Some people prefer to purchase the cosmetic products through the internet because it’s
more comfortable and sometimes they can get the discount product, cheaper than the
product in the department store or hyper market. Most products are branded such as
SKII, Lancome, Shiseido etc. The following are samples of websites that sell
cosmetic product online:
www.beautyintrend.com
www.mono2u.com
www.marketathome.com
www.healthbuddyshop.com
www.weloveshopping.com
Promotion
This is an activity designed to boost the sales of a product or service. It may
include an advertising campaign, increased PR activity, a free-sample campaign,
offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting
up competitions with attractive prizes, temporary price reductions, door-to-door
calling, telemarketing, and personal letters and other methods
More than any other element of the promotional mix, sales promotion is
about “action”. It is about stimulating customers to buy a product. It is not designed to
be informative – a role which advertising is much better suited to.
 33

Tablea18aaThe Sample of Cosmetic Products Promotion:

Brand Real Price (Bath) Promotion Price (Bath)

Olay White Radiance 265 197
Olay Total Effect 430 365
L’Oreal Men Expert Vita Lift 490 441
L’Oreal Revital Lift Day Cream 419 399
Nivea Q10 for Men 499 399
Ponds Age Miracle Day Cream 419 399
Garnier Age Lift 379 314
Garnier Age Lift Pro-X 419 399

“Source” www.bigc.co.th , (Watsons Shop (Phrae Branch), 2008)

PR and Advertising
PR and Advertising have influence on the consumer to purchase the product.
In the world of competition, each product must always be made attractive and make
the consumer remember the brand. Cosmetic products also do in the same way. Each
brand of cosmetic products do PR and Advertising through the mass media such as
television, radio, sign board at the bus stop, sky train station etc. Moreover, each brand
of cosmetic products selects the celebrities to be the presenter or brand ambassadors
for the product. This is to make the consumer interested in that product and purchase
that product eventually.
-aaPond’s
Pond’s opened the product” Pond’s age miracle” through mass
communication in Asian countries and described the usage outcome of this product.
For Thailand, Pond’s invited singer and master of ceremonies “Sara Poongpresert” to
be the ambassador of this product. Her endorsement of this product is broadcast in
chanel3, chanel5, chanel7, chanel9 in the television and in radio.
Pond’s flawless white, another product produced the romantic series
advertisement called 7 days to love and showed to the consumers for the first time in
22 October 2007. The advertisement promoted the product until February 2008.
 34

Pond’s forecast to use the budget for this product was around 500 million baht. It’s the
highest budget that Pond’s has invested. Moreover, this romantic series will be shown
in 5 Asian countries.
-aaOlay
Olay total effect was promoted by the use of 2 brand ambassadors and
broadcast in television. Olay used the reality in brand ambassador’s life:
In 2006 Nat Myria, the popular singer and actress, had the stage performance
around 50 times. So, Olay total effect used this story and made the advertisement that
although Nat Myria is hard working she is still beautiful because of Olay total effect.
In the same year, Pim Sonia Cooling, the popular model will be married. She
looked very beautiful and everybody thought she attended a bride course. Olay total
effect used this story and made the advertisement that Pim Sonia was beautiful
because of Olay total effect not because of a bride course.
-aaSmooth E
Smooth E realizes to select a presenter because smooth E needs the consumer
to be interested and to trust the brand. The latest presenter is “Ann Thongprasom”, the
very famous actress that made the consumer trust in the brand with her successful
actress image. In the advertisement she is a working woman who has to face oxidants
and chemicals but still take care of her skin for looking good, white, without wrinkle.
This advertisement was broadcast in June 2005.

-aaL’Oreal
Mr. Phillip Jean, Managing Director, L’Oreal (Thailand) said that the
selection of Thai presenter is the factor that makes the consumers interested in the
product. L’Oreal seriously used Thai presenters in 2000 and signed a contract with
“Pop Areeya Sirisopa” Miss Thailand 1994. She is the presenter of many products of
L’Oreal Paris.
Moreover, L’Oreal Men Expert selected Lee Sow, the national football player
to be the presenter of this product inasmuch as he is a representative of the new smart
generation.
 35

In 2007, L’Oreal Revita lift - double lifting and L’Oreal Revita Lift (day
cream) had “Sinjai Plengpanit”, the famous actress to be the presenter. She promoted
the anti-wrinkle product for women 40 years old up. This advertisement is still
broadcast. L’Oreal Men Expert White Active, whitening cream has “Dome Pakorn
Lam” as the presenter, and the advertisement is still broadcast.
-aaGarnier
Garnier tried to promote the product also and used “Nok Jariya Anfone” the
actress and conductor as the presenter of the product named “Garnier Lift” for women
40 years old up who don’t want to have wrinkles. The advertisement is still broadcast
in all channels.

Researches
Thanachai Chaikittavanit (2006), Director of Marketing for Beiersdorf
(Thailand) Co., Ltd an agency of “NIVEA” told that there is social pressure and social
need to see people succeed without wrinkle. It is important to be smart in profession
and have the younger appearance than the real age.
Years ago, whitening care market had market share of 60%, anti-aging had
market share of 20%. This year, whitening care market share still remains 60%, but
anti-aging market is up from 20% to 40%. That is because of a new market derived
from basic care customers. Why do people use more anti aging cosmetics? Thanachai
answers shortly “It’s a pressure from new social model. A major stimulation of
wrinkle problem is from ages. It is considered a natural problem. The public favor
people who are 40 years old up but look younger; hence they would recommend the
use of efficient anti-aging product.
The future trend of anti-aging will be better in sales. Thanachai forecast that anti-aging
will be more popular continuously because people under 30 years old use anti-aging
product. Now people who are 20 years old also use anti-aging products. Anti-aging
has been growing for 5 years and the next 5 years. It will be growing continuously at
20%. The market maybe down in some years but Thanachai said it is because the
manufacturer tried to put less innovative products into the market than before. Thai
people like to test new products whether or not there are many anti-aging products in
the market. It’s still not enough, so if we have innovation and make people believe that
 36

it can really reduce wrinkle, people will pay for it without a limit. This is a conclusion
that people in the next generation will spend their money for wrinkle matter more.
They will buy particular products, such as eye cream, cheek cream or neck cream.
Some said the product will be produced in a specific way or tailor-made in the future
because people realized that different people have different problems. In other words,
efficient products must be designed for the individual person. This is the trend which
will occur in the future.
(Gary D. Thomson and Julia Kidwell, 1998) The choice between organic and
conventional product was estimated empirically using a two equation probability
model. Data were collected in-store on cosmetic defects, product prices and
consumer’s demographic and cosmetic traits. Store choice displayed a significant
impact on the probability of purchasing organic products. Shoppers at the specialty
grocer were sensitive to price differences between organic and conventional items.
Household with children under eighteen were more likely to purchase organic
products while shoppers with graduate or professional degrees were less likely to do
so. Difference in cosmetic defects had statically significant albeit small effects on the
probability of purchasing organics.
 37

Wannipa Pakdeeboot, (2007) Uniliver (Thailand) Deputy Managing Director,

for house ware and personal products talked about the growth of skin treatment
products in masstique market. Because of the behavior of women who need the
products of various ranges, many brands are launched in the market.
The survey of Thai women found that 68% of them look for the product that
makes the skin smooth and white, and 68% need to have natural whiter skin. The
products’ capabilities are the reason for many women’s preference. They are not stuck
with the brand and maybe select the mass and mystique product. They use them
together at the same time. That makes the skin treatment product grow in the same
way. That makes the economic products decrease. In some segments, the anti-wrinkle
product is decreased -24% because the consumer changed and selected the higher
product with the better benefit.
In summary the latest product has many segments. With benefit and value
added to the product, there is a continuous segmentation.
The study of factors that influence purchasing behavior for import face
treatment skin of women in Bangkok was done by random purposive sampling. 400
samples found that marketing factors have influence on decision to use the face
treatment product. The most influential marketing factors are quality of the product
and the service from the seller (Nittaya Chaingam, 2005).
The study of influence on purchasing face treatment product (Thai brand and
international brand) among 226 samples of women 18-45 years old in Bangkok found
that the first 3 factors influencing purchase of product. The factors are quality of the
product, the confidence in the brand and the reasonability of price. (Kwanrithai
Ratchabangsa, 2003)
The study of attitude and behavior of men on cosmetic products was done by
random sampling 400 women 18-37 years old in Bangkok. It found that the
consumers believed the product should be endorsed by skin specialists, quality is
important than price. Moreover, the product should be found at the counter of
department stores, the seller helps to make the decision and establish the reason to use
the product. The most attractive promotion is price discount. (Narimol
Bootsayapalakorn, 2003)
 38

Gender influence on Brand

Masculine or feminine personality traits (e.g., “The softer side of Sears”) may
have influence on brand choice. Although, masculinity and femininity are personality
traits that are clearly relevant to brands, their measurement and contribution to
branding theory has not been examined. At present, marketers have to use human
personality scales to measure gender dimensions of brand personality in the evaluation
of positioning or repositioning strategies. Scales measuring masculinity and femininity
as human personality traits have not been validated in a brand personality context,
however. Their use in the measurement of brand personality is inappropriate, as there
is evidence that scales measuring human personality traits do not necessarily lend
themselves to the description of personality traits associated with brands (Caprara,
Barbaranelli, and Guido, 2001). The primary objective of this article is the
development and validation of a scale measuring the gender dimensions of brand
personality for use in theory tests pertaining to gender dimensions of brands and as
diagnostic tool in the evaluation of positioning strategies. The application of the
masculine and feminine brand personality scale in this article advances the brand
personality literature by addressing the following questions: 1. How is brand
personality created? Do spokespeople in advertisements shape consumers’ brand
personality perceptions? 2. Does brand personality and self-concept have a congruent
result in positive behavioral consumer responses that go beyond the attitudinal
responses reported in the literature (e.g., Aaker 1999)? And finally, 3. Can fit of
parent brand personality and extension category perceptions enhance brand extension
evaluations and purchase intentions with regard to the brand extension? The remainder
of this article is structured as follows: A more detailed discussion of the nature and
significance of gender dimensions of brand personality proceed.
Study I describes the development of a masculine and feminine brand
personality scale (MBP/FBP). Masculinity and femininity emerged as two independent
personality dimensions that are captured by six items, respectively. The scale’s
generalization to both symbolic and utilitarian product categories is illustrated in
Study 2. Study 3 provides evidence of the scale’s predictive ability.
Study 4 establishes the scale’s discriminant validity with regard to the Bem
Sex Role Inventory – a measure of masculinity and femininity as human personality
 39

traits (Study 4A) – and the ruggedness and sophistication dimensions of Aaker’s
(1997) brand personality scale (Study 4B).
Three studies then address the central research questions put forth earlier:
Study 5 shows that spokespeople in advertisements contribute to the creation
of brand personality.
Study 6 demonstrates a positive effect of brand personality – self-concept
congruence on affective, attitudinal and behavioral consumer responses to brands.
Study 7 confirms that brand fit based on brand personality and extension
category perceptions enhances brand extension evaluations and purchase intentions
with regard to the brand extension.
The study aims to realize what factors influence high school students as they
make decisions purchasing cosmetics. Lin-lung Tsai and Feng-hsin Su (2005)
discovered that gender has an influence on consumers’ reaction to cosmetics
marketing stimulus involving degree, purchasing place, and purchasing categories.
Besides, school types in which consumers study influence the cosmetics categories
they buy.
Income influence on Brand
Sirirat Kamdaeng and Sukanya Reunrom, (2005) found that women who have
different income have different selection of cosmetic products. The researchers
believed that the women with high income are ready to purchase the expensive
cosmetic products without plan to decide. She found that the women with low income
have the behavior to purchase cosmetic products in the grocery because they rely on
the relation with shoppers.
The study aims to realize what factors influence high school students as they
make decisions purchasing cosmetics. Lin-lung Tsai and Feng-hsin Su (2005)
discovered that monthly allowance also affect consumer’s degree of involvement in
cosmetics, purchase categories, purchase prices, and purchase factors. In addition,
their parent’s occupations affect consumers’ purchase places and categories.
 CHAPTERAAIII

RESEARCH METHODOLOGY

This report was designed to study factors influencing purchase behavior for
cosmetic products. There are many interesting factors to consider, however this report
will focus on pricing as a main factor. Research workers are setting module to process
in order to succeed with the objectives. The method details are as follows:
1.aaPopulation Collection
2.aaResearch instrument
3.aaData Collection
4.aaData analysis

Population and Sample

This report summarizes the result of a quantitative survey research. Unity
Marketing conducted a survey of just about 271 persons that normally wear cosmetic
products.
Population is men and women generation 2006 who study in Naresuan
University Bangkok Campus and normally wear some of cosmetic product
Sample size
The sample size is derived in the light of Taro Yamane’s theory (Thanin
Sinjaru, 2007, p. 48). The number of sample size is as follows:

n = N
1+ Ne2

Where :
N = population size
n = sample size
e = confidence interval, expressed as decimal (e.g., 0.05 = ±5)
 41

n = 847 = 271
1+ [847x(0.05)2]

Thus, the sample size is 271 respondents who are studying in Naresuan
University Bangkok campus

Research Instrument
The research instrument is a questionnaire which is separated into four parts
as below:
Part I : Awareness
Part II : Consumption
Part III : Buying behavior
Part IV : Demographic

Data Collection
The survey was conducted during March – April 2008 among consumers in
Naresuan University Bangkok Campus. Collection of information from magazines,
articles, and related research was done.

Analysis of Data
The data were analyzed by SPSS for Windows.
1.aaDescriptive statistics
According to (Wikipedia, 2008) the free encyclopedia said that;
Descriptive Statistics are used to describe the basic features of the data
gathered from an experimental study in various ways. They provide simple summaries
about the sample and the measures. Together with simple graphics analysis, they form
the basis of virtually every quantitative analysis of data. It is necessary to be familiar
with primary methods of describing data in order to understand phenomena and make
intelligent decisions. Various techniques that are commonly used are classified as:
Graphical description in which we use graphs to summarize data.
-aaTabular description in which we use tables to summarize data.
 42

-aaSummary statistics in which we calculate certain values to summarize

data.
In general, statistical data can be briefed as a list of subjects or units and the
data associated with each of them. Although most research uses many data types for
each unit, we will limit ourselves to just one data item each for this simple
introduction.
We have two objectives for our summary:
-aaWe want to choose a statistic that shows how different units seem similar.
Statistical textbooks call the solution to this objective, a measure of central tendency.
-aaWe want to choose another statistic that shows how they differ. This kind
of statistic is often called a measure of statistical variability. When we are
summarizing a quantity like length or weight or age, it is common to answer the first
question with the arithmetic mean, the median, or the mode. Sometimes, we choose
specific values from the cumulative distribution function called quantiles.
The most common measures of variability for quantitative data are the variance; its
square root, the standard deviation; the range; interquartile range; and the average
absolute deviation (average deviation).
2.aaDescriptive statistics are used to describe the basic features of the data in
a study. They provide simple summaries about the sample and the measures. Together
with simple graphics analysis, they form the basis of virtually every quantitative
analysis of data.
Descriptive statistics are typically distinguished from inferential statistics.
With descriptive statistics you are simply describing what is or what the data shows.
With inferential statistics, you are trying to reach conclusions that extend beyond the
immediate data alone. For instance, we use inferential statistics to try to infer from the
sample data what the population might think. Or, we use inferential statistics to make
judgments of the probability that an observed difference between groups is a
dependable one or one that might have happened by chance in this study. Thus, we use
inferential statistics to make inferences from our data to more general conditions; we
use descriptive statistics simply to describe what's going on in our data. The details
above are according to William M.K. Trochim 1998-2007.
 43

According to William M.K. Trochin (2008), with inferential statistics, you are
trying to reach conclusions that extend beyond the immediate data alone. For instance,
we use inferential statistics to try to infer from the sample data what the population
might think. Or, we use inferential statistics to make judgments of the probability that
an observed difference between groups is a dependable one or one that might have
happened by chance in this study. Thus, we use inferential statistics to make
inferences from our data to more general conditions; we use descriptive statistics
simply to describe what's going on in our data.
Here, we concentrate on inferential statistics that are useful in experimental
and quasi-experimental research design or in program outcome evaluation. Perhaps
one of the simplest inferential test is used when we want to compare the average
performance of two groups on a single measure to see if there is a difference. We
might want to know whether the difference among gender, age, income, occupation
and education are related to price or whether the difference among gender, age,
income, occupation and education are related to brand. Whenever we wish to compare
the average performance between two groups and should consider the t-test for
differences between groups.
Hypotheses
1.aaThe difference in gender, age, income, occupation and education are
related to price
2.aaThe difference in gender, age, income, occupation and education are
related to brand
 43

CHAPTERAAIV

RESULTS

Regarding the study of factors influencing purchase of cosmetic products, this

study processed a questionnaire that respondents from Naresuan University Bangkok
Campus filled out. The questionnaire which was distributed to two hundred and eight
respondents is separated into three parts as below:
Part I Data Analysis of respondents’ demographics
Part II Data Analysis of consumer behavior
Part III Data Analysis for the hypotheses

Tablea19aaQuestionnaire Quantity

Return Useful Useless

Delegated
Respondent Questionnaire Questionnaire Questionnaire
Questionnaire
QTY % QTY % QTY %
Student in
Naresuan 300 300 100 271 90 29 10
University

Table 19 Questionnaire Quantity shows that from the total of 300 copies of
the questionnaire, 271 were filled out by the respondents. This constitutes 90% of the
total number of questionnaire distributed.
 44

PartaIaaData Analysis of Respondents’ Personal Information

Age
The respondents’ ages are between 21 – 30 years at 71.6%, followed by ages
between 31 – 40 years at 24.7% and lastly ages more than 40 years at 3.7%. Figure 2
shows the distribution.

3. 70%
24. 70%
21- 30Years
31- 40Years
>40Years

71. 6%

Figurea2aaRespondents’ Percentage by Age

 45

Education
The respondents are educated under bachelor degree at 1.0%, followed by
bachelor degree at 47.0% and lastly above bachelor degree at 52.0%. Figure 3 shows
the percentages.

1.00%

47%

Under bachelor degree

52.00%
Bachalor Degree

Above Bachelor degree

Figurea3aaRespondents percentage by education

Career
Respondents who have their own business was counted at 21 persons or 10%,
followed by students at 54 persons or 25.5% and work in private company at 111
persons or 52.5% then lastly with bureaucracy at 25 persons or 12%. Figure 4 shows
the percentages.

12% 10.00%
Student
25.5%
Private
company
Bureaucracy
52.50%

Figurea4aaRespondents percentage by career

 46

Gender
Respondents who are males are at 20.7%, and females at 79.3% as shown in
figure 5.

20.70%

Male
79.3% Female

Figurea5aaRespondents percentage by gender

Income
Respondents with income under Baht 10,000 are at 10.3%; followed by
between Baht 10,000 – 20,000 at 53.3% and between Baht 20,001 – 40,000 at 25.0%
then above Baht 40,000 at 11.2% as shown in figure 6

11.20% 10.30% between

10000-20000
25.00% between
20001-40000
Above 40000
53.50%

Figurea6aaRespondents percentage by Income

 47

Buying reason
The respondent’s buying reasons are as follows: to improve skin at 40.8 %,
then cleansing at 37.5 %, for attractive skin at 11 %, anti aging at 8 %, skin protection
at 2.7 %. Figure 7 shows the percentages.

8% 2.70%
11% 40.80% Improve Skin
Cleansing
Attractive
Anti aging
37.50%
Protect skin

Figurea7aaRespondents percentage by buying reason

 48

Brand influence
The respondents’ rating for brand influence are as follows:
Level 5 : 27.2 %
Level 4 : 44.0 %
Level 3 : 22.5 %
Level 2 : 3.3 %
Level 1 : 3.0 %
As graph 8

27.20% 3.00% 3.30%

22.50%
Level 1
Level 2
Level 3
Level 4
Level 5
44.00%

Figurea8aaRespondents percentage by brand influence

“Note” Level 1 = Less important Level 5 = Most important

 49

Product quality influence

The respondents’ rating of product quality influence are as follows:
Level 5 : 60.0 %
Level 4 : 26.0 %
Level 3 : 8.7 %
Level 2 : 1.9 %
Level 1 : 3.4 %
As Graph 9

3.40% 1.90%
8.70%
Level 1
Level 2
Level 3
Level 4
Level 5
26%
40%

Figurea9aaRespondents percentage by product quality influence

“Note”
Level 1 = Less important
Level 5 = Most important
 50

Warrantee influence
The respondents’ rating of warrantee quality influence are as follows:
Level 5 : 17.3 %
Level 4 : 44.2 %
Level 3 : 32.7 %
Level 2 : 3.9 %
Level 1 : 1.9 %
As Graph 10

1.90% 3.90%
17.30%
Level 1
Level 2
Level 3
Level 4
Level 5
4.20% 32.70%

Figurea10aaRespondents percentage by buying reason

“Note”
Level 1 = Less important
Level 5 = Most important
 51

Packaging influence
The respondents’ rating of packaging quality influence are as follows:
Level 5 : 12 %
Level 4 : 30.8 %
Level 3 : 42.8 %
Level 2 : 11.5 %
Level 1 : 2.9 %
As Graph 11

12% 2.90%
11.50%

Level 1
Level 2
Level 3
Level 4
42.80% Level 5
30.80%

Figurea11aaRespondents percentage by packaging influence

“Note”
Level 1 = Less important
Level 5 = Most important
 52

Price influence
The respondents’ rating of price influence are as follows:
Level 5 : 21.8 %
Level 4 : 43.2 %
Level 3 : 30.6 %
Level 2 : 4.0 %
Level 1 : 0.4 %
As graph 12

0.40% 4.00%
21.80% 30.60%
Level 1
Level 2
Level 3
Level 4
Level 5
43.20%

Figurea12aaRespondents percentage by price influence

“Note”
Level 1 = Less important
Level 5 = Most important
 53

Convenience store influence

The respondents’ rating of convenience store influence are as follows:
Level 5 : 8.7 %
Level 4 : 40.9 %
Level 3 : 40.4 %
Level 2 : 7.7 %
Level 1 : 2.3 %
As per Graph 13

8.70% 2.30% 7.70%

Level 1
Level 2
Level 3
Level 4
Level 5
40.90% 40.40%

Figurea13aaRespondents percentage by convenience store influence

“Note”
Level 1 = Less important
Level 5 = Most important
 54

Atmosphere influence
The respondents’ rating of atmosphere influence are as follows:
Level 5 : 8.2 %
Level 4 : 29.3 %
Level 3 : 37 %
Level 2 : 17.8 %
Level 1 : 7.7 %
As Graph 14

8.20% 7.70%
17.80% Level 1
Level 2
Level 3
Level 4
Level 5
29.30%
37%

Figurea14aaRespondents percentage by Atmosphere influence

“Note”
Level 1 = Less important
Level 5 = Most important
 55

Service influence
The respondents’ rating of service influence are as follows:
Level 5 : 25.5 %
Level 4 : 29.8 %
Level 3 : 32.2 %
Level 2 : 10 %
Level 1 : 2.5 %
As Graph 15

2.50%
10%
25.50%
Level 1
Level 2
Level 3
Level 4
Level 5
32.20%
29.80%

Figurea15aaRespondents percentage by service influence

“Note”
Level 1 = Less important
Level 5 = Most important
 56

Discount influence
The respondents’ rating of discount influence are as follows:
Level 5 : 8.7 %
Level 4 : 40.9 %
Level 3 : 40.4 %
Level 2 : 7.7 %
Level 1 : 2.3 %
As Graph 16

8.70% 2.30% 7.70%

Level 1
Level 2
Level 3
Level 4
Level 5
40.40%
40.90%

Figurea16aaRespondents percentage by discount influence

“Note”
Level 1 = Less important
Level 5 = Most important
 57

Advertising influence
The respondents’ rating of advertising influence are as follows:
Level 5 : 18.3 %
Level 4 : 42.3 %
Level 3 : 27 %
Level 2 : 6.8 %
Level 1 : 5.6 %
As Graph 17

5.60%
18.30% 6.80%

Level 1
Level 2
Level 3
Level 4
Level 5
27%

42.30%

Figurea17aaRespondents’ Percentage by Advertisement Influence

“Note”
Level 1 = Less important
Level 5 = Most important
 58

Suggestion from Experience influence

The respondents rating of Suggestion from Experience influence are as
follows:
Level 5 : 15 %
Level 4 : 28.4 %
Level 3 : 30 %
Level 2 : 24 %
Level 1 : 2.6 %
As Graph 18

15% 2.60%

24%
Level 1
Level 2
Level 3
Level 4
Level 5
28.40%
30%

Figurea18aaRespondents’ Percentage by Suggestion Influence

“Note”
Level 1 = Less important
Level 5 = Most important
 59

PartaII : Data Analysis of Consumer Behavior

Hypothesis 1 : The differences in gender, age, income, occupation, and
education are related to price.
Hypothesis 1.1 The differences in gender is related to price.

Tablea20aaComparatives in Gender as Related to Price

Gender Mean Std. Deviation F Sig.
Male 3.84 .949 2.760 .028*
Female 3.81 .799
Total 3.82 .830

* Level of significant at p<.05

Regarding analysis of gender and price, the result shows that there is
significant relationship between gender and price with cosmetic product purchasing
behavior.
Hypothesis 1.2 The difference of age is related to price

Tablea21aaComparatives in Age as Related to Price

Age Mean1 Std. Deviation2 F Sig.

21-30 years 3.87 .833 .690 .600
31-40 years 3.67 .805
>40 years 3.80 .919
Total 3.82 .830

“Note”
1
Average
2
Standard Deviation
* Confidence interval (0.05)
 60

Regarding analysis of age and price, the result shows that there is no
significant relationship between age and price with cosmetic product purchasing
behavior.
Hypothesis 1.3 The difference in income is related to price

Tablea22aaComparatives in Income as Related to Price

Income Mean1 Std. Deviation2 F Sig.

< 10,000 Baht 3.89 .737 1.266 .284
10,001 – 20,000 Baht 3.80 .813
20,001 – 40,000 Baht 3.88 .907
> 40,000 Baht 3.70 .837
Total 3.82 .830

Regarding analysis of income and price, the result shows that there is not
significant relationship between income and price with cosmetic product purchasing
behavior.
Hypothesis 1.4 The difference in education is related to price

Tablea23aaComparatives in Education as Related to Price

Education Mean1 Std. Deviation2 F Sig.
< Bachelor Degree 3.00 .000 .655 .624
Bachelor Degree 3.84 .801
Master Degree 3.82 .859
Total 3.82 .830

“Note”
1
Average
2
Standard Deviation
* Confidence interval (0.05)
 61

Regarding analysis of education and price, the result shows that there is no
significant relationship between education and price with cosmetic product purchasing
behavior.
Hypothesis 1.5 The difference in occupation is related to price

Tablea24aaComparatives in Occupation as Related to Price

Occupation Mean1 Std. Deviation2 F Sig.

Own business 3.69 .930 2.109 .080
Student 4.00 .759
Employee in private company 3.77 .809
Bureaucracy 3.82 .936
Total 3.82 .830

“Note”
1
Average
2
Standard Deviation
* Confidence interval (0.05)

Regarding analysis of occupation and price, the result shows that there is no
significant between occupation and price with cosmetic product purchasing behavior.
 62

Hypothesis 2 : The differences in gender, age, income, occupation, and

education are related to brand
Hypothesis 2.1 The differences in gender is related to brand

Tablea25aaComparatives in Gender as Related to Brand

Gender Mean1 Std. Deviation2 F Sig.

Male 3.66 .880 4.037 .003*
Female 3.95 .951
Total 3.89 .943

* Level of significant at p<.05

Regarding analysis of gender and brand, the result shows that there is
significant relationship between gender and brand with cosmetic product purchasing
behavior.
Hypothesis 2.2 The difference in age is related to brand

Tablea26aaComparatives in Ages as Related to Brand

Age Mean1 Std. Deviation2 F Sig.

21-30 years 3.89 .937 .800 .526
31-40 years 3.93 .958
>40 years 3.80 1.033
Total 3.89 .943

“Note”
1
Average
2
Standard Deviation
* Confidence interval (0.05)
 63

Regarding analysis of age and brand, the result shows that there is no
significant relationship between age and brand with cosmetic product purchasing
behavior.
Hypothesis 2.3 The difference in income is related to brand

Tablea27aaComparatives in Income as Related to Brand

Income Mean1 Std. Deviation2 F Sig.

< 10,000 Baht 3.86 .848 4.821 .001*
10,001 – 20,000 Baht 3.92 .932
20,001 – 40,000 Baht 3.74 1.017
> 40,000 Baht 4.17 .874
Total 3.89 .943

* Level of significant at p<.05

1
Average
2
Standard Deviation

Regarding analysis of income and brand, the result shows that there is
significant relationship between income and brand with cosmetic product purchasing
behavior. Therefore, the analysis of LSD is used to describe between couple as below:

Tablea28aaComparatives in Income as Related to Brand by Couple

Consideration

< 10,000 10,001 – 20,000 20,001 – 40,000 > 40,000

Income
Baht Baht Baht Baht
< 10,000 Baht - .757 .564 .211
10,001 – 20,000 Baht - - .189 .187
20,001 – 40,000 Baht - - - .037*
> 40,000 Baht - - - -

* Level of significant at p<.05

 64

Regarding the above table, the number shows that there is difference in brand
influence between the respondents who have income under Baht 40,000 and over Baht
40,000
Hypothesis 2.4 The difference in education is related to brand

Tablea29aaComparatives in Education as Related to Brand

Education Mean1 Std. Deviation2 F Sig.

< Bachelor Degree 3.00 .000 .931 .446
Bachelor Degree 3.86 .928
Master Degree 3.94 .958
Total 3.89 .943

Regarding analysis of education and brand, the result shows that there is no
significant relationship between education and brand with cosmetic product
purchasing behavior.
Hypothesis 2.5 The difference in occupation is related to brand

Tablea30aaComparatives in Occupation as Related to Brand

Occupation Mean1 Std. Deviation2 F Sig.

Own business 3.83 .966 1.457 .216
Student 4.10 .817
Employee in private company 3.86 .952
Bureaucracy 3.71 1.060
Total 3.89 .943

* Level of significant at p<.05

1
Average
2
Standard Deviation
 65

Regarding analysis of occupation and brand, the result shows that there is no
significant relationship between occupation and brand with cosmetic product
purchasing behavior.
 CHAPTERAAV

CONCLUSIONS

This research was designed to study the influence of price and brand on
cosmetic product purchasing behavior of consumers who study in Naresuan University
Bangkok Campus.

Findings
The result of the research can be summarized as follows:

Part I: Data Analysis on Respondents’ Demographics.

The respondents are almost 21-30 years old at 71.6%., Education above
Bachelor degree at 52.0%, work in private company at 52.50%, female at 79.3%,
income above Baht 40,000 at 53.5%.

Part II: Data Analysis of Consumers’ Behavior.

The main purpose of buying cosmetic products is to improve skin at 40.8%.
Choosing product quality as a main factor is at 60%.

Part III: Data analysis to Prove Hypotheses

Hypothesis 1 : The differences in gender, age, income, occupation, and
education are related to price
1.aaThe difference in gender is related to price : the result shows that there is
significant relationship between gender and price with cosmetic product purchasing
behavior. True
2.aaThe difference in age is related to price : the result shows that there is no
significant relationship between age and price with cosmetic product purchasing
behavior. False
 67

3.aaThe difference in income is related to price : the result shows that there is
no significant relationship between income and price with cosmetic product
purchasing behavior. False
4.aaThe difference in education is related to price: the result shows that there
is no significant relationship between education and price with cosmetic product
purchasing behavior. False
5.aaThe difference in occupation is related to price : the result shows that
there is no significant relationship between occupation and price with cosmetic
product purchasing behavior. False
Hypothesis 2 : The differences in gender, age, income, occupation, and
education are related to brand
1.aaThe difference in gender is related to brand : the result shows that there is
significant relationship between gender and brand with cosmetic product purchasing
behavior. True
2.aaThe difference in age is related to brand : the result shows that there is not
significant relationship between age and brand with cosmetic product purchasing
behavior. False
3.aaThe difference in income is related to brand : the result shows that there is
significant relationship between income and brand with cosmetic product purchasing
behavior. True
4.aaThe difference in education is related to brand : the result shows that
there is not significant relationship between education and brand with cosmetic
product purchasing behavior. False
5.aaThe difference in occupation is related to brand : the result shows that
there is not significant relationship between occupation and brand with cosmetic
product purchasing behavior. False

Discussion
According to the study of Lin-Lung Tsai and feug-hsin Su, (2005) gender has
an influence on consumer reaction to cosmetic marketing stimulus price and brand.
This supports hypotheses 1.1 (gender, price) and 2.1 (gender, brand)
 68

Recommendations
The first objective of this research is focused on respondents’ demographics
which will be the baseline of information for other research. The second objective of
this research is to study factors influencing purchase behavior for cosmetic products
which have the result as follows :
1.aaThe gender is related to price of cosmetic product
2.aaThe gender is related to brand of cosmetic product
3.aaThe income is related to brand of cosmetic product
Regarding the results, the cosmetic companies can use these information to
focus on customer groups and develop products. Moreover, the cosmetic companies
can use this information to be a baseline for developing their research in terms of
promotion.
 69

REFERENCES
 70

REFERENCES

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07c8a3681bf131ffb9e6cfcf52.
Gary D. Thompson, Julia Kidwell. (May 24, 1998). Explaining the Choice of Organic
Produce: Cosmetic Defects, Prices, and Consumer Preferences. American
Journal of Agricultural Economics. Retrieved February, 28, 2008, from
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AETCOOP%3E2.0.CO%3B2-W%size=LARGE&origin=Jstro-enlargePage.
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Consumer Decision Making in Shopping Environments: The Effects of

Interactive Decision Aids (69 - 82). New York: Macmillan.
Jacques Delacroix, A. S. A. S. Q. (1991). Cosmetic, speculative, and adaptive
organizational change in Anand Swaminathan (Ed.). A longitudinal study
Article Excerpt, (36). California: Macmillan.
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among Consumers in Kerala. International Marketing Conferonence on
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Poteric Valeric. (April 03, 1997). Cosmetic composition including a polymeric

system. United states patent 6010686 Introduction to cosmetic. Retrieved
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and Brand Purchase Decisions. The Journal of Consumer Research.
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 72

APPENDIX
 73

Questionnaire : Factors influencing purchase behavior for cosmetic products

Master of Business Administration (International Program)
Naresuan University

This questionnaire is part of the independent study “Factors influencing purchase

behavior for cosmetic products ” of Naresuan University. The data will be
confidential and valuable for study purpose only. Editors are highly appreciated for
attendants’ corporation.

Definitions of Terms: Cosmetic product means skin care product applied to the skin
for improving skin texture and preventing problem, whitening, rejuvenation, and
cleansing.
Part I: Awareness
1. Which cosmetic product do you know (more than one answer)
… Body Lotion / Cream … Face Lotion / Cream
… Sun block … Face Foam / Gel
… Anti - ageing cream … Eye cream
… Scrub … Other (Please specify)
2. What is your important skin problem? (more than one answer)
… Acne … Scar
… Skin Allergy … Skin color problem
… Large pore size … Oily skin
… Dry skin … other (Please specify)
 74

Questionnaire : Factors influencing purchase behavior for cosmetic products

Master of Business Administration (International Program)
Naresuan University

Part II: Consumption

3. What is usually cosmetic product that you use?
Useful Your Cosmetic Priority
Cosmetic product 1-Less important , 5 – most
important
Yes No 1 2 3 4 5
1 Face Foam / Gel
2 Body Cream / Lotion
3 Face Cream / Lotion
4 Sun block
5 Whitening
6 Anti-ageing cream
7 Eyes cream
8 Acne treatment
9 Scrub
10 Other ………………
Part III: Buying behavior
4. What is the most important reason to choose cosmetic product? (One
answer)
… Attractive … Improve skin
… Cleaning … Anti-ageing
… Other (Please specify)
 75

Questionnaire : Factors influencing purchase behavior for cosmetic products

Master of Business Administration (International Program)
Naresuan University

5. What is the most important reason you do NOT buy cosmetic product?
(One answer)
… Price … Brand … Sales representative
… Friends … Other (Please specify)
6. Who is the most often person who buy cosmetic product for you? (One
answer)
… Yourself … Friend
… Sister / Brother … Other (Please specify)
7. Do you find out information before make decision to buy cosmetic product?
… Collect information before buy
… Make decision at the cosmetic counter
8. Who is the most influence person of your purchase behavior?
… Colleague … Friend
… Spouse … Parent
… Yourself … Sales representative
… Presenter … Other (Specify)
9. What is the average budget for each cosmetic purchasing?
… Below 200 Baht / Time … 201 – 500 Baht / Time
… Below 501 – 1,000 Baht / Time … 1,001 – 2,000 Baht / Time
… Below 2,001 – 3,000 Baht / Time … 3,001 – 4,000 Baht / Time
… Below 4,001 – 5,000 Baht / Time … More than 5,000 Baht / Time
10. How often do you buy cosmetic product?
… More than 1 times a month … Once a month
… Once two month’s … Once More than 3 months
 76

Questionnaire : Factors influencing purchase behavior for cosmetic products

Master of Business Administration (International Program)
Naresuan University

11. Where do you usually buy cosmetic product?

… Cosmetic counter … Super market
… Convenience store (Boots, Watsan) … Direct sales
… Skin clinic … Other (Specify)
12. What is the important factor for your decision making?

Priority
Factor 1 – Not important , 5 – Most
important
1 2 3 4 5
1 Brand
2 Product Quality
3 Warranty from relation organization
4 Packaging (Bottle)
5 Price
6 Convenience market
7 Atmosphere
8 Services
9 Discount
10 Advertisement , Promotion
11 Suggestion from expertise
12 Other
 77

Questionnaire : Factors influencing purchase behavior for cosmetic products

Master of Business Administration (International Program)
Naresuan University

Part IV: Demographic

13. Age (Years)
… Under 21 Year-old … 21 – 30 Year - old
… 31 – 40 Year-old … More than 40 Year-old
14. Education
… Under Bachelor degree … Bachelor degree
… Master degree
15. Occupation
… Own business … Student
… Employee in private company … Bureaucracy
16. Income
… Under 10,000 Baht … 10,001 – 20,000 Baht
… 20,001 – 40,000 Baht … Above 40,000 Baht
17. Gender
… Male … Female
 78

BIOGRAPHY
 79

BIOGRAPHY

Name - Surname Chunhapak Unrtawarndee

Date of Birth June 9, 1978
Place of Birth Bangkok, Thailand
Address 118/89 The Terrace Village, Moo 7, Takham Road,
Bangkhuntean, Samaedam, Bangkok Thailand
Work Place Medtronic (Thailand) Ltd.
Position Sales Coordinator
Education Background
2008 MBA (Business Administration International Program),
Naresuan University, Phitsanulok Thailand
1999 B.Sc. (Computer Science), Ratjabhat Institute Tepsatri,
Bangkok Thailand
 80

BIOGRAPHY

Name-Surname Saithip Pamittasil

Date of Birth December 28, 1980
Place of Birth Nakron Pathom, Thailand
Address 456/2 Suan Siri Place, Soi Rathvithee, Phaya Thai
Bangkok 10400 Thailand
Work Place Astraco (Thailand) Ltd.
Position Sales Representative
Education Background
2008 MBA (Business Administration International Program),
Naresuan University, Phitsanulok, Thailand
2003 B.A. (International Business Administration),
The University of the Thai Chamber of Commerce,
Bangkok Thailand
 81

BIOGRAPHY

Name-Surname Sanitphong Mungthong

Date of Birth December 13, 1981
Place of Birth Phrae Province, Thailand
Address 84/2 Moo2, Padang, Maung district, Phrae, Thailand
Work Place S. Mung Thong Company limited
Position General Manager
Education Background
2008 MBA (Business Administration International Program),
Naresuan University, Phitsanulok, Thailand
2004 B.L. (School of Laws) Bangkok University, Bangkok,
Thailand