The Impact of Advertising of Luxury Cosmetic Brands on Consumer Choice in London - Research Proposal Example

The impact of advertising of luxury cosmetic brands on consumer choice in London Introduction The quintessence of being in business by any organization outfits is to manufacture for sales and increase profits. In order to stay put in business a business investment must generate adequate sales from its products enabling the covering of operating costs as well as post reasonable profits. For many businesses, sales estimate is precisely the starting point in profit planning or budgeting (Fred 2002, p. 1253-1266). It is so since it must be determined, generally, before production units are arrived at while definite production units will later on affect material purchases. However, decision making on sales is the most cumbersome tasks facing many organization’s executives. This is because it is tasking to predict, determine or estimate with potential customers’ demands, accuracy, as they are irrepressible factors external to a business. Considering, consequently, the relevance of sales on organization survival and the connection between sales and customers, it is convenient for organizations to engage in advertising programs that directly influence consumers’ decision when they are purchasing products. This is where brand management and advertising are relevant (John & Kenneth 2002, 455-486). Advertising is a division of the promotion mix that is one of the important 4ps in the concept of the marketing mix including place, product, price, and promotion. As a promotional approach, advertising serve as a crucial tool in the creation of product awareness and conditioning of the potential consumer’s mind to take ultimate purchase decision. The background of the study Advertising is noteworthy in any business operations across the globe. It is the ultimate determinant of consumer choice in many cases involving a selection of products. In the new era of globalization, advertising holds a staunch position within the highly competitive market (Masaki 2004). Advertising is generally a form of communication intending to persuade a particular audience (viewers, listeners or readers) to take action. It includes the product or service name as well as how that service or product could benefit the consumer therefore, persuading the potential customers to consume that particular brand (Fred 2002, p. 1253-1266; Donald 1999, p.299; Walter 2008, p. 88; Jacoby 2001, p. 234; Gordon 2006, p.206; Ronald 2003, p.20; David et al 2000, p.120; Morris 1999, p.199). Consumer behavior is strategic in any business or investment dealing with provision of products or services. Understanding advertising as having an influence on consumer choice of the respective services or products is mandatory for all organization or business institution (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). The knowledge on consumer behaviors helps businesses improve their respective marketing strategies by creating an understanding of various succulent issues for instance an understanding of consumer psychology in terms of how they reason, think, feel, and select between many available choices (brands, products). Understanding consumer behavior in advertising is also necessary in having the knowledge of the customer influence from his or her environment including signs, media, culture, and family (John & Kenneth 2002, 455-486; Lee, E 2000, p.98; Susan 1997, p.401; Mary 2003, p.46; Chester 2001, p.123; James 1999, p.68; Craig 2000, p.23; Andrew 1999, p.3; Lynn 1997, p.23). The impact of advertising on consumer choice also features on the limitations in consumer knowledge equally the information processing abilities, how that influences customer decisions as well as the overall marketing outcome (Robert 2008, p. 269-270). Understanding consumer motivation is particularly vital in assessing the impact of advertising on consumer choice (Liz 2004). This means decision strategies receive varying receptions from consumers because they differ between brands therefore, creating a difference on the level of interest of the consumer to that respective product (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). London features as one of the most volatile strong economic power points across the globe. It is an impulsive market with a broad and diversified range of consumers. This means that only the best and well-organized firms within the region prosper in the competitive field through using the best marketing strategies (Robert 2008, p. 269-270; Lee, E 2000, p.98; Susan 1997, p.401; Mary 2003, p.46; Chester 2001, p.123; James 1999, p.68; Craig 2000, p.23; Andrew 1999, p.3; Lynn 1997, p.23). Cosmetic products are of late gaining popularity globally and in many markets with the culture of beautification taking charge and influencing majority of people across the world borders (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). In London, the cosmetic products are picking drastically within the market and many people are valuing the products for beautification purposes. There is therefore, an increased demand of cosmetic products across London and an offshoot of many brands to satisfy consumer needs. In London, there are many brands competing in the cosmetic industry including Lamer, Givenchy, Channel, Estee Lauder, Christian Dior, D&G, Clarins, Shu Uemura, Yves Saint Laurent, and Lancome among many others. The brands are sizzling in providing the best and competing for the top position as the recognized and respected brand across London and in many other parts of the world. Brand marketing for each of the listed means reaching out to customers via all means to advertise the luxurious products and convincing the customer beyond every doubt to make a choice of the respective product from the company in the presence of many other upcoming and vibrant industries across London and globally. The success of each brand lies on advertising and formulation of the best strategies to reach consumers and influence them to identify with the respective brand (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). Nature of the problem Advertising has been the key of focus for all these brands with various strategies adopted for each brand including television, internet marketing, print media, and campaigns among many others (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). Deductions from the strategies adopted by the respective brand assess its popularity among the people across London and why some brands are volatile than others. There is an existing knowledge gap on advertising for respective brands therefore, creating the disparity in fiscal reports of each brand on profitability and prospective development. The 21st century has brought up well-informed consumers who know exactly what they want, how and when they precisely want it (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). It is therefore, a Herculean challenge for many companies even those providing cosmetic products to go in line with customers and not own decisions in production if they have to develop a positive and long lasting impact on consumer choice for cosmetic products among many available brands (Charlotte 2005; Liu 2008; Sheila 2008; David 2004; Sonia 2007; Dora 1999, p.89-98). Marketing in this case happens to venture as a rescue to the situation by incorporating new strategies. Following a shift in marketing strategies and consumer knowledge, the businesses and suppliers of cosmetic products across London have a challenge to shift and make the marketing better and increase the reach as well as win the day by developing a positive impact on consumer behavior. There is also a change in marketing strategies (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183) in many industries globally that calls for a change in the approach of many businesses. Cosmetic products industry is facing this momentous challenge with pressures to opening up to the new ventures of advertising in the 21st century in the pursuit of developing a strategic impact on consumer choice. The inception of the new strategies increases the cost of marketing (Charlotte 2005; Liu 2008; Sheila 2008; David 2004; Sonia 2007; Dora 1999, p.89-98) and a cost to the respective companies producing the cosmetic brands calling for better approaches to influence customers and still maximize on the profits. Technology has introduced Internet marketing, social marketing and many other forms of marketing that the brands need to instill in their marketing strategies if they are to win the day on consumer influence. Advertising has experienced five principal stages of development in this new century therefore, changing the influence it has on consumer choice (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). The stages include domestic, international, export, multi-national, and global. Global advertisement is the new version of advertising (Brian 1990, p.19; Eric 1996, p.98; Lynn 2000, p.157; Carolyn 2000, p.78; Guilford 1998, p.40). It creates four competing, business objectives, which must balance in the process of developing worldwide advertising including building a brand that speaks with one voice globally, economies of scale development in the creative process, maximization of local effectiveness of ads, as well as increasing the brand’s speed of implementation. This has been the foremost challenge facing cosmetic brands produced in London therefore, slowing down the impact their respective advertisement has on consumer choice. It is one of the elements creating a difference among consumers on the preference of respective products. Research Aims This research will be reflecting on advertising as a means of creating an impact on consumer choice. It will work under the bias of cosmetic products in London, and how adverting has had an influence in the selection of a given product from a list of ten brands including Lamer, Givenchy, Channel, Estee Lauder, Christian Dior, D&G, Clarins, Shu Uemura, Yves Saint Laurent, and Lancome. The research will be looking into the success of the respective cosmetic brands as well as how marketing has contributed to this success. A point to note is the reflection of the research on various mediums of advertising used across London and the level at which each advertising approach has on respective consumers of cosmetic brands. It will be prospecting to evaluate the successful and failed consumer brands across London and the strategies they implement in advertising. The research will also be seeking to provide a recommendation for the cosmetic brands in London applicable in the advertising industry to facilitate their respective approaches in maintaining success among other brands as well as maximizing profits over the extended operation period. The research will also seek to establish the extension of influence on the ages of particular groups by advertisement on their choices of cosmetic products. Research Hypothesis The hypothesis for this research is that “advertising has a great impact on consumer choice across London, on the luxury cosmetic products they chose.” The hypothesis clearly stipulates and enhances the statement that advertising is an indispensable element of any business for maximization of sales and profits. It also supports the concept that consumer choice is flexible and changes with time relating to influences from advertisements from different media. Research questions This research will reflect on three major questions all in evaluation of the influence that advertising has on consumer choice. The questions include: a) What is the relevance of 21st century advertising on consumer choice b) What is an appropriate approach of advertising in the 21st century c) What is the competitive advantage of strategic advertising on influencing consumer choice The research objectives The research objectives draw on the research questions in assessing the advertising influence of advertising on consumer behaviors. They include: a) To assess the effectiveness of the 21st century advertising in influencing consumer choice b) To assess the efficacy of different approaches of advertising c) To verify the competitive advantage of strategic advertising on influencing consumer choice Literature Review Advertising, public relations, and sales promotion are mass-communication tools precisely available to marketers. As its suggestion by name, mass communication generally uses a similar message for every involved party in an audience. The tools of mass communication trade off the benefit of personal selling (Bibek 2003, 131-144). They develop a chance to tailor significance to each possibility as well as the benefit of reaching many consumers at a lower cost per consumer. Today advertising definitions abound. In definition, it might be a communication process, an economic as well as a social process, a marketing process, a public relations process or relatively persuasion and information process. Bibek (2003, 131-144) contemplated advertising from the functional perspectives, therefore, defining it as a non-personal, paid communication through several media by business firms, individuals and non-profit organization, who are in varying ways identified in the message used in advertising and who hope to give information or persuade members of a specific audience. John & Kenneth (2002, 455-486) argue that advertising is of use in establishing a basic awareness of the brand or service to the potential customer’s mind and in building up knowledge about the same. Donald (2000, p. 179–183) views advertising as among the four cardinal tools that organizations use to direct, persuasive communications targeting the buyers as well as public, noting, “It incorporates of non-personal communication forms conducted via paid media using clear sponsorship”. From his argument, the reason of advertising is the enhancement of potential buyers’ choice responses to the company and its offering, with an emphasis that “it seeks doing this to provide information, through channeling individual desire, and by a supply of reasons for the preference of a particular company’s offer. While texting on advertising scope and nature, Bibek (2003, 131-144) succinctly encapsulate all advertising as with four distinct features including visual or verbal message, an identified sponsor, media delivery, and payment by the media sponsor. Summarizing the discussions above a conclusion is that t “advertising consist of all the businesses activities involved in the presentation of non-personal, paid-for message, and sponsor-identified, to the audience” Advertising correlates highly with Consumer Behavior (John & Kenneth 2002, 455-486). The primary mission of an advertiser is reaching prospective customers as well as influencing their attitudes, awareness, and buying behavior. Advertisers spend a lot of money in an attempt of keeping individuals who have an interest in their products. To succeed, advertisers need to understand the things that make potential customers precisely behave in the actual way they do (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). The goals of the advertisers is to get adequate, relevant market data in developing accurate profiles of respective buyers-to-find the group for consumer communications. This generally involves the survey of behavior of consumers to understand the emotional and mental processes as well as the physical activities of consumers purchasing and using goods and services in satisfying particular requirements and wants (Donald 2000, p. 179–183). Donald (2000, p. 179–183) illustrated that the principal purpose of behavior analysis is explaining why consumers precisely act in meticulous ways under specific circumstances. It tries determining the factors influencing consumer behavior, particularly the economic, psychological and social aspects that indicate the highly favored marketing mix, which management must select. Consumer behavior analysis aids in determining the direction that individual behavior is likely to make or give preferred trends in the development of products, alternative communication method attributes among others. Consumer behaviors analysis looks at the individual as another relevant variable in the marketing cycle, a variable, which cannot succumb to control and that interprets the service or product not only in physical characteristics terms, but also in the image context as per the social and psychological make-up of the consumer. Economic theory seeks the establishment of relationships between sales achieved, selling prices, and consumer’s income; in the same way, advertising expenditure frequently compares with sales. On other instances, financial accounting principles apply to develop an analysis of the losses and profits. There are many ways through which advertising influence the behavior of brand preference in consumers (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). Under the circumstances, the importance of the consumer’s perceptions, motivations, attitudes and beliefs is ignored largely. The consumer is in assumption as being “rational” that is, reacting in the direction, which could be a suggestion of the economic theory and other financial principles. However, it is apparent that individual behaviors do not fall into the respective expected patterns. It is for the decisive reasons that consumer behavior analysis is general in practice as another tool of assessing the complexities of variant marketing operations. The proliferation of cosmetic assorted brands in London leads to the cutthroat competition owing to the increasing market share witnessed currently in the operations of the respective brand producers. Today, in London, there are more than fifteen prominent brands of cosmetic products both local and foreign, from which they compete to develop market leadership. There are also many other low-price and upcoming localized brands (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183) of the cosmetic products springing up around the region while others orient from the exports from other countries. Existing and popular cosmetic brands, therefore, are currently facing intense competition from the “affordable” localized brands in terms of prices that the low-income groups prefer. It is hence, imperative for the established brands like Lamer, Givenchy, Channel, Estee Lauder, Christian Dior, D&G, Clarins, Shu Uemura, Yves Saint Laurent, and Lancome among others to try to employ brilliant branding and advertisement strategies in the event of influencing consumers’ behaviors when asserting their choices during their purchases. Given the competitive cosmetic brands sub sector of London economy and the high advertising potential in helping respective companies realize as well as retain their top position this paper will examine the theoretical concepts relating to advertising influence on customer choice of products. Theoretical Framework The research will be directly basing in indifference theory. The theory develops its argument on the determinants of individual consumer demand. In particular, it discusses the utility concept as well as how organizations can use this in gaining insights into the way consumers choose the mode of allocating their spending. The theory utilizes the concept of utility. The concept argues that all units of a similar product are particularly identical for instance; one tin of baked beans is similar to a tin raw beans. However, the customer satisfaction per unit of that particular product is what matters and is not the same (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183). A good example from the concept is that when one is hungry he or she gets downright satisfaction precisely from a nutritious meal but the same person does not have a similar level of satisfaction by taking a second identical meal (John & Kenneth 2002, 455-486). This concept is of suggestion that the satisfaction of a customer varies depending on the number of times the consumer happens to use the product. Consumer choice is therefore; direct to the satisfaction in the 21st century meaning that the businesses must develop reliable advertisement strategies to develop the will of the customer to seek for the product. In the impact of adverting of luxury cosmetic brands on consumer, choice in London the utility concept applies equally well. This is where the advertising helps build the utility level of a given brand and facilitate its development and preference over the other brands (Donald 2000, p. 179–183). The research paper reflects also on Parfitt & Collins Model of advertising explaining advertising case as expounding on marketing strategies adopted of late by the respective company. The model is essential in predicting the ultimate market share precisely for new repeat-purchase products for consumers using input data from respective consumer panels (John & Kenneth 2002, 455-486). Internet marketing (Lester 2004, p. 537-562; John & Kenneth 2002, p. 455-486; Donald 2000, p. 179–183) has been essential in this case for the respective cosmetic brands in London where data on shoppers list is available highlighting some of the most sought products and aiding the brands in providing the same in large quantity. The model demands actual market data that is available from the company’s Internet. The research plan The research will take six weeks of study in evaluating the impact that advertising has on consumer choice. The table below is the representation of the research plan Period Activity Outcome Processes Week 1 Literature review Contribution by various scholars Content analysis Week 2 Sampling Research sample Random sampling Week 3 Data collection Data on the topic Interviews, questionnaires Week 4 Data analysis Research findings Qualitative data analysis Week 5 Conclusion and recommendations Evidence of hypothesis Evaluating hypothesis Week 6 Presentation of findings Data presentation Data presentation Data collection methods This research will use qualitative data collection techniques. It will combine the use of three interview types for a comprehensive data collection on the topic. Rogers and Bogey (1996, p. 52) said that, "Without a doubt, interviews are the most used data collection method when dealing with a research highly rich in qualitative data." Many authors have classified qualitative interviews giving the three types including structured interviews, semi-structured interviews and unstructured interviews. The three will be of use in this research to facilitate the entire process of data collection (Becker 2003, p.53-71). First, in the research unstructured interviews (Rogers 1996, p. 50-87) will be of use to help the respondents gain an understanding of the topic at hand and relax in creating a favorable environment for him or her to provide relevant data for the study. The unstructured questionnaires also known as informal, conversational interviews will be of value in research in broadening the ambit of the topic to open up a discussion. The interviews of this kind do not have predetermined questions therefore, the researchers and interviewees will start it over by talking freely on anything even some of the issues out of topic. This will be a form of rapport building in the sense that, the respondents will feel free to continue with the research. Unstructured interviews in this study will also incorporate participatory observation in the evaluation of the true feelings and the frankness of the respondents so that in situations where the answers do not seem convincing, the researcher will probe for more. It will involve the skills of the researchers who will generate and concurrently develop questions from the interviewees last segmented talk. Structured interviews (Becker 2003, p.53-71) will then be of use in the process of the interview for data collection. These are also known as standardized interviews. They will be of value in providing genuine data on the impact of advertising on consumer behavior. In this research, structured interviews will be of use in asking the same questions as from the unstructured interviews but this time in a more precise manner. The structured interviews in this study are convenient to help the researcher compare different interviewees' answers when conducting the analysis of data to come up with inferences of the findings particular on the same questions to the respondents. Semi-structured interviews (Rogers 1996, p. 50-87) will be a component of this research at the end of the interview. This will be like a guide to verify the information that the respondents will have provided on the topic of advertisement impact on consumer choice. Though they feature mostly in between the last two discussed interviews, the said interviews will be completing the study where they will even develop and enhance a chance of the respondents to make suggestions on the topic of consumer choice relating to advertisement. According to (Patton, 1990, p. 287), using the three interview types in a given study makes it better and fulfilling in providing full information and unbiased generalizations on any topic especially involving human behaviors. Questionnaires (Becker 2003, p.53-71) will also be a valuable information source for this study. The data in use for the study on the impact of advertising of luxury cosmetic brands on consumer choice in London will emanate from two basic sources. Primary and Secondary data are exceedingly broad sources for the research data on this kind of research that details qualitative data. However, to narrow down the data and make it authentic for the study, the collection of data will be through structured questionnaires. Ten copies of the questionnaire with structured questions (Creswell 2003) will be administered on the members of the respective sample of consumers for cosmetic products through researches who are trained personnel. The questionnaires administration will be around the city of London particularly for the people identified as customers from the cosmetic shops and prospected to ever watch, listen or read advertisements for the same products. However, there is an allowance of five additional questionnaires allowing the probability for no return where some of the consumers might not return the questionnaires. This is to allow complete ten completed questionnaires relevant for data provision on the respective study and allowing easy analysis. Sampling Method This research will use probability-sampling scheme (Rogers 1996, p. 50-87). This is the sampling type where every unit in the selected population has an equal inclusion chance in the established sample. The probability can be determined accurately through this type of sampling. In research on the impact of advertising of luxury cosmetic brands on consumer choice in London, the sampling technique will be of value combining these traits and making it possible for unbiased production of estimates of population totals, through weighting sampled units as per their selection probability. The target population in this research is the consumers who ever bought cosmetics products with a bias on the 10 brands including Lamer, Givenchy, Channel, Estee Lauder, Christian Dior, D&G, Clarins, Shu Uemura, Yves Saint Laurent, and Lancome to identify some of the impact advertising had in their pursuit of making a choice for a particular brand. The research sampling will be estimating the number of consumers influenced by advertising of the respective brand when making their choice in respective shopping arenas (shops, mall, supermarkets, and stores). The research will involve visiting various regions around London to establish potential customers of respective cosmetic products. It will entail visiting shopping areas where consumers go for cosmetic products and selecting individuals randomly and allocating them a number. The research will then follow up to interview the individual selected to find out the preference or choice made for their cosmetic product and establish whether advertising has anything to do with it. Simple Random Sampling will be the specific method used to sample members of the sample in this research since it also saves time and diversifies the information obtained from the researches. Research instruments The research will use questionnaires and interviews as the research tools appropriate in collecting qualitative data on this topic. Questionnaire 1. Do you use luxury cosmetic brands? If yes which brand? Why do you choose this brand? 2. How often do you purchase luxury cosmetic brands? 3. Have you ever read an advert on luxury cosmetic brands? If yes, which advert? 4. Did the advert have any influence in your choice for luxury cosmetic brands? 5. What do you look for in an advert for luxury cosmetic brands? Why do you look for it? Interview questions 1. Advertisements for luxury cosmetic brands influence consumer choice Strongly agree Agree Neither agrees nor disagrees Strongly disagrees Disagree 2. Luxury cosmetic brands without adverts experience less sales Strongly agree Agree Neither agrees nor disagrees Strongly disagrees Disagree 3. There is a correlation between age and advertising for cosmetic products Strongly agree Agree Neither agrees nor disagrees Strongly disagrees Disagree These questions will be the guiding questions for the interviews where each answer provided by the respondent will be a chance to probe further on why the choice of a particular answer between the five categories. This will enable further explanation of the details on consumer choice as influenced by advertising. Methods of data analysis Qualitative research (Creswell 2003) generally makes use of qualitative data analysis (QDA) in the process of analyzing the interview transcripts, text, photographs, field notes and art of observations among other data collected in the field during research (Rogers 1996, p. 50-87). In this case, study will involve interview transcripts completed and presented by individuals of the sample on the topic of impact of adverting on consumer choice. Qualitative research analysis is a powerful approach of describing and explaining a given social phenomena. The respective categories in this research will be derived inductively meaning that it will be obtained from the collected data gradually. The process of data analysis for this research will involve stages that feature in distinguished phases including data cleaning, initial data analysis (data quality assessment), main data analysis (answering the original study question), final data analysis (crucial additional report). Data cleaning (Becker 2003, p.53-71) in this research is a relevant procedure that will involve the inspection of data collected and possibly correcting the erroneous data. There is a probability that the interviews will be short, and consumers might be in a hurry when filling the questionnaires and the interview questions therefore, cross checking the information is necessary (Rogers 1996, p. 50-87). However, even with the corrections, the original information will be stored for reference in future analysis. In the Initial data analysis, the research will involve the selective answering of some questions from the research through a light assessment of the respondent’s views. A process of checking data in order to make the findings, conclusions and recommendations authentic will follow this. Constant comparative analysis will be the ultimate method used in analysis and presentation data from this study. The type of qualitative data analysis is of origin from the grounded theory methodology developed by Glaser and Strauss. This strategy will involve taking a piece of data (one statement, one interview, one theme) and making a comparison of the data with all the other collected data that may be generally similar or precisely different in developing conceptualizations of the probable relations between the respective pieces of data. In this research, it will involve the comparison of respondent’s views as to whether advertising for the ten cosmetic brands has any effect on their decisions when making a choice as to which cosmetic product to go for. It will compare at least two individual respondents (Rogers 1996, p. 50-87) with a similar experience of an advert from the same brand and how that has an influence on what they choose in the stores as the cosmetic product of choice. The researcher will be seeking to know why the difference exists in what consumers choose among the ten brands of cosmetic products yet they are subject to the same adverts. Constant comparison analysis is suited well to grounded theory in the qualitative analysis because this design is of use specifically to study the human phenomena that the researcher assumes, which fundamental social processes are an explanation of something regarding human behavior and experience. Description and justification of research methodology The research methodology is appropriate for this study in bringing out the true picture of cosmetic brands in London as well as how their respective advertising strategies have facilitated an impact on consumer choice. It entails strong points of providing information and expounds further through derivation of qualitative data from the consumers. It will be the ideal methodology of completing the research appropriately and generating findings on the impact of advertising of luxury cosmetic brands on consumer choice in London. 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