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BRUNEL BUSINESS SCHOOL
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Module Code MG 3123
Module Title Issues and Controversies in Marketing Project
Module leader Geraldine Cohen
Student ID number
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MG 3123 Issues and Controversies in Marketing
Project
Chinese female consumers erceived "rand value
and "rand loyalty in the cosmetic industry
Student #ame$
Student #um"er$
%egree Course$ &usiness and Management
'Marketing(
%eartment$ &runel &usiness School
Suervisor$ %orothy )en
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Su"mission %ate$ *thMarch+ 2,13
-ord Count$ .*./
0"stract
This research study aims to understand Chinese female consumers !ercei"ed #rand
"alue and ho$ it influences #rand loyalty in the cosmetic industry% Since Chinas
!ros!erous cosmetic mar&et !resents com!anies $ith many desira#le o!!ortunities'
this !ro(ect tries to !roduce a su#stantial insi)ht on ho$ to im!ro"e #rand loyalty #y
understandin) Chinese consumers !ercei"ed #rand "alue in a multi*dimensional "ie$%
+ue to the fact that consumers !ercei"ed "alue has "ery often #een narro$ly
inter!reted in terms of money !aradi)m' as merely a trade*off #et$een a !roducts
,uality and !rice' this research attem!ts to measure it in a multi*dimensional $ays%
S$eeney and Soutar -2..1/s multi*dimensional frame$or& is ado!ted in the research
to measure consumers !ercei"ed #rand "alue of a !roduct $hich include its ,uality'
money' emotional as $ell as social "alues% 0s for the measurement of consumers
#rand loyalty' eithaml' Leonard and arasuraman -1334/s frame$or& is used $hichincludes #oth fa"oura#le and unfa"oura#le #eha"ioural intentions% 5a"oura#le
#eha"ioural intention is measured in terms of !urchase intention' !rice insensiti"ity
and $ord*of*mouth communication $hile unfa"oura#le #eha"ioural intention is
measured #y com!lainin) #eha"iour of consumers%
rimary research data is collected #y conductin) online ,uestionnaire sur"eys on
around t$o hundred Chinese female consumers% Collected data is then analysed #y
SSS and !resented in forms of ta#les and fi)ures for future inter!retations% Researchfindin)s are discussed and #oth academic im!lications as $ell as mar&etin)
im!lications are de"elo!ed accordin)ly% Re)ardin) the limitations of this research and
the result !roduced' recommendations are )i"en for future research%
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0cknoledgements
This !ro(ect has #rou)ht me a lot of e7citements' challen)es and most im!ortantly' a
!recious learnin) o!!ortunity% 5irst of all' I $ould li&e to dedicate my s!ecial
)ratitude to my su!er"isor' +orothy 8en% I am truly )rateful for all your &indness and
su!!ort throu)hout the !ro(ect% Than& you for )i"in) me useful ad"ices and constant
encoura)ements% 9ithout your )uidance' this !ro(ect $ill not #e !ossi#le to com!lete
successfully%
Secondly' I o$e my )ratitude to my dear !arents $ho ha"e al$ays #een there for me
and sho$ered me $ith their lo"e% 0lso' I $ould li&e to than& all of my friends $ho
hel!ed me o"ercome "arious challen)es encountered in this assi)nment% Last #ut not
least' I $ould li&e to dedicate a #i) than& you to all those res!ondents $ho &indly
!artici!ated in com!letin) the research ,uestionnaires%
:
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Content a)e a)e num#er
Chapter One: Introduction---------------------------------------------------------- %3
1%1 Research Conte7t ;Chinas cosmetic mar&et***********************************% 3
1%2 Research ro#lem and Research
2%= ?easurement of !ercei"ed #rand "alue on loyalty****************************%13
2%=%1 5unctional "alue -@ualityA erformance/ *****************************%13
2%=%2 5unctional "alue -riceA alue for money/ ***************************%2.
2%=%6 Emotional "alue***********************************************************%212%=%: Social "alue****************************************************************%22
Chapter Three: Methodology-------------------------------------------------------P.2
6%1 Introduction**************************************************************************%2=
6%2 ?ar&etin) research*****************************************************************%2=
6%2%1 Research !hiloso!hy********************************************************%2=
6%2%2 Research a!!roach**********************************************************%2=
6%2%6 Research desi)n*************************************************************%24
6%2%: Research strate)y************************************************************%24
=
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6%2%= rimary and Secondary research ******************************************%2
6%2%4 @uantitati"e and @ualitati"e research ************************************%2
6%6 rimary data collection*************************************************************%2
6%6%1 @uestionnaire desi)n*********************************************************%2>
6%6%2 Sam!lin)***************************************************************************%2>
6%6%6 alidity and Relia#ility***********************************************************%2>
6%6%: Research Limitations***************************************************************%23
6%: Ethical consideration********************************************************************%23
Chapter !our: Re"earch !inding"# $naly"i" and %i"cu""ion-----------------------P.&'
:%1 Introduction*******************************************************************************%6.
:%2 +ata consistency and relia#ility *******************************************************%6.
:%6 +escri!ti"e analysis**********************************************************************%61
:%: Statistical analysis results***************************************************************%66
:%:%1 ?ean and standard de"iation ****************************************************%66
:%:%2 0NO0 analysis result***********************************************************%6=
:%:%6 Correlation analysis result********************************************************%63
:%:%: Re)ression analysis result********************************************************%:.
:%:%= Testin) of research hy!othesis***************************************************%::
:%= Research findin)s analysis and discussion*******************************************%:4:%=%1 @uality******************************************************************************%:4
:%=%2 rice*********************************************************************************%:>
:%=%6 Emotional***************************************************************************
%=.
:%=%: Social********************************************************************************
%=1
:%=%= Beha"ioural intentions************************************************************%=6
Chapter !ive: Conclu"ion-----------------------------------------------------------------P.
=%1 Conclusion********************************************************************************%==
=%2 ?ar&etin) Im!lications******************************************************************
%==
=%6 0cademic Im!lications******************************************************************%=4
=%: Research limitations and 5uture Research*******************************************%=
Chapter (i): Re*erence"-------------------------------------------------------------------P.+
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Chapter (even: $ppendice"---------------------------------------------------------------P.,
0!!endi7 1D @uestionnaire******************************************************************%4=
0!!endi7 2D @uestionnaire -Chinese "ersion/ *******************************************%4
0!!endi7 6D artici!ants Information Sheet*********************************************%43
0!!endi7 :D Consistency test out!ut*******************************************************%.
0!!endi7 =D Relia#ility test out!ut*********************************************************%2
0!!endi7 4D 0NO0 analysis out!ut******************************************************%=
0!!endi7 D Re)ression analysis out!ut**************************************************%>1
0!!endi7 >D Correlation analysis**********************************************************%>
Li"t o* Tale"
Ta#le 1D ?a(or layers in Chinas cosmetic mar&et************************************%1.
Ta#le 2D Hy!othesis H1*H:****************************************************************%2.
Ta#le 6D Hy!othesis H=* H>***************************************************************%21
Ta#le :D Hy!othesis H3* H12**************************************************************%22
Ta#le =D Hy!othesis H16*H14*************************************************************%26
Ta#le 4D Relia#ility test result**************************************************************%6.
Ta#le D 5re,uency of !artici!ants a)e***************************************************%61
Ta#le >D 5re,uency of !artici!ants monthly income***********************************%62
Ta#le 3D 5re,uency of !artici!ants last !urchased !roduct cate)ory*****************%62
Ta#le 1.D ercei"ed #rand "alues mean and standard de"iation**********************%66Ta#le 11D Brand loyaltys mean and standard de"iation********************************%6:
Ta#le 12D +ifferent a)e )rou!s and !ercei"ed #rand "alue****************************%6=
Ta#le 16D +ifferent monthly income and !ercei"ed #and "alue***********************%64
Ta#le 1:D +ifferent !roduct cate)ories and !ercei"ed #rand "alue********************%6>
Ta#le 1=D Re)ression analysisD urchase intention**************************************%:.
Ta#le 14D Re)ression analysisD rice insensiti"ity***************************************%:1
Ta#le 1D Re)ression analysisD 9ord of mouth******************************************%:2
Ta#le 1>D Re)ression analysisD Com!lainin) #eha"iour********************************%:6Ta#le 13D Testin) of research hy!otheses*************************************************%::
Li"t o* *igure"
5i)ure 1D The research frame$or&*********************************************************%2:
5i)ure 2D Three ty!es of research desi)ns************************************************%24
5i)ure 6D ercei"ed #rand "alue and different a)e )rou!s*****************************%6=
5i)ure :D ercei"ed #rand "alue and different monthly income***********************%6
5i)ure =D ercei"ed #rand "alue and different !roduct cate)ories*********************%6>
5i)ure 4D Re)ression analysisD urchase intention**************************************%:.
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5i)ure D Re)ression analysisD rice insensiti"ity***************************************%:1
5i)ure >D Re)ression analysisD 9ord of mouth******************************************%:2
5i)ure 3D Re)ression analysisD Com!lainin) #eha"iour********************************%:6
5i)ure 1.D Testin) of research frame$or&************************************************%:6
5i)ure 11D Testin) of hy!otheses H1' H2 H6******************************************%:4
5i)ure 12D Testin) of hy!othesis H:*******************************************************%:4
5i)ure 16D Testin) of hy!otheses H=' H4 H******************************************%:>
5i)ure 1:D Testin) of hy!othesis H>*******************************************************%:>
5i)ure 1=D Testin) of hy!otheses H3' H1. H11***************************************%=.
5i)ure 14D Testin) of hy!othesis H12******************************************************%=.
5i)ure 1D Testin) of hy!otheses H16' H1: H1=*************************************%=1
5i)ure 1>D Testin) of hy!othesis H14******************************************************%=2
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Chapter One: Introduction
1.1 Re"earch Conte)t China/" co"0etic 0aret
China has #ecome the second*lar)est economy in the $orld and the most im!ortant
emer)in) consumer mar&et $ith a consumer !o!ulation of nearly 1%6 #illion -The
Economist' 2.1./% Chinas cosmetic mar&et sustained dynamic )ro$th des!ite )lo#al
financial meltdo$n throu)hout the last fe$ years% Ra!id economic de"elo!ment'
)ro$in) middle class consumers and tradin)*u! trends contri#uted to the continuous
)ro$th of Chinas cosmetic mar&et -Euromonitor International 2.11/% 0ccordin) to
the National Bureau of Statistics of China -NBS/' retail sales of cosmetic of
enter!rises $ith annual sales of fi"e million yuan or a#o"e and $ith an em!loyment
of or o"er si7ty reached 11.%6 #illion yuan in 2.11 $hich sho$s a drastic increase ascom!ared to :>%> #illion yuan in 2.. -NBS 2.12/% The )ro$th of Chinas cosmetic
retail "alue accelerated in 2.11 $ith 1>%year*on*year )ro$th -NBS 2.12/%
China National Commercial Information Centre -CNCIC 2.11 cited in Li and 5un)
2.12/ recorded that cosmetic retail sales rose #y 2>%2F year*on*year in third*tier
cities in 2.1.' faster than those in the first*tier -1=%>F/ and second*tier cities -1%.F/%
0ccordin) to Li and 5un) -2.12/' cosmetics retail sales in lo$er*tier cities of Chinaare fast )ro$in) $hile first*tier and second* tier cities ca!tured a #i))er share of the
mar&et%
+ata #y National Bureau of Statistics of China -NBS/ sho$ that the retail !rice inde7
of cosmetics in China has risen to a#o"e 1.1%4 since 0u)ust 2.11 -NBS 2.12/%
0lthou)h the ta7 le"ied on im!orted cosmetics has #een reduced from 4%=F to =F
since 1
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Referrin) to China National Commercial Information Centre -CNCIC 2.11A Li and
5un) 2.12/' the to! ten !layers in the ma(or cosmetic su#*sectors $hich includes
sham!oos and conditioners' other hair care !roducts' s&in care !roducts' colour
cosmetics and fra)rances achie"ed o"er 4=F of the mar&et share in ma(or de!artment
stores in 2.1.% The ta#le #elo$ sho$s findin)s from CNCIC -2.11/s mar&et
research%
Ta#le 1D
?a(or distri#ution channels for cosmetics in China include de!artment stores'
su!ermar&etsA hy!ermar&ets' !rofessional stores' s!ecialty stores' internet retailin)'
!harmacies and #eauty !arlors -Li and 5un) 2.12/% +e!artment stores offer a $ide
ran)e of merchandises and !ro"ide one*sto! sho!!in) e7!erience for consumers%
Su!ermar&ets are crucial channels es!ecially for lo$*ran)e to mid*ran)e cosmetics
!roducts #ut hi)h*end cosmetics #rands% rofessional stores are Gone*sto! sho! forcustomers to sho! for cosmetics% Some famous e7am!les include Hon) on) #ased
9atsons and Sasa' 5rance*#ased Se!hora and China*#ased ialen and Cosmart%
S!ecialty stores !ro"ide consumers $ith hi)h ,uality ser"ices and standardiJed !rices%
Some !o!ular cosmetic com!anies such as Shiseido' Lancome' Estee Lauder and
Clini,ue ha"e de"elo!ed their o$n online stores durin) these fe$ years -Li and 5un)
2.12/%
1.2 Re"earch Prole0 and Re"earch u"ti*ication
0lthou)h consumers #rand "alue has #een a $idely researched to!ic' many !rior
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researches inclined to inter!ret consumers !ercei"ed #rand "alue in an
unidimensional $ay -Cronin and Taylor' 1332K 0nderson and Sulli"an' 133./ or in
terms of money !aradi)m -?onroe' 133.K ?ath$ic&' Naresh and Ri)don' 2..1/'
instead of from a multi*dimensional "ie$ $hich is hi)hly su))ested #y Sheth'
Ne$man and ross -1331/ as $ell as S$eeney and Soutar -2..1/%
It seems that no !rior researches ha"e #een done on multi*dimensional "ie$ of female
consumers !ercei"ed #rand "alue in the cosmetic industry' much less in the mar&et of
China% 0!art from that' althou)h the o!!ortunities !resented #y the !ros!erous
Chinese cosmetic mar&et are $ell*&no$n' "ery fe$ researches focus on Chinese
consumers multi*dimensional !ercei"ed #rand "alue%
Other than that' ihlstrom and Brush -2..>/ did a similar research a#out the influence
of consumers !ercei"ed #rand "alue on their #eha"ioural intentions in the mo#ile
ser"ice industry% Their research frame$or& ho$e"er only includes fa"oura#le
#eha"ioural intentions% 0s "aria#les and lin&a)es !redictin) !ositi"e outcomes may #e
asymmetrically related to those that !redict consumers disloyalty -eithaml' Leonard
and arasuraman' 1334/' it is necessary to ta&e ne)ati"e #eha"ioural intentions into
considerations for measurin) #rand loyalty% Hence' this research includes #othfa"oura#le and unfa"oura#le #eha"ioural intentions into the research frame$or& for
#etter measurement of #rand loyalty%
1.& Re"earch $i0"
Re)ardin) to the fact that cosmetic mar&et in China is #loomin)' $hich !resents a lotof o!!ortunities to cosmetic com!anies in the mar&et% Since the a#ility to deli"er
su!erior customer "alue is critical source of com!etiti"e ad"anta)e -e%)% Ra"ald and
ronroos' 1334K 9oodruff 133/ and an im!ortant factor for achie"in) com!anys
success -e%)% eithaml et al%' 1334K arasuraman' 133/' this re!ort aims to study the
Chinese female consumers !ercei"ed #rand "alue as $ell as its influence on #rand
loyalty in the cosmetic industry%
1.3 Re"earch O4ective"
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O#(ecti"e1D To study Chinese female consumers !ercei"ed #rand "alue in the
cosmetic industry
O#(ecti"e2D To study the influence of Chinese female consumers !ercei"ed #rand
"alue on #rand loyalty in the cosmetic industry
1. Chapter Overview
In cha!ter one' the aims and o#(ecti"es of this research are clearly !resented alon)
$ith information a#out the research conte7t as $ell as discussion a#out literature )a!s
found% Cha!ter t$o contains literature collected from !re"ious research on the to!ics
of Chinese consumers' consumers !ercei"ed #rand "alue and consumers #rand
loyalty% It also includes the research frame$or& used for measurement of !ercei"ed
#rand "alue on loyalty% Research !hiloso!hy' a!!roach' desi)n and strate)y used are
discussed $ith (ustifications in cha!ter three% Research method used for !rimary data
collection' research limitations as $ell as ethical considerations are also mentioned in
this section% In cha!ter four' the results !roduced #y analysin) research findin)s are
!resented in forms of ta#les and fi)ures% The results re)ardin) the o#(ecti"es and
hy!otheses of the research are discussed% Conclusions and recommendations are!resented in cha!ter fi"e% This includes a #rief summary of research findin)s'
mar&etin) im!lications as $ell as recommendations for future research re)ardin) the
limitations of this research%
Chapter Two: Literature Review
2.1 Chine"e con"u0er"
0ccordin) to a cross*cultural research a#out East 0sian female customer "alue
!erce!tions for cosmetic !roducts -Huan) and Tai' 2..6/' Chinese female consumers
are more concerned a#out the intrinsic attri#utes than e7trinsic attri#utes of cosmetic
!roducts% 0mon) "arious intrinsic attri#utes of all cosmetic !roducts' Gsensiti"e or
aller)ic s&in condition as $ell as Gnatural in)redients are the t$o most "alued
"aria#les rated #y Chinese female consumers -Huan) and Tai' 2..6/%
0mon) all of the e7trinsic attri#utes of cosmetic !roducts' G!rice and G#rand name
are the t$o most im!ortant "aria#les to Chinese female consumers -Huan) and Tai'
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2..6/% 0ccordin) to Huan) and Tais -2..6/ research findin)' #rand consciousness in
terms of its #rand name of a cosmetic !roduct is rated to #e more im!ortant than its
country of ori)in% Ho$e"er' a research done #y HT+C -2.12/ sho$s that the
country $here a !roducts certificate is issued has a si)nificant influence on Chinese
consumers confidence to$ards the !roduct% Its findin)s sho$ that >3F res!ondents
had confidence in international !roduct certificates $hile :2F had confidence in
mainland China !roduct certificates%
2.1.1 Cultural in*luence on Chine"e con"u0er"/ perceived rand value and
ehavioural intention
Hofstede and Hofstede -2..=/ state that Chinese hi)hly !ronounced lon)*term
orientation deri"es from Confucianism $hich stron)ly influenced China% They claim
that Chinese consumers tend to care more a#out relationshi!s% Chinese consumers are
more conscious of the relational s$itchin) costs -Burnham et al%' 2..6/ $hich denote
the !sycholo)ical #arriers to s$itchin) !ro"iders caused #y the fear of dama)in)
!ersonal relationshi!s $ith staff and !eer consumers than consumers from other
cultural #ac&)rounds -5ran&' 0#ulaiti and En&a$a' 2.12/%
8e' Bose and elton -2.11/s research su))ests that Chinese consumers #rand
!erce!tions and #rand choice are hi)hly connected to their self*conce!t% 0ccordin) toself*con)ruity theory -Sir)y' 13>2/' consumers !refer certain !roducts or #rands that
are consistent $ith their self*ima)e and those $hich can enhance their self*ima)e%
T$o im!ortant self*conce!t moti"es are self consistency and self*esteem% In other
$ords' certain !roducts and #rands ser"e as mirrors' allo$in) consumers to see
!ositi"e reflections of them sel"es and !resent the !ositi"e side of self to others
-Sir)y' 13>2/%
The im!act of Chinese consumers self*conce!t on their #rand !erce!tions and #rand
choice are su!!orted #y some !rior research studies% He and ?u&her(ee -2../ stated
that Chinese consumers attitudes and store loyalty are dri"en #y self consistence as
$ell as social confirmation% 9an) et al% -2..3/ su))est that self*ima)e con)ruence
$ith !roduct and com!any*#rand !ersonality !ositi"ely affects !urchase intention%
Their research su))ests that Chinese consumers use name #rands as a su!erior "ehicle
for self e7!ression% 9hen they !ercei"e con)ruence #et$een their self*ima)e and
#rand !ersonality' they tend to ha"e stron) !urchase intentions to$ard the #rand%
Eisin)erich and Ru#era -2.1./ found that self*#rand rele"ance is correlated to
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Chinese consumers #rand commitment% In short' these researches su!!ort the
corres!ondence #et$een self*conce!t and #rand !erce!tions in the Chinese conte7t%
Chinese consumers #rand !erce!tions and #rand choice are #elie"ed to #e hi)hly
influenced #y their cultural #ac&)rounds% Chinese consumers seemed to )et cau)ht in
the middle of the continuum #et$een follo$in) the eastern collecti"ist tradition $hich
hi)hli)hts the im!ortance of conformance as an im!ortant as!ect of self and
reco)nisin) their need for uni,ueness as an indi"idual -8e' Bose and eltons 2.11/%
Liao and 9an) -2..3/ reco)nised a contradiction across China% Referrin) to their
findin)s' althou)h some Chinese consumers may !ossess little &no$led)e a#out a
!articular #rand' they hea"ily consume name*#rand !roducts for material !ossessionor social needs% Therefore' they ha"e a tendency to choose $ell*&no$n and hi)hly
ad"ertised #rands%
8e' Bose and elton -2.11/ claimed that Chinese consumers a$areness and
e7!ression of their !sycho*sociolo)ical identities are reflecti"e in #uildin)
relationshi!s $ith !roducts and #rands% 0dditionally' they su!!orted that !ersonal care
!roducts are closely related to consumers self conce!t as they facilitate self*e7!ression% Ho$e"er' on the contrary to some !rior researches' their research findin)s
sho$ that the direct effect of Chinese consumers self*consciousness has a ne)ati"e
im!act on #rand consciousness% It is e7!lained #y the dee!ly held Confucian "alues in
the Chinese culture $hich em!hasiJe on collecti"ism' harmony' tradition and loyalty%
0s a result' Chinese consumers may ha"e difficulty in connectin) to the 9estern
sense of #rand conce!t -Sun) and Tin&ham' 2..=/% Other than that' it is $orth
noticin) that #randin) is still a fairly ne$ conce!t in the Chinese culture $ith
relati"ely limited !enetration -Bruce' 2.1./ $hich may affect the im!act of Chinese
consumers sense of self on #rand consciousness and #rand selection%
2.1.2 Chine"e con"u0er"/ perception and ehavioural intention di**erence
etween local rand" and *oreign rand"
0ccordin) to Tau#e and Hein#er)s -2.11/ mar&et research' #rand ima)e is found to
ha"e a stron)er effect for forei)n #rands than that of local #rands in China% In addition
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to that' due to the ro#ust halo effect of #rand ima)e' Chinese consumers !ercei"e the
effect siJes of mar&etin) mi7 elements as relati"ely less "ariant for forei)n #rands%
Their result states that #ecause of a #etter esta#lished mar&et !osition of forei)n
#rands' reasona#le or attracti"e !rices ha"e a !ositi"e effect on re!urchase intention
for forei)n #rands $hile the !ercei"ed !rice of a !roduct is found to ha"e no effect on
re!urchase intention for local #rands due to the insecurity of consumers $hich is
induced #y a lar)e num#er of local #rands and a #lurred !osition of #rands in the
mar&et% Ho$e"er' the !ercei"ed ,uality of a !roduct has a si)nificantly stron)er
relationshi! on re!urchase intention for local #rands since the consumers
e7!ectations are lo$er% They also found that the !ercei"ed !rice for #oth )rou!s has
no effect on recommendation intention' $hile the !ercei"ed ,uality has a si)nificant
effect%
2.2 Con"u0er"/ perceived rand value
Consumers !ercei"ed "alue is defined #y eithaml -13>>/ as the consumers o"erall
assessment of the utility of a !roduct -or ser"ice/ #ased on !erce!tions of $hat is
recei"ed and $hat is )i"enM $hile +ay -133./ su))ested that it re!resents the
difference #et$een consumers !ercei"ed #enefits and costs% The !ercei"ed #enefitsrefer to consumers desired "alue $hereas the !ercei"ed sacrifices refer to #oth
monetary -!rice/ and non*monetary -time' effort/ considerations% -Cronin' et al%' 2.../
Other than that' consumers !ercei"ed "alue occurs at "arious sta)es of the !urchase
!rocess $hich include !re*!urchase sta)e $here consumers e7!ectation is formed'
transaction sta)e $here e"aluation is formed as $ell as !ost*!urchase sta)e $here
after*use assessment is formed -9oodruff' 133/% 0s a result' !ercei"ed #rand "aluecan #e )enerated $ithout the !roduct or ser"ice #ein) #ou)ht or used%
Consumers !ercei"ed "alue differs from !erson to !erson due to the differences on
!ersonal "alues' needs' !references and financial a#ility% -Ra"ald and ronroos'
1334'/ 9ilson -2.1./ stated that there is no o#(ecti"e !erce!tion of a sin)le reality
and there are al$ays some differences in !erce!tion% There is consensus re)ardin) the
multidimensional and su#(ecti"e nature of consumer !ercei"ed "alue as descri#ed #y
different researchers -e%)% Sheth et al%' 1331#K S$eeney and Soutar' 2..1/% 0ccordin)
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to eithaml -13>>/' $hat constitutes "alue is hi)hly !ersonal and due to its
idiosyncratic nature' it is "ery li&ely to "ary from one consumer to another% Thus'
consumers !ercei"ed #rand "alue is a "ery su#(ecti"e assessment of a #rands !roduct
or ser"ice from the consumers o$n !ers!ecti"es%
It is #elie"ed that consumers !ercei"ed "alue chan)es o"er time as eithaml -13>>/
su))ested that im!ro"ed technolo)y and increasin) com!etition lead to the
de"elo!ment of technically #etter !roducts' the features that si)nal su!eriority chan)e%
In additional to that' Sheth et al% -1331#/ stated that different "alue dimensions may
#e im!ortant de!endin) on the decision le"el and on the ty!e of !roduct or ser"ice
#ein) considered%
enerally' the more "alue a !roduct deli"ers to consumers' the more successful the
!roduct -
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Consumers !urchase intention refers to their intentions of continuin) to do #usiness
$ith a com!any' !urchasin) re!eatedly and fre,uently from a com!any -eithaml'
Leonard and arasuraman' 1334/% Some researchers ar)ued that a consumer
!urchasin) re!eatedly from a com!any may not #e #ased on a !referential dis!osition
to$ards the com!any #ut on "arious #onds that act as s$itchin) #arriers -Sor#ac&a'
Strand"i& and roEnroos' 133=/%
rice insensiti"ity refers to the e7tent $hich a consumer is $illin) to !ay a hi)her
!rice for a com!anys !roduct' continue to !urchase !roduct from a com!any $ith a
!rice increase and continue the relationshi! $ith a com!any e"en if alternati"es are
less e7!ensi"e -eithaml' Leonard and arasuraman' 1334/% rice sensiti"ity is said to
differ amon) demo)ra!hic )rou!s $here female' married' older and do not $or&
outside home is the most !rice sensiti"e )rou! amon) the rest% -eithaml and Berry
13> >/
9ord*of*mouth communication of consumers refers to recommendin) a com!any or!roduct to others' encoura)in) others to do #usiness $ith a com!any and sayin)
!ositi"e comments a#out the com!any to others -eithaml' Leonard and arasuraman'
1334/% ounaris and Statha&o!oulos -2..:/ su))ested that the relation #et$een a
consumer s!readin) !ositi"e $ord*of*mouth and #rand loyalty is that the consumer
has de"elo!ed !ositi"e attitude to$ards the #rands as a result of the recei"ed #rand
"alue% Ho$e"er' Oli"er -1333/ claimed that sharin) of the e7!erience re)ardin) the
#rand may in fact !ro"ide the consumer $ith satisfaction $hich leads to #rand loyalty
and not the #rand itself% Referrin) to ihlstrom and Brush -2..>
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they #elie"ed that "aria#les and lin&a)es !redictin) !ositi"e outcomes may $ell #e
asymmetrically related to those that !redict customer disloyalty% Solnic& and
Hemen$ay -1332/ found that com!lainin) consumers $ere four and one*half times
more li&ely to lea"e the com!any than non*com!lainin) consumers% They su))ested
that com!lainin) consumers intend to #e less loyal and more li&ely to s$itch to
another com!any% Ho$e"er' some researchers ta&e the o!!osite "ie$' +ay -13>:/
su))ested that the ma(ority of consumers $ith ne)ati"e #rand e7!erience $ould rather
remain inacti"e and do not underta&e any action at all% In addition' Bloemer' Ruyter
and 9etJels -133>/ stated that a lar)e e7tent of consumers #eha"ioural intentions in
res!onse to dissatisfaction is determined #y !ersonal and situational "aria#les%
2.3 Theoretical acground o* propo"ed *ra0ewor
Consumers !ercei"ed "alue is narro$ly inter!reted in terms of money !aradi)m' as
the ratio or trade*off #et$een ,uality and !rice -e%)% ?onroe' 133.K ?ath$ic&' Naresh
and Ri)don' 2..1/% These authors focus solely on "ie$in) the "alue*for*money
conce!tualiJation $hile ne)lectin) other !ossi#le "alue dimensions%
eithaml -13>>/ !ro!osed that consumers !ercei"ed "alue for money can not #e
measured sim!ly #y assessin) the ratio or trade*off #et$een a !roducts ,uality and
!rice since some consumers !ercei"e "alue $hen there is a lo$ !rice $hile others!ercei"e "alue $hen there is a #alance #et$een ,uality and !rice% Some researchers
-e%)% Batra and 0htola' 133.K Ba#in' +arden and riffin' 133:/ su!!orted that #oth
utilitarian and hedonic com!onents are im!ortant dimensions $hen it comes to
consumers !ercei"ed "alue%
Sheth' Ne$man and ross -1331a/ introduced a multi*dimensional frame$or& of
!ercei"ed "alue $hich consist of fi"e dimensions includin) functional' emotional'
social' e!istemic and conditional "alue% S$eeney and Soutar -2..1/ introduced amodified and refined !ercei"ed "alue scale called ER0L% In the ne$ model' they
decom!osed the functional dimension of "alue to ,uality "alue and !rice "alue and
deleted the e!istemic and conditional dimensions from the scale% Therefore' ER0L
consists of four dimensions $hich include ,uality' !rice' emotional and social "alue%
?easurement of consumers !ercei"ed "alues $ith their #eha"ioural intentions in
earlier times is often done #y research o!erationaliJes #eha"ioural intentions in a
unidimensional $ay -e%)% Cronin and Taylor' 1332K 0nderson and Sulli"an' 133./% It
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$ord*of*mouth communication -eithaml' 13>>K Bouldin) et al% 1336/ $hile it has a
ne)ati"e relationshi!s $ith consumers !rice sensiti"ity -Bloemer' Ruyter and 9etJels
133>/ as $ell as their com!lainin) #eha"iour -Sin)h' 1331 and elley et al%' 1336/%
Ho$e"er' Cronin and Taylor -1332/s findin)s su))est that a !roducts !ercei"ed
,uality does not a!!ear to ha"e a si)nificantly !ositi"e effect on consumers !urchase
intention% 9an) -2.1./s research result also !ro"ed that the !ercei"ed ,uality of a
!roduct does not ha"e a direct !ositi"e im!act on consumers !urchase intention%
Ta#le 2D
2..2 !unctional value 5Price7 9alue *or 0oney8
The functional "alue of a !roduct refers to the utility deri"ed from the !roduct due to
the reduction of its !ercei"ed short term and lon)er term costs -S$eeney and Soutar'
2..1/% It underlies o#(ect !erformance #y means of a series of salient !rice attri#utes
-LeBlanc and N)uyen' 2..1/% +ifferent researches sho$ that a !roducts !ercei"ed"alue for money has a !ositi"e relationshi! $ith consumers !urchase intention -Hui
and hou' 2..2K Bhas&aran and Su&umaran' 2..K ihlstrom and Brush' 2..>/ and
!rice insensiti"ity -ihlstrom and Brush' 2..>/% Ne"ertheless' ihlstrom and Brush
-2..>/s research result sho$s that !ositi"e $ord*of*mouth intentions are not
influenced #y the !ercei"ed monetary "alue of a !roduct%
2.
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Ta#le 6D
2..& 0otional value
The !ercei"ed emotional "alue of a !roduct refers to the utility deri"ed from the
feelin)s or affecti"e states that a !roduct )enerates -S$eeney and Soutar' 2..1/% It is
defined as !roduct !o$er to tri))er certain consumer emotions or chan)e emotional
status -Sheth' Ne$man and ross' 1331#/% re"ious study findin)s sho$ that !ositi"e
emotional "alue !erce!tion of a !roduct has a !ositi"e influence on consumers!urchase intention -S$eeney and Soutar' 2..1K ihlstrom and Brush' 2..>K 9an)
2.1./' !rice insensiti"ity -ihlstrom and Brush' 2..>/ as $ell as $ord*of*mouth
communication -ihlstrom and Brush' 2..>/% ositi"e emotions of a !roduct also
increase loyalty to the offerin) -Sierra and ?c@uitty' 2..=/ $hile creatin) !ositi"e
senses that interact $ith the #rand $hich leads to increase #rand loyalty -?orrison
and Crane' 2../% Other than that' ihlstrom and Brush -2..>/ su))ested that the
dri"er of $ord*of*mouth communication may also de!end on $hether or not there is
an in"ol"ement of an emotional use e7!erience%
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Ta#le :D
2..3 (ocial value
The social "alue of a !roduct refers to the utility deri"ed from the !roducts a#ility to
enhance social self*conce!t -S$eeney and Soutar' 2..1/% Consumers e7!erience
social sym#olism throu)h the !roduct and !ositi"e !ercei"ed social sym#olism leads
to )ood #rand im!ression -Rose et al%' 133:/ $hich as a result contri#utes to )ood
#rand ima)e% It is also re!orted that consumers interact $ith !roduct cate)ories that"isi#ly re!resent "alues a#out themsel"es may )uide their !roduct !urchase
-oldsmith' 5rieden and Henderson' 133/% Their findin)s re!ort that the !ercei"ed
social "alue of a !roduct does not ha"e direct effect on !urchase intention $hile
ihlstrom and Brush -2..>/s research findin)s sho$ that !ositi"ely !ercei"ed social
"alue of a !roduct has no !ositi"e influence on consumers !urchase intention%
On the contrary' some !re"ious research findin)s su))est that !ositi"ely !ercei"ed
social "alue of a !roduct has a !ositi"e influence on consumers !urchase intention
-i)neron and
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communication -ihlstrom and Brush' 2..>/%
Ta#le =D
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5i)ure 1D
The research frame$or&
H1
H2
H6
H:
H=
H4
H
H>
H3
H1.
H11
H12
H16
H1:
H1=
H14
2:
5unctional "alue-@ualityA !erformance/
5unctional "alue-riceA "alue for money/
Emotional "alue
Social "alue
urchaseIntention
rice insensiti"ity
9ord*of*mouth
Com!lainin)#eha"iour
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Chapter Three: Methodology
&.1 Introduction
In this section' research !hiloso!hy' a!!roach' desi)n and the ado!ted strate)y $ill #e
discussed% The chosen o!tions are (ustified accordin)ly% 5urthermore' the method of
!rimary data collection as $ell as the research limitations $ill also #e mentioned%
&.2 Mareting re"earch
&.2.1 Re"earch philo"ophy
There are !rimarily four research !hiloso!hies $hich include !ositi"ism' realism'
inter!reti"ism and !ra)matism% Realism relates to scientific en,uiry% Since this
research ado!ts a scientific a!!roach' realism is the chosen research !hiloso!hy%
0ccordin) to Saunders -2..3/' realism refers $hat the senses sho$ us as reality astruth $here there is a reality ,uite inde!endent of the mind% 0lso' critical realism says
that $hat !eo!le e7!erience are sensations' the ima)es of the thin)s in the real $orld
#ut not the thin)s directly -Saunders 2..3/% This research a!!lies critical realisms
!oint of "ie$ to$ards Chinese consumers #rand !erce!tions and #rand loyalty%
&.2.2 Re"earch approach
In this scientific research' deduction a!!roach is ado!ted $hich in"ol"es thede"elo!ment of a theory that is su#(ected to a ri)orous test -Collis and Hussey 2..6/%
In another $ord' deduction a!!roach em!hasises on scientific !rinci!les' mo"in)
from theory to data rather than "ice "ersa as $ith induction a!!roach -Suanders
2..3/% Since #rand "alue and #rand loyalty' is $idely researched' there is a $ealth of
research literature $ith affluent theories and frame$or&s from $hich a theoretical
frame$or& can #e !roduced% Besides' deducti"e a!!roach relates to the limited
amount of time and resources a"aila#le for com!letin) this research% Thus' deduction
a!!roach is more suita#le for this research%
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&.2.& Re"earch de"ign
There are three ty!es of research desi)ns $hich include e7!loratory' descri!ti"e and
e7!lanatory research%
5i)ure 2D
This is an e7!lanatory research that aims to study female Chinese consumers
!ercei"ed #rand "alue and its cause*and*effect relationshi! $ith #rand loyalty #y
collectin) ra$ data from tar)et )rou!s of res!ondents online%
&.2.3 Re"earch "trategy
This research ado!ts the sur"ey strate)y $hich is usually associated $ith the
deducti"e a!!roach% Sur"eys are useful for the collection of a lar)e amount of data
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from a siJea#le !o!ulation in a hi)hly economical $ay -Suanders 2..3/% +ata
collected from ,uestionnaires are standardiJed' allo$in) easy com!arison% Since this
research is #ein) done under time and resources limitations' sur"ey strate)y is a
!ractical and efficient $ay for data collection%
The sur"ey strate)y also allo$s researchers to collect ,uantitati"e data $hich can #e
analysed ,uantitati"ely usin) descri!ti"e and inferential statistics -Suanders 2..3/%
The ado!tion of the sur"ey strate)y and ad"anced statistics technolo)y can hel! to
reduce time for data analysis as $ell% @uestionnaires are useful for e7!lanatory
research to e7amine and e7!lain cause*and*effect relationshi! #et$een "aria#les
-Suanders 2..3/% Hence' the sur"ey strate)y is the most suita#le o!tion for this
research%
&.2. Pri0ary and (econdary re"earch
rimary data is data collected #y the researcher s!ecifically for the !ur!ose of the
research -Hair et% al% 2..2/% rimary data collection is done #y administerin)
standardiJed ,uestionnaires to a#out t$o hundreds Chinese female consumers online%
Secondary data is data !re"iously collected and assem#led for some research !ro#lemor o!!ortunity situation other than the current situation -Hair et% al% 2..2/% Secondary
data used in this research includes $ritten materials from or)anisations re!orts'
(ournals' #oo&s' industry statistics as $ell as re)ular sur"eys% Theoretical frame$or&
and ,uestionnaire are deduced from !re"ious (ournals and literature%
&.2., 6uantitative and 6ualitative re"earch
@ualitati"e research is research used in e7!loratory desi)ns to )ain !reliminary
insi)hts into decision !ro#lems and o!!ortunities -Hair et% al% 2..2/% @uantitati"e
research is research that !laces hea"y em!hasis on usin) formaliJed standard
,uestions and !redetermined res!onse o!tions in ,uestionnaires or sur"eys
administered to lar)e num#ers of res!ondents -Hair et% al% 2..2/% This is a ,uantitati"e
research $hich collects data #y administerin) standardiJed ,uestionnaires to around
t$o hundred res!ondents% In this research' statistic techni,ues are used to e7amine
relationshi!s #et$een "aria#les $ithin the collected data and turn them into useful
information%
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&.& Pri0ary data collection
rimary data collection $ill #e done #y conductin) a sur"ey research% @uestionnaires
are used as a research instrument for collectin) information% Information is collected
from a sam!le of around t$o hundreds female Chinese consumers $ho are #et$een
the a)e of ei)hteen and fifty% The ,uestionnaires $ere translated into Chinese in order
to reduce understandin) !ro#lems caused #y lan)ua)e unfamiliarity% @uestionnaires
$ere sent to !artici!ants throu)h different social )rou!s' such as fans clu#s' school
alumni and friend )rou!s' from "arious online social net$or&s' such as face#oo&'
msn' renren -Chinese face#oo&/ and @@ -Chinese online messen)er/ or #y e*mail%
Res!ondents then sent the com!leted ,uestionnaires #ac& online throu)hcorres!ondin) means%
&.&.1 6ue"tionnaire de"ign
@uestionnaires are desi)ned usin) +illmans -2../ tailored desi)n method #y $hich
each res!ondent is as&ed to res!ond to the same set of ,uestions in a !redetermined
order% It is an efficient $ay of collectin) res!onses from a lar)e sam!le !rior to
,uantitati"e analysis%
In this research' e7istin) frame$or&s and scales $hich ha"e #een tested and "alidated
are used as references for the desi)n of a ,uestionnaire% 0ll items from S$eeney and
Soutar -2..1/s scale' ER0L' are used in the ,uestionnaire to determine
consumers !ercei"ed #rand "alue% T$el"e out of thirteen items from eithaml'
Leonard and arasuraman -1334/s frame$or& is used to determine consumers #rand
loyalty% One item is not included in the ,uestionnaire due to its unclear nature to
!redict #rand loyalty%
&.&.2 (a0pling
0 defined tar)et !o!ulation refers to a s!ecific )rou! of !eo!le or o#(ects for $hich
,uestions can #e as&ed or o#ser"ations made to de"elo! re,uired data structures and
information -Hair et% al% 2..2/% Since the sam!le is used to )eneralise a#out the total
!o!ulation' it needs to #e as re!resentati"e and accurate as !ossi#le -Suanders 2..3/%
Hence' a!!ro!riate female Chinese consumers #et$een the a)e of ei)hteen and fifty
are selected online% The research o#(ecti"es are also addressed to each selected
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res!ondents clearly online #efore !artici!ation%
&.&.& 9alidity and Reliaility
The "alidity and relia#ility of !rimary data collected from sur"ey $ere tested #y SSS
tests% 0ll ne)ati"ely $orded items $ere re"ersed #efore conductin) the relia#ility test'
to ensure the accuracy of results !roduced%
In order to increase res!onse rates' "alidity and relia#ility of this research' different
strate)ies are ado!ted such as careful desi)n of indi"idual ,uestions #y usin) e7istin)
frame$or&s and scales $hich ha"e #een em!irically tested and "alidated' clear and
!leasin) layout of the ,uestionnaire #y ado!tin) the Li&ert*style fi"e*!oint ratin)
scale' lucid e7!lanation of the research o#(ecti"es and !ur!ose' !ilot testin) #y
distri#utin) !ilot ,uestionnaire to ten Chinese females and modifyin) the
,uestionnaire accordin)ly after$ards as $ell as carefully !lanned and e7ecuted
administration of ,uestionnaires to the tar)et sam!le%
&.&.3 Re"earch Li0itation"
There are se"eral limitations e7ist in this research% Time and financial resourcesa"aila#le to com!lete this research are limited% There is also a )eo)ra!hic limitation in
terms of reachin) the a!!ro!riate res!ondents% Since the res!ondents are located in
China' ,uestionnaires are administered to them online% +eli"ery of ,uestionnaires #y
!ost or #y hand is made una"aila#le due the a#o"e limitations% Other than that' the
researcher cannot "erify the truthfulness of the res!onses $hich may affect the
"alidity of the results%
&.3 thical con"ideration
This research is conducted under Brunel Uni"ersitys ethical )uidelines% artici!ants
are $ell informed of the research o#(ecti"es and nature #efore !artici!ation% They are
also !rotected #y their ri)ht to $ithdra$' !ri"acy and confidentiality% Since the
research is !urely "oluntary nature' no !ressure is )i"en to !artici!ants%
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Chapter !our: Re"earch !inding"# $naly"i" and %i"cu""ion
3.1 Introduction
0ll collected data $as tested throu)h consistency test and relia#ility test% It $as then
analysed statistically throu)h the use of SSS #y correlation' re)ression and 0NO0
analysis% By analysin) the result of research findin)s' the o#(ecti"es of this research
$ere discussed accordin)ly%
3.2 %ata con"i"tency and reliaility
Refer to 0!!endi7 :' there $ere no re!orted missin) "alues detected from the
collected data $hich im!lies no treatments for missin) "alues are re,uired%
Ho$e"er' any cases $ith standardised residual "alues a#o"e 6%. or #elo$ *6%. are
considered as unusual cases -allant' 2.1./% 5rom the collected data' there is an
unusual case detected $hich is sho$n in the ta#le titled Case$ise +ia)nostics in
0!!endi7% 0ccordin) to Ta#achnic& and 5idell -2../' cases $ith "alues for Coo&s
+istance lar)er than 1%. are a !otential !ro#lem and ha"e to #e either treated or
remo"ed% Referrin) to 0!!endi7 ' the ma7imum "alues for Coo&s +istance of all
collected data is less than 1%. $hich su))ests that no ma(or !ro#lems e7isted% Thus' itis #est to lea"e the data as it is%
Ta#le 4D
6.
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In order to test the relia#ility of the research findin)s' relia#ility tests $ere conducted%
Referrin) to ta#le 4' each construct has attained a Cron#achs 0l!ha "alue of a#o"e
.%% Since the Cron#achs 0l!ha "alue of a relia#le scale should #e a#o"e .%
-+eellis' 2..6/' the scales used in the research frame$or& are !ro"ed to #e relia#le%
This su))ests that the ado!ted scales ha"e )ood internal consistency relia#ility%
3.& %e"criptive analy"i"
+ata from this research $as collected from a total num#er of 2.4 Chinese female
!artici!ants' 6:F $ere from the a)e )rou! of 1> to 6. years old' 66%=F $ere from
61*:. years old and 62%=F $ere from :1*=. years old% artici!ants monthly income
$as di"ided into fi"e )rou!s' 1.%2F $ere less than 6...' $ith e7chan)e rate of 1
Chinese 8uan e,uals .%1.444 British ound Sterlin) -The money con"erter' 2.16/ '
1:%4F $ere #et$een 6... and =...' 16%1F $ere #et$een =... and 1....'6:%.F $ere #et$een 1.... and 2.... and 2>%2F $ere more than 2....% The
cate)ory of last !urchased cosmetic !roduct $as di"ided into four )rou!s' hair care
!roducts com!rised of 2>%2F' s&in care !roducts com!rised of :=%1F' colour
cosmetics com!rised of 1>%.F and fra)rance com!rised of >%F% The une,ual
distri#ution of !artici!ants monthly income and the cate)ory of their last !urchased
cosmetic !roducts $ere acce!ted since these factors $ere not under the researchers
control%
Ta#leD
61
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Participants) (ge
reuency Percent 4alid Percent Cumulative
Percent
4alid 1.53, *, 3/!, 3/!, 3/!,
315/, 67 33!8 33!8 6*!8
/158, 6* 32!8 32!8 1,,!,
9otal 2,6 1,,!, 1,,!,
Ta#le>D
Participants) Monthl& Income
reuency Percent 4alid Percent Cumulative
Percent
4alid : ;3,,, 21 1,!2 1,!2 1,!2
;3,,,58,,, 3, 1/!6 1/!6 2/!.
;8,,,51,,,, 2* 13!1 13!1 3*!7
;1,,,,52,,,, *, 3/!, 3/!, *1!.
< ;2,,,, 8. 2.!2 2.!2 1,,!,
9otal 2,6 1,,!, 1,,!,
Ta#le 3D
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The categor& of last purchased cosmetics product
reuency Percent 4alid Percent Cumulative
Percent
4alid =air care roduct 8. 2.!2 2.!2 2.!2
Skin care roduct 73 /8!1 /8!1 *3!3
Colour cosmetics 3* 1.!, 1.!, 71!3
ragrances 1. .!* .!* 1,,!,
9otal 2,6 1,,!, 1,,!,
3.3 (tati"tical analy"i" re"ult"
3.3.1 Mean and "tandard deviation
The ta#les #elo$ summarise the mean and standard de"iation score of each tested
item%
Ta#le 1.D ercei"ed #rand "alues mean and standard de"iation
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Ta#le 11D Brand loyaltys mean and standard de"iation
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3.3.2 $;O9$ analy"i" re"ult
SSS out!uts of 0NO0 analysis are )i"en in 0!!endi7 4% The ta#les #elo$
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summarise the result of 0NO0 analysis% The 0NO0 test is used to com!are the
mean scores of t$o or more )rou!s on a continuous de!endent "aria#le -allant
2.1./%
Ta#le 12D
5i)ure 6D
Ta#le 12 and fi)ure 6 dis!lay the result of 0NO0 analysis #et$een different a)e
)rou!s and !ercei"ed #rand "alue% The ta#le sho$s that !artici!ants from the a)e
#et$een 61 and :. had the hi)hest mean score of 6%= and !artici!ants from the a)e
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#et$een 1> and 6. had the lo$est mean score of 6%24 in terms of !ercei"ed social
"alue of a !roduct -!P.%.=/%
Ta#le 16D
5i)ure :D
6
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Ta#le 16 and fi)ure : dis!lay the testin) of 0NO0 analysis #et$een different
monthly income and !ercei"ed #rand "alue% The ta#le sho$s that !artici!ants $ith
monthly income less than 6... had the lo$est mean score of 6%11$hilst !artici!ants
$ith monthly income #et$een 1.... and 2.... had the hi)hest mean score of
6%4 in terms of !ercei"ed !rice "alue of a !roduct -!P .%.=/% This indicates that there
is !erce!tion difference in terms of !rice "alue of a !roduct amon) Chinese females
$ith different monthly income le"els% artici!ants $ith hi)her monthly income
inclined to !ercei"e the !roduct as more reasona#ly !rice' offer more "alue for money
as $ell as more economical%
Ta#le 1:D
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5i)ure =D
Ta#le 1: and fi)ure = dis!lay the result of 0NO0 analysis #et$een different !roduct
cate)ories and !ercei"ed #rand "alue% artici!ants $ho assessed the !ercei"ed social
"alue of !roducts $hich $ere colour cosmetics had the hi)hest mean score of 6%>4'
follo$ed #y those $ho assessed fra)rances $ith mean score of 6%>1' s&in care
!roducts $ith mean score of 6%6> and hair care !roduct $ith mean score of 6%16 -!
P.%.=/% This findin) indicates that a consumers !ercei"ed social "alue of a !roduct is
hi)hly influenced #y the cate)ory of the !roduct%
3.3.& Correlation analy"i" re"ult
0s results o#tained from correlation analysis do not )i"e a stron) contri#ution to
research o#(ecti"es' this section is therefore mo"ed to 0!!endi7 >' for reference only%
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3.3.3 Regre""ion analy"i" re"ult
SSS out!uts of re)ression analysis are )i"en in 0!!endi7 % Ta#les #elo$ summarise
the result of multi!le re)ression analysis% The re)ression test sho$s the !redicti"e
a#ility of a set of inde!endent "aria#les on one continuous de!endent "aria#le -allant
2.1./%
Ta#le 1=D
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5i)ure 4D
'.+1
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'.23
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-'.',
'.'2
'.'+
3.3. Te"ting o* re"earch hypothe"i"
Ta#le 13D
Testin) of research hy!otheses
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5i)ure 1.D
Testin) of research frame$or&
:=
5unctional "alue-@ualityA !erformance/
5unctional "alue-riceA "alue for money/
Emotional "alue
Social "alue
urchaseIntention
rice insensiti"ity
9ord*of*mouth
Com!lainin)#eha"iour
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.%>1
.%=2
.%41
*.%4>
*.%.
.%2:
.%22
*.%.4
.%.>
*.%.=
.%..
.%.2
*.%.
.%1
.%.2
.%.>
Re)ression is si)nificant at .%..1 le"el -!P .%..1/%Re)ression is si)nificant at .%.1 le"el -!P .%.1/%
Re)ression is si)nificant at .%.= le"el -!P .%.=/%
3. Re"earch *inding" analy"i" and di"cu""ion
Ta#le13 dis!lays the testin) of the researchs hy!otheses' $hile 5i)ure1. dis!lays the
result of the research frame$or& tested #y multi!le re)ression analysis%
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3..1 6uality
5i)ure 11D
5i)ure 12D
These research findin)s are consistent $ith !re"ious research studies $hich su))est
that the !ercei"ed ,uality of a !roduct has a !ositi"e im!act on consumers !urchase
intention -9oodside and Taylor 13>K eithaml et al%133. K Bouldin) et al% 1336K
Bhas&aran and Su&umaran 2../' !rice insensiti"ity -Bloemer' Ruyter and 9etJels
133>/' and $ord*of*mouth communication -eithaml' 13>> K Bouldin) et al% 1336 K
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Tau#e and Hein#er)' 2.11/ $hilst it has a ne)ati"e im!act on consumers com!lainin)
#eha"iour -Sin)h' 1331 and elley et al%' 1336/%
Ne"ertheless' the result of this research contradicts $ith Cronin and Taylor -1332/s
statement that the !ercei"ed ,uality of a !roduct does not ha"e si)nificantly !ositi"e
effect on consumers !urchase intention as $ell as 9an) -2.1./s statement that the
!ercei"ed ,uality of a !roduct does not ha"e a direct !ositi"e im!act on consumers
!urchase intention%
Re)ardin) Cronin and Taylor -1332/s statement' one !ossi#le reason $hy there is a
difference #et$een t$o research results may due to different cultural #ac&)rounds of
!artici!ants' different industry #ein) researched as $ell as research ta&en !lace durin)
com!letely different times% This indicates that the im!act of !ercei"ed ,uality on
!urchase intention can #e enormously affected #y these factors% The result of this
research sho$s that the !ercei"ed utilitarian as!ect of a cosmetic !roduct is a
!o$erful dri"er of Chinese consumers !urchase intention% This may also #e related to
their tradition of #ein) outcome*oriented% Thus' the !erformance of the !roduct is
hi)hly "alued $hich means the !ercei"ed ,uality of the !roduct is hi)hly "alued%
0s for 9an) -2.1./s statement' this research can only !ro"e that the !ercei"ed
,uality of a !roduct has a si)nificant !ositi"e im!act on !urchase intention #ut doesnot su))est $hether the im!act is direct or indirect%
3..2 Price
5i)ure 16D
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5i)ure 1:D
The research result is consistent $ith ihlstrom and Brush -2..>/s findin) that a
!roducts !ercei"ed !rice "alue has a !ositi"e im!act on consumers !rice
insensiti"ity% Ho$e"er' research result contradicts some other researches -Hui and
hou' 2..2K Bhas&aran and Su&umaran' 2..K ihlstrom and Brush' 2..>/ findin)s
$hich state that the !ercei"ed !rice "alue of a !roduct has a !ositi"e relationshi! $ith
consumers !urchase intention% 0 li&ely reason for this result is the im!act of
!ercei"ed !rice "alue of a !roduct on consumers !urchase intention may #e affected
#y different factors' such as #rand ima)e' consumers !ersonal "alues' needs and
financial a#ility%
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0ccordin) to Tau#e and Hein#er) -2.11/' $ell esta#lished #rands $ith a clear mar&et
!osition and )ood ima)e are more fa"oura#ly inter!reted #y Chinese consumers'
hence reasona#le or attracti"e !rices ha"e a !ositi"e effect on !urchase intention% This
im!lies that #rands $ith a #lurred mar&et !osition and !lain #rand ima)e' )ood
!ercei"ed !rice "alue of a !roduct may not ha"e a !ositi"e im!act on Chinese
consumers !urchase intention% Other than that' if the !ercei"ed monetary "alue of a
!roduct does not match $ith a consumers !ersonal "alue and needs' there may #e no
!ositi"e effect on !urchase intention% 5or e7am!le' a consumer $ith stron) financial
a#ility $ho en(oys !ursuin) for fine !roducts $ith the hi)hest ,uality may not
re!urchase a !roduct sim!ly #ecause it is the most economical%
The research result also sho$s contradiction to ihlstrom and Brush -2..>/s claim
that !ositi"e $ord*of*mouth intentions are not influenced #y the !ercei"ed !rice "alue
of a !roduct% Since consumers $ord*of*mouth communication can #e determined #y
"arious !ersonal and situational factors' researches conducted on !artici!ants $ith
different cultural #ac&)rounds and studied different to!ics may lead to "ery different
result findin)s% One !ossi#le reason may #e due to the fact that #y recommendin)
!roducts $hich offers )ood "alue for money to others' hel!s consumers )ain a sense
of satisfaction and self*enhancement% This may #e related to Chinese "alue fordee!enin) their !ersonal relationshi! throu)hout the !rocess of recommendin) others
somethin) they !ercei"ed as )ood "alue for money as a $ay of )i"in) #enefits to
others% Thus' )ood !ercei"ed !rice "alue of a !roduct tri))ers Chinese consumers
ur)e to recommend the !roduct to others%
3..& 0otional
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5i)ure 1=D
5i)ure 14D
5indin)s from this research su))est that the !ercei"ed emotional "alue of a !roduct
does not ha"e a !ositi"e im!act on either fa"oura#le or unfa"oura#le #eha"ioural
intentions% The result of this research sho$s contradictions to the results of !rior
research studies $hich claim that the !ercei"ed emotional "alue of a !roduct has a
!ositi"e influence on consumers !urchase intention -S$eeney and Soutar' 2..1'
ihlstrom and Brush' 2..>K 9an) 2.1./' !rice insensiti"ity -ihlstrom and Brush'
2..>/ and $ord*of*mouth communication -ihlstrom and Brush' 2..>/%
0 !ossi#le reason #ehind the result differences may #e that Chinese consumers are
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more focused on the utilitarian com!onents rather than the hedonic com!onents of a
!roduct% In other $ords' this research result sho$s that most Chinese consumers
e"aluate cosmetic !roducts from a utilitarian !ers!ecti"e rather than from a hedonic
!ers!ecti"e $hich may e7!lain $hy the !ositi"e im!act of a !roducts !ercei"ed
emotional "alue on a Chinese consumers #eha"ioural intentions is insi)nificant%
0nother !ossi#le reason may #e related to the fact that Chinese consumers are not
a#le to connect to #rand conce!ts that ad"ocates emotional "alue as #randin) is still a
fairly ne$ conce!t in the Chinese culture -Bruce' 2.1./% Thus' their #eha"ioural
intentions are less li&ely to #e influenced #y those hedonic com!onents of a !roduct%
3..3 (ocial
5i)ure 1D
5i)ure 1>D
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The result of this research is consistent $ith !re"ious researches $hich !ro"ed that
the !ercei"ed social "alue of a !roduct does not ha"e any !ositi"e im!act on a
consumers !urchase intention -oldsmith' 5rieden and Henderson' 133Kihlstrom
and Brush' 2..>/ $hile it has a !ositi"e im!act on a consumers !rice insensiti"ity
-ihlstrom and Brush' 2..>/%
Ne"ertheless' the research findin)s contradict some research studies $hich su))est a
!roducts !ercei"ed social "alue has !ositi"e im!acts on consumers !urchase
intention -i)neron and ehavioural intention"
*urchase intention
Hy!otheses H1' H=' H3 and H16 res!ecti"ely state that a !roducts !ercei"ed ,uality'
!rice' emotional and social "alue each has a !ositi"e im!act on a consumers !urchase
intention% The !ositi"e effect of a !roducts !ercei"ed ,uality "alue -H1D Q .%>1' !P
.%..1/ on !urchase intention !ro"ed to #e si)nificant $hile a !roducts !ercei"ed
!rice "alue -H=D Q *.%.' ! .%.=/' emotional "alue -H3D Q .%.>' ! .%.=/ and
social "alue -H16D Q *.%.' ! .%.=/ !ro"ed to #e insi)nificant% This sho$s that
research findin)s only su!!ort for hy!othesis H1 #ut not hy!otheses H=' H3 or H16%
Thus' a !roducts !ercei"ed ,uality "alue is the #est !redictor of a consumers
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!urchase intention% This im!lies that the most efficient $ay to increase consumers
!urchase intention is #y increasin) the ,uality "alue of a !roduct%
*rice insensiti"ity
Hy!otheses H2' H4' H1. and H1: res!ecti"ely su))est that a !roducts !ercei"ed
,uality' emotional and social "alue each has a !ositi"e influence on a consumers
!rice insensiti"ity% The !ositi"e im!acts of a !roducts !ercei"ed ,uality "alue -H2D Q
.%=2' !P .%..1/' !rice "alue -H4D Q .%2:' !P .%..1/ as $ell as its social "alue
-H1:D Q .%1' !P .%.=/ on !rice insensiti"ity' tested to #e si)nificant $hile that of a
!roducts emotional "alue -H1.D Q *.%.=' ! .%.=/ on !rice insensiti"ity' tested to #e
insi)nificant% The findin)s su!!ort for hy!otheses H2' H4 as $ell as H1: #ut not
hy!othesis H1.% Hence' a !roducts !ercei"ed ,uality "alue is the #est !redictor of a
consumers !rice insensiti"ity' follo$ed #y !ercei"ed !rice "alue and social "alue%
This result indicates that consumers !rice insensiti"ity can #e increased #y increasin)
the ,uality' !rice and social "alue of a !roduct%
*9ord*of*mouth communication
Hy!otheses H6' H' H11 and H1= res!ecti"ely state that a !roducts !ercei"ed
,uality' emotional and social "alue each has a !ositi"e influence on a consumers$ord*of*mouth communication% The !ositi"e im!acts of a !roducts !ercei"ed ,uality
"alue -H6D Q .%41' !P .%..1/ and !rice "alue -HD Q .%22' !P .%.1/ on $ord*of*
mouth communication !ro"ed si)nificant $hile that of a !roducts !ercei"ed
emotional "alue -H11D Q .%..' ! .%.=/ and social "alue -H1=D Q .%.2' ! .%.=/
!ro"ed insi)nificant% Hy!otheses H6 and H are su!!orted #y research findin)s $hilst
hy!otheses H11 and H1= are not% Therefore' a !roducts !ercei"ed ,uality "alue is the
#est !redictor of a consumers $ord*of*mouth communication' follo$ed #y !ercei"ed
!rice "alue% This indicates that the #est $ay to increase consumers !ositi"e $ord*of*mouth communication is #y increasin) the ,uality as $ell as the !rice "alue of a
!roduct%
*Com!lainin) #eha"iour
Hy!otheses H:' H>' H12 and H14 res!ecti"ely claim that a !roducts !ercei"ed
,uality' emotional and social "alue each has a ne)ati"e influence on a consumers
com!lainin) #eha"iour% The ne)ati"e effects of a !roducts !ercei"ed ,uality "alue
-H:D Q *.%4>' !P .%..1/ on com!lainin) #eha"iour tested to #e si)nificant $hile that
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of a !roducts !ercei"ed !rice "alue -H>D Q *.%.4' ! .%.=/' emotional "alue -H12D Q
.%.2' ! .%.=/ and social "alue -H14D Q .%.>' ! .%.=/ tested to #e insi)nificant%
The research findin)s only su!!ort for Hy!othesis H:% Ho$e"er' the findin)s did not
find su!!ort for hy!otheses H>' H12 and H14% Thus' a !roducts !ercei"ed ,uality
"alue is the #est !redictor of a consumers com!lainin) #eha"iour% This im!lies that
the #est $ay to decrease consumers com!lainin) #eha"iour is #y increasin) the
,uality of a !roduct%
Chapter !ive: Conclu"ion
.1 Conclu"ion
Research findin)s sho$ that consumers !ercei"ed #rand "alue can #e influenced #y
different factors% 5or e7am!le' consumers !ercei"ed !rice "alue of a !roduct is
hea"ily affected #y their monthly income% Those $ith hi)her monthly income inclined
to !ercei"e a !roduct as offer more "alue for money% On the other hand' consumers
!ercei"ed social "alue of a !roduct is found to #e hi)hly affected #y the cate)ory of a
!roduct% Cosmetic !roducts such as colour cosmetics and fra)rances are found to #e
!ercei"ed as ha"in) more social "alue than s&in care !roducts and hair care !roducts%
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0mon) all #rand "alue dimensions' the !ercei"ed ,uality "alue of a cosmetic !roduct
is found to #e the stron)est !redictor of consumers #eha"ioural intentions%Other than
the !ercei"ed ,uality "alue of a !roduct' the !ercei"ed !rice "alue of a cosmetic
!roduct $as also found to ha"e a si)nificant !ositi"e im!act on consumers !rice
insensiti"ity and $ord*of*mouth intentions $hile the !ercei"ed social "alue of a
cosmetic !roduct $as found to ha"e a si)nificant !ositi"e im!act on consumers !rice
insensiti"ity% Ho$e"er' the !ercei"ed emotional "alue of a cosmetic !roduct $as
found to ha"e no si)nificant im!act on consumers #eha"ioural intentions%
.2 Mareting I0plication"
In order to stri"e in Chinas cosmetic mar&et' it is crucial for com!anies to maintain
consumers #rand loyalty% This research study offers some mar&etin) insi)hts in terms
of ho$ to increase consumers #rand loyalty #y caterin) to consumers !ercei"ed
#rand "alue%
Research findin)s su))est that in order to increase consumers !urchase intention and
$ord*of*mouth communication' mar&eters should mainly focus on increasin) the
,uality "alue of a cosmetic !roduct% 5or e7am!le' $hen desi)nin) an ad"ertisementfor a cosmetic !roduct' it should focus on em!hasiJin) the ,uality "alue instead of the
emotional "alue of the !roduct% To cater for Chinese female consumers !ercei"ed
#rand "alue' cosmetic com!anies should !osition themsel"es in the mar&et clearly
$hile achie"in) a #rand conce!t that focus on the utilitarian com!onent of a !roduct'
such as e7cellent !roduct ,uality' consistent !roduct ,uality and !erformance' instead
of the hedonic com!onent of a !roduct' such as #rand conce!t that ad"ocates a
distinct !ersonality' a sense of fun and e7u#erance% Since Chinese consumers #rand
!erce!tions and #rand choice are hi)hly connected to their self*conce!t -8e' Bose andelton' 2.11/' it is crucial for com!anies to #uild #rand conce!ts that are consistent to
their tar)et consumers self*conce!t and needs%
To cater for Chinese consumers needs for )ood ,uality "alue' cosmetic com!anies
may also focus more on usin) ad"anced technolo)y to !roduce !roducts $ith hi)h
,uality "alue such as !roducts made from all natural in)redients' !roducts $ith )ood
s&in !reser"in) ,ualities or !roducts suita#le for sensiti"e s&in condition% It is also
im!ortant for cosmetics com!anies to maintain )ood standard of !roduct ,uality at all
time and ensure that their !roducts !erform consistently' to a"oid consumers
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com!lainin) or s$itchin) #eha"iour%
0s for increasin) consumers !rice insensiti"ity' mar&eters should try to !romote
,uality' !rice and social "alue of a cosmetic !roduct% ?ar&eters can desi)n
!romotional cam!ai)ns $hich send out a messa)e that the !roduct is of "ery )ood
,uality' at a reasona#le !rice and can hel! consumers )ain social a!!ro"al% 5or
!romotin) colour cosmetics and fra)rances' mar&eters may stress on the social "alue
of the !roduct $hile !romotin) other cosmetic !roducts' social "alue is less im!ortant%
.& $cade0ic i0plication"
This research !ro"ides a su#stanti"e insi)ht of Chinese female consumers !ercei"ed
#rand "alue and its influences on #eha"ioural intentions $hich intends to add on to
the !re"ious literature% Theoretical contri#utions !roduced from the research findin)s
also include ho$ a)e' monthly income and !roduct cate)ory affect Chinese female
consumers !ercei"ed #rand "alue of a cosmetic !roduct% This im!lies that consumers
!ercei"ed #rand "alue can #e influenced #y "arious !ersonal' conditional and
situational factors% Thus' future researches on this to!ic are hi)hly recommended to
in"esti)ate in those factors%
.3 Re"earch li0itation" and !uture Re"earch
In this research' the !ercei"ed #rand "alue of Chinese consumers and its influence on
#rand loyalty is #ein) studied% +es!ite "arious constructi"e findin)s )ained from the
research' some limitations e7isted in this research study% The selected sam!le only
included a#out t$o hundred Chinese female !artici!ants #et$een the a)e of ei)hteen
and fifty% 5uture research can #e done $ith !artici!ants from more different a)e
)rou!s and on a lar)er sam!le siJe% Other than that' this research only studied ho$
!artici!ants a)e' monthly income and chosen !roduct cate)ory influence their
!ercei"ed #rand "alue of a !roduct% Hence' it is recommended that future research
study can include more other factors into the study' such as education le"el'
=
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occu!ation and )eo)ra!hic factors' $hile ado!tin) the same frame$or&%
Chapter (i): Re*erence"
0nderson' E%9% and Sulli"an' ?%9% -133./ Customer Satisfaction and Retention
across Firms resentation at the TI?S Colle)e of ?ar&etin) S!ecial Interest
Conference on Ser"ices ?ar&etin)' Se!tem#er%
Ba#in' B%
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store #rands'M International Journal of Retail and Distribution Management' 35' !!%
62>;6:1%
Batra' R% and 0htola' O%T% -133./ ?easurin) the Hedonic and Utilitarian Sources of
Consumer 0ttitude'MMareting !etters, 2-2/' !!% 1=3;1.%
Bhas&aran' S% Su&umaran' N%-2../ Conte7tual and methodolo)ical issues in
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and BeyondM'#uromonitor International
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?onroe' % B% -133./% "ricing) maing $rofitable decisions, 2nd edn% Ne$ 8or&D
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S$eeney'
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8e' L%' Bose' ?% and elton' L% -2.12/ +is!ellin) the collecti"e myth of Chinese
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$ppendice"
$ppendi) 1: 6ue"tionnaire@uestionnaire
Section One *artici!ants information
1% 0)e
a% 1>*6. #% 61*:. c% :1*=.
2% ?onthly income
a% P 6... #% 6...*=... c% =...*1.... d% 1....*2.... e% 2....
6% The cate)ory of last !urchased cosmetics !roduct
a% Hair care !roduct #% S&in care !roduct c% Colour cosmetics d% 5ra)rances
4=
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Section T$o *ercei"ed #rand "alue -B/
lease thin& of your last !urchased cosmetics !roduct and rate the follo$in)
statement% -Circle oneof the follo$in) o!tions that matches each ,uestion/
Item Stron)l
y
disa)ree
+isa)ree Neutral 0)ree Stron)ly
a)ree
1% This !roduct has consistent ,uality% 1 2 6 : =
2% This !roduct is $ell made% 1 2 6 : =
6% This !roduct has a )ood standard of
,uality%
1 2 6 : =
:% This !roduct $ould !erform consistently% 1 2 6 : =
=% This !roduct is one that I $ould en(oy% 1 2 6 : =
4% This !roduct is one that $ould ma&e me
$ant to use it%
1 2 6 : =
% This !roduct is one that I $ould feel
rela7ed a#out usin)%
1 2 6 : =
>% This !roduct $ould ma&e me feel )ood% 1 2 6 : =
3% This !roduct $ould )i"e me !leasure% 1 2 6 : =
1.% This !roduct is reasona#ly !riced% 1 2 6 : =
11% This !roduct offers "alue for money% 1 2 6 : =
12% This !roduct $ould #e economical% 1 2 6 : =
16% This !roduct $ould hel! me feel
acce!ta#le%
1 2 6 : =
1:% This !roduct $ould im!ro"e the $ay I am
!ercei"ed%
1 2 6 : =
1=% This !roduct $ould ma&e a )ood
im!ression on other !eo!le%
1 2 6 : =
14% This !roduct $ould )i"e me social
a!!ro"al%
1 2 6 : =
Section Three * Brand loyalty -BL/
lease thin& of your last !urchased cosmetics !roduct and rate the follo$in)
statement% -Circle oneof the follo$in) o!tions that matches each ,uestion/
Item Stron)l
y
+isa)ree Neutral 0)ree Stron)ly
a)ree
44
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disa)ree
1% I $ould say !ositi"e thin)s a#out this
!roduct to other !eo!le%
1 2 6 : =
2% I $ould recommend this !roduct tosomeone $ho see&s my ad"ice%
1 2 6 : =
6% I $ould encoura)e friends and relati"es to
use this !roduct%
1 2 6 : =
:% I $ould consider this !roduct my first
choice amon) other )eneric !roducts%
1 2 6 : =
=% I $ould !urchase this !roduct more often
in the future%
1 2 6 : =
4% I $ould !urchase this !roduct less often in
the future%
1 2 6 : =
% I $ould s$itch to !urchase )eneric
!roducts from other #rands that cost less%
1 2 6 : =
>% I $ould continue to !urchase )eneric
!roducts from other #rands that cost less%
1 2 6 : =
3% I $ould !ay a hi)her !rice for this !roduct
than other #rands char)e for the #enefits I
recei"ed%
1 2 6 : =
1.% I $ould s$itch to another #rand if I
e7!erience a !ro#lem $ith this !roduct%
1 2 6 : =
11% I $ould com!lain to other consumers if I
e7!erience a !ro#lem $ith this !roduct%
1 2 6 : =
12% I $ould com!lain to e7ternal a)encies if I
e7!erience a !ro#lem $ith this !roduct%
1 2 6 : =
$ppendi) 2: 6ue"tionnaire 5Chine"e ver"ion8
@uestionnaire -Chinese "ersion/
*
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