Abstract: Millennials' Consumer Buying Process for Cosmetics: A Comparative Study of Italy, United States, and China

Introduction and Research Question The cosmetic industry has been transformed by the impact of digital media and fast-changing needs of its complex consumer base, driven by Millennials, the most important age group in this... [ view full abstract ]

Introduction and Research Question

The cosmetic industry has been transformed by the impact of digital media and fast-changing needs of its complex consumer base, driven by Millennials, the most important age group in this market. Today, Generation Y uses online searches to gather information for their purchases, and thoroughly discusses cosmetic products both online and offline. Stages leading to purchases for cosmetics have been re-shaped and marketers thus need to gain knowledge about consumer behavior of their global target audience to develop effective marketing strategies. By using exploratory research, this study uncovers the characteristics of the consumer buying process for female Millennials in Italy, USA and China, to extract insights generalizable to the entire sample while highlighting differences between the three nationalities. The research model revolves around the following research question: “What is the buying process for cosmetics in Italy, USA, and China?” The paper attempts to explore and explain, through the application of the Engel-Kollat-Blackwell (EKB) five stages model, how the buying process for cosmetics differs in the Italian, American and Chinese markets. The objectives of the study are to:

1.      Identify the defining characteristics of the consumer buying process for cosmetics 

2.      Clarify how consumers in Italy, China, and the USA source information about cosmetics 

3.      Highlight the differences and similarities in decision making for cosmetics’ purchases between Italian, Chinese, and American consumers 

The exploration of the three consumer buying processes analyzes behavioral dynamics and striking differences of a globally thriving industry experiencing drastic changes in consumer habits. A deeper knowledge of how consumers commit to purchases is critical in understanding effective marketing solutions and elicit insights that industry players could take into consideration to developing their marketing solutions. 

Design/Methodology/Approach

The research design is explorative, as it more suitable to uncover insights, understand the nature of a phenomenon, and identify behavioral patterns (Malhotra et al., 2012). Since the aim of this study is to explore consumer buying process for the three different cultural clusters, the research method selected uses a qualitative approach by adopting the classic consumer behavior Engel-Kollat-Blackwell (EKB) model as theoretical framework to structure focus groups and analyze data and insights gathered through them (Engel et al., 1978). The model helps develop a semi-structured topic guide to be used by the moderator during focus groups to generate conversations addressing the participants’ consumption habits and preferences for their purchases and sets the basis for an analysis of the characteristics of the stages consumers go through when buying cosmetics: need recognition, information search, evaluation of alternatives, purchase decision, and post purchase behavior (Armstrong et al., 2014; Engel et al., 1978). Focus groups appear particularly appropriate for this study, as interpersonal communication between participants is apt to observe some behaviors and values as cultural group norms (Moisander and Valtonen, 2006; Kitzinger, 1995). The focus group sessions included three sets of focus groups of 6-10 people divided into national clusters: the Italian cluster, the American cluster, and the Chinese cluster. Findings were analyzed with the support of consumer behavior and marketing theory to identify the most relevant aspects of the consumer buying process for the selected markets. 

Findings

Results provide an overview of the consumer buying process’ characteristics for millennial Italian, American and Chinese consumers, revealing, although some differences are identifiable, most findings indicate convergence of buying patterns. Self-esteem needs, impulsive behavior, habitual buying behavior and desire for healthiness are the motives behind purchases, triggered and informed by experience complemented with external sources, such as friends’ suggestions, online searches, and in-store experiences. Brand loyalty is a distinguishing feature of the consumer base and in-store experience appears as a key influencing factor. These results partially correspond to the aspects of the general consumer buying process described by the literature but provide a different picture for the industry specific buying process, thus showing alternative patterns in purchasing decision-making exist. Results for the Italian cluster evidenced the importance of the concept of beauty routine and the tendency to rely on previous experiences for product knowledge. The American cluster does not significantly differ from the Italian one. However, the role of digital media and online searches in driving American consumers’ choices is more evident, together with a more widespread general awareness of trends and product characteristics. The Chinese cluster, instead, revealed unique findings in its need recognition stage’s characteristics. Chinese consumers’ need for cosmetics is often generated by desire of acceptance and enhancement of self-confidence in the work environment. Millennials start to consider cosmetics just towards the end of their studies, when they are approaching the job-hunting process.

Implications

The study indicates the EKB model is still a meaningful framework to conduct explorative research aiming at explaining consumer buying process for specific markets and uncovering behavioral insights. However, the recurrence of the same themes across the different stages of the process, such as the influence of social media or friends’ advice, suggests the model should no longer be considered as a sequence of actions, but rather an interrelated network of phases shaping consumer purchasing behavior. The application of the EKB model to the cosmetics market confirms dynamics of the stages described by the literature about consumer buying process theory. However, it also suggests industry-specific dynamics exist and they might contradict part of the literature. In particular, the theory suggests consumers are likely to engage in post-purchase research when they experience cognitive dissonance, while findings reveal this concept is not applicable to the cosmetics market (Engel et al., 1978).

The study indicates the characteristics of Millennials’ decision making and consumption for cosmetics are increasingly becoming similar in Italy, USA and China, indicating the cosmetics market is experiencing the effects of globalization. However, the differences emerged in the study between the three nationalities imply companies must carefully evaluate the cultural context of the markets in which they operate and adapt their marketing strategies accordingly. Even though dynamics appear analogous, the motives and factors determining purchasing choices for cosmetics can significantly vary between countries. For example, marketing efforts should aim at creating associations of brands with self-confidence and independence in Italy and America, where consumers want to use cosmetics to feel better with themselves. On the other hand, in China, the focus should be on activeness and energy, as consumers are looking for products to confidently enter and be recognized in the job market. In addition, the high level of brand loyalty and re-purchases characterizing the consumer base implies companies need to heavily invest in marketing efforts to seduce consumers and induce them to switch to new brands. A solution for emerging brands, for example, is to use captivating packaging and competitive pricing to attract impulse buyers who can become their early adopters. 

Originality/Value

This paper contributes to the theorization of consumer behavior for the industry of cosmetics and is relevant in the context of the study of consumer behavior and management, as it explores, through qualitative research methods based on focus groups, the characteristics of one strongest industries’ consumer base from an international perspective, thus providing insights on how to effectively implement marketing suitable strategies for changing consumers’ needs. The review of the literature reveals there is a gap in the research for cross cultural studies about consumer behavior in the cosmetics industry. In particular, most studies address the influence of internal and external factors on consumer behavior, but they do not aim at defining a systematic description of the buying process through theoretical frameworks, such as the EKB model. Therefore, this work aims to address this gap by drawing from studies conducted for other industries and contextualizing the methodology to the nature of the cosmetics industry. 

Limitations and Future Research

Although this study can offer an overview of the consumer buying process for cosmetics in the three different markets analyzed, the methodology used has limitations to be considered. The use of a qualitative approach, implies the specific direction of the research could be determined by subjectivity of the moderator. The interpretation of the data in a focus group and information collected can be subject to the bias of the researcher (Malhotra et al., 2012). However, this shortcoming was mitigated by considering both consumer behavior theory and literature about the industry, thus setting an unbiased context for coding data collected through focus groups. People participating in focus groups tend to drive the conversation towards topics and opinions considered socially acceptable, and in some cases, some participants might dominate the conversation, thus making it difficult to extract general group patterns and characteristics (Smithson, 2000). This risk was mitigated by the researcher and moderator using transition questions to encourage participants to express their opinion to re-establish a balanced conversation among all respondents. Qualitative analysis of the focus groups can be used to develop hypotheses to be tested with qualitative analysis, but its results, derived from the sample, cannot be generalized to larger population (Byers and Wilcox, 1995; Kellmereit, 2015). Future research may avail of quantitative methods to validate results in a second stage of the study, as a larger sample is likely to provide more accurate figures.