report business research consumer satisfaction about vaselines lip balm from 18 to 30 years old in ho chi minh city

1.2 Research objective This study aims to study factors that in昀氀uence customer sa琀椀sfac琀椀on ofVaseline lip balm in Ho Chi Minh city – Vietnam; to point out the most in昀氀uen琀椀alfactors r

The Ministry of Finance

UNIVERSITY OF FINANCE - MARKETING

-REPORTBusiness Research

CONSUMER SATISFACTION ABOUT VASELINE’S LIP BALMFROM 18 TO 30 YEARS OLD IN HO CHI MINH CITY

Subject Lecturer/Tutor: Bảo TrungClass: IP_21D01

Students:

1 Văn Công Khánh Lan - 21210131242 Võ Thanh Thúy Nga - 21210132653 Trần Khánh Linh - 21210137624 Trịnh Hoài Phương - 2121012567

HCMC - November 2022

ACKNOWLEDGEMENT

A completed study would not be done without any assistance Therefore, our group who conducted the research gratefully gives acknowledgement to our support and mo琀椀va琀椀on during the 琀椀me of doing this research as a requirement of comple琀椀ngBusiness Research subject.

First and foremost, I would like to epxpress my endless thanks and

gratefulness to my teacher, Mr Bảo Trung Throughout the process of 昀椀nishing our thesis, he o昀昀ered genuine encouragement and outgoing guidance His support and feedback substan琀椀ally deepened and enhanced our group’s work The thesis could not have been completed successfully without his encouragement and guidance

Second, we also acknowledge our thankfulness to all respondents who have done our online survey Without their help, our data and research could not have been completed on schedule.

Group 4 class IP_21D01

2.2.1 What is Customer Satisfaction Theory? 8

2.2.2 Customer Satisfaction Theories 9

3.4.3 Correla琀椀on and Regression 32

Chapter 4: RESEARCH RESULTS AND DISCUSSION 34

4.1 Introducing about Vaseline 34

5.2.1 About product quality 42

5.2.2 About product design and design 43

5.2.3 About company image 43

5.3 Limita琀椀on and further review 43

The objec琀椀ve of this research is to study the factors that in昀氀uence customersa琀椀sfac琀椀on of Vaseline lip balm in Ho Chi Minh city – Vietnam; to point out the mostin昀氀uen琀椀al factors rela琀椀ng to customer sa琀椀sfac琀椀on of Vaseline lip balm in Ho ChiMinh city This study adopted an online survey research design where ques琀椀onnaireswere sampled using the convenience sampling method 156 people were selectedand obtained various responses based on ques琀椀onnaire method for quan琀椀ta琀椀veresearch Our group uses SPSS to 昀椀nd out Cronbach’s Alpha, EFA, Correla琀椀on andRegression of our data from an online survey

Keywords: Vaseline, Lip Balm, Sa琀椀sfac琀椀on and Consump琀椀on

Chapter 1: INTRODUCTION1.1 Background of the study

Customer satisfaction is gradually becoming a major concern of mostcompanies and organizations to improve products and service quality, maintaincustomer loyalty in a competitive market

The underlying driving force for this concern is that higher customersatisfaction will lead to a solid position for the company in the market along withgreater profits and market share

Often, customer satisfaction is also seen as an essential determinant of theirreturn to purchase, the spread of positive word of mouth, and their loyalty Whencustomers are satisfied with products and services, they will come back and buy more,and they will tell others about this buying experience

A high customer satisfaction index brings a lot of benefits to the company suchas: increasing customer loyalty, strengthening the reputation of the business, reducingprice elasticity, reducing costs for future’s transactions, and improving employeeperformance There are many reports and studies that relate to customer satisfaction inorder to serve companies and businesses; however, those only mention other businesslines or cosmetic products in general Our study prefers to analyze a specific productof a popular brand in the cosmetic industry

1.2 Research objective

This study aims to study factors that in昀氀uence customer sa琀椀sfac琀椀on ofVaseline lip balm in Ho Chi Minh city – Vietnam; to point out the most in昀氀uen琀椀alfactors rela琀椀ng to customer sa琀椀sfac琀椀on of Vaseline lip balm in Ho Chi Minh city; toinvestigate the strengths of Vaseline’s product, specifically lip balm and the purpose isto determine the effectiveness and quality of the product This study is also designed toassess the actual level of customer expectations and satisfaction compared to productquality

RQ.2: What does the customer want the manufacturer to fix and improve?

1.4 Subject & scope of research

1.4.1 Subject

The subject of the study is customer satisfaction of Vaseline lip balm

Specifically, the study focuses on 18-30 year old customers and their satisfaction with Vaseline lip balm.

1.4.2 Scope

The scope of the study includes collecting and analyzing data on customer satisfaction with Vaseline lip balm among the target age group The study may consider factors such as product quality, pricing, packaging, ease of use, and effectiveness in meeting customer needs The study may also analyze customer preferences and behaviors related to lip balm usage, such as frequency of use,

purchase habits, and brand loyalty The study does not include customer satisfaction with other brands of lip balm or other Vaseline products beyond lip balm

Additionally, the study is limited to customers within the 18-30 age range and does notconsider the satisfaction levels of customers outside of this age range.

1.5 Research methodology

The study first use qualitative research by paraphrasing other previous

researches Second, our group used quantitative research by our online survey with a list of questions including 20 questions based on Likert scale and 4 demographic questions with 156 respondents; after that, our group use SPSS in order to test Cronbach’s Alpha, EFA, Correlation and Regression of the data

1.6 Structure

The rest of the paper is structured as below First, we would like to introduce our topic Second, we review the relevant literature related to the factors that affect customer satisfaction (perceived price, perceived quality, customer expectations, brandimage, and promotion) Next chapter we will discuss the methodology that our group use in this Chapter 4 is the chapter for us to introduce about the cooperation and the result from our own online survey we have conducted Last chapter is the conclusion, managerial implication, and limitation and further review

Chapter 2: LITERATURE REVIEW2.1 Concepts

According to Woodruff (1997), satisfaction is defined as a generally positive ornegative feeling about the true value of a service received from a supplier.

According to Philip Kotler (1997), customer satisfaction is the result of experiencesthroughout the shopping process, including specific steps: perception of need, searchfor information, evaluation of alternatives, decision-making, and post-purchasebehavior.

Oliver (1997) argues that satisfaction is a consumer's response to the fulfillmentof wants.

Philip Kotler (2000) defines satisfaction as the degree of a person's sensorystate resulting from comparing the results obtained from consuming a product with theperson's expectations The level of satisfaction depends on the difference between theresults received and the expectations.

According to Lin & Sun (2009), satisfaction is a measure of experience relatedto customers' evaluations of their past purchases and their shopping experiences.

According to Vo Khanh Toan (2008), customer satisfaction is the customer'sevaluation and feeling about a product or service that has met the needs andexpectations of the customer.

-What is the consumer’s consumption behavior?

Consumer Buying Behavior Refers to the Study of Customers and How they arewhile deciding to buy a product that satisfies their needs It is a Study of the Actions ofthe Consumers that drive them to buy and use Certain Products Consumer behavioranalysis has emerged as an important tool for understanding your customers Bylooking into consumer psychology and the forces behind customer buying behavior,companies can craft new products and marketing campaigns and increase profitability.

Understanding consumer buying behavior is most important for Marketers as ithelps to relate better to the expectation of the consumers Companies should talk toconsumers, watch out for frustrations, and, most importantly, identify their needs andexpectations

-What is customer satisfaction?

Customer satisfaction is defined as a measurement that determines how happycustomers are with a company’s products, services, and capabilities Customersatisfaction information, including surveys and ratings, can help a company determinehow to best improve or change its products and services.

Customer satisfaction is a general principle of customer service It measures acustomer’s perception of the quality and utility of a product or service Customersatisfaction can be measured by offering a service, or product or by having arelationship with a company, brand, or individual.

Customer satisfaction is the cornerstone of any business, not just those in theservice industry Understanding your customers and creating a system to create asatisfying experience for them will enable you to boost your profits and repeatcustomers To achieve customer satisfaction, you must understand your customers’needs and wants and their pain points Only then can you make sure they are fulfilledwith each interaction

Customer satisfaction (hereinafter referred to as satisfaction) is one of theimportant topics that have been receiving the attention of companies and organizationsin efforts to improve product quality and service, as well as maintain the loyalty ofcustomers in the increasingly fierce competitive business environment (Loughlin &Coenders, 2002) One of the reasons that promotes the concern for satisfaction is thathigher satisfaction will create a stronger competitive position, thus, leading to higherprofits and market share (Fornell, 1992 ) Satisfaction has also been shown to have apositive impact on repeated buying, mouth, and loyalty of customers Customers whoare satisfied will return to buy and tell others about their experiences (Fornell et al.,1996) High levels of satisfaction bring many benefits for companies such asincreasing loyalty, improving reputation, flexibility in discounts, lower costs for futuretransactions, and high labor efficiency more (Anderson et al., 1994; Fornell, 1992).Understanding that importance, there are a number of national newspapers reflectingthe overall satisfaction of organizations that have been developed strongly, and one ofthe methods is being used widely in many countries currently the American CustomerSatisfaction Index (ACSI) developed by Fornell Later in 1994, American CustomerSatisfaction Index (ACSI) was launched (Fornell, 1996) In the ACSI model customerexpectation, perception of quality, and perceived value was introduced as the

antecedents of customer satisfaction, customer loyalty, and customer complaint asconsequences ACSI indicates a cause-and-effect relationship centered on satisfactionand its prefix and suffix For two reasons:

- This model introduces many important prefixes and suffixes of satisfaction It isvery important for both researchers and people who work on satisfaction toknow what factors influence satisfaction and the influence of satisfaction onrelated concepts directly to the overall performance of the organization.

- ACSI's methodology is robust and it can be easily applied in various productsand services, including information technology and mobile services (Serenko etal., 2006).

Figure 1: American customer sa琀椀sfac琀椀on index

2.2 Theories

Sinc1e the 1970s, researchers in consumer behavior and marketing in developedcountries have conducted comprehensive studies on customer satisfaction (Spreng etal., 1996) In 1989, Fornell and his associates helped Sweden build the first nationalmeasurement system for customer satisfaction – the Swedish Customer SatisfactionInstrument (SCSB) (Fornell, 1992) The Swedish Customer Satisfaction Index (SCSB)is the first national customer satisfaction index applied to products and servicespurchased and consumed domestically (Fornell, 1992) The original SCSB modelconsisted of two main satisfaction antecedents: (1) the customer's perception of theproduct/service experience, and (2) the customer's expectations of that product/service.Accordingly, the result of increased satisfaction is reduced complaints and increasedPerceived quality

Customerexpecta琀椀ons

Perceived value

(ACSI)

Customer loyalty

Then, in 1994, the American customer satisfaction index (ASCI) was built(Fornell et al., 1996) based on the original SCSB model The ACSI model represents acustomer-based measurement system for evaluating and enhancing the performance ofcompanies, industries, sectors, and national economies (Johnson et al., 2001) ACSImeasures the quality of goods and services according to the experience of thecustomers consuming them The ACSI model predicts that as both perceived value andperceived quality increase, customer satisfaction will increase (Fornell et al., 1996).Expected customization and expected reliability are two latent variables that are usedto measure customer expectations and satisfaction through three measures, includingcommon expectations, customized expectations, and expected reliability (Loughlin &Coenders, 2002) The main difference between the SCSB model and the ACSI modelis the addition of a perceived quality component, independent of perceived value, andthe addition of a measure of customer expectations (Fornell et al , 1996).

The Norwegian Customer Satisfaction Index Model – NCSB, is the successor tothe original ACSI model, except it includes additional company image and itsrelationships to customer satisfaction and customer’s loyalty (Fornell et al., 1996) TheNCSB model differs from the ACSI model for three important reasons (Yang et al.,2000): (1) The NCSB model uses the introduction of SERVQUAL to measure servicequality; (2) the NCSB model focuses on showcasing the company's reputation; and (3)the NCSB model that replaces the concept of customer complaints with the concept ofcomplaint handling.

The European Customer Satisfaction Index (ECSI) model has many differencesfrom the ACSI model (Eklof, 2000) The ECSI model is a measure of customersatisfaction, it is inherited from the SCSB model (Fornell, 1992), and is compatiblewith the ACSI model (Fornell et al., 1996) The ECSI model is based on well-established methods of customer behavior and can be used in different industries.Bayol et al (2000) illustrated that ECSI model contains 7 related variables: (1) Coremodel, i.e traditional latent variables (including: Perceived quality, expectations,perceived value, satisfaction and loyalty): bolded for structures with impacts shown bysolid lines; (2) two optional latent variables may be added by national committees:Images and claims are italicized with impacts shown by the dotted line Johnson et al.(2001) argue that there are two differences between ACSI and ECSI models: (1) ECSI

model does not assume that the rate of complaint behavior is the result of satisfaction;(2) according to the original NCSBN model, the ECSI model incorporates corporateimage as a latent variable in the model Designated corporate image has a directinfluence on customer expectations, satisfaction and loyalty.

From the synthesis of popular satisfaction indexes in the world today, theauthors found that there are two popular models: ACSI and ECSI; however, ECSI isessentially the modified successor to ACSI In addition, there are now many countriesaround the world that have applied ACSI's model such as: Korea, Singapore, Thailand,Indonesia, India, Brazil , as well as the recognition of the role of scholars by scholarson the role of ACSI The importance of ACSI is also published in prestigious scientificjournals (Fornell et al., 1996; Anderson and Fornell, 2000; Johnson et al., 2001).

By the mid-1990s, customer satisfaction indexes were gradually beingrecognized by governments and companies worldwide as a good tool for measuringoutput quality at the country or company level (Yang et al et al., 2000) Manycountries have built customer satisfaction indexes for their economies based on theACSI model and are used in many studies in different areas, including mobilecommunication services However, at present, there are not many similar studies inVietnam, therefore, this study aims to understand the applicability of the ACSI modelto the telecommunications service industry in Vietnam, by studying the relationshipbetween expectations, perceived quality, perceived value, satisfaction, loyalty, andcomplaints.

2.2.1 What is Customer Satisfaction Theory?

Customer satisfaction is a general principle of customer service It measures acustomer’s perception of the quality and utility of a product or service Customersatisfaction can be measured by offering a service, or product or by having arelationship with a company, brand, or individual.

Customer satisfaction theory was introduced by Fred Reichheld in his book TheUltimate Question: Driving Good Profits and True Growth which was published in2003 It was based on a study of over 25,000 customers from 1998 – 2003.

Customer satisfaction is the cornerstone of any business, not just those in theservice industry Understanding your customers and creating a system to create a

satisfying experience for them will enable you to boost your profits and repeatcustomers.

To achieve customer satisfaction, you must understand your customers’ needsand wants and their pain points Only then can you make sure they are fulfilled witheach interaction

2.2.2 Customer Satisfaction Theories

2.2.2.1 Dissonance Theory

Dissonance Theory (also known as dissonance reduction theory) is a term usedin psychology that refers to the mental stress experienced by someone whosimultaneously holds two or more contradictory beliefs, ideas, or values In otherwords, they find themselves in conflict.

It also suggests that a person who expected a high-value product and received a

low-value product would recognize the disparity and experience cognitive dissonance.

That is, the disconfirmed expectations create a state of dissonance or psychologicaldiscomfort

Dissonance Theory can explain our present experience of cognitive dissonancewhen a customer experiences the physical manifestation of a company’s brandpromise but does not receive the level of customer service he or she expected

For example, you purchase an expensive pair of headphones from a well-knownbrand You take them home and find that the headphones are defective

When you contact the customer service department about this problem, yourcall is routed to a voice mailbox where you’re told to leave a message and will becontacted within 24 hours You never receive a call back so you call again severaltimes over the next several days

2.2.2.2 Contrast Theory

It is another well-known theory of customer satisfaction Contrast Theorysuggests the opposite of the Dissonance Theory According to this theory, when actualproduct performance falls short of the consumer’s expectations about the product, thecontrast between the expectation and outcome will cause the consumer to exaggeratethe disparity.

It implies that the negative impact of actual product performance on customersatisfaction is greater than the positive impact of higher performance over lowerperformance.

Contrast Theory states that, when the expectation of a product is high and theactual product performance is perceived to be low, the consumer will exaggerate thedifference between the expectation and the outcome.

Contrast theory proposes that we do not judge qualities on the basis of absolutestandards, but rather on the basis of how they compare with other qualities.

2.2.2.3 Comparison Level Theory

According to the HLT, satisfaction is not the evaluation of a product or serviceafter it has been consumed Instead, it is the comparison level, or the degree to which aproduct or service is better than any of the other options that are available in themarket

The theory suggests that consumers set a comparison level in their minds withrespect to several aspects while they begin evaluating a product or service Theseaspects include:

- The price at which the product was purchased- The expectations pertaining to quality

- The expectations pertaining to performance

- The expectations pertaining to features and functionalities of the product

- The comparison level set by an individual’s peers, family members, and friends- The comparison level was set by all other customers who bought the same

Critics of this theory suggest that it is nuanced and that it is incomplete One ofthe main criticisms made of CLT is that it does not take into account other importantdeterminants of customer satisfaction, such as relevance and quality (Yi, 1990)

2.2.2.4 Value Percept Theory

Value percept is a popular theory on customer satisfaction This can be seenclearly in many of the recurrent types of cases, such as cases involving brandswitching, cases involving the failure of trial products, and cases involving thepurchase of services

A common characteristic in such cases is that consumers base their evaluationson products, services, and brands that are absent from their initial perceptions Value-Percept Disparity theory has also been applied to explain why consumers value somebrands, products, and services over others, even if these other brands, products, andservices are more highly expected (e.g., Westbrook 1992).

The Value-Percept theory explains customer satisfaction by two factors that arecentral to customer perception of value – Actual Value (AV) and Ideal Value (IV).AV is the actual quality or performance of a product that is perceived by a customer

IV is the “ideal” quality or performance of a product that a customer expectsbefore purchasing the product The difference between AV and IV can be namedPerceptual Discrepancy (PD)

Frequently these reasons are highly core, related to each other, a state of affairswe refer to as inter-correlated attributions In that case, we can use a simpler modelthat attributes the “blame” to one of these reasons The most frequently occurringreason is then called the primary cause.

The attribution theory was developed in the domain of social psychology byFritz Heider, Dorwin Cartwright, and Leonard Bostwick in a publication entitled “ThePsychology of Judgment” In this publication, the authors pointed out that people are

rational in their judgment processes and that there are conditions under which theirjudgment is rational

These researchers argued that there are three criteria for attribution to be made:consistency, consensus, and coherence or correspondence.

The consistency criterion includes the notion that when an outcome occurs,people need to find reasons to account for it.

From my understanding, equity theory in customer satisfaction applies to anykind of purchase The buyer has a sense of how the product or service is going to turnout, with what to expect from the business or brand

When that buying decision takes place, the seller needs to make sure that theexperience is consistent with the seller’s promise of what is to be received If not, thenthe buyer has been provided with an uneven or inequitable exchange of money forgoods or services This causes dissatisfaction.

When I think of equity theory applied to customer satisfaction, I think of it froma transactional point of view

2.2.2.7 Evaluative Congruity Theory

Evaluative congruity theory (sometimes abbreviated as EC theory) is a process model of attitude formation and change The goal of EC theory is to explainthe formation and change of attitudes, although it has a broader application as well

dual-The EC theory posits that attitudes are formed from two different types ofevaluations: “incorporating” evaluations and “social comparison” evaluations It

assumes that incorporating evaluations are automatically processed whereas social

comparison evaluations require additional effort to process.

Evaluative Congruity describes the extent to which a consumer’s emotions withrespect to the evaluative beliefs and attitudes he or she holds about the consumptionexperience.

It can be applied to all types of services such as hospitality, retail, leisure, andhealthcare Evaluative congruity has also been extended to other areas such asorganizational behavior, marketing, and management.

2.3 Relevant research

An empirical research on customer satisfaction study: a consideration ofdifferent levels of performance by Yu-Cheng Lee, Yu-Che Wang This study applied

the Taiwan Customer Satisfaction Index model to a tourism factory to analyze

customer satisfaction and loyalty

Figure 2: Taiwan customer sa琀椀sfac琀椀on index

The Effect of Price and Product Quality Towards Customer Satisfaction andCustomer Loyalty on Madura Batik of Pribanus Wantara and Muhammad Tambrin in

2019 mentions the Relationship between Price and Customer Satisfaction According

to Han, et al in Djumarno et al., it is possible that price suitability can supportcustomer satisfaction after achieving the desired level of customer benefits that

encourages customers to continue to trust and make repeat purchases Relationship

between Customer Satisfaction and Customer Loyalty Lovelock, et al argue that highly

satisfied customers or even favor services tend to be loyal supporters of the companyand spread positive news Dissatisfaction reverses the customer and becomes the

Customerexpecta琀椀ons

Perceivedquality

Perceivedvalue

(TCSI)

deciding factor in switching behavior Broadly speaking, customer satisfactionprovides two main benefits for the company, namely in the form of loyalty andengagement in positive word-of-mouth recommendations Customer satisfaction andloyalty should be incorporated into the long-term goal of a business.

By having good quality for, it will lead the customers to get satisfied with theselected product The research done by Putra, et al., (2017) on Brawijaya University

students majoring in Business Administration indicated that product quality positively

and significantly influenced the customers' satisfaction where the higher product

quality went, the greater customers' satisfaction the product would get Furthermore,

this was also supported by Ghassani and Suryoko (2017) in their research in Semarangshowing that product quality influenced positively and significantly towards customer

satisfaction So did with a research by Tombeng, et al., (2019) in Manado In addition,

Sari and Lestari (2019) in their research implemented to the customers of the ArgoParahyangan executive train explained that product quality influenced positively andsignificantly towards customer satisfaction

Other research, Impact of Price, Product Quality, and Promotion on ConsumerSatisfaction in Cosmetics and Skincare by Yohanes Gunawan Wibowo , ReriHerawati Wulandar, Nurul Qomariah from Universitas Muhammadiyah Jember in2021 This research is a causal research, where causality research aims to measure thestrength of the relationship between two or more variables, and also shows thedirection of the relationship between the independent and dependent variables Theresults showed that price, product quality and promotion had a positive and significantinfluence on consumer satisfaction at Alfabelenskin Pusat Banyuwangi

Anggriana et al., 2017 states that the variables of price, promotion, servicequality affect customer satisfaction for online motorcycle taxi services "Om-Jek"Jember where each variable has a positive and significant effect on customersatisfaction for online motorcycle taxi services "Om-Jek" Jember Research (Qomariahet al.,2020)states that price affects customer satisfaction at Retail Basmalah PakusariJember (Mahendra et al., 2019)in his research stated that there was a significantpositive simultaneous effect between price, promotion, and viral marketing onconsumer satisfaction at Swiwings Chicken in Jember Research (Iriyanti et al.,2016)states that there is a positive and significant relationship between price, product

quality, and location on customer loyalty through satisfaction as an interveningvariable (Yanuar et al.,2017)in his research stated that product quality, price,promotion, and service quality had a significant influence on customer satisfaction atOptik Marlin Jember Branch on Jl Raya Sultan Agung No 183-185 (Jompo ShoppingCenter) Jember Other studies that also examine the relationship between marketingmix and customer satisfaction include:(Putro et al., 2014), (Surjaatmadja et al., 2019),(Qomariah, 2018), (Mahendra et al., 2019), (Rosalina et al., 2019), (Yanuar et al.,2017), (Yulisetiarini & Prahasta,2019), (Setyawati et al., 2018), (Qomariah et al.,2020).

Table 1: Summary table of relevant research

Yu-Cheng Lee (Chung Hua University)Yi-Hsieh (Taipei College of Maritime Technology) (2016)

A consideration of different levels of performance

Research on customer

satisfaction study (Taiwan)

The results show that perceived quality had the greatest influence on the customer satisfaction for satisfied and dissatisfied

customers And in terms of customer loyalty, customer satisfaction is more important than image for satisfied and dissatisfied customersErnesto Jose

Tjahjono, Lena Ellitan, Yuliasti Ika Handayani

Determining and examining the effect of product quality on

Quantitative research, distributing questionnaires to

The results showed that there was a positive and significant

(Unika Widya Mandala

University) (2016)

purchasing decisions, the influence of brand image on

purchasing decisions, the influence of purchasing decisions on customer

satisfaction, the effect of product quality on

customer satisfaction

120 respondents relationship between product quality and brand image variableson purchasing

decisions, which means that good product quality and good brand image will create purchasingdecisions for

Putra, et al (2017) The impact of product quality, price, and distribution on satisfaction and loyalty

Quantitative research by using asurvey as a data collection tool

Product quality positively and significantly influenced the customers’

satisfaction where thehigher product

quality, the greater customers’

satisfaction the product would get Yohanes Gunawan

Wibowo, Reri Herawati

Wulandari, Nurul Qomariah

Determining and analyzing the effect of price, product quality, and promotion on

Quantitative descriptive study using purposive sampling method with a sample of

The results showed that price, product quality and promotionhad a positive and significant influence

(Universitas Muhammadiyah Jember) (2021)

consumer satisfaction at Alfabelenskin Pusat Banyuwangi

100 respondents on consumer satisfaction at Alfabelenskin Pusat Banyuwangi

2.4 Hypothesis

Vaseline is a trademark of a range of Unilever wax products Vaseline’s products include lotions, fragrances, cleansers, and deodorants Its mission is “We believe skin health is essential for health And we are on a mission to give people everywhere access to the skin care they need” “Skin health” and “skincare they need” are keywords that Vaseline targets, showing that it is a company that focuses on skin care, some famous products such as body lotion, anti-wrinkle cream, but the most popular, and causing a stir for a long time in the cosmetic industry as well as

customers is lip balm

Vaseline lip balm has been used in more than 60 countries worldwide In 2019, there were 13 unit sales in millions in the US, rated 5 in 10 lip balm brands in the US.Although in the present time, there are many brands that have been launched because of the escalation in the number of people caring about skincare and their lips, Vaseline lip balm is still one of the products that customers have preferred to buy and trust for years Which hypothesis helps Vaseline satisfy customers for many years?

2.4.1 Perceived price

According to Zeithaml (1988), from the customer's view, ‘price is what is givenup or sacrificed to obtain a product or service’ Bei ad Chiao (2001) indicated that ‘theprice is defined as what is given up or sacrificed to acquire a service or product, whileKotler and Armstrong (2012) suggested that ‘Price is the amount of money charged fora product or a service; the sum of the values that customers exchange for the benefitsof having or using a product or service’, we find that price has an impact oncustomer’s decision as customer will decide whether the product is worth its price

This factor also appears in the research of Ismail Razak et al (2016) [Ismail

Razak, Nazief Nirwanto, Boge Triatmanto (2016 ) The Impact of Product Quality andPrice on Customer Satisfaction with the Mediator of Customer Value Malang:Journal of Marketing and Consumer Research]; Selim Ahmed et al (2015) [Selim

AHMED and Md Habibur RAHMAN (2015) THE EFFECTS OF MARKETING MIXON CONSUMER SATISFACTION: A LITERATURE REVIEW FROM ISLAMICPERSPECTIVES] Consequently, hypothesis H1 is put forward

Hypothesis H1: Perceived price has a positive influence on customer satisfactionwhen using Vaseline lip balm

2.4.2 Perceived quality

According to Zeithaml (1988), ‘quality can be defined broadly as superiority orexcellence’ Here, Kotler and Armstrong (2012) described that a ‘product is anythingthat can be offered to a market for attention, acquisition, use, or consumption thatMIGHT satisfy a want or need’, while Aaker (1994), quoted Ehsani (2015) said that‘quality of product is the customer’s perception of the overall quality or superiority ofthe product or service, with respect to its intended purpose, relative to alternatives’,Kotler and Armstrong (2012) assumed that product quality is ‘Product quality is thecharacteristic of a product or service that bear on its ability to satisfy stated or impliedcustomer needs’

According to research by Andrew Madans [Andrew Madans, Katie Pilarz,

Christine Pitner, Shailly Prasad (n.d.) A Performance Analysis of Lip Balm], the

application of lip balm creates a layer of immiscible oil on our lip surface Regular lipbalm serve as sealant for our lips; the layer created by the lip balm is a protective coatbetween our lips and whatever boundary condition the weather creates at the air-lipbalm interface and in Vaseline, there is an ingredient that helps it become one of thebest lips balm - that is petroleum jelly Petroleum jelly is often used in personal careproducts as a moisturizing agent, when properly defined, petrolatum has no known

health concerns [Petrolatum, Petroleum Jelly Campaign for Safe Cosmetics].

Moreover, this kind of ingredient is easy to find at a cheap price, so this lip balm issold for customers with a reasonable price but with good quality Therefore,hypothesis H2 is

Hypothesis H2: Perceived quality influences positively on customer satisfactionwhen they use Vaseline lip balm

2.4.3 Customer expectations

As reported by Richard L Oliver (2006), generally, an expectation is an anticipation offuture consequences based on prior experience and other many varied sources of

information Expectations can also be described as a comparative referent for

performance The reason is that performance alone is an unreferenced concept,

[Oliver, R L (2006) The Handbook of Marketing Research: Uses, Misuses, andFuture Advances, Chapter 27 SAGE Publications, Inc.] Nicole Madison (2023) said

that customers feel less satisfied when they expect something from a company but donot get what they expected On the other hand, if they have low expectations of acompany and are pleasantly surprised, they may feel more satisfied than if they hadhigh expectations and feel they have been let down Nikki Tiu - a beauty blogger saidshe invariably cares about her lip skin She knew Vaseline is good, and well-trusted,but it is always NOT ENOUGH for her dry and parched lips but Vaseline was a ‘good- listener’ and it had improved its product to satisfy customer’s needs Nikki testedVaseline lip care and she was happy to announce that this surpassed her expectations

[Tiu, N (2023, February 27) Your Daily Dose of Sunshine Retrieved from

askmewhats: http://www.askmewhats.com/] As a consequence, hypothesis H3 is putforward:

Hypothesis H3: Customer expectations have a positive influence on customersatisfaction when they use Vaseline lip balm

2.4.4 Brand image

Chih - Chung has said ‘Good brand image makes consumers believe in productquality and assists consumers to make a choice and to feel comfortable while

purchasing their product (Chill - Chung et al., 2012) Kotler (1991) refers to brand

image as combining name, fame (reputation), design, and symbol It is used byconsumers to distinguish products and services from competitors Farquhar (1989)states that brand image has additional value beyond product function and service.Greve (2014) also measured brand image using a scale containing three items: value,

realized (perceived) quality and uniqueness [Ieila Behboudi, Sayed Hamid Khodadad

Hosseini (2017 ) Brand trust and image: effects on customer satisfaction.International Journal of Health Care Quality Assurance] Vaseline has been a vital

addition to a variety of fields for 150 years and has been a part of skincare routines formore than a century Moreover, Vaseline is famous for being a ‘good listener’,understanding of how skin works and customers all over the world When peoplemention lip balm, Vaseline is a brand that people remember and prefer to buy although

they haven’t used any products yet Therefore, a positive brand image will tend togenerate higher customer satisfaction with Vaseline’s lip balm In conclusion,hypothesis H4 is put forward

Hypothesis H4: Brand image has a positive influence on customer satisfaction whenthey use Vaseline lip balm

2.4.5 Promotion

In general terms, promotion is defined as a one-way flow of information orpersuasion created to direct a person or organization to actions that create exchanges inmarketing (Swastha, 2007) Promotion is a broad-based expression of activities oractivities that are effectively carried out by companies (sellers) to encourageconsumers to buy the products or services offered (Sukirno, Zakaria, & Poerwanto,

2014) [Anugrah, F T (2020) Effect of Promotion and Ease of Use on Customer

Satisfaction and Loyalty on OVO Application Users Quantitative Economics andManagement Studies (QEMS)] Vaseline has employed every kind of marketing

strategy over years To raise customer awareness, in Vietnam, Vaseline sells itsproducts and runs promotions through retail distributors such as Hasaki, Lam ThaoCosmetics and e-commerce platforms such as Shopee, Lazada For example, Hasaki -a famous retail distributor always has a promotion which is called ‘hot deal’ inVietnam for Vaseline’s lip balm The original price of the product is 65.000 VND andHasaki will have a ‘hot deal’ for a short time with the sale price being 59.000 VND toattract customers, and Hasaki also free the amount of fee for delivery Customers thinkthat they bought the product at a good and cheap price so Vaseline’s lip balm 7g isalways sold out in a very short time and customers feel satisfied because of the cheapprice However, this promotion runs all year round and 59.000 VND is actually the

original price [vi, v (n.d.) Cẩm nang làm đẹp Retrieved from Hasaki:

hao-1087.html] From the given example, the higher the expected promotion, it can

https://hasaki.vn/cam-nang/review-vaseline-duong-moi-co-phai-su-lua-chon-hoan-have a positive impact on customer satisfaction Therefore, hypothesis H5 is putforward:

Hypothesis H5: Promotion has a positive influence on customer satisfaction whenthey use Vaseline lip balm

Figure 3: Conceptual framework

Chapter 3: METHOLOGY3.1 Research process

Define researchobjectives

Concepts andtheories

Verify the reliability of the scale

Correlation and

regression Verify the relationship of variables and models Building the scale Questionnaires based

on Likert scale Quan琀椀ta琀椀ve

Cronbach Alpha’s

Inscribe researchreport

Figure 4: Working process

3.1.1 Qualita琀椀ve research

Qualitative research is a method of collecting information and data in numeric’ form to obtain detailed information about a research object, survey orinvestigation for analysis or evaluation purposes This information is usually collectedthrough interviews, direct observations or focus group discussions using open-endedquestions, and is often applied in the case of a small, concentrated sample

‘non-The purpose of qualitative research is to consider whether the scales used in thestudy are suitable for the company’s environment, and at the same time evaluate theuse of terms in the questionnaire, clarifying the meaning of each variable observationbefore formal study.

Qualitative research was conducted through a group discussion process with afew questions designed to explore, both to confirm, adjust and supplement theelements of corporate culture that affect the success of the company employeeengagement At the same time, evaluate the use of terms in the questionnaire, clarifythe meaning of each observed variable

Types of Qualitative Research Methods

 One-on-one interview Focus groups

 Ethnographic research Case study research Record keeping

 Process of observation

The qualitative research steps

 Step 1: Briefly introduce the research topic so that the discussionparticipants understand clearly.

 Step 2: The author states the component variables measuring corporateculture that the author has inherited from previous studies for groupmembers to discuss whether to add or adjust any factors.

 Step 3: If there are no additions, the author will go to the factors andmeasured variables of each factor in turn

3.1.2 Quantitative research

Quantitative research is basically understood as the collection and analysis ofinformation on the basis of data collected from the market in order to be able to helpthe subjects make conclusions of market research through the use of statisticalmethods by such actors to process data and data.

Quantitative research is also simply understood as the subject matter ofsystematic empirical investigation of observable phenomena through statistical,mathematical or numerical data, or computer technology.

The goal of quantitative research is to develop and use mathematical models,theories, or hypotheses that are directly related to phenomena The process ofmeasurement is also central to quantitative research because it has also helped toprovide the basic connections between empirical observation and the mathematicalexpression of quantitative relationships Quantitative data is understood as all data innumerical form such as statistics, percentages and many other specific types of data.

Quantitative research steps

 Identify patterns and relationships of factors Define variables (for factors)

 Define measures for variables

 Identify information sources and methods of collection Determine methods of information analysis (statistical tools)

3.2 Building the scale

3.2.1 Measurement scale

In the Vaseline lip balm customer satisfaction survey, the questionnaire isdivided into two parts: the first part consists of multiple-choice demographic questionsand general questions about the continued use of lip balm customer access to theproduct; while the second part consists of 17 questions assessing customer satisfactionwith the product, perceived price and associated quality, and 3 other characteristics –customer expectations, brand image, and communication brand communication.These are questions on the 5-point Likert scale, which is a psychological responsescale in which there’s assesses the extent to which a client agrees with a statement on arange of one to five (1) Agree; (2) Disagree; (3) Neither agree nor disagree; (4)Strongly disagree; (5) Strongly agree.

The construction of perceived quality has a great influence on customersatisfaction and dissatisfaction adjusted to research by Yu-Cheng Lee (Chung HuaUniversity) and Yi-Hsieh (Taipei College of Maritime Technology in 2016) Theconstruct of the relationship between product quality and brand image affectingpurchasing decisions is derived from a quantitative article from 120 respondents byErnesto Jose Tjahjono, Lena Ellitan, Yuliasti Ika Handayani (Unika Widya MandalaUniversity) ) (2016) Constructed from the effect of quality and price of the distributedproduct on satisfaction and loyalty, each survey contains a borrowed tool from Putra,et al (2017) Last but not least, the promotion analysis from customer satisfaction atAlfabelenskin Pusat Banyuwangi was taken from samples of Yohanes GunawanWibowo, Reri Herawati Wulandari, Nurul Qomariah (Universitas MuhammadiyahJember) (2021).

disagree Disagree

Perceived price

Is a goodproduct for

the price

Geo昀昀reyN.Soutar (2001)O昀昀ers value

for money

Is reasonablypriced

Is cheaperthan other