business research methods individual project topic factors affecting consumers repurchase of the face shop cosmetics

This research focuses on understanding the influence level of factors that affect satisfaction and how these factors impact consumer behavior of customers when repurchasing THE FACE SHOP

VIETNAM NATIONAL UNIVERSITY — HOCHIMINH CITY INTERNATIONAL UNIVERSITY

Class: Thursday Class

Lecturer: Dr Ha Minh Tri

Ho Chi Minh City, Vietnam 2022

2.1 Definitions and theories

2.1.1 Purchase intention 2.1.2 Cosmetics 2.1.3 Satisfaction 2.1.4 Repurchase intention 2.2 Theoretical framework

2.2.1 Factors influence customer’s

satisfaction

2.2.1.1 Tangibles 2.2.1.2 Service capability

3.5 Measurement Scale

IV REFERENCES

Abstract

The more developed society, the increasing of the need for beauty as well as self- caring Therefore, cosmetics were born to meet that need and are also a popular usage trend among customers Understanding of consumer psychology of customers is always interested and focused by businesses Hence, the research “Factors affecting consumers’ re-purchase of THE FACE SHOP cosmetics” will provide information for understanding consumer behavior and is a source of documents for enterprises to consider when making business strategies This research focuses on understanding the influence level of factors that affect satisfaction and how these factors impact consumer behavior of customers when repurchasing THE FACE SHOP cosmetics

Research project title: cosmetic, customer’s behavior, quantitative methods, repurchase intention

I Introduction

This chapter will briefly introduce the main parts including background information, problem statements, research objectives, research question, and the significance of this research

1.1 Backgrounds of the research

Cosmetics are a popular product, especially for women who want to improve their appearance or have facial defects The birth of cosmetics is one of the important milestones of human history The rapidly growing cosmetic industry brings many benefits to people such as: looking younger, making people more beautiful for all ages, increasing confidence for users and being safe for people skin The use of cosmetics is no longer a privilege of women but has also become a natural and necessary need for both men and children

Established for nearly 20 years and with more than 17 years in Vietnam, THE FACE SHOP always believes in the healing power of nature so they capture the essence of nature, and finally complete natural therapist THE FACE SHOP natural therapist

cures both body and soul As a result, THE FACE SHOP 1s confident about its

product quality so the problem needed to be cared about is how seeking new customers as well as maintaining the relationship with the current customers to increase the revenue and develop the company

1.2 Research problem

Many businesses sometimes focus on finding new customers and forget about

retaining old customers As a result, this will cost quite a lot because based on

Rosenberg and Czepiel (1984) assumed that it costs 6 times more to find a new customer than to keep an old one and this is a quite common situation 1n the current market

1.3 Research gap

There have been quite a lot of studies on customer satisfaction when shopping for

cosmetics However, the research in Vietnam has mostly only mentioned the factors

affecting customer satisfaction to the factors affecting customer satisfaction when purchasing, not to mention the relationship between customer satisfaction and repeat buying behavior

1.5 Research questions

To achieve the research objective, the research needs to address the following

questions:

-What factors affect THE FACE SHOP cosmetic satisfaction?

-What is the level of influence of factors affecting consumer satisfaction with THE FACE SHOP cosmetics?

-What solutions to increase customer satisfaction to buy THE FACE SHOP cosmetics of consumers?

-Does satisfaction affect repeat purchase behavior of THE FACE SHOP cosmetics? II Literature review

This chapter reviews previous research on concepts, and theories underpinning the study of the factors affecting the repeat buying behavior of THE FACE SHOP

consideration, and future purchase intention of that product or brand (Howard and Sheth, 1969) Consumer buying intention is considered a major predisposition important to a product and can be an important indicator for predicting the behavior of consumers (Fishbein and Ajzen, 1975)

2.1.2 Cosmetics

Products used on the human body have a beauty effect, people often call them

cosmetics, but there are many definitions of cosmetics as follows:

Based on the European Cosmetic Directive define “ cosmetics are any substance or preparation intended to be placed in contact with various external parts of the human body (epidermis, hair system, nails, lips, and external genitals) and with the teeth or mucous membranes of the oral cavity with a view exclusively or mainly to cleaning them, perfuming them, changing their appearance and/or for protecting them or keeping them in a good condition’

The definition of cosmetics according to Vietnam's Ministry of Health is quite a similarity but adds additional content “Cosmetics do not have the effect of curing disease or replacing medicine and are not prescribed for patients’

2.1.3 Satisfaction

Customer satisfaction is defined as the impressive level of value they receive after paying for a product (Daniel, 2001) Kottler (2001) has shown that satisfaction is a positive sign of customers for products consumed, this sign is compared between customer expectations and perceived value of the product after buying In addition, customer satisfaction 1s also identified as a determining factor that how much the product can meet the customer's expectations According to Sania et al (2015), focusing on satisfaction helps businesses orient the basic standards of performance and successful management Satisfaction is one of the most essential goals that businesses seek for long-term relationships with customers Customer satisfaction can lead to customer retention to benefit the organization (Jamal and Naser, 2002) When the customer is satisfied with the products, they tend to repeat purchases of products they have previously purchased

2.1.4 Repurchase intention

According to Fornell (1992), repeat buying behavior refers to the ability to continue using the supplier in the future Product repeat buying behavior is constructed to measure the tendency of customers to increase or decrease the number of products from the current supplier (Jackson, 1985) Furthermore, the repeat purchase behavior of customers 1s considered an important factor in measuring the success of a company's business strategy (Cronin et al., 2000)

HI: The tangible means of THE FACE SHOP cosmetics have a positive effect

extreme to customer satisfaction

2.2.1.2 Service capability

According to Sanchez et al (2006), service capacity represents the level of

understanding, responsibility, attentiveness, and devotion of consultants to customers

In addition, it is also shown through the level of expertise, professionalism, and polite and courteous service to customers according to research by Parasuraman et al (1988) With today's competitive cosmetic market always changing rapidly, the service capacity of good staff is an advantage because customers will trust their experience, expertise, and ability to communicate which increases product satisfaction H2: The service capacity of THE FACE SHOP cosmetic consultants has a positive

influence on customer satisfaction

2.2.1.3 Trustworthiness

Trustworthiness is the measure of customer trust in your business [Kahle, L R., & Homer, P M (1985)] Trust is something that is not taken for granted, it is even more

difficult to gain the trust of customers Hence, the better customer’s awareness of the

company’s trustworthiness, the more satisfied they are As a result, trustworthiness is one of the important factors to achieve customer satisfaction (Lin and Wang, 2006) and repurchase intention( Weisberg et al., 2011; Zbroja and Voorhees, 2006) H3: THE FACE SHOP cosmetic trustworthiness has a positive effect on customer

satisfaction 2.2.1.4 Price

According to Kotler and Armstrong (2010), selling price is the total amount of money a consumer has to pay to get a product/service Selling price is considered an important factor in attracting customers to all businesses, in some cases price also orients customer demand The selling price must be competitive to be accepted by customers, thereby generating high revenue

H4: THE FACE SHOP cosmetics’ selling price has a positive effect on the satisfaction of the customer

2.2.1.5 Product quality

Product quality is the attribute of a product that meets and satisfies customer needs (Juran, 1998) Therefore, product quality 1s considered an important factor influencing customer satisfaction because if the product quality is good, it will increase prestige, and brand image as well as influence customers to choose to buy products HS: THE FACE SHOP cosmetics quality has a positive effect on customer satisfaction

2.2.2 Satisfaction impact on customers’ repurchase intention Today's organizations focus not only on profit but also on

customers because they are the people who bring long-term benefits to the organization Maintaining existing customers and attracting new customers is considered a success in any organization (Ahmed et al., 2010)

Ranaweera and Mitchhu (2003) found that both trust and satisfaction have a positive impact on customers’ repurchase intention In addition, Delgado-Ballester et al (2003) confirmed that satisfaction directly affects repeat buying behavior and it is a positive relationship

H6: Satisfaction has a positive effect on THE FACE SHOP cosmetic repeat purchase behavior

HI: The tangible means of THE FACE SHOP cosmetics have a positive effect

extreme to customer satisfaction

H2: The service capacity of THE FACE SHOP cosmetic consultants has a positive influence on customer satisfaction

H3: THE FACE SHOP cosmetic reliability has a positive effect on customer satisfaction

H4: THE FACE SHOP cosmetics’ selling price has a positive effect on the satisfaction of customer

HS: THE FACE SHOP cosmetic quality has a positive effect on customer satisfaction

H6: Satisfaction has a positive effect on THE FACE SHOP cosmetic repeat purchase behavior

It Methodology

3.1 Research design

This research will use a quantitative method to figure out factors that influence customers’ satisfaction as well as the relationship between satisfaction and repurchase intention of customers The quantitative method is collecting numerical data and solving these data to figure out the relationships in theory and research through statistics, mathematics, or computer engineering (Kothari, 2004) Quantitative research focuses on gathering numerical data and generalizing it across groups of people or explaining a particular phenomenon

Draft the questionnaire

3.3 Sampling selection

We use a simple random sampling technique to collect the data The sample is applied to 200 people from age 16 to 30 who used THE FACE SHOP products In addition, this sample 1s diversified with various demographic segmentation to objectively figure out the relationship between satisfaction and customers’ repurchase intention 3.4 Data collection method

In this study, survey questionnaires will be established through Google Forms and will be collected three weeks after the publication start date After collecting the data from the survey, by analyzing with SPSS, quantitative data collection methods are used to gather primary data It will be sorted and analyzed using the mean analysis,

chi-square, and t-test 3.5 Measurement Scale

Tangibles measure scale

Item Questions Code

TAI THE FACE SHOP stores are located in a convenient location

TR4 I feel secure when using THE FACE SHOP cosmetics

TR5 I have complete faith in the cosmetic brand THE FACE SHOP

Measures scale of Price

Item

Code Questions

PRI The price of THE FACE SHOP cosmetics is suitable for my pocket PR? I am satisfied with the quality of THE FACE SHOP cosmetics received for

the price paid

PR3 THE FACE SHOP cosmetics have a reasonable price

PRA The price of THE FACE SHOP cosmetics is competitive with other cosmetics brands

PRS Overall, I'm satisfied with the price of THE FACE SHOP cosmetics

Product quality measures scale

IPQS I find The Face Shop cosmetics have a very good quality

Repurchase intention measures scale

a Questions

RI I immediately think of THE FACE SHOP cosmetics when there is a need RD Despite of many cosmetic brands on the market, I always choose to buy THE

FACE SHOP cosmetics

RI3 I will continue to buy THE FACE SHOP cosmetics in the future RI4 If I buy cosmetics again, I will buy THE FACE SHOP cosmetics

RIS I still continue to buy THE FACE SHOP cosmetics even if the price increase a little bit

Service capacity measures scale

Item Questions

Code

SCI Staff at the THE FACE SHOP cosmetics store are polite, friendly SC2 Employees in the THE FACE SHOP cosmetics store respect all clients SC3 The staff at the THE FACE SHOP cosmetic store is always responsive my

requests are timely

sca Staff at THE FACE SHOP cosmetics stores have enough knowledge to advise

SCS The employee of THE FACE SHOP cosmetic store provides valuable information to me

SC6 All my questions and complaints are quickly resolved by the THE FACE SHOP cosmetics staff

Satisfaction measures scale

Item Code Questions

SAI THE FACE SHOP is exactly a good brand that consumers need SA2 I am satisfied with the decision to buy THE FACE SHOP cosmetics SA3 Buying THE FACE SHOP cosmetics is a wise decision

SA4 THE FACE SHOP cosmetics are better than my expectations

IV Reference

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