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 SCHOOL OF BUSINESS

BUSINESS RESEARCH METHODS

Individual Project

Topic: Factors affecting consumers' repurchase of

THE FACE SHOP cosmetics

Student’s Name: DANG KHANH NGOC Student’s ID: BABA WE18713 Class: Thursday Class

Lecturer: Dr Ha Minh Tri

Ho Chi Minh City, Vietnam

2022

Table of contents

Abstract

I INTRODUCTION

1.1 Background

1.2 Research problem

1.3 Research gap

1.4 Research objectives

1.5 Research questions

IL LITERATURE REVIEW

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

2.2.1.3 Trustworthiness

2.2.1.4 Price

2.2.1.5 Product quality

2.2.2 Satisfaction impact on customers’ repurchase intention

2.3 Research model

TI METHODOLOGY

3.1 Research Design

3.2 Research Process

3.3 Sampling selection

3.4 Data collection method

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

1.4 Research objectives

This study is for research purposes on factors influencing repeat buying behavior

THE FACE SHOP cosmetics of consumers Specifically:

+ Exploring factors affecting customer satisfaction when using THE FACE SHOP

cosmetics

+ Determine the level of impact of each factor affecting customer satisfaction

+ Analysis of the influence levels of customer satisfaction on repeat purchase

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

cosmetics

2.1 Definitions and theories

2.1.1 Purchase intention

According to Dodds and Monroe (1985), purchase intention is the behavioral

tendency of a consumer to purchase a product Moreover, purchase intention can be

influenced by a consumer's knowledge, attitudes towards the particular brand under

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)

2.2 Theoretical framework

2.2.1 Factors that influence customer satisfaction

2.2.1.1 Tangibles

According to Parasuraman et al (1988), tangible means are assessed by their

perceived value expressed through appearance, employee clothing, and customer

service equipment and location Therefore, when customers feel satisfied with the

facilities at that place, they will increase their impression and from there they tend to

return to buy the product

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

2.3 Research model

Tangibles N

N \ %e Service Capacity we \

me

Trustworthiness A Satisfaction Repurchase

we oy intention

~ ⁄

⁄

Product Quality

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

3.2 Research process

Identify the problem and the objective of the research

Literature review

Research model and Hypothesis

|

V

Draft the questionnaire

Ỷ

Revision

Ỷ

| Data collection |

Ỳ

| Data analysis and findings |

Ỳ

Conclusion and recommendations

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

TA2 THE FACE SHOP cosmetics store is spacious

The facilities and equipment for selling THE FACE SHOP cosmetics are

TA3

very modern TAA The interior space of the THE FACE SHOP cosmetic store is reasonably

arranged

Trustworthiness measures scale Item Code Questions

TR1 I rate THE FACE SHOP cosmetics as a reputable brand

TR2 The Face Shop cosmetics are safe to use

TR3 I find The Face Shop's cosmetic quality to be true to what the company

commits

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

a Questions

PQI I find THE FACE SHOP cosmetics help my skin improve

IPQ2 The quality of THE FACE SHOP cosmetics meet my expectations

PQ3 All THE FACE SHOP cosmetics at the store always have a new expiry date

POd I found the corresponding THE FACE SHOP cosmetic quality with the

brand reputation 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