Investigating factors influencing intention to purchase private label brands in cosmetics category

Abstract

The thesis focuses on factors influencing intention to purchase private label cosmetics. To the author’s knowledge, there have been no previous attempts to study the relationship between factors and intention to purchase in cosmetics context. Therefore, a gap in private label research has been identified, and this paper is an attempt to close it. This paper aimed to identify which factors are influencing intention to purchase private label cosmetics, and if those are similar to previous findings from private label brands in other categories. In order to answer the question, a survey was developed and distributed among female NHH students and females in personal network, resulting in 156 viable responses. Structural equation modelling is used to analyze the relationships. Results show a direct negative effect of social risk and quality consciousness on intention to purchase private label cosmetics. Financial, functional, physical, psychological and time risks, perceived value and perceived quality, as well as value and price consciousness do not affect intention to purchase private label cosmetics. Key findings of the thesis point that private label cosmetics are still perceived as lower-quality alternatives to national brands, and are not chosen by consumers seeking quality above all. Also, it becomes apparent that cosmetics consumption contains symbolic aspect, where consumption of private label cosmetics is seen by some consumers as lowering their social status. These results are new for private label research, as no such studies have been conducted in the cosmetics context before. Findings also suggest that factors affecting intention to purchase private label brands differ across categories. Compared to studies researching similar relationships in other categories, both consistent and inconsistent results were identified