Literature Review And Hypotheses Development Business Case Study

Literature Review and Hypotheses Development
Brand value, customer loyalty and repurchase intention
Developing the brand and business value is one way to build brand loyalty as positive consumer attitudes areassociated with consumer preference for the brand or product. Asgari and Hosseini (2015) look into how customer perceptions, attitudes, satisfaction and brand loyalty explain international customer purchasing behavior for the South Korean cosmetic brands such as AmorePacific Hong Kong (APHK). The country of origin image and brand image has a positive influence on the purchase intention and attitude (Augusta, Mardhiyah and Widiastuti, 2019). The attitudes and perceptions of international customers influence their purchasing behavior and intention (Asgari and Hosseini, 2015). The article is relevant for the research, as the researchers identify the different factors that influence the purchase of the Korean cosmetic brands. Jeong-Tae et al (2019), highlights that there is growing popularity of oriental medicine cosmetics and premium beauty products including preference for Korean products for their brand value. Understanding how different cultures and markets value brands influences customer preferences and purchase intention.
H1: The brand name has a positive influence on brand loyalty and the repurchase intention
A brand name identifies the name of a product, service including the unique attributes and has power to influence buyers.There are functional dimensions of the brand image that are the tangible stimuli that can be measured and the emotional dimensions that are linked related to the psychological states asmanifested in feelings and attitudes. Consumers mentally connect with the brand name as there are memories, attitudes and perceptions towards a brand. The consumer ought to rememberthe brand and associate it with the concept that represents your product. Customer satisfaction is essential to the success of our brandbrands focus on capturing user-customers. Different studies in the literature review emphasize that a good brandimage is associated with higher company sales (Kim, Chun and Ko, 2017; Jeong-Tae et al., 2019) and in reinforcing brand loyalty towards the brand (Shalehah, 2019;Asgari, O., &Hosseini, 2015).While brand familiarity influences customer purchase intention there are those not willing to try out new brand products even when there are nationally recognized brand names.
Age group and purchase intention
The beauty and personal care industry in Asia has grown gradually and particularly among the young and middle-aged women. According to Lee, Edwards, Youn& Yun (2018) the value of the cosmetics market for Korean products has expanded and the cosmetics industry is dominated by women who use these products and work in the industry. The researchers explore the link between motivational values and luxury consumption of Chanel and Armani, when considering the cultural differences of South Korean and American buyers. Among the young Korean consumers, the perceived social value influences attitude change favorably and for young American products it is the perceived superior quality (Lee et al., 2018). Advertising is part of the promotion mix and is meant to improve the image of a product among the target market based on customer characteristic including their age and gender. Client segments according to age ranges and young people are consumers of cosmetics and understanding their purchasing and consumption patterns helps to improve marketing efforts.
H2: The customers’ or users’ age affects the strength of the relationship between the brand attitudes and intention to buy
Customers in different age groups include adolescents, young adults, middle-aged adults and the elderly. Young tend to have lower purchasing power than older customers, and marketing efforts should be well aligned with customer needs and expectations. There are differences in brand associations among consumers in different age group and firms need to identify the most effective ways to captivate the target markets audiences (Mora and Vila, 2020).
Place/ distribution
The place/ distribution connect the firm and the consumers or end users where they can access the products that are made available. This is important to place the product in different points of sale for the buyer, meeting certain criteria of term, quantity, and the desired conditions (Mohammadzadeh et al., 2017). Skin-care products are among the most popular cosmetic products, and there are different places (distributions) to choose from in the different target markets. There are both direct and indirect distribution channels depending on whether there are intermediaries. The distribution channel includes direct channels, the internet, supermarket, pharmacy, departmental stores and salons. The internet and the electronic commerce platforms facilitate online purchase and sales for those who do not have to visit the physical stores.
H3: The Place/ distribution influences purchase decisions
Distribution is the set of activities, which are carried out from the time the product has been manufactured by the manufacturer until it has been purchased by the final consumer, and which is intended to deliver the product (good or service) to the consumer (Thabit & Raewf, 2018). The distribution channel is made up of a group of interrelated intermediaries that deliver the products and / or services of the manufacturers to consumers or end users.
Bioactive ingredients and ...