Consumer Behavior and Purchase of Korean Cosmetics in China

Course code
Consumer Behaviour- Consumer Behavior and Purchase of Korean Cosmetics in China
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Research background
China is one of the countries with the highest growth in cosmetic and beauty products sales and has shown high purchasing power due to economic growth in recent years. Different foreign companies establish their cosmetic brand in the country and East and Southeast Asian region, and South Korean cosmetic brands are among the most popular in China. The Chinese beauty market has grown steadily, mainly among young and female consumers whose idea of ideal beauty differs from that of their parents and grandparents generation. South Korean cosmetics are affordable and chic, with beauty brands having good name recognition in Asia (Jin, 2016). Nonetheless, sales have slowed in some target markets as consumers embrace unique looks and not idealized notions of beauty, resulting in Chinese and Japanese brands also growing (Tai, 2019). Cosmetics are one of the main drivers of growth in the Chinese and global personal care industries, but consumer behavior in the Chinese market is different than western markets.
China mainly imports cosmetics from France and South Korea, but Korean products are relatively affordable and familiar to customers in East Asia. AmorePacific remains Korea’s biggest beauty product company exporting to China and East Asia, and customers in the region increasingly seek high-quality products (Tai, 2019). Even though Korean beauty products do not have a significant presence outside Asia, the Korean entertainment industry has set standards and influenced perceptions about the ideal beauty standards. As a result, buyers of beauty products tend to focus on the brand and quality features, and there is a positive attitude towards certain brands, then there is a higher rate of customer repurchase. Furthermore, the demand for beauty products without harmful chemicals is growing, with consumers more likely to search for information on products online.
Traditional Chinese, Japanese, and Korean cosmetics are based on traditional medicine and ingredients that have been used for years and even centuries. One of the unique aspects of Korean cosmetics is the influence of K-beauty and entertainment that made the beauty products more popular. The popularity of K-pop in East Asia and product quality are associated with positive consumer sentiments about Korean beauty products and brands. Evaluating the Chinese and Korean purchasing behavior can provide insights into the difference between the two markets and what influences consumer behavior. Furthermore, evaluating beauty product characteristics is helpful to understand how this influences customer trust and loyalty. There is growing awareness of beauty products, and marketing advertising and promotion campaigns influence attitudes towards Korean beauty products.
If customers are dissatisfied, they tend to have a negative attitude towards a brand or products, limiting new consumption and repurchase intentions. People can have different attitudes about a brand. Still, perceived quality, value, and consumer satisfaction are associated with positive attitudes, which influences achieving a positive brand attitude and strong brand loyalty. Beauty products tend to be in the middle- and low-end price range, which makes them popular, but are too homogeneous (Vogue, 2020). Korean beauty products are widely trusted, and people perceive them to be high quality even when affordable. The country of origin influences attitudes towards a brand, and since a brand image differentiates different brands, Korean cosmetics branding efforts have likely helped grow Korean brands in China.
There are different theories relevant to understand consumer behavior and marketing. The attribution theory focuses on understanding how consumers use their perceptions and expectations to explain their satisfaction or dissatisfaction where purchase choices are made through attributions. Feelings, intentions, and beliefs influence behavior and customer choices. Consumers tend to evaluate a product’s performance considering their aspirations. Based on the attribution theory, people use the information available to make causal explanations for events. Internal attributions include personality traits, and external attributions include the context and situational character. Sometimes, people focus on intentional behavior and social desirability when making decisions.
The consumer involvement theory is a useful framework that focuses on consumers’ degree of interest in purchasing a product and how they interact with the messaging. There is a level of risk when making purchasing decisions, while different factors influence the motivation to purchase the products. For example, Chinese consumers buying Korean cosmetics tend to be highly involved. There are also expectations that the products will help meet the desired outcomes, but some buy impulsively. The consumers’ needs and wants are closely linked with their purchasing history, experiences, and cultural background, while consumption is used to satisfy a need.
Understanding customer expectations and their perceptions of the Korean cosmetic brands is helpful to meet the customers’ needs and expectations. Therefore, the research focuses on the influence of perceived brand quality and brand familiarity on Chinese customers’ choice of Korean cosmetic brands.
Research questions
* RQ1- How does perceived brand quality influence customer choices?