Marketing Mix Affecting the Foam Hair Color Purchasing Decision Process of Consumers in Bangkok

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Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2

Marketing Mix Affecting the Foam Hair Color Purchasing Decision Process of Consumers in Bangkok Wannatuch Juangduang*, Chanin Srisuwannapa** and Nuttawut Rojniruttikul *** The research aims to study the level of the consumer's decision process to purchase foam hair color products and how marketing mix affect the foam hair color purchasing decision of consumers in Bangkok. The research instrument was questionnaire and the data were analyzed by using statistical program. The statistics for data analysis were percentage, arithmetic mean and standard deviation. Multiple linear regression analysis is used for hypothesis testing the research results showed that; 1) The process of decision making to purchase foam hair color of consumers in Bangkok was at high level. 2) Marketing mix in terms of product, price, and promotion could affect the foam hair color purchasing decisions of consumers in Bangkok. All independent variables could explain the variation in the foam hair color purchasing decisions of consumers in Bangkok at 32 percent.

Field of Research: Marketing Research

1. Introduction The importance of the personality is still very important precedence that anyone cares. External characteristic is important to help build confidence. The selection and hair care is one of the key external factors. In addition to haircut and hair maintenance as well as hair coloring, by a wide range of popular products for hair color in solving a problem is to create confidence. Current hair color products are divided into 3 categories: Temporary hair color products, Semi-permanent hair color products and Permanent hair color products. That last category is considered as the largest market. There was 84% of market share The value of hair products market share found that the brand of hair products. The most popular top 5 brands consist of; L'Oréal (38%), Dcash (23%), Schwarzkopf (12%), Lolane (12%), Garnier (10%) and others brand (5%). Business overview of hair care and styling products industry in Thailand is worth more than 16,000THB million, divided into groups of products for hair care about 13,000THB million, Product group hair structure modification 2,500THB million and hair styling product group 700THB million. Therefore the trend of products on the hair continues to grow especially the hair coloring products which are innovative from a variety of brands. As a result of the market trends, hair coloring and hair salon can be made at home. For market share, hair care and hair styling products accounted for 8% of the overall market. Total sale increased by 5-10% in recent years (2014) and is expected to grow 8-10% in the future. In order to respond to the changing of consumer's lifestyle, the developing of new innovations is needed to change hair color from the original image. By developing model foam hair color, added a new innovation in response to the changing lifestyles of consumers. Meet consumer behavior modification from the original consumer to access _____________________________________________________________________________________________________

*Ms. Wannatuch Juangduang, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : [email protected] ** Dr. Chanin Srisuwannapa, Faculty of Science, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : [email protected] *** Assistant Professor Dr. Nuttawut Rojniruttikul, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : [email protected]

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 services from a beauty salon is buying products to change hair color at home. The forms and procedures for doing is less, but the quality remains the same. Focusing on convenience, make it easy to dye their hair up with creative innovation in a more interesting. From the information above, the foam product group hair color in Thailand with intense competition from both international brands and domestic brands. A competitive condition in the foam hair color is still full of violence that have developed different types of products to attract customers and repeat purchases, including the purchase decision of consumers to meet the corresponding requirements. As a result, the researcher was interested to study about the marketing mix affecting the purchase decision of consumers foam hair color in Bangkok. The results obtained from this research were utilized to improve and developed quality of the foam hair color product, both in terms of product, price, place and promotion to meet the needs of consumers. Moreover, to cope with the increasing competition and increase sales even more.

2. Literature Review In this research, the researcher focuses on the buying decision process concept of Kotler & Keller (2009) and marketing mix concept of E. Jerome McCarthy (1981) the details are as follows. 2.1 The Buying Decision Process Theories of decision making Kotler & Keller (2009) has described the importance of the process of choosing to do one of the options that are available. The consumers always have to decide in the choice of various goods and services. The choice that make the most of important step consist of 5 steps; Recognized your needs or problems, Seeking information, Alternative assessment, The decision to purchase and Behavior after purchase. Solomon et al. (2000) describes more in detail of the purchase process. The consumers will purchase goods or services whatever usually starts from the perception of the buyer, Recognized their needs or problems, Seeking information, Alternative assessment, the decision to purchase and Behavior after purchase. It is classified according to a hierarchy of buyer's decision process, whether to buy or not. While the model of Blackwell et al. (2006) proposed that the consumption process consists of 6 steps; the first step is to recognize the need for consumers to be aware of the problem and the need to have a product or service to solve the problem. The second step is to find the information about a product or service as an alternative to the brand and the place to buy it. The third step is to evaluate the alternatives to decide the right choice. The fourth step is to purchase; it considers where to buy and how to buy the products. The fifth step is consumer consumption. The final step is post-consumption evaluation may consumer satisfaction or dissatisfaction which leads to another behavior such as brand loyalty or introduced the product to the others. This is consistent with models of Schiffman & Kanuk (2007) suggested that consumption consists of three steps: input stage, process stage and output stage. The input stage is Decision-making process of consumers are influenced by external factors; this implementation of the marketing mix and social factors in the family. reference group, social class and culture for the process, it was found that psychological factors related to perceived learning needs and motivation, personality, attitude, values and lifestyles of consumers to influence the realization of the demand. Information search and evaluation of options before buying, the experience gained from the evaluation after

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 consumption. As a result of the consumer may be satisfied or dissatisfied with the product or service. The result will be remembered as the experience of consumption and psychological factors affect the consumer in the future. 2.2 The Marketing Mix According to Kotler, P. (2003) marketing mix tools are classified into four broad groups, called the four Ps of marketing: product, price, place and promotion. In order to deliver on its value proposition, the firm must first create a need-satisfying market offering (product). It must decide how much it will charge for the offer (price) and how it will make the offer available to the target customers (place). It must communicate with target customers about the offers and persuade them of its merits (promotion). According McCarthy (1971) who has a unique definition for the marketing mix strategy, it is the elements of marketing mix (product, price, place and promotion) used by a company to fulfill the needs and wants of the target customers which is integrated, interrelated and equally important. The introductory marketing literature suggests that all parts of the marketing mix (product, price, promotion and place) (4Ps) are equally important since a deficiency in any one can mean a failure Product: Kotler, P. (2003) defined product is the total bundle of satisfaction that is offered to the target market in an exchange transaction-whether it be goods, service, or a combination of them. The key success factor of a product is to satisfy the customer. A product can be tangible or intangible. Also, it include not only the psysical product or core service but also complementary component such as packaging or a warranty. Each consumer may view the importance of each component of a product in a different way. Complementary components may be perceived by a customer to be more or less important that the core product. Product is something that can be offered to the customers for attention, acquisition, or consumption and satisfies some want or need. Kotler, P. Armstrong, Saunders, & Wong. (1999). According to Fadel (2010) product value is the total benefits of using the product or service. Lapierre (2000) identified the benefits of product (pharmaceutical) in seven dimensions such as alternative solutions, product quality, product customization, responsiveness, reliability, flexibility and technical competence. Price: Kotler, P. (2003) defined price needs to be competitive, but that does not mean the price has to be the cheapest. For example, a small business may be able to compete with larger businesses by adding extra services or details to attract customers’ attention. It is necessary to realize that customers expect to receive high quality products. Armstrong & Kotler, P. (2007) price is the sum of money customers has to pay to acquire the product; often customers buy the product negotiating the price for more accessibility, companies offer discounts to customers adjusting price to sustain the competitive situation. Zeithaml (1988) is of the view that monetary cost is one of the factors that influence consumer’s perception of a product’s value. Price can be stated as the actual or rated value of a valuable product which is up for exchange; some define it as amount of money paid for product (Kotler et al, 2005). Place: Kotler, P. (2003) defined place or distribution as a set of interdependent organizations involved in the process of making a product available for use or consumption by consumers. Davis (1997) place is the managerial decisions on where customers should be provided with services and it may include electronic/physical distribution channels. Jones (2007) defined place as any way that the customer can obtain a product or receive a service. Bowersox and Closs (1996) gave distribution as another name for place. The

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 choice of the channel distribution has a strong effect on the sales and customers’ satisfactions (Kotler, P. 1998). Promotion: Kotler, P. (2003) defined promotion is persuasive communication between a business and target customer to communicate the benefits of the product and to build demand for the product as well. The ultimate goal of promotion is to affect buyer behavior. An organisation’s promotional strategy can consist of sales promotion, advertising, sales force, public relations and direct marketing. Kotler, P. (2002) defines promotion as the activities a company performs in order to communicate to its existing and potential customers. Multiple channels are used to communicate to different parties (Distributors, customers) and different means could be used to do promotion. For example, advertising, sales promotion, personal selling, public relations and direct marketing are the components of a promotion mix used by companies to achieve the promotion and marketing objectives (Kotler, P. 2006).

3. The Methodology and Model The population of this research was the consumers who purchased the foam hair color product in Bangkok. As the researchers do not know the exact number, the method to calculate the number of samples used the formula of the unknown population which requires a confidence of 95% of the total sample of 399 people. Independent Variable was the marketing mix; Product, Price, Place and Promotion. Dependent Variable was “the foam hair color purchasing decisions of consumers in Bangkok” consist of the problem recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior. Hypothesis: Marketing mix of Product, Price, Place and Promotion affected the foam hair color purchasing decisions of consumers in Bangkok Conceptual Framework: The conceptual framework in the research of marketing mix to influence the purchase decision of consumers foam hair color in Bangkok has taken the concept of Kotler & Keller (2009). By the level of the buying decision process 5 aspects; (1) Problem recognition, (2) Information search, (3) Evaluation of alternatives, (4) Purchase decision and (5) Post-purchase behavior. On the other hand, the researcher also studied on the marketing mix of consumer foam hair color products in the Bangkok by the concept of the marketing mix of the E. Jerome McCarthy (1981) which are consist of 4 aspects; Product, Price, Place and Promotion. The optimum level of decision making foam hair color products to consumers in Bangkok is the dependent variable tested by comparing the marketing mix of consumer products foam hair color in Bangkok. Marketing Mix Purchasing decision process Product Price Place Promotion

of consumers foam hair color

Figure 2 Conceptual Framework

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Research Method The tools used in this research were a questionnaire to be answered by either of closedended questions requiring answers in the answer choices and open-ended questions that allow respondents to comment freely available. It is divided into four main parts: Part 1: The question about the personal factors of the respondents: gender, age, marital status, education, monthly income, Foaming hair color brands, and the place where the consumer buy product. Part 2: The question about the importance of various aspects of the marketing mix including Product, Price, Place, and Promotion. The questionnaire in type of Likert scale, which is an interval scale ranging from 1-5, was used in each question in this part. Part 3: The question about the purchase decision making process of consumer foam hair color products in Bangkok were: Problem recognition, Information search, Evaluation of alternatives, Purchase decision, and Post-purchase behavior. The questionnaire in type of Likert scale ranging from 1-5, was used in each question in this part. Part 4: It is an open ended question to allow respondents to comment and give other suggestions.

4. The Findings Table 1: Personal Factors Personal Factors 1. Gender Male Female Total 2. Age Under or equal to 20 years Over 20 years - 30 years Over 30 years - 40 years Over 40 years Total 3. Marital Status Single Married Widow / Divorced / Separated Total 4. Education Secondary school or below High school/ Vocational school Diploma/ High Vocational school Bachelor Degree Master degree or higher Total 5.Occupation Student Government Officer State Enterprise Private Company Employee Business Owner

Frequency

Percentage

21 378 399

53.3 94.7 100.0

55 254 65 25 399

13.8 63.7 16.3 6.3 100.0

323 69 7 399

81.0 17.3 1.8 100.0

19 74 31 259 16 399

4.8 18.5 7.8 64.9 4.0 100.0

187 21 7 158 12

46.9 5.3 1.8 39.6 3.0

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Others Total 6. Monthly Income Under or equal to 10,000 baht Over 10,000 baht – 20,000 baht Over 20,000 baht – 30,000 baht Over 30,000 baht Total 7. Foaming hair color product brands Seen plus Four in One Beautylabo Smoothie Shake FreshLight Z-Cool Liese Palty Total 8.Types of modern retail stores to buy foam hair color products Supercenter Department store Supermarket Retail store Total

14

3.5

399

100.0

140 181 59 19 399

35.1 45.4 14.8 4.8 100.0

22 61 36 40 20 214 6 399

5.5 15.3 9.0 10.0 5.0 53.6 1.5 100.0

123 55 58 163 399

30.8 13.8 14.5 40.9 100.0

From table 1, it was found that the sample of consumers who bought foam hair color products in Bangkok mostly female aged 20-30 years old who are single. Most of them are bachelor degree’s students who have the monthly income around 10,000-20,000THB. The most popular brand of foam hair color was Liese while Retail store was the most popular store where the consumers buy the products regularly.

Table 2: Mean ( X ) Standard Deviation (S.D.) levels and the order of the marketing mix Marketing mix 1. Product 2. Price 3. Place 4. Promotion Total

X 3.745 3.734 3.704 3.366 3.611

S.D.

Level

Order

0.559 0.591 0.541 0.634 0.376

High High High Moderate High

1 2 3 4 -

From table 2, it was found that the consumers rated the importance of marketing mix in decision making to buy the foam hair color product overall at high level. The marketing mix product was the highest, followed by price, place and the promotion, respectively.

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Table 3: Mean ( X ) Standard Deviation (S.D.) levels and order of the decision making process to buy foam hair color products in Bangkok The decision making process to S.D. Lever  buy foam hair color products Problem Recognition 3.869 0.556 High Information Search 3.594 0.530 High Evaluation of Alternatives 3.806 0.598 High Purchase Decision 3.295 0.540 Moderate Post-Purchase Behavior 3.492 0.526 High Total 3.611 0.376 High

Order 1 3 2 5 4 -

Table 3, it was found that the decision making process to buy foam hair color products in Bangkok overall at high level. Problem recognition was the highest aspects, followed by evaluation of alternatives, information search, post-purchase behavior and purchase decision, respectively.

Table 4: A multiple linear regression analysis of the marketing mix affecting the foam hair color purchasing decisions of consumers in Bangkok Variables Bj t p-value Constant 1.955 13.950 0.000** Product 0.079 2.443 0.015* Price 0.085 2.747 0.006** Place 0.056 1.648 0.100 0.248 8.994 0.000** Promotion R = 0.566 ; R2 = 0.320 ; SEE = 0.312 ; F = 46.319 ; p-value = 0.000** Note* statistically significant level = .05 ** statistically significant level = .01 From table 4, it was found that the Marketing mix product, price and promotion affecting the decision making process of consumers to buying foam hair color products significantly. It can explain the variation of the buying decision process of foam hair color products in Bangkok by 32.0 percent.

5. Conclusions The study of the foam hair color purchasing decisions of consumers in Bangkok; A discussion of research findings in the following: Marketing mix of Product affects the decision to buy the foam hair color product. Due to a consumer decides to purchase a product or service - one would take into account what they will receive if they meet their needs or not. This will be based on a product or service that is consistent with the research of Michael Probosutejo (2013) who studies "The factors that influence the decision to purchase hair color products. The products are important factors were at the highest level which most researchers have commented that the consumer choose to focus on the products featured on the quality to get a quality of product and safety standards. As a result, consumers will be needed to compare before making a purchase decision, and in accordance with the research of Rashmi Saxena (2013) who study “The study of consumer behavior in buying hair care products of consumers in India”. Found that consumers focus on most products is the quality safety of the product with natural ingredients from herbs is a major factor in the decision to buy hair care products.

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Marketing mix of price, it also effect on the purchase decision process because price is one of the factors that contributes to the satisfaction of the consumer in buying the product. Consumers pay more attention to the value of money that they have spent for buying products. If the products are cheap but low quality and cannot meet the needs of consumer as well as the value for money, it is not in the interest of the customer anymore. The emphasis on the value of goods and services, it is a channel that allows customers to make purchasing decisions easier. This is consistent with the research of Jiranan Ohlanrangsriskul (2010), who studied. "Factors that influence the buying behavior of the consumer products hair color in Bangkok." The price is overall at a high level. The researcher has an opinion that the price offered should be suitable for the quality and packaging of the product. As a result, consumers will be able to make a comparison between the values of the product with the product price – and the other products that can be substituted as well as items that are in the same group, if the value of the product is higher. That is not consistent with the research of Rupayan Kamalika Banerjee, Mitra, Charu Sharma and Vineet Verma (1992) who study “The factors influencing the decision to buy organic products hair dyes” which says that price is not the most influential factor in the purchasing decisions of consumers, If the product is high quality and made of materials that are safe to color hair without causing any damage or loss. Consumers will pay more for consumption and high quality products. Marketing mix of place does not affect the purchase decision process of the products. The researcher suggests that due to the consumer decides to purchase a product or service; one may not take into account the facilities of access to the service. However, to seek and emphasize the value those buyers have been gotten as the criteria. That is not consistent with the research of Rashmi Saxena (2013) who studied. "The consumer’s behavior of purchasing hair care products in India." The study found that the distribution channel factor is important in terms of decoration; the atmosphere in the shop; item placement which makes the buyer purchase decision easier. It is one of the factors that influence the decision to purchase hair care products. Marketing mix of promotion that effect on the decision to purchase the foam hair color product because consumer awareness of the campaign. It was compelling the purchasing decisions of consumers easier - the consumers are sensitive to price. As a result, consumers will be able to compare prices and offers of competitors’ manufacturers that will help customer to make decision in purchasing the products. This is consistent with the research of Thaweesup Amnuaychai and Krisada Kittikowittana (2011), who studied "The factors that affect buying herbal products prevent hair loss for women of working age in Bangkok. The study found that women have a preference for herbal products to prevent hair loss in the areas of marketing and promotion. The plan is to try the product to create confidence in the properties of the product. The promotional discount such as advertising through television, radio, sales by salesperson who currently are considered to play an important role in introducing products and a variety of information to the customer. Salesperson need to know as well as be able to describe the clarity to the clients in order to give them information to understand the products. All of these can help stimulate demand for the purchase of a consumer.

Recommendations The recommendations from this research Product: There should be a research and development of products quality in order to continue to increase the efficiency of the products, focus on safety, No allergic reactions or

Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 irritation of the ingredients used in the product development. Including the development of packaging for a modern style, notably different from conventional products to stimulate customer interest and also easy-to-use consumer. Price: Consumers also pay more attention to the suitability of the product compared to the price. As a result of the brand image, Entrepreneurs should consider ways to build credibility and the creation of value added into the brand. In order to build the customer loyalty and to help them to make decision to buy the product easily based on quality rather than price. Entrepreneurs should also consider the economic income and living expenses of consumers in order to be able to set the price to meet the needs of consumers. Place: Most consumers intend to purchase foam hair color product anyway. Therefore, entrepreneurs should be strategically placed distribution channels accordingly and facilities to sort the mess. Including the place of distribution, So that consumers who will buy products can be reached easily. Moreover, the entrepreneurs should have the preparation of advertising product through online media in order to reach consumers even more. Promotion: Should manage the marketing promotion in promotional activities with other stores. The preparation of advertising, public relations, product through online media to attract the interest of products to reach the consumer more and more.

Recommendations for Future Study Manufacturer of foam hair color should be studied and developed strategies to promote continued market to provide a modern and the needs of the consumers. The results showed that the promotion of foam hair color is moderate. So if the marketing strategy is unique to be able to reach consumers even more.

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