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Influences on Brand Loyalty among Thai Female Cosmetic Consumers

Article · October 2017

DOI: 10.20319/pijss.2017.32.19471969

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PEOPLE: International Journal of Social Sciences
ISSN 2454-5899

Taghipour & Loh

Volume 3 Issue 2, pp.1947-1969
Date of Publication: 31st October 2017
DOI-https://dx.doi.org/10.20319/pijss.2017.32.19471969

INFLUENCES ON BRAND LOYALTY AMONG THAI

FEMALE COSMETIC CONSUMERS

Amirhossein Taghipour
Business School of Assumption University, Bangkok, Thailand
Amirtg149@gmail.com

Aaron Loh
Business School of Assumption University, Bangkok, Thailand
draaronloh@gmail.com
___________________________________________________________________________

Abstract
This study aims to examine and identify variables and factors which influence Thai women’s
purchasing decision of Korean cosmetics. The data were compiled from questionnaires given
to 400 female respondents living in Bangkok, who were between the ages of 14-30 and who
had purchased Korean cosmetics in the past. The methodology used in this study is the
correlation coefficient relationship and ANOVA to test the hypotheses. The results illustrated
that the country of origin (COO) has a relationship with the perceived quality of the
cosmetics and consequently, to brand equity. There are differences between packaging, price,
and perceived quality for customers, in which packaging has more influence on satisfaction.
In addition, customer loyalty was affected indifferently by brand equity and customer
satisfaction.
Keywords:
Skin care, Thailand, Country of origin, cosmetics, Etude House, Price, Quality, and
Packaging
___________________________________________________________________________

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1. Introduction
According to trade statistics from Thailand, the most popular import items in the
luxury sector are cosmetics and perfumes. Thailand imported 80 million USD worth of make-
up and skin care products from South Korea in 2015 (Culture, Service, & KOCIS, 2016). The
volume of imported goods to Thailand, especially luxury products, suggests a positive
relationship with the average Thai consumers favoring using products from foreign countries
because they perceive foreign commodities to be of higher quality (Phuengsuktechasit &
Buaman, 2010). The country of origin can signify the quality and trustworthiness of a
product, and it has the potential to reduce the risk for a customer when making purchasing
decisions (Jiménez & San-Martin, 2016; Kaynak & Kara 2002; Yim Wong, Polonsky, &
Garma, 2008; Zhang, 1997).
In Asia, Korean cosmetic brands are ranked third, with a 10.9 % market share. First is
Japan, with 49.1% and China with a 28.9 % market share (Owned, Terms, & Policy, 2016).
According to the International Culture Exchange of South Korea, K-pop has been a very
successful cultural export of South Korea within Asia. On its "Korean Fever" index, the top
consumers of K-pop in 2015 were Japan. Other countries included were Taiwan,
China, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam (Inc, S., 2016;
Masangkay, 2011).
Moreover, Korean beauty product manufacturers like Etude House believe that
Korean consumers’ skin is similar to Thai skin, and thus, using Korean products would yield
more effective results than products from Europe and the USA (Cathy, 2010). Furthermore,
the skin care market in Thailand is very fragmented, with a vast range of brands at different
price points. Beiersdorf maintained the first position in 2015, with a 14% market share;
followed by L'Oréal and Unilever which holds 12% market share respectively. Beiersdorf in
Thailand has sub-brands like Eucerin and Nivea for facial, sensitive skin, and body care
categories (Owned et al., 2016).
Consumer behavior in Thailand is becoming more sophisticated. They are interested
in product benefits and efficacy. Although the Etude House is the top 10 Korean brand in
Thailand (Zalikha, 2015), there are other Korean and international competitors, which are
further forward than Etude House. Innisfree, Laneige, and The Face Shop are ranked first,
second, and fourth among Korean beauty brands and L'Oréal, Beiersdorf, and Eucerin are the

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three-top international personal care brands in Thailand in terms of market share, it would be
interesting to know what variables stimulate the customer to be loyal in purchasing products
from Etude House over one of these other brands.
As Korean cultural content in Thailand expands and becomes more immersive,
Korean brands like Etude House still have a lower market share compared to its competitors
and so the question must be asked, why?

 Q1: To identify what can be related positively to customer loyalty in the Etude House
brand.
 Q2: To examine product characteristics, which includes price, quality, and packaging
and how they influence customer satisfaction for the Etude House brand?
 Q3: To examine how customer satisfaction and brand equity affect customer loyalty
for the Etude House brand.
1.1 Definition of Terms
1.1.1 Brand equity: It was defined by Schiffman et al. (2009) as the acknowledgment of
new products, the distribution of shelf space, and an increase in perceived value, quality, and
premium pricing options.
1.1.2 Country of origin: Lusk et al. (2006) defined the country of origin as the country
where products are made. It is also used as a tool to analyze how customers make decisions
when buying luxury brands.
1.1.3 Skin care: Fartasch et al. (2015) defined Skin care products as products that are meant
to be applied “to promote the renewal” of the skin. Their application is recommended for
after work time and after skin cleansing.

2. Theoretical Framework
Previous research has reported that perceived quality (PQ) is an important factor of
satisfaction (Cronin & Taylor, 1992). Moreover, Hsieh (2004) also stated that country of
origin has a greater effect on consumers in developing countries than in developed countries
because consumers in developed countries have a higher ethnocentrism. Country of origin is
tied to product quality. Country of origin can have greater influence on consumer attitude
than brand quality (Rezvani et al., 2013; Josiassen, Lukas, & Whitwell, 2008; Han &
Terpstra, 1988). Saeed et al. (2013) investigated the influence of country of origin (COO) on

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Pakistani consumers and French cosmetics. It showed that COO successfully affected
consumers’ product quality. The previous hypothetical and experimental rationales support to
the following hypothesis:
2.1. H1: Country of origin has a statistical significant association with perceived quality
of Etude House skin care products.
A study in Taiwan examined the relationship between brand equity, quality, and
customer loyalty for female customers who regularly buy cosmetics (Chen, 2011). It showed
a positive relationship was established between brand equity, “brand satisfaction and brand
loyalty” for both cosmetic brand groups. Another study by Hanaysha et al. (2016) showed
factors such as product innovation, promotion, quality, and COO to have a drastic affect on
brand equity. Also, the role of quality is important in brand equity. Therefore, it can be
assumed that the higher the perceived quality of the brand, the greater the possibility will be
for brand equity (Yoo, Donthu, & Lee, 2000; Kim, K. H., Jeon, Jung, Lu, & Jones, 2011).
The above hypothetical and experimental rationales give support to the following hypothesis:
2.2 H2: There is a significant relationship between perceived quality and brand equity
for Etude House skin care products.
Packaging is a marketing tool for communication purposes, (Silayoi & Speece, 2007;
Nilsson, 2010) which is used to catch consumer’s attention. It is supposed to affect the
product selection process. Moreover, food and drug packaging stimulate the consumer’s
attention and their product perceptions (Venter, van der Merwe, de Beer, Kempen, &
Bosman, 2010; S.T. Wang, 2013). Research into packaging use and packaging related
features shows that packaging plays a drastic role in the food and drug industry (Lindqvist et
al., 2011).
Besides the functional usage of packaging, consumers’ hedonistic choices are also
influenced by package designing, particularly in how they feel towards a product (Peters-
Texeira & Badrie, 2005). Furthermore, the customer satisfaction level is to be expected
effective on price searching mechanism; augmentation in satisfaction level causes a stronger
association between price importance and internal price search (Sulu, Cherry, Saerang, &
Massie, 2016). Mert Topoyanl and Zeki Atil Bulut (2008) studied about the effect of price,
packaging, and perceived quality on customer satisfaction but they overlooked the effect of

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country of origin. The directly above hypothetical and experimental rationales give support to
the following hypothesis:

2.3 H3: Does customer satisfaction differ in price, perceived quality, and packaging of
Etude skin care products?
Customer loyalty is a crucial issue for manufacturers as it can assure the certainty of
demand, and also create tendency in customers to pay, even premium prices (Hakala,
Svensson, & Vincze, 2012; Muzellec & Lambkin, 2009). Brand equity can cause awareness
of brands in customers’ mind when they want to purchase something (Aaker, 2009).
Consequently, customer loyalty is considered the basis of brand equity (Matanda & Ewing,
2012; Rios & Riquelme, 2008) because brand value is worth as much as the number of
customers who are willing to pay the price asked. Customer satisfaction is highly valued
because it leads to the enhancement of customer loyalty and lower price elasticity (Song, Li,
van der Veen, & Chen, 2010).
In another study, DLAČIĆ and KEŽMAN (2014) investigated customer insights into
the relationship between elements of brand equity and customer loyalty among self-
medication products. The research results illustrated that brand equity elements do increase
customer brand loyalty. The brand equity effect on customer loyalty is widely accepted and
used by numerous researchers (Kim, H. J., 2011; Lee & Back, 2010; Pappu, Quester, &
Cooksey, 2005). Customer loyalty refers to the customer’s satisfaction with products as
measured by how often they repurchase products in the future (Kim, Vogt, & Knutson, 2013;
Martínez & Rodríguez del Bosque, 2013). Effect of customer satisfaction and brand equity on
customer loyalty is investigated by Talyor A. S., Celuch K., and Goodwin S. (2004) in an
unlike cosmetic product. Thus, the above hypothetical and experimental rationales give
support to the following hypothesis:
2.4 H4: Does loyalty differ for customer satisfaction and brand equity of Etude skin
care products?

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Country of origin

H1

H2
Perceived quality Brand equity H4a
H3a
Loyalty
H3b Customer
Price H4b
satisfaction

H3c
Packaging

Figure 1: The modified conceptual framework of the relationship between Country of origin,
Brand equity and Customer loyalty for Etude House skin care products.

Adapted From: Ngoc, C. T. (2014). Topoyan, M., & Bulut, Z. A. (2008). Taylor, S. A., Celuch, K.,
& Goodwin, S. (2004).

3. Method

This study was carried out in Thailand among young female cosmetics consumers using
a cross-sectional field survey approach.
3.1. Research Instrument
The survey tool is a three-page questionnaire comprising two key sections. The
questionnaire was interpreted from English into Thai using a back-translation method. The
first segment is considered to measure the core constructs investigated. Each concept was
assessed using a 5-point Likert scale.
The second segment determines the background information of respondents, such as age,
gender, and education status. Furthermore, the questionnaire was pretested on a convenience
sample of 50 customers from one of the branches of Etude House in Bangkok. Throughout
the pre-test, respondents evaluated the clearness of the phrasing and comfort of understanding
due to reduce vagueness and communication errors. Some slight amendments were made to

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the phrasing, demonstration and construction of the questionnaire in response to the pre-test
feedback. Researchers didn’t include the respondents who had contributed in the pre-tests in
the main study.
3.2. Sample
In this research, we concentrate on young Thai females’ customer loyalty on a Korean
cosmetic brand. Therefore, we employed cosmetic buyers going out from Etude House shops
as the sample population. Undeniably, the young female cosmetics consumer segment is
documented as one of highest growing markets for health-related goods in Thailand.
instantly, it is apparent that young Thai females aged 14 to 30 has exposed an increase of
blemish balm (BB) cream and Color Correcting (CC) cream consuming as being the fastest
growing skin cares in 2014, as well as having the highest demand (Erinefraser, 2014).
Consequently, our decision to utilize Thai females as a sample population was driven
by the considerable growing of this young customer section in the health sector. Thus, it is
suitable that, data were collected from customer shopped at six branches of Etude House in
Bangkok (ETUDE HOUSE, 2016). A total of 400 completed questionnaires are functioning.
Since this research counts on voluntary involvement, non- respondents and respondents might
vary on their demographic features. The research shows that 54.0% (216) of the respondents
were from the income group of less than Baht 15000, 14.0% (56) of the respondents have the
income of Baht 15,001–25,000, 4.8% (19) of the respondents have the income of between
Baht 25,001–35,000, 9.0% (36) of the respondents have the income of Above Baht 35,000
and 18.3% (73) of the respondents declined to state their income level. In terms of their
education, 31.5% (126) of the respondents are in high school level, 64.0% (256) of the
respondents are in bachelor degree level, 4.5% (18) of the respondents are in the master
degree level. In terms of age, 27.3% (109) of the respondents are between 14 to 18 years old,
49.5% (198) of the respondents are between 18 to 22 years old, 8.8% (35) of the respondents
are between 22 to 26 years old, 14.5% (58) of the respondents are between 26 to 30 years old.
3.3. Data Collection
In an attempt to avoid sample selection bias, every individual person who had
shopped cosmetics at the time of getting of the shop was asked for responding the
questionnaire. The questionnaire, along with the explanatory statement and consent form, was
personally distributed to the invited subjects during the lecture break time. The respondents

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were given ten minutes to accomplish the survey and then, were asked to hand in the
completed questionnaire personally to the questioners. The entire data collection procedure
took roughly six weeks.
3.4. Statistical Test Used
There is non-probability sampling, which consists of the selection of unit samples on
the basis of judgment, convenience or known population that allows each population element
an equal chance of selection (Cooper, Atlantic, Schindler, & Wittenberg, 2013). The
researchers have decided to study the relationships between the country of origin and
perceived quality as well as the relationship of perceived quality and brand equity on Etude
House skin care products; thus, the Pearson correlation coefficient test is suitable. In addition,
the difference of quality, packaging, and price on customer satisfaction is examined in which
factorial ANOVA is the suitable test. Eventually, the difference of customer satisfaction and
brand equity on customer loyalty is assessed in which factorial ANOVA is determined as the
suitable test. To treat the results, the data were gathered through the Statistical Package for
Social Science (SPSS 23), to be then analysed and allow conclusions.

Table 1: Reliability measures

Variables Alpha test Number of items
Price .773 4
Perceived quality .741 4
Packaging .806 5
Customer satisfaction .821 3
Country of origin .857 5
Brand equity .866 4
Loyalty .818 4
Hence, the researcher concluded that the questionnaire used in this research was
reliable and will apply to collect all primary data for this study.

4. Results
The research shows that 54.0% (216) of the respondents were from the income group
of less than Baht 15000, 14.0% (56) of the respondents have the income of Baht 15,001–
25,000, 4.8% (19) of the respondents have the income of between Baht 25,001–35,000, 9.0%

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(36) of the respondents have the income of Above Baht 35,000 and 18.3% (73) of the
respondents declined to state their income level. In terms of their education, 31.5% (126) of
the respondents are in high school level, 64.0% (256) of the respondents are in bachelor
degree level, 4.5% (18) of the respondents are in the master degree level. In terms of age,
27.3% (109) of the respondents are between 14-18 years old, 49.5% (198) of the respondents
are between 18–22 years old, 8.8% (35) of the respondents are between 22-26 years old,
14.5% (58) of the respondents are between 26-30 years old.
4.1 Hypotheses Testing

Country of origin

.229**

.358**
Perceived quality Brand equity
3 580
Loyalty
3 495 Customer
Price
satisfaction

4 033
Packaging

Figure 2: The association and mean differences of variables

Table 2: Correlation of country of origin, perceived quality, and brand equity

Correlations
Mean of COO Mean of PQ Mean of BE
Mean of COO Pearson Correlation 1 .229** .232**
Sig. (2-tailed) .000 .000 .000
N 400 400 400
Mean of PQ Pearson Correlation .229** 1 .358**
Sig. (2-tailed) .000 .000 .000

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N 400 400 400

Mean of BE Pearson Correlation .232** .358** 1

Sig. (2-tailed) .000 .000 .000
N 400 400 400
**. Correlation is significant at the 0.01 level (2-tailed).
Note. The product moment value (r) of the hypothesis is 0.358. A low positive
correlation is indicated between perceived quality and brand equity. A low positive
correlation (r = 0.229) is indicated between country of origin and perceived quality. Thus, the
higher the country of origin, the better the perceived quality of Etude House skin care. This
results is following along with the previous research findings such as Sulu et al. (2016); Chan
et al. (2016); and Seo et al. (2015).

Table 3: Mean differences of price, packaging, and perceived quality

Tests of Between-Subjects Effects

Dependent Variable: Mean of customer satisfaction
Source Type df Mean F Sig. Partial Observed
III Sum Square Eta Powerb
of Squared
Squares
Corrected Model 92.265a 176 .524 5.448 .000 .811 1.000
Intercept 1331.63 1 1331.63 13838.59 .000 .984 1.000
Mean of PQ 5.416 10 .542 5.628 .000 .202 1.000
Mean of PR 4.413 10 .441 4.586 .000 .171 .999
Mean of PAC 3.478 11 .316 3.286 .000 .139 .992
Mean of PQ*Mean of PR 15.139 38 .398 4.140 .000 .414 1.000
Mean of PQ*Mean of 9.810 39 .252 2.614 .000 .314 1.000
PAC 19.325 38 .509 5.285 .000 .474 1.000
Mean of PR*Mean of 3.075 13 .237 2.458 .004 .125 .975
PAC 21.458 223 .096
Mean of PQ*Mean of 5773.77 400
PR*Mean of PAC 113.723 399
Error
Total

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Corrected Total

a. R Squared = .811 (Adjusted R Squared = .662)

b. Computed using alpha = .05

Table 4: Mean Descriptive Statistics

MeanN Std. Deviation

Statistic Mean Statistic Std. Error Statistic

Mean of Perceived 400 3.580 .0254 .5091

Quality 400 3.495 .0278 .5568
Mean of Price 400 4.033 .0281 .5620
Mean of Packaging
Valid N (listwise) 400
Note. The null hypothesis is rejected, which indicates that there is a significant
relationship between perceived quality and brand equity. “A three-way between-subjects
ANOVA” was conducted to compare the effect of packaging, price, and perceived quality on
customer satisfaction for Etude House skin care. There was a significant effect of product
features on customer satisfaction at the p< 0.01 level of Etude House skin care [F (13, 223) =
2.458, p = 0.004] (table 2). Post hoc comparisons using the Tukey HSD test indicated that the
mean score for the Packaging feature (M = 4.0330, SD = 0.56205) was significantly different
than the Price (M = 3.4950, SD = 0.55689). However, the Perceived Quality (M = 3.5800, SD
= 0.50916) did not significantly differ from the Price and Packaging. Taken together, these
results suggest that high levels of packaging beauty and attractiveness really do have an effect
on satisfaction level of Etude House brand. Specifically, our results suggest that cosmetic
consumers become highly attracted to a product’s appearance. However, it should be noted

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that packaging aesthetic must be of high quality in order to see an effect. Price does not
appear to significantly increase the customer satisfaction. Etude House has to consider its
customers’ insights and needs in order to increase their satisfaction and consequently
maintain them loyal to Etude House brand. This result is consistent with Chung et al. (2016);
Parlan et al. (2016); and Twomey et al. (2015) findings.

Table 5: Mean differences of customer satisfaction and brand equity

Tests of Between-Subjects Effects
Dependent Variable: Mean of Customer Loyalty
Source Type df Mean F Sig. Partial Noncent. Observe
III Squar Eta Paramete d Powerb
Sum of e Square r
Square d
s
Correcte 64.335a 66 .975 2.869 .00 .363 189.355 1.000
d Model 1346.82 1 1346.8 3964.0 0 .923 3964.06 1.000
Intercept 9.092 12 .758 6 .00 .074 26.760 .951
Mean of 11.427 6 1.904 2.230 0 .092 33.633 .997
BE 21.049 48 .439 5.605 .01 .157 61.952 .993
Mean of 113.139 33 .340 1.291 0
CS 4976.50 3 .00
Mean of 177.474 40 0
BE*Mea 0 .10
n of CS 39 4
Error 9
Total
Correcte
d Total
a. R Squared = .363 (Adjusted R Squared = .236)
b. Computed using alpha = .05
Note. Results show the null hypothesis is accepted, which indicates that there is not a
significant statistic relationship between customer satisfaction and brand equity. A two-way
between-subjects ANOVA was conducted to compare the effect of brand equity and customer

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satisfaction on customer loyalty in Etude House skin care. There wasn’t a significant effect of
Brand equity and customer satisfaction on customer loyalty at the p< 0.05 level of Etude
House skin care [F (48,333) = 1.291, p = 0. 104]. The results are consistent with Lim et al.
(2014); Thakur and Singh (2012); and Nezakati et al. (2013).

Table 6: Research Questionnaire

Descriptive Statistics
Mean Std.
COO1 Having actors, singers or celebrities using the products have effects 3.81 .88
in product purchasing. 3.37 .83
COO2 South Korea has a good reputation in cosmetic manufacturing. 4.09 .73
COO3 South Korea is more reliable than other countries in terms of 3.77 .73
exported products. 3.63 .70
COO4 South Korea is more reliable than other competitive countries in
cosmetic industry.
COO5 South Korea is a pioneer of the beauty industry in Asia.
PQ1 Etude House skin care lasts longer than other brands. 3.41 .65
PQ2 Etude House skin care has a sufficient range of colors. 3.68 .81
PQ3 Etude House skin care products have high quality. 3.58 .57
PQ4 Etude House skin care products are suitable for my skin. 3.63 .56
BE1 If the other skin care products have the same quality and features, I 3.51 .83
would prefer Etude House skin care. 3.33 .76
BE2 If the other skin care products are supported by a better promotional 3.33 .76
strategy, I will prefer Etude House skin care. 3.42 .66
BE3 If the other skin care products have the same availability as Etude, I
will prefer Etude House skin care.
BE4 I prefer to buy Etude House skin care, as it seems to be the smarter
purchase.
PR1 Etude House skin care prices are reasonable. 3.70 .65
PR2 Etude House skin cares are cheaper than other country imported 3.51 .66
products. 3.16 .88

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PR3 If the price of Etude House skin care products increases significantly, I 3.59 .65
will keep buying Etude brand products.
PR4 I Purchase the Etude House skin care products which have low prices.
PAC1 Packaging is a key part of the product. 4.18 .71
PAC2 Packaging makes a difference at the point of purchase. 4.22 .73
PAC3 Packaging of Etude House skin care is attractive. 3.91 .66
PAC4 I like the color range of Etude House skin care products. 3.78 .67
SAT1 I like the design of Etude House skin care products. 4.06 .92
SAT2 I believe that using Etude House skin care is very satisfying 3.79 .68
experience. 3.75 .55
SAT3 I am very satisfied with using Etude House skin care products.
LOY1 Etude House skin care products are my first choice. 3.36 .88
LOY2 I intend to continue using Etude House skin care products in the 3.73 .80
future. 3.15 .85
LOY3 I will not buy other brands if Etude skin care products are not 3.60 .77
available at the store.
LOY4 I will encourage friends and relatives to use Etude House skin care
Valid N (listwise)
Abbreviations: BB: blemish balm; BE: brand equity; CC: Color Correcting; COO:
country of origin; CS: customer satisfaction; LOY: loyalty; PAC: packaging; PQ: perceived
quality; PR: price.
Note. In country of origin, “South Korea is more reliable than other countries in
terms of exported products” has the highest mean (4.09) which illustrates that the
respondents admit the reliability of South Korean imported products. In perceived quality,
“Etude House skin care has a sufficient range of colors” has the highest mean (3.68) which
indicates that the respondents believe in the whitening and compatibility of Etude House skin
care with their skin. In price, “If the price of Etude House skin care products increases
significantly, I will keep buying Etude brand products” has the lowest mean (3.16) which
indicates that the Etude House customers are not flexible toward the price. In packaging, the
“Packaging makes a difference at the point of purchase” has highest mean (4.22) which
shows the importance of product appearance. And eventually, in loyalty, “I intend to
continue using Etude House skin care products in the future” has the highest mean (3.73).

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5. Conclusion and Future Study

In conclusion, some of the reasons for the lack of market share of the Etude House
brand are because of its availability, place, brand awareness, weakness in advertising and
promotional strategies, and affordability by target population which most are teenagers. The
packaging had a higher influence on customer satisfaction rather than price and quality. It
indicates the importance of product appearance and consequently the quality which made the
Etude House customers be satisfied. Moreover, the price had a lower effect in comparison
with packaging and quality which illustrates that customers are not that satisfied from the
price and pricing managers in Etude House should consider this point.
Furthermore, r = 0.229 is indicated between country of origin and perceived quality
and Country of origin had a low positive relationship with perceived quality which can be
interpreted that even though there are massive promotional Korean cultural products, we can
see that the country of origin is not strongly related to perceived quality of Etude House. So,
they executive managers of cosmetics manufacturers have to invest on other aspects of their
products too. Furthermore, there was no difference between customer satisfaction and brand
equity which indicates that the customer’s perception from satisfaction and brand equity is
the same. Thus, in the future study, the factors like advertising, membership cards for regular
customers, free samples, and cultural aspects should be examined. In addition, this study was
conducted on Thai females, and future studies can be conducted on other gender with other
international brands and in other countries.
5.1 Contribution to Theory
Many of the relationships hypothesized and supported in this study have been
discovered before, but not composed together. The initiative and main contribution of this
study is to offer a more comprehensive model and display that the mixture of product
characteristics (price, packaging, and quality) with country of origin, which is novel in this
setting, have some instructive values. Alternatively, as Hardley and Bhaskaran (2002)
suggest, greater availability of the products may have higher consumer satisfaction about the
beauty facts of cosmetics and thereby distort their evaluation.
5.2 Limitations of The Research
The researchers have selected a target population consisting of women only and
omitted a possibly interesting point of view for companies, which are male customers.

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`PEOPLE: International Journal of Social Sciences
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Moreover, in this study, the researchers concentrated on a specific sort of cosmetic product,
which is skin care products from the Etude House brand, and so other types of cosmetic
products are missed. And finally, this study is effectuated in just one of Thailand provinces
which means other provinces customers’ insights are overlooked.
5.3 Managerial Implications
This research will benefit business owners, investors, and marketers who are related
to the Korean cosmetics industry. The results of the study can help improve brands to add
more value by showing how to respond to the needs of the customers and improve marketing
mix (price, place, channel, promotion). It can help to create a suitable marketing strategy to
their market segment and competitors in the market. It can show if a focus on country of
origin will affect the product. This point can become the competitive advantage of products
in the market. Contribution of this research is mainly applicable to a number of key
stakeholders in the business. This study uncovers customer insight into purchase criteria and
implication in regards to Korea cosmetic products. This understanding will allow marketers
to be able to optimally allocate their marketing budget to the right marketing mix effectively
and efficiently. At the same time, it shows a deeper understanding of what is on a customer’s
mind and will help in the development of new products. Moreover, companies, which are
working in the beauty and care industry like skin care, can better understand Thai consumers
and from these results, would then be able to improve their current strategies in getting
market share. It can help future researchers of consumer behavior and consumption
psychology.

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