Price : value communication in the local cosmetics market

Abstract

Purpose – The aim of the dissertation explores the effectiveness of the strategies found in the Framework for Value Communication within the cosmetics industry with particular interest to the content found in print advertising. Design/methodology/approach – For the purpose of this dissertation, both primary and secondary research methods were adopted. A content analysis was conducted on print advertising published in both local and foreign magazines to identify the advertising content. Focus groups were used as a primary research method to gather insights into the consumers’ perceptions on the different advertising content and their respective implications on the strategies within the framework for Value Communication strategies. Findings – The results highlight the importance and impact of certain advertising content which fall under the different strategies in the Framework. Other ad content was observed to either have a less or no impact whatsoever on the reader. An observed possibility of a hybrid strategy where it encompasses the benefits of both the psychological benefit associations and assurance is proposed. Research limitations/implications – The study does not take in account the price affordability factor as well as the lack of product knowledge from the participants. Furthermore due to time constraints the study does not factor the difference of other possible social classes. Practical implications – Adopting a hybrid strategy for the purpose of print advertising in cosmetics might be more effective than simply adopting one strategy which is limited to the concepts and notions of that quadrant. Originality/value – This dissertation explores the effectiveness of the strategies adopted by companies in communicating price and value through the advertising content found in print media. There are no previous research undertaken in this area. An effective strategy benefits businesses to better reach the consumers with the most influential advertising content elements leading to an interest and desire to ultimately purchase the advertised product. This study also explores the perceive product value, price, quality and risk as well as an insight on value based pricing.