Desired sensory branding strategies in-store versus online: the skincare industry
- Authors: Berman, Gabriella
- Date: 2023-04
- Subjects: Sensory branding , Hides and skins industry , Teleshopping
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/60970 , vital:69556
- Description: Modern shoppers are inundated with purchasing options in every product category, with thousands of brands competing for their patronage. It has therefore become increasingly important for organisations to differentiate product offerings in the market if they want to be competitive. It has further been highlighted that an individual’s experience of a brand is of paramount importance, as it is directly linked to brand loyalty. A vehicle for creating memorable brand experiences is the utilisation of multi-sensory experiences or sensory branding. Within the context of traditional or in-store shopping, sensory branding encompasses the use of visual, auditory, olfactory, tactile and gustatory stimuli to adjust consumer purchasing behaviour. However, more and more consumers are opting for online shopping, spurred on by the effects of the global COVID-19 pandemic, and are no less demanding of brands online than they would be in-store. The cosmetics and personal care industry is one of the more predominant gainers from e-commerce. The skincare industry exhibited one of the largest growth rates from 2019 – 2025 and had an estimated market value of $155.8 billion in 2022. When considering the South African skincare industry in isolation, there is no exception, categorised by high average growth rates and many competitive players in the market. This is apparent when considering that the skincare industry within South Africa is expcted to grow annually by 5.48% from 2023 to 2027, translating to an industry value of $788.4 million by 2027 (Statista 2023). With reference to in-store shopping for skincare products, sensory marketing strategies have been known to be heavily relied on. Therefore, with consumers moving towards online shopping, it is essential for skincare businesses to consider how to deliver sensory experiences online as well as in-store. Whilst the importance of the use of sensory branding and marketing in the skincare industry is notable, both in-store and online, it was established that while there is research available on sensory branding, there is very limited academic research on digital sensory branding and the sensory branding of v skincare products. Moreover, to the researcher’s knowledge, no academic literature specifically investigates the digital sensory branding of skincare brands. Therefore, this study will contribute not only by adding academic research to the topic being investigated but also through rreccomendations made based on the outcomes of this study to skincare brands in South Africa. From the comprehensive literature review, a conceptual model was constructed to investigate the relationship between traditional and digital sensory branding strategies (independent variables) and brand loyalty (dependent variable). Two sets of hypotheses were formulated relating to the identified variables of this study and the empirical research conducted was utilised to deduce whether these hypotheses should be rejected or supported. To conduct the empirical research needed for this study, certain research methodology was employed. This study made use of a positivistic paradigm and a quantitative approach. The target population of this study constituted consumers who had purchased skincare products in-store as well as online and, as no true sample frame existed, respondents were selected through the use of non-probability sampling, more specifically, convenience sampling. To collect the data, an online survey was used, with the specific data collection instrument being a web-based self-administered questionnaire, which was distributed via social media platforms, such as Facebook and LinkedIn, as well as via email. Section A of the questionnaire focused on the demographic details of the respondents, while Section B – Section F related to the variables of the study. A total of 372 potential respondents started the questionnaire, however only 321 questionnaires were deemed usable after the data had been coded and cleaned, indicating a response rate of 86.3%. This study made use of both descriptive (measures of central tendency as well as standard deviation and skewness) and inferential (SEM Models, Primary Models, Pearson’s correlation coefficients, Chi-Square test of Association, ANOVAs and Welch Robust test, Tukey test and Games Howell Test as well as Cohen’s d) statistics to interpret the data, which was graphically illustrated. vi The empirical investigation conducted in this study between the variables and sub-variables revealed that significant relationships exist between traditional sensory branding strategies (traditional olfactory and tactile stimuli) and digital sensory branding strategies (digital visual, olfactory and tactile stimuli) and brand loyalty, with refence to the skincare industry. It was further notable that, with specific reference to the skincare industry, the sense of sight, smell and touch are key factors for sensory branding, whereas auditory stimuli were found to only be useful when used in unison with the other senses. Moreover, with reference to in-store shopping, it was deduced that consumers shop for skincare mostly via retail outlets, which could lead to sensory overload. Furthermore, the results of this study suggest that younger consumers are price sensitive. Based on the pertinent empirical results, and corresponding literature findings, of this study, recommendations were provided to businesses operating in the skincare industry. With reference to in-store trading, it was recommended that because skincare is mostly sold via retail outlets, the brand itself does not have control over all sensory stimuli to which the consumer is exposed. As a result, consumers may be subject to sensory overload and skincare brands should keep their sensory branding in-store simple. Moreover, skincare brands could make use of an in-store aesthetician or beautician, which would facilitate consumer-product interaction. With regards to online trading, a recommendation for skincare brands would be to use moving images or GIFs, which will allow the consumer to more easily imagine the feel of the product. Moreover, skincare brands can make use of brand ambassadors to create “unboxing” videos, which will convey more clearly the sensory information of the product and instil confidence in consumers. Reccomendations were also made with reference to the financial state of consumers, as the financial position of the respondents could influence their decision making. The limitations of this study comprised the availability of reliable existing sources to support the study as the concept of digital sensory branding is still relatively new and, due to the study being focused on the skincare industry, taste stimuli were excluded as they were found to have no relevance. Finally, vii based on all the literature findings and empirical results, recommendations for future areas of study were made. This study provides evidence that both traditional and digital sensory branding strategies have an influence on, or relationship with, brand loyalty. Through this study, the importance of sensory branding, with specific reference to the skincare industry, is brought to light. Furthermore, skincare brands can utilise the information provided to improve the experience of their consumers when shopping in-store, as well as online, thereby increasing their base of brand loyal consumers. , Thesis (PhD) -- Faculty of Business and Economic Sciences, 2023
- Full Text:
- Date Issued: 2023-04
- Authors: Berman, Gabriella
- Date: 2023-04
- Subjects: Sensory branding , Hides and skins industry , Teleshopping
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/60970 , vital:69556
- Description: Modern shoppers are inundated with purchasing options in every product category, with thousands of brands competing for their patronage. It has therefore become increasingly important for organisations to differentiate product offerings in the market if they want to be competitive. It has further been highlighted that an individual’s experience of a brand is of paramount importance, as it is directly linked to brand loyalty. A vehicle for creating memorable brand experiences is the utilisation of multi-sensory experiences or sensory branding. Within the context of traditional or in-store shopping, sensory branding encompasses the use of visual, auditory, olfactory, tactile and gustatory stimuli to adjust consumer purchasing behaviour. However, more and more consumers are opting for online shopping, spurred on by the effects of the global COVID-19 pandemic, and are no less demanding of brands online than they would be in-store. The cosmetics and personal care industry is one of the more predominant gainers from e-commerce. The skincare industry exhibited one of the largest growth rates from 2019 – 2025 and had an estimated market value of $155.8 billion in 2022. When considering the South African skincare industry in isolation, there is no exception, categorised by high average growth rates and many competitive players in the market. This is apparent when considering that the skincare industry within South Africa is expcted to grow annually by 5.48% from 2023 to 2027, translating to an industry value of $788.4 million by 2027 (Statista 2023). With reference to in-store shopping for skincare products, sensory marketing strategies have been known to be heavily relied on. Therefore, with consumers moving towards online shopping, it is essential for skincare businesses to consider how to deliver sensory experiences online as well as in-store. Whilst the importance of the use of sensory branding and marketing in the skincare industry is notable, both in-store and online, it was established that while there is research available on sensory branding, there is very limited academic research on digital sensory branding and the sensory branding of v skincare products. Moreover, to the researcher’s knowledge, no academic literature specifically investigates the digital sensory branding of skincare brands. Therefore, this study will contribute not only by adding academic research to the topic being investigated but also through rreccomendations made based on the outcomes of this study to skincare brands in South Africa. From the comprehensive literature review, a conceptual model was constructed to investigate the relationship between traditional and digital sensory branding strategies (independent variables) and brand loyalty (dependent variable). Two sets of hypotheses were formulated relating to the identified variables of this study and the empirical research conducted was utilised to deduce whether these hypotheses should be rejected or supported. To conduct the empirical research needed for this study, certain research methodology was employed. This study made use of a positivistic paradigm and a quantitative approach. The target population of this study constituted consumers who had purchased skincare products in-store as well as online and, as no true sample frame existed, respondents were selected through the use of non-probability sampling, more specifically, convenience sampling. To collect the data, an online survey was used, with the specific data collection instrument being a web-based self-administered questionnaire, which was distributed via social media platforms, such as Facebook and LinkedIn, as well as via email. Section A of the questionnaire focused on the demographic details of the respondents, while Section B – Section F related to the variables of the study. A total of 372 potential respondents started the questionnaire, however only 321 questionnaires were deemed usable after the data had been coded and cleaned, indicating a response rate of 86.3%. This study made use of both descriptive (measures of central tendency as well as standard deviation and skewness) and inferential (SEM Models, Primary Models, Pearson’s correlation coefficients, Chi-Square test of Association, ANOVAs and Welch Robust test, Tukey test and Games Howell Test as well as Cohen’s d) statistics to interpret the data, which was graphically illustrated. vi The empirical investigation conducted in this study between the variables and sub-variables revealed that significant relationships exist between traditional sensory branding strategies (traditional olfactory and tactile stimuli) and digital sensory branding strategies (digital visual, olfactory and tactile stimuli) and brand loyalty, with refence to the skincare industry. It was further notable that, with specific reference to the skincare industry, the sense of sight, smell and touch are key factors for sensory branding, whereas auditory stimuli were found to only be useful when used in unison with the other senses. Moreover, with reference to in-store shopping, it was deduced that consumers shop for skincare mostly via retail outlets, which could lead to sensory overload. Furthermore, the results of this study suggest that younger consumers are price sensitive. Based on the pertinent empirical results, and corresponding literature findings, of this study, recommendations were provided to businesses operating in the skincare industry. With reference to in-store trading, it was recommended that because skincare is mostly sold via retail outlets, the brand itself does not have control over all sensory stimuli to which the consumer is exposed. As a result, consumers may be subject to sensory overload and skincare brands should keep their sensory branding in-store simple. Moreover, skincare brands could make use of an in-store aesthetician or beautician, which would facilitate consumer-product interaction. With regards to online trading, a recommendation for skincare brands would be to use moving images or GIFs, which will allow the consumer to more easily imagine the feel of the product. Moreover, skincare brands can make use of brand ambassadors to create “unboxing” videos, which will convey more clearly the sensory information of the product and instil confidence in consumers. Reccomendations were also made with reference to the financial state of consumers, as the financial position of the respondents could influence their decision making. The limitations of this study comprised the availability of reliable existing sources to support the study as the concept of digital sensory branding is still relatively new and, due to the study being focused on the skincare industry, taste stimuli were excluded as they were found to have no relevance. Finally, vii based on all the literature findings and empirical results, recommendations for future areas of study were made. This study provides evidence that both traditional and digital sensory branding strategies have an influence on, or relationship with, brand loyalty. Through this study, the importance of sensory branding, with specific reference to the skincare industry, is brought to light. Furthermore, skincare brands can utilise the information provided to improve the experience of their consumers when shopping in-store, as well as online, thereby increasing their base of brand loyal consumers. , Thesis (PhD) -- Faculty of Business and Economic Sciences, 2023
- Full Text:
- Date Issued: 2023-04
Valuation of internet-based businesses
- Authors: Krüger, Janine
- Date: 2013
- Subjects: Electronic commerce , Internet marketing -- Evaluation , New business enterprises , Internet marketing , Retail trade -- Computer network resources , Teleshopping , Consumer behavior
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:9280 , http://hdl.handle.net/10948/d1008187 , Electronic commerce , Internet marketing -- Evaluation , New business enterprises , Internet marketing , Retail trade -- Computer network resources , Teleshopping , Consumer behavior
- Description: This study investigates the valuation of Internet-based businesses. In particular the influence of the implementation of an e-business strategy on the value of a business by focussing on its financial performance, will be determined. Although the valuation of businesses in general has been researched extensively, research on the valuation of Internet-based businesses produced contradictory findings. No consensus could be reached regarding the most appropriate valuation approach to be used. Some research findings indicated that the discounted cash flow approach was the most appropriate while others stipulated that a new valuation approach should be developed. Many authors state that the move to include an e-business strategy is natural, and that businesses cannot afford not to include some form of e-business strategy. Previous research has also shown that by including an e-business strategy, it is possible to improve efficiency of the business and ultimately increase profitability. However, there was no emphasis on how the e-business strategy will influence the business valuation. In order to establish whether an e-business strategy will create value for a business, an empirical investigation was undertaken.
- Full Text:
- Date Issued: 2013
- Authors: Krüger, Janine
- Date: 2013
- Subjects: Electronic commerce , Internet marketing -- Evaluation , New business enterprises , Internet marketing , Retail trade -- Computer network resources , Teleshopping , Consumer behavior
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:9280 , http://hdl.handle.net/10948/d1008187 , Electronic commerce , Internet marketing -- Evaluation , New business enterprises , Internet marketing , Retail trade -- Computer network resources , Teleshopping , Consumer behavior
- Description: This study investigates the valuation of Internet-based businesses. In particular the influence of the implementation of an e-business strategy on the value of a business by focussing on its financial performance, will be determined. Although the valuation of businesses in general has been researched extensively, research on the valuation of Internet-based businesses produced contradictory findings. No consensus could be reached regarding the most appropriate valuation approach to be used. Some research findings indicated that the discounted cash flow approach was the most appropriate while others stipulated that a new valuation approach should be developed. Many authors state that the move to include an e-business strategy is natural, and that businesses cannot afford not to include some form of e-business strategy. Previous research has also shown that by including an e-business strategy, it is possible to improve efficiency of the business and ultimately increase profitability. However, there was no emphasis on how the e-business strategy will influence the business valuation. In order to establish whether an e-business strategy will create value for a business, an empirical investigation was undertaken.
- Full Text:
- Date Issued: 2013
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