International Journal of Research in Engineering, Science and Management 115

Volume 6, Issue 12, December 2023

https://www.ijresm.com | ISSN (Online): 2581-5792

Effects of the Thriving Local Makeup Brands to

Purchasing Behavior of Students Studying
within the City of Manila
Sabrina Francezka A. Dela Cruz1*, Frances Mae S. Tindoy2, Ronaldo R. Cabauatan3
1,2
College of Commerce and Business Administration, University of Santo Tomas, Manila, Philippines
3
College of Commerce and Business Administration, Research Center for Social Sciences and Education, The Graduate School, University of
Santo Tomas, Manila, Philippines

Abstract: This study investigates the impact of local makeup approximately 36 percent of the global cosmetic market.
brands on the purchasing behavior of students within the City of In recent years, the Philippines' makeup industry has grown
Manila, addressing four key research questions. The research
significantly, driven by the increasing demand for beauty
explores demographic factors, brand image, product quality, and
price sensitivity in influencing purchasing decisions. Utilizing a products among Filipinos, which is not only limited to young
cross-sectional research design, data were collected through adults but also applicable to old-aged adults (Conde, 2018).
purposive sampling from the student population in Manila. According to the official website of the International Trade
Findings from the regression analysis using gretl software reveal Administration, the market is dominated by some well-
significant effects: Brand image, price, and quality positively established international brands over the past years such as
influence purchasing behavior, while demographic factors show
Maybelline, Shiseido, Estee Lauder Companies, L'Oreal, and
no significance. The absence of errors such as autocorrelation,
multicollinearity, serial correlation, and heteroskedasticity MAC. However, with the rise of interest in beauty products and
improves the study's reliability. Descriptive statistics and the growing influence of social media influencers in product
Normality Test were employed as modes of analysis. The research promotion (Lim et al., 2022), there has also been a surge of local
contributes valuable insights for local makeup brand users to makeup brands entering the Philippine market. The rise of local
make informed choices, aids brands in optimizing marketing makeup brands in the Philippines can be attributed to a variety
strategies, and serves as a basis for future studies in the field.
of factors, including a rising interest in supporting local
businesses (Salud & Yap, 2022), the availability of affordable
Keywords: local makeup brands, purchasing behavior,
demographic factors, brand image, product quality, price and high-quality ingredients, and the popularity of digital and
sensitivity, students, city of Manila. influencer marketing, which has allowed small brands to gain
exposure (Lim et al., 2022). According to an article entitled
1. Introduction “Philippines’ Cosmetics and Skincare Products”, some of the
Amid the aftermath of the pandemic, local cosmetics most popular local makeup brands in the Philippines include
companies are optimistic about a potential rebound by the BLK Cosmetics, Happy Skin, Sunnies Face, Colourette
middle of next year. As operations gradually normalize, these Cosmetics, and Vice Cosmetics, which offer a range of products
companies anticipate a recovery in the $4-billion industry, from lipsticks and foundations to eyeshadow palettes and
which was significantly affected by the global health crisis, as skincare. These brands have gained a loyal customer base by
reported by the Philippine Daily Inquirer. In accordance with offering unique, trendy, and inclusive products that cater to the
Bom's findings in 2019, cosmetics, as outlined in the current diverse skin tones and preferences of Filipinos. Additionally,
European cosmetics regulation (European Commission, 2015), some of these brands are owned by popular celebrities. With
pertain to substances or combinations intended for application this, it is easier to market brands, as their fame and influence
on the external surfaces of the human body, such as the skin, can be leveraged to capture the market.
hair, nails, lips, external genital organs, teeth, and oral cavity. Over the recent years, there has been a significant growth in
The primary objectives of these substances include cleansing, the makeup industry in the Philippines, as more domestic
perfuming, modifying appearance, safeguarding, sustaining, or brands have entered the market (Santiago, 2020) and the
rectifying body odors. Furthermore, Fran Galetić and Nika demand for beauty products among consumers has also
Požega (2019) assert that the cosmetic market encompasses increased. As a result of this development, there has been a
diverse categories, such as skincare, hair care, makeup, heightened competition between makeup brands, leading to
perfumes, toiletries, deodorants, and oral cosmetics. Among arguments about how the industry is affecting the purchasing
these categories, skincare is the dominant segment, constituting behavior of the consumers. Therefore, this study has three
objectives, namely: (1) To explore how demographic factors
*Corresponding author: [email protected]
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 116

such as age, sex, income, and education level influence in non-face-to-face market environments as a result of the
purchasing behavior towards local makeup brands among impact of COVID-19. This, in turn, led to media personalities
students studying within the City of Manila; (2) to assess the with significant influence becoming influencers and playing a
role of brand image and product quality in purchasing behavior crucial role in shaping changes in consumer behavior. As a
towards local makeup brands among students studying within result, there has been an increase in expenditure on influencer
the City of Manila; and (3) To investigate the extent to which marketing over the past few years. The industry was anticipated
price sensitivity affects purchasing behavior towards local to keep growing, thanks to its dynamic alterations through
makeup brands among students studying within the City of influencer marketing and the establishment of makeup lines by
Manila. celebrities (Gardner et al., 2021). Roy and Datta (2022)
This study holds significant benefits for users of local discussed consumer behavior, drawing on the insights of
makeup brands by providing them with valuable insights into Anderson and Golden (1984) that consumer behavior involves
the factors that influence their purchasing decisions. By psychological processes such as recognition of desires, search
understanding the importance of brand image, product quality, for solutions, purchase decisions, information evaluation, plan
price sensitivity, and demographic factors, users can make more formulation, and plan execution. Roy and Datta (2022) further
informed and rational purchasing decisions that align with their identified key factors that influence consumer behavior,
unique needs and preferences. This study can also help users including personal, social, cultural, and emotional aspects, as
identify the local makeup brands that best cater to their discussed in their study. This theory could be applied to
preferences and circumstances, leading to a more satisfying and understand how consumers in the Philippines perceive and
fulfilling purchasing experience. The findings of this study can respond to local makeup brands, and how their buying behavior
contribute to a more informed and competitive marketplace for is affected by factors such as brand image, price sensitivity, and
local makeup brands, ultimately benefiting consumers through product quality. Numerous possibilities for the cosmetics and
better product offerings and pricing strategies. Furthermore, beauty products industry are growing. This sector has adopted
this study can serve as a basis for future research in the field of market trends such as eco-friendly products being introduced to
purchasing behavior towards local makeup brands, which can the market (Pudaruth et al., 2015) and the necessity for beauty
further benefit users by advancing knowledge and products that are time-efficient and have long-lasting effects to
understanding in this area. the consumers (Dalziel & Klerk, 2021). This chapter aims to
provide a comprehensive review of the literature on the factors
2. Literature that impact consumers’ purchasing behavior towards local
makeup brands within the City of Manila is divided into four
A. Introduction
main sections: brand image, product quality, price sensitivity,
The Philippine makeup industry has been rapidly growing in and demographic profile.
recent years, with more local brands emerging and consumers
becoming more interested in beauty products. Moreover, there B. Brand Image
is also a rising number of Asian brands expanding to Western The first section of the chapter examines the concept of brand
nations (Southworth & Kim, 2015). One reason that explains image and its significance in the perception of consumers to the
the continuous expansion of the makeup industry could be makeup industry. Brand image refers to the perception that
attributed to consumers becoming more mindful of their consumers have of a brand. It encompasses consumers' beliefs,
physical appearance, attractiveness, and overall hygiene feelings, and attitudes toward the brand and how they perceive
(Dalziel & Klerk, 2021). In today's modern society, appearance it in relation to other brands in the market (Zhang, 2015).
is considered as a valuable tool for expressing one's identity and Possible factors that can be considered are social and cultural
enhancing overall well-being, as reflected by the phrase implications, income, advertisements and social media
"appearance is an asset" (Song, Bae, & Lee, 2017). Domzal and influencers.
Kernan (1993) further state that the desire to improve one's The social and cultural implications of the makeup industry's
appearance and be attractive to others often leads to increased growth in the Philippines are positively significant, particularly
consumption of cosmetic and beauty products, driven by in relation to changing beauty standards and purchasing
personal satisfaction with physical well-being and motivation behavior. Appearance, personal hygiene, and grooming have
to participate in social activities. As a result, the beauty and become crucial in today's society for building social image and
cosmetic (C&B) industry has experienced significant global relationships. As a result, there have been significant
development (Hansen et al., 2012). However, one of the most advancements in the makeup industries, as highlighted by
difficult challenges for local makeup brands is their reputation Okonkwo in 2016 (Ajitha & Sivakumar, 2017). Moreover,
for inferior quality (Southworth & Kim, 2015). COVID-19 had Gupta (2022) stated that cosmetics have become an integral
also a significant impact on the purchasing behavior of beauty component of contemporary living. This is due to the fact that
products, according to Ma and Kwon (2021), during the certain research has acknowledged that buying luxury brands
outbreak, a vast majority of individuals sought advice from can boost a person's self-esteem and fulfill their emotional
online sources. The findings of the study states that the needs for acceptance (Smith Maguire and Hu, 2013; Li et al.,
purchasing behavior of beauty products has experienced 2022; Xi et al., 2022) and this results in an increase in the global
significant shifts in the past and present, with a notable increase cosmetics market that reaches a value of $380.2 billion in 2019
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 117

and is projected to expand to $463.5 billion by 2027 (Gupta, advertisements to social media ads due to the fact that social
2022). media websites are now where women seek product reviews
According to the study conducted by Lopaciuk and Loboda and recommendations. Filieri et al. (2018) states that consumers
(2013) which also stated that the global beauty industry is nowadays rely on online consumer reviews (OCRs) to evaluate
experiencing growth due to similar factors such as an increase the quality and performance of products and services they
in consumer income and evolving lifestyles, particularly among intend to purchase, and the perceived expertise of the reviewer
aging baby boomers who have more disposable income. plays a significant role in influencing their purchase decisions.
Triwijayati et al. (2019) examined the relationship between In addition, when consumers are looking for information to
social class, income, and purchasing behavior. The study finds evaluate the quality of products or services, they give more
that income plays a more significant role compared to social importance to the content of the review, the expertise of the
class in influencing consumer decisions related to convenience reviewer, and the popularity of the service, rather than
items. Ampofo (2014) identified several factors that positively considering how similar the reviewer is to themselves.
influence the purchase of beauty products, including the buyer's Generally, advertisements have an impact on the way
income or available pocket money, the product's price and consumers perceive brands (Haider & Shakib, 2017).
brand, and recommendations from others. Consumers with According to Fernandez (2009), Luo (2019), and Dalziel
higher income or more disposable income tend to purchase (2021), the social environment that surrounds particularly
more beauty products than those with lower income. young consumers, can shape their attitudes, beliefs, and
Consumers are often willing to pay more for well-known brands behavior. This social environment may consist of significant
and high-quality products that have been proven effective individuals and those with whom they have close relationships
through advertising and personal recommendations. with. As beauty standards continue to evolve, the makeup
Over the past few years, the cosmetic industry has industry is positioned to meet these changes. Stated by
experienced significant growth due to various factors, including Sandoval (2021), since selfies became a trend, millennial youth
technological advancements, globalization, and increased are now focused on making sure that their faces are suitable for
purchasing power among consumers. This has led to a greater posting on Instagram. This may be associated with the fashion
focus on hygiene and beauty, causing women's behavior when industry, where fashion is a means by which a society and its
it comes to buying and using cosmetics to change. One of the culture express their norms through symbolic innovation.
reasons for this shift in behavior is the increase in advertising, People use fashion to define themselves, visually communicate
as stated by Shaji (2020). their identity to others, and enhance their self-esteem (Solomon
Advertising is aimed at creating a specific perception of the et al., 2006; Evans, 1989; Jan and Abdullah, 2015; Dalziel,
brand in the minds of consumers, and this perception influences 2021). This makeup industry encompasses a wide range of
how consumers view the brand's products or services. techniques and products designed to enhance one's appearance
Consumers are more aware of what they put on their bodies due to align with prevailing beauty standards (De Blasio, 2022).
to advanced education provided by brands regarding their Nowadays, it's not just women who are keen on cosmetic
products' ingredients and benefits, leading to advertising having products, as men are also becoming increasingly interested in
a significant influence on their taste and preference when using such products to enhance their appearance and better
making purchasing decisions (Anute & Deshmukh, 2015). This present themselves to others (Gupta, 2022).
significantly affects the brand image of makeup companies Social media plays a vital role in today's advertising since
since consumers' evaluations are highly influenced by the brand most people nowadays have social media accounts, and the
image (Yang & Liu, 2014). However, traditional advertising is majority rely on social media to purchase products Lim (2022).
becoming less effective as consumers are becoming more According to Thackeray et al. (2008), social media enables
skeptical of it. Traditional advertising refers to any advertising sellers to establish connections with customers through more
that is not created by influencers and is communicated through extensive and engaging media. These digital platforms provide
channels other than social media platforms (Gajanova, an interactive space where sellers can share information with
Majerova, & Nadanyiova, 2020). Banner and ad blindness, customers and customers can also share information with each
which are caused by the sheer volume of advertising messages other (Sashi, 2012). This allows for a two-way flow of
people come across daily (averaging around 10,000), have led communication, facilitating the exchange and sharing of
consumers to ignore or block ads, such as by using AdBlock information between all parties involved. Furthermore, social
(Potter, 2018; Rodgers & Thorson, 2017; Odabasi, 2019). media can be utilized by both brands and consumers as a means
Despite this, personal recommendations from family, friends, of conducting their own research and analysis. Moreover, social
and influencers continue to be a significant factor in beauty media platforms are used as platforms for peers to collaborate
product purchasing decisions (Sammis et al., 2016). Online and set beauty standards through social media posts (Serrano,
influencers are particularly effective at influencing consumers' 2020). Such posts not only construct images of beauty but also
purchasing decisions because they create a personalized promote specific products, including makeup and skincare
connection with their audience, who often perceive them as products, that are used to achieve the desired looks. According
friends. to the findings of the study by Abraham et al. (2022), the type
In addition to advertising, makeup companies have shifted of post significantly influences how brands are perceived and
their marketing strategies from traditional print and television the level of interest they generate. These posts often feature paid
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 118

endorsements or recommendations for beauty products by consumers to become acquainted with a service and assess its
social media influencers. Krywalski (2020) suggests that social quality and effectiveness, it increases the likelihood of
media influencers have a positive impact on their online consumers making a purchase (Filieri et al., 2018). Cited in the
followers and are considered role models with desirable tastes, study by Shen, Weng, and Ma (2021), according to Haddara et
ideas, and attitudes. The use of influencer marketing can al. (2020), favorable evaluations generated by previous
increase awareness and purchase intention for small and customers serve as evidence of a product's quality and
medium-sized enterprises (SMEs) when a beauty influencer reputation. Tang (2017) suggests that these positive reviews
promotes a product to their followers on Instagram foster trust between potential customers and sellers, which is
(Konstantopoulou et al., 2018). However, people may doubt the advantageous for both parties, particularly for online sales. The
authenticity of promotions and reviews from beauty influencers research also confirms that when evaluating the quality of
on social media. Factors such as trust, honesty, and authenticity cosmetic products, intrinsic cues hold greater importance
are crucial for enhancing the impact of electronic word-of- compared to extrinsic cues (Hinčica et al., 2021).
mouth (eWOM), and people are more likely to trust beauty
D. Price Sensitivity
influencers whom they had positive experiences with. In
summary, the fast spread of social media has become a The third section of the chapter examines price sensitivity,
significant force in shaping consumers' purchasing behavior which is the degree to which changes in price affect consumers'
(Wang, 2017). It plays a crucial role in shaping consumers' purchasing behavior (Nagle & Holden, 2018). Price sensitivity
views and contributes greatly to the decision-making process of is an important factor that influences consumers' purchasing
a consumer. behavior, as consumers tend to be more sensitive to price
changes for products that they buy frequently (Maslowska,
C. Product Quality 2017). This section will explore the literature on price
The second section of the chapter will explore the literature sensitivity and how it affects consumers’ purchasing behavior
on the impact of product quality on purchasing behavior for towards local makeup brands within the City of Manila. It will
local makeup brands. The study indicates that the majority of examine the factors that influence price sensitivity, such as
consumers consider product quality as the most crucial factor income level, brand loyalty, and product category (Ampofo,
that influences their purchase decision over any other factor 2014; Moslehpour et al., 2017). The study conducted by
(Acharya et al., 2021). Stated in the study by Hinčica et al. Ampofo (2014) showed that consumers tend to become less
(2021), product quality is considered a significant tool for price-sensitive when they develop stronger emotional
competition in the worldwide market, as noted by Chowdhury connections with a product. The findings of Moslehpour et al.
and Andaleeb (2007), and is also deemed a crucial aspect of 's (2017) study suggest that perceived price is a crucial factor
sustained success, according to Schniederjans et al. (2004). It that significantly affects the effectiveness of word-of-mouth
refers to the perceived level of excellence or superiority of a marketing. Studies have also suggested that the presence of a
product, and it is a significant driver for purchasing behavior. vast array of beauty brands in the market has altered the
The profitability of a company is influenced by the level of perception of product pricing in terms of how people share their
customer satisfaction, which is primarily determined by the opinions about it with others (Neves et al., 2020). In addition,
quality of the product provided (Park, 2020). In the study income level has been found to have a significant impact on
conducted by Song, Bae, & Lee (2017), high-quality hospitality price sensitivity, with low-income consumers being more
and products result in increased customer satisfaction, which is sensitive to price changes compared to high-income consumers
crucial in establishing trust in a brand, increasing awareness of (Hinčica et al., 2021). Finally, brand loyalty and product
its theme, and ultimately securing customer support over time. category have also been identified as factors that influence price
However, the result of the study conducted by Yang and Liu sensitivity, with loyal customers and consumers of luxury
(2014) suggests that product quality and service quality do not makeup brands being less price-sensitive compared to non-
significantly affect customer loyalty, despite their impact on the loyal customers and consumers of mass-market makeup brands
quality of the relationship between customers and the company. (Davies et al., 2012; Maslowska, 2017). The price of beauty
According to the findings of Jamal et al. (2009), who conducted products is a factor that affects how consumers perceive their
a study on a sample of 193 females residing in a prominent quality (Hinčica et al., 2021). This aspect is crucial in
metropolitan city in the UK, using various makeup brands, determining the quality of a product or service since in e-
perceived quality was found to influence the likelihood of commerce, certain consumers may be motivated to make
customers recommending the product to others, but it was not purchases based on additional offers rather than the reputation
found to have a significant impact on customer loyalty towards of the online store.
makeup brands (Hinčica et al., 2021). Moreover, the geographic
E. Demographic Factors
origin of a product can significantly affect consumers'
perception of its quality. Younger consumers (Generation X The final section of the chapter focuses on the demographic
and Y) and older consumers (Baby boomers and Swing profile, including factors such as age, sex, income, education
generations) perceive the quality of Asian brands, particularly level and other variables that may influence consumers’
those originating from Japan and China, differently purchasing behavior. According to Hinčica et al. (2021), there
(Southworth and Kim, 2015). Furthermore, if a website allows are significant differences in quality perception between young
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 119

and older generations in China, while Jothi (2015) found that Philippines. Among these factors, brand image plays a crucial
age impacts the decision-making process of purchasing role in shaping consumers' perception of a brand relative to
cosmetic products in relation to advertising, but not on other others in the market. Advertising, particularly through social
factors affecting consumers’ purchasing behavior. media and online reviews, has a significant impact on brand
Lopaciuk and Loboda's (2013) study identified an increase in image, but personal recommendations remain a critical factor in
consumer income, evolving lifestyles, and aging baby boomers purchasing decisions.
with more disposable income as key drivers of the global beauty In addition to brand image, product quality is the most
industry. Pudaruth et al. (2015) found that women who identify significant driver of consumer purchasing behavior, impacting
as politically liberal and have higher levels of income and customer satisfaction and loyalty. Price sensitivity is another
education tend to display a greater interest in environmental essential factor, with factors such as income level, brand
protection. Meanwhile, Triwijayati et al. (2019) found that loyalty, and product category affecting consumers' sensitivity
income has a greater influence than social class on consumer to price changes. Demographic factors, such as age, sex,
decisions related to convenience items. Ampofo (2014) income, and education, also play a role in consumer purchasing
identified several factors that positively impact the purchase of behavior, with younger generations perceiving quality
beauty products, including the buyer's income or available differently from older generations and women with higher
pocket money, the product's price and brand, and income and education displaying a greater interest in
recommendations from others. environmental protection.
In terms of sex differences, Jothi (2015) found that male In conclusion, the cosmetics industry in the Philippines is
customers exhibit more price-consciousness than female adapting to market trends, such as eco-friendly products and
customers when purchasing cosmetic products. Kim and time-efficient, long-lasting effects, to meet consumers' evolving
Hwang's (2016) study, cited in Hinčica et al. (2021), examined needs and preferences.
how the price sensitivity, bundle discount type, and price level
of male cosmetics influenced consumers' perception of quality. 3. Method
The study involved 214 Korean male respondents in their 20s
A. Research Design
and 30s from Seoul and Gyeonggi. The findings indicated that
these factors had a notable combined effect on the consumers' The research design for this study was cross-sectional, where
quality perception. Zeeshan's (2013) research also found that data were collected from a sample of participants at a specific
brand image is a significant factor that influences men's point in time. This design was appropriate for the research's
purchasing decisions. objectives as it allowed the researchers to examine the
Kotler and Keller (2009) found that various internal and relationship between brand image, product quality, price
external factors, such as perception, self-concept, social and sensitivity, demographic factors, and the purchasing behavior
cultural background, age, family cycle, attitudes, beliefs, of students studying within the City of Manila towards local
values, motivation, personality, and social class, can influence makeup brands. In this study, various statistical software was
consumer purchasing behavior. However, based on Jothi’s utilized as the primary tools for conducting the necessary
(2015) study, he concluded that the study shows that statistical tests and analyses for the research.
demographic characteristics of customers do not have a 1) Data
significant influence on their decision to purchase a cosmetic The study utilized purposive sampling as the method for
product. Instead, product quality is found to be the most selecting the sample. Purposive sampling involves deliberately
important factor compared to brand name, price, and selecting participants based on specific criteria or
advertising. characteristics relevant to the research study (Etikan, Musa, and
The cosmetics industry in the Philippines is undergoing Alkasim 2015), with the aim of obtaining information that
significant expansion, with both local and Asian brands aligns with the research objectives. This method allows the
expanding their reach and consumers' growing interest in researcher to target a particular subgroup of the population that
beauty products. The desire to enhance one's appearance and is of interest for the research study. This method is a non-
attractiveness is prevalent, as appearance is considered an probability sampling technique, which means that the sample
important aspect of self-expression and overall well-being. selected may not be representative of the entire population
However, the reputation for inferior quality of local makeup being studied, and the findings may not be generalized to the
brands poses a challenge for them. Additionally, the COVID- broader population.
19 pandemic has impacted consumer behavior, leading to an The Raosoft (2004) online sample size calculator was
increase in non-face-to-face markets and influencer marketing. utilized to determine the appropriate sample size for this study,
Consumer behavior is shaped by a variety of factors, considering a 95% confidence level and a 5% margin of error.
including personal, social, cultural, and emotional factors. This There were several limitations to the cross-sectional research
chapter focuses on the factors that influence consumers’ design. The design only captures data at a single point in time,
purchasing behavior specifically for local makeup brands in the which may not capture changes or trends over time.
Total Population of Students Studying Within the City of Confidence Margin of Sample Size
Locus of the Study
Manila (A.Y. 2020-2021) Level Error (n)
Schools in the City of
305,878 95% 5% 384
Manila
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 120

Additionally, convenience sampling may introduce sampling treated as highly private and protected in accordance with
bias, as the sample may not be fully representative of the target Republic Act 10173, also known as the "Data Privacy Act of
population. Generalizability of the findings may also be limited 2012." Participation in the study was voluntary, without any
to the specific context of the study (i.e., urban areas of the coercion or force. Participants provided informed consent and
Philippines). were treated fairly, equally, and ethically throughout the entire
This research has chosen to focus on the Universities and study. They were assured that their data would only be used for
Colleges within the City of Manila as the geographical area for the study's purpose and not for any other purpose. The informed
the study due to several factors. Firstly, the target respondents consent form was attached to the questionnaire to ensure
of this study are primarily students, and since the City of Manila respondents' awareness and consent prior to participation. Non-
encompasses different Universities and Colleges, it provides a consenting respondents were automatically excluded from the
suitable location for conducting surveys. Additionally, data study if they indicated 'no' to a certain question on the consent
from the Commission of Higher Education (CHED) for form. Lastly, to ensure adherence to ethical standards and
Academic Year 2020-2021 indicates that the total population of protect the well-being of participants, the data instrument used
the City of Manila was 305,878 as of April 5, 2022 which is in this study underwent a thorough ethics review conducted by
enough to conduct the survey for this study. Thus, the chosen the Educational Policy Research and Development Center at the
location of the study is expected to provide ample information Philippine National University. This crucial step was
and data, given its significant population of Generation Z and implemented to safeguard participants from potential harm and
Generation Alpha individuals, who are likely to be the target maintain the highest ethical standards throughout the research
respondents for this research. process.
3) Econometric Model
B. Data Instrument
In this study, the purchasing behavior is the dependent
The study chose to collect primary data for gathering variable, while the independent variables are Brand Image,
information. The survey includes standardized questions that Product Quality, Price Sensitivity, and Demographic Factors.
operationalize the measurement constructs, aiming to provide a
consistent stimulus to respondents for ensuring comparability PB = β0 + β1 BI + β2PQ + β3PS + β4DF + e
of their responses. Research has demonstrated that slight
modifications in question wording or order can significantly The dependent variable, PB, represents purchasing behavior
impact responses, underscoring the assumption that questions towards local makeup brands, with β0 being the intercept
must be asked verbatim and in the same sequence to obtain data parameter. The slope coefficients for the independent variables
that can be meaningfully compared (Martin, 2006). The are β1 for Brand Image (BI), β2 for Product Quality (PQ), β3
research variables would produce indicators that can be used to for Price Sensitivity (PS), and β4 for Demographic Factors
evaluate the impact on the association between the independent (DF). The error term, represented by e, accounts for other
and dependent variables. The questions included are related to independent variables not included in the study.
respondent's demographic profile, view on brand image,
product quality, and price sensitivity. 4. Results and Discussion
1) Data Gathering Procedure
The data for this study was primarily collected through online This investigation is structured to examine the impact of
questionnaires issued to respondents who had internet access, specific independent variables—namely, Brand Image, Product
an active email address, and a device with web browsing Quality, Price Sensitivity, and Demographic Profile—on the
capability. The study involved approximately 5 to 10 minutes Purchasing Behavior of students in educational institutions
of participant engagement, which encompassed the data located within the City of Manila. The empirical findings were
collection method of answering the survey. Participants were obtained by administering an ethically approved questionnaire
informed in advance about the expected time commitment and to pertinent subjects at the identified location from the fourth
duration of their involvement in the study. The data instrument week of June to the third week of November 2023. The acquired
used in the study included operational and specific measures of data underwent meticulous analysis and interpretation,
the variables, incorporating the socio-demographic profile of employing advanced econometric tools such as Descriptive
the respondents. Additionally, participants were thoroughly Statistics, Ordinary Least Squares, Variance Inflation Factors,
informed about the study's nature, including its background, the Breusch-Godfrey Serial Correlation LM Test, and the
objectives, and ethical considerations, through various Heteroskedasticity Test: ARCH.
communication channels such as social media platforms, email, A. Empirical Results
and other means of communication. Furthermore, participants This study employed the Ordinary Least Squares method to
were provided with an option in the final section of the survey conduct particular regression analysis tests and obtain the
form to express their preference regarding access to the study's essential regression outcomes. The summary of the regression
findings. analysis is presented in the tables below.
2) Ethical Considerations
The confidentiality and anonymity of participant responses
in this study were strictly maintained. Collected data were
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 121

Table 1
Regression analysis result
Dependent Variable: PURCHASING_BEHAVIOR
Method: Least Squares
Included observations: 387
Variable Coefficient Std. Error t-Statistic Prob.
Constant 0.837111 0.432224 1.936751 0.0535
BRAND_IMAGE 0.167367 0.054609 3.064837 0.0023
PRICE_SENSITIVITY 0.436009 0.058341 7.473491 0.0000
PRODUCT_QUALITY 0.245205 0.055521 4.416476 0.0000
AGE 0.014341 0.015920 0.900800 0.3683
ALLOWANCE -0.009988 0.040603 -0.245980 0.8058
SEX -0.034374 0.082609 -0.416097 0.6776
R-squared 0.444568 Mean dependent var 5.244832
Adjusted R-squared 0.435798 S.D. dependent var 0.789938
S.E. of regression 0.593349 Akaike info criterion 1.811854
Sum squared resid 133.7839 Schwarz criterion 1.883453
Log likelihood -343.5937 Hannan-Quinn criter. 1.840245
F-statistic 50.69207 Durbin-Watson stat 1.932584
Prob(F-statistic) 0.000000
Table 2 Lee et al. (2019), Nagle and Holden (2018), Ampofo (2014),
Variance inflation factors
Variance Inflation Factors
and Neves et al. (2020).
Included observations: 387 The third independent variable is Product Quality. The
Variable
Coefficient Uncentered Centered regression analysis results show that the variable positively
Variance VIF VIF affects the Purchasing Behavior of students when buying local
Constant 0.186818 205.3570 NA
BRAND_IMAGE 0.002982 90.27401 2.233815
makeup brands. The p-value of the variable is the same as the
PRICE_SENSITIVITY 0.003404 80.25179 1.545387 p-value of Price sensitivity, which is 0.0000. This indicates that
PRODUCT_QUALITY 0.003083 93.19648 2.177989 product quality is also positively significant since the value is
AGE 0.000253 131.7679 1.256118
ALLOWANCE 0.001649 21.40033 1.575328
less than the alpha of 0.05. The positive relationship between
SEX 0.006824 1.667007 1.296561 product quality and purchasing behavior is also seen in the
studies by Acharya et al. (2021), Shaharudin (2011), Anwar
Table 3 (2015), and Anis (2015).
Breusch-Godfrey serial correlation LM test The last variable is the Demographic Profile, which consists
Breusch-Godfrey Serial Correlation LM Test:
F-statistic 0.500504 Prob. F(1,379) 0.4797
of Age, Allowance, and Sex are all insignificant to the
Obs*R-squared 0.510395 Prob. Chi-Square(1) 0.4750 Purchasing Behavior of students when buying local makeup
brands. The regression analysis shows that the following has a
Table 4 p-value of 0.3683, 0.8058, and 0.6776, respectively. The values
Heteroskedasticity test: ARCH are all greater than 0.05 alpha and indicate that the independent
Heteroskedasticity Test: ARCH
F-statistic 0.020697 Prob. F(1,382) 0.8857
variable is insignificant. The result can also be found in the
Obs*R-squared 0.020805 Prob. Chi-Square(1) 0.8853 studies by Hinčica et al. (2021), Jothi (2015), Ampofo (2014),
Lopaciuk and Loboda (2013), and Kim and Hwang (2016).
The coefficient column in Table 1 shows the relationship It is shown in Table 1 that the value of R-squared is
between the Brand Image, Product Quality, Price Sensitivity, approximately 44.46% of the variance in the dependent
and Demographic Profile to the Purchasing Behavior of variable, which is explained by the independent variables. The
students studying in the City of Manila. The first independent result implies a moderate level of explanatory power since
variable is the Brand Image, which positively affects the higher R-squared values were generally advisable.
Purchasing Behavior of students when buying local makeup Furthermore, the F-statistic value is 50.69207, which suggests
brands. The p-value of the variable is 0.0023, which interprets that the model is more likely to be significant with a Probability
that Brand Image is positively significant since the value is less value of 0.000000, proving that the overall model is statistically
than the alpha of 0.05. The significant relationship between significant. Moreover, the table shows if there is no
brand image and purchasing behavior has the same result as the Autocorrelation error with the use of the Durbin-Watson
studies by Yang and Liu (2014), Anute and Deshmukh (2015), Statistic test. This test implies that if the value is close to 2, there
Pudaruth et al. (2015), Ishak et al. (2019), Lee et al. (2019), is no firm evidence of autocorrelation. In this study, the value
Wang (2021), and Castillo et al. (2022). of the Durbin-Watson Statistic is 1.932584, proving that there
The result of the analysis for Price Sensitivity, which is the is no Autocorrelation Error in the regression model.
second independent variable, shows that it has a significant Table 2 reveals the absence of Multicollinearity Error in the
relationship with the Purchasing Behavior of students when regression model. Multicollinearity, a condition where
buying local makeup brands. The p-value of the variable is independent variables are highly correlated, can complicate the
0.0000, which can be interpreted to mean that price sensitivity isolation of individual variable effects on the dependent
is positively significant since it is less than the alpha of 0.05. variable. However, the results demonstrate that the values in
The same result was found in the studies by Maslowska (2017), Centered VIF fall within the acceptable range of less than 5 but
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 122

greater than 1. This suggests a moderate degree of correlation impact on a range of consumer groups and highlighting its
among predictors, posing no significant threat to the stability ongoing importance in influencing cosmetic purchase behavior.
and interpretability of the regression coefficients. With each Secondly, the study disclosed a positive and significant
variable contributing unique information, coefficients can be relationship between Product Quality and the Purchasing
confidently interpreted. While moderation is advised in the Behavior of students within the City of Manila. This implies
interpretation of coefficients, the findings overall affirm that that a one-unit increase in the perception of product quality
multicollinearity is not a substantial concern in the analyzed corresponds to a 0.245-unit increase in purchasing behavior.
regression model. This suggests that students emphasizing product quality are
The third table highlights the absence of serial correlation inclined to exhibit heightened purchasing behavior. In line with
errors, as indicated by the probability chi-squared value. With Acharya et al.'s (2021) research, most consumers prioritize
a value of 0.4750, notably higher than the significance level of product quality as the foremost determinant influencing
0.05 alpha, the Breusch-Godfrey Serial Correlation LM Test purchasing behavior. The findings underscore the significance
results demonstrate no significant serial correlation issue in the of the quality of local makeup brands in shaping students'
model. This high probability value lends robustness to the purchasing behavior. Consistently, this study affirms that
findings of the regression model, reinforcing the reliability of students prioritizing product quality tend to display increased
its results. purchasing behavior, confirmed by Shaharudin's (2011)
The last table, Table 4.0, shows that there is no assertion that high quality positively influences customer
heteroskedasticity error. Based on the Heteroskedasticity Test purchase decisions. Moreover, these results align with Anwar's
(ARCH) results, there is no substantial evidence suggesting (2015) assertion that Product Quality significantly and
heteroskedasticity in the residuals. The p-values associated with positively impacts Purchase Decisions. Finally, the current
the F-statistic (0.8857) and the Probability Chi-Square (0.8853) research aligns with Anis's (2015) study, reinforcing the notion
exceed conventional significance levels of 0.05 alpha, that product quality positively influences purchase decisions.
indicating that homoskedasticity is not a significant concern in Thirdly, the importance of price sensitivity in influencing
the model, which shows the regression results are reliable. consumers' purchasing behavior is highlighted in the literature,
especially for products purchased frequently (Maslowska,
B. Discussion
2017). The study conducted on students in the City of Manila
The results of the study showed that students studying in the affirms this by revealing a positive and significant correlation
City of Manila have a favorably significant Brand Image in between price sensitivity and purchasing behavior. Specifically,
their Purchasing Behavior. This suggests that a 0.167-unit a one-unit increase in price sensitivity corresponds to a 0.436-
increase in purchase behavior corresponds to a one-unit unit increase in purchasing behavior, suggesting that students
increase in brand image perception. According to the study's with higher price sensitivity tend to exhibit elevated purchasing
results (Lee et al., 2019), brand awareness positively and behavior (Lee et al., 2019). These findings align with existing
significantly affects customers' purchase intentions. Wang literature emphasizing the pivotal role of price sensitivity in
(2021) also shows that group consensus has a big impact on shaping consumer decision-making (Nagle & Holden, 2018).
how people view local beauty companies, which in turn affects Despite budget constraints among students, the positive
how likely it is that people will buy them. It is also evident that significance of the price variable indicates that changes in
brand image is one of the factors influencing consumers' prices of local makeup brands have the anticipated impact. The
purchase decisions. One finding of the Castillo et al. (2022) study challenges Ampofo's (2014) proposition that emotional
study is that there is a significant relationship between connections decrease price sensitivity, indicating that, in this
respondents' purchasing intentions and their image. Moreover, context, students remain significantly influenced by
a finding obtained from the Pudaruth et al. (2015) study fluctuations in prices. The competitive market in the City of
indicated that usage experience and brand perception affect Manila, characterized by a large number of beauty brands,
how much makeup and other beauty care product purchases are underscores the crucial role of price sensitivity in shaping
made by women. Anute and Deshmukh (2015) conducted a students' decisions regarding local makeup brands, confirming
study titled Consumer Buying Behavior Towards Cosmetic the literature's indication that market dynamics can indeed alter
Products, and one of the findings is that 65% of respondents perceptions of product pricing (Neves et al., 2020).
prefer to purchase local products. People's purchase decisions Lastly, examining the complex relationship between
are influenced by brand image, but other aspects are also demographic variables and purchasing behavior, the study's
impacted, such as product quality, as demonstrated by Yang and findings reveal that age, allowance, and sex are not statistically
Liu's (2014) study. Furthermore, some people place a high significant factors within the student population in the City of
value on brands. One group of people that exhibit this is Manila. Despite literature suggesting age's impact on quality
Muslims; Ishak et al. 's (2019) study, Cosmetics Purchase perception in China and its influence on advertising-related
Behavior of Educated Millennial Muslim Females, reveals that decision-making for cosmetic products, as observed by Hinčica
for these women, the brand is the most important factor to et al. (2021) and Jothi (2015), respectively, the non-significance
consider when making cosmetic purchases. In conclusion, the here implies that age might not be a decisive factor in how
thorough examination of numerous studies demonstrates the students respond to local makeup brands. Similarly, the lack of
complex nature of the brand image, illustrating its widespread significance for allowance indicates that contrary to studies by
Cruz et al. International Journal of Research in Engineering, Science and Management, VOL. 6, NO. 12, DECEMBER 2023 123

Ampofo (2014) emphasizing income's positive impact on businesses aiming to optimize strategies tailored to the
beauty product purchases and considering the evolving preferences and behaviors of their target audience. The findings
lifestyles and disposable income of aging baby boomers of this study provide buyers of local beauty brands with
highlighted by Lopaciuk and Loboda (2013), students' insightful information that helps them make more informed
allowances may not significantly sway their purchasing choices. Buyers are urged to give priority to brands that
behavior. In the realm of sex differences, where past research correspond with their expectations and beliefs, given the
by Jothi (2015) emphasized varying price consciousness substantial influence that price sensitivity, product quality, and
between males and females, and Kim and Hwang's (2016) study brand image have on their purchasing decisions. Furthermore,
highlighted the influence of price sensitivity on male users should choose local beauty items based more on their
consumers' perception of quality, the non-significance in this personal preferences than on demographic features, given the
study suggests that, among Manila's students, sex may not play non-significant influence of demographic variables. This
a substantial role in shaping responses to local makeup brands approach guarantees a more fulfilling and customized beauty
in terms of purchasing. This nuanced perspective aligns with purchasing experience. Buyers of local makeup brands stand to
Jothi's (2015) conclusion that demographic characteristics benefit by strategically leveraging the identified influencers of
might not markedly influence cosmetic product purchases purchasing behavior. Emphasizing and cultivating a positive
compared to factors like product quality, enriching the broader brand image can lead to increased buyer engagement and
understanding of the intricate relationship between loyalty. Ensuring high product quality remains a priority, as our
demographic variables and consumer choices within specific results indicate its positive and significant impact on purchasing
contexts. behavior. Additionally, maintaining a competitive edge in the
This study explores various factors influencing students' market requires knowing and accommodating buyers' price
purchasing behaviors in Manila. The manner in which Price sensitivity. By aligning marketing and product strategies with
Sensitivity, Demographic Profile, Product Quality, and Brand these key factors, local makeup brands can enhance their appeal
Image interact shows various factors that collectively shape this and effectively meet buyer expectations. The marketplace,
ever-changing city's consumer market. The results improve enriched by the findings of this study, can foster a more
knowledge of these variables and provide opportunities for competitive and buyer-centric environment. Regulatory bodies
more in-depth research into the changing dynamics of and industry stakeholders should consider incorporating
consumer behavior in Manila's thriving urban center. insights from this research into policies and guidelines to
promote fair practices and protect buyer interests. Additionally,
5. Conclusion fostering an environment that encourages businesses to invest
The study sought to identify the effects of the independent in brand image, product quality, and pricing strategies can
variables (Brand Image, Product Quality, Price Sensitivity, and contribute to a more vibrant and dynamic marketplace for local
Demographic Profile) on the dependent variable (Purchasing makeup brands. Considering the complex dynamics this study
Behavior) of students within the City of Manila. Data collection revealed, future research endeavors should delve deeper into
occurred from June 24, 2023, to November 17, 2023, utilizing specific aspects of brand image, product quality, and price
online survey questionnaires. The primary data instrument sensitivity. Examining the impact of cultural and societal
consisted of four sections encompassing both independent and factors on purchasing behavior can provide interesting insights.
dependent variables. Ordinary Least Squares was employed for Longitudinal studies tracking evolving buyer preferences over
regression analysis. The empirical results demonstrated the time would contribute to a more comprehensive understanding
significance of Brand Image, Product Quality, and Price of this dynamic landscape. Moreover, expanding research to
Sensitivity in influencing the purchasing behavior of students, encompass different geographical regions and diverse buyer
whereas Demographic Profiles (Age, Allowance, and Sex) demographics would further enrich the collective knowledge
showed no statistical significance. base.
The present study concludes a positive correlation among
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