Factors Influencing the Buying Behavior of Kazakhstan Women Cosmetics Consumers: The Role of Computational Marketing

Introduction

The globalization effect, the prosperity of e-commerce, and the highly competitive intensity existing in most industries have changed the role of customers in the trade chain. The enormous quantity of goods directed to satisfy the exact needs or wants, the variety of shopping malls and outlets offering the same service options, and the availability of multi-component products have supported the predominant customer bargaining power and made efforts to make customer choices more influential than ever. Brands have implemented incredible commercial campaigns, used direct marketing, and forced social media advertising to create distinctive advantages in customers' minds. Customer orientation has become an indispensable direction for survival in the competitive era (Potluri & Mangnale, 2011). The market and company management's focus has shifted toward exploring customer behavior and the factors influencing this phenomenon. Generally, buying behavior is the process and patterns of customers to decide which products or services to buy. Numerous factors, such as individual preferences, cultural influences, social standards, marketing analysis, and the overall consumer experience, predispose the customer's behavior. Those factors influencing customer behavior can be divided into cultural, social, personal, and psychological factors (Solan, 2020). There are subgroups for better recognizing the driving force of the customer decision.

Moreover, fierce competition between companies is associated with one or a combination of four marketing mix variables: products, prices, sales channels, and promotions. The marketing mix is a collection of manageable marketing elements that a company employs to elicit a specific response from the intended market (Khan, 2014a). Companies have strategically implemented the 4Ps to create strong customer relationships and foster brand loyalty. The product's appeal, pricing strategy, distribution convenience, and promotional efforts have had equal importance and influence on customer perceptions and purchasing decisions. Kumar (2005) has stated, “The cosmetics market is a significantly vital industry, not necessarily in terms of its contribution to global GDP but by its striking influence on the colorful social lives of humans globally.” Makeup is more than simply a way to enhance natural beauty. It's mostly about self-expression, increasing self-confidence, and following society's beauty standards. The cosmetics market is one of the most in-demand, as the industry's potential is driven by the number of working women and the awareness of appearance among millennial women. Women have achieved economic self-sufficiency and have become a large proportion of the customer society, which intends companies to specify their products toward the preferences of a new target audience (Potluri et al., 2014). Kazakh women and other women in different parts of the globe use makeup to enhance their natural beauty and express their individuality. In Kazakhstan, cosmetic and personal hygiene products were estimated at $526.35 million in 2015, an increase of 3.4% compared to 2014 (Ibraeva, 2017). Currently, the cosmetics industry is the largest segment, reflecting the population's needs. Foreign companies have been operating in Kazakhstan's cosmetics market for a long time, which complicates customers' adaptation to domestic production. However, local manufacturers' gradual introduction of cosmetics and personal care products is still occurring, driven by the lower price offerings, especially considering that most consumers prefer products from the middle price segment. There are 34 manufacturers of perfumes and cosmetics registered in the country. It is noticeable that they occupy a small part of the market due to the high level of competition and the trends in customer preference for foreign products. Analyzing the variety of factors influencing the purchasing behavior of Kazakh women in the cosmetics industry will allow for an understanding of how buyers are most likely to respond positively to the offering and make appropriate marketing strategies to suit target groups. This study aims to identify the factors that influence the purchasing behavior of Kazakh consumers in the context of the Kazakh cosmetics market. This study investigates the effects of cultural, social, psychological, and personal factors that contribute to the decision-making process of Kazakh women when choosing cosmetic products along with the marketing mix elements like product, price, place, and promotion related to factors and the role of computational marketing manifestly discussed in the chapter.