Influence of income growth on purchasing patterns of luxury cosmetic products among Nigerian customers
Rapid growth of incomes in Nigeria has resulted in increased consumer spending which allowed the emergence of the new market segments, including luxury cosmetic products. Emergence of middle class along with increasing disposable income, increasing urbanization, more females entering the workplace justifies the demand for luxury cosmetics. It is a dream of any women whatever the age group to look and feel beautiful and this is why the cosmetic industry is so large, as cosmetic consumptions by its customers are growing every day. The purpose of the study is to understand the purchasing patterns of the Nigerian consumer who were luxury cosmetic users who frequented the Estee Lauder companies stores in Nigeria. This was a cross-sectional study conducted among 100 consumers who were selected using systematic sampling techniques. A self-administered anonymous questionnaire was used to gather data from respondents. Results indicated that two thirds (66%) of the luxury cosmetic users were within the 18-35 age group. Most of the respondents in the study had a full time job and 31% of the respondents earned between 132,001 – 379,000 naira, which equates to $660 – $1897. Respondents revealed that their top three luxury cosmetic brands were MAC, Estee Lauder and Bobbie Brown. Consumers are aware of the benefits associated with luxury products, therefore, this market segment must be exploited, as it has untapped potential and opportunity.
Keywords: cosmetics, luxury cosmetic market, purchasing patterns, Nigerian consumer.
JEL Classification: D11, D12, L66.
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