1

Submitted

By

Muhammad Umer Khan 973-2024 BBA (2 years)

Submitted

To

Sir Saleem khan

To

Fulfill the Requirement

Of the

Masters of Business Administration, Indus University, Karachi.

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“THE IMPACT OF ETHICAL MARKETING PRACTICES ON

CONSUMER PERCEPTION. ACASE OF COSMETIC BEAUTY
INDUSTRY”.

Abstract:

The restorative business in Pakistan has seen significant development as of late, determined by
rising shopper interest and the impact of promoting. Notwithstanding the extension, native
restorative brands battle to rival worldwide names, and customer fulfillment is frequently molded
by elements like item quality, valuing, and brand picture. This study investigates the effect of
moral showcasing rehearses on customer conduct and faithfulness in Pakistan's skincare market.
The examination centers around understanding how showcasing systems, including the
utilization of computerized stages and corporate social obligation (csr) drives, impact consumer
loyalty, especially among female college understudies who structure a critical portion of the
skincare market.
The concentrate likewise looks at the developing business sector's buyer conduct, featuring what
showcasing strategies mean for buying choices in a quickly developing yet serious area.
Moreover, it tends to the advancing shopper premium in manageable strategic policies, which are
progressively perceived as significant in worldwide business sectors however are still under-
explored in creating economies like Pakistan. From the perspective of moral showcasing, this
exploration researches the job of trust, fulfillment, and brand unwaveringness in forming buyer
mentalities and looks at how nearby and global skincare brands perform against these
assumptions.
The discoveries add to a more profound comprehension of the Pakistan restorative area's
elements and give noteworthy experiences to organizations hoping to upgrade consumer loyalty
and devotion through moral and socially dependable showcasing rehearses. The outcomes are
supposed to help both scholarly world and industry, offering significant information for creating
advertising methodologies that line up with customer assumptions and advance reasonable
business development in the skincare business.
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Introduction:
Companies need to develop competitive management models that aim to fulfill long-term
stakeholder and societal expectations, while simultaneously achieving profits, due to increasing
environmental instability and complexity. (martínez-barrena and others, 2020) Pakistan's
cosmetic sector has experienced notable expansion in recent years. Even still, Pakistan has less
of a market for indigenous brands than it does for international ones. The rise in the sales of
cosmetics is a result of consumers being inundated with advertisements, which they utilize to
learn about products and ultimately make purchases. Nonetheless, indigenous items are not as
popular in Pakistan as those from international names. Every business prioritizes having happy
customers; thus, they closely monitor the variables that affect a customer's choice to buy a
product. Additionally, a happy customer is a resource that businesses should not just maximize
but also optimize (hanif et al., 2010).
It has been stated that there is a distinction between mature market and emerging market
customer behavior with regard to corporate social responsibility. In light of this, it is beneficial to
consider research that indicates consumers' views of corporate social responsibility (csr) and
their interest in moral business practices evolve as markets mature (oe, h.; Yamaoka, 10-july
2021).
In order to demonstrate that the firm engages in ethical business practices and to guarantee that
products are safe for customers to use and pose no health risks, it is also crucial from a corporate
social responsibility (csr) standpoint to reveal production procedures and acceptable ingredient
lists. The obvious ramifications have been discussed here by a number of academics, but the
conversations have mostly focused on the reactions of consumers and global businesses. (Rogers,
v., 2019; European animal-free cosmetics)

Due to their expanding populations and potential for growth, developing markets have an
increasing amount of pertinent research, but more thoroughly study is needed to determine the
viability of data collecting and the business priorities. Unlike the western perspective that
corporate social responsibility (csr) factors strongly influence consumer purchasing behavior

The findings of this insightful empirical research, based on data from an emerging market,
indicate that although consumers in emerging markets typically show interest in and support for
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corporate csr, this enthusiasm does not consistently lead to observable changes in behavior. (oe,
h.; yamaoka, 2021).
Over the past ten years, the cosmetics sector has grown. Industry data indicates that the
worldwide cosmetics market expanded by 5.5% in 2018 compared to 2017 (ridder, 2020). Over
the past ten years, the cosmetics sector has grown. Industry data indicates that the worldwide
cosmetics market expanded by 5.5% in 2018 compared to 2017. There are various categories in
the cosmetics business, such as deodorants, skincare, makeup, hair care, and perfumes. The
advancement of technology is one of the reasons for this growing expansion.
1. Only the skincare market in Pakistan is estimated to be worth $709.70 million, and it is
expected to grow by 2.58% yearly, according to a report from the Pakistan general
cosmetic authority (2022). This indicates that the public in Pakistan is highly aware of the
importance of maintaining healthy skin and is using a wider variety of skin care products
(gallup, 2020). In addition to its widespread use, there are growing worries about the use
of high concentrations of mercury, the third most dangerous chemical, in well-known
goods that are most popular with Pakistan women and have the largest sales (bushra et
al., 2018).
2. A number of factors, including cost, quality, brand name, brand loyalty, and labeling,
affect the use of cosmetics (anjana, 2018). Consumer satisfaction is contingent upon the
quality of the product and fair pricing (jahanshahi et al., 2011; amanah, 2010). The
degree to which customers are satisfied with their purchases is influenced by these
elements (martín-consuegra et al., 2007; etemad-sajadi and rizzuto, 2013).
In the modern world, a brand must adjust to the changes that digitalization has brought about in
order to endure amid the many competitors in the market. The rise of digital marketing in the
1990s and 2000s provided a new way for businesses and brands to use technological innovations
for marketing purposes. Advertisements are the primary method utilized by marketers in
Pakistan's beauty sector to reach target customers. A consumer's level of satisfaction with the
characteristics or features of a product or service’s benefits, or features is known as satisfaction
(sugeng, 2016). According to fornell et al. (1996), expenditure is motivated by consumer
happiness. Women are typically the target of these captivating commercials, which paint a
captivating image of the world. In actuality, advertising is a form of commercial communication
used to manipulate or persuade consumers to purchase desired beauty items.
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Background of the Study:

The rise in the sales of cosmetics can be ascribed to people's exposure to constant advertising,
which they use to obtain information and ultimately make purchases. In order to monitor these
variables and use their advertising to sway consumers' opinions, marketers invest a lot of money
in product promotion and advertising. As an industry representative of Pakistan, i can say that
customer behavior when it comes to buying beauty items is influenced by perception and motive.
Customers in Pakistan have access to an extensive selection of soaps because to the market for
beauty soaps. Some of the major companies in this industry include lux, capri, vital, palmolive,
dove, pears, Himalaya herbs, skin white, saeed ghani, and golden pearl. Unilever holds a
prominent position in the Pakistan cosmetics industry, boasting the widest range of beauty soap
products in the country. (research emergen 2023)