Title: The Analysis of 7Ps Service Marketing Mix Affecting Customer Intention in Thailand’s Cosmetic Industry
Author: Wai Yan Ko
Advisor: ดร.วรางค์รัตน์ นิติวนะกุล – Dr.Warangrat Nitiwannakul
Degree: Master of Business Administration
Major: International Business Management
Faculty: Graduate School
Academic year: 2567 (2024)
Published: The 1st Thailand-Sino International Conference and The 17th National and International Academic Conference “New Quality Productive Forces and Sustainable Innovation” 14-16 November 2024 (pp.788-799) Click PDF
Abstract
This research provides a comprehensive analysis of Thailand’s cosmetic industry, which plays a critical role in the country’s economy and has seen significant growth in recent years. The industry, fueled by rising disposable incomes, an expanding middle class, and evolving consumer preferences, is expected to see revenues increase by 5.5% annually through 2025, reaching an estimated $7.3 billion in 2022. Thailand’s strategic position within the rapidly developing Asia-Pacific region, combined with regulatory harmonization under the ASEAN Harmonized Cosmetic Regulatory Scheme (AHCRS), positions the country as ASEAN’s beauty hub, opening up vast opportunities for market expansion. The study delves into the challenges and opportunities within this highly competitive global market, emphasizing the importance of understanding customer intention, particularly the balance between preferences for global and local products. Through the lens of the 7Ps Service Marketing Mix—product, price, place, promotion, people, process, and physical evidence—this research aims to offer strategic insights to enhance the competitiveness of Thai cosmetics companies. This research focuses on the purchasing behavior of cosmetic product users in Bangkok, Thailand, utilizing a well-structured methodology. The study design involved a comprehensive literature review of the 7Ps of service marketing mix and customer intention, which informed the creation of the research questionnaire. The target population comprised individuals who regularly use cosmetic products in their daily routines, with a sample size of 400 respondents, calculated using Taro Yamane’s formula for determining the appropriate sample size. The questionnaire was divided into two parts: the first collecting demographic data and information on cosmetic usage, and the second measuring customer intention using a five-point Likert scale based on the 7Ps of the marketing mix. Data were collected using a convenience sampling method and analyzed using descriptive statistics in SPSS, with further exploratory and confirmatory factor analyses conducted to validate the variables. The findings reveal that product quality and customer service are the most influential factors in cosmetic purchasing decisions in Bangkok, Thailand. Consumers prioritize the quality, ingredients, and performance of products, with customer service, including prompt assistance and helpful staff, also playing a key role. While price is a consideration, value for money is more important than low prices. Convenience, attractive packaging, and an easy purchasing process also positively influence decisions, but to a lesser extent. Promotions have some impact, but they are not the primary drivers of purchasing behavior. The findings are expected to provide valuable contributions not only to the strategic decision-making processes of cosmetic businesses but also to academic discourse, offering a deeper understanding of marketing and consumer behavior in Thailand’s evolving cosmetics industry.
Keywords: 7Ps service marketing mix Strategy, customer intention, cosmetic industry, Thailand
The Analysis of 7Ps Service Marketing Mix Affecting Customer Intention in Thailand’s Cosmetic Industry
6517190009 – Wai Yan Ko 2567 (2024) The Analysis of 7Ps Service Marketing Mix Affecting Customer Intention in Thailand’s Cosmetic Industry สารนิพนธ์ (Independent Study), Advisor: ดร.วรางค์รัตน์ นิติวนะกุล – Dr.Warangrat Nitiwannakul, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, International Business Management, Bangkok: Siam University