Hey girl, what are your motives? : Exploring the purchase behavior motives of Swedish females when consuming high-end beauty and skincare products and the effects of online personalized advertising

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Hey girl, what are your motives?

Exploring the purchase behavior motives of Swedish females when consuming high-end beauty and skincare products and the effects of online personalized advertising BACHELOR THESIS WITHIN: Business Administration NUMBER OF CREDITS: 15 ECTS PROGRAMME OF STUDY: International Management AUTHORS: Edith Andersson, Matilda Andersson, Sofie Rehnström TUTOR: Ulf Linnman JÖNKÖPING May 2020

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Acknowledgements

The research team would like to acknowledge everyone that has been involved in the development of this thesis.

Firstly, we would like to express gratitude to our tutor Ulf Linnman, for his guidance and expertise. He provided us with valuable constructive feedback for the duration

of the research process.

Secondly, we want to thank each and every one of the participants in this study. Each individual provided us with insights and allocated us their time, which we are immensely grateful for.

Thirdly, we would like to underline the importance and value of the participants in our seminar group. They have contributed to discussions and with comments that have been of great worth.

Lastly, we want to thank each other for supporting and helping one another out, no matter the issue. Together, we have kept the spirits high even when times have been challenging. It is safe to say that this would have been impossible without each other.

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Bachelor Thesis in Business Administration

Authors: Edith Andersson, Matilda Andersson, Sofie Rehnström Tutor: Ulf Linnman

Date: May 2020

Keywords: Consumer Behavior; Online Personalized Advertising; Swedish Females; Value

Motives; Consumer Response

Abstract

Background: As retailing moves towards online shopping the number of online purchases

have increased substantially over the last year in Sweden (Klarna Bank AB, 2019). The industry of high-end beauty and skincare products has experienced growth in 2019 (PostNord, 2019), which is of interest to investigate. There lies importance for firms in retrieving knowledge of how the target market thinks and reacts. This research allows for a deeper understanding of the motivations of consumer behavior, which will be of high value for retailers and marketers when further operating in 2020 and entering 2021.

Problem discussion: There is a growing body of literature that examines the motivations of

consumer behavior, however, identified gaps have yet to accumulate. Even if online personalized advertising (OPA) is increasingly being used by retailers worldwide, its influence on Swedish females remains unexplored. This exploratory study was undertaken in response to the demand in Sweden and it attempts to draw meaningful connections between consumer response to OPA as well as the value motives explaining consumption behaviors.

Purpose: In order to fill gaps in previous literature, this research sought to build a theory,

which will make meaningful sense of observations on Swedish females in the age group 18-35-year-old’s purchase behavior. More specifically, the research will create an understanding of how OPA influences Swedish females, and what values motivate the female consumer when completing a purchase of high-end beauty and skincare products, with and without respect to the influence of OPA.

Method: A qualitative approach with semi-structured in-depth interviews with 19 Swedish

female participants in the age group 18-35 were conducted. The general analytical procedure for analyzing the collected data was used, and the data was further compared with previous

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Results: This research indicates that participants declare empathy and hedonic values to

influence the completion of purchase. Within the category of empathy values, security is a key value when shopping online. When exposed to OPA, the values of being well-respected and self-respect were added to the explanation for consumer motives of purchases of high-end beauty and skincare products online.

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Table of Tables

Table 1: Definitions of Values……….……….23

Table 2: Background information about participants………...……….37

Tables of Figures

Figure 1: Redefined LOV with categories……….………...25

Figure 2: Research Process………...32

Figure 3: Hierarchical value map of what values motivate females to complete a purchase of a high-end beauty and skincare product online ………...……...41

Figure 4:Hierarchical value map of what values motivate the consumer to complete a purchase of a high-end beauty and skincare product when exposed to OPA………...46

Figure 5: Proposed research matrix for female customer motives when purchasing high-end beauty and skincare products online, with and without respect to OPA………...56

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1. Introduction

In this section the researchers introduce the reader to the topic of consumer behavior and current statistics of online shopping in Sweden, followed by a Purpose of the research. Additionally, Research Questions and Delimitations are presented. Lastly, the section is ended with Definitions related to the research topic.

1.1 Background

Between the years 2018 to 2019, online shopping increased tremendously all over Sweden. When asked whether the Swedish consumers favored online or offline stores, 57% of 18-35-year-olds declared online stores to be preferred. This age group makes up 39% of the total purchases online. Women dominate the online shopping arena (Klarna Bank AB, 2019), and they use social media to a wider extent than men (Bring Logistik AB, n.d.).

When examining Swedish online commerce, the top three categories are clothes and shoes, beauty and health, and books and media. Research has shown that beauty and health have had the highest increase in growth among the industries during the recent year. Companies within this industry have gained market shares and have thereby advanced in positions of the top online stores (PostNord, 2019).

The target market is defined by gender when looking at hedonic and utilitarian products (Liu, Ozanne, & Mattila, 2018). Hedonic purchases are defined as stimulated emotions or aroused feelings such as feeling joy or playfulness (Papista, Chrysochou, Krystallis, & Dimitriadis, 2018), whereas utilitarian purchases serve a goal or the sense of being useful. For instance, women are the main consumers when the purchase is hedonic such as purchasing a yoga session or a facial massage. In contrast, men make up for the main target group when the purchase is utilitarian, as for example purchasing male razors or workout supplements (Liu, Ozanne, & Mattila, 2018).

1.2 Problem discussion

In the following research report, consumer perceptions and buying behaviors will be investigated on products defined as hedonic when purchased. With women as the main target group for these types of purchases, the decision to purely examine their cognitive behavior

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that the likelihood of finding women feeling hedonic emotions to purchases of these types of products was high. The industry has experienced a high increase over 2019 (PostNord, 2019), which will be interesting to investigate. To clarify, high-end beauty and skincare products are brands considered luxurious to some extent, for instance, Dermalogica, REN, and NIOD (Luxe Digital, 2020). Previous research has been conducted in the fields of hedonic purchases online linked to consumers’ attached attributes and consequences to the process, for example, convenience, safety, and personalization. This research aims to dig deeper by applying the laddering technique, the Means-end Theory, the List of Values and the Theory of Reasoned Action on in-depth interviews to explain the values behind female consumers’ motives to complete purchases of high-end beauty and skincare products online.

The aforementioned increase in consumption online has had implications for how retailers communicate with customers online. Digital media, and in particular social media with technological developments, has shifted marketing to e-marketing. With marketing on social media, retailers will gain and maintain relationships with current and potential customers. Thus, retailers can expect long term growth and additional benefits from the use of e-marketing (Noorbehbahani, Salehi, & Zadeh, 2019). Technology advanced e-marketing tools online have increased customer engagement and enjoyment, which has led to an increase in sales (Shanahan, Tran & Taylor, 2019). Hence, search engine advertising has become a superior marketing tool by enabling marketers to target certain advertising to be shown linked to a keyword or search query (Yang, Li, Tao, & Li, 2018). All styles of personalized advertising have led to benefits however, previous research has also proved a negative effect of personalized advertising. Due to the intimate feeling customers can experience on social media, personalized advertising content can be viewed as invasive which has led to skepticism and brand avoidance in some cases (Shanahan, Tran, & Taylor, 2018). Even if retailers increasingly use OPA worldwide, its influence on Swedish females remains unexplored. This research attempts to draw meaningful connections and relations between consumer responses to OPA as well as value motives explaining consumption behaviors. The research problem will be investigated through the perspective of the consumer, and it aims to provide insights on different individual’s opinions and values.

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1.3 Purpose

In order to fill gaps in previous literature, this research sought to build a theory, which will make meaningful sense of observations on Swedish females in the age group 18-35-year-old’s purchase behavior. More specifically, the research will create an understanding of how OPA influences Swedish females, and what values motivate the female consumer when completing a purchase of high-end beauty and skincare products, with and without respect to the influence of OPA.

There is a growing body of literature that examines the motivations of consumer behavior, however, identified gaps have yet to accumulate. This exploratory study was undertaken in response to retailers’ demand in Sweden and it attempts to draw connections between consumer responses to OPA as well as value motives explaining consumption behaviors. This research aims to develop a theory for the social phenomena consumer behaviors, with relevance to the industry of high-end beauty and skincare. By knowing a consumer’s personal values retailers will be able to interpret consumer behavior. With an expected growth rate of 13% on online sales in Sweden (PostNord, 2019), there lies importance for firms in retrieving knowledge of how the target market thinks and reacts. This research allows for a deeper understanding of the motivations of consumer behavior, which will be of high value for retailers and marketers when further operating in 2020 and entering 2021.

1.4 Research Questions

In relation to the purpose stated, in combination with previous research and theory, this study aims to make meaningful sense of the motivations for the consumer behavior to complete a purchase of high-end beauty and skincare products online, two research questions were formulated:

1. What values motivate females to complete a purchase online?

2. How does online personalized advertising influence the value motives of females when completing a purchase online?

1.5 Delimitations

Several limitations were chosen with the reasoning to narrow down the scope of the study and to appropriately reach an answer to the research questions. First, this research focuses on the

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individual’s perspective of her online behavior. The study is delimited to the nationality of the participant since only Swedish individuals participated in the research. As women account for 66% of all online purchases in Sweden (Klarna Bank AB, 2019), the delimitation of females was made. This study is further delimited to the age group 18-35-year-old’s, due to the age group representing 39% of all purchases made by Swedish consumers (Klarna Bank AB, 2019). As aforementioned, females perceptions and buying behaviors were to be explored, with the delimitation to hedonic purchases, and whereas women are the main target group for these types of purchases (Liu, Ozanne, & Mattila, 2018). Lastly, this research focuses on the high-end beauty and skincare industry, an industry that experienced a major increase over 2019 in Sweden (PostNord, 2019) which was considered interesting to investigate by the researchers. The industry of high-end beauty and skincare products was chosen with the belief that the likelihood of finding women feeling hedonic emotions to purchases of these types of products was highly probable.

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1.6 Definitions

This list has been constructed in order to help the reader with valuable words to better understand the research report.

Attribute - a feature of an object, for example, organic, local, pollinator-friendly production

(Khachatryan, et.al, 2018)

Completion of purchase - the action of placing an order of items online

Consequences - emotions stimulated by an object

Empathy values - self-respect, being well-respected, security, and sense of

belonging (Daghfous, Petrof, & Pons, 1999)

Hedonic values - fun and enjoyment in life, excitement, and warm relationships (Daghfous,

Petrof, & Pons, 1999)

Hierarchical value maps - all personal value maps merged together into one value map per

research question

High-end beauty and skincare - brands considered luxurious to some extent, for instance,

Dermalogica, REN, and NIOD (Luxe Digital, 2020)

Klarna (payment method) - one of Europe’s biggest banks and provides payment solutions

that allow consumers to pay how and when they prefer to. Serve 80 million people, across 205 000 businesses, in 17 countries (Klarna INC, n.d.)

Online personalized advertising (OPA) - advertising based upon consumers’ buying

behaviors, preferences, tastes and website browsing (Shanahan, Tran, and Taylor, 2019)

Personal value - a value motivating a consumer to perform an action or take a stand

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Self-actualization values - a sense of accomplishment and self-fulfillment (Daghfous, Petrof,

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2. Frame of Reference

This section presents the Method of Frame of Reference and Method of Primary Data Collection. Thereafter, previous research in the fields of consumer behavior and factors affecting the consumer’s action is presented. Firstly, the concept of Consumer Behavior is explained, and further Marketing and Customer Relationships’ influence is explored. Moreover, OPA’s impact factor is investigated and thereafter relevant Theoretical Frameworks are explained. Lastly, spotted gaps in previous research are expressed.

2.1 Method for Frame of Reference

The frame of reference was conducted with the help of the search engine Primo at Jönköping University library, due to the researchers’ previous experience and convenient access to legitimate literature. Firstly, the keyword online consumer behavior was used which generated 367 295 results. Next, one filter for the accurate years were applied, and articles between 2018-2020 were chosen. From this search, an outcome of 75 249 results was found. Due to the reasoning of retaining relevant and accurate research, the time-span was selected. Despite this, the researchers did acknowledge that valuable literature regarding consumer behavior has been researched prior to 2018; therefore theoretical frameworks from earlier years have been used in this research.

To narrow down the results, the additional filters peer-reviewed journals, English, and the four following chosen topics: consumer behavior, consumer behaviour, decision-making, and

internet marketing were used. The reason for the selected topics was due to being considered

central within the fields of online behavioral advertising and covered the types of literature desired. To further limit the results and to improve the trustworthiness of the research all journals were examined using ABS-list within the fields of marketing. The following journals were chosen: Journal of Consumer Behavior, Journal of Consumer Marketing, Journal of

Research in Interactive Marketing, Journal of Retailing and Customer Services, and Marketing Letters. The ABS-list selection generated 205 articles. Lastly, due to lack of

relevance, articles were subtracted and the final result was 33 articles. The 33 articles were the foundation when forming the frame of reference.

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The theoretical frameworks used in this report were acknowledged through the 33 articles. Individual searches for each theory were thereafter made on Primo. In addition, in order to retrieve explicit knowledge about related theories within the fields of consumer behaviors, the researchers used the published book Belief, Attitude, Intention, and Behavior, An introduction

to Theory and Research provided by Jönköping University library.

2.2 Method of Primary Data Collection

The frame of reference enabled an understanding of relevant data and already conducted research, however since the aim of this report was to conduct a situation analysis the need for an informant was inevitable. The purpose of the informant interview was to gather additional knowledge, not presented in the journals examined, and thereafter narrow down the research to precise research questions, which would be valid and feasible for exploration. The informant Artur Krupke, Digital Solutions manager at the Swedish luxury brand Eton Shirts, provided extensive knowledge within the fields of online business operations. The chosen interview design was semi-structured with closed- and open-ended questions.

2.3 Consumer Behavior

2.3.1 Hedonic and Utilitarian Factors

A product purchase can be either hedonic or utilitarian. Hedonic product purchases serve a purpose of fun, pleasure, or enjoyment, and in contrast, utilitarian product purchases are goal-related serving practical benefits (Haridasan & Fernando, 2018). The target group for hedonic products (eg. spa treatment) is women, whereas men are the target group for utilitarian products purchases (eg. protein powder) (Liu, Ozanne, & Mattila, 2018). Whether it is a purchase of a hedonic or utilitarian product, the time spent online determining the best option is affected (Miliopoulou, 2019).

2.3.1.1 Goals and the Importance of Information

According to the goal subordination theory, individuals with concrete goals, so-called subordinate goals, will show more interest in advertisement providing information related to the goal. Yang, Li, Tao, and Li (2018) propose that the influence is defined by how far the consumer has come in their own decision-making process and what the purposes of their search for information are. The authors state that when it comes to online advertising, there is

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a distinct difference between abstract and concrete information, and how it will affect the consumers’ decision-making. For example, a health-conscious person searching for organic apples has a subordinate goal regarding health, and will, therefore, direct attention to communications specifically about the organic characteristics in the apple. Hence, the individual will emphasize on fulfillment of the goal in search activities by using subordinate goal specific keywords, eg. organic claims (Yang et. al., 2018). The goal of the individual provides an explanation for his or her behavior and it can guide the progress and improve intrinsic motivations. Goal progress and feedback are important in order for the goal to be successful, and the individual can, therefore, adjust efforts and/or strategies (Zhang, Li, Zhang & Zhang, 2019).

If the information shall impact behavior, it must be caught by the customers’ attention and visuals, therefore, play an important role in the decision-making process. Research has shown that consumers are selective of the information they regard. This can be due to information overload or irrelevance, which can lead to overwhelmed customers and negatively influence purchase decisions (Khachatryan, et.al, 2018). According to Nazlan, Tanford, and Montgomery (2018), detailed information is accessible in memory and it is the most powerful and intensive type of information. Customers reviewing products online can sometimes post pictures, and visuals increase intensity and accessibility, thus it can have a stronger impact on consumer decisions than just information containing text (Nazlan, Tanford & Montgomery, 2018).

2.3.2 Online and Offline Shopping

Before consumers can fulfill their decision-making process leading to a purchase decision, the place of the purchase has to be taken into consideration. Sung and Huddleston argue that it is of high importance that the physical or digital store fits within one's' frame of their self-image or self-concept. Therefore, it is critical for marketers to understand their customers, as a consumer's store behavior controls the organization's marketing strategies (Sung & Huddleston, 2018). When a consumer is to decide whether to buy through online or offline channels, they are influenced by the satisfaction the channel provides. It has further been shown that brand awareness online also is applicable to offline purchase intentions (Dabbous & Barakat, 2020). Building onto this, Haradasian and Fernando (2018) examined the values of online shoppers, and most of the participants highlight the utilitarian value of multi-channel

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may influence decision-making in regards to online or offline stores (Haridasan & Fernando, 2018).

2.3.2.1 Factors when Shopping Online

The predominant factor when shopping online is convenience. Online convenience consists of several dimensions, whereas possession convenience and transaction convenience are the most influential drivers. Possession convenience is the time and resources used to receive the intended product, while transaction convenience describes the ease of the payment process and the speed of the check-out process. By improving convenience, retailers will reduce efforts spent by the customer when shopping online. As a result, the customer’s satisfaction and the value of the product will increase (Duarte, Costa e Silva & Bernardo Ferreira, 2018). Another utilitarian attribute to be considered when shopping online is privacy (Haridasan & Fernando, 2018). Security and privacy are deliberate risks and they strongly influence the individual when considering the option of online shopping (Kowalczuk, 2018). Other research has highlighted usefulness to impact online purchase intention among customers (Nedra, Hadhri & Mezrani, 2019).

2.4 Marketing and Customer Relationships

2.4.1 Social Media

Social media has during recent years altered how businesses communicate and interact with their customers. Dabbous and Barakat (2020) stated that social media as a marketing channel attains over two billion users and it provides immense opportunities for creating awareness about brands (Dabbous & Barakat, 2020). Social media channels are for example Facebook, Twitter, Youtube (Dabbous & Barakat, 2020), Instagram (Arora, Bansal, Kandpal, Aswani & Dwivedi, 2019), digital videos and blogs (Dahl, D’Alessandro, Peltier & Swan, 2018). Brand awareness directly affects the purchase decision and companies can influence customers with the usage of social media platforms, create awareness, and then convert the customers into a purchase. When consumers interact with brands on social media and perceive this as a positive experience, this enhances their decision-making process and increases a desire of wanting to purchase the brand (Dabbous & Barakat, 2020).

With the help of social platforms, organizations can conveniently interact with their customers and thereby provide the best experience possible (Bassano, Piciocchi, Spohrer &

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Pietronudo, 2018). Performing this activity on an everyday basis through social media or public engagement tends to increase customer loyalty (Shanahan, Tran & Taylor, 2019). Furthermore, 70% of consumers turn to social media to gain information about products (Dabbous & Barakat, 2020). Individuals use this type of media for functional reasons and it has created an opportunity to instantly and easily voice opinions, concerns, and experiences with an audience (Nedra, Hadhri & Mezrani, 2019). Customers are thereby influenced by these activities in their decision-making process (Nikolinakou & Phua, 2019; Dabbous & Barakat, 2020). If consumers interact and engage in the social media environment, they will more likely pay attention to a brand across multiple channels. This leads to deeper relationships between the company and the customer and can, as a result, drive purchase decisions (Dabbous & Barakat, 2020).

2.4.1.1 Technology Advanced Marketing Tools

Previous research has proved shopping enjoyment, linked to the aforementioned hedonic attributes, and buying intention to be correlated in an online setting. By using technology to stimulate virtual interaction (eg. brand avatars, live chats, etc.) the shopping engagement on social platforms has intensified. The functions of technologies are many, for instance improving the quality of customer experience (Bassanoa, Piciocchib, Spohrerc & Pietronudoa, 2018). Krupke (2020) argues the importance of companies’ staying updated on new inventions in order to maintain a dynamic consumer relationship (Krupke, 2020). The previously mentioned enjoyment will determine whether users adapt the new technology or not, accordingly, high pleasure equals more time spent with the technology. As a result, the integration of technology distinguishes the individual’s attitudes (Nedra, Hadhri & Mezrani, 2019). By doing marketing on social media and exploring technological developments, retailers will gain and maintain relationships with current and potential customers. They can also expect long term growth and additional benefits (eg. reduced cost or new product opportunities) from the use of e-marketing (Noorbehbahani, Salehi, & Zadeh, 2019).

2.4.1.2 Transparency

Social media generates customer insights and maximizes the firm's transparency (Zhu, Tse & Fei, 2018; Chu, & Chen, 2019) and authenticity (Guevremont, 2018), which will increase customer engagement (Dabbous & Barakat, 2020) and loyalty (Guevremont, 2018). Consumers interact with companies they consider reliable on social media and can further

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help other consumers with their decision-making by recommending brands they find trustworthy (Nikolinakou & Phua, 2019). A transparent brand can be defined as a brand that possesses characteristics such as honesty, transparency, and genuineness (Guèvremont, 2018). Individuals’ engagement in business activities on social media affects their purchase intention (Chu & Chen 2019).

2.4.1.3 Social Influence

In order for firms to connect with potential customers and to compete with competitors, it is fundamental to engage in social influence (Krupke, 2020). According to previous studies “Influence marketing is basically to connect online personas with brands based on trust and

engagement of target audiences on a regular basis” (Arora, Bansal, Kandpal, Aswani &

Dwivedi, 2019). Through this marketing strategy organizations can connect with existing and prospective customers, and thereby increase a brand’s clout on the individual (Arora, et al., 2019). Businesses that communicate with their customers in a frequent and intimate manner can be viewed as an authentic resource to the customer (Guévremont, 2018). To conclude, all communication whether it is controlled (eg. advertising or seller-generated content) or uncontrolled (eg. word-of-mouth or electronic word-of-mouth) should be considered a strategic tool (Anisimova, Weiss, & Mavondo, 2019). The digital marketing arena is saturated, therefore something new has to take place. The only thing companies can do now is to keep improving their marketing in order to increase the conversion (Krupke, 2020).

2.4.1.4 Word-of-mouth

An effective tool that affects customers' decision-making process is word-of-mouth (WOM). WOM is a form of uncontrolled communication that consumers often rely on when they consider a new purchase. Customers use this type of quick and engaging communication for gaining information and advice regarding the purchase. The information becomes credible to the customers due to the fact that communication is shared among people in their immediate closeness. There is also a distinction when it comes to traditional WOM and electronic WOM (e-WOM), which occur online. The uncontrolled information online spreads even faster and wider than the traditional ways of WOM, which leads to e-WOM having a greater impact on the decision-making process of customers (Nazlan, Tanford & Montgomery, 2018). WOM can contain both positive and negative content, which leads to the possibility of getting both

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positive and/or negative consequences for the company (Anisimova, Weiss & Mavondo, 2019).

2.4.2 Brand Engagement

Brand engagement provides insight on how the individual allocates time, money, and other resources (Jain & Sharma, 2019). This engagement is the foundation for competitive advantage and it is argued to lead to additional economic gains among companies (Haesevoets, Hiel, Pandelaere & Cremer, 2019). Individuals with a brand attachment will be more loyal and less price-sensitive, thus the brand engagement will predict future product purchases (Hung & Lu, 2018). Customer loyalty can be defined as the general attachment or commitment a customer has to a company. Highlighted is the importance of considering customer loyalty as a greater competitive advantage, which can be used in order to increase profitability in the long term (Haesevoets, Van Hiel, Pandelaere & De Cremer, 2019). It is argued that consumers only engage in companies' social platforms if they perceive it as beneficial. Accordingly, it has shown that consumer loyalty increases and strengthens the connection to the organization over time (Neunhoeffer & Teubner, 2018). Consumers that are open to change their values, which motivates consumption through browsing and gathering information, will be more likely to create content about products. Both content creation and resharing existing content would stimulate hedonic factors such as enjoyment (Nikolinakou & Phua, 2019).

2.4.2.1 Declining Customer Engagement

The individual’s attitude regarding online shopping is in some cases shaped by irritation and informativeness (Yaoyuneyong, Pollitte, Foster & Flynn, 2018). When customers feel that their expectations and emotions are jeopardized by a brand that often generates customers feeling a stronger negative response and uncertainty towards the company (Jain & Sharma, 2019). This can be described as the loss obtained when a brand fails to live up the customer’s expectations (Papista, Chrysochou, Krystallis & Dimitriadis, 2018). Therefore, marketers have to remember that customers who have encountered a negative experience with a brand quickly can turn into enemies, even if they previously were perceived as high-engagement customers (Jain & Sharma, 2019).

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According to Casteran, Chrysochou, and Meyer-Waarden (2019), there are several factors, which can be the underlying reason for declining customer engagement. One factor that affects engagement among one’s consumers is the price. Consumers are becoming more price-sensitive, which has resulted in decreasing customer engagement. Secondly, an increase in education and empowerment has led to customers becoming increasingly cynical in regards to marketing and brands (Casteran, Chrysochou & Meyer-Waarden, 2019). Another factor is the lack of customer services. Disappointing customers by not meeting the demands for support services will lead to a greater risk of customers promoting the product negatively (Krupke, 2020). Consequently, it is of great importance to have comprehensive knowledge about the organization’s customers and their behavior and values (Dahl, D’Alessandro, Peltier & Swan, 2018). It is shown that customers’ personal values have a large impact on their engagement with a brand and an organization's ethical values have a large effect on its customers (Jain & Sharma, 2019).

2.5 Online Personalized Advertising (OPA)

An organization's goal when using online personalized advertising is to create customized online content, which reflects the needs of the consumers and creates positive engagement with the brand (Shanahan, Tran & Taylor, 2019). Personalized marketing campaigns are created by examining the relationship between customer profiles, customer data, and customized communication strategies (Kaptein, 2018). This can then increase the customers’ authenticity, loyalty, and trust towards a company, which further contributes to the customer recommending the company to others (Nikolinakou & Phua, 2020).

2.5.1 Personalization

In a study by Shanahan, Tran, and Taylor (2019) OPA is explained as advertising that is based upon customers' own preferences. Personalization is used by organizations in order to increase the effectiveness of their marketing advertising, campaigns, and relationship management on social media channels. Personalization contributes to an increase in customer engagement and satisfaction and can, therefore, lead to more purchases and increased brand awareness (Shanahan, Tran & Taylor, 2019). Digital marketing, which is commonly used among businesses, has the ability to enhance personalization and effectiveness compared to traditional marketing strategies (Huang, Mou, See-To & Kim, 2019). On the contrary, Krupke (2020) states that personalization should be used cautiously. Consumers can perceive their

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actions being predicted if the personalization is exceedingly tailored, and the experience instead becomes unpleasant (Krupke, 2020).

2.5.1.1 Customer Profiles

Personalization has become more common as a result of organizations having access to large amounts of data on their consumer’s buying behaviors, preferences, tastes, and website browsing. With this data, businesses can create customer profiles that can be used when developing marketing strategies. Companies can then further customize their interactions with their consumers with the help of algorithms, features, and highlight products, which the consumers are likely to find pleasing (Shanahan, Tran & Taylor, 2019). With help of text analytics, advertising optimization, and machine learning, firms can easily tailor-made their marketing towards their customers and also track their customers’ behaviors on their social platforms (Johnson, Muzellec, Sihi & Zahay, 2019).

2.6 Theoretical Framework

In this section, three valid theories will be presented and discussed: the Theory of Reasoned Action, the Means-end Theory, and the List of Values. A valid theory was defined by relevance to the topic and published no earlier than 1975. The Theory of Reasoned Action explains the ground theory for factors motivating individuals, whereas the Means-end theory describes the relationship between attributes, consequences, and personal values. Lastly, the List of Values lists the nine chosen values for interpreting consumer behavior. These three theories will be of great importance since they support the purpose of this research by justifying the significance. They provide direction, validation and disapproval of the research phenomenon on the individual’s opinions and values.

2.6.1 Theory of Reasoned Action (TRA)

A well-established theory for explaining the concepts of attributes, consequences, and motives for behavior, is the Theory of Reasoned Action. The Theory of Reasoned Action, founded by Fishbein and Ajzen indicates which factors that motivate individuals to perform specific behaviors. They argue that the foundation of their framework rests on the distinction between the four pillars: beliefs, attitudes, behavior, and intentions. Beliefs play the most

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important and fundamental part of the framework. When a person is forming beliefs about an object, there are three factors to take into consideration: direct observations, information received from outside sources, and different inference processes. The individual associates a chosen object with different attributes. When doing so, a person does not only form beliefs in regard to oneself but also about other people, institutions, behaviors, and events. The conclusion of one’s beliefs is represented in the informational base that in the end determines one’s attitudes, intentions, and behaviors (Fishbein & Ajzen, 1975).

Attitudes are seen as internal factors, which only affect individuals’ behavior (Nedra, Hadhri & Mezrani, 2019). A person’s attitude towards an object, which is based on one’s belief regarding the object, can consist of primarily favorable attributes that generate a positive attitude. A similar psychological process is used in the case of the object consisting of primarily unfavorable attributes that leads to a negative attitude. One has to remember that a person can have a set of beliefs about an object; both positive and negative. The outcome of a person’s attitude will then correspond to the total set of beliefs (Fishbein & Ajzen, 1975). Furthermore, individuals’ behaviors and attitudes are framed with the help of interpersonal, intra-group and interrelationships (Nedra, Hadhri & Mezrani, 2019). Customer’s behaviors are based on consumer intentions, which can be defined as a consumer’s indication for their future behavior (Yaoyuneyong, Pollitte, Foster & Flynn, 2018). An individual's behavior is founded on three factors: attitude toward specific behaviors, subjective norms and perceived behavioral control. These three factors determine an individual's intentions (Fishbein & Ajzen, 1975).

An individual’s behavior can be explained by his or her beliefs about the outcome, consequence and the evaluation of those consequences. This can be referred to as the intention to perform a specific behavior. Other factors that affect all behavioral intentions are beliefs that are within the individual’s normative nature, such as moral right or wrong (Fishbein & Ajzen, 1975). Social pressure can arise from normative nature when an individual chooses to enhance or not engage in a behavior that is influenced by the intuition of significant others (Prentice, Chen & Wang, 2019). In addition, the sum of all the normative pressures can be referred to as the subjective norm (Fishbein & Ajzen, 1975). Lastly, it is argued that when success is fulfilled in regards to any endeavor the individual’s likelihood of repetitiveness of the action and self-confidence is increased. By having a deeper

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understanding and knowing the customer’s intention, businesses will be able to predict future actions taken by the individual (Yaoyuneyong, Pollitte, Foster & Flynn, 2018).

2.6.2 Means-end Theory

Attributes, consequences, and personal values are associated with the hedonic or utilitarian products the customer considers to buy. These three components strongly influence consumers' decision-making process, which is explained in the Means-end theory. The theory is a qualitative methodology and has previously been applied to consumer motives regarding apparel, cultural products, perfume, and groceries. The theory proposes a model that connects the attributes wanted to the consequences acquired, which further is linked to the personal values received. This value is then portrayed as the driving power, motivating the decision. The Means-end theory presents a hierarchical picture of how consumer motives are cognitively structured (Haridasan & Fernando, 2018).

2.6.3 The List of Values (LOV)

The List of Values (LOV) is a methodology for explaining the link between consumer behavior and values (Kahle, Beatty & Homer, 1986). This methodology was built upon Maslow’s hierarchy of needs, Rokeach’s list of eighteen terminal values, and other related research within the fields of values. The LOV consist of a list of nine values: Sense of Belonging, Excitement, Warm Relationships, Self-fulfillment, Being Well-respected, Fun and Enjoyment in Life, Security, Self-respect, and A Sense of Accomplishment (Kahle, & Kennedy, 1989).

Definitions of Values (Gurel-Atay & Kahle, 2019)

Sense of belonging To be accepted and needed by our family, friends, and community

Excitement To experience stimulation and thrills

Warm relationships To have close companionships and intimate friendships

Self-fulfillment To find peace of mind and to make the best use of your

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Being well-respected To be admired by others and to receive recognition

Fun and enjoyment in life To lead a pleasurable, happy life

Security To be safe and protected from misfortune and attack

Self-respect To be proud of yourself and confident with who you are

A sense of accomplishment

To succeed with what you want to do

Table 1: Definitions of Values

Daghfous, Petrof, and Pons (1999) claimed that the values presented in the LOV can be divided into three categories: hedonic, empathy, and self-actualization (Daghfous, Petrof, & Pons, 1999). According to previous research “the impact is positive for values associated with

hedonism and negative for values related to empathy.” Individuals’ with hedonic values are

most likely to be willing to adapt to new products (Daghfous, Petrof, & Pons, 1999). According to research, the methodology of the LOV is an effective tool when examining values connected to purchase activities (Kim, Forsythe, Gu, & Jae Moon, 2002). When investigating consumer consumption patterns online when searching for high-end beauty and skincare products, as well as the effect of OPA, an understanding of values related to customer activities will be vital for marketers when exploring marketing strategies.

2.6.4 The Researchers’ Connection of the Theoretical Frameworks

An individual’s attitude about an object’s attributes is based on his or her set of beliefs. The individual’s behavior is partly based on attitudes. The behavior can also be described by the individual’s beliefs about the outcome, consequence, and the evaluation of those consequences, which is synonymous with the intention of performing a specific behavior (Fishbein & Ajzen, 1975). Consumer behavior can further be explained by personal values (Kahle, Beatty & Homer, 1986). Consequently, it is important to take the following into consideration:

1. Attitudes and beliefs about an object's attributes 2. Expected and evaluated consequences of the object 3. Personal values motivating behavior

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Therefore, the Means-end theory clarifying the relationship between attributes, consequences, and values, is a useful concept to clarify the above.

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2.7 Gaps in Previous Research

As reviewed in the frame of reference, several attributes and consequences to why consumers behave the way they do in the purchasing process have been examined. Detailed is, for instance, convenience, brand engagement, personalization, and social media, etc., as attributes influencing customers. Additionally, the importance of attributes, consequences, and personal values and how it has shown to have a great impact on customers' purchase of hedonic products has been discussed (Haridasan & Fernando, 2018).

Women are the target group for hedonic purchases (Liu, Ozanne, & Mattila, 2018). Research has investigated what online shoppers value when multi-channel shopping, and it was clear that both hedonic and utilitarian values were highlighted (Haridasan & Fernando, 2018). Hedonic attributes such as enjoyment correlate to increased use and adaption of technology (Nedra, Hadhri & Mezrani, 2019). According to Krupke (2020), the biggest challenge for traditional and already existing companies today and in the future is that many players are far behind their competitors when it comes to digitalization and as a result, have troubles integrating and adapting (Krupke, 2020).

Studies on both genders simultaneously within the fields of technology advanced marketing tools have been conducted. OPA utilizes technology in the marketing strategy by customizing online content in order to create positive customer engagement (Shanahan, Tran & Taylor, 2019). On the contrary, no research has been conducted on OPA and the influence on solely females. Research has shown that women account for 66% of all online purchases made in Sweden. Out of Sweden’s total online purchases, 39% are made by consumers in the age group of 18-35 (Klarna Bank AB, 2019). The industry of high-end beauty and skincare has experienced the highest increase in growth during the recent year (PostNord, 2019). The aim of this report is to investigate the values possessed by Swedish females in the age group 18-35 and their purchasing behaviors of high-end beauty and skincare products with and without respect to OPA. The researchers used neglect spotting when formulating the research gap and two research questions arose:

1. What values motivate females to complete a purchase online?

2. How does online personalized advertising influence the value motives of females when completing a purchase online?

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3. Methodology and Method

This section presents the Methodology of the Research Philosophy and Research Approach. Further, the Method of the research is explained containing the following paragraphs: Primary Data Collection, Semi-structured Interviews, Question Design and Data Analysis. Lastly, a demonstration of Ethics is provided.

3.1 Methodology

3.1.1 Research Philosophy

A subjective interpretivism philosophy was used when the perspective of the reality was investigated in this research. The research aims to provide scientific knowledge that goes beyond the inquiry and the empirical evidence by instead providing insights on the individual’s opinions and values. Since the focus is on human society, the differences between individuals are acknowledged. Previous research has been conducted in the fields of consumer behaviors, although, after finalizing the frame of reference and by using neglect spotting, gaps for future research among Swedish females’ purchase behaviors arose. An inductive approach of research was used, as patterns in data findings were explained with existing literature and theories (Collins & Hussey, 2014). Hence, instead of numerically testing a theory, this research will contribute to literature by generating a theory that will make meaningful sense of observations.

3.1.2 Research Approach

The inductive approach gave the foundation for the methodological choice of a monomethod qualitative study. With the purpose of letting the participants frame the situation and explain her reality (Collins & Hussey, 2014), the researchers gained an understanding and meaning through the qualitative study. The primary source of data collection was in-depth interviews conducted with a cross-sectional time horizon, which enabled an understanding of the social phenomena in the current state of the situation analysis. The research strategy consisted of the previous mentioned patterns in data findings, from the in-depth interviews, which was the predominant part of the results of the research. Accordingly, a grounded theory was developed through the qualitative method.

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This research aims to investigate value motivations for consumer behavior in the unexplored context of female purchase patterns of high-end beauty and skincare products, with and without respect to OPA. The derived findings from the observations were analyzed to make a better understanding, and an applicable theory arose from the connections made through the findings. This research created new knowledge to the existing literature by the development of a theoretical formulation through an exploration of the social phenomena consumer behaviors.

In order to address the chosen research design, the researchers believed in constructing the study with exploratory research, to enable the development of ideas and identification of patterns (Collins & Hussey, 2014). This was a result of little to no previous research conducted on the issue of purchase behavior motives of Swedish females when consuming high-end beauty and skincare products and the influence of OPA. With the intention to uncover motivations and provide insights into the research problem, this was the most suitable approach. The participants' stories revealed reasons for actions, which were analyzed with the strategy of paradigmatic-type narrative inquiry, which interprets the stories as meaning in the findings (Attard, 2007).

A limitation of using the inductive approach is the risk of the research being unable to prove new insights. There might be a case where the present research only supports previous research, as well as no generalization can be made, which has to be taken into consideration. Another drawback with the chosen qualitative method is the extensive efforts that are needed (eg. time consuming) and therefore a smaller sample size has to be selected in order to make the research feasible.

3.2 Method

3.2.1 Primary Data Collection

To answer the research questions and to identify the relevant factors affecting females’ consumer behaviors, a qualitative study was conducted. Non-numerical data was collected through in-depth interviews and thereafter analyzed with a content analysis. There are other forms of collecting data, (eg. focus groups) which would enable the ability to find patterns (Kowalczuk, 2018), however, the chosen form was selected due to the applied interview technique. In order to avoid framing the study to the researcher’s perspective, in-depth

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interviews were conducted. In-depth interviews were considered the most suitable technique to retrieve an understanding of the participants’ take on the social phenomena. The use of in-depth interviews may reveal different and/or more antecedents compared to other qualitative methods. Through the in-depth interviews, rich and useful data was gathered in order to validate the information and create reliability. The selected research design contributed to rich and holistic insights and it offered comprehensive knowledge that was of great value when answering the research questions.

3.2.2 Semi-structured Interviews

Quota sampling was used with a selected amount of 19 participants. To secure valid insights in the interviews, certain characteristics about the participants were chosen:

• Women

• 18-35 years old

• Purchased a high-end beauty and skincare product during the last six months

• Feelings of pleasure/engagement/enthusiasm are stimulated by consumption of high-end beauty and skincare products online

Due to the list of characteristics, one of the initial participants was deselected after analyzing the answers, as she did not fit within the frame of the study. The interviews were semi-structured, with both closed and open-ended questions (Appendix 1). The use of close-ended questions was to confirm the characteristics of the participants. The use of open-ended questions enabled greater insights into the participants’ perception of reality (Azungah, 2018), which improved the reliability of the research. By using the laddering technique, through probing questions, underlying values and factors were revealed during the interviews.

The laddering technique was an unexplored interview technique that none of the researchers had previous experience with. Therefore, a lack of knowledge and competence was present and it was decided that constructing two pilot studies would be a fitting way of gaining further insights, testing the interview questions as well as building ethos. The pilot studies consisted of two individual interviews with participants not participating in the actual study. These experiences enabled the researchers to gather feedback that helped improve and develop the semi-structured, in-depth interviews using the laddering technique. By fulfilling the pilot studies and considering the feedback given, disruptive factors related to lack of skills from the

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was prevented. The pilot studies gave valuable insights on time estimation of the interviews, possible supplementary questions, and the importance of structure among the researchers.

Due to the health issue of CODVID-19, the in-depth interviews were conducted via Facetime and Messenger video call. The aim was to create a safe and silent environment for the interview. Before the interview, the participant had to fill out a consent form confirming ethical approval (Appendix 2). The purpose of the consent form was to inform the participant how the transcript would be stored and used in research, and the purpose of the research was declared. The participants were offered anonymity and answers were noted and recorded with respect to this. All interviews were audio-recorded and transcribed.

3.2.3 Question Design

The laddering technique was used when conducting the interviews, with the intention to evoke consumers' preferences and motivations about the products. These preferences can be divided into three interconnected levels: attributes, consequences, and values. Attributes are defined by product features, whereas consequences could be perceived as emotions stimulated by an object. The last level, values, are stated as the personal and underlying values motivating the individual to take any action or stand. Since individuals may have problems expressing the actual motivations behind purchase the interviewer can help the individual to acknowledge these motivations with the use of the laddering technique (Haridasan & Fernando, 2018). This was performed by repeatedly asking probing questions that generated answers that enabled the interviewer to define the individual’s attributes, consequences, and values. For example, the participant started off by listing product attributes as reasons for consumption, and by investigating this further and asking additional questions, it gave rise to consequences linked to the aforementioned attributes. As the interview continued, the participant stated the values she undertakes with the previously mentioned consequences. Through this technique, the interviewer understood what influenced the participant, as well as the driving force to consumer’s choice.

Alternative interview techniques usually establish the attributes to what determines the consumer’s behavior, but they do not explore the consequences and personal values that are the keystones to an individual’s decision-making process. The laddering technique helps to recognize the elements of the Means-end theory and further to discover consumer motives (Haridasan & Fernando, 2018). Drawbacks regarding the laddering technique are that the

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probing questions can be perceived by the participant as repetitive and extensively investigating. The technique requires the researchers to be alert in order to reach the next level of consumer motives based on the answers stated by the participant. Since the technique is focused on investigating an individual's behavior, no hypothetical decisions can be examined, due to the fact that the participant may experience difficulties in explaining motives that have not occurred. Despite the limitations, the laddering technique unlocks the real drivers for consumer behavior. By going beyond attributes, the researchers reached consequences and values, and an understanding of the values provided guidance to retailers on how to predict consumer behavior, and thereby opportunities were identified.

3.2.4 Data Analysis

Figure 2 demonstrates the structure of the research process. Firstly, interviews were conducted by utilizing the laddering technique, which generated a personal value map per each interview. After transcribing the interviews a content analysis was performed. The reason for constructing a content analysis was to quantify and analyze the meaning of the conducted data, thus identifying the relevant data.

Each of the elements of the Means-end theory, attributes (A), consequences (C), and values (V), were identified by using the personal value maps and the transcribed data. In order to explain the connection between the defined attributes, consequences and values, hierarchical value maps were used. Hierarchical value maps can be defined as the cognitive behaviors and motives individuals possess in different hierarchy levels (Haridasan & Fernando, 2018). The decontextualized values (V) were thereafter put into a coding scheme, consisting of an explanation of each value word based on the participants' answers. The participants' explanation of the value words were compared with Gurel-Atay & Hakle (2019) definitions of values. The data was analyzed with the help of the Means-end theory, the TRA, and the LOV.

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3.3 Ethics

Ethics can be described as the moral principles a person possesses, whereas research ethics extends the moral principle researchers have to implement within their chosen field of study (Collins & Hussey, 2014). It has played an important role throughout this research and it confirmed that the report was written through a moral, responsible, and transparent perspective. To ensure this, as a first step, the researchers contacted individuals with a description of what was being examined and what the criteria for participants were. The participants then acknowledged if they would take part in the study. This enabled them the opportunity of free-will participation, which is of high importance (Bell & Bryman, 2007). In order to enhance the significance of ethics and to create a safe environment for the participants, a consent form was constructed and distributed to the participants before the interviews, which ensured their anonymity and confidentiality (Appendix 2). The interviews were conducted over Facetime or Messenger video call due to the COVID-19 situation. This was inevitable, but it also contributed to a comfortable setting for the participants, as they solely decided where they wanted to conduct the interview.

3.3.1 Anonymity and Confidentiality

Anonymity and confidentiality should always be offered to everyone participating in a study. The term anonymity is defined as the assurance that the participant will be unidentified, and the answers will remain anonymous. Confidentiality means that the traceability of the information provided by the participants is forbidden. In interviews, anonymity and confidentiality contributes to greater openness in the participants’ answers and enhanced freedom of expression (Collis & Hussey, 2014). Anonymity was ensured in the present study by participants signing the consent form provided. The participants were informed that their answers were noted anonymously and that their identity would be in the forms of letters. Confidentiality was guaranteed by the interviewers informing the participants about the handling of data, which was secure and not traceable to any specific individual.

3.3.2 Credibility

It is vital to ensure high credibility for the reader when a research is conducted. Credibility is created by identifying and describing the subject of the study in a transparent manner (Collins & Hussey, 2014). Credibility within research can be ensured in different ways, and by having all the researchers involved and observant in the research process is one way (Collins &

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Hussey, 2014). For this particular study, it was an important factor since the authors had chosen to conduct a qualitative study, which implies that the researchers are the primary collectors of the data and analysis. By conducting two pilot studies to test the interview technique and interview questions, the researchers enhanced credibility.

It was essential that all three researchers were equally involved and present in the process of conducting the research, when designing the questions, during the interviews, and when analyzing the findings. This helped the researchers to gain comprehensive knowledge of the chosen research topic, which was then further implemented in the interviews in order to answer the research questions formulated. Throughout the process, the researchers worked in a back-and-forth process to ensure that themes from the primary data were linked to the existing literature previously found.

Lastly, the credibility of the findings could be enhanced with the help of triangulation from previous literature, an informant, and primary research. The three researchers applied peer-debriefing in order to once again enhance the credibility of the research. Peer-peer-debriefing can be defined as the process of having the information being cross-checked by others, also known as analytic triangulation (Collins & Hussey, 2014). All three researchers cross-checked the transcriptions followed by the translations in order to ensure the research correctness.

3.3.3 Transferability

Transferability can be defined as whether the research findings have the ability to further be applied to other situations, thus, if the findings can be used in generalizations to similar subjects (Collins & Hussey, 2014). Important to take into consideration is that the researchers of this present study chose to do a qualitative study, which often includes a smaller set of samples and can obstruct the possibility of making generalizations on a wider population or sample size (Shenton, 2004). This study can, therefore, be seen as having a low transferability as the insights about females’ responses and motives cannot be applicable to all industries and generalized for all elements of the entire population. Nevertheless, the findings of this study have contributed with meaningful indicators that can be utilized by companies selling high-end beauty and skincare products or firms in related industries.

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3.3.4 Dependability

In regards to dependability, this can be described as to how well the research process has been systematic, accurate, and documented in a correct manner (Collins & Hussey, 2014). By implementing the research thoroughly this can enhance the transparency of the research for the reader. Tools that can be implemented to increase the research dependability are audio recordings, coding, triangulation, and peer-examination (Shenton, 2004). In this research, a general analytical procedure was implemented and followed. All researchers were engaged in the process of the data collection and during the interviews, the questions were asked by the same moderator. As for the personal value maps, they were constructed by the same person for each interview. This was to ensure consistency and to decrease the risks of the interviewer being biased. In addition, the interviews were audio-recorded and one of the interviewers made notes, in order to reduce the risk of data being lost. Lastly, to enhance the dependability and further diminish biased insights, the individually made transcriptions of the interviews were reviewed and confirmed by the other researchers.

3.3.5 Confirmability

The term confirmability means the degree to which the researchers have successfully described the research process and how the findings are completely derived from empirical data only (Collins & Hussey, 2014). Additionally, it is of high importance that the researchers implement explicit observations and quotes rather than personal characteristics and opinions (Shenton, 2004). Within this study, the researchers chose to back up the confirmability with help of audio-recordings and notes made during the interviews. The audio-recordings and notes were then further revised several times by all of the three researchers to ensure confirmability and decrease the researchers' personal opinions. Sections 4 and 5 in this study are representing the empirical findings and analysis. The confirmability of this report is strengthened with the help of quotes and keywords from the interviews in these two sections as well as in the appendices 3 and 4.

Hey girl, what are your motives? : Exploring the purchase behavior motives of Swedish females when consuming high-end beauty and skincare products and the effects of online personalized advertising