The 'Beauty' of Ingredients: Influence of Ingredient Branding on Service Purchase Decision

ABSTRACT

Rampant commoditization has rendered traditional sources of differentiation weaker in the face of rising competition for beauty services in the organised sector. This paper explores the adoption of Ingredient Branding by organised beauty service providers for differentiating themselves against the competition. The study was conducted in a mixed-method mode, using personal interviews, and online surveys conducted in two stages. EFA and CFA were conducted to extract factors and test the hypotheses. It was found that the presence of an ingredient brand in a beauty service creates an impression of a positive experience for customers. A study of individual ingredients showed that in-house beauticians and the cosmetics used during the beauty service are the two most critical ingredients of beauty service. These insights can help organised beauty service businesses to create differentiation against competitors with the help of ingredient branding. The paper concludes with a discussion on the possible approaches to pick up the right ingredient brand for an organised beauty service business.