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The cosmetics industry in the United States

It is not the assessments of automotive experts, however, which make it possible for automobile manufacturers to price the Mercedes "300" at $60,000, the Cadillac "Seville" at $40,000, and the Honda "Civic" at $20,000. Rather, it is the prestige image created in the collective mind of the target markets which cause these price differentials to be feasible. Thus, any innovation in the way business is conducted which may impinge on perceptions by the target market of the quality/ price relationship must be carefully scrutinized by marketers of prestigegoods.

One relatively recent innovation in product packaging is bar coding. One prestigegood group with a high potential to be adversely affected by bar coding packaging is premiumbrand cosmetics. It is possible that any gains made through increased efficiency at the retail level accruing from the use of bar codes on the packaging of these products may be offsetall or in partby a decrease in product demand, as a consequence of changing consumer perceptions of the quality/ price relationships of the affected products. A premiumbrand cosmetic products refers to those products in the 95th or higher price percentile. Thus, such perfumes as "Chanel," "Joy," and "Giorgio's" are included within the definition.

It has been found that consumers do not generally resist the use of bar codes on the packaging of premiumbrand cosmetics. Resistance is strong, however, to the placing of bar codes on product labels, and on package tops. It has also been found that demand for premiumbrand cosmetics would likely suffer to a statistically significant extent if bar coding were placed on product labels and on package tops. Packaging, thus,

is an important factor in the marketing of prestige brand cosmetics.

Shifts in the distribution of cosmetics are resulting in changes in the industry's product mix (Standard & Poor's, 1990). Cosmetics distribution was, but a short time ago, domin...

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The cosmetics industry in the United States. (1969, December 31). In Retrieved 02:41, September 21, 2017, from
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