Evaluating the effect of brand activations for affordable luxury cosmetics brand X cosmetics Portugal

Abstract

Numerous companies experience uncertainty about how to comprehend the impact of brand activations on marketing outcomes. This study concentrates on the obstacles that a renowned cosmetics brand, referred to as "X Cosmetics Portugal", encountered in this regard. The primary focus of this research was to examine the extent to which purchase value is impacted by a brand activation conducted by X Cosmetics Portugal. Furthermore, this study explores its influence on consumers of varying genders, age groups, and purchase habits, as well as their perception of being influenced by publicity. Primary data was gathered through surveys placed at 32 brand stores during active and inactive brand activation periods. Using techniques like Propensity Score Matching and Average Treatment Effect, the research aims to establish a causal link between activation exposure and changes in consumer behaviour. Despite expectations to the contrary, it was not possible to conclude that the brand activation conducted by X Cosmetics Portugal had a positive effect in boosting the average amount spent by consumers. Nonetheless, it was surprisingly pointed out a potential impact on the spending behaviour of new high-value customers in a positive manner, suggesting an opportunity to target and build loyalty within this particular segment.

Date of Award	24 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Daniel Fernandes (Supervisor)