IDEAS home Printed from https://ideas.repec.org/a/alu/journl/v2y2012i14p19.html
   My bibliography  Save this article

Lipstick Effect In Romania: Propensity To Buy Cosmetics And Stock Market Evolutions

Author

Listed:
  • Aurora Murgea

    (West University of Timisoara Romania)

Abstract

Usually, consumer spending declines during recession. Cosmetics seem to disobey thisrule; there are evidences to prove that women spending on beauty products increased during theeconomic turmoil. The scarcity of detailed data regarding this industry makes very hard to test thiseffect. The present paper tries to overcome the problem, proposing an alternative methodology toanalyze if the propensity to buy beauty products, especially lipstick, increased during the lasteconomic crisis. More exactly, we use the normalized number of individuals searching fromRomania the world ‘ruj‘ (lipstick) on Google as a proxy of aggregate weekly propensity to buythese products and we investigate if BET evolutions (as a proxy for the financial turmoil) areinversely correlated with it. The results drawn from the empirical analysis show the presence ofsuch an inverse correlation on the Romanian market. The decision to buy cosmetics and especiallylipstick (a product that instantly change the person imagine and could serve as a rapid moodenhancer) seems to be driven by psychological factors and less by rational ones.

Suggested Citation

  • Aurora Murgea, 2012. "Lipstick Effect In Romania: Propensity To Buy Cosmetics And Stock Market Evolutions," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-19.
  • Handle: RePEc:alu:journl:v:2:y:2012:i:14:p:19
    as

    Download full text from publisher

    File URL: http://oeconomica.uab.ro/upload/lucrari/1420122/19.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Leonardo Becchetti & Giancarlo Marini & Aurora Murgea, 2012. "The Spread Nightmare: Financial Crises and Happiness," CEIS Research Paper 252, Tor Vergata University, CEIS, revised 18 Sep 2012.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihai Mutascu & Aurora Murgea, 2017. "Globalization and financial performances in French cosmetic industry," Working Papers halshs-01504099, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:alu:journl:v:2:y:2012:i:14:p:19. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.