The Effect of Packaging on Sales of Goods
Chapter One
Research Objectives
General Objective
To understand the effect of product packaging on the sales performance of the coffee processing industry.
Specific Objectives
The specific objectives of the study are:
- To examine the effect of packaging color on sales performance.
- To investigate the effect of packaging material on sales
- To examine the effect of product information on sales performance,
- To investigate the effect of innovation on sales
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical Review
It focuses on the relationship between the dependent and independent variables. The distinction between dependent and independent variables is as important in a comparative study as in a regression analysis. Dependent variable in case of a comparative study is the one which we aim to predict and independent variables here are the ones which were used to predict the dependent variable.
Concept on Packaging Design
In this dissertation, it is argued that “packvertising” goes beyond the view of packaging as a communication vehicle for logos, claims and product descriptions. More specifically, it is proposed that packaging has the ability to affect product attribute inferences through unobtrusive features in its design. Packaging design is defined as the graphic and structural elements that comprise a packaging, such as shape, color; size and typeface ( Karjalainen 2007; Underwood 2003; Van Rompay, Pruyn, & Tieke 2009).
These elements may serve as implicit cues that have the capacity to draw attention and connote product attributes through associations. In contrast to explicit cues such as price, brand or claims, these implicit design cues are not immediately consciously perceived and recognized as informative by the consumer. That is, just as consumers may be unaware of the smell of freshly baked bread when they enter a supermarket, they may be unaware of packaging design when they choose a product. Instead, they may deliberatively process explicit cues that they perceive as informational for a relevant attribute, such as labels for healthiness, or price for quality. Rather than explicitly communicating information (Silayoi & Speece 2004), packaging design may induce automatic product associations or „make sense‟ when it is used in way that is congruent with consumer expectations or with the identity of the product (Karjalainen 2007).
In other words, packaging design relates more to the subconscious side of decision-making (Silayoi 2004: Speece 2004). Furthermore, even if consumers are aware of packaging design elements, it is the unawareness of its persuasive effect wherein design differs from explicit packaging cues. As also argued by Chartrand (2005), consumers may or may not be aware of the presence of a (design) cue, but usually lack awareness of the automatic persuasive effect it evokes.
Earlier work on packaging design elements merely addressed effects of packaging design on aesthetical evaluation and visual attention (Bloch 1995; Hekkert 2006; Meyers-Levy & Tybout 1989; Van Rompay & Pruyn 2011; Veryzer & Hutchinson 1998). For instance, research has indicated that (proto) typical packaging design (packaging design typical for products within a given product category) is preferred to a typical product packaging (Loken & Ward 1990).
This effect may be caused by fluency, which comprises that typical objects are cognitively processed with more ease compared to a typical object. This increased ease in cognitive processing induces positive effect, which the consumer automatically attributes to the object (i.e., packaging). Thus, as a result of fluency, typicality increases object attractiveness (Winkielman: Halberstad:, Fazendeiro & Catty 2006). Furthermore, typical design may be associated with the typical product attributes that are sought for within a product category (Veryzer & Hutchinson 1998).
A typical packaging design on the other hand, has the advantage that it draws more attention and increases saliency in the market place (Schoormans & Robben 1997). Thus, packaging design directly affects consumer attention at the point of purchase, and also affects aesthetical evaluations depending on the degree of category representation.
Only recently, scholars have started to show interest in packaging design as a branding tool that signals product attributes by communicating these attributes in a subtle, symbolic or metaphoric way. A number of studies examining the role of such symbols and metaphors in creating product differentiation and identity are based on embodiment accounts, such as Conceptual Metaphor Theory (Lakoff & Johnson 1999), Perceptual Symbol Systems (Barsalou 1999), and Associated Systems Theory (Carlston 1994). The common ground of these theories is the notion that people make inferences regarding concepts (or: attributes) by drawing from existing associations with concrete sensor motor information, such as movement, shapes or colors. Specifically, these inferences regarding attributes are established through repeated co-occurrence between sensory states and semantic concepts. For example, the perception that high entities are often powerful (e.g., skyscrapers or high positions in hierarchies), creates a strong association between verticality and powerfulness, and hence induces inferences regarding powerfulness on the basis of verticality (or vice versa).
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
Research Approach
When conducting a research, there are different ways to consider in approaching the research problem. According to Crewell(2009), there are three research approach which involve quantitative, qualitative and combination of the two. According to Cooper (2003) as cited by Farhadi (2009) quantitative research helps to determine the relationship between an independent variable and dependent variable in a population. It is also used to explain causal relationships to facilitate generalization and to predict the future whereas a qualitative research method provides a complete picture of the situation by increasing the understanding of social process and interrelations.
Bases on the objectives of the study and the availability of relevant information, this study has used quantitative research design which helps to arrive at possible research final destination efficiently. The quantitative approach was applied to examine the relationship between the dependent variable (i.e. sales performance) and the independent variables (i.e. packaging color, packaging material, product information and innovation).
Research Method
Interview, questionnaire and focus group discussions are the three known types of research methods. Focus groups are formally organized, structured groups of individuals brought together to discuss a topic or series of topics during a specific period of time (Marczyk.DeMatteo and Festinger 2005).Questionnaire is a method of deciding on how the sample is to be surveyed (e.g.by mail, by phone, in person) and developing the specific questions that will be used (Marczyk,DeMatteo and Festinger , 2005). Interview is qualitative data required to understand in-depth motivation for people‟s behavior or feelings Adams (2007).
CHAPTER-FOUR
RESULTS AND DISCUSSION
Data Presentation and Analyses
The table 4.2 below shows that, the gender compositions of the respondents 175 or 49% are female and the remaining 183 or 52% are male. The respondent age was categorized between 18-30 years are 101 (28%), the age between are 31-40 years 165 (46%), the age between 41-50 years are 57 (16%), and the age above 51 years are 35 (10%).
It shows that 121 or 34% respondent are single and 222 (62%) are married. The rest 15 or 4% of them are divorced. The academic level of respondents shows that 39 or 11% respondent are from high school and below , 41 or 12% respondent have Diploma, 191 or 53% have bachelor‟s degree, 76 or 21% of them hold master‟s and there is also 10 or 3% respondents answered other which means 3 Phd holders and one Pilot trainer (among the 3%).
CHAPTER-FIVE
SUMMARY OF FINDINGS, CONCLUSION & RECOMMENDATION
Summary of Findings
Packaging is everywhere, the notion of keeping things has commenced considering that age of nomadic hunters and gatherers, the place things were stored by using different herbal materials. The thinking has later advanced into the so called packaging. When we talk of coffee packaging the first thing that comes to mind is our country Nigeria. The story was beginning in Nigeria, the country where the coffee plant was first originated it‟s believed that its cultivation and use started out as early as 9th century in Nigeria. One of the pioneering coffee processing companies is TO.MO.CA PLC a family owned coffee roasting company which was set up in 1953 in Lagos, Nigeria.
The paper aims to contribute to the theoretical understanding of the effect of the packaging on sales performance of coffee processing industry in Lagos by examining the four major researches constructs; these are the effects of packaging color, packaging material, product information, and innovation on coffee product. The different packaging attributes were backed by four hypotheses which are significantly and positively related with the sales performance.
- The research used a sample size of 385 respondents and 358 were responded by assuming 95% confidence interval and 5% margin error from five different
In the descriptive statistics part the following results were achieved.
- The result showed that the data are normally distributed in terms of skewness and From the demographic questions the result showed that the most coffee consumers are male, the age category is between 31-40 years, who are married with bachelors degree and who sometimes have a habit of buying packaged coffee. So the respondents have more experience in buying packed coffee.
In the inferential statistics part the following results were achieved.
- Theresult showed that all the independent variables are strongly and positively related with the dependent variable sales performance.
- Theregression table and the ANOVA model shows that 2% variance in the dependent variable can be predicted from the dependent variable.
- Regression coefficient model showed a change in one independent variable will resultto change in the dependent variable and out of the four independent variables product information results to more
- Based on the different SPSS results the researcher came up that the independentvariables have a significant and positive effect on the dependent variables, so the alternative hypotheses were all
Conclusion
Based on the study, the researcher made the following conclusion.
Packaging is use for marketing communication purposes and they are the important element in which influences the sales performance of a company. Research that have centered on other single signs and symptoms than pictures on programs have determined that such single package deal signs and symptoms as logo names and materials convey complete thought. Package could be treated as one of most valuable tool in today‟s marketing communications in coffee product, necessitating more detail analysis of its elements and effect of those elements on sales performance.
The arguments was made by different scholars on non verbal signs such as packaging color and the verbal signs pictures on packaging, the research is mainly focus in the non verbal signs that is the packaging color.
Packaging material has a positive relation with the sales performance. Using better packaging materials influences the consumer to think that the product is enriched with quality, has healthier protection of the product and are easy to open. Most consumers associate that the quality of the packaging material with the effect towards the price of the product. The packaging of the products mostly shows environmental friendliness of the product.
People want some innovative creations which attract them and shade a different light towards the brand. Unique packaging has a greater influence on sales of the product. Product packed in unique manner is an innovative technique that will positively influence the sales performance. Easy to store and easy to carry innovative packaging designs will enhance the convenience of the consumer in buying the product. This will in turn increase the influence of consumers on sales performance.
Information properly delivered on a packaging can have a powerful effect on sales performance which in result increases the reliability of a product. A display of appropriate information about the product results in influencing sales. The language used to display the information on the packaging gives consumers the ability to understand the product.
Finally, consumers believe that among the attributes the printed information on the package and innovation of the package will have the most influence on the sales performance. The packaging color and the quality of the packaging material on average influence compared to printed information and innovation. All the packaging attributes have an effect on sales performance of coffee processing industry TO.MO.CA PLC.
Recommendation
The general understanding of the influencing factors of sales performance, needed to be examined and reexamined with the ever changing effect of globalization and technology based on the findings proposed in chapter four , this study proposes the following recommendations.
It is highly recommended to the research and product development units that they should give due attention to packaging. The use of poor packaging could result in causing of product failure in the market. It is necessary to set appropriate standards to packaging and to enforce the standards accordingly for better marketing and sales of a product. Researcher believes packages are communication strategy at the point of purchase and proper care given to the packaging attributes, like color, material etc will result in increased consumers buying behavior as they influence sales and revenue of the coffee processing PLC.
It should be noted that packaging is not the only factor that influences the sales performance its one of the factor. Therefore, appropriate marketing techniques should be employed to increase the awareness of the consumer towards the manufacturer‟s product.
The researcher recommends an appropriate level of investment should be made to these attributes; it will result in a reasonable increment in the revenue of an enterprise, as they will influence the sales performance of a company.
It must be noted that enterprises must prioritize between packaging attributes as their effect on the sales performance is not the same. While some attributes like printed information have higher influence, others attributes like colors may not have as much influence as expected.
Finally the researcher believes that among the packaging attribute, innovation of the packaging and printed information on the packaging will have the most influence onthe The researcher also recommends, even though not as influential as innovation and printed information, due attention must also be given to packaging color and packaging material.
Limitation of the study
The research is limited by following points:
The absence of adequate studies regarding packaging and organized data especially empirical literatures, which would be useful to lay more relevant factual base for the study.
The respondents were unwilling to fill the questionnaires due to lack of time and lack of understanding the usefulness of the study.
The sampling source came only from the customers of TO.MO.CA PLC in Lagos. The sample might not be generalized and not fully display the general characteristic of the consumers.
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