The Effect of Packaging on Consumer Buying Decision
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of this study work (study) are as follow;
- To know the impact of product packaging on consumer buying decision.
- To find out the effect of packaging on the total profit of the company.
- To identify what variable the consumer refers most in packaging in term of shape, size and colour.
- To know whether consumer rely on product packaging in necessary information concerning the use of the product.
- To study the strategies areas of information in designing product packaging.
- To understand consumer behaviour with regards to a product package. Packaging of product provide source of guide for the consumer in purchase process.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Review of Literature
Concept Packaging
Packaging is a primary marketing mix function that gives form to a product and also serves secondary function of promoting and advertising product. Packaging protects and enhances product. Packaging enables products to be easily identified and promotes brand at the point of purchase and even at use (Perreault and Mccarthy, 2005).
Packaging should be aesthetically pleasing and be distinctive enough to stand out when place side by side with competing brands on the shelf. Packaging labeling apart from providing certain kind of information that may be weight, volume and ingredients may be used to advertise the product by inscribing a well designed promotional message on the package (Peter-Texeira and Badrie, 2007).
In addition to the above consideration, decision also have to be made regarding what package sizes to produce, sometimes for certain product packaged, sizes are most popular with certain classes of buyer (Peter-texeria and Badrie, 2007)
Concept Consumer Buying behaivour
Consumer buying behavior is defined as the mental, emotional and physical activities that people engage when selecting, purchasing, using disposing of products and services in order to satisfy needs and desires (Schifinan & Kanuk, 2009). It includes purchasing and other consumption related activities of people engaging in exchange process (Michael, 2005). Solomon, Bainossy, Askegaard and Hogg (2006) defined the term as the study of the process involved when individuals or groups, select, purchase, use dispose of products, service, ideas or experiences to satisfy needs and desire.
Factors Influencing Consumer Behaviour
Consumer buying intentions are influenced by economic, psychological, social and cultural factors.
Economic factors
The key economic factors influence buyer behavior are income and expenditure patterns, prices of products and prices of complementary and substitute goods, and elasticity of demand (Abraham, 1997; Kotler, Armstrong, Sander and Wong, 2001).
Income and expenditure pattern
Total household income less taxes on income is called disposable income The portion of disposable income that is left over after expenditures on food, housing, clothing and other necessities is called discretionary income, which is available for expenditure on luxuries and other non essentials. The first pattern study of consumer spending patterns was published by a German statistician Christian Ernest Engel in 1997 (Abraham, 1997). He found that as family income increase, the percentage spent on clothing, housing and household operations will be roughly constant and the percentage spent on all other categories and the amount saved will increase (Abraham, 1997).
It is important to note that as family income increases, more money in absolute amount will be spent on all categories, the increase and decrease occur as a percentage of the total. Engels law provide only rough guides since many factors other than income affects expenditures and the law may be relied upon when precise data on consumer spending are not available (Abraham,1997).
Elasticity of demand
An alternative view of expenditure is to consider income elasticity of demand which is define as the percentage change in the quantity of commodity consumed divided by change on income. The computed income elasticity could then be compared across products and across countries at different level of economic development.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
It is a term used to describe a number of decisions which need to be taken regarding the collection of data before they are collected. (Nwana, 1981). It provides guidelines which direct the researcher towards solving the research problem and may vary depending on the nature of the problem being studied. According to Okaja ( 2003, p. 2),” research design means the structuring of investigation aimed at identifying variables and their relationship, it is used for the purpose of obtaining data to enable the investigator test hypothesis or answer research question by providing procedural outline for conducting research”. It is therefore, an outline or scheme that serves as a useful guide to the researcher in his efforts to generate data for his study. Survey research method was utilized in this study to collect information or data from respondents.
CHAPTER FOUR
ANALYSIS AND RESULTS
Demographic Characteristics of Consumers
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Summary Of Findings
Considering the result obtained in table 3, the individual coefficient β in each and every variables indicates a positive result with the exception of shabby packaging positive relationship lies between the independent variable attractive packaging and the dependent variable consumer buying behavior. This is consistent with the researches of Lifu (2003); Terblanche (2006), where they found that consumers are attracted at first sight to packaging style of product.
Positive relationship also exists between the independent variable value and quality of packaging and the dependent variable consumer purchasing behavior. This result is consistent with the researches of Best (2002); Lifu (2012), where they found that packaging creates values and quality to product which helps consumers decisions process.
However, a negative relationship exists between the independent variable shabby packaging and dependent variable consumer buying behavior. This is consistent with the research of Lifu (2003) where he showed that poorly packaged product dissuade consumers from buying product irrespective of its quality.
Positive relationship exists between the independent variable impulse purchasing and the dependent variable consumer buying behavior. This is consistent with the researches of Stilley et al (2010) Laforet (2011); Lifu (2012). Their study revealed that product packaging induces impulse purchasing, which perhaps leads to the purchase of products not initially planned for.
The whole analysis show that the independent variables attractive packaging, value and quality of packaging, shabby packaging and impulse purchasing influences consumer buying behavior and gives significant result at p<0.01, F = 61.12 and R2>60, whereas the standard error is less than 1. R2 .642 shows that the model has a good goodness of fit and that 64.2% variation in the consumer buying behavior is accounted for by variation in explanatory variables, suggesting that the model has good explanatory power on the changes in consumer buying behavior among variables. Adjusted R2 .636 supported that the model has good goodness of fit with value of 0.636 or 63.6%. F-statistics 61.52 at 1% level indicates that the model has over all significant at traditional 1% level of significance.
CONCLUSION
It is concluded that the predictor variables, attractive packaging, value and quality of packaging and impulse purchasing has positive relationship with consumer buying behavior. Shabby packaging do not have positive relationship with consumer buying behavior. Most of the results are consistent with the literature.
RECOMMENDATIONS
Based on the research findings, the following recommendations are made.
- When designing product package for sell, attractiveness of the packaging and quality of the product must be taken into consideration to avoid the consequences associated with poor product packaging.
- To be able to be sustainable in present day competitive and computerized market, firms should be able to balance both packaging and quality to meet the level of cost they want as well as building customers confidence and loyalty.
- Packaging and quality of product as a matter of necessity should be included as a major policy decision in organization.
REFERENCES
- Abraham, A.A (1997) Marketing Insight Lecture Handout Post Graduate School University of Calabar, Nigeria. Arnould, E.J. & Thompson C.G (2005) Consumer culture theory. Journal of consumer Research 3, 868 – 881.
- Bae, S.H, S. Nam & S.H, Kim (2011) Empirical Investigation of Consumers’ impulse purchase from Television Home Shopping Channels. A case of Order cancellation Behaviour. Retrieved from http://home.uchicagoedu/- snam2files/BNK2011.pdf
- Best, R.J (2002). Marketing Based Management: Strategic for Growing Customer value and Profitability, Prentice hall, New York
- Kotler, P. Wong, V. Sanders, J. & Armstrong, A (2001) Principles of Marketing Harlow: Pearson Education Limited.
- Laforet, S. (2011) Brand names on packaging and their impact on purchase preference, journal of Consumer Behaviour 10, 18 – 30
- Lifu, F.L (2003) Product Packaging and its effect on Consumer Buying Choice in Calabar. Unpulished M.Sc. Thesis, University of Calabar, Nigeria.
- Lifu, F.L (2012) An Analysis of the effect of product packing on consumers’ Buying Choice in Calabar Municipality, Cross River State Nigeria. Aisan Journal of Business Management 4, 186 – 191
- Michael, S.R. (2005) Consumer Behaviour, Buying, Having and Being 6th (ed) Pearson Education.
- Perrault, W.D, E.J. McCarthy (2005) Basic Marketing: A Global Managerial Approach, Mcgraw-Hill Irwin, companies Inc.
- Peters-Texeira, A and N, Badrie (2007). Consumer perception of food packaging in Trinidad. West Indies and its related impact on food choices. International Journal of Consumer Study. 29, 508 – 514
