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IMPACT OF PRODUCT PACKAGING ON CONSUMER’S BUYING BEHAVIOR

Authors:
  • Indus University Karachi Pakistan

Abstract

The objective of this study is to determine role of packaging on consumer’s buying behavior. The purpose of this research is to examine the essential factors, which are driving the success of a brand. This research also identified the relationship between the dependent and independent variables. This is the primary research and data has been collected through questionnaire and for analysis purpose SPSS software has been used. In this study samples of 150 respondents has been collected and tested the reliability of the model. According to the finding of the research study, it has been observed that the packaging is the most important factor. It is further concluded that the packaging elements like its Colour, Packaging material, Design of Wrapper and innovation are more important factors when consumers making any buying decision. Finally it has also been concluded that the Packaging is one of the most important and powerful factor, which influences consumer’s purchase decision.
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Vol. 122 (2): 125-134, April 2014
DOI: http://www.europeanjournalofscientificresearch.com/issues/EJSR_122_2.html
IMPACT OF PRODUCT PACKAGING ON CONSUMER’S BUYING BEHAVIOR
AHMED RIZWAN RAHEEM1, PARMAR VISHNU2 AND AMIN MUHAMMAD AHMED3
E"mail:(rizwanraheemahmed@gmail.com
Tel: +92-300-8293560 & +92-321-8400465
"
1,3Department of Business Administration & Commerce, INDUS UNIVERSITY, Karachi, PAKISTAN
2,Institute of Business Administration, SINDH UNIVERSITY, Jamshoro, PAKISTAN
Abstract: The objective of this study is to determine role of packaging on consumer’s buying behavior. The
purpose of this research is to examine the essential factors, which are driving the success of a brand. This
research also identified the relationship between the dependent and independent variables. This is the primary
research and data has been collected through questionnaire and for analysis purpose SPSS software has been
used. In this study samples of 150 respondents has been collected and tested the reliability of the model.
According to the finding of the research study, it has been observed that the packaging is the most important
factor. It is further concluded that the packaging elements like its Colour, Packaging material, Design of
Wrapper and innovation are more important factors when consumers making any buying decision. Finally it has
also been concluded that the Packaging is one of the most important and powerful factor, which influences
consumer’s purchase decision.
Key Words: Packaging, Buying behavior, Purchase decision, independent & dependent variables
INTRODUCTION
Now, packaging has become itself a sales promotion tool for the organizations. The consumer’s buying
behavior also stimulated by the packaging quality, color, wrapper, and other characteristics of packaging.
Packaging is a whole package that becomes an ultimate selling proposition, which stimulates impulse buying
behavior. Packaging increases sales and market share and reduces market and promotional costs. According to
Rundh (2005) package appeals consumer’s attentiveness towards a certain brand, increases its image, and
stimulates consumer’s perceptions about product. Furthermore, packaging conveys distinctive value to products
(Underwood, 2003; Silayoi, & Speece, 2007), packaging works as an instrument for differentiation, and helps
consumers to decide the product from wide range of parallel products, packaging also stimulates customer’s
buying behavior (Wells, Farley & Armstrong, 2007).
Previous researches show that there is no agreement on overall classification of packaging material and
package elements. There is also disagreement regarding the methods of package impact on consumer’s buying
behavior decision. Several researchers attempt to examine all potential elements of packaging and their effect on
consumer’s buying decision (Butkeviciene, Stravinskiene, & Rutelione, 2008), however others focus on distinct
elements of packaging and their influence on consumer purchasing behavior (Ampuero & Vila, 2006; Madden,
Hewett, & Roth, M, 2000; Underwood, Klein, & Burke, 2001; Bloch, 1995). Furthermore, some researchers
explore the impact of packaging and its features on consumer’s whole purchase decision (Underwood, Klein, &
Burke, 2001), whereas, some others on each step of consumer’s decision making process (Butkeviciene,
Stravinskiene, & Rutelione, 2008).
Brand image and advertisement have strong positive influence and significant relationship with
Consumer’s buying behavior. People perceive the brand image with positive attitude. Study depicted that
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teenagers in Gujranwala are more conscious about their social status so they prefer branded products and
advertisement affects on their Consumer Buying Behaviour positively (Malik, Ghafoor, Iqbal, Ali, Hunbal,
Noman, and Ahmed, 2013).
The purpose of this research is constructed on hypothetical analysis of packaging components and their
influence on consumer’s buying behavior decision. This empirical study uncovers the features, which are having
the eventual influence on consumer’s choice, when multiple and different choices are available.
Objectives of the Study
To Find Out the effect of packaging on the buying behavior decision.
To check the effect of packaging elements on the buying behavior.
To measure the relative impact of each packaging element on the consumer.
To identify the elements, which should be highlighted while design the packaging.
Research Question
To identify the role of packaging on consumer buying behavior decision
PREVIOUS RESEARCH
Packaging acts multidimensional functions. It offers knowledge about the product and organization, a
technique to communicate with consumers and safeguard to the quality of product (Silayoi & Speece, 2007).
According to Rita Kuvykaite1 (2009) the study reveals the self-service and changing consumers’ lifestyle
having the ultimate effect on consumer choice. Increase in impulse buying behavior labeling is also
communicating to the customer.
Saeed, Lodhi, Mukhtar, Hussain, Mahmood and Ahmad (2013), integrate the brand image, brand
attachment and environmental effects and their impact on consumer purchase decision. Results elaborates that
brand image don’t have a positive relation with purchase decision, brand attachment has a moderate positive
relation with purchase decision and environmental effects but don’t have a positive relation with purchase
decision (Ahmed & Kazim, 2011).
The consumers purchase more quantity of the products, after looking a well-labeled product. Therefore
labeling influences the consumer buying behavior, but there are some other factors also, which influence the
consumer buying behavior (Saeed, Lodhi, Rauf, Rana, Mahmood & Ahmed, 2013).
In recent times, people are becoming more concerned towards green purchasing because of a grown
consciousness for environmental protection. Green purchasing is essentially the act of buying environmental
friendly products. The research model in this study examines the consequences of predictor variables
(environmental concern, organizational green image and environmental knowledge) upon criterion variable
(green purchase intention) with the moderating effect of perceived product price and quality (Underwood, 2003;
Rettie & Brewer, 2000; Barber, Almanza, & Donovan, 2006). Adelina & Morgan (2007) conclude that
Packaging could be treated as one of the most valuable tool in today’s marketing communications; Packaging
has an important impact on consumers buying behavior. The impact of packaging and its elements can impact
the consumer’s purchase decision (Ahmed et.al, 2014)
According to Karbasivar & Yarahmadi (2011), more apparel impulse buying and promotional
approaches (cash discount) usage between sample, as well as in-store form display (window display) has
important role to encourage consumers to buying impulse. They can gift complementary products to encourage
consumer to buying impulse. Also sealers can increase apparel impulse buying with decorating their stores in
modern style and use attractive lights and colours. The result of the study proves that there is a pivotal
relationship between window display, credit card, promotional activities (discount, free product) and consumer
impulse buying behaviour (Alice, 2006).
According to Erzsebet & Zoltan (2007) both the qualitative and quantitative research showed that
respondents adopted similar risk reduction strategies in their purchase of baby care products. This research
investigated consumer perceptions and buying behavior of baby care products. The results of the primary
research showed that consumers’ needs satisfied with the product in terms of reliability and performance and
packaging.
According to Butkeviciene, Stravinskiene and A. Rutelione (2008), impulse buying is indeed a relevant
factor in CE retailing, thus justifying the use of sales packaging. However, optimization is still important. From
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an economical and environmental perspective it is very costly to apply sales packaging (with additional material
use and transport volume) to products that do not need them, or to apply them in an ineffective way.
Saeed, Lodhi, Mukhtar, Hussain, Mahmood and Ahmad (2011), integrate the brand image, brand
attachment and environmental effects and their impact on consumer purchase decision. Results elaborates that
brand image don’t have a positive relation with purchase decision, brand attachment has a moderate positive
relation with purchase decision and environmental effects but don’t have a positive relation with purchase
decision (Ahmed, Arif & Meenai, 2012).
RESEARCH METHODOLOGY
Theoretical Framework
The theoretical framework between independent and dependent variables can be expressed as follows:
Independent Variable
Packaging color
Color plays an important role in a potential customer’s decision-making process, certain
colors set different moods and can help to draw attention.
Packaging Material
Any material used especially to protect something- packing, wadding. Consumer can change
its decision regarding Packaging material. High quality Packaging attract consumer then low quality
Packaging. So packaging material has strong impact on buying behavior.
Design of wrapper
The overall design also plays a vital role in attracting the consumer. Mostly the children of 10-
18 years are so sensitive to the design of wrapper. The companies try their best to create attractive
design of packaging.
Innovation
Innovative packaging may actually add value to the product if it meets a consumer need such
as portion control, recyclability, tamper-proofing, child-proofing, easy-open, easy-store, easy-carry,
Independent'Variable'
Packaging(Color(
Packaging(Material(
Design(of(Wrapper(
Innovation(
Dependent'Variable'
Consumer’s"Buying"Behavior"
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and non breakability.
Dependent Variable
Consumer Buying Behavior
Tools of Data Collection
In order to find data on role of packaging on consumer buying behavior, we will collect data on four
variables: The first benefit to use questionnaire technique is that result.
Sampling Technique & Sample
The population of my study will be students and educational institutions of Karachi in which the
sample size of 150 students will be taken for conducting the study by using simple random sampling in order to
generalize the finding in the particular sector.
Measures
There were at least 13 questions in the survey obtaining data for one variable and some questions were
directly obtaining with no complications. Measure for each variable is defined below:
Each variable was measure by asking the seven questions by using the 5-points itemized rating type
scale ranging from (1) strongly disagrees to (5) strongly agree.
Methodology for Analysis of Data
To make analysis of data it will use SPSS software in which we will make analysis in to two parts
where part one will lead descriptive statistics that will be use to describe and summarize data and include
measures of central tendency (average) and dispersion (the spread of data or how close each other is to the
measure of central tendency).
Descriptive analysis
It is used first techniques for generating result is descriptive statistics. It shows minimum, maximum,
and mean values of data.
Correlation
The Pearson's correlation is used to find a correlation between at least two continuous variables. The
value for a Pearson's can fall between 0.00 (no correlation) and 1.00 (perfect correlation). Other factors such as
group size will determine if the correlation is significant. Generally, correlations above 0.80 are considered
pretty high.
DATA ANALYSIS & FINDINGS
Descriptive Analysis
The results of descriptive analysis show as follows:
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Table: 1
Descriptive Statistics (Buying Behavior)
N
Minimum
Mean
Std. Deviation
Buying Behavior Valid N
(list-wise)
150
1
3.74
0.931
In the above table 1 the minimum values, maximum values, mean values and the values of standard
deviation of dependent Variable have been shown. Mean value provides the idea about the central tendency of
the values of a variable. Number of observations of each variable is 150. Standard deviation and the extreme
values (minimum in comparison to Maximum value) give the idea about the dispersion of the values of a
variable from its mean value. The Minimum value is 1 while Maximum value is 5. The Mean value is 3.74
with standard deviation of 0.931.
Table: 2
Descriptive Statistics (Packaging Color)
N
Minimum
Mean
Std. Deviation
Packing Color
Valid N (list-wise)
150
1
3.65
0.944
In the above table 2 the minimum values is 1, maximum values 5, and mean values 3.65 while the
values of standard deviation is 0.944. Mean value provides the idea about the central tendency of the values of
a variable. Number of observations of each variable is 150.
Table: 3
Descriptive Statistics (Quality Packing)
N
Minimum
Mean
Std. Deviation
Quality Packing Valid N
(list-wise)
150
1
3.75
0.925
The above table 3 the minimum value of 1 and maximum value of 5. The values can be deviated by
0.925, which means that the mean value can varied by +0.925 or - 0.925. The mean value is 3.75.
Table: 4
Descriptive Statistics (Wrapper Design)
N
Minimum
Mean
Std. Deviation
Wrapper Design
Valid N (list-wise)
150
1
3.69
0.897
In the above table 4 the minimum values is 1, maximum values 5, and mean value is 3.69 whereas, the
values of standard deviation is 0.897. Mean value provides the idea about the central tendency of the values of
a variable
Table: 5
Descriptive Statistics (Packing Innovation)
N
Minimum
Mean
Std. Deviation
Packing Innovation Valid
N (list-wise)
150
1
3.65
0.965
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In the above table 5 the minimum values is 1, maximum values 5, and mean value is 3.65 whereas, the
values of standard deviation is 0.965. Mean value provides the idea about the central tendency of the values of a
variable.
Pearson Correlation
Hypothesis: 1
H1: there is relationship between Buying Behavior and Packing color
Table: 6
Correlation b/w Buying Behavior & Packing Color
N
Buying Behavior
Packing Color
Buying Behavior
Pearson Correlation
1
0.589
Sig. (2-tailed) N
150
0.000149
Packing Color
Pearson Correlation
0.589
1
Sig. (2-tailed) N
0.000149
150
**. Correlation is significant at the 0.01 level (2-tailed)
Table 6 represents the table of correlations. Where two variables buying behavior and Packing color
are positively correlated (r= 0.589, p = 0.000149). There is moderate relation between these two variables,
which is significant. So Hypothesis is accepted. So we can say that the attractive packaging color can attract
consumer. Consumer likes the colored packaging. It also implies that using attractive colors in packaging we
can grab customer attention.
Hypothesis: 2
H2: there is relationship between Buying Behavior and Quality of Packing.
Table: 7
Correlations b/w Buying Behavior & Quality Packing
N
Buying Behavior
Quality Packing
Buying Behavior
Pearson Correlation
1
0.539
Sig. (2-tailed) N
150
0.000145
Quality Packing
Pearson Correlation
0.539
1
Sig. (2-tailed) N
0.000145
150
**. Correlation is significant at the 0.01 level (2-tailed)
Table 7 represents the table of correlations. Where two variables buying behavior and Quality of Packing are
positively correlated (r= 0.539, p = 0.000145). There is moderate relation between these two variables, which is
significant, So, H2 cannot reject. The result is clears that the consumer also evaluates the products on the behalf
of its packaging quality. Customer proffers the better quality of package.
Hypothesis: 3
H3: there is relationship between Buying Behavior and Wrapper Design.
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Table: 8
Correlations b/w Buying Behavior & Wrapper Design
N
Buying Behavior
Wrapper Design
Buying Behavior
Pearson Correlation
1
0.421
Sig. (2-tailed) N
150
0.000149
Wrapper Design
Pearson Correlation
0.421
1
Sig. (2-tailed) N
0.000149
150
**. Correlation is significant at the 0.01 level (2-tailed).
Table 8 represents the table of correlations. Where two variables buying behavior and Wrapper Design are
positively correlated (r= 0.421, p = 0.000149). There is moderate relation between these two variables, which is
significant. Therefore, Hypothesis: H3 is accepted.
Hypothesis: 4
H4: there is relationship between Buying Behavior and Packing Innovation.
Table: 9
Correlations b/w Buying Behavior & Packing Innovation
N
Buying Behavior
Packing Innovation
Buying Behavior
Pearson Correlation
1
0.554
Sig. (2-tailed) N
150
0.000145
Packing Innovation
Pearson Correlation
0.554
1
Sig. (2-tailed) N
0.000145
150
**. Correlation is significant at the 0.01 level (2-ailed).
Table 9 represents the table of correlations between two variables buying behavior and Innovation,
which is positively correlated (r= 0.554, p = 0.000145). There is moderate relation between these two variables,
which is significant. So, there is a significant relationship between Buying Behavior and Packing Innovation.
"
CONCLUSION & RECOMMENDATION
Conclusion
Results of research study regarding the role of packaging on consumer’s buying behavior stipulated following
conclusions:
Packaging could be treated as one of the most valuable tool in today’s marketing communications,
necessitating more detail analysis of its elements and an impact of those elements on consumer’s
buying behavior.
Appropriate and vivid picture or packaging color, which delivers them a happy feeling, or an easy
handle/open/dose/dispose, package shape. All these elements contribute each important effort to catch
consumer’s attention and interest. Besides each element’s single function, we think that a good
combination of these elements may lead the product more eye-catching and attractive.
Analyzing an importance of its separate elements for consumer’s choice reveals the impact of
packaging and its elements on consumer’s purchase decision. For this purpose main package’s
elements has been identified: graphic, color, size, form, and material of packaging are considered,
wrapper design, innovation while product information, producer, country-of-origin and brand are
considered as important ones. Moreover, the impact of package elements on consumers purchase
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decisions has been evaluated, and it is concluded that it depends on the consumer’s involvement level,
time pressure or individual characteristics of consumers.
It has been Empirically tested the proposed research model, package elements, which are having the
ultimate effect on consumer choice; in a case of different products from group of convenience goods
were available.
It has also revealed that elements of packaging are the most important for consumer’s purchase
decision. For a major part of consumers’ attraction was a size of package and material are the main
visual elements, whereas, product information is also the main verbal elements when purchasing milk
and washing-powder.
Results analyzing the impact of package elements on consumers purchase decisions, depending on
level of involvement correspond with those of theoretical studies and that visual elements of package
have relatively stronger influence on consumer’s purchasing behavior when they are in the level of
“low involvement”, in contrary to those who are in the level of “high involvement”.
Packaging has a better reach than advertising does, and can set a brand apart from its competitors. It
promotes and reinforces the purchase decision not only at the point of purchase, but also every time the
product is used. Packaging in different serving sizes can extend a product into new target markets or
help to overcome cost barriers. Packaging can even drive the brand choice (especially in the context of
children’s products).
This Research has found that different packaging cues impact and` how a product is perceived. Often
the packaging is perceived to be part of the product and it can be difficult for consumers to separate the
two (the concept of gestalt). Aspects such as packaging color, typography, illustrations and graphics
can influence how a product is perceived.
According to this research, it is concluded that most consumers like the product quality after they
purchased their desired packaged product. Based on those facts, we cannot say there is a 100% equal
relationship between good package and good product quality, but there is a positive thinking and trend
about well-designed package shows high product quality.
As a matter of fact, people are becoming more and more demanding; packaging has been gradually
shown its important role in a way to serve consumers by providing information and delivering
functions. With its different functionality to ease and to communicate with consumers, there is no
doubt about increasingly important role of packaging as a strategic tool to attract consumers’ attention
and their perception on the product quality.
New product manufacturers mostly use the labels in their products. Basically they describe that when
made it, where it was made, how it was made, what it contains, how to use it etc. Furthermore, they
believe that labels to use the products properly guide the consumers. The information given in the label
and its value have to be highlighted while promoting the product in the market. It must also be more
useful technique
Recommendation
It is highly recommended to the marketing and business units that they should pay proper attention for
good packaging. If they accept or introduce the poor packaging then it could be one of the causes of
product failure in the market. It is necessary to set the packaging standard and to implement strategy
accordingly for better protection and promotion of a product.
Researcher believes that culture difference does have an impact on companies’ initiatives to design the
product package, for instance, during our research; the choices of packaging colors are quite different
between the West and Far East. Thus, it is recommended that it is important for international
companies to take a consideration of culture differences when they design the product package in
different parts of the World.
It is finally recommended that the marketers of the industry should not consider the packaging is the
solely factor for the success of any product, therefore, they should also take up other important factors
of the marketing while they are launching new products or revitalize old products.
It is also recommended to other researchers when they take up packaging then they should also
consider other factors and dimensions of marketing as well.
"
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"
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