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Impact of Labeling and Packaging on Buying Behavior of Young Consumers with Mediating Role of Brand Image

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  • Foundation University, Islamabad, Pakistan

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The study is intended to measure the impact of packaging and labeling on consumer buying behavior. Further it also investigates the mediation of brand image for the relationship of packaging and labeling with consumer buying behavior. The study was causal in nature, data was collected through 200 respondents and analyzed through correlation, regression and Sobel test. Results revealed that packaging is positively associated with consumer buying behavior. Further it is found that brand image mediates the relationship of packaging and consumer buying behavior only.
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Impact of Labeling and Packaging on Buying Behavior of Young Consumers with
Mediating Role of Brand Image
Mahdia Farrukh Sial
Foundation University Islamabad
Amir Gulzar, (Corresponding Author)
Assistant Professor,
Foundation University Islamabad
Noor-ul-Ain Riaz
Foundation University Islamabad
Bilal Nawaz
Foundation University Islamabad
Abstract
The study is intended to measure the impact of packaging and labeling on consumer buying
behavior. Further it also investigates the mediation of brand image for the relationship of
packaging and labeling with consumer buying behavior. The study was causal in nature, data was
collected through 200 respondents and analyzed through correlation, regression and Sobel test.
Results revealed that packaging is positively associated with consumer buying behavior. Further
it is found that brand image mediates the relationship of packaging and consumer buying
behavior only.
Keywords: Impact ; Labeling ; Packaging ; Buying Behavior ; Young Consumers ; Mediating
Role of Brand Image
1. Introduction
Products are always protected by packaging which is a material around the product to protect it
from any sort of damages, contain information about the brand, quality and how to use that
product is known as packaging. According to previous studies (Bloch, 1995: Madden, Hewett &
Roth, 2000; Underwood et al., 2001;, Silayoi & Speece, 2004; Silayoi & Speece, 2007;
Butkeviciene, Vila & Ampuero, 2007; Stravinskiene & Rutelione, 2008) attraction towards the
packaging is more to be seen in young generation due to several reasons. Consumers of all ages
are involved in the category of consumers, who get attracted to the products due to its packaging,
but young generation particularly of age group of 17-30 years old males and females consumers
to get approximate results. According to Rundh (2005) packaging has a great impact as far as
brand is concerned, and people are more attracted because of the brand and they got a perception
about a product in advance. Packaging is also used for the marketing of that product. It is
actually one of the most important marketing tools for any product.
Labeling give message to consumer that the product have those kinds of features you want and I
am best from the other brands of the same products. (K,Rita 2009). Sometimes labeling and
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packaging make in a very good manner that consumer think that he or she really needs that kind
of product. Many consumers think that this product doesn’t have seen before and so many
questions are raised at the time of purchasing like the quality of product, it may have some side
effects. Labeling is anything written on the packaging or product or anything else ranging from
simple tag or a designed graphics. It is possible that a label only contain brand name of the
product or it could contain all the information about the ingredients and use of the product
(Kotler, 2001). According to the FDA (1998), a label of the product must contain at least brand
name of the product, ingredients, its manufacturer’s name and address, net weight and other
nutrition facts abut the product. If label of the product is not in a proper way or not clear to the
consumers then there is possibility that consumer will not purchase that type of product. Many
companies use packaging and labeling as a tool to attract the buyers towards the product and to
increase their sales. (Butkeviciene et al. (2008). People are ready to pay more for the products
who have good brand name as compare to those products which don’t have good brand image.
For the success of any organization brand name is very important, (Randall 1997). Authors
believe that in this age of globalization and competition role of brand is imperative to increase
the market share.
1.1 Problem Statement
The study is to investigate the role of packageing and labeling on young consumer buying
behavior. Further the study explore the the mediating role of brand image on the relationship of
labeling and packaging towards consumer buying behavior.
1.2 Objectives of Study:
1. To explore the relationship of labeling and packaging on consumer buying behavior.
2. To explore that if brand image mediates the relationships of packaging on consumer
buying behavior.
3. To explore that if brand image mediates the relationships of labeling on consumer buying
behavior.
4. To explore the impact of all above said relationships.
1.3 Practical Implications
The study would help to understand the exact role of the packaging and labeling with respect to
consumer buying behavior. Accordingly marketers may opt the strategies. The role brand image
is also being considered so marketers would come to know that how long brand image is creating
the impact on consumer decisions while they are taking packaging into consideration.
2. Review of literature:
Packaging is used to communicate with the consumer (Butkeviciene et al. (2008). Packaging
is the only thing that communicate a message about the product to buyer in the store” (Gonzalez
et al., 2007). It is used to protect the product from damages during shipping and transferring
product from one place to another (Wells et al,2007). Consumers are sensitive and don’t want
such packaging which carries germs or infections as consumers are used to check/evaluate it by
appearance of the products and ensuring the quality of the product before making a purchase
decision (Grundvag & Østli, 2009).
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According to Kotler (2001) “A label might carry only the brand name or a great deal of
information”. Before purchase consumer seeks the information and one of the sources of such
information is label particularly in nutrition (Caswell and Padberg, 1999). The color, style,
design and other interesting material as a label not only distinguishing the brand form other
competing brands but also increase the likelyhood of purchase (Rocchi and Stefani, 2005).
Consumers are interested in the authenticity of the product before the purchase which is defined
as “the fact being original” (Mc Leod, 1999). Olson and Jacoby, (1973) identified the label as an
extrinsic cue that is an attribute not included in the physical products. Label could create the
authenticity in the product by providing such information as quality, specification, ingredients
etc. (Halewood and Hannam, 2001; Marianna, 1997).
Keller, (1993) defined that brand image refers to a particular frame of reference by which the
consumer is associating a particular brand. A good image enhances the value of the brand in the
eyes of the consumer by increasing its likeability/desirability and differentiating it from other
competing brands (Hsieh, Pan, and Setiono, 2004). The outcome of the favorable image is the
increase in loyalty, equity, cosumer buying behavior and overall performance of brand (Koo,
2003; Keller, 1993: Hsieh et al., 2004, Roth, 1995 ). Brand image is measured in terms of
benefits a brand is offering or some attributes the brand is having or the usage of the brand (et
al., 2001; Malhotra's 1981; ; Roth, 1995).
Consumer behavior includes the number of processes, stages of decision making, and activities
in which customer/consumer make decision of buying, using and disposing off the products after
usage or fulfillment of needs (Blackwell et al. 2006). Consumer behavior is a decision making
process in which people make their purchase and other decisions keeping in view the available
resources which are efforts, time and money (Schiffman and Kanuk, 2000). The decision is
based on consumer preferences and consumer has his/her own preferences which may differ
from each other (Blackwell et al., 2006). As brand name or image increases the value of the
brand in the eyes of the customers so they are purchasing a particular brand again and again
(Gabbott and Hogg, 1998).
From the above discussion following hypothetical interaction and hypothesis may be inferred:
Labeling
Packaging
Consumer
buying
behavior
Brand Image
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Hypothesis:
H1: Brand image has significant impact on the buying behavior of young consumers.
H2: Labeling has significant impact on the buying behavior of young consumers.
H3: Packaging has significant impact on the buying behavior of young consumers.
H4: Labeling has significant impact on the brand image.
H5: Packaging has significant impact on the brand image.
H6: Brand image mediates the relationship of labeling and buying behavior.
H7: Brand image mediates the relationship of packaging and buying behavior.
3 research Methodology
This is a casual and cross sectional study in nature. It has 1 dependent variable i.e. buying
behavior of young consumers, 2 independent variables i.e. labeling and packaging and 1
mediating variable i.e. brand image. It explores the relationship of labeling and packaging on
buying behavior of young consumers and also explores the mediating role of brand image. Data
was collected through questionnaires from 200 people particularly 17-30 years old because
people of this age group are more brand conscious, living in Rawalpindi and Islamabad.
Reliability of all variable was measured through Cronbach’ alpha. It is obvious through the
analysis that all the variables’ Cronbach’ Alpha values are more than 0.7 showing that data is
reliable.
Table 3.1 Reliability analysis
Sr.No Constructs Cronbach’ alpha No of items
1 Buying behavior of
young consumers .928 7
2 Labeling .802 4
3 Packaging .798 7
4 Brand image .858 5
Source: field data
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4. DATA ANALYSIS AND DISCUSSION
Data was analyzed through correlation, regression and sobel test to find out if hypothesis are true
or not. Correlation analysis is conducted because it is the prerequisite of Sobel test.
1.1 Hypothesis testing
Table 4.1 Regression Analysis of Brand Image, Packaging, Labeling and Consume
r
Buying Behavior
Unstandardized
Coefficients Standardized
Coefficients
Model B Std. Error Beta T Sig.
(Constant) .174 .027 6.503 .000
Brand
image .993 .021 .948 46.533 .000
packaging .059 .024 .051 2.483 .014
1
labeling .001 .005 .001 .132 .895
a. Dependent Variable: buying behavior
Source: Field Data
Table 4.2 Regression Analysis of Packaging, Labeling and Brand Image
Unstandardized
Coefficients Standardized
Coefficients
Model B Std. Error Beta T Sig.
(Constant) .069 .089 .771 .441
packaging 1.058 .023 .957 45.819 .000
1
labeling .042 .017 .053 2.518 .013
a. Dependent Variable: brand image
Source: Field Data
Table 4.3 Sobel Test for the Relationship of Packaging and Buying Behavior with Mediating
Effect of Brand Image
Source: Field Data
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The first hypothesis was Brand image has significant influence on the buying behavior of young
consumers. Regression analysis (table 4.1) clearly indicates that there is positive relationship
between brand image and buying behavior of young consumers with 95% influence of brand
image on buying behavior of young consumers because value of beta is 0.948. Second
hypothesis of the study was labeling has a significant influence on the buying behavior of young
consumers. Regression table 4.1 showed that no such influence is evident from the data. So the
null hypothesis is accepted. Third hypothesis was packaging has a significant influences on the
buying behavior of young consumers, Regression analysis (table 4.1) shows that there that there
is positive relationship between packaging and buying behavior of young consumers with 5%
influence of packaging on buying behavior of young consumers because value of beta is 0.05.
Fourth hypothesis was labeling has as significant influence on the brand image. Regression
analysis (table 4.2) shows that there is positive relationship between labeling and brand image
with 5% influence of labeling on buying behavior. Fifth hypothesis was that packaging has a
significantly influences the brand image. Regression analysis (table 4.2) shows that there is
positive relationship of packaging and brand image with 95% influence of packaging in brand
image as value of beta is .957.
Sixth hypothesis was brand image mediates the relationship of labeling and buying behavior. As
it is evident from the table 4.1 that labeling has not influence on buying behavior which is one of
the prerequisites to run the mediation test. So as one of the prerequisite is not being fulfilled
there is no mediation exist. So the null hypothesis is accepted. Seventh hypothesis was brand
image mediates the relationship of packaging and buying behavior, Soble test (table 4.3) shows
that brand image mediates the relationship of packaging and buying behavior of young
consumers as the p-value is less than 0.05.
4.2 Conclusion
Following conclusions can be derived from the study.
Brand image have positive impact on buying behavior of young consumers.
Labeling has no impact on buying behavior of young consumers.
Brand image mediates the relationship of packaging and buying behavior of
young consumers.
Brand image don’t mediates the relationship of labeling and buying behavior of
young consumers.
4.3 Limitations
Some of the limitations of this study are as follows:
Only 17-30 years old consumers are selected as respondents. It was a major constraint in
study.
Time limitation
Access to information
People don’t take questionnaire seriously.
Sample of 200 people only from Rawalpindi and Islamabad.
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... An appealing and differentiated package can help a product to stand out among other similar items [3] and thus, it acts as a vital factor in stimulating purchase intention [2], [4]. Furthermore, product packaging also helps to shape the brand image in consumers" mind [5]. ...
... To sum up, the conceptual framework of the research is built based on the study of [4], [5], [10], and [11] with three main hypotheses: H1: Product Packaging Elements positively affect Brand Image. ...
... Especially, the factors of product packaging are PAEOUNOH (β = 0.0329); PAFOPISH (β = 0.0523); PAINFO (β = 0.0296); and PACOLO (β = 0.0491) (Table VII). These results support the study of [5]. ...
... This research finding agrees with Ricchi & Stafani (2005) that label not only distinguishing the brand from other competing brands but also increase the likelihood of purchase. This study disagrees with the study conducted by Sial, Gulzar, Riaz & Nawaz (2011) that labeling has no impact on buying behaviour of young consumers. Appropriately delivered information on packaging generates strong impact on the consumers' purchase decision. ...
... High material attracts customer than low. Study conducted by Sial, Gulzar, Riaz & Nawaz (2011) concluded that packaging has a positive relationship with the buying behaviour of young customers. ...
... 25 Besides these studies, including the one of Lofgren and Witell 20 , where packaging's contribution to buying behaviour and customer satisfaction has been found, there are a few studies that, by using the structural equation modelling (SEM), confirm the specific influence that packaging has on purchasing behavior. 21,22,26 Among these, the model of Lofgren is outstanding and is widely applied. 27 Based on Kano's theory of attractive quality, Lofgren et al. ...
... Farrukh et al. 26 have also developed a model that established the relationship between purchasing behaviour and packaging, with brand image playing a mediating role. However, quality attributes, other than labelling, were not considered in these studies. ...
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