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Impact of Packaging on Consumer Buying Behavior.

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The aim of this thesis is to get the A study to point toward Impact of packaging on consumer buying behavior. The basic purpose of behind it is Animesh Packaging Industry wants to tie up with one Cracker Manufacturing firm and they want all packaging material which will require to pack their product from us and hence to decide the outer packaging this survey is taken out also to know how factors affects the behavior of customers. According to this research I try to find the positive relationship between independent variable and dependent variables. For collecting the data, I will use the questionnaire, while for analysis I will use SPSS 16. A sample of 100 consumers will be selected to test the reliability of the model. For that we create questionnaire on Monkeysearch.com and request the costumers to fill the survey online. The significance of the study, its delimitation and limitations are discussed. The research is based in India. The consumer buying behavior is dependent variable.
The packaging is the most important factor. Packaging elements like Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation is taken as predictors. Due to increasing self-service and changing consumers’ lifestyle the interest in package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. So package performs an important role in marketing communications, especially in the point of sale and could be treated as one of the most important factors influencing consumer’s purchase decision. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer’s purchase decision.

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Impact of Packaging on Consumer Buying Behavior.

  1. 1. A PROJECT REPORT ON “TO STUDY THE IMPACT OF PACKAGING ON CONSUMER BUYING BEHAVIOUR FOR ANIMESH PACKAGING INDUSTRIES.” SUBMMITED TO SAVITRIBAI PHULE PUNE UNIVERSITY IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTERS DEGREE COURSE IN BUSINESS ADMINISTRATION (M.B.A) UNDER THE GUIDANCE OF PROF. SAPTARSHI BHAUMICK SUBMITTED BY MR. SAURABH RAJENDRA GIRATKAR THROUGH MIT COLLEGE OF ENGINEERING (CMSR) CENTER FOR MANAGEMENT STUDIES AND RESEARCH, PUNE 2014-2016
  2. 2. ACKNOWLEDGEMENT A project report is a synthesis of student’s hard work & the guidance received from virtue of their senior’s experience. An act of gratitude is that the acknowledgement is blessing of well wishes to supporting guidance of their rich experience, which enlightens, inspires & motivates to do something valuable. I would like to thanks to my Company project guide Mr. Avinash Dalal to allow me do the work in the company & devote his valuable time to assist me & provide all direction in every aspect of my project, assignment & without their guidance to work on such topic could be little bit difficult. I would like to express my sense of gratitude towards Saptarshi Bhaumick Sir (Academic Project Guide) for his insightful Suggestions & comments to complete the project successfully. Saurabh Giratkar
  3. 3. DECLARATION I am undersigned Mr. Saurabh Rajendra Giratkar do here by declare that the project report entitled “To Study the impact of Packaging on Consumer Buying Behavior for Animesh Packaging Industries.” is a research work made for “Animesh Packaging Industries, Pvt. Ltd” genuine and benefited work presented by me under the guidance Saptarshi Bhaumick Sir. The empirical findings in this project report are based on the data collected by me. The matter presented in this report is not copied from any source. I understand that any such copy is liable to the punishment in way the university authority deems fit. The work has not been submitted for the award of any degree or diploma earlier to Savitribai Phule Pune University. The project is submitted to Savitribai Phule Pune University, in the partial fulfillment of the Master’s Degree in Business Administration (M.B.A) Date: Mr. Saurabh Rajendra Giratkar (Signature) Place: Pune MBA - 3rd Semester University No.– M3146083
  4. 4. INDEX CHAPTER PARTICULARS PAGE. NO. NO. 1 EXECUTIVE SUMMARY 1 2 INTRODUCTION 2-4 3 COMPANY PROFILE & PRODUCT 5-10 PROFILE 4 RESEARCH DESIGN & 11-28 METHODOLOGY 5 ANALYSIS & INTERPRETATION OF 29-44 THE DATA 6 FINDINGS & SUGGESTIONS 45-49 BIBLIOGRAPHY 50-52 ANNEXURE 53-56
  5. 5. 1 EXECUTIVE SUMMARY The aim of this thesis is to get the A study to point toward Impact of packaging on consumer buying behavior. The basic purpose of behind it is Animesh Packaging Industry wants to tie up with one Cracker Manufacturing firm and they want all packaging material which will require to pack their product from us and hence to decide the outer packaging this survey is taken out also to know how factors affects the behavior of customers. According to this research I try to find the positive relationship between independent variable and dependent variables. For collecting the data, I will use the questionnaire, while for analysis I will use SPSS 16. A sample of 100 consumers will be selected to test the reliability of the model. For that we create questionnaire on Monkeysearch.com and request the costumers to fill the survey online. The significance of the study, its delimitation and limitations are discussed. The research is based in India. The consumer buying behavior is dependent variable. The packaging is the most important factor. Packaging elements like Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation is taken as predictors. Due to increasing self-service and changing consumers’ lifestyle the interest in package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. So package performs an important role in marketing communications, especially in the point of sale and could be treated as one of the most important factors influencing consumer’s purchase decision. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer’s purchase decision.
  6. 6. 2 INTRODUCTION In nowadays competitive environment the role of package has changed due to increasing self-service and changing consumers’ lifestyle. Firms’ interest in package as a tool of sales promotion is growing increasingly. Package becomes an ultimate selling proposition stimulating impulsive buying behavior, increasing market share and reducing promotional costs. According to Rundh (2005) package attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about product. Also package imparts unique value to products (Underwood, Klein & Burke, 2001; Silayoi & Speece, 2004), works as a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar products, stimulates customers buying behavior (Wells, Farley & Armstrong, 2007). Thus package performs an important role in marketing communications and could be treated as one of the most important factors influencing consumer’s purchase decision. In this context, seeking to maximize the effectiveness of package in a buying place, the researches of package, its elements and their impact on consumer’s buying behavior became a relevant issue. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer’s purchase decision. Some of researchers try to investigate all possible elements of package and their impact on consumer’s purchase decision (Silayoi & Speece, 2004; Silayoi & Speece, 2007; Butkeviciene, Stravinskiene & Rutelione, 2008), while others concentrates on separate elements of package and their impact on consumer buying behavior (e.g., Vila & Ampuero, 2007; Madden, Hewett & Roth, 2000; Underwood et al., 2001; Bloch, 1995). Moreover some researchers investigate impact of
  7. 7. 3 package and its elements on consumer’s overall purchase decision (e.g., Underwood et al., 2001), while others – on every stage of consumer’s decision making process (e.g., Butkeviciene et al., 2008). Furthermore the abundance of scientific literature on this issue do not provide unanimous answer concerning impact of package elements on consumer’s buying behavior: diversity of the results in this area depends not only on research models constructed and methods employed, but on the context of the research too. All above mentioned confirms the necessity to investigate this issue in more detail. In the light of these problematic aspects, research problem could be formulated as following question: what elements of a package have an ultimate effect on consumer purchase decision? The aim of this paper – basing on theoretical analysis of package elements and their impact on consumer‘s purchase decision empirically reveal the elements having the ultimate effect on consumer choice in a case of different products. Objectives of the study 1) To find out the effect of packaging on the buying behavior. 2) Theoretical analysis of package elements and their impact on consumer‘s purchase decision empirically reveal the elements having the ultimate effect on consumer choice in a case of different products 3) To check the effect of packaging elements on the buying behavior. 4) To measure the relative impact of each packaging element on the consumer. 5) To identify the elements which should be highlight while design the packaging. Key terms Defined Consumer Buying Behavior
  8. 8. 4 Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants Packaging Packaging can be defined quite simply as an extrinsic element of the product. Packaging is the container for a product 1.3 Research Question: Main Question Impact of Packaging on consumer buying behavior.
  9. 9. 5 COMPANY PROFILE & PRODUCT PROFILE Company’s Corporate Office and Address Animesh Packaging Industries Avinash Dalal (Partner) Survey No. 2324, Priyanka Nagari, Nagar Road Pune - 412207, Maharashtra, India About the Company: Animesh Packaging Industries is into manufacture of Self Adhesive Pressure sensitive tapes (Single Side Adhesive & Double side Adhesive) since 2004. The company started its first manufacturing facility in 2004 and enhanced the same by three folds in 2008. Animesh Packaging Industries started by a team of Professional Technocrats. The team at Animesh Packaging Industries possesses all the required zeal, enthusiasm, technology and skill levels mandatory for the business. Company is an ISO 9001: 2008 registered and the same was achieved in very next year of the incorporation. We have one of the best & state of the Art manufacturing facility in the region, to produce a wide range of quality Self Adhesive Pressure sensitive Tapes, using advanced and various coating technology and inline rotogravure printing. The machines incorporates auto tension control system, hydraulic Web-Aligner system, to enhance quality of coating, and hence the quality of the end products. The plant is equipped with a high speed cutting machines equipped with latest features like air brake & auto turret systems.
  10. 10. 6 Animesh Packaging Industries is incorporated in manufacturing, sale and services of Packaging material. viz. BOPP tapes, Self Adhesive Labels, Foam Tapes etc. to name a few. Quantity Capacity: We have two coating machines with the coating width of 600 mm. and 1350 mm.
  11. 11. 7 Our Team In order to control the entire business process in a systematic and hassle free manner, we have appointed a team of experienced & knowledgeable professionals. All our team members are appointed on the basis of their knowledge & market understanding skills. They are highly talented and always strive hard to gain the maximum satisfaction of the clients by providing them with premium quality tapes, papers and foams in numerous specifications. Our team members regularly attend several training sessions and workshops that helps them to abreast with the frequently changing activities of industry. Why Us? We have carved out a position in manufacturing and supplying a premium quality Self Adhesive Foam, VCI Paper, Self Adhesive Tapes and Surface Protection Tapes. The main reason for which we have received positive feedback from our clients all across the nation include: • Advanced tools & amenities • Timely delivery • Brilliant R&D facility • Modern infrastructure • Fair & moral business dealings • Qualified team of professionals • Vast distribution network • Economical prices Our Mission We are extremely committed to our customer Satisfaction. We always should add values to each and every activity that we undertake. We always should use the latest Production Technologies to satisfy our customer needs.
  12. 12. 8 We do believe that “Change is the only constant thing in the Universe” and hence we always would be there to support our customers by being adaptable to the changes our customers would demand in their product needs. Our Vision To provide our Clients with the products and services they want, at a level, which meets their needs when they want it and at a price which they perceive as providing value. Our Values We are dedicated to our customers. We will do whatever it takes to satisfy them. To have partnering relationships with our Customers and Suppliers. We are dedicated to our valued employees. They will work in a safe environment with open communication. We operate in accordance with the highest standards in all relationships with customers, suppliers, environment and the community. Our suppliers will always be treated with respect and fairness. To believe that, “Innovation is the key to success”. Our Clientele To name a few of our Most Valued Customers • Tata Ficosa Ltd. • Mahindra & Mahindra Ltd. • Emcure Pharmaceuticals Ltd. • H.P. Pelzer • Supreme Treves
  13. 13. 9 Our Infrastructure Our organization is supported by an ultramodern and robust infrastructural base that covers a huge area and helps us in the manufacturing of qualitative tapes, papers and foams. This infrastructural unit incorporates several well functional departments like procurement, manufacturing, quality testing, sales & marketing and warehousing & packaging. All the departments are well armed with the latest machines and tools and controlled by our experienced and skilled team members. Besides, we regularly oiled & upgrade installed machines in order to accomplish the bulk & urgent orders of the clients in a promised time frame. Our Products Self-Adhesive Foam Leading Manufacturer and Supplier from Pune, our product range includes Self Adhesive Foam such as Self Adhesive Nitrile Foam Tape, Self- Adhesive XLPE Foam, Self-Adhesive Nitrile Foam, Self-Adhesive EPE Foam, Self-Adhesive EVA Foam and Self-Adhesive Polyurethane Foam. Self-Adhesive Nitrile Foam Tape Self-Adhesive XLPE Foam Self-Adhesive Nitrile Foam Self-Adhesive EPE Foam Self-Adhesive EVA Foam Self-Adhesive Polyurethane Foam Other Products - VCI Paper, VCI Paper, VCI Bags and Pouches, VCI Films, Self-Adhesive, BOPP Tapes, Self-Adhesive Color BOPP Tapes, Self-Adhesive Clear BOPP Tapes, Self-Adhesive Printed BOPP Tapes, HDPE Tapes, Cross
  14. 14. 10 Filament Tape, Mono Filament Tape, Security Sealing Tapes, Protective Material, Specialty Tapes, Antistatic and ESD Packaging, Self-Adhesive Labels, Thermal Transfer Printers, Thermal Transfer Ribbons etc.
  15. 15. 11 RESEARCH DESIGN & METHODOLOGY Theoretical Foundation Theoretical frame-work 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 who are used to predict the dependent variable. Consumer Buying Behavior Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants. See also consumer decision making. Purchase decision making pattern that is a complex amalgam of needs and desires, and is influenced by factors such as the consumer's (1) Societal role (parent, spouse, worker, etc.), (2) Social and cultural environment and norms, and (3) Aspirations and inhibitions Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:
  16. 16. 12 Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies. Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: 1) Problem Recognition (Awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2) Information search Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.
  17. 17. 13 A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is chinese food indian food burger king klondike kates etc 3) Evaluation of Alternatives Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then returns to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4) Purchase Decision Choose buying alternative, includes product, package, store, method of purchase etc. 5) Purchase May differ from decision, time lapse between 4 & 5, product availability. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.
  18. 18. 14 Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyer’s level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk The four type of consumer buying behavior are 1) Routine Response/Programmed Behavior Buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. 2) Limited Decision Making Buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. 3) Extensive Decision Making Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding.
  19. 19. 15 Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. 4) Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making. Categories that Affect the Consumer Buying Decision Process A consumer, making a purchase decision will be affected by the following three factors: Personal Psychological Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Personal Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision making? Young people purchase things for different reasons than older people. Psychological factors Psychological factors include: Motives
  20. 20. 16 A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix. MASLOW hierarchy of needs!! Physiological Safety Love and Belonging Esteem Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. Perception What do you see?? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch. Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion-Changing/twisting current received information, inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and AT&T...do you ever get confused?
  21. 21. 17 Selective Retention-Remember inputs that support beliefs, forgets those that don't. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned exposed to 1,500 advertisements per day. Can't be expected to be aware of all these inputs, and certainly will not retain many. Interpreting information is based on what is already familiar, on knowledge that is stored in the memory. Ability and Knowledge Need to understand individual’s capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc. South Africa...open bottle of wine and pour it!! Also educate American consumers about changes in SA. Need to sell a whole new country. When making buying decisions, buyers must process information. Knowledge is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality. Attitudes Knowledge and positive and negative feelings about an object or activity- maybe tangible or intangible, living or non- living.....Drive perceptions. Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Attitudes and attitude change are influenced by consumer’s personality and lifestyle. Consumers screen information that conflicts with their attitudes.
  22. 22. 18 Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty. There is a difference between attitude and intention to buy (ability to buy). Personality All the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include: Work a holism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness Competitiveness. Traits affect the way people behave. Marketers try to match the store image to the perceived image of their customers. There is a weak association between personality and Buying Behavior; this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept.
  23. 23. 19 Lifestyles Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle. Lifestyles are the consistent patterns people follow in their lives. EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology. Social Factors Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture. Opinion leaders Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase Roles and Family Influences Role...things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer/e. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand:  Many family decisions are made by the family unit  Consumer behavior starts in the family unit
  24. 24. 20  Family roles and preferences are the model for children's future family (can reject/alter/etc)  Family buying decisions are a mixture of family interactions and individual decision making  Family acts an interpreter of social and cultural values for the individual.  The Family life cycle: families go through stages, each stage creates different consumer demands:  bachelor stage...most of BUAD301  newly married, young, no children...me  full nest I, youngest child under 6  full nest II, youngest child 6 or over  full nest III, older married couples with dependant children  empty nest I, older married couples with no children living with them, head in labor force  empty nest II, older married couples, no children living at home, head retired  solitary survivor, in labor force  solitary survivor, retired Reference Groups Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members.
  25. 25. 21 Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behavior. Social Class An open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions. Social class influences many aspects of our lives. IE upper middle class Americans prefer luxury cars Mercedes. Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names. Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite Upper-middle class, 12.5%, college graduates, managers and professionals Middle Americans-middle class, 32%, average pay white collar workers and blue collar friends Working class, 38%, average pay blue collar workers Lower Americans-lower class, 9%, working, not on welfare Lower-lower class, 7%, on welfare Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping; do not engage in much pre purchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture. Culture and Sub-culture
  26. 26. 22 Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In American culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing. Different society, different levels of needs, different cultural values. Culture can be divided into subcultures: Geographic regions Human characteristics such as age and ethnic background. IE West Coast, teenage and Asian American. Culture effects what people buy, how they buy and when they buy. What is packaging? The definitions of ‘packaging’ vary and range from being simple and functionally focused to more extensive, holistic interpretations. Packaging can be defined quite simply as an extrinsic element of the product (Olson and Jacoby (1972)) - an attribute that is related to the product but does not form part of the physical product itself. “Packaging is the container for a product – encompassing the physical appearance of the Container and including the design, color, shape, labeling and materials used” (Arens, 1996). Objectives of packaging Packaging and package labeling have several objectives: • Physical Protection – Protection of the objects enclosed in the package from Shock, vibration, compression, temperature, etc. • Barrier Protection - A barrier from oxygen, water vapor, dust, etc.
  27. 27. 23 • Containment or Agglomeration - Small objects are typically grouped together in one package for transport and handling efficiency. Alternatively, bulk Commodities (such as salt) can be divided into packages that are a more suitable Size for individual households. • Information transmission - Information on how to use, transport, recycle, or Dispose of the package or product is often contained on the package or label. • Reducing theft - Packaging that cannot be re-closed or gets physically damaged (Shows signs of opening) is helpful in the prevention of theft. Packages also Provide opportunities to include anti-theft devices. • Convenience - features which add convenience in distribution, handling, display, Sale, opening, re-closing, use, and re-use. • Marketing - The packaging and labels can be used by marketers to encourage Potential buyers to purchase the product. Packaging may be looked at as several different types. For example a transport package or distribution package can be the shipping container used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or household. Packaging may be discussed in relation to the type of product being packaged: medical device packaging, bulk chemical packaging, over-the- counter drug packaging, retail food packaging, military materiel packaging, pharmaceutical packaging, etc.
  28. 28. 24 Theatrical Frame work Independent Variable Dependent Variable Innovation Packaging color Background Image Printed Information Design of wrapper Packaging Material Font Style Consumer Buying Behavior
  29. 29. 25 Independent Variable 1. Packaging color 2. Background Image 3. Packaging Material 4. Font Style 5. Design of wrapper 6. Printed Information 7. Innovation Dependent Variable Consumer Buying Behavior 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. One good example of successful use of color psychology is in the Apple iPod advertisements; they use simple tri tone color schemes of black, white and a bright background color. The bright background color is to give the advertisement a fun feel and the contrasting white on black is to focus attention. Meaning of the Color Blue Blue is the most common favorite color and is liked by both genders. Blue is seen as a trustworthy, peaceful and calm color and is often related to the sky or water. Blue is usually cool and quiet but more electric shades can give a dynamic feel. Although blue has the benefits of gender indifference and being
  30. 30. 26 the most common favorite color, the overuse of blue can seem cold or uncaring. Blue is often used because it is the designer’s favorite color but after considering the meaning of other colors, another color may be a better choice. Background-image The background image property specifies the background image for an element. When setting a background image, authors should also specify a background color property that will be used when the image is unavailable. Note also that when the image is available, it is rendered on top of the background color. Thus, in any transparent areas of the image, the background color will be visible. 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. The first packages used the natural materials available at the time: Baskets of reeds, wineskins (Bota bags),wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials were used to form packages as they were developed: for example, early glass and bronze vessels. The study of old packages is an important aspect of archaeology. Iron and tin plated steel were used to make cans in the early 19th century. Paperboard cartons and corrugated fiberboard boxes were first introduced in the late 19th century. Packaging advancements in the early 20th century included Bakelite closures on bottles, transparent cellophane over wraps and panels on cartons, increased processing efficiency and improved food safety. As additional materials such as aluminum and several types of plastic were
  31. 31. 27 developed, they were incorporated into packages to improve performance and functionality. So packaging material have strong have with buying behavior. Font Style The font style of Packaging grab customer attraction. The up gradation of IT technology have support this feature. The successful companies have best practices of the font styles. They hire specialist in composing which create mind blowing and attractive font styles. The attractive package has innovative font style. So we can say that there is relation between font style and buying behavior Design of wrapper The overall design also play 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 Printed Information Container or wrapper for a consumer product that serves a number of purposes including protection and Description of the contents, theft deterrence, and product promotion. The labels on packages are important components of the overall marketing mix and can support advertising claims, establish brand identity, enhance name recognition, and optimize shelf space allocations. The consumer can change his decision on the basis of information printed on the packaging. Mostly in Merchandises and daily FMCG the consumer can perform evaluation on the basis of printed information. 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, and non breakability.
  32. 32. 28 Manufacturers today strive to have packaging that maintains the key equities of the brand, has stand out appeal on the retailer’s shelf, and is sustainable but with lower production costs. The customer can adopt product on the basis of its innovative packaging, which shows the relation between buying behavior and innovation of packaging.
  33. 33. 29 ANALYSIS AND INTERPRETATION OF DATA Significance of the Study: The aim of this survey is to find the impact of packaging on consumer buying behavior. The basic purpose of behind it is to find out how such factors act behind the success of packaging. According to this research I try to find the positive relationship between independent variable and dependent variables. For collecting the data I will use the questionnaire. The significance of the study, its delimitation and limitations are discussed. The consumer buying behavior is dependent variable. The packaging is the most important factor. Packaging elements like Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation is taken as predictors. Due to increasing self-service and changing consumer’s lifestyle the interest in package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. So package performs an important role in marketing communications, especially in the point of sale and could be treated as one of the most important factors influencing consumer‘s purchase decision. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer‘s purchase decision. By this article we seek to reveal elements of package having the ultimate effect on consumer choice. Taking into consideration that package could be treated as a set of various elements communicating different messages to a consumer; the research model was developed and tested in order to reveal impact of visual and verbal package elements on consumer‘s purchase decisions.
  34. 34. 30 Methodology: The methodology for the survey on Consumer Behaviour towards Packaging Products is the Questionnaire method where in questionnaire are answered by 100 respondents of 4 age groups. Sample Design: The sample design for the survey is classified according to the age; total 100 Respondents are selected for the survey out of which 25 respondents are selected from each age group. Age Groups Respondents 15-20 25 21-34 25 35-49 25 50+ 25
  35. 35. 31 Pie-representation: Questionnaire Analysis and Research Findings 1. Does packet of a product influence your buying behavior? Yes No Sometimes Response: Age Group Yes No Sometimes 15-20 22 0 3 21-34 23 0 2 35-49 18 5 2 50+ 13 10 2
  36. 36. 32 0 5 10 15 20 25 15-20 21-34 35-49 50+ Influence by Product Yes No Sometimes Interpretation: From the above results we can say that there is a high degree of impact of packaging on consumer behavior. Out of the 100 respondents 76 says that they get influenced by the packaging of the product. The packaging have a greater impact on the age group of 15- 21 and 21-34. However the rest of the higher age group sometimes tends to change the product due to packaging. 2. What is your priority towards packaging? Protective Packing Eco- Friendly Packing Attractive Packing All of Above
  37. 37. 33 Response: Age Group Protective Eco- Friendly Attractive All of the Packing Packing Packaging above 15-20 3 4 13 5 21-34 3 5 8 9 35-49 8 5 5 7 50+ 6 7 2 10 Interpretation: A consumer wants that packaging of the product should be a mixture of a material that should be eco-friendly and the main aim of packaging should be
  38. 38. 34 the protection of the inner goods. The age group between 15-20 wants that particular product packaging should be attractive. The age group between 21-34 wants attractive as well as eco-friendly. The age group between 35-49 and above 50 wants a mixture of all the factors and have lesser say on attractive packaging and have a focus on the protection that packaging should provide them. 3. Do you switch your brand due to change in packaging of existing Brand? Yes No Sometime‘s Response: Age Group Yes No Sometimes 15-20 8 5 12 21-34 5 6 14 35-49 3 11 11 50+ 4 13 8
  39. 39. 35 Interpretation: There is a lesser degree of a consumer to change their brand due to change in the packaging of the existing products. In the age group of 15 -21 these factor has relatively higher impact, these age group people tends to change their brand if they find change in the packaging of their existing brand and can switch to other brands which have attractive packaging. 4. Which of the following aesthetic factor attracts you towards the Purchase of the product? Color Shape & Size Text & Graphics Response:
  40. 40. 36 Age Group Colors Shape & Size Text & Graphics 15-20 11 8 6 21-34 8 9 8 35-49 5 15 5 50+ 6 11 8 Interpretation: From the above results we can say that Color of the package plays an important role at the ae group of 35-49 & above, whereas 21-34 age peoples equally influenced by color, shape & text. The 15-20 age group is more tends towards color of the package.
  41. 41. 37 5. Select the parameter of packaging due to which you prefer to buy the product? Convenience Material Use Aesthetic (color, shape, Size) Information Response: Age Group Convenience Material Use Aesthetic Information 15-20 3 7 12 3 21-34 5 5 7 8 35-49 8 5 4 8 50+ 10 6 3 6
  42. 42. 38 Interpretation: From this table we can see that age group 0f 50+ are more likely tends to convenience form and age group of 35-40 is going for convenience as well as information on the product. However, the rest of the age group sometimes select the product due to Material Use. 6. The innovative package can change your decision while purchasing? Agree Normal Disagree Response: Age Group Agree Normal Disagree 15-20 15 5 5 21-34 12 4 9 35-49 10 10 5 50+ 4 13 8
  43. 43. 39 Interpretation: Innovation in a Package always plays an important role while buying. In the age group of 15 -21 Innovation on Package has relatively higher impact, also the age group of 21-30 & 35-40 also tends towards the innovation on Package but age group f 50+ are not that much follows the innovative ideas. 7. The quality of packaging can save product better? Yes No Sometimes Response:
  44. 44. 40 Age Group Yes No Sometimes 15-20 18 2 5 21-34 12 4 9 35-49 9 5 11 50+ 5 12 8 Interpretation: This is obvious that people will always go for the quality of the product, very few people choose the product by deciding the quantity of the product. In the age group of 50+ is going for the other factor but all the oher age group looks for the quality of the product rather than other things.
  45. 45. 41 8. Do you like beautiful backgrounds? Yes No Sometimes Response: Age Group Yes No Sometimes 15-20 20 3 2 21-34 18 2 5 35-49 10 7 8 50+ 6 12 7
  46. 46. 42 Interpretation: From Above table we can say that most of the people from all group are like the beautiful background on the product packaging. In that age group of 15- 20 & 21-34 are more concerned about the Background image while as 50+ age people not get attracted by the background image. 9. Do you think the products offered by leading brand are always better? Agree Normal Disagree Response: Age Group Agree Disagree Normal 15-20 10 5 10 21-34 9 6 10 35-49 3 11 11 50+ 4 13 8
  47. 47. 43 Interpretation: There is a positive influence of a leading brand in age group of 15-20 & 21-34. But in the age group of 50+ these factor has relatively lower impact, these age group people do not think that leading brand is always better than local brand. And age group between 35-49 are like to choose the product by its quality. 10. Do you read printed information on the package of product? Yes No Sometimes
  48. 48. 44 Response: Age Group Yes No Sometimes 15-20 8 5 12 21-34 5 6 14 35-49 10 5 10 50+ 10 3 12 Interpretation: From this question we wnt to know the mind set of the customer. And result stated that customers reads the information sometimes. Age group of 35-49 &50+ are more like to know the information while as other are more attracted towards the Inoovation and image background.
  49. 49. 45 FINDINGS & SUGGESTIONS 1) Brand is important and its strategy is in consideration in the units. Product packaging is valuable for brand equity, product differentiation, market segmentation, new product introduction, pricing, promotion etc. Brand name using plan implementation must be effective in the units. 2) All the marketing units pay attention for good packaging. They accept that poor packaging is one of the causes of product failure in the market. It is necessary to set the packaging standard and to implement accordingly for better protection and promotion of a product. 3) Consumer new product manufacturers mostly use the label in their products. Basically they describe that made it, where it was made, when it was made, what it contains, how to use it etc. Furthermore, they believe that the consumers are properly guided by label to use the products. 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 technically. 4) I do believe 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. Thus, we think that it is important for international companies to take a consideration of culture differences when they design the product package.
  50. 50. 46 Discussion: The primary purpose of the present study is to investigate the Impact of packaging on consumer buying behavior. Using a quantitative method that is to check the proposed model in the context of Pune and to see the generalizability of the research to the large population with the sample size of 100. Past research has been focused on the impact of packaging on consumer buying behavior. (Rundh (2005) package attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about product. Also package imparts unique value to products). Through an extensive literature review on initial model is proposed which encompass that how packaging elements mediates the relationship with packaging color, background, packaging material, font style, printed information, wrapper design and innovation in packaging. The literature review has provided the basic theoretical evidence with regard to the link between packaging and buying behavior. Questionnaire was developed for data collection purpose on seven variables (packaging color, background, packaging material, font style, printed information, wrapper design and innovation. The buying behavior has been used as dependent variable. The buying behavior is positively related to packaging color, background, packaging material, font style, printed information, wrapper design and innovation. The regression shows the packaging has more contribution on buying behavior.
  51. 51. 47 Finding: Results of research on role of packaging on consumer’s buying behavior stipulated following conclusions: 1)Package could be treated as one of most valuable tool in today’s marketing communications, necessitating more detail analysis of its elements and an impact of those elements on consumers buying behavior. 2) 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 consumers’ attention and interest. Besides each element’s single function, we think that a good combination of those elements may let the product more eye-catching and attractive. 3) The impact of package and its elements on consumer’s purchase decision can be revealed by analyzing an importance of its separate elements for consumer’s choice. For this purpose, main package’s elements could be identified: graphic, color, size, form, and material of packaging are considered, wrapper design, printed information, innovation while product information, producer, country- of-origin and brand are considered as important ones. Moreover, the impact of package elements on consumers purchase decisions should be evaluated depending on the consumer’s involvement level, time pressure or individual characteristics of consumers. 4) Empirically testing the research model proposed, package elements having the ultimate effect on consumer choice in a case of different products from group of convenience goods were determined: 5) It has revealed that elements of package are the most important for consumer’s purchase decision. For a major part of consumers’, a size and
  52. 52. 48 material are the main visual elements, while product information is also the main verbal elements when purchasing milk and washing-powder. 6) Results of analyzing the impact of package elements on consumers purchase decisions depending on level of involvement correspond with those of theoretical studies and let us stating that visual elements of package have relatively stronger influence on consumer’s purchasing when they are in the level of “low involvement”, in opposite to those who are in the level of “high involvement”. 7) 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). 8) Research into packaging has found that different packaging cues impact 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. 9) According to my research, I found out that most consumers like the product quality after they purchased their desired packaged products. Based on those facts, we can not 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 his important role in a way to serving consumer by providing information and delivering functions. With its different functionality to ease and to communicate
  53. 53. 49 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. Summarizing, it could be stated that detail evaluation of package elements and their impact on consumer’s purchase decision, taking into consideration involvement level, individual characteristics of consumers, is necessary in order to implement efficient packaging decisions. Areas of future research Suggested areas for future research include a more in-depth analysis into the relationship between product attributes and total product assessment – how exactly does the research Process influence overall opinions, what is the best way to gain insight into preference without biasing the results? Is this possible? More research into the elements of pack design and how it influences consumer perceptions – are there universal rules or do they differ by product category, culture, etc?
  54. 54. 50 BIBLIOGRAPHY References K Rita (2009), impact of package elements on consumer purchase, Kauno technologijos universitetas, Lietuva, ekonomika ir vadyba. S Bed (2008), new consumer products branding, packaging and labeling in Nepal, the Journal of Nepalese business studies, Vol. V No. 1 L Alice (2006), the power of packaging, united states of america, pp 186-216 Ampuero, O. and Vila, N. (2006), consumer perceptions of product packaging, Journal of consumer marketing, 23/2, 2006, pp. 100-112. L Renaud(2007), The influence of label on wine consumption : its effects on young consumers’ perception of authenticity and purchasing behavior, Bologna, Italy. S Katharina and Rolf Wüstenhagen* (Sept. 1, 2005), the Influence of Eco-labeling on consumer behavior, institute for economy and the environment (IWOe-HSG), University of St. Gallen, Switzerland John Th gersen (2000), The ethical consumer moral norms and packaging choice. Journal of consumer policy Kluwer Academic Publishers. Printed in the Netherlands.
  55. 55. 51 Barber, N., Almanza, B.A., & Donovan, J.R. (2006), motivational factors of gender, income and age on selecting a bottle of wine. International Journal of wine marketing, 18 (3), 218-232. Bloch, P. H. (1995), seeking the ideal form: product design and consumer Response, journal of marketing, 59(July), 16-29. Butkeviciene, V., J. Stravinskiene and A. Rutelione (2008). 'Impact of consumer package communication on consumer decision making process', Inzinerine Ekonomika-Engineering Economics(1), pp. 57-65. Adelina Broadbridge & Henry Morgan (2007), consumer buying behavior and perception toward retail brand baby products. Rita Kuvykaite1, Aistė Dovaliene2, Laura Navickiene3 ( 2009), Impact of package elements on the consumer purchase decision economics & msanagment H Ahasanul ,(K Ali 2009),Factors influencing buying behavior of piracy impact to malaysian market international review of business research Papers Vol.5 N0. 2 March 2009 Pp. 383-401
  56. 56. 52 Websites  Bubley packaging research, http://www.bubley.com/t- scopes/research.html  Animesh Packaging Industries, http://www.indiamart.com/animeshpackagingindustries/  http://www.m-w.com/dictionary/gestalt  Wikipedia Online Encyclopedia,  http://en.wikipedia.org/wiki/Tachistoscope Books Keller, K. L. (2003). Strategic brand management: Building, measuring and managing brand equity, 2nd ed., Englewood Cliffs, NJ: Prentice-Hall. Kotler, Ph. (2003) Marketing management, 9th ed. Upper Saddle River: Prentice-Hall.
  57. 57. 53 Annexure Questionnaire Dear Participants, I will be very thankful to you for this cooperation. The topic of this questionnaire is Impact of Packaging in Consumer Buying Behavior. This questionnaire is for the research purpose. Its results will be used for analysis in Master Thesis. Please provide Information with confidence. Your information will not be disclosed. Personal Information Name Gender Age Profession Education E-Mail Contact No
  58. 58. 54 1. Does packet of a product influence your buying behavior? Yes No Sometimes 2. What is your priority towards packaging? Protective Packing Eco- Friendly Packing Attractive Packing All of Above 3. Do you switch your brand due to change in packaging of existing Brand? Yes No Sometimes 4. Which of the following aesthetic factor attracts you towards the Purchase of the product? Color Shape & Size Text & Graphics
  59. 59. 55 5. Select the parameter of packaging due to which you prefer to buy the product? Convenience Material Use Aesthetic (color, shape, Size) Information 6. The innovative package can change your decision while purchasing? Disagree Normal Agree 7. The quality of packaging can save product better? Yes No 8. Do you like beautiful backgrounds? Yes No 9. Do you think the products offered by leading brand are always better? Disagree Normal Agree
  60. 60. 56 10. Do you read printed information on the package of product? Yes No Sometimes

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