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Marketing Project Topics

The Effect of Packaging on Sales of Goods

The Effect of Packaging on Sales of Goods

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The Effect of Packaging on Sales of Goods

Chapter Oneย 

Researchย Objectives

Generalย Objective

To understand the effect of product packaging on the sales performance of the coffee processing industry.

Specificย Objectives

Theย specific objectivesย of theย studyย are:

  1. To examine the effect of packaging color on sales performance.
  2. To investigate the effect of packaging material on sales
  3. To examine the effect of product information on sales performance,
  4. To investigate the effect of innovation on sales

CHAPTERย TWO

REVIEWย OFย RELATED LITERATURE

ย Theoreticalย Review

It focuses on the relationship between the dependent and independent variables. The distinction betweenย dependent and independent variables is as important in a comparative study as in a regression analysis.ย Dependent variable in case of a comparative study is the one which we aim to predict and independentย variablesย hereย areย the ones which wereย usedย to predict the dependentย variable.

Conceptย onย Packagingย Design

Inย thisย dissertation,ย itย isย arguedย thatย โ€œpackvertisingโ€ย goesย beyondย theย viewย ofย packagingย asย aย communication vehicle for logos, claims and product descriptions. More specifically, it is proposed thatย packaging has the ability to affect product attribute inferences through unobtrusive features in its design.ย Packaging design is defined as the graphic and structural elements that comprise a packaging, such asย shape, color; size and typeface ( Karjalainen 2007; Underwoodย 2003; Van Rompay, Pruyn, & Tiekeย 2009).

These elements may serve as implicit cues that have the capacity to draw attention and connote product attributes through associations. In contrast to explicit cues such as price, brand or claims, these implicit design cues are not immediately consciously perceived and recognized as informative by the consumer. That is, just as consumers may be unaware of the smell of freshly baked bread when they enter a supermarket, they may be unaware of packaging design when they choose a product. Instead, they may deliberatively process explicit cues that they perceive as informational for a relevant attribute, such as labels for healthiness, or price for quality. Rather than explicitly communicating information (Silayoi & Speece 2004), packaging design may induce automatic product associations or โ€žmake senseโ€Ÿ when it is used in way that is congruent with consumer expectations or with the identity of the product (Karjalainen 2007).

In other words, packaging design relates more to the subconscious side of decision-making (Silayoiย 2004: Speece 2004). Furthermore, even if consumers are aware of packaging design elements, it is theย unawareness of its persuasive effect wherein design differs from explicit packaging cues. As also arguedย by Chartrand (2005), consumers may or may not be aware of the presence of a (design) cue, but usuallyย lackย awareness of the automaticย persuasiveย effectย itย evokes.

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Earlier work on packaging design elements merely addressed effects of packaging design on aestheticalย evaluation and visual attention (Bloch 1995; Hekkert 2006; Meyers-Levy & Tybout 1989; Van Rompayย & Pruyn 2011; Veryzer & Hutchinson 1998). For instance, research has indicated that (proto) typicalย packaging design (packaging design typical for products within a given product category) is preferred toย aย typical product packagingย (Lokenย &ย Wardย 1990).

This effect may be caused by fluency, which comprises that typical objects are cognitively processedย with more ease compared to a typical object.ย This increased ease inย cognitive processing inducesย positive effect, which the consumer automatically attributes to the object (i.e., packaging). Thus, as aย resultย ofย fluency, typicality increasesย objectย attractivenessย (Winkielman:ย Halberstad:,ย Fazendeiro &ย Catty 2006). Furthermore, typical design may be associated with the typical product attributes that areย soughtย forย within aย productย categoryย (Veryzerย &ย Hutchinsonย 1998).

A typical packaging design on the other hand, has the advantage that it draws more attention andย increases saliency in the market place (Schoormans & Robben 1997). Thus, packaging design directlyย affects consumer attention at the point of purchase, and also affects aesthetical evaluations depending onย theย degreeย of categoryย representation.

Only recently, scholars have started to show interest in packaging design as a branding tool that signals product attributes by communicating these attributes in a subtle, symbolic or metaphoric way. A number of studies examining the role of such symbols and metaphors in creating product differentiation andย identity are based on embodiment accounts, such as Conceptual Metaphor Theory (Lakoff & Johnsonย 1999), Perceptual Symbol Systems (Barsalou 1999), and Associated Systems Theory (Carlston 1994).ย The common ground of these theories is the notion that people make inferences regarding concepts (or:ย attributes)ย by drawingย fromย existingย associationsย withย concreteย sensorย motorย information,ย suchย asย movement, shapes or colors. Specifically, these inferences regarding attributes are established throughย repeated co-occurrence between sensory states and semantic concepts. For example, the perception thatย high entities are often powerful (e.g., skyscrapers or high positions in hierarchies), creates a strongย association between verticality and powerfulness, and hence induces inferences regarding powerfulnessย onย the basis of verticalityย (orย viceย versa).

 

CHAPTERย THREE

RESEARCHย DESIGNย ANDย METHODOLOGY

ย Researchย Approach

When conducting a research, there are different ways to consider in approaching the research problem. According to Crewell(2009), there are three research approach which involve quantitative, qualitative and combination of the two. According to Cooper (2003) as cited by Farhadi (2009) quantitative research helps to determine the relationship between an independent variable and dependent variable in a population. It is also used to explain causal relationships to facilitate generalization and to predict the future whereas a qualitative research method provides a complete picture of the situation by increasing the understanding of social process and interrelations.

Basesย onย theย objectivesย ofย theย studyย andย theย availabilityย ofย relevantย information,ย thisย studyย hasย usedย quantitativeย researchย designย whichย helpsย toย arriveย atย possibleย researchย finalย destination efficiently. The quantitative approach was applied to examine the relationshipย between the dependent variable (i.e. sales performance) and the independent variables (i.e.ย packagingย color, packagingย material, productย information andย innovation).

Researchย Method

Interview, questionnaire and focus group discussions are the three known types of researchย methods. Focus groups are formally organized, structured groups of individuals broughtย togetherย toย discussย aย topicย orย seriesย ofย topicsย duringย aย specificย periodย ofย timeย (Marczyk.DeMatteo and Festinger 2005).Questionnaire is a method of deciding on how theย sample is to be surveyed (e.g.by mail, by phone, in person) and developing the specificย questionsย thatย willย beย usedย (Marczyk,DeMatteoย and Festingerย ,ย 2005).ย Interviewย isย qualitative data required to understand in-depth motivation for peopleโ€Ÿs behavior or feelings Adamsย (2007).

CHAPTER-FOUR

RESULTSย ANDย DISCUSSION

ย Data Presentationย andย Analyses

The table 4.2 below shows that, the gender compositions of the respondents 175 or 49%ย are female and the remaining 183 or 52% are male. The respondent age was categorizedย betweenย 18-30ย yearsย areย 101ย (28%),ย theย ageย betweenย areย 31-40ย yearsย 165ย (46%),ย theย age betweenย 41-50ย years are 57ย (16%),ย andย theย age aboveย 51ย years areย 35ย (10%).

Itย showsย thatย 121ย orย 34%ย respondentย areย singleย andย 222ย (62%)ย areย married.ย Theย restย 15ย or 4% of them are divorced. The academic level of respondents shows that 39 or 11%ย respondentย areย fromย highย schoolย andย belowย ,ย 41ย orย 12%ย respondentย haveย Diploma,ย 191ย or 53% have bachelorโ€Ÿsย degree,ย 76ย or 21%ย ofย themย holdย masterโ€Ÿsย andย there isย alsoย 10ย or 3% respondents answered other which means 3 Phd holders and one Pilot trainer (amongย theย 3%).

CHAPTER-FIVE

ย SUMMARYย OFย FINDINGS, CONCLUSION &ย RECOMMENDATION

ย Summaryย of Findings

Packagingย isย everywhere,ย theย notionย ofย keepingย thingsย hasย commencedย consideringย thatย ageย of nomadic hunters and gatherers, the place things were stored by using different herbalย materials. The thinking has later advanced into the so called packaging. When we talk ofย coffee packaging the first thing that comes to mind is our country Nigeria. The story wasย beginning in Nigeria, the country where the coffee plant was first originated itโ€Ÿs believedย thatย itsย cultivationย andย useย startedย outย asย earlyย asย 9thย centuryย inย Nigeria.ย Oneย ofย theย pioneering coffee processing companies is TO.MO.CA PLC a family owned coffee roastingย companyย which was setย up in 1953 in Lagos, Nigeria.

Theย paperย aimsย toย contributeย toย theย theoreticalย understandingย ofย theย effectย ofย theย packagingย on sales performance of coffee processing industry in Lagos by examining the fourย major researches constructs; these are the effects of packaging color, packaging material,ย product information, and innovation on coffee product. The different packaging attributesย were backed by four hypotheses which are significantly and positively related with the salesย performance.

  • The research used a sample size of 385 respondents and 358 were responded by assuming 95% confidence interval and 5% margin error from five different

Inย theย descriptiveย statisticsย partย theย followingย resultsย wereย achieved.

  • The result showed that the data are normally distributed in terms of skewness and From the demographic questions the result showed that the most coffeeย consumers are male, the age category is between 31-40 years, who are married withย bachelors degree and who sometimes have a habit of buying packaged coffee. So theย respondentsย haveย moreย experienceย in buyingย packed coffee.

Inย theย inferentialย statisticsย partย theย followingย resultsย wereย achieved.

  • Theresultย showedย thatย allย theย independentย variablesย areย stronglyย andย positivelyย relatedย with theย dependent variableย sales performance.
  • Theregressionย tableย andย theย ANOVAย modelย showsย thatย 2%ย varianceย inย theย dependentย variable can beย predictedย from theย dependent variable.
  • Regression coefficient model showed a change in one independent variable will resultto change in the dependent variable and out of the four independent variables productย informationย results to more
  • Based on the different SPSS results the researcher came up that the independentvariables have a significant and positive effect on the dependent variables, so theย alternativeย hypothesesย wereย all

Conclusion

Basedย onย theย study,ย theย researcherย madeย the followingย conclusion.

Packaging is use for marketing communication purposes and they are the importantย element in which influences the sales performance of a company. Research that haveย centered on other single signs and symptoms than pictures on programs have determinedย that such single package deal signs and symptoms as logo names and materials conveyย complete thought. Package could be treated as one of most valuable tool in todayโ€Ÿsย marketing communications in coffee product, necessitating more detail analysis of itsย elementsย and effect of those elements onย sales performance.

The arguments was made by different scholars on non verbal signs such as packagingย color and the verbal signs pictures on packaging, the research is mainly focus in the nonย verbalย signs that is the packagingย color.

Packaging material has a positive relation with the sales performance. Using better packagingย materials influences the consumer to think that the product is enriched with quality, hasย healthier protection of the product and are easy to open. Most consumers associate that theย quality of the packaging material with the effect towards the price of the product. Theย packagingย of theย productsย mostlyย showsย environmental friendliness ofย the product.

People want some innovative creations which attract them and shade a different light towardsย the brand. Unique packaging has a greater influence on sales of the product. Product packedย inย uniqueย mannerย isย anย innovativeย techniqueย thatย willย positivelyย influenceย theย salesย performance. Easy to store and easy to carry innovative packaging designs will enhance theย convenience of the consumer inย buying the product. This will in turn increase the influenceย ofย consumersย on sales performance.

Informationย properlyย deliveredย onย aย packagingย canย haveย aย powerfulย effectย onย salesย performance which in result increases the reliability of a product. A display of appropriateย information about the product results in influencing sales. The language used to display theย informationย on theย packagingย gives consumers theย abilityย toย understand theย product.

Finally, consumers believe that among the attributes the printed information on the packageย and innovation of the package will have the most influence on the sales performance. Theย packaging color and the quality of the packaging material on average influence compared toย printed information and innovation.ย All the packaging attributes have an effect on salesย performanceย ofย coffeeย processingย industryย TO.MO.CA PLC.

Recommendation

The general understanding of the influencing factors of sales performance, needed to be examined and reexamined with the ever changing effect of globalization and technology based on the findings proposed in chapter four , this study proposes the following recommendations.

It is highly recommended to the research and product development units that theyย should give due attention to packaging. The use of poor packaging could result inย causing of product failure in the market. It is necessary to set appropriate standards toย packaging and to enforce the standards accordingly for better marketing and sales of aย product. Researcher believes packages are communication strategy at the point ofย purchase and proper care given to the packaging attributes, like color,ย material etcย willย resultย inย increasedย consumersย buyingย behaviorย asย theyย influenceย salesย andย revenueย of theย coffeeย processingย PLC.

It should be noted that packaging is not the only factor that influences the salesย performance its one of the factor. Therefore, appropriate marketing techniques shouldย be employed to increase the awareness of the consumer towards the manufacturerโ€Ÿsย product.

The researcher recommends an appropriate level of investment should be made to these attributes; it will result in a reasonable increment in the revenue of an enterprise, as they will influence the sales performance of a company.

Itย mustย beย notedย thatย enterprisesย mustย prioritizeย betweenย packagingย attributesย asย their effect on the sales performance is not the same. While some attributes likeย printed information have higher influence, others attributes like colors may not haveย asย much influenceย as expected.

Finally the researcher believes that among the packaging attribute, innovation of the packaging and printed information on the packaging will have the most influence ontheย ย The researcher also recommends, even though not as influential as innovation and printed information, due attention must also be given to packaging color and packaging material.

Limitation of theย study

Theย research is limited byย following points:

The absence of adequate studies regarding packaging and organized data especiallyย empirical literatures, which would be useful to lay more relevant factual base for theย study.

The respondents were unwilling to fill the questionnaires due to lack of time and lackย ofย understandingย the usefulness ofย the study.

The sampling source came only from the customers of TO.MO.CA PLC in Lagos. The sample might not be generalized and not fully display the general characteristic of the consumers.

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