...Packaging and purchase decisions ABSTRACT - The importance of packaging design as a vehicle for communication and branding is growing in competitive markets for packaged food products. This research utilized a focus group methodology to understand consumer behaviour toward such products and how packaging elements can affect buying decisions. Visual package elements play a major role, representing the product for many consumers, especially in low involvement, and when they are rushed. Most focus group participants say they use label information, but they would like it if simplified. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding packaging elements as important marketing communications tools. Propositions for future research are proposed which will help in developing better understanding of consumer response to packaging elements. Introduction: packaging at the point of sale Packaging seems to be one of the most important factors in purchase decisions made at the point of sale (Prendergast and Pitt, 1996), where it becomes an essential part of the selling process (Rettie and Brewer, 2000). Packaged food products are moving into ever larger supermarkets and hypermarkets, and there is a proliferation of products, offering consumers vast choice. The competitive context is ever more intense, both in the retail store and household. With the move to self-service retail formats, packaging increases its key characteristic...
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...A Study on Impact of Packaging on Rural Consumer Buying Behaviour Towards FMCG Products in Bhopal (M.P) Imran Mehraj Dar Research Scholar in Management Studies Barkutallah University,Bhopal,(M.P) Imranmehraj.dar@gmail.com ABSTRACT In the ever increasing competition of today's global market the need for effective product promotion is crucial, and the product packaging has come to play a more important role as a brand communication vehicle. To achieve communication goals effectively, knowledge about consumer psychology is important so that manufacturers understand consumer response to their packages. This paper aims to investigate the impact of packaging on Rural Consumer buying behaviour towards FMCG products. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding Consumer’s behavior towards the packaging of FMCG products When consumers search for and process information in-store, the product's package can contain relevant and useful information for the consumer. Product packaging forms the end of the 'promotion-chain' and is close in time to the actual purchase and may therefore play an important role in predicting consumer outcomes. Packages also deliver brand identification and label information like usage instructions, contents, and list of ingredients or raw materials, warnings for use and directives for care of product. Packaging characteristics are being measured such as various sizes of Package, different...
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...TOWARDS THE NEW PACKAGING OF FMCG PRODUCTS Mitul Deliya Assistant Professor, S. K. College of Business Management, Hemchandracharya North Gujarat University, Patan Email: deliya.mitul@gmail.com ABSTRACT The importance of packaging design as a vehicle for communication and branding is growing in competitive markets for packaged FMCG products. This research utilized a focus group methodology to understand consumer behavior toward such products. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding Consumer’s behavior towards the packaging of FMCG products. When consumers search for and process information in-store, the product's package can contain relevant and useful information for the consumer. Product packaging forms the end of the 'promotion-chain' and is close in time to the actual purchase and may therefore play an important role in predicting consumer outcomes. Packages also deliver brand identification and label information like usage instructions, contents, and list of ingredients or raw materials, warnings for use and directives for care of product. INTRODUCTION “Packaging is the container for a product – encompassing the physical appearance of the container and including the design, color, shape, labeling and materials used” Packaging has a huge role to play in the positioning of products. Package design shapes consumer perceptions and can be the determining factor in point-of-purchase decisions which characterize...
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...Packaging affects the decision making of the consumers that drives towards impulse buying, as well as, serves as a tool to flog the competitors. Vishal Kamra, Navneet Bajwa vishalkamra@ymail.com,nav.bajwa7421@gmail.com Abstract Product packaging is the science, art and technology of protecting products for the purposes of containment, protection, transportation/storage and information display. 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. By this article we seek to reveal elements of package having the ultimate effect on consumer choice, edge over the competitors and have an instant buying decision. Impulse purchasing is an important phenomenon for researchers in consumer behavior, thus this paper relates packaging as an aspect for impulsive buying as well as having a competitive edge over the competitors that might lead to erratic demand for the product. Keywords Packaging, Elements of Packaging, Consumer Behavior, Impulse Buying, Sales and Competitors. Introduction Packaging seems to be one of the most important factors in purchase decisions made at the point of sale, (Prendergast and Pitt, 1996) where it becomes an essential part of the selling process. (Rettie and Brewer, 2000).Package becomes an ultimate selling proposition stimulating impulsive buying behavior, increasing market share and reducing...
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...Packaging and purchase decisions An exploratory study on the impact of involvement level and time pressure [pic] Pinya Silayoi, Mark Speece |The Authors | Pinya Silayoi, Department of Packaging Technology, Faculty of Agro-Industry, Kasetsart University, Bangkok, Thailand Mark Speece, School of Management, Asian Institute of Technology and Graduate School, Bangkok University, Bangkok, Thailand |Abstract | The importance of packaging design as a vehicle for communication and branding is growing in competitive markets for packaged food products. This research utilized a focus group methodology to understand consumer behavior toward such products and how packaging elements can affect buying decisions. Visual package elements play a major role, representing the product for many consumers, especially in low involvement, and when they are rushed. Most focus group participants say they use label information, but they would like it if simplified. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding packaging elements as important marketing communications tools. Propositions for future research are proposed which will help in developing better understanding of...
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...The Power of Packaging Alice Louw & Michelle Kimber The Customer Equity Company* In recent years packaging has developed well beyond its original function as merely a means of product protection and now plays a key marketing role in developing on shelf appeal, providing product information and establishing brand image and awareness. As packaging’s role in the marketing mix gains momentum, so research into this arena becomes increasingly important. Given the potential for packaging to successfully achieve marketing goals; does research into packaging truly reflects its value within the marketing mix? Do we fully understand the role that packaging plays in a marketing environment and how best to leverage this tool to influence consumers? If packaging is so important, what is the best way to measure its effectiveness? * The Customer Equity Company is a wholly owned subsidiary of TNS (UK) which has been set up to develop the marketing sciences and support brand equity and Commitment modelling worldwide. 1 What is packaging? The definitions of ‘packaging’ vary and range from being simple and functionallyfocused 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...
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...Alyssa Cleo E. Cortes BAEM MKTG 108: Consumer Behavior Title: Consumer Research: The Best Way To Understand Consumer Behavior Subtitle: Packaging: A key element to understand consumer behavior Good things often come in small packages, but by no means this art is simple. In fact in many cases, package is the product. 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. (Bennett, Coleman & Co. Ltd., 2013) A package is the first direct interface of the product with the consumer. It informs the user about the contents; it contains and protects the contents. Above all, the package is the face of the product in the retail environment. Like all faces, the package tells a story, a story of where the product has come from, who manufactured it, what it is meant to do and by using or consuming the product what kind of experience a user is going to subject himself to and very importantly, what lifestyle statement is the consumer going to make. As promotional information is shifting more to the pre-buying experience online, consumer is looking to see a more engaging experience in the actual retail environment. (Bennett, Coleman & Co. Ltd., 2013) According to Rundh (2005)...
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...disposing of products, services and ideas that they expect will satisfy their needs. The study of consumer behavior is concerned not only with what consumers buy, but also with why they buy it, when and how they buy it, and how often they buy it. It is concerned with learning the specific meanings that products hold for consumers. Consumer research takes places at every phase of consumption process, before the purchase, during the purchase and after the purchase. The scope of consumer behavior includes not only the actual buyer and his act of buying but also various roles played by different individuals and the influence they exert on the final purchase decision .Individual consumer behavior is influenced by economic, social, cultural, psychological, and personal factors. Consumer purchase decision A decision is the selection of an action from two or more alternative choices. Consumer decision to purchase the goods from the available alternative choice is known as “consumer purchase decision”. The various options of the consumer may be classified into five main types of decisions. They are: * what to buy, * how much to buy, * where to buy, * when to buy, and * how to buy Indian Oral Care Industry Many people in India still clean their teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients. Average all India per capita consumption of toothpaste is a dismal 82gms.The dentist to population ratio is a critically low 1:35000...
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...Packaging The amount of food consumed by people is influenced by the ambiance or by the social circle they are in at that particular moment. Producers manage this process by opting for transparent packaging some times, opaque packaging other times or even a combination of the two types, in order to attract the customers. For example, Hillshire Brands Co. reached the tops once it started packaging its lunchmeat in containers that had transparent elements, so that the customers could take a peek at the turkey and ham that was sitting within, waiting for them to taste it. Anyhow, this marketing decision was made after a one year long research of the market. With the aim of addressing producers’ interest in post-purchase consumption Xiaoyan Deng, assistant professor of marketing at the Fisher College of Business at The Ohio State University, and Raji Srinivasan, associate professor of marketing at the Red McCombs School of Business at the University of Texas at Austin have conducted a study named “When Do Transparent Packages Increase (or Decrease) Food Consumption?”, which has revealed that 70 percent of the decision of buying a product is made right in the moment when we are at the point of purchase and that the way a product is packaged represents the most important tool a marketer can use in order to attract his clients. However, the use of transparent packaging in the case of tiny or visually unappealing products does not increase the consumption of that product. What...
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...Course Title: Thesis Paper A Research Paper on “How brand elements influence the consumers’ purchase intention of a brand: A study on Horlicks and GlaxoSmithKline” Prof. Dr. Md. Masudur Rahman Professor Department of Marketing University of Dhaka Prof. Dr. Md. Masudur Rahman Professor Department of Marketing University of Dhaka Prepared For: Anisur Rahman ChowdhuryRoll-117, Section A18th batchDepartment of MarketingUniversity of Dhaka | Prepared By: Submission Date: 31 March, 2016 Letter of Transmittal March 30, 2016 Prof. Dr. Masudur Rahman Professor Department of Marketing University of Dhaka Subject: A Research Paper on “How brand elements influence the consumers’ purchase intention of a brand: A study on Horlicks and GlaxoSmithKline” Dear Sir, This is an immense pleasure to submit my thesis paper on A Research Paper on “How brand elements influence the consumers’ purchase intention of a brand: A study on Horlicks and GlaxoSmithKline” as a partial fulfillment of BBA program. I hope this paper is informative and comprehensive as per your instruction. Here, I have worked with the consumer of “Horlicks” and tried to analyze their feedback to find out the impact of brand elements of “Horlicks & GlaxoSmithKline” on their purchase intention of Horlicks. Now, I am very grateful to you for your valuable supervision, precious time, effort and support throughout...
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...and visibility, convenience and ease of purchase, the product should be at the right place- where the customer expcts its availability and need not travel far to purchase it Attractive packaging, impressive tag line that matches the brand USP and focuses on target customer, The good should meet customers’ needs, aspirations and expectations in terms of quality, quantity, taste, price, etc. 2. Do you think Campbell should market soup in a new container under a different brand name? What options does the firm have ? Campbell controls 80 percent of the canned soup market,.. it is a market leader and has great brand image. Campbell’s decision to develop a new package reflects an emphasis for providing customer satisfaction by knowing and meeting consumer preferences.Campbell is also interested in attracting a new market – people who have shunned canned soup, particularly convenience-minded singles. Many young consumers associate cans with preservatives and artificial ingredients. A new brand name may reach the young market more efficiently. Firm has the option , a plastic microwavable bowl capped by an easy-open top, with same look and feel as tin cans with Campbell trade name. it must be in consistency with its previous quality stds to retain the existing cutomers and develop plastic cans for convenience to acwuire new cutomer and expand its customer base. 3 What factors should Campbell have considered in the decision to change to a new package? The customer...
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...profound truth in it. Today the success of any firm depends upon the satisfaction of consumers. For satisfying the consumers the firm should know about the behavior of the consumers. In these circumstances understanding consumer is a very difficult task because of the changing technology, innovation, and changes in life style. Researchers conducted many research in this area, and they given only few suggestion, but there is no final conclusion. As per the ideas given by the researchers, there are two factors influencing the consumers such as intrinsic and extrinsic factors. It is difficult to classify consumers by conventional demographic factors and unless their thought process and buying behavior are fully understood, decisions on product designs and packaging, branding and distribution channels are likely to be misplaced. With the inevitability of change intimidating large over the horizon, Indian companies must learn from their western counterparts; not only to identify the sources, timing and direction of the changes likely to affect India, but also the new competencies and perspective that will enable them to respond to these changes, comprehensively and effectively. This study mainly focus on understanding the external factors like demographic, social, cultural ,price, quality ,product attributes etc for buying Shampoo. The market share of any product is highly determined by the purchasing behavior of the...
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...when there is the situation of product uncertainty or lack of information of that desired product, the price will be widely used as a prediction base which it is the best available and understandable characteristic to evaluate the quality of product. These researches indicate that there is a strong psychological inclination of customers in believing that the higher priced product will relatively have higher quality, as a result, price becomes the quality cue. Under the observation of an asymmetric information experiment (Kusmierczyk, 2005), it seems that this behaviour pattern influences on producers' decision making on pricing, where most of the producers set price to declare its quality, which lead to a situation where consumers are willing to purchase a product with higher price rather than with lower price. Consumer decision-making process, a process when individuals make decision, under their willingness, on purchasing a product by determining several choices, products, brands or ideas (p.106 Real People, Real Choices). It is mainly influenced by consumer behaviour, which consumer will be conducted by the internal influences,...
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...have chosen is determining the impact of using co-branded graphics, printing of the Toyota and Lexus logos on all service part packaging. How does it impact our customers? Are the customers aware that Lexus is the luxury division of Toyota? Do the co-branded graphics hinder or prevent grey/black market part sales? As for the method I suggest using random sampling from Toyota dealerships throughout the network for determining customer awareness of Lexus affiliation with Toyota. In regards to the grey/black market parts sales I am thinking of tracking the number of incidents since the implementation of the graphics to see if there is any fluctuation. Based on data from our legal department has there been any increases or decreases in identifying grey/black market sales since the packaging change was implemented. If so, were any of the new packaging specs involved? The second intangible that I selected is determining the value of a packaging spec paten. How does an organization like Toyota determine the value of a patented packaging spec? The patented packaging design has been proven to be successful with protecting the part(s) thus reducing damage claims. So in theory the dollar amount of damage claims prior to implementing the packaging spec could be used as a baseline. For example if damage dollars were equivalent to $100,000 and after the packaging spec was implemented the damage dollars declined to $10,000 I could estimate the value of the patent to be $90,000. Another way...
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...once said: “Quality is yesterday’s news. Today we focus on the emotional impact of the product”. Packaging of the product acts as a vehicle for consumer communication and branding. Previously, people perceived packaging just as “the cover” or commonly used for the protection of the product, just to protect it from the damage. Its function has now not only limited as “cover” but now evolved as the marketing tools(Silayoi & Speece , 2007 ) The importance of packaging design and the use of packaging as a vehicle for communication and branding is growing (Rettie and Brewer, 2000). Packaging takes an important role in marketing communication element because consumers don’t think too deeply about brands at all before they go to purchase. According to one of the study conducted, it was estimated that 73 percent of purchase decisions are made at the point of sale (Connolly and Davidson, 1996). Packaging in the perfume business can be used as a sensory marketing. The marketers should pay extra attention to the impact of the sensation the packaging should be able to create a competitive advantage. With the increasing attention to sensory marketing, the marketers must be able to create and establish a “sensory signature”. This helps to create a positive impression in consumers mind. According to Schulz (2003), the best way to have a communication with the consumer is through packaging. Consumers buy perfume not only for making them smell good or for its fragrance, but also there...
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