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Effect Of Product Packaging In Consumer Buying Decision

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Question:

Discuss about the Effect of Product Packaging in Consumer Buying Decision.
 
 

Answer:

Introduction

Product packaging process has become one sales promotion tools that determines the consumers’ buying behaviour. The literature study will provide the insightful ideas about the necessary factors that drive a brand towards success. According to Raheem, Vishnu and Ahmed (2014), packaging process is considered as the maintenance of the whole package that becomes the ultimate selling proposition. It helps in stimulating the impulsive purchasing behaviour as well. The effective packaging process increases the market share and sales ratio by reducing the promotional and market costs. Kuvykaite, Dovaliene and Navickiene (2015) implied that the consumers usually attracted towards the appealing features of the product packaging. It is one of the most beneficial strategies to increase the brand image and stimulating the consumers’ perception regarding any particular product. The packaging process includes many factors that are instigating the customers to determine their purchasing decision. The literature review study will concentrate on these factors to reflect on the effectiveness of product packaging process.

Concept of Product Packaging

According to Velasco et al. (2016), the definition of packaging system may range from simple to complex functionalities. It is generally focusing on the holistic and more extensive interpretations. The packaging process of the product is often conceptualized as the method of establishing the extrinsic value of the goods. Stolzenbach et al. (2013) implied that the process usually involves different activities that represents the final attribute of the product. However, the product packaging is the container of the product to be covered with the proper colour, labeling, and shaping processes. The colours used in the product packaging system are often drawing the attention of the consumers. ST Wang (2013) opined that it is necessary to determine the colour of packaging because it helps in differentiating the product from the other competitors’ products. Hence, it can be stated that colours play a suggestive role in ensuring the decision-making process of the consumers.

 

Elements of Product Packaging: Product Colour, Label, Materials

The companies often pay attention towards the colour combination for emphasizing the different mood. For example, red colour is used for trust, black colour is used for power, green for organic or balance and keeping the nature of fresh. It is an essential component for making the purchasing decision (Gifford and Nilsson 2014). Consumers usually prefer the certain colour at per their own preferences. They are sometimes inclined towards purchasing the specific colour of the products that symbolizes the religion or culture.

According to Van Ooijen et al. (2016), product packaging process is associated with four distinct marketing functions. First, it helps in containing and protecting the actual product. The second function of the packaging process is to promote the brand of the products to the potential customers in the market. Third aspect is ensuring the products are usable to the consumers. The final aspect determines that the products are protected from the environmental damages. Therefore, it can be implied that product-packaging process is more about only protecting the products, but it helps in developing the image of the brand to the potential customers. Therefore, if the company fails to pay attention towards the design of the product package, it may decrease the chances of ensuring visibility and attractiveness (Konstantoglou et al. 2016). It is one of the most fruitful methods of increasing the sales ratio.

Product labeling is another most attractive feature of product packaging. The effective product labeling is providing the adequate information related to the product ingredient, product category, and the product instructions. The labeling helps the consumers to decide whether they can buy the products or not. The products are not only guided by the taste, it also guided by some of the recognizable and extrinsic factors, such as price, labeling, origin, and brand awareness (Vyas 2015). Consumers always feel pressure to make the purchasing decision by judging the products with these categories. When the product packaging informs the customers about these specifications, it becomes easier to the customers to decide which product and brand is to be selected. Maniatis (2016) explained that the product labeling is one of the most helpful procedures for the customers to decide which of the products is to be purchased and it will take even lesser time to decide. In current time, it has been observed that the consumers are much cautious about the health and nutritious issues (Nikolova and Inman 2015). The information provided in the label is thus necessary for the customers to become sure about the right choice.

The materials used for the product packaging is considered as much important element since it prevents the products from the loss or any damage. It is noticed that the consumers are more likely to prefer the high quality products than the low quality products. Hence, it can be inferred that the packaging materials have the clear and impressive impacts on the consumers’ purchase decision (Grunert, Hieke and Wills 2014). The consumers often use the packaging material for extracting the essential values of the products. Moreover, it changes the perception of the product quality if the material of the product packaging is of high quality. The product packaging is the final point of influencing the decision of the customers related to the product purchase whereas the marketing messaging is influenced by the advertisements (Dessart, Veloutsou and Morgan-Thomas 2015). The product packaging creates the clear linking between the brand specifications and the purchasing behaviour of the consumers.  It is thus considered as the one of the most fruitful process of establishing the interaction between the brands and the consumers.

Another major element is product innovation. The current sophistication in the market has been frequently changing the demands of thee customers. However, it is notified that the customers are much attracted towards the innovative product packaging process. The innovative shape and features added to the product packaging will signify the brand of the product. Accoridngly, it will be much demanding to the potential customers.

 

Concept of Consumer Behaviour

Consumer behaviour is the set of activities that determines the experience of the consumers in searching the expected prospects. These prospects usually include the selection, evaluation, purchasing process, and searching for the right products. These behaviours usually influence the customers to judge the available products and services (Case and Given 2016). If these products and services are fulfilling the needs of demands of the customers, it will be effective enough in making a quick decision regarding the purchase of any product. On the other hand, Gunter and Furnham (2014) defined that the consumer behaviour is the perceptions of the customers regarding any particular product feature that satisfies the needs and demands. It is sometimes associated with the psychological factors. It is often noticed that if a customer were satisfied with a particular brand, the customer would be more likely to purchase the products of similar brands (Oliver 2014). Therefore, the consumers’ behaviour is needed to be treated as the utmost priority to determine the profits of the companies that are selling products or services.

Theory of Consumer Behaviour

The theory of consumer behaviour concentrates on the judgment of the consumers’ perception related to buying any good from a particular brand. The consumer behaviour determines how a customer spends the money on purchasing any good or service to attain the highest level of satisfaction. According to Schiffman et al. (2013), utility is the measurement of the satisfaction level that drives a consumer towards consuming any particular commodity. The perception thus may vary among the individuals. The theory of the consumer behaviour is thus concentrating on two major approaches, such as the cardinal approach to utility and the ordinal approach to utility.

Gifford and Nilsson (2014) explained that the Cardinalist school generally asserts that the utility can be quantified and measured. It suggests that there is the possibility to measure the satisfaction level that is obtained through consuming any particular good. It is measured by transforming into the quantitative terms. On the other hand, the Ordinalist school is suggesting the utility or the satisfaction level cannot be measured by obtaining the idea through using the good. In such cases, the consumers have the right to compare the product by other products available in the market. If the expected product is not satisfying the needs of the consumers, there is the possibility that the consumer can switch to another product of different brand.

Apart from the cardinal and ordinal utility, there is another type of category visible and that is Total Utility and the Marginal Utility. Ooijen et al. (2016) stated that the total utility is often known as the aggregated utility that is derived from the consumers’ perceptions after using the product. On the other hand, the Marginal Utility is conceptualized as the utility that flows from the additional unit of commodity over what has been consumed.

 

Types of Consumer Behaviour

It is necessary to determine that the resources are sufficient to fulfill the demands and needs of the potential consumers. The customer buying behaviour can be classified into four major categories that are explained below:

Complex Buying Behaviour of the Customers

The significant difference between the brands is visible when the customers are highly involved with the buying process. In such cases, the consumers need to collect the extensive and adequate information related to the product attribute (Konstantoglou et al. 2016). The product packaging can be helpful in such cases.

Variety Seeking Behaviour of the Customers

Many of the consumers are less involved with the buying products. In spite of the lower buying behaviour, there is the significant difference noticed between the brands. In such cases, the consumers seek the product variations more specifically. It is to be indicated that the consumers usually do not buy products from different brands due to the dissatisfaction level (Gifford and Nilsson 2014). They often seek variety and superiority and buy the products from different brands. The advertisements of the products influence the customers in such cases.

Dissonance Buying Behaviour of the Customers

In this category, the customers are more involved in focusing on the few differences in the brands. The consumers seek quality in terms of purchasing any product. However, it is noted that the preferable product quality with low rate can be effective enough in attracting the customers more specifically (Case and Given 2016).

Habitual Buying Behaviour of the Customers

In this buying behaviour, the customer involvement in the purchasing process is very less. There are even few differences found between the brands that influence the customers to purchase the products quickly. Therefore, these types of the consumers’ behaviour are needed to be judged before designing the product package (Konstantoglou et al. 2016).

 

Impact of Product Packaging on Consumer Behaviour

It is assumed that the buying behaviour of the customers is mostly influenced when the customers are in the store. The product packaging is the final point of influencing the decision of the customers related to the product purchase whereas the marketing messaging is influenced by the advertisements. The product packaging creates the clear linking between the brand specifications and the purchasing behaviour of the consumers.  It is thus considered as the one of the most fruitful process of establishing the interaction between the brands and the consumers. Konstantoglou et al. (2016) stated that packaging directly correlates to the product quality. It draws the attention of the customers when it is placed in the shelf of the store. Many of the universities proved that the packaging process has the direct influence on the decision-making process of the customer in different sectors. It is also examined that the consumers usually pay more attention towards the products and the packaging style that shapes the perspectives of the consumers whether to buy the products or not (Case and Given 2016). The innovative use of packaging is essentially needed to be concentrated since it generates the idea about the consumers’ attribute towards the brand. Hence, the packaging elements are repeatedly examined to draw the attention of the potential consumers.

Gaps in the Literature

The literature study provides the insights about the influence of the product packaging process on consumers’ purchasing behaviour. Even though the literature provides the ideas about the different elements of product packaging, it does not clarify the type of the packaging that can influence the consumers. The main intention of the customer is to understand the benefits of the innovative product packaging. Moreover, it is even essential to understand the current market needs. However, the literature study lacks the information regarding the current demands of the customers regarding the innovative features of the product packages. The literature study has not even provided the perception of the customers to determine the specific product features. Hence, the literature study is somewhat limited.

Conclusion

The product packaging process is considered as the maintenance of the whole package that becomes the ultimate selling proposition. It helps in stimulating the impulsive purchasing behaviour as well. The effective packaging process increases the market share and sales ratio by reducing the promotional and market costs. Consumer behaviour is the set of activities that determines the experience of the consumers in searching the expected prospects. These prospects usually include the selection, evaluation, purchasing process, and searching for the right products. These behaviours usually influence the customers to judge the available products and services. If these products and services are fulfilling the needs of demands of the customers, it will be effective enough in making a quick decision regarding the purchase of any product. The product packaging is the final point of influencing the decision of the customers related to the product purchase whereas the marketing messaging is influenced by the advertisements. The product packaging creates the clear linking between the brand specifications and the purchasing behaviour of the consumers.  It is thus considered as the one of the most fruitful process of establishing the interaction between the brands and the consumers

 

References

Case, D.O. and Given, L.M. eds., 2016. Looking for information: A survey of research on information seeking, needs, and behavior. Emerald Group Publishing.

Dessart, L., Veloutsou, C. and Morgan-Thomas, A., 2015. Consumer engagement in online brand communities: a social media perspective. Journal of Product & Brand Management, 24(1), pp.28-42.

Gifford, R. and Nilsson, A., 2014. Personal and social factors that influence pro?environmental concern and behaviour: A review. International Journal of Psychology, 49(3), pp.141-157.

Grunert, K.G., Hieke, S. and Wills, J., 2014. Sustainability labels on food products: Consumer motivation, understanding and use. Food Policy, 44, pp.177-189.

Gunter, B. and Furnham, A., 2014. Consumer Profiles (RLE Consumer Behaviour): An Introduction to Psychographics (Vol. 5). Routledge.

Konstantoglou, A., Kokmotos, E., Folinas, D. and Fotiadis, T.A., 2016, June. Significance of packaging elements from marketing and logistics points of view. In 4 th International Conference on Contemporary Marketing Issues ICCMI June 22-24, 2016 Heraklion, Greece (p. 392).

Kuvykaite, R., Dovaliene, A. and Navickiene, L., 2015. Impact of package elements on consumer’s purchase decision. Economics and Management, (14), pp.441-447.

Maniatis, P., 2016. Investigating factors influencing consumer decision-making while choosing green products. Journal of Cleaner Production, 132, pp.215-228.

Nikolova, H.D. and Inman, J.J., 2015. Healthy choice: the effect of simplified point-of-sale nutritional information on consumer food choice behavior. Journal of Marketing Research, 52(6), pp.817-835.

Oliver, R.L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.

Raheem, A.R., Vishnu, P. and Ahmed, A.M., 2014. Impact of product packaging on consumer’s buying behavior. European Journal of Scientific Research, 122(2), pp.125-134.

Schiffman, L., O'Cass, A., Paladino, A. and Carlson, J., 2013. Consumer behaviour. Pearson Higher Education AU.

ST Wang, E., 2013. The influence of visual packaging design on perceived food product quality, value, and brand preference. International Journal of Retail & Distribution Management, 41(10), pp.805-816.

Stolzenbach, S., Bredie, W.L., Christensen, R.H. and Byrne, D.V., 2013. Impact of product information and repeated exposure on consumer liking, sensory perception and concept associations of local apple juice. Food research international, 52(1), pp.91-98.

Van Ooijen, I., Fransen, M.L., Verlegh, P.W. and Smit, E.G., 2016. Atypical food packaging affects the persuasive impact of product claims. Food Quality and Preference, 48, pp.33-40.

Velasco, C., Woods, A.T., Petit, O., Cheok, A.D. and Spence, C., 2016. Crossmodal correspondences between taste and shape, and their implications for product packaging: A review. Food Quality and Preference, 52, pp.17-26.

Vyas, H., 2015. Packaging Design Elements and Users Perception: a context in fashion branding and communication. Journal of Applied Packaging Research, 7(2), p.5.

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