Project – EFFECT OF PACKAGING ON CONSUMERS’ BUYING BEHAVIOUR – A STUDY OF GUINNESS NIGERIA PLC IN IKEJA, LAGOS

CHAPTER ONE

INTRODUCTION

• Background of Study

Consumers are strongly affected by the packaging of products that are worth buying. Marketers are well aware of this fact, and go the extra mile to create packaging that will draw in consumers and convince them to buy a product. This dynamic leads to a riot of competing colours, shapes and promises in supermarkets and shopping malls across the market (Bloch, 1995).

Kotler, (1999) defines packaging as “all the activities of designing and producing the container for a product.” Packaging can be defined as the wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean.  Packaging is the outer wrapping of a product. It is the intended purpose of the packaging to make a product readily sellable as well as to protect it against damage and prevent it from deterioration while storing. Furthermore the packaging is often the most relevant element of a trademark and conduces to advertising or communication.

In a competitive environment, the role of packaging has changed due to increasing self-service and changing consumers’ lifestyle (Patrick, 2002). Firms’ interest in packaging as a tool of sales promotion is growing increasingly. Packaging becomes an ultimate selling proposition stimulating impulsive buying behaviour, increasing market share and reducing promotional costs, (Mitul and Bhavesh, 2012)

Packaging is a vital and indispensable tool in marketing and it is referred to as the fifth ‘p’ of the marketing mix along with the price, product place and promotion, (Ailawadi, Lehmann and Neslin, 2001)

According to Rundh (2005) packaging attracts consumer’s attention to particular brand, enhances its image, and Effects consumers’ perceptions about product. Also packageing 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 behaviour (Wells, Farley & Armstrong, 2007).

The significance of packaging has come to be increasingly recognized in export as well as in marketing of a wide range of consumer goods and industrial products within the country. The volume of exports depends not only on the quantity of the production and prices, but also to a substantial extents on the standards of packaging adopted for the products. Goods damaged in transit or arriving at the destination in an unacceptable condition tarnishes the reputation of the manufacturer as well as the country as a whole, besides colossal wastage of scarce economic resources, (Cavusgil, 1993).

Thus packaging performs an important role in marketing communications and could be treated as one of the most important factors influencing consumers’ buying behaviour. In this context, seeking to maximize the effectiveness of package in a buying place, the researches of package, its elements and their impact on consumers’ buying behaviour became a relevant issue.

• Statement of The Problem

One of the problems of packaging with respect to consumer decision is that it can be deceitful if proper inquiry is not carried on the product before purchase. Since the package covers up the entire product, consumer may not be able to have access to the product before making decision.

Again, improper dispose of package refuse can constitute environmental hazard to the people within the environment. As a result, balancing the environmental problem of too much packaging waste with the three essential packaging functions of protection, preservation, and promotion has become a central problem.

Furthermore, another challenge encountered in packaging is the cost involved. Manufacturer might want to save cost of production by reducing the quality of a product’s package which will in turn have adverse effect on the final consumer because poor packaging can be detrimental to the health.

• Aim And Objectives

Specifically, the objectives of the study are stated below:

1. To find out the Effect of packaging of Guinness products on consumers’ buying behaviour.
2. To examine the extent that packaging has contributed to an increase in consumers’ awareness of a product.

iii. To show the processes and procedures that are involved packaging of consumers’ goods.

1. To measure the relative impact of each packaging element on the consumers’ buying behaviour.
2. To identify the psychological effect of packaging on consumers’ buying behaviour.

• Relevant Research Questions

Based on the purpose of the study, the following questions are raised to provide solution to the research problems:

1. Does the packaging of Guinness products affects consumers’ buying behaviour?
2. To what extent has packaging contributed to an increase in consumers’ awareness of a product?

iii. What are the processes and procedures that are involved in packaging of consumers’ goods?

1. How can the relative impact of packaging element be measured on consumers’ buying behaviour?
2. What psychological effect does packaging have on consumers’ buying behaviour?

1.5 Relevant Research Hypotheses

In carrying out this research work these hypothetical statements are suggested to serve as a direction on which the work will be premised.

1. H_o: Packaging does not contribute to an increase in consumers’ awareness of a product i.e. Guinness product.

H₁:   Packaging does contribute to the increase of consumers’ awareness of a product i.e. Guinness product.

2. H_o: That packaging does not increase the sales volume of Guinness Product.

H₁: That packaging does increase the sales volume of Guinness Product.

1.6 Significance of the Study

The findings and recommendations of the study will be of great benefit through the following ways:

The study will help to broaden the understanding of Public Relation Officers about the importance of packaging on a product and how it affects consumers’ buying behaviour.

It will also help consumers to choose the product from range of similar products, stimulates customers buying behavior.

Finally, it will sensitize the students to know that an effective packaging do reflect in an organization turnover.

1.7 Scope of the Study

The research work will evaluate the Effect of packaging on consumers’ buying behaviour with a view to explore Guinness Nigeria plc in Ikeja, Lagos. The study will also observe the psychological effect of packing on the image of an organization.

1.8 Limitation of the Study

The study as perceived might face some logistic challenges in terms of the time and the costs involved in carrying out the research, but nevertheless, it would endeavor to accomplish its aims and purpose.

1.9 Definition of Terms

Consumer: A consumer is a person or group of people that are the final users of products or services generated within a social system. A consumer may be a person or group, such as a household.

Purchasing: Purchasing refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.

Packaging: packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages.

Labeling: Labelling is any written, electronic, or graphic communications on the packaging or on a separate but associated label.

Effectiveness: This simply means doing the right thing.

Efficiency: This means doing the right thing well

Organization: An organization is a social group which distributes   tasks for a collective goal.

Sale: A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity.

Productivity: Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input.

Project – EFFECT OF PACKAGING ON CONSUMERS’ BUYING BEHAVIOUR – A STUDY OF GUINNESS NIGERIA PLC IN IKEJA, LAGOS