ABSTRACT
As consumers, we use cosmetic products, clothing, housing, education and services based on a special order. This research is to examine the effect of re-packaging on Consumer Buying Behaviour towards selected Cosmetics products in Abia State. The study adopted a cross-sectional survey design. The study therefore involved a sample size of 100 respondents. Analysis was done using Regression Analysis. Findings indicates that consumers react positively whenever products are newly prepackaged although repackaging involves a high financial outlay. The result of this study further revealed that repackaging has significant effect and positive relation with consumers buying behaviour towards cosmetics products. Based on the findings it is recommended that firms should constantly monitor the life any stage of their products in the market to know the appropriate time to repackage, package should be designed to separate components to better facilitate recycling, before package development, management should take environmental responsibility, applicable environmental and recycling regulations in to consideration and management should ensure that package is not deceptive.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgments
v
List
of Figures vi
List
of Tables vii
Table of Contents viii
Abstract x
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Objective of the Study 5
1.4 Research Questions 6
1.5 Research Hypotheses 6
1.6
Significance of the Study 7
1.7 Scope of the Study 8
CHAPTER TWO
REVIEW OF RELATED
LITERATURE
2.1.1 Overview
of Re-packaging 9
2.1.2 Re-packaging
Colour 10
2.1.3 Re-packaging
Material Quality 16
2.1.4 Design
of wrapper 16
2.1.5 Innovation
16
2.2 Importance of Re-Packaging 16
2.3
Consumer Behaviour 17
2.3.1
Overview of Buying Decision 18
2.4
Overview of Cosmetic Product 19
2.5 Theoretical
Framework 21
2.5.1
Consumer Buying Behavior Theory 21
2.5.2
The Theory of Attractive Quality 22
2.5.3
Kotler’s Behaviour Choice Model 23
2.6
Empirical Review 24
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1
Research Design 27
3.2
Area of Study 27
3.3
Population of the Study 27
3.4 Sampling
Techniques and Sample Size 28
3.5 Sources of Data 28
3.6 Validity of Instrument 29
3.7
Reliability of the Instrument 29
3.8
Method of Data Analysis 29
3.9
Model Specification 29
CHAPTER FOUR
PRESENTATION AND
ANALYSIS OF DATA
4.1 Effect of size of re-packaged products on
consumers’ patronage of selected
cosmetics products
in Abia State 32
4.2 Effect of colour of re-packaged products
on consumers’ purchase intention of
selected cosmetics
products in Abia State 33
4.3 Effect of re-packaged product design on
customer choice of selected cosmetics
products in Abia
State 34
4.4 Effect of re-packaged products label on
customers’ loyalty of selected cosmetics
products in Abia
State 35
CHAPTER FIVE
SUMMARY, CONCLUSION, RECOMMENDATION
5.1
Summary of Findings 36
5.2 Conclusion 37
5.3 Recommendations 37
REFERENCES
LIST OF
TABLES
Table
1. Regression analysis showing
the effect of size of re-packaged products
on
consumers’ patronage of selected cosmetics products in Abia State
32
Table
2. Regression analysis showing
the effect of colour of re-packaged products
on
consumers’ purchase intention of selected cosmetics products in Abia State 33
Table
3. Regression analysis showing
the effect of re-packaged product design
on
customer choice of selected cosmetics products in Abia State 34
Table
4. Regression analysis showing
the effect of re-packaged products label
on
customers’ loyalty of selected cosmetics products in Abia State 35
LIST OF FIGURES
Fig. 2.1: Conceptual Framework for Packaging and Consumer Buying Behaviour
9
CHAPTER ONE
INTRODUCTION
1.1 Background to the
Study
With
increasing competition in the business environment, firms have focused more on
customers and their preferences and thus new aspects of what determine
customer's choices are revealed every day and one of these preferences is
associated to customer's perceptions of re-packaged products (Saber, Morteza,
Milad and Ravanbakhsh, 2013). As consumers, we use or consume food, cosmetic
products, clothing, housing, education, services, ideas, etc based on a special
order. Decisions we make about consumption, demand for raw materials,
transportation, technical services, and the allocation of resources cause the
success of some industries and the failure of some others. However,
understanding consumer buying behavior is a key factor in successful
re-packaging and advertising strategies, in both profit making and non-profit
making organizations.
Re-packaging
is the process of conceptualizing, planning, and designing a packet or wrapper
to contain, protect and merchandise a product (Kotler 2003). In the present
world, expansion of market, attraction of new customers, and even retaining of
existing customers are of great concern for many companies. Hence, due to
intense competitive pressures, organizations use various methods of sales and
re-packaging promotion in order to persuade and even force customers to buy
their products or services. Companies apply different strategy such as high
quality, reasonable price, good services, and good treatment with customers,
and so on to attract customer’s satisfaction. One of the methods companies
apply to achieve this is the use of stylish and high-quality re-packages, so
that the re-packaged product communicates effectively with the buyer and
provide the substrate for product selection by making them interested and
willing.
Re-package
is the cover and clothing of product and buyers can find the quality, price,
content, and function of product by seeing the Re-Package. The relationship
between re-package and customer is developed by many variables such as colour,
pictures, designs, shapes, sizes, etc (Saber, et al., 2013). Therefore, in addition to maintenance of the
product, re-package can undertake other tasks that are very important. In fact,
there are two main functions for re-package; first, is protecting and
maintaining the product and, second, is attracting customers and helping the
sales. The first function is pursued through correct design, selection of
suitable structure, and using good raw materials along with considering the
content, distribution channels, and so on, while the second objective will be
realized by right selection of color, shape, pictures, composition, writings,
and other variables.
Consumer
buying behaviour is ways through which individual purchase and use the product
which satisfy their needs and wants (Keller, 2013). The purchase decision is a
series of choices or judgment made by a consumer prior to making a purchase
that begins once the consumer has established a willingness to buy. The
consumer must then decide where to buy the purchase, what brand, model, or size
to purchase, when to make the purchase, how much to spend, and what method of
payment will be used., but this decision can only be influenced by the product
re-package, how different is the product from other brands, thus re-packaging
affects consumer purchase decision.
Kotler and Armstrong, (2010; 2012) opine that re-packaging involves
designing and producing the container or wrapper for a product. Traditionally,
the primary function of the re-Package was to hold and protect the product. In
recent times, however, numerous factors have made re-packaging an important
re-packaging tool as well. Increased competition and clutter on retail store
shelves means that re-packages must now perform sales tasks-from attracting
attention, to describing the product, to make sales. Companies are realizing
the power of good re-packaging to create immediate consumer recognition of a
brand. For instance, an average supermarket in Nigeria stocks over 5,000 cosmetic
product; the average supercenter can carry as many as 15,000 cosmetic product.
The typical shopper passes by some 100 items per minute, and more than 70
percent of all purchase decisions are made in the store. In this highly
competitive environment, the re-package may be the seller’s last and best
chance to influence buyers. Thus, for companies, the re-package itself has
become an important promotional medium.
In
the past, the time primary purpose of re-packaging was to defend the product,
but currently according to the varying re-packaging environments, re-packaging
is being used as an instrument for increasing sales, attracting customers and
product communication to its consumers (Nayyar, 2012). Now days, Role of
Re-packaging has changed due to increasing changes in the consumer desires.
More companies are interested in Re-packaging as a tool to increase their
sales. A good Re-packaging helps to identify product to the consumers.
Re-packaging is used for easily delivery and safety purpose. The producer use
the re-packing for the consumer satisfaction that the product is original means
that the product is new. They also use for the promotional purposes as well as
to differentiate the product from other brand (Shah, Ahmad and Ahmad, 2013).
Poorly designed re-packages can turn off consumer’s attraction to a particular
product and lost sales for the company. Due
to increasing self-service
and changing consumer
lifestyles, the internet
in re-packaging as a tool
of sales promotion
and stimulator of
impulsive buying behavior
is growing increasingly.
So re-packaging performs
an important role in re-packaging
and encouraging or even sometimes discouraging the consumer from buying a
product, especially at the point of sale or at the time when a consumer is
choosing from among different brands
of similar products
type. This could
be treated as
one of the
most important factor
influencing a consumer’s
purchase decision.
In
the Nigeria manufacturing sector, most cosmetic product have not been able to
accrue the expected returns on investment (ROI) or even break even as a result
of poor re-packaging which have led to low patronage by the consumer in the
market place. These challenges in the industry made it expedient to analyze the
effect of re-packaging on consumer buying behaviour towards cosmetic products
in Abia state.
1.2 Statement of the Problem
Many
companies have realized that they live in a marketplace and thus need to
re-package their products and services to captivate the affection of their
potential consumers. Consumers tend to appreciate goods that have good
re-packaging. The size, colour, design, label, price of products affects a
consumer’s behaviour and add to his choice of products. Consumers in a market
with a large number of competitors and high discount to products and services,
high advertisement spending and a product brand must be re-Packaged such that
the consumer will admire and be comfortable with the product, thus, leading to
success and profitability of the product firm.
The
consumer buying behaviour is affected if those elements of re-packaging are
lacking. The absence of these elements depreciates the consumer’s decision over
the purchase of a product. In other words the value of a product is rated in
its re-packaging. A well re-packaged product sells itself. Re-packaging is a
method of communicating products information, both product and brand character
to the consumer. To what extent do re-packaging elements influence consumer
choice of a product? A phenomena which has largely placed firms in situations
which are sometimes difficult to deal with based on the consumers behaviour
towards the re-packaging strategy used in the market competition. Consumers
always have factors that affect their purchase of a particular product in the
market. In the world of complex product lines and service offering, value is
lost because sellers cannot accurately determine what consumers are willing to
pay for in a product features and attributes. Most of the Cosmetic manufacturer
in Nigeria has over the years ignored these basic elements of re-packaging,
thereby giving to their product re-packaging little or no attention at all and
this have negatively affected their re-packaging performance and also resulted
to low patronage from the consumers. Negative consumer buying behavior towards
market offerings have caused most industries to wind up because of their
inability to fit in the fierce competitive environment. This study aims at
filling gaps by examining the effect of repackaging on consumers buying
bahaviours.
1.3 Objectives of the Study
The
main objective of this study was to examine the effect of re-packaging on
Consumer Buying Behaviour of cosmetic products in Abia State. However, the
specific objectives were to;
i.
examine the effect of
size of re-packaged products on consumer patronage of cosmetic products in Abia
State;
ii.
examine the effect of
colour of re-packaged products on consumer purchase intention of cosmetic
products in Abia State;
iii.
ascertain the effect of
re-packaged product design on customer choice of cosmetic products in Abia
State and
iv.
determine the effect of
re-packaged products label on customer loyalty of cosmetic products in Abia
State.
1.4 Research Questions
the following research questions were
explored in order to provide answers to the issues raised in the study and they
are;
i.
how does size of
re-packaged products affect consumer patronage of cosmetic products in Abia
State?
ii.
how does colour of re-packaged
products affect consumer purchase intention of cosmetic products in Abia State?
iii.
how does re-packaged
product design affect customer choice of cosmetic products in Abia State?
iv.
how does re-packaged
products label affect customer loyalty of cosmetic products in Abia State?
1.5 Research Hypotheses
The
following null hypotheses were tested in this study;
Ho1: The size of re-packaged products has no
significant effect on consumer patronage of cosmetic products in Abia State
Ho2: The colour of re-packaged products has no
significant effect on consumer purchase intention of cosmetics products in Abia
State
Ho3: The product re-packaged design has no
significant effect on customer choice of cosmetics products in Abia State
Ho4:
The re-packaged products label has no
significant effect on customers’ loyalty of cosmetics products in Abia State.
1.6
Significance of the Study
Academic
scholars, students and researchers would be able to borrow from the findings of
this research to support literacy citation as well as develop themes for
further research. Specifically, the study would make theoretical, practical and
methodological contributions. The findings would contribute to professional
extension of existing knowledge in Re-packaging, Consumer Buying Behavior and re-packaging
performance.
This
research work will also contribute to the knowledge of marketers and other
business managers as it will assist them on effective planning and management
in areas of product re-packaging which will guide them in effective re-packaging
outing and how to devise strategic moves in meeting with the stated promotional
goals and objectives of the organization.
Also,
this study will be of great benefit to the Nigerian economy. This stems from
the fact that good re-packaging will help companies to gain competitive
advantage over their international competitors and thus, they will be
encouraged to pay taxes to the government when profit is maximized.
The
study will be of immense benefit to customers of as adequate measures that will
be recommended, will go a long way in boosting the satisfaction and value
delivery ability of cosmetic product.
This
research study will be of benefit to the manufacturing industry, industries
management, Marketers and stakeholders as it will unravel (expose) the benefits
and challenges of product re-package and Consumer Buying Behavior.
1.7 Scope of the Study
The study area of
this research work is limited to the effect of re-packaging on Consumer Buying
Behavior of Cosmetic product in Abia State. Geographically, the study will be
limited to Abia State. It is a State in the southeast of Nigeria and the main
trading centre in southeast. Upon the creation of Abia state in 1991The State
became a collecting point for agricultural products following the British made
railway running through it to Port Harcourt. It is a major urban settlement and
commercial centre in a region that is surrounded by small villages and towns.
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