ABSTRACT
This study seeks to
examine the effect of Packaging on Consumer Buying Behavior of selected
Cosmetics products in Aba, Abia State with particular interest in context of PZ
Cussons Plc, in a bid to achieve the set objectives the researcher constructed
a well-structured questionnaire. The researcher made use of primary data and
adopted random sampling techniques. Base on the finding made by the researcher,
the cosmetics manufacturers should design their package in such a way that it
adds considerable value in influencing consumers’ perception and purchasing
decisions in the retail environment. Also the quality of the labelling and
packaging and appearance of product should be improved, and graphics,
information and words chosen to be put on the package should be well crafted.
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 1
INTRODUCTION
1.2 Background to the Study 1
1.3 Statement
of Research Problem 3
1.4 Objective of the Study 4
1.5 Research Questions 5
1.6 Research
Hypotheses 6
1.6 Significance of the Study 6
1.7 Scope of the Study 7
CHAPTER 2
REVIEW OF RELATED
LITERATURE
2.1.1 Overview
of Packaging 9
2.1.2 Packaging Color 11
2.1.3 Packaging Material Quality 15
2.1.4 Design of wrapper 15
2.1.5 Innovation 15
2.2 Importance of
Packaging 15
2.3 Consumer
Behaviour 16
2.3.1 Overview of
Buying Decision 17
2.4 Brief History of Pz Paterson Zochonis
Plc 18
2.5 Overview of Cosmetics Product 20
2.6 Theoretical Framework 22
2.6.1 Consumer Buying Behaviour Theory 23
2.6.2 The Theory of Attractive Quality 24
2.6.3 Kotler’s Behaviour Choice Model 24
2.7 Empirical Review 25
2.8 Summary of Literature 26
CHAPTER 3
RESEARCH
METHODOLOGY
3.1 Research
Design 28
3.2 Area of
Study 28
3.3 Population
of the Study 29
3.4 Sampling Techniques and Sample Size 29
3.4.1 Sample Size 29
3.5 Validity
of Instrument 30
3.5.1 Reliability
of the Instrument 30
3.6 Sources
of Data Collection 30
3.7 Method
of Data Analysis 30
3.7.1 Model
Specification 31
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS OF DATA
4.1 To investigate the extent to which
consumers are motivated to purchase cosmetics
products 32
4.2
To investigate the extent to which
packaging increases consumers satisfaction for cosmetics products 34
4.3
To ascertain the extent at which
packaging influences consumers perception and preferences for cosmetics
products 35
4.4 To investigate the extent to which
packaging increases frequency of
product
patronage 36
4.5
To determine the effect of Packaging
elements (colour, quality, wrapper design) and packaging innovation on consumer
purchase behaviour 37
CHAPTER 5
SUMMARY, CONCLUSION, RECOMMENDATION
5.1
Summary of Findings 39
5.2 Conclusions 40
5.3 Recommendations 41
REFERENCES
APPENDIX QUESTIONNAIRE
LIST OF FIGURES
Fig. 2.1: Conceptual Framework
For Packaging And Consumer Buying Behaviour
8
LIST OF
TABLES
Table
1. Frequency distribution
showing the extent to which consumers are
motivated to purchase
cosmetics products 32
Table
2. Frequency distribution
showing the extent to which packaging increases consumers’ satisfaction for
cosmetics products 34
Table
3. Frequency distribution
showing the extent at which packaging influences consumers’ perception and
preferences for cosmetics products 35
Table
4. Frequency distribution
showing the extent at which packaging increases frequency of product patronage 36
Table
5. Probit regression analysis
showing the effect of Packaging elements (colour, quality, wrapper design) and
packaging innovation on consumer purchase behaviour 37
CHAPTER 1
INTRODUCTION
1.1 Background to the
Study
With
the increasing competition, manufacturing firms and researchers have focused
more and more on customers and their preferences and thus new aspects of what
determines customer's choices are revealed every day. One of these preferences
is associated to customer's perceptions of product and package (Saber, Morteza,
Milad & Ravanbakhsh, 2013). We are all consumers, that is to say, we use or
consume food, cosmetics 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. So, consumer buying behavior is an important factor in recession
or boom of commercial activities. Correct understanding of consumer buying behavior
is a key factor in successfulness of marketing and advertising strategies. This
is of importance for both profit making and non-profit making organizations.
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 retainment of
existing customers are of great concern for many companies. Hence, due to
intense competitive pressures, organizations use various methods of sales and
marketing promotion in order to persuade and even force customers to buy their
products or services. According to the type of activity, these companies apply
different schemes such as high quality, reasonable price, good services, 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 packages, so that the package will be able to communicate
effectively with the buyer and provide the substrate for product selection by
making them interested and willing. Package is the cover and clothing of
product and buyers can find the quality, price, content, and function of
product by seeing the package. The relationship between package and customer is
developed by many variables such as color, pictures, designs, shapes, sizes,
etc (Saber, et al., 2013). Therefore,
in addition to maintenance of the product, package can undertake other tasks
that are very important. In fact, there two main functions for 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.
In
the past time primary purpose of packaging was to defend the product, but
currently according the varying marketing environments packaging is being used
as an instrument for increasing sales, attracting customers and product
communication to its consumers (Nayyar, 2012). Now days Role of Packaging has
change due to increasing changes in the consumer desires. More companies are
interested in packaging as a tool to increase their sales. A good packaging
helps to identify product to the consumers. Packaging is used for easily
delivery and safety purpose. The producer use the 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 & Ahmad, 2013). Poorly designed 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 packaging
as a tool
of sales promotion
and stimulator of
impulsive buying behavior
is growing increasingly.
So packaging performs
an important role in marketing
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 cosmetics product have not been able to
accrue the expected returns on investment (ROI) or even break even as a result
of poor 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 packaging on consumer buying behavior of selected cosmetics products in Aba,
Abia state; in the context of PZ Cusssons Plc.
1.2 Statement of Research Problem
It
is time that companies realized that they live in a marketplace and thus the
need to package their products and services to captivate the affection of their
potential consumers. Consumers tend to appreciate goods that have good
packaging. The size, colour, design, label, price of products affects a consumer’s
behaviour and tilt 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 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 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 packaging. A well packaged product
sells itself. Packaging is a method of communicating products information, both
product and brand character to the consumer. To what extent do 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 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 Cosmetics manufacturer in Nigeria has over the years ignored these basic
elements of packaging, thereby giving to their product packaging little or no
attention at all and this have negatively affected their marketing 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.
1.3 Objective of the Study
The
overall objective of this study is to examine the effect of packaging on consumer
buying behavior of selected cosmetics products in Aba, Abia State. Specifically,
the objectives was set out to;
i.
examine the extent to
which colour influence the purchase of PZ products.
ii.
examine the extent to
which shape increases consumers’ satisfaction of PZ cosmetics products.
iii.
ascertain the extent at
which wrapper influences consumers’ perception and preference of PZ products.
iv.
examine the extent to
which design increases frequency of product patronage of PZ products.
1.4 Research Questions
the following research questions were
explored in order to provide answers to the issues raised in the study and they
include as follows;
i.
to what extent does
colour influence purchase of PZ products?
ii.
to what extent does shape
increases consumers’ satisfaction of PZ cosmetics products?
iii.
to what extent does wrapper
influences consumers’ perception and preference of PZ products?
iv.
to what extent does design
increases frequency of product patronage of PZ products?
1.5 Research Hypotheses
The
following null hypothesis were tested in this study;
a) Ho1:
colour of a product has no significant effect on how consumers are motivated to
purchase PZ products.
b) HO2:
shape has no significant effect on consumers’ satisfaction with packaged PZ
products.
c) Ho3:
wrapper has no significant effect on consumers’ perception and preference for
PZ products.
d) HO4:
design has no significant effect on frequency of patronage of PZ products.
1.6 Significance of the Study
Academic
scholars, accounting 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 Packaging, Consumer Buying
Behavior and marketing 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 packaging which will guide them in effective marketing
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 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 PZ as adequate measures that
will be recommended, will go a long way in boosting the satisfaction and value
delivery ability of Paterson Zochoris.
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 package and Consumer Buying Behavior.
1.7 Scope of the Study
The
subjective scope of the study was limited to the effect of packaging on consumer
buying behavior of selected cosmetics product; while the geographical scope is Aba,
Abia State. Consumers or users of cosmetic products were review.
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