ABSTRACT
The study examined the effect of packaging on consumer patronage of Saclux Paint Nigeria Limited Umuahia, Abia State. The specific objectives are to determine the influence of colour as a component of packaging on consumer patronage of Saclux Paint product; determine the influence of size as a component of packaging on consumer patronage of Saclux Paint product; determine the influence of wrapper as a component of packaging on consumer patronage of Saclux Paint product; determine the influence of shape as a component of packaging on consumer patronage of Saclux Paint product and to determine the influence of label as a component of packaging on consumer patronage of Saclux Paint product. The study adopted survey research design and simple random sampling technique. A population of the study comprises of 189,230 customers and consumers of Saclux Paint Nigeria Limited Umuahia, Abia State. Taro Yamane formula were used to determine a sample of 399 from the population. However, among the 399 copies of questionnaire distributed, 369 questionnaire were recouped which form the sample of the study. Primary data sourced from distribution of questionnaire to the staff of Saclux Paint Nigeria Limited Umuahia, Abia State. A test-re-test were conducted to ensure validity and reliability of the data. The data were presented using simple percentage, frequency and 5point Likert scale and tested using multiple regression model (SPSS). The empirical findings revealed that colour of the product, size of the product, wrapper of the product, shape of the product and label of the product package have a positive and significant effect on consumer patronage in Saclux Paint Nigeria Limited Umuahia Abia State. It was recommended that the management of the studied organization should devise appropriate strategic measures for the adoption of lucrative packaging attributes in order to attract consumer patronage and loyalty. This will help the organization to again more competitive advantage.
TABLE OF CONTENT
Title page i
Dedication ii
Acknowledgement iii
Declaration iv
Certification v
Table of Content vi
List of Tables viii
Abstract ix
CHAPTER ONE: INTRODUCTION
1.1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 5
1.4 Research Questions 6
1.5 Research Hypothesis 6
1.6 Significance of the Study 7
1.7 Scope of the Study 7
1.8 Limitation of the Study 8
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 CONCEPTUAL FRAMEWORK 9
2.1.1 Concept of Packaging 9
2.1.2 Effects of Packaging Elements on Consumers Purchase Intentions 13
2.1.3 The Role of Packaging on Consumer Behaviour 17
2.1.4 Impact of Packaging on Consumers’ Purchase Intention 21
2.1.5 Packaging as a tool for Consumer Preference 22
2.2 Theoretical Background 24
2.2.1 Theory of Color 24
2.2.2 Theory of Packaging 25
2.2.3 The Theory of Attractive Quality 26
2.3 Empirical Review 27
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design 28
3.2 Area of Study 28
3.3 Population of the Study 29
3.4 Sample Size Determination 29
3.5 Sampling Technique 30
3.6 Source of Data 30
3.7 Method of Data Collection 30
3.8 Validity of the Study 30
3.9 Reliability of the Study 31
3.10 Method of Data Analysis 31
3.11 Model Specification 31
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0 Introduction 33
4.1 Rate of return questionnaire 33
4.1.2. Socio-economic characteristics of the respondents 34
4.2 Data Presentation 37
4.3 Test of Hypotheses 42
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings 45
5.2 Conclusion 46
5.3 Recommendations 47
REFERENCES
LIST OF TABLES
4.1 Return of distributed questionnaires from the respondents 32
4.2 Socioeconomic profile of staff of Saclux Paint Nigeria Limited Umuahia, Abia State 33
4.3: On the influence of colour of product on consumer patronage 37
4.4: On the basis of influence of size of the product on consumer patronage 38
4.5: On the basis of influence of wrapper of the product on consumer patronage 39
4.6: On the basis of influence of shape of product on consumer patronage 39
4.7: On the basis of influence of label of product on consumer patronage 40
4.8 Multiple Regression Result on effect of packaging on consumer patronage in Saclux
Paint Nigeria Limited 42
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Packaging is the process of conceptualizing, planning, and designing a packet or wrapper to contain, protect and merchandise a product (Kotler 2003). In modern time marketing, if packaging does not sell a product, it is as good as worthless. The vital function of packaging comes out clearly in the environment of self-service stores, where sales have to be dependent on the strength of packaging. This is achieved by designing a package to attract consumer’s attention at the point of purchase, to furnish consumers with needed information about the product, so as to provide the on-the-spot persuasion and incentive that is often vital to make sales or required to propel consumers into buying.
According to Kuvykaite (2009) packaging attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about a product. Also package imparts unique value to products (Underwood et al., 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 behavior (Wells, Farley & Armstrong, 2007).
Thus package performs an important role in marketing communications and could be treated as one of the most important factor influencing consumer’s purchase of package. Defining packaging as the vehicle that conveys the brand of a product to consumer. Amarchand et al., (1979) opine that the big test of packaging is how well it succeeds in registering relevant marketing messages to the target audience. To scale the big test, packaging has to be supported by the twin pillars of planning and innovation.
Scheme and Smith (1980) view packaging as a crucial activity in product planning. Since packaging fulfills an important promotional function in modern marketing, it has to be “aesthetically pleasing and be distinctive enough to stand when placed side by side with competing brands on the retail shelf (Nwokoye, 1987).
The key factor for success in packaging is the application of the marketing approach in product packaged to contain, protect, and merchandise a given product (Nwokoye, 1987). The marketing approach to product packaging takes cognizance of the fact that every product communicates a message, and in view of this, a product must be packaged to communicate the desired message to the target market. To effect a proper packaging, the image of the product must be totally different from that of any other product. The ultimate challenge is to make the package distinct and unique so that it is instantly recognized whether alone or when placed side by side with other packages (Liang, 2008).
Packaging has become itself a sales promotion tool for the organizations. The consumer’s buying behavior also stimulated by the packaging quality, color, wrapper, and other characteristics of packaging. Packaging is a whole package that becomes an ultimate selling proposition, which stimulates impulse buying behavior. Packaging increases sales and market share and reduces market and promotional costs. According to Rundh (2005) package appeals consumer’s attentiveness towards a certain brand, increases its image, and stimulates consumer’s perceptions about product. Furthermore, packaging conveys distinctive value to products (Underwood, 2003; Silayoi, & Speece, 2007). Packaging works as an instrument for differentiation, and helps consumers to decide the product from wide range of parallel products. Packaging also stimulates customer’s buying behavior (Wells, & Armstrong, 2007).
Consumers nowadays are bombarded with too many marketing stimuli, clues in order to be attracted by different companies. In this line, Keller (2008) states that consumers are exposed to more than 20,000 product choices within a 30-minute shopping session. The primary purpose of packaging is to protect the product, but packaging can be used by companies as an instrument for promoting their marketing offer, and for boosting their sales. A good packaging helps to identify and differentiate products to the consumers. Packaging is used for easy delivery and safety purpose. Packaging helps companies differentiate the product from other brand.
Furthermore, companies must understand what influences consumers in their consumer buying process. They must also understand what factors influence the buying behavior and the role of the packaging elements toward buying decision process of consumers during their purchase decision. Market research helps companies to create the ‘right’ packaging for a product, as well as the packaging elements that might be of importance to consumers. According to Alvarez and Casielles (2005) organizations’ intentions are developing brands in order to attract consumers and retain the existing ones.
According to Rahim (2014), packaging is “now more a component of the brands image than ever” Tins and cartons have given way to sleek pouches, satchets and plastic containers. Therefore, packaging can defined as all activities of designing and producing the container for a product, the container is called the package.
Consumers respond to packaging based on previous information, learned reactions and individual preferences (Aaker 2010). So, packaging elements, shapes, colors, sizes and labels might influence consumers to respond positively. Packaging is in fact a composite of activities in establishing brand names, brand mark, copyright and the like. Therefore, when packaging came, it became so strong that today hardly anything goes unbranded. Example salt is packaged in distinctive manufacturer’s containers or sacks, oranges are stamped with growers’ names, common belt and nuts are packaged in cellophane with distributors label and automobile companies, spark plugs, tyre, bear separate brand names from the auto makers (Aeker, 2010).
According to Nwokoye (1987), paint industries represents one of the industries where packaging as a marketing instrument plays a significant role. Besides, in recent times, the industry has attracted a lot of manufacturers. Every one of the manufacturer comes with his own brand to the market, and more so to force his own brand into the customers’ shopping bag.
1.2 Statement of the Problem
Many companies seem to overlook the importance of packaging as a tool for customer attraction and retention. Failure of many companies to study to know what actually attracts the consumer; colour, size, shape, label, printings etc. has led to poor customer patronage and poor customer retention. The issue of packaging of paint products in the Nigeria context cannot be over emphasized. Some are of the view that paint product packaging will constitute a problem to the society at large while other disagree with this issue (Ahmed, 2013). To be more precise, an example is that we have different types of paints which, when consumed by the customers will give the same satisfaction, but the issue is, these products have to be branded so as to give each and every product its own identity that will differentiate it from others or rather its competitors (Rutelione et al., 2008).
Packaging has become an essential motivating factor in the area of consumer patronage in any organization, whether manufacturers of industrial or consumer products. Hence, the effect of packaging on consumer patronage of Saclux Paint Nigeria Limited Umuahia Abia State.
1.3 Objectives of the Study
The main objective of this study is to examine the effect of packaging on consumer patronage of Saclux Paint Nigeria Limited Umuahia, Abia State. The specific objectives of this study are to:
i. determine the influence of colour as a component of packaging on consumer patronage of the company product.
ii. determine the influence of size as a component of packaging on consumer patronage of the company product.
iii. determine the influence of wrapper as a component of packaging on consumer patronage of the company product.
iv. determine the influence of shape as a component of packaging on consumer patronage of the company product.
v. determine the influence of label as a component of packaging on consumer patronage of the company product.
1.4 Research Questions
The following research questions will be addressed:
i. What is the influence of colour as a component of packaging on consumer patronage of the company product?
ii. What is the influence of size as a component of packaging on consumer patronage of the company product?
iii. How does wrapper as a component of packaging influences consumer patronage of the company product?
iv. What is the influence of shape as a component of packaging on consumer patronage of the company product?
v. What is the influence of label as a component of packaging on consumer patronage of the company product?
1.5 Research Hypothesis
The following research hypotheses will be tested to ascertain the objectives that are raised. The hypotheses are stated in null (Ho) terms.
H01: Colour as a component of packaging has no influence on consumer patronage of the company product.
H02: Size as a component of packaging has no influence on consumer patronage of the company product.
H03: Wrapper as a component of packaging has no influence on consumer patronage of the company product.
H04: Shape as a component of packaging has no influence on consumer patronage of the company product.
H05: Label as a component of packaging has no influence on consumer patronage of the company product.
1.6 Significance of the Study
This research work will be beneficial to the organization under study (Saclux Paint Nigeria Limited Umuahia, Abia State) as the researcher will search into various aspects of marketing branded and packaged paint products within the organization to ascertain whether the huge amount of money spent to brand and package paint products is justified.
The study is also expected to serve as a reference material for future research work in this important aspect as it can be consulted as a reference material especially if there is the need to improve on the study. Others that the research work will benefit include lecturers, students and other researchers that may make reference to the project in future.
1.7 Scope of the Study
This study focuses on “effect of packaging on customer patronage”. The researcher restricts this study specifically to Saclux Paint Nigeria Limited Umuahia, Abia State. Saclux Paints Plc. is located in Ohokobe Afaraukwu Ibeku, Umuahia North, Abia State. The company is mainly into Manufacturing, paints and offering Emulsion Paints, Glosses, and Paint.
1.8 Limitation of the Study
In the process of carrying out this research work, some problems were encountered. The problems include the following:
Time Constraints: The limited time involved for carrying out the research and meeting up with the approved academic calendar for the completion of the programme was not enough.
Financial Constraints: Due to limited resources at the disposal of the researcher, we encountered financial constraints which militate against possible access to all the required information for the study.
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