PACKAGING AS A DETERMINANT FOR CONSUMER PURCHASE BEHAVIOUR TOWARD PERFUMES (A STUDY OF STARLINE NIGERIA LIMITED ABA, ABIA STATE)

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ABSTRACT

The study examined packaging as a determinant for consumer patronage of perfumes in Aba Metropolis. The specific objectives were to; determine the effect of product size on consumer patronage of perfumes in Aba Metropolis; examine the effect of product shape on consumer patronage of perfumes in Aba Metropolis; ascertain the effects of name of the perfume on consumer patronage in Aba Metropolis and measure the effect of name of the manufacturer on consumer patronage of perfume in Aba Metropolis. The study adopted survey research design and Random sampling technique. A population of 534,262 populace in Aba South and Aba North were used for the study. Taro Yamane formula were used determine a sample of 400 persons from the population. More so, 366 copies of questionnaire were recouped from the respondents. Primary data sourced from distribution of questionnaire to 400 persons above 18years in Aba Metropolis Aba Abia State were used for the study. A test-re-test was conducted to ensure validity and reliability of the data. The data were presented using frequency and percentage. The hypotheses were tested using multiple regression model (SPSS). The descriptive result shows that 61.8% and 57.9% of the respondents strongly agree that Starline perfume product attract your patronage and medium/moderate size of perfume product affects your purchase decision respectively. The empirical result revealed that Size of perfume, Modification in shape of perfume and labelling have positive and significant implication on consumer patronage for perfume in Aba Metropolis in Abia State. However, brand name has no significant effect on consumer patronage; we accepted null hypothesis and reject alternative. It was recommended that Marketing unit in Staline needs to pay proper attention to reliable and attractive packaging elements through setting of packaging standard and implementation of strategy to ensure proper protection and promotion of a product..






TABLE OF CONTENTS

Title Page                                                                                                                                i

Declaration                                                                                                                             ii

Certification                                                                                                                           iii

Dedication                                                                                                                              iv

Acknowledgement                                                                                                                  v

Table of Contents                                                                                                                   vi

List of Tables                                                                                                                          vii

Abstract                                                                                                                                  viii

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study                                                                                                  1

1.2 Statement of the Problem                                                                                                 3

1.3 Objectives of the Study                                                                                                    4

1.4 Research Questions                                                                                                          5

1.5 Research Hypotheses                                                                                                        5

1.6 Significance of the Study                                                                                                 6

1.7 Scope of Studies                                                                                                               6

CHAPTER TWO                 

REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework                                                                                                    8

2.1.1 Concept of Packaging                                                                                                    8

2.1.2. Effect of Size and Shape on Consumer Purchase Decision                                         10

2.1.3. Effect of Brand Name on Consumer Purchase Behaviour                                           11

2.1.4. Effect of Design and Colour of Packaging on Consumer Purchase Decision:                     12

2.1.5 The Effect of Labelling on Consumer Purchase Decision                                            14

2.1.6 The Role of Packaging on Consumer Behaviour                                                          15

2.1.7 Impact of Packaging on Consumers’ Purchase Intention                                             18

2.1.8 Packaging as a tool for Consumer Preference                                                               19

2.1.9. Effect of Brand Name on Brand Preference                                                                 20

2.1.10 Element of Packaging                                                                                                  22

2.2 Theoretical Framework                                                                                                    24

2.2.1The Generic Theoryof Buying Behaviour                                                                      24

2.2.2 Theory of Planned Behaviour by Ajzen (1991)                                                            24

2.2.3 Reason Advance Theory                                                                                                25

2.3 Empirical Review                                                                                                             26

2.4 Summary of Related literature                                                                                         29

2.5 Gap of the Literature                                                                                                        29

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research design                                                                                                                32

3.2 Source of Data Collection                                                                                                32

3.3 Population of the study                                                                                                     32

3.4 Sample Size Determination                                                                                              33

3.4.1 Method of Data collection                                                                                             33

3.4.2 Sampling Techniques                                                                                                    33

3.5 Validity and Reliability of Research Instrument                                                              33

3.5.1 Validity Test                                                                                                                  33

3.5.2 Reliability Test                                                                                                              34

3.6 Method of Data Analysis                                                                                                                                                              34

3.7Scope/Area of the Study                                                                                                    35

CHAPTER FOUR

DATA PRESENTATION AND ANALYSES

4.0 Introduction                                                                                                                      36

4.1 Rate of Return Questionnaire                                                                                           36

4.1.2Demographic Characteristics of the Respondents                                                          37

4.2 Presentation of Data                                                                                                         39

4.2.2Frequency in consumption of Starline Nigeria Limited perfume.                                    39

4.2.1.Effect of Product Size on Consumer Patronage of Perfumes                                        39

4.3 Test of Hypotheses                                                                                                           42

4.4 Discussion of Results                                                                                                       44

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings                                                                                                       45

5.2. Conclusion                                                                                                                       46

5.3. Recommendations                                                                                                           47

REFERENCES                                                                                                                       49

APPENDIX                                                                                                                            58







LIST OF TABLES

Table 4.1: Return of Distributed Questionnaire from the Respondents                                    34

Table 4.2: Socioeconomic Characteristics of the Respondents                                              35

Table 4.3: Frequency in Consumption of Starline Nigeria Limited Perfume                                  37

Table 4.4: Effect of Product Size on Consumer Patronage of Perfumes                                    37

Table 4.5: Effect of Product Shape on Consumer Patronage of Perfumes                                    38

Table 4.6: Effect of Name of the Perfume on Consumer Patronage                                      39

Table 4.7: Effect of Name of the Manufacturer on Consumer Patronage of Perfume      40

Table 4.8: From the Stated Hypotheses and Model, we specify multiple regression                    41


 

 

 

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the ever increasing competition of today's global market effective product promotion is crucial; and product packaging has come to play a more important role as a brand communication vehicle in the fast moving consumer goods like cosmetics (Armstrong, 2009). Thus, most consumer products are packaged through visual and verbal packing elements in order to attract consumer patronage. Packaging performs various significant roles which include protecting a product from any sort of damages, offering information about the products, quality and how to the product (Rundh, 2012). In today’s global world virtually all goods manufactured or processed require packaging at some point of their production or distribution. Packaging decisions form part of total marketing strategy because since it influences consumers’ purchase decision and usage for a particular product(Burke, 2011).

Packaging can be defined as the attractive outlook which convey both visual and verbal information to the consumer and also a container or wrapper which is necessary to convey a product to the ultimate consumer.Packaging in modern terms is used to identify, describe, protect, display, promote and otherwise make the product marketable (Okpara, 2009).

Packaging plays a multi dynamic function in making a product attractive and captivating to the sight of its potential customers, which in turn enables each customer identify the basic features of the brand due based on its packaging elements (Rundh, 2015). Thus, packagingelements affect the emotions of a consumers and then transmits information whichenable him make purchase decision.Most consumers are moved by a products packaging elements, which is (color, shape, size, design used, name of the product,name of the manufacturer, and other definite contained in the label. Now for a product to travel safely through the channels of distribution it must have at least the minimum protection offered by the company through the use of containers and other packaging elements.

The significant influence of visual and verbal packaging elements on purchase decisions have been acknowledged as the elements which are in first seen attract consumers’ attention before they make their purchase decision. It is widely recognized that over 70% of purchasing decisions are made at the shelf, or point of purchase (Dan, 2011). This decision, however is basically a function of what is seen, heard and perceived. Thus, both visual and verbal packaging are often the first impression consumers obtain from the product before making an actual purchase and this is done through a number of processes. They draw attention to the brand, conveys the products’ attributes, reinforces the perception of the consumers and generate hedonic and sensory expectations as well as enhancing quality judgements (Reis, 2015).

Packaging also plays a significant role in product positioning. Package shape, size and consumer perceptions can be the determining factors in point-of-purchase decisions which characterize the majority of shopping occasions; as marketing environment has become increasingly complex and competitive. A product’s packaging is something which all buyers experience and which has strong potential to engage the majority of the target market. This makes it an extremely powerful and unique tool in the modern marketing environment. Packaging can as well be seen as aninstrument for differentiation which helps consumers to make purchase decision from wide range of parallel products as it stimulates customer’s buying behavior (Ahmed, Vishnu and Muhammad, 2014).

Consequently, packaging is a very important marketing strategy to attract the consumer’s attention. Sometimes packaging is so important that it costs more than the product itself in order to lure the consumers to buy it (Soroka, 2012). Diana (2014) opined that most consumers judge a product by its packaging before buying. It is therefore, logical to say that attractive packaging is crucial in order to get the first time buyers to buy a product and remain loyal.

1.2 Statement of the Problem

Although, the use of packaging has become a useful tool that help marketers to capture customer attention and gain competitive advantage over competitors. And effective packaging is one among other factors that attract customers to cosmetics but most of the organizations, marketers, and sellers find it difficult to choose the appropriate product name, size, colour, shapes and design which has inverse effect on consumer purchase decision making and patronage. Also the use of packaging by most organizations specifically to induce sales has created negative effects in the minds of customers because, irrespective of the product quality such intention allows customers to doubt the quality of the product since emphasis is made more on the physical appearance of a product than the contents which makes up the product. This invariably resulted into low sales, turnover and low profit maximization (Taiye, Ogunnaike, Dirisu and Onochie, 2015).

It is believed that the first thing consumers see before making a purchase is packaging which encompasses product name, shapes, size, colour, labeling, and design. It is true that these components significantly induce purchases(Okpara, 2009). Furthermore, information which holds powerful influence on consumer purchase decision may result to wrong purchase as consumers consider the reliability of the information on the pack of a product before purchase.Thus, it could be that most packaged products carry unreliable information just with the aim of maximizing profits.Critics of business allege that some package designs are misleading, perhaps deliberately so. Most people feels that the great variety of package designs makes it difficult for consumers to make value comparisons easily (Chaneta, 2012).

Packaging has also been criticized from the environment perspective. Specific concerns imply that packaging causes environmental pollution and it depletes our natural resources. Packaging is also expensive particularly for firms with low capital base. Moreover, health hazard occur from some forms of plastic packaging and some aerosol cans used by firms mostly by cosmetics companies. Others feel that packaging is deceptive as consumers are often presented with difficulty when making purchase decision as a result of the excessive products that have dominated the business environment (Donald, 2012). Also, evidence has shown that packaging contribute to or generates solid waste disposal problem (Chaneta, 2012).

Organizations now engage in packaging and repackaging of their products making it difficult for consumers to make choices among different competing products. This however, has lead most consumers to consistently purchase the wrong product because of its attractive packaging. Also, organizations spend a lot of money on packaging, in trying to differentiate their products from competitors. As a result, firms spend more than their actual budgets as such leading to low returns at the end of the financial year. It is against this background that this study seeks to examine the packaging as a determinant for consumer patronage of perfumes in Aba Metropolis with Starline Nigeria Limited products as case study.

1.3 Objectives of the Study

The main objective of the study is to examine packaging as a determinant for consumer patronage of perfumes in Aba Metropolis. The specific objectives are, to;

i.               Determine the effect of product size on consumer patronage of perfumes in Aba Metropolis;

ii.              Examine the effect of product shape on consumer patronage of perfumes in Aba Metropolis;

iii.            Ascertain the effects of brand name on consumer patronage of perfumein Aba Metropolis;

iv.            Measure the effect of labelling on consumer patronage of perfume in Aba Metropolis.

1.4 Research Questions

1.              How does product size of perfume affect consumer patronage of perfumes in Aba Metropolis?

2.              How does shape of perfume affect consumer patronage of perfumes in Aba Metropolis?

3.              How does brand name affect consumer patronage of perfume in Aba Metropolis?

4.              How does labelling affect consumer patronage of perfume in Aba Metropolis?

1.5 Research Hypotheses

The following hypotheses are stated in null form for the study:

H01: Package size of perfume has no significant effect on consumer patronage for perfume in Aba Metropolis.

H02: Package shape of perfume has no significant effect on patronage of perfumes in Aba Metropolis.

H03: Brand name has no significant effect on patronage of perfume in Aba Metropolis.

H04: Labelling has no significant effect on patronage of perfume in Aba Metropolis.


1.6 Significance of the Study

The findings and recommendations of the study will benefit the following groups; Management, Marketers, Consumers, Policy makers and economic planners and researchers.

To management of Starline Nigerian Limited; the findings and recommendations of the study will guide management of the studied organization to pay more attention to both visual and verbal packaging elements. Since customers or users of cosmetics products makes their decision first at the point of sight before considering whether to make purchase decision and exhibit repeat purchases. The findings of the study will further help the organization appropriately apply the right packaging as evidence has shown that packaging induces sales and significantly and positively affects the sales volume of organization.

To marketers; the study will enable marketers understand how various packaging concept could be harnessed to inspire consumers patronage on cosmetics product in other to increase the profit level of the organization. Also the significance of the study will expresses itself by being a helpful tool for marketers, designers and retailers of cosmetics (perfumes) to direct marketing campaigns through inspiring packaging concept (visual and verbal).

To policy makers or decision maker in the company; the study will be of great benefit in the sense that it will give room for several recommendations which will allow the usage of packaging to influence sales.

Researchers and students interested in a similar field of study in future will find this work useful conceptual guide and reference material.


1.7 Scope of the study

The research work focused onpackaging as a determinant for consumer patronage of perfumes in Aba Metropolis with Starline Nigerian Limited products in focus.Geographically, the study will be conducted in Aba Metropolis in Abia State. Aba metropolis is the commercial nerve centre of Abia state. It is situated on latitude 5°07’N and longitude 7° 22’E, covering an area of about 2.458KM 2 (ABSG, 2007). Aba metropolis is made up of two local government areas (LGAs) comprising Aba South and Aba North LGAs with a total population of over 534,262 persons (NPC, 2006). Aba christened “Enyimba” city, is one of the most densely populated towns in the South Eastern part of Nigeria. And as such most of the companies in the country have their factor base and branches in the town.

 

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