ABSTRACT
This
study investigates the impact of product packaging on consumer preference,
focusing on Cadbury Nigeria PLC in Aba, Abia State. The main objectives are to
examine the effects of package graphics, dimensions, information, wrapper, and
text-font on consumer preference.
Employing
a descriptive research design, data is collected from consumers of Cadbury
Nigeria PLC products in Aba, Abia State, using a multistage sampling technique.
A sample size of 90 respondents is determined using Tucman's formula.
Primary
data collection is conducted through self and researcher-administered
questionnaires, and SPSS software is utilized for data analysis. Descriptive
statistics, correlation analysis, and hypothesis testing are employed to
analyze the data.
Findings
reveal significant insights into consumer preferences regarding product
packaging. Notably, respondents show a preference for transparent packaging
(graphics), attractive package shapes and sizes, informative labeling,
appealing product wrappers, and stylish text-fonts. Bournvita emerges as the
most preferred product among consumers in the study area.
Correlation
analysis indicates a high positive correlation between package graphics,
dimensions, information, wrapper, text-font, and consumer preference, all of
which are statistically significant.
In
conclusion, the study affirms the critical role of product packaging in
influencing consumer preference. Marketers are urged to focus not only on the
physical attractiveness of packaging but also on conveying the product's useful
value and benefits. Audience research should inform packaging design decisions
to align with predominant factors influencing consumer preference. Moreover,
advertising agencies should prioritize providing consumers with full
information about products, including potential side effects.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7
Scope of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Conceptual Framework
2.1.1 Concept of Packaging
2.1.2 The History of Packaging
2.1.3 Influence of the Graphical Aspect on
Consumer Choice
2.1.4 The Influence of the Dimensions (Shape and
Design) on Consumer Choice
2.1.5 The Influence of Product Information
(Labeling) on Consumer Choice
2.2 Theoretical Framework
2.2.1 Consumer Buying Behaviour Theory
2.3 Empirical Review
2.4 Summary
of Literature Review
CHAPTER THREE
METHODOLOGY
3.1 Research Design
3.2 Study Area
3.3 Population of the study
3.4 Sample
Size Determination
3.5 Sample Size and Sampling technique
3.6 Data collection Method
3.7 Data Analysis Method
3.7.1 Model
Specification
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Demographic
Profile of the Consumers
4.2 Cadbury
Nigeria Products Patronized
4.3 Colour and Artwork as a Component of Packaging
4.4 Shape and Size as a Component of Packaging
4.5 Label as a Component of Packaging
4.6 Wrapper as a Component of Packaging
4.7 Text-Font as a Component of Packaging
4.8 Influence of Consumer Preference
4.9 Effect
of Package Graphics (Colour and Artwork Design) on Consumer Preference
4.10 Effect
of Package Dimensions (Shape
and Size) on Consumer Preference
4.12 Effect
of Package Wrapper
on Consumer Preference
4.13 Effect
of Text-Font on Consumer Preference
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary
of Findings
5.2 Conclusion
5.3 Recommendations
References
CHAPTER ONE
INTRODUCTION
1.1 Background of the
Study
In
modern time marketing, if
packaging does not sell a product, it is as good as worthless. Packaging has become itself a sales promotion tool for
organizations. The consumer’s buying behavior is also stimulated by the
packaging quality, color, wrapper, and other attributes 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.
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, packaging impacts 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 and
stimulates customers buying behavior (Wells, Farley & Armstrong, 2007).
Thus, packaging performs an important role in marketing and communications and
could be treated as one of the most important factor influencing consumer’s preference of purchase. According to Rundh (2005), packaging appeals to consumer’s
attentiveness towards a certain brand, increases its image, and stimulates
consumer’s perceptions about product.
Cadbury
Nigeria Plc is the leading company in Nigeria in confectionary, food drinks,
and foods whose quality brands and products are available and enjoyed in all 36
states of the nation and Federal Capital Territory as well as in export market
around the world (Adeolu et al., 2005). Cadbury Nigeria Plc engages in the food
processing business. Its major product lines consist of food drinks, sugar
confectionery chocolate and seasoning cubes (Cadbury Nigeria Plc Annual Report,
2009).
Cadbury’s
flagship brand, Bournvita is, no doubt, in a competitive environment with other
brands such as Milo, Vitalo, Ovaltine, Nescafe, Toptea, Lipton and other cheaper
local brands all of them striving to increase their market share through
varying marketing strategies such as sales promotion (such as packaging and so
on), personal selling and provision of point-of-sale materials such as
T-shirts, Cups. Posters, Shelf strips etc to stir, attract and retain more
consumers of their products (Adeolu et al., 2005).
Cadbury
Nigeria also developed other product categories, most notably Candy. Introduced
in 1970, TomTom - the big, black and white sweet for soothing relief which has
sustained market leadership for over 40 years, remains the most iconic brand in
the Nigerian Candy market. It now comes in three variants: Classic, HoneyLemon
and Strawberry (Ozuru et al., 2014). The other brand in the company’s Candy
portfolio is Trebor Buttermint, the delicious sweet with the double pleasure of
butter and mint. In 2012, the company expanded its product categories in
Nigeria when it launched Tang, the global leader in powdered beverages (Ozuru
et al., 2014).
In
view of this, effective communication between the firm and the market place
through packaging stressing product benefits and brilliant brand management are
sure ways of increasing market share, maintaining market leadership and
creating brand loyal behaviour in their consumers.
1.2 Statement of the 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, text font of product packaging affect a consumer’s behaviour and
tilt his or her preference for such 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 satisfied with the product, thus, leading to
success and profitability of the firm.
The
consumer’s preference is affected if those elements of packaging are lacking or
inadequate. 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 (lyoyd, 2003). According
to Brassing and Pettit (2003) packaging is a method of communicating products
information, both product and brand character to the consumer.
It
appears that many firms do not appreciate the important role of packaging in
customer attraction and retention, and by extension company profitability. Many
companies fail to conduct exhaustive research to determine what appeals to the
consumer among attributes of product package. This may consequently lead to
wrong choice of design, color, text font, wrapper, shape, size and others. 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. To this end, this study aims at examining
the effect of product packaging on consumer preference.
1.3 Objective of the Study
The
main objective of this study is to examine the effect of product packaging on
consumer preference, a study of Cadbury Nigeria Plc., Aba, Abia state, Nigeria. The specific
objectives are to:
1.
examine the effect of package
graphics (colour and artwork design) on consumer preference in the study area;
2.
analyze the effect of package
dimensions (shape and size) on consumer preference in the study area;
3.
measure the effect of the
information a package bears on consumer preference in the study area;
4.
ascertain the effect of the
package wrapper on consumer preference in the study area;
5.
determine the effect of the
text font on consumer preference in the study area.
1.4 Research Questions
1.
What is the effect of package graphics (colour and artwork design) on
consumer preference?
2.
What is the effect of package
dimensions (shape and size) on consumer preference in the study?
3.
What is the effect of the
information a package bears on consumer preference in the study area?
4.
What is the effect of the
package wrapper on consumer preference in the study area?
5.
What is the effect of the text
font on consumer preference in the study area?
1.5 Research
Hypothesis
H01: There is no significant relationship between package graphics
(colour and artwork design) and consumer preference in the study area.
H02: There is no significant relationship between package dimensions
(shape and size) and consumer preference in the study area.
H03: There is no significant relationship between the information a
package bears and consumer preference in the study area.
H04: There is no significant relationship between the package wrapper
and consumer preference in the study area.
H05: There is no significant relationship
between text font and consumer preference in the study area.
1.6 Significance
of the Study
This
study would be a useful and beneficial tool for all FMCG (fast moving consumer
goods) companies which are conscious about their image and want to survive in
the competitive market of FMCG industry. The companies will get advantage from
this study by identifying the preference of consumers towards any products and
will apply different tools and strategies to capture the large Market share
because the results of this study will make them well aware about all the
factors that attract consumers and their preferences.
The study will add to knowledge of existing
literatures on product packaging and consumer’s preference and it will help
researcher and scholars with relevant materials for further research and
knowledge on the subject matter.
1.7 Scope
of the Study
This
study is concerned with the effect of product packaging on consumer preference.
The study will be primarily carried
out in Cadbury Nigeria Plc, Aba, Abia state, Nigeria.
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