The Effect Of Packaging On Consumer Buying Decision

ABSTRACT

The project examines the effect of packaging on consumer buying behaviour with reference to Unilever Company. The study main objective is to know the impact of product packaging on consumer buying decision and also to know whether consumer rely on product packaging in necessary information concerning the use of the product. The primary source of data collection was used in gathering data from respondents. A structure questionnaire was designed by the researcher and validity by two experts from the statistics department was used to obtain data Chi-Square (X2) was used to test hypotheses formulated. It was discovered that package can attract with simple readable message about the product. The study concludes that cost of production has been as problem in production but, packaging without a quality, proper pricing, appropriate advertising and sound marketing plan is of little value. And recommends amongst others that they should be locked at as profit building of sales innovation rather than a cost cutting tool. In this sense, producer of omo should manage it and improve on their package design and package materials for the products.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

The importance of packaging goods in product marketing has made it indispensable despite the high cost.

A package keep a product intact to final consumer package is very important even for perishable goods such as tomatoes. The importance of packaging can not be over emphasized, especially when one consider the severed function it performs in consumer attraction and satisfactions. The detergent industries represent a typical example of an important in the purchase decision. The package can be designed in such a way to attract attention in the shelves of supermarkets or stores.

Excellently designed packages are directly translated into difference in sales appeal. The study will examine the effect of packaging on consumer buying decision.

1.2     STATEMENT OF RESEARCH PROBLEM

Packaging is a very important element in marketing the product especially in the detergent industry.

The strategies importance of packaging has been in area of improving the product performance. Despite the indispensable value of packaging. The research is faced with the problem of knowing why money products are sold unpacked or poorly packed in our markets

1.3     OBJECTIVE OF THE STUDY

The objectives of this study work (study) are as follow;

1.                To know the impact of product packaging on consumer buying decision.

2.                To find out the effect of packaging on the total profit of the company.

3.                To identify what variable the consumer refers most in packaging in term of shape, size and colour.

4.                To know whether consumer rely on product packaging in necessary information concerning the use of the product.

5.                To study the strategies areas of information in designing product packaging.

6.                To understand consumer behaviour with regards to a product package. Packaging of product provide source of guide for the consumer in purchase process.

1.4     RESEARCH QUESTIONS

Having sported the problems of study, remedies lies on how the research works of those question that affect the packaging of “OMO”.

a.                 How does packaging affecting consumer buying decision.

b.                 To what extent is packaging of a product important as a means of identification that companies have adhered to?

c.                  To what extent can packaging help a company to achiever her profit sale goods.

d.                 What are those intrinsic value consumer preferred most in package?

e.                  Do consumer rely on product package for necessary information about the products content and usage.

f.                   How does the packaging of product protect it from damage in shipping and spoiled in storage?

1.5     STATEMENT OF HYPOTHESIS

Hypothesis One

Ho:   A good package does not affects consumer buying decision.

HI:    A good package affect consumer buying decision.

Hypothesis Two

Ho:   Package does not quickly identify the product by using trade name or trademark.

HI:    Package quickly identify the product by using trade name or trademark.

Hypothesis Three

Ho:    A good package does not creates impact on consumer buying decision.

HI:     A good package creates impact on consumer buying decision.

Hypothesis Four

Ho:    A good product does not necessary concern the information of product.

HI:     A good product is necessary concern the information of product.

1.6     SIGNIFICANCE OF STUDY

The importance of packaging and it effect on the consumer can not be over emphasized. One thing is for a company to invest so much on packaging and another thing is to receive the returns in increase sales due to user and so on.

Therefore researcher intends to identify and highlight those factors that are necessary in soap package design and their effect on consumer buying decision.

On completion of this study, the report would be of immense value to detergent company and researcher in the field.

1.7     SCOPE OF THE STUDY

The study shall dive into the impact of packaging on buying decision in the attainment of sales profit quotes and the impact of packaging goods. A case study of omo product of Unilever Nigeria Plc.

1.8     LIMITATIONS OF THE STUDY

Due to the shortness of time and limited period allocation for the writing of the project, the researcher could not thoroughly carryout a more detailed and elaborate work.

Beside, continued lecture, assignment and test did not make it an easier task.

Finance is another limiting factor which hindered and travelling to universities and polytechnics, in search for effective work.

Absence of current published materials, such as journal and publication related to the effect of the research.

With all these put together, there was no way the research could escape any of this project work. Nevertheless, the best was still put in place in using the available materials.

1.9     OPERATIONAL DEFINITION OF TERMS 

The following words are some of the terms used in this project work.

Packaging: This can be seen as a process designing and producing a container or a wrapper for a product.

Consumer: These are individuals who purchase or buy product or goods and service for personal use or household use.

Wrapper: Design the out line from which the container may be made.

Mass Marketing: This is the major portion of the population made up of a large number of usually middle class and working class.

Data Analysis: This is the selection of the instrument you need to carryout research by separating into part and interpreting figures.

Brand: This is the name or mark intended to identify a product of one seller or groups of seller and differentials product from competing products or competitors.

Labelling: This is the part of product that carries information about the product.

Price: This is the value agreed upon by the member in the exchange processes. It is a means that allows product and services to get value in the eye of both buyer and sellers.

Promotion: This can be seen as one of the market mix (4ps) that communicate with individuals or groups or organization directly or indirectly to facilitate exchange by influencing audience, member to accept an organization product.

Product: A product is any thing favourable and unfavourable, tangible or intangible attraction, attractors acquisition use or consumption that includes packaging colour, price, manufacturer, and retailer.

Trade Mark: This is a legal designation indicating that the owner has exclusive use of brand or part of a brand and that law from using it prohibits others.

Trade Name: This is selecting a legal name of an organization rather than the name of a specific product i.e, the name under which a company operates.

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