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The Effect of New Package Design On Prod
The Effect of New Package Design On Prod
N
ELSEVIER Journal of EconomicPsychology 18 (1997) 271-287
Abstract
1. Introduction
Thirty years ago, WRrneryd and Nowak (1967) published a book on mass
communication and advertising. In that book, the authors described the most
important aspects of the mass communication process and the role of psycholog-
ical aspects underlying the effectiveness of mass-media advertising. Much of the
contents of that book is still valid to date. However, with growing marketing
knowledge and changing consumer behavior, the central and leading role of
mass-media advertising within marketing communications appears to have
changed. One of the things we have learned since W~rneryd and Nowak (1967)
is that despite manufacturers' and resellers' large scale attempts of preselling
products and services to consumers through mass-media advertising, many
purchases are influenced to a significant degree by the store environment (e.g.,
Solomon, 1996). About two-thirds of all supermarket purchases have been
reported to be decided upon when consumers are actually in the store. Of
department store purchases, about 39% go unplanned and are probably influ-
enced by in-store marketing stimuli (Weinberg and Gottwald, 1982). In some
product categories, the proportion of unplanned purchases is even higher: Meyer
(1988) reports 85% for gum and candy, 75% for oral-hygiene purchases, and
about 70% for cosmetics. In this light it is not surprising that next to the role of
mass-media advertising, there is an increasing attention for the role of point-of-
purchase marketing stimuli as attempts to inform and persuade consumers.
Several processes may underlie the relative large influence of in-store market-
ing instruments on consumer decision making. Being unfamiliar with a store's
layout or being under time pressure affects the proportion of unplanned pur-
chases (Iyer, 1989). In addition, about one-third of unplanned buying has been
attributed to consumers' recognition of new needs while they were shopping
(Park et al., 1989). Also, impulse buying occurs (Rook, 1987), but buying on
impulse does not necessarily constitute 'bad' or irrational behavior (Rook and
Fisher, 1995). Finally, it appears that individuals differ in the extent to which
they plan their purchases (Cobb and Hoyer, 1986; Iyer and Ahlawat, 1987).
One of the in-store-marketing instruments is the product itself, and in the case
of many fast-moving consumer goods, it is the product as packaged. Firms
spend more money on packaging than on advertising and packaging is often the
most distinguished marketing effort (Dickson, 1994). Next to a number of
technical functions like protection of the contents and facilitating distribution,
packaging performs several communication functions. These are, for instance,
brand and product identification, price information and information on ingredi-
ents and product use. However, one can question the effectiveness of packaging
J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287 273
Hypothesis 1: The more a package redesign deviates from the existing package
design in a product category, the more product attention will be induced.
Peracchio (1995) show that full-color ads may impair the information processing
of other ad elements. Another negative effect can occur because the information
provided to the consumer is discrepant with information already available in
long-term memory. Typically, such problems arise in marketing when con-
sumers confront new products they have never seen before. To explain con-
sumers' reactions to such products, researchers have relied on categorization
processes to drive information processing and evaluation formation.
Categorization is the process by which individuals respond to the variety and
newness of information in their environment (Rosch, 1978). Individuals group
objects and events on the basis of perceived similarity and resemblance. The
outcome of this process is the storage of information into categories. A newly
formed category functions as a framework of knowledge by which individuals
analyze new information. Or, as Cohen and Basu (1987) state, "categorization,
in essence, involves comparison between a target and categorical knowledge."
They consider categorization a fundamental cognitive activity encompassing all
forms of stimulus situations. The consumer and economic psychology literatures
widely recognize that consumers categorize products and use so-called products
categories (e.g., Bloem and Groenland, 1995). Categorization enhances informa-
tion processing efficiency as well as cognitive stability. The categorization of
knowledge allows us to identify novel items or events, respond to them in terms
of class membership rather than their often irrelevant uniqueness, draw infer-
ences about features, and make causal or evaluative judgments. It is also for
such reasons that categorization theory is important in studying consumer
responses to new products. To understand the relationship between categoriza-
tion processes and the evaluation of new products, we first discuss how new
information about stimuli in general is categorized.
Several studies have found that the degree to which information is discrepant
from category expectations affects information processing strategies. For exam-
ple, Mervin and Rosch (1981) show that individuals categorize less representa-
tive members of a category less accurately. Research also shows that the more
typical a stimulus is, the more quickly people respond to the question whether it
belongs to a certain category (Snelders et al., 1992). This time effect is
explained by the idea that more typical stimuli elucidate the strongest associa-
tions with a category, and therefore are retrieved from memory most quickly
(Rosch, 1978).
The literature has shown several distinct effects of product categorization on
consumer preference, one of which is that typicality strongly relates to prefer-
ence. Hekkert and Snelders (1995) discuss the literature on 'preference for
prototypes' by referring to Whitfield and Slatter (1979), who report evidence for
J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287 277
the effect in several studies. More specifically, consumers prefer those products
that are most typical for a product category (Barnes and Ward, 1995; Barsalou,
1985; Loken and Ward, 1990; Nedungadi and Hutchinson, 1985). According to
Alba and Hutchinson (1987), consumers will choose a typical product in
situations where they are insufficiently motivated to compare brands. They rely
on their product knowledge and choose the typical brand, which is easier to
recall. Other explanations for the typicality or preference effect reside in the idea
that a more typical product is also better known (Loken and Ward, 1990). A
second idea is that the best product will become the prototype in the market. The
best product according to Barsalou (1985) is the product that best fits the goal
that the consumer has in mind when using the product. According to Ward and
Loken (1987), the best product is the product with the best set of salient
attributes. Some studies, however, show important exceptions to the typicality or
preference relationship. Ward and Loken (1987) found that consumers seeking
variety, prestige or scarcity negatively valued typicality. In such cases, product
uniqueness instead of product typicality will drive consumer preference.
Studies that focus on the way in which consumers evaluate new or discrepant
stimuli show that the categorization construct can give insight in how consumers
process new product information. Consumers can use different strategies to
categorize (discrepant) information. First, they can try to assimilate the new
stimulus into an existing category. Assimilation can occur only when a stimulus
is perceived to be more or less consistent with expectations and contains only
mildly discrepant information. Other strategies are subtyping, the process of
creating a subcategory, and the strategy of forming a new category. These two
strategies occur when the level of discrepancy in the stimulus is high. According
to Rosch (1978), the time needed to categorize stimuli and the uncertainty
experienced are related to the methods that individuals choose for handling the
information displayed by or inferred from (discrepant) stimuli. Mervin and
Rosch (1981) show that in those cases where new information is mildly
discrepant and so can be assimilated within an existing category, speed of
processing and experienced certainty are high relative to those instances where
new information is very discrepant.
Ozanne et al. (1992) studied the effect of different degrees of discrepancy on
time used to categorize stimuli and experienced uncertainty. They used verbal
product descriptions as stimuli. Their results show an N-shaped relationship
between the time spent on searching stimulus information and the degree of
stimulus discrepancy. A similar effect was found between the experienced
uncertainty and the degree of discrepancy of the stimulus. These effects occur
because new information that is congruent with existing category expectations
278 J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287
2. Method
In the study reported below, 144 female respondents participated. They were
selected from the departmental Product Evaluation Laboratory research panel
that consists of 791 households from the Delft neighborhood. Members of this
panel have volunteered to regularly participate in scientific research. Their ages
varied from 25 to 82, with a mean age of 47.5 years. The investigation took 40
to 50 minutes, and the participants received a compensation of Dfl. 12.50. The
present study was part of a larger research study involving several evaluation
studies of consumer goods. Through their previous participation, all respondents
were familiar with this multiresearch setting.
Participants took part individually and completed two main tasks, an evalua-
tion task and a typicality task. Task order varied randomly among the partici-
pants. During the evaluation task, they completed a questionnaire with the
standard coffee package in front of them. At a certain point in that question-
naire, they were to request a new package (one of the experimental packages,
see below) from the research assistant and evaluate that package in the remain-
der of the questionnaire. In the typicality task, participants saw all experimental
packages. They indicated the least deviating and the most deviating packages as
compared to the standard package. Both packages were then placed opposite
each other on a large table thus forming the anchors of a deviation scale.
Participants then placed the other packages between both anchors at distances
that represented the extent of deviation from the standard package. Next, they
used a cardboard arrow to indicate the line of demarcation between packages
280 J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287
that they still considered to belong to the category of acceptable coffee packages
and those that were unacceptable. Participants also expressed these differences
numerically in distances from the standard package. Finally, the packages were
presented to the participants in random order, and they rank ordered those on
personal preference.
To check participants' ideas about the goals of the study, all participants
evaluated the research study with a research assistant before they left the
laboratory. They received a written debriefing stating the research goals and the
rationalization of the procedure used, and an envelope containing their monetary
compensation.
Originally, the experiment also contained a third condition of form, namely strong deviation as represented
by a pyramid-shaped package. Over three-quarters of the participants indicated that this package was
completely unacceptable to them. This condition was subsequently dropped, thus reducing the sample by
one-third (N = 96).
J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287 281
All analyses reported below included only those participants who indicated on
the postexperimental questionnaire that they were familiar with the brand under
study and that they had bought this brand in the past. 2 In the postexperimental
questionnaire participants gave their subjective impressions of the experimental
conditions to which they were exposed. Five-point rating scales assessed both
participants' perceptions of the form and color deviations in the experiment in a
'totally disagree-totally agree' format. They indicated their agreement with the
item "The form (for the other item: color) of the new package resembles that of
the old package." A one-way analysis of variance showed a significant effect
for color (F(2,92) = 13.7, p < 0.0001); a t-test showed a significant effect for
form (t(62) = 11.0, p < 0.001) (see Table 1). The entries in Table 1 show that
the standard packaging form and color are evaluated as closely resembling those
Table 1
Subjective experiences of experimental manipulations
Standard Moderate deviation Strong deviation
New form resembles old one 4.61 (0.96) 1.75 (1,08) NA
New color resembles old one 3.64 (1.50) 3.48 (1,27) 2.26 (1.56)
Entries are means on a scale from '1' 'totally disagree' to '5' "totally agree'. Standard deviations are within
parentheses. NA means not applicable.
of the old package. The evaluation of the moderate and strong deviations
indicate perceived dissimilarity with the original package. These results show
that the manipulations of form and color have been successful in that they
induced the intended subjective experiences in the participants.
3 Two outliers were detected that distorted the solutions for the regression equations, and were subsequently
removed from the analyses.
J.P.L. Schoorrnans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287 283
Attention
-1"
Evaluation
-2"
-3
-2 -1' 0 1'
Fig. 1. The impact of package deviation on attention aroused and package evaluation. Note: All scores are
Z-scores.
evaluation of the package. The negative sign for the coefficient for the squared
evaluation shows that the curve is indeed a hyperbola. This result supports
Hypothesis 2.
Fig. 1 shows the empirically established effects after standardization of all
variables. Attention appears to rise monotonically with increasing deviation,
suggesting further support for Meyers-Levy and Tybout's (1989) findings. Like
Ozanne et al. (1992) found and predicted, evaluation is curvilinearly related to
increasing deviation, and the evaluation of a new stimulus is optimal given a
moderate deviation (point A in Fig. 1). These effects show the positive value of
changing a package's appearance. The increased attention may enter the brand
into an individual's attention set, whereas the positive evaluation may lead the
brand into the consideration set. Both these effects perform necessary functions
in the hierarchy of consumer choice (Roberts and Lattin, 1991). Between points
A and B in Fig. 1 we witness the onset of the differential influence of increasing
deviation on attention and evaluation. Attention rises linearly with the package's
deviation but evaluation starts to decrease. The area beyond point B suggests
that there is a trade-off between increased attention and a diminishing evaluation
of the brand. Here, it is relevant what the goals are that a manufacturer wants to
achieve. From the point where both effects intersect onwards, the attention value
of the increasing deviation still increases, but the evaluation of that deviation
284 J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287
may diminish below the starting evaluation of the standard package. 4 In that
case, a negative condition occurs in which consumers may be aware of the
package but have a negative attitude towards it.
4 There was a significant effect of task order on the evaluation of the package. The evaluation results
reported for the analysis of Hypothesis 2 and in Fig. 1 were less pronounced for participants who first did the
typicality task. However, the general picture did stay the same. We think this effect occurred because having
viewed all experimental packages diminished the extremity of the experimental package in the subsequent
evaluation task. Participants were already familiar with that stimulus, so there was a smaller probability of an
extreme evaluation.
J.P.L. Schoormans, H.S.J. Robben / Journal of Economic Psychology 18 (1997) 271-287 285
Acknowledgements
We would like to thank Marja Bakker and Irene Herbers for their help in
carrying out the reported research, and an anonymous reviewer for helpful and
stimulating comments.
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