The Study of Impact of Packaging On Consumer Buying Behaviour (VS)

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CONTENTS PAGE NO.

Chapter one

1.1 Introduction.................................................................................................................8
1.2 Background of the Study…………………………………………………………………………………. 9
1.3 Problem Statement…………………………………………………………………………………………. 9
1.4 Research Objectives………………………………………………………………………………………… 9
1.5 Rational of the study...................................................................................................10
1.6 Objectives of the Study...............................................................................................10
1.7 Justification.................................................................................................................10
1.8 Limitations..................................................................................................................10
1.9 Scope..........................................................................................................................10
1.10 Significance of the study.............................................................................................10

Chapter Two

2.0 Literature Review....................................................................................................... 11


2.1 Literature Review Underpinning Study...................................................................... 11
2.2 Empirical Review.........................................................................................................15
2.3 Theoretical Framework..............................................................................................16
2.3 Theory of packaging…...............................................................................................17-24
Chapter Three

3.0 Methodology & Design..............................................................................................25


3.1 Introduction..............................................................................................................25
3.2 Research Approach;..................................................................................................25
Qualitative and Quantitative Research
3.3 Sampling Frame........................................................................................................26-29

Chapter Four

4.0 Presentation of Findings...........................................................................................30


4.1 Presentation of Qualitative or quantitative Findings................................................ 30
Chapter Five

5.0 Analysis of Data........................................................................................................ 31


5.1 Analysis of Overall Findings...................................................................................... 32
Chapter Six

6.0 Conclusion and Recommendations..........................................................................33


6.1 Conclusion and Recommendations.........................................................................34
7.0 References...............................................................................................................35

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8.0 Appendixes............................................................................................................... 36-41

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Analyzing the impact of Packaging on Consumer Buying Behavior

Chapter One

1.0 Introduction

A product is a combination of tangible and intangible goods and services offered to a customer for
sale. It is any idea, method, information, service or object created as a result of a process and serves
a need or satisfies a want. Consumers are very fond of new products and services which will satisfy
their needs and fulfill their demands according to this attitude of consumer‟s they attract towards
any product or services. We can easily identify the consumers‟ buying behavior towards any product
or services by seeing: How the consumer attracts towards any product? Is the given product or
service satisfying the consumer‟s demand and how will the consumer‟s react towards any
product/services? What is the perception of the consumers about the product or services offered by a
company? How much the product or services is recognizable among the consumers? How much
they give preference to the product or services offer by any company. Product is made up from the
mixture of different elements; Quality, Protect ability, fulfilling the needs of consumer‟s and also
the packaging‟s which will enhance the product‟s existence and build a strong image in the
consumer‟s mind. Packaging plays a vital role in attracting consumers towards any product.
Packaging is also used as the promotional tool for the companies and it includes; colour, material,
designs & other characteristics. Packaging is the overall package offer by the company to its
consumers and stimulates the impulse buying behaviour. Packaging attracts consumers and increases
its sale. It also reduces the marketing and advertisement cost of the product. Companies now are
more focused on the product packaging as there is a tough competition among all FMGC products.
For example in Zambia we have seen how Trade Kings Zambia Limited has become the largest
FMGC manufacturer in Zambia and one of the major manufacturers in the region. Trade Kings
Zambia Limited produces high quality detergents/laundry products (Liquid, pastes and powders,
soaps) sweets, lollipops confectionary, soya nuggets, drinks, water (vatra), snacks, biscuits and
beverages. They distribute products throughout Zambia and Sub Saharan region. Researches has
shown that there is a disagreement between packaging quality and consumers buying behaviour.
Consumer is very fond of new thing which attract them and the thing consumers hit at first is its
attractive packing. Many researches focus on the elements of Packaging, colour, material and other
packaging materials which have the impact on the purchasing intentions of the consumers. Features
and components of packaging is also focused in this research to develop hypothesis and to identify
the true reality and perception behind the buying intentions of consumers towards FMCG products.

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1.2 Background of the study

The role of packaging has changed due to increasing self- service and changing consumers‟ lifestyle.
Packaging can be defined as the container which is necessary to convey a product to the ultimate
consumer, as contrasted with packing (cartons, crates, etc.) that is required for bulk shipment. Also,
packaging is the art of enclosing or protecting products for distribution, storage, sale which is bought
by the consumer.

A lot of firms in the industry have embarked on one strategy or the other in order to gain more
market share for their products. In an attempt to get more customers to purchase their products,
companies have engaged in different innovations so as to make their product compete with that of
competitors, the packaging form is one way to gain consumer notice. Organizations now engage in
good packaging and repackaging of their product making it difficult for consumers to make
choices among different competing product.

1.3 Problem Statement

The problem statement of this research is to identify the impact of packaging on consumer behavior.
These days a huge number of businesses are engaged in serious efforts to attract the customer
through the attractive packaging.

This research project will attempt to answer the following questions;

i. What impact does product attractiveness have at stimulating consumer interest in a product?

ii. What influence does product differentiation have on consumer evaluation of the product?

iii. What effect does labeling has at creating consumer awareness of the product?

1.4 Research Objectives

In the past studies have been made on specified and common elements of packaging. In this
research it is also going to be ascertained how changes in the packaging of products can also
change the buying behavior of consumers and also identify most important aesthetical factors of
packaging that attracts the consumers to purchase the particular product. Therefore this empirical
study will be helpful for marketers to regard these findings and also in the implementation of this
plan, creating and choosing appropriate design factors and characteristics for their packaging of
product.

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1.5. Rationale of the study

In this research paper data have been gathered about the impact of packaging on consumer buying
behavior. This research has filled the gap by encompassing all the possible and generally accepted
packaging elements which includes the variables of packaging. This, therefore, is a comprehensive
report, which determine also that change in product packaging changes consumer buying pattern and
preference.

1.6 Objectives of Study

The following are the objective of the study.

• To identify the packaging impact on the consumers buying decision.

• To find out the impact of the packaging elements on the consumers purchasing behaviour.

• To measure the role of each packaging element on the consumer.

• To identify the elements of packaging, which should be highlighted to attract consumers.

1.7 Justification

The research on “The Impact of Product Packaging on Consumer‟s Buying Behaviour” is a useful
tool for all FMCG 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 research by
identifying the buying behaviour of the consumer‟s towards products and will apply different
tools and strategies to capture the large Market share because after having the results of this
research they are well aware about all factors that attract consumer‟s and their buying behaviours.

1.8 Limitations

Limitations refer to the circumstances/conditions/settings the result will be applicable and what
are the reasons of these limitations. By keeping in mind these things it is clear that this research is
applicable in all FMCG companies in the world especially Zambia as the sample population is the
Zambian consumers.

1.9 Scope

There is a wide scope of the research on “Impact of Product Packaging on Consumer‟s Buying
behaviour” in Zambia because in today‟s competitive world of goods and services provider companies
and industries, they want to get success and maintain their market presence for a long terms and if
they understand the buying intentions of consumers by using the product packaging as a key element
then they can easily maintain themselves according to the current demands, wants and

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consumer‟s preference and attractions towards a particular brands by establishing new strategies
by understanding the importance of each factor of packaging‟s.

1.10 Significance of the study

Packaging directly affects consumer behavior and their intention to purchase. This research plays
a vital role in brand development and increases the sales and profitability of the company. This
research is also helpful for the brand manager in the development and management of the brand.
The purpose of this paper is based on analyzing of package elements and their impact on
consumer‟s buying decision/behavior in case of different products.

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Chapter Two

2.0. Literature Review

Overview of Literature

There were several studies that served as a source of inspiration & starting point for the current
study. The literature reviews related to various packaging elements namely. Role of packaging on
consumer buying behavior is dependent (consumer buying behavior) and independent variable
(color, image, material, front size) those factors are predictors to promote the sales volume and
gradually increase impulse buying. The literature reviews are discussed Packaging element wise.

2.1 Literature Review underpinning study

Concepts of Consumer Behaviour

Consumer Behaviour has to deal with the ability of consumer to meet their needs and demand.
Behavior has been identified as a toll to achieve objectives and target consumer derives from
his needs and desires. The Key concepts of consumer behavior as captured by other scholars are
discussed under the following sub-sections:

Consumer Behaviour include many activities: All consumers have differences in terms of
thoughts, feelings, and decisions with each other. Marketers must pay attention to the activities of
consumers, some consumers activities are; See this advertisement, purchase decision, the
decision about how to pay (cash, credit).

Consumer Behaviour at different times has different complexity: Buy different product by
different people has different implications. Buy some good, involves all there – process step of the
consumer behavior, while buying some good (goods that are consumed regularly) is very simple and
does not require multiple steps. Customers try to make buying process simple through trusting
others, loyalty to the brand.

Consumer behavior includes different roles: Consumers in different time can play each of the
three roles affective, buyers and consumer. When we buy something for our self we can play that
role. Sometimes by using others opinion buy something for some one that in this case we can play
an individual role.

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Consumer behavior is influenced by external factors: Consumer behavior is influenced by many
external factors such as culture, subculture and social classes located. These effects can be short,
medium or long term.

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Consumer purchases are influenced strongly by Cultural, Social, Personal and
Psychological characteristics;

Cultural Social Personal Psychological Buyer

Culture Reference groups Age and life- Motivation


Cycle stage Perception
Family
Subculture Occupation Learning
Economic situation Beliefs and
Social Class Lifestyle attitudes
Roles & status
Personality and
self-concept

Cultural factors

Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to
understand the role played by the buyer‟s culture, subculture and social class.

Culture – It is the basic cause of a person‟s want‟s and behaviour. Human behaviour is largely
learned. Growing up in society, a child learns basic values, perceptions, wants and behaviour‟s
from the family and other important institutions. A child in Zambia normally learns or is exposed to
the following values: achievement and success, activity and involvement, efficiency and
practicality, progress, material comfort, individualism, freedom, humanitarianism, youthfulness and
fitness. Every group in society has a culture, and culture influences on buying behaviour. Trade
Kings Zambia Limited is always trying to spot cultural shifts in order to discover new products that
might be wanted by their customers. For example a cultural shift toward greater concern about
laundry washing and bathing soaps has created a huge industry for laundry services and also in
household use.

Subculture – Each culture contains smaller subcultures, or groups of people with shared value
systems based on common life experiences and situations. Subcultures include nationalities,
religions, racial groups and geographic regions. Many subculture make up important market
segments, and marketers often design products and marketing programmes tailored to their needs.

Consumer behavior is different in different people: Because people have different desires and
needs, so their behavior is different and the difference consumer behavior make predict
consumer behavior more difficult, to resolve this problem on categories of the market.

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On another end, Packaging has been one of the most important elements that convince consumer to
purchase the particular product. According to Ahmed et al (2014) packaging portrays the
knowledge about the product and has great impact on consumer buying behavior. According the
(Kotler et al. 1998) the primary objective of packaging was ignored in the past but this concept was
now changing.

Packaging is the technology of enclosing or protecting products for distribution, storage, sale,
and use. Packaging also refers to the process of design, evaluation, and production of packages.
Packaging can be described as a coordinated system of preparing goods for transport, warehousing,
logistics, sale, and end use. Packaging has become itself a sales advancement tool for the
organizations. The consumers‟ buying behavior also encouraged by the packaging quality, color,
wrapper, and other types of packaging. In the Marketing environment packaging is been used as a
tools for promotional activities and attracting customers and communicating the product to the
consumers, Consumers often look at the packaging of the products as an aid in the purchase
decision making process.

According to (Ulrich R. Orth, 2009) Packaging has a confirmed and important influence on the
consumer purchasing decision in a retail environment. Researchers proved that aesthetic aspects
like color, brightness and typography influences where the shopper‟s eyes land on the shelves. The
consumer takes more time to look closely at these products and the packaging, which, in turn,
directly influences whether or not he buys the product or selects another brand. Packaging is the
final opinion of statement between a brand and consumer in the retail environment. For this reason,
the packaging is one of the most important opinions of interaction between the brand and
consumer. Studies show that there is no agreement on overall classification of packaging material
and package elements.

In today‟s market the packaging industry have a steady growth and the utilization of material. It
helps the consumer what they think about the product (Madden et al, 2000). Trade Kings
Zambia Limited is one of the organization that understands the packaging industry.

Packaging plays an important role to change today‟s environment because of tough competition
and it is also related with designing and producing appropriate packaging to the product (Ahmad et
al, 2012). (Garder, 2000) said packaging attracts the consumer. In (2001, underwood) said the
picture on the product is very important it makes a good image of the product on consumer mind.
(Ulrich
R. Orth, 2009) says that packaging is designed to build the brand identity. Strong brands have a
great influence on the consumer‟s mind and as a result, the company works hard to build a
good image of the brand in the eyes of the consumer.

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According to (Philip Kotler K.L. 2009) when product‟s packages is available in more amounts or
redesign it increases the frequency use of the product. According to (Keller, 2009) packaging as a
part of a product strategy, it is noticed when there is a slight difference in the brands; innovative
packaging may be responsible for a competitive advantage.

According to (Nilson and Ostrom 2005) the product packaging design includes the brand name,
color, typography and images, all of which influence how quickly and easily catches the product in
the eye. Packaging has a confirmed and important influence on the consumer purchasing decision
in a retail environment. Researchers proved that the aesthetic aspects like color, brightness and
typography influences where the shopper‟s eyes land on the shelves. The consumer takes more
time to look closely at these products and the packaging, which directly influence on consumer‟s
buying decision. It is the final opinion of statement between a brand and consumer.

Packaging has an enormous part in positioning of products. It characterizes the majority of shopping
occasions by determining the factors in making decisions for purchase. Packaging makes influential
and sole tool in current marketing atmosphere. Sub elements of packaging for example price,
product, place and promotion that works with tools of marketing. We can also consider packaging
as the “silent salesman” because it helps to promote product, differentiates product from rivals. It is
a key part of brand image‟s identification and recognition. It also motivate customer to buy product
through shape, size and color.

2.2 Empirical Review

A unique packaging approach cab be a powerful advantage in drawing consumer‟s attention and
drive impulse purchases, especially with the move to self-service retail format; packaging its
enhances its primary characteristic as “salesman on the shelf” at the point sale. A product‟s package
also has a visual appeal that can be attractive or u or unattractive to customers. This concept has
been thoroughly investigated and researched. A study shows that the visual attributes of a product
that are attractive to a consumer are the distinct shape, colour, orientation, and contrast or size of the
package. Another way companies try to influence consumer purchasing decisions is through the
product packaging design. A product‟s package can become yet another “salesperson” for the
product once it is in stores. As a result, companies are trying to determine how to best use a
product‟s package to communicate with their customers in hopes that it will play a significant role
in a customer‟s decision to buy their product.

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Product attractiveness stimulate consumer interest in a product

In this research it deems that the package can attract the customers‟ attention, communicate the
company‟s name and image, differentiate the brand from competitors, and enhance the
product‟s functionality. Therefore, the package itself acts as a decisive communication tool and
provides consumers with product-related information during the buying decision process. Since
the major task of packaging is to sell the product by attracting attention and to allow the product
to be contained, utilized, and protected it will have a lot of effect on consumer buying decision.

Product differentiation influences consumer evaluation of the product

The label on the package serves as a first line of consumer awareness and is vital to maximize the
efficacy of the product. Labels keep consumers informed, the description of the product help customers
makes an informed decision. It is found in researches that the consumer purchase behavior is affected by
the labelling. A printed label not only carries a brand name but also a source of important information.
The presence of laundry information or products of Trade Kings and other manufacturing companies
may influence the consumers to switch from other laundry products. As the consumers, due to
globalization have become more demanding, therefore, the producers have understood the psychology
of consumers and guide them with practical knowledge to cater for the market and serve the people. So,
consumers can end up making better laundry choices if they value and make use of the labelling.
(Consumer awareness). The consumers with the help of labeling gets to know and understand the
product characteristics, preservation and instructions to facilitate the consumers to make a sound
decision at the time of purchase, hence it carries a great significance.

Labelling creates consumer awareness of a product

Packaging and packaging design has become significant factors in the marketing of diverse
“consumer goods” and has a main role in communicating product benefits to the customer.
Consumers are the key actors in planning and implementing packages. The key issue for packaging
design is to understand and satisfy the consumer. An innovative packaging design can change
product perception and create a new market position. Consumer trial, satisfaction and repeat
purchase, may be a direct function of packaging for many consumer non-durables, and perhaps
some durables as well.

Obviously, attracting the consumer to a trial purchase is insufficient for true product growth and
eventual maturity. Consumers who are frustrated by packages that cannot be easily opened, or
labels, that cannot be read without magnification may opt for brands that have considered the
human condition in their package design.

2.3 Theoretical framework

2.3.1 Theory of Consumer Buying Behaviour

Consumer behavior is the study of purchasing units and exchange processes included in the purchase,
use, and disposal of goods, services and ideas. The Consumer behavior is an activity in which people
engage in actual or potential use of the various products of market including good, services, ideas
and

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the environment of stores. The study consider consumer behavior as “physical, emotional and mental
activities which people are engaged with when choosing, purchasing, using

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and disposing good and services to satisfy their needs and desires” it also defines consumer as a
decision unit who attempts to collect and process information consciously or unconsciously at
present situation and who works for his satisfaction and improvement of his lifestyle.

It is also a process of identifying a core set of connectors within a topic and showing how they fit
together or are related in some way to the subject. The theoretical framework is a foundation for the
parameters, or boundaries of a study. Once these themes are established, researchers can seek
answers to the topical questions, they have developed on broad subjects. With a framework, they
can resist getting off topic by digging into information that has nothing to do with the topic. Often
researchers are curious about broad subjects, but with a theoretical framework they stay tightly
within the theme or topic.

Theory of Packaging

The theoretical analysis of package elements and their impact on consumer‟s purchase decisions
empirically reveal the elements having the ultimate effect on consumer choice. It offers six variables
that must be taken into consideration by producers and designers when creating efficient packages:
form, size, colour, graphics, material and graphics. The research result shows the impact of package
elements on consumer purchase decisions can be stronger.

Packaging includes design and production of container or wrapper for a product. Packaging is the
art, science and industry of preparing goods for transport and sale. A package like of brand is
effect on attitude of customer in relation to product. Packaging elements includes visual elements
and information elements. Visual elements include graphic, form, colour, size and also
information elements including making information, production, country.

Product Packaging also includes all design and manufacturing activities of a container or wrapper for
a product, which have three major duties: protecting the contents of package, providing information
and differentiating the product from other brands via attracting consumer attention. Packaging as art,
science and industry of preparing goods for transport and sales, and as a tool for product
development is a vital component of product which causes its more flexibility and ease f use. Just as
branding, packaging could affect consumers‟ attitudes regarding the product.

Customer satisfaction and loyalty

Loyalty has been viewed in relation to the length of time a customer has been with a provider, the
number of services used and the frequency of service use. A definition of the term loyalty which
incorporates all the dimensions that have been found in the literature should include long term
intentional repurchase of services, high degree of customer preference, customers‟ recommendations

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and advocacy, customers‟ acceptance of price and product use. Thus it is a combination
of cognitive, affective and behavioral loyalty (Lewis and Sourely, 2006).

Meidan (1996) argues that the degree of loyalty in companying can be gauged by “tracking customer
accounts over a defined time period and noting the degree of continuity in patronage”. Bloemeret al.
(1998) define company loyalty as the biased non-random behavioral response (i.e. revisit), expressed
over a period of time, by a decision-making unit with respect to one company out of a set of
organisations, which is a function of psychological decision-making and evaluation process resulting
in brand commitment. Loyalty for business customers has been relatively neglected in research
studies, due to the complexity of decision-making processes by organizational buyers (Lam and
Burton, 2006).

For the organisations, the large corporate market segment provides the possibility for high, volume
rated margins, and it is therefore important to win lead company status as this ensures the largest
slice of the corporate companying business. However, the larger the corporation, the greater the
number of organisations used (Tyler and Stanley, 1999). This means that the competition between
organisations is very high and it is challenging for them to provide high standard service quality to
assure customer loyalty.

Sodurland (2001) says that there are two main categories of loyal customers. The first category is of
loyal customers. Within the loyal category there are satisfied and un-satisfied customers. However,
mere satisfaction is not an essential requirement for loyalty, so satisfied customers do not have to be
loyal but there is a correlation between the satisfied customers and loyal customers.

Sometimes unsatisfied customers are also loyal due to the attachment and commitment with the
supplier. And satisfied customers, if they lose the trust, commitment and attachment with the
suppliers of products and services, they will always defect once a competitor with better quality
products and services comes along. This type of loyalty is sometimes called False Loyalty, the kind
of loyalty in which unsatisfied customers remain loyal to their suppliers despite their unsatisfied
needs. The reason for this false loyalty may be the fact that the customer feels that there are hurdles
and obstacles in their way, stopping them from switching or choosing another supplier. A good
example of such hurdles is switching costs.
In today‟s technologically advanced world and due to arrival of internet, it‟s much more difficult to
retain a customer. They have far more choices, the level of competition is high, and each supplier tries
to attract customers through different packages. Within second a customer can surf the internet and can
check out for better deal. The defection rates are ever on increase. A company with a seemingly
impressive 80% retention rate will lose more than 60% of its customers in the next five to

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ten years (Kim, 2004). By retaining more and more customers, the profits increase
phenomenally and costs are reduced considerably.

The other type of loyalty identified in the companying sector is e-loyalty. In order to enhance
customer loyalty, portals are required to put a stronger emphasis on their customers‟ quality
demands, which are steadily increasing over time due to the growing competition in the internet
industry. In addition, loyalty has been recognized as a key path to long-term profitability (Bauer,
Hammerschmidt and Falk, 2005). The physical separation of the organisation and the customer, and
that of the customer and the market advisor as well as the overall environment of perceived
insecurity from conducting electronic transactions over the Internet provide unique challenges to
online organisations in their effort to identify ways to initiate and develop e-business relationships,
despite these limitations. Organisations should develop a trustworthy relationship on the Internet and
foster customer loyalty (Mukherjee and Nath, 2003).

Determinants of Customer Satisfaction and Loyalty

The following factors are the main factors identified by various scholars to be the most
prominent determinants of customer loyalty as regards the companying sector:

• Perceived Service Quality


A concept which is very closely related with satisfaction and loyalty is perceived quality, and the
differences between these have not always been very clearly defined. They have been used on
occasion in an indistinct manner. In an attempt to clarify the distinction between satisfaction and
perceived quality, Anderson & Sullivan, (1993) consider that satisfaction requires previous
consumption experience and depends on price, whereas quality can be perceived without previous
consumption experience and does not normally depend on price. However in circumstances where
there is little available information or where quality evaluation is difficult, price can be an indicator
of quality. In this sense, Spreng and Mackoy (1996), starting from Oliver‟s (1997, 1999) conceptual
model of service quality and service satisfaction, concluded that these constructs are distinct and
have different determinants. Service quality has been found to have a profound input on customer
satisfaction and loyalty as a whole is defined as the result of the comparison that customers make
between their expectations about a service and their perception of the way the service has been
performed (Caruana, 2002).
Anderson et al, (2007) suggested that when the perceived value was low, customers would be more
inclined to switch to competing businesses in order to increase perceived value, thus contributing to
a decline in loyalty. Technology can't replace effective human interaction. You need to make sure

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that your company's job descriptions, performance measures, compensation systems and training
programs back up your customer strategy-rather than undermine it (Jacob, 2005). The literature

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relating to service management has argued that customer satisfaction is the result of a customer's
perception of value received (Hallowel, 1996). Perceived value is considered a construct that
captures any benefit-sacrifice discrepancy in the same way that disconfirmation does for
variations between expectations and perceived performance. As it is explained perceived service
quality and perceived value have approximately same meaning.

• Customer Satisfaction
The satisfaction is yet another important trait which must be taken into account when shaping the
overall loyalty of the customers towards their service providers. In companies, the customers ask
themselves about the level of the services and decide about the lack of importance given to them
and decide about repurchase behavior after using the services.

The level of satisfaction is always high when the customer is given minimum price and for
maximum of usage and profit (Jamal & Kamal, 2004. Dissatisfaction usually occurs when the
pricing issues are not suiting the needs of the customers. If the customer thinks that the charges are
more than the needs he churns, the customer initially tries to compromise with the company but at
a certain point he decides to defect.

Nowadays, it has become easy to open an account in any other company so the switching cost is
also minimal. All these factors help customers to switch from their current company to another.
The response of customers plays a pivotal role in the overall satisfaction graph of the provider. If a
customer is satisfied, the loyalty injects automatically and the customer remains with their current
providers for a longer and longer period of time (Giese & Cote, 2000).

• Switching Costs
As defined by Jones et al (2002), a switching barrier is any factor that makes it difficult or costly for
customers to change providers. Another brand loyalty determinant is known as switching costs,
which can be defined as the technical, financial or psychological factors which make it difficult or
expensive for a customer to change brand (Shergill & Bing, 2006).

There has been a growing interest in recent years in analyzing the factors influencing customer loyalty.
As a result, there are numerous works in marketing which have attempted to explain the relationships
between brand loyalty and the various variables regarded as antecedents, the most significant of which
are customer satisfaction, and, to a lesser degree, switching costs (Boulding et al., 2003; Kasper, 2005;
Berne´, 2007). For this reason, a switching cost can be seen as a cost that deters customers from
demanding a rival firm‟s brand (Aydin & Ozer, 2005). It can be defined as; „the technical, financial or
psychological factors which make it difficult or expensive for a customer to change brand‟ (Selnes,

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2007). When the costs of switching brand are high for the customer, there is a greater probability that the
customer will remain loyal in terms of repeat purchase behavior, because of the risk or expense

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involved in switching and because of the accompanying decrease in the appeal of other alternatives
(Kon, 2004).
A customer who has collected information in order to decrease his anxiety about a wrong
purchasing decision will use all previous purchase experiences as a basis for current choices.

The discomfort associated with a purchased brand by a customer after a customer has purchased a
product or after having experienced a service is called “post-purchase cognitive dissonance”. In this
process, if the customer were to switch brand, he/she would compare the switched brand and the
previous brand. Barriers to customer defection, such as development of strong interpersonal
relationships or imposition of switching costs, represent additional retention strategies. Such barriers
are important because they may generally foster greater retention and because they may help
companies weather short-term fluctuations in service quality that might otherwise result in defection
(Jones and Mothersbaugh, 2002).

• Trust
Trust has been defined as the willingness to rely on an exchange partner in whom one has
confidence (Moorman et al. 1993) or confidence in an exchange partner‟s reliability and integrity
(Morgan & Hunt 2004). Chaudhuri & Holbrook (2002) define brand trust as the customer‟s
willingness to rely on the ability of the brand to perform its stated function. Trust causes dedication
because it reduces the costs of negotiating agreements (Berry, 2007) and lessens customers‟ fear of
opportunistic behavior by the service provider (Bendapudi & Berry, 1997). In social psychology
trust is considered to consist of two elements: trust in the partner‟s honesty, and trust in the partner‟s
benevolence (Wetzels et al. 1998). Honesty is the belief that a partner stands by his word, while
benevolence is the belief that the partner is interested in the customer‟s welfare, and will not take
actions with negative impact on the customer.
In the marketing literature, Morgan & Hunt (1994) also suggest that brand trust leads to
brand loyalty and commitment because trust creates exchange relationships that are highly
valued.

• Commitment
Commitment is frequently defined as a desire to maintain a relationship (Moorman, Deshpande &
Zaltman 1993; Morgan & Hunt, 1994). Dwyer et al. (1987) describe it as a pledge of continuity, and
Pritchard, Havitz and Howard (1999) as resistance to change. In a conceptualization and study of
employees‟ commitment to an organization, Allen and Meyer (1990) identified three types of
commitment to an organization: affective, continuance and normative. Affective (or emotional)
attachment exists when a strongly committed individual identifies with, is involved in, and enjoys
membership in an organization (Allen & Meyer, 1990).

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Affective commitment is defined as an affective state of mind that is based on a person sharing,
identifying with and internalizing the values of an organization and thereby implies liking and
emotional attachment (Morgan & Hunt, 2004).

Trust in a relationship partner has been positioned as a central factor for customer loyalty (Chaudhuri
& Holbrook, 2002) and is a principal factor causing dedication (Berry, 2007). According to (Beerli,
Martin & Quintana, 2004) the factors which have influenced the customer loyalty in companying
industry have been selected which are; perceived quality, satisfaction and switching cost. Increase in
perceived quality increases the satisfaction and increase in satisfaction increases the perceived
quality. Satisfaction influences the loyalty positively which means that the greater the satisfaction
level of the customers, the greater would be their loyalty towards their respective organisations.

• Brand reputation and Price satisfaction


Researchers have identified corporate brand image and reputation as another driver of customer
loyalty and ultimately profitability. This is because brand image has an important influence on
service quality product and service positioning, marketing, and profitability in the service industry
(Best, 2009). According to Best (2009; p. 250), “a strong brand enhances positive evaluation of a
product‟s quality, maintains a high level of product awareness and provides a consistent image or
brand personality”. Again, these benefits extend to flanker brands though to a limit (Sheinin and
Schmitt, 1994). However the extent of the influence of brand image on customer satisfaction and
loyalty is far from established in the extant literature (Brodie et al., 2009). Whilst the Pan-European
Satisfaction Index (EPSI) rates brand image as an important driver of “perceived value, customer
satisfaction and customer loyalty” (Eskilden et al., 2004; In Faullant et al., 2008), there are divergent
views to this in the literature. In his study of the companying industry, Bloemer et al., (1998) found
an indirect relationship where brand image is mediated by service quality. Again, Kottler et al.,
(1996; In Faullant et al., 2008), in establishing the relationship came out with a path analysis in the
order:

Image Quality Satisfaction Post purchase behavior.

Customers use brand information to assess value (Grewal et al., 2004), and influence customer
evaluations (Rao and Monroe, 1999). This involves a cost benefit analysis to determine perceived
value. The cost side of the equation according to this view includes time and price spent on a
service. The flip side of the equation includes service quality.

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A firm‟s reputation for providing value influences customer perception of value. Perception of value
influences tremendously satisfaction and loyalty. Thus value proposition and provision may be
significant in attaining customer satisfaction and loyalty in the service industry. Recent research by

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Brodie and Cretu (2007) dwelt on brand, image and reputation on customers‟ perception of product and
service quality, customer value, and customer loyalty. Their findings indicate a positive relationship
between brand‟s image on customer perceptions of product and service quality. Again they establish
that company reputation has influence on perceptions of customer value and customer loyalty. In
another development Brodie et al., (2009) tested the influence of brand image, company image,
employee trust, and company trust on customer loyalty. The authors report that with the exception of
company image all the others showed insignificant relationship with customer loyalty.

Competitive pricing is another attribute that is hypothesised to relate to customer loyalty. According
to economic theory, the price level dictates demand in a competitive market. Thus price is an
important influence on product and service acceptance. However perception may neutralise this
view in that customers may accept premium price because of perceived quality, image and loyalty
to a brand. According to Best (2009), acceptable price may not attract customers because of
switching cost and loyalty to a competitor‟s brand. It suggests therefore that the evidence regarding
the relationship between price satisfaction and customer loyalty may be inconclusive. Hence, it is
important to investigate and undertake an analysis of the determinants of customer loyalty that exist
in the Zambian cultural setting.

Model of Consumer Behaviour

Consumers make many buying decisions every day. Most large companies like Trade Kings
research consumer buying decisions in great detail to answer questions about what consumers buy,
where they buy, how much they buy, when they buy, and why they buy. Marketers can study actual
consumer purchasers to find out what they buy, where, and how much. Learning about the whys of
consumers buying behaviour is not so easy – the answers are often locked deep within the
consumer‟s mind. “For companies with billions of Kwachas on the line, the buying decision is the
most crucial part of their enterprise,” states one consumer behaviour analyst. “Yet no one really
knows how the human brain makes that choice”. Often consumers themselves don‟t know exactly
what influences their purchases. Buying decisions are made at an unconscious level, says one of the
analyst. Marketing stimuli consist of the Four P‟s: Product, Price, Place and Promotion. Other
stimuli include major forces and events in the buyer‟s environment: Economic, Technological,
Political and Cultural. All these inputs enter the buyer‟s black box, where they are turned into a set
of observable buyer responses: Product choice, brand choice, dealer choice, purchase timing and
purchase amount.

The marketer wants to understand how the stimuli are changed into responses inside the consumer‟s
black box, which has two parts. First, the buyer‟s characteristics influence how he or she perceives and
reacts to the stimuli. Second, the buyer‟s decision process itself affects the buyer‟s behaviour.

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Marketing & other stimuli Buyer’s black box Buyer responses
Marketing Other
Product Economic Buyer characteristics Product choice
Price Technological Buyer decision process Brand choice
Place Political Dealer choice
Promotion Cultural Purchase timing
Purchase amount

MODEL OF BUYER BEHAVIOUR

The Buyer Decision Process

Consumers also make buying decisions this process consists of five stages; need recognition,
Information search, Evaluation of alternatives, Purchase decision and postpurchase behaviour.

The buying process starts with Need recognition, the buyer recognises a problem or need, the need
can be triggered by internal stimuli when one of the person‟s normal needs rises to a level enough
to become a drive. A need can also be triggered by external stimuli e.g an advertisement or a
discussion with a friend might get you thinking about buying a new product. At this stage, the
marketer should research consumers to find out what kind of needs or problems arise, what brought
them about, and how they led the consumer to this particular product.

Information search – An interested consumer may or may not search for more information. If the
consumer‟s drive is strong and a satisfying product like for trade Kings is near at hand, the
consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake
an information search related to the need. For example once you have decided you need a product
for trade Kings you will probably pay attention to their advert.

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Chapter Three

3.0 Methodology and Design

3.1. Introduction

A research design provides the framework to be used as a guide in collecting and analyzing data.
The study assumes a descriptive research design that will triangulate with both qualitative and
quantitative tools of analysis. A descriptive design is used because it helps describe characteristics
associated with the subject population and explain the variables that exist between these variables
in order to provide a picture of a particular phenomenon. Descriptive surveys are concerned
primarily with addressing the particular characteristics of a specific population of subjects, either at
a fixed point in time or at varying times for comparative purposes.

3.2. Research Approach

There are two types of researches qualitative and quantitative research approaches.

3.2.1. Quantitative research

Quantitative research is generally associated with the positivist/post-positivist paradigm. It usually


involves collecting and converting data into numerical form so that statistical calculations can be
made and conclusions drawn. It is about asking people for their opinions in a structured way so that
you can produce hard facts and statistics to guide you. To get reliable statistical results, its
important to survey people in fairly large numbers and to make sure they are a representative
sample of your target market. The research conducted to identify the impact of packaging on
consumer‟s buying behaviour is a quantitative research.

3.2.2. Qualitative Research

Qualitative research is the approach usually associated with the social constructivist paradigm
which emphasizes the socially constructed nature of reality. It is about recording, analyzing and
attempting to uncover the deeper meaning and significance of human behavior and experience,
including contradictory beliefs, behaviors and emotions

3.3 Sampling Frame

The relevant data had been collected from consumers (individuals), retailers, wholesalers
and supermarkets.

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Sample size and sampling technique

There are two major types of sampling techniques which are probability sampling and non-
probability sampling. We are using probability sampling technique in which we use
convenience sampling. The reason of choosing this technique is that every individual are using
the FMGC product and they all know their impacts on the buying behaviour so we can find
out the results on behalf of the available population sample.

The total sample selected for the study was 300 respondents. In the next phase, 300 people were
selected through stratified random sampling irrespective of age, education and income level.

Population

The population of my sample is from Ndola, Zambia

3.6.1 Measurement/Instrument

A questionnaire will be given to the sample population in order to identify the buying pattern of
consumer‟s on the basis of given variables. Each variable is measured by asking questions and
ratings type scale ranging from:

1. Yes 2. No

Data Collection techniques

Primary Data: The primary data has been collected by personally visiting the respondents and
conducting their interview with the help of a structured schedule. The discussion and personal
observation has been used for gathering the relevant information from the respondents. The
structured schedule has been designed to gather the primary information of the respondents
regarding demographic information, significance of packaging, consumers‟ perception about
packaging strategies and impact of packaging strategies on purchase decision of consumers.

Secondary Data: The secondary data that has been used for the development of the present
research problem has been collected through review of existing literature pertaining to the study
and relevant information regarding the packaging of consumer goods. Various sources like books,
journals, magazines and internet have been used.

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The Theoretical Framework between Independent and Dependent Variables can be
expressed as follows:-

Conceptual framework

It focuses on the relationship between independent and dependent variables. The difference
between dependent and independent variables is important to study in research.

Dependent Variables Independent Variables

Independent Variables

Packaging Colour
Colours play a vital role in the consumer‟s decision making and they attract customer‟s towards
any product. Different colours have different meaning and can help to draw attention according to
the consumer‟s mood.

Packaging material
Packaging material have great influence on consumer‟s purchasing decision. High quality
packaging attracts the consumer‟s then the low quality packaging.

Design of Wrappers
The design of the wrapper also plays an important part to attract consumers. Companies use creative
designs to attract customers.

Innovations
Innovation in packaging may add the extra value according to the needs and comfort for
the consumers such as easy open, easy carry, protection, child-proofing, recyclability and
non-breakability.

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Dependent Variable
Consumer’s Buying Behaviour
The Consumer‟s buying behaviour is the sum total of the attitudes, preferences and
decisions regarding the purchasing of any product or service.

Research variables arising from literature

Color

Color is a great marketing tool that much influences consumer buying behavior. Marketers study the
psychology of consumer behavior that which color mostly attracts consumer. It effects on
consumer‟s mood and helps to draw interest. According to the study shows the responses of
students to various colors. Like green color is associated with nature and elicits feelings of positivity
such as calmness and relaxation. Blue is associated with water, eliciting positive responses
including comfort and peace, whereas yellow is associated with happiness and cheerfulness.

Packaging

Packaging is a significantly affecting variable to the purchaser‟s behavior. Packaging material helps
in sales promotion for many companies. It influences the consumer‟s buying behavior decision.
Consumer can attract by high quality more as compared to low quality. Firstly natural materials are
used by packages which are available at that time. To form packages processed materials are used.
Study shows that an old package is an important aspect of archaeology like can is made by iron
and tin plated in the starting of nineteen century. Late 19th century introduces the paper board
cartons etc. In early 20th century advancements of packaging started. It helps in increasing
processing efficiency and improving safety of food. What is packaging? Packaging defined as
physical features of the products, and focused on more extensive interpretations. Packaging can be
defined quite simple as an extrinsic element of the product.

Research Design

There are two Design also plays a very important role in attracting the consumer. The
organizations try their best to create attractive design of wrapping. Plain design is more effectual.
The font style of Packaging grabs customer attraction. Fonts are essential and critical elements in
the virtual world. The organizations have best practices of font styles.

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Printed information

Printed material is one of the easiest and most effectual ways to provide information. The consumer can
change his decision on the basis of information printed on the packaging. Printed information can be
easily handed out and accepted away. It is significant at all levels of participation.

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Chapter Four

4.0 Presentations and Findings

4.1 Presentations of Qualitative or Quantitative Findings

Findings from the study showed that there is a direct significant relationship between
product differentiation and consumer evaluation. It thus holds that product differentiation
has significant effects on consumer evaluation of the product. The study showed that needs
of non - unique consumers with perceived quality is negative and creative selection with
emotional value in perceptions of garment brand in Zambia is positive. The perceived
quality reduces the purchase decision, whereas emotional value increased the purchase
decision. The results study also showed that all elements of packaging are very important
for buyers of food products and these elements are effective in their decision to purchase.
More so, the study shows that there is a direct significant relationship between labeling and
consumer awareness. It therefore holds that labeling has significant effects on consumer
awareness of the product. According to this research package attracts consumers’ attention
to a particular brand, enhances its image, and influences consumers’ perceptions about the
product also package imparts unique value to products. The results of study conducted also
showed aware of the price, has greatest impact on consumer purchasing decisions and
perceived risk has significant and negative effects on consumers’ attitudes. Lastly, it was
discovered that Labeling has a significant effect at creating consumer awareness of the
product. It has also come to the conclusion that packaging plays an important role in the
selling of goods and services in a competitive environment. A packaging can increase
product sales, reduce inventory levels and makes high profits and to increase customer
Ensure.

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Chapter Five

5.0 Analysis of data

5.1. Analysis of overall Findings:

It is the technique in which we use to generate results in descriptive statistics. It shows maximum,
minimum and mean value of data.
To analyse the research outcome the results of descriptive analysis of all dependent
and independent variables are shown as follows;

N Minimum Maximum Sum Std. Mean


Statistic Statistic Statistic Statistic Devia Statistic Std. error
Statistic
CB 300 2.40 4.40 1028.80 .46259 3.4259 .02671
PC 300 1.50 4.50 1149.00 .56760 3.8300 .03277
PM 300 2.00 4.50 1053.50 .69448 3.5117 .04010
DW 300 1.00 4.50 1038.50 .79149 3.4617 .04570
PI 300 2.50 4.50 1116.50 .77267 3.7217 .04461
Valid N 300
(listwise)

Note: CB= Consumer Buying Behaviour


PC= Packaging Colour
PM= Packaging material
DW= Design of Wrappers
PI= Packaging Innovation

In the above table the Minimum values, Maximum values, Sum, Mean and values of standard
deviation of all the variables are given. Number of observations of each variable is 300. All values
of mean shows the central tendencies of each variable. Values of standard deviation, minimum and
maximum show the dispersion of values from its mean. The mean value of consumer Buying
behaviour is 3.4 where as its minimum and maximum values are 2.40 to 4.40. Similarly all the
independent variables have different mean value as well as extreme values.

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Correlation:

Hypothesis

H1: There is a relationship between consumer’s buying behaviour and packaging colour.
Correlations between Consumer’s Buying Behaviour & Packaging colour.

CB PC
Pearson Correlation 1 .562
CB Sig. (2 tailed) .0001
N 300 300
Pearson Correlation .562 1
PC Sig. (2 tailed) .0001 300
N 300

** Correlation is significant at the 0.01 level (2-tailed)

The above table represents the correlation of two variables-Consumer Buying Behaviour and
packaging colour are positively correlated (r=0.562, p=0.0001). There is a moderate
relationship between buying behaviour and packaging colour which is significant. So we can
say that the hypothesis is accepted. Dark colours easily attracts people so if we use dark
colours in product packaging, it can easily grasp the consumer‟s attention.

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Chapter Six

6.0 Conclusion and Recommendations

The research results of the impact of packaging on consumer‟s buying behaviour are as follows;

(i) Packaging is the most important tool in the marketing of any product. It helps
to communicate with the audience.

(ii) Packaging has different elements which influence on the consumer and hence change
their buying behaviour.

(iii) In order to analyse the importance of each elements for consumer‟s choice to identify
the impact of packaging and its elements on the purchase decision of the consumer. For
this reason the elements are classified as: colour, material, wrapper designs and new
packaging techniques.

(iv) In this research we have been tested empirically this research model, packaging
elements, which have a vast influence on the consumer‟s preference choice; from al
the FMCG products.

(v) It is clear that the packaging elements are the most important factors for consumer
purchase decision.

(vi) The packaging colour has the positive relation with the consumers as the
consumer‟s attract towards the dark and attractive colours and mostly they buy the
products.

(vii) The packaging material has a negative relation with the consumer‟s buying behaviour, so it
is clear that packaging material has no influence on the consumer‟s choice.

(viii) Design plays a very important role in packaging as it capture the attention of the consumers
by its unique and different styles. Hence it has a positive relation with the consumer‟s
buying behaviour.

(ix) People want some new creations which attract them and change their perception
towards the brand.
(x) According to this research, it is concluded that most consumers like the product quality
after they purchased their desired packaged product. Based on those facts, we cannot say

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there is

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a 100% equal relationship between good package and good product quality, but there is a
positive thinking and trend about well-designed package shows high product quality.

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(xi) Appropriate and vivid picture or packaging colour, which delivers them a happy feeling, or
an easy handle/open/dispose, package shape. All these elements contribute each important
effort to catch consumer‟s attention and interest. Besides each element‟s single function,
we think that a good combination of these elements may lead the product to more eye-
catching and attractive.

6.1 Recommendations

(i) After the findings of the research it is highly recommended to all FMCG companies to focus
on the good and attractive packaging‟s which introduce any new product in the market.
(ii) It is recommended that marketers do not think that packaging is the least factor in the
success of any product. They should be kept in mind that the packaging is the first most tool
for attracting the consumer‟s and built a perception in their minds, so it should be deeply
focused.
(iii) It is recommended to other researchers that when they are taking packaging a
research topic they should also focus on the other marketing factors and dimensions
as well.
(iv) For the researchers who are going to conduct research in future should focus
the other elements of researchers as well.

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7.0 REFERENCES

1. Ahmed Rizwan Raheem, Ahmad Nawaz, Parmar Vishnu, &KhosoImamuddin,. (2014).


ROLE OF PACKAGING AND LABELING ON PAKISTANI CONSUMERS
PURCHASE DECISION. European Scientific Journal, vol.10 (No.16), 464 - 468.
2. Madden, T. J., Hewett K. and Roth, M. S. (2000), Managing Images in Different Cultures: A
Cross-National Study of Color Meanings and Preferences, Journal of International
Marketing, 8 (4), pp. 90-107.
3. Phillip Kotler, Principles of Marketing, 1998
4. Ulrich R. Orth (2009) Package Design as a Communications Vehicle in Cross-
Cultural Values Shopping.
5. Baik, S (2011) “Packaging design management in SME‟s, Diversity and Management P.P
1- 6
6. Behzad, M, (2014) “The Art of Packaging: An investigation into the role of colour in
Packaging, Marketing and Branding, International journal of Organisational Leadership P.P
92-102”
7. Nawaz. A Billoo, M. & Lakhan, A. A (2012) “Effect of Product Packaging in Consumer
Buying Decision”
8. Saeed R. Lodhi, R. N Mukhtar, A. M. J Hussain S. Mahmood, Z and Ahmad, M. (2013)
“The impact of labeling on Customer Buying behaviour in Sahiwal, Pakistan”.
9. Saeed R. Lodhi, R. N Mukhtar, A. M. J Hussain S. Mahmood, Z and Ahmad, M. (2011)
“Factors affecting consumer purchase decision in Clothing Industry of Sahiwal, Pakistan”
10. Thomas Sioutis, (2011) “Effects of packaging design on consumer expectations of
food product healthiness”

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Appendix 2

Questionnaires to Buying Behaviour

1. Clearly indicate below your gender and age


category. Gender: Male Female

Age……………………………………………………………………………………..
Position: Manager Supervisor oothers

If other please explain…….………………..…………………..………………………..

2. Which factors are mostly affecting to purchase of the products?

Brand Design of Package Price Quality

3. Does packaging of products influence your buying


behaviour? Yes No

If no explain…………………………………………………………………….………

4. Do you switch your brand due to change in packaging of existing


brand? Yes No

If no explain……………………………..……………………………………………..

5. What is your priority towards packaging?


Yes No

If no explain………………………….………...………………………………………

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6. Are customer satisfaction and retention surveys carried out?
Yes No

If no explain ……………………………………………..……………………………

7. What is the frequency of consumer buying behaviour and retention survey?


Monthly Quarterly Half-Yearly Yearly

8. What is your priority towards packaging?


(i) Protective
(ii) Eco- friendly
(iii) Attractive
(iv) Other

9. Which features of packaging are influencing to your buying behaviour?

PARTICULARS 1 2 3 4 5
Packaging colour
Printed Information
Langauge used on the package
Packaging quality
Package design

10. Did the design of the product wrapper or brand inspire you in purchasing?

Yes No

11. Do you read printed information on the package of the Product?

12. Do you evaluate product according to printed information while purchasing?

Yes No

Thank you for your time.

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APPENDIX 4

LIKERT’S RATING SCALE-KEYS FOR QUESTIONNAIRE RESPONSES

The Keys below represent the scores attached to opinions, feelings, and perceptions customers have
towards a particular variable or aspect of the Organisation.

The Keys below represent the scores attached to opinions, feelings, and perceptions customers have
towards a particular variable or aspect of The Bank.

1. CUSTOMER CARE
1. STAFF ATTITUDE
5 4 3 2 1
EXT. GOOD GOOD AVERAGE BAD EXT. BAD

5 4 3 2 1
EXT. GOOD GOOD AVERAGE BAD EXT. BAD
2. EFFICIENCY (TIME FACTOR)
5 4 3 2 1
EXT. GOOD GOOD AVERAGE BAD EXT. BAD

3. CONVENIENCE
5 4 3 2 1
EXT. GOOD GOOD AVERAGE BAD EXT. BAD

4. COST EFFECTIVENESS
5 4 3 2 1
EXT. GOOD GOOD AVERAGE BAD EXT. BAD

5. LOYALTY
5 4 3 2 1
VERY HIGH HIGH AVERAGE LOW VERY LOW

OTHER VARIABLES’ – KEYS

6. AGE

20 TO 35 YEARS 35 TO 45 YEARS ABOVE 45 YEARS


Code 101 Code 102 Code 103

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7. PERIOD WITH BANK
LESS THAN A YEAR 1 TO 2 YEARS 2 TO 5 YEARS OVER 5 YEARS
0.1 0.2 0.3 0.5

8. ACCESS TO INFORMATION
YES (1) NO (0)

9. SATISFACTION
YES (1) NO (0)

10. CONTINUITY
YES (1) NO (0)

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