AN ASSESSMENT OF THE EFFECT OF PRODUCT PACKAGING ON CONSUMER PATRONAGE, A STUDY OF MIVA RICE PLC

AN ASSESSMENT OF THE EFFECT OF PRODUCT PACKAGING ON CONSUMER PATRONAGE, A STUDY OF MIVA RICE PLC

CHAPTER ONE

 INTRODUCTION

1.1       Background to the Study

It is an acknowledged fact that consumers’ perception and preference of value of products is one of the critical success factors that enables firms to thrive in a competition driven market environment (Topoyan and Bulut, 2008). Product packaging gives form to a product. Usually, food engineers use preservatives and ingredient tweaking to extend the shelf life of perishable products. This results in the loss of certain natural flavours, tastes and ingredients, often to the displeasure of consumers.

This perhaps has been resolved with the advancements in packaging technologies which has helped to extend product shelf life beyond limits previously considered unfeasible. If not all, most buying decisions are based on information sought by consumers either actively or passively which includes product’s brand name,

Manufacturer’s name, and country of origin, graphics, and nutritional information (Peters-Texeira and Badrie, 2007).

However, when faced with a new buying situation, consumers use information on product packaging for choosing a product over competing products. This is indeed true for package with vivid colours and pictures to convey appeals to the consumers. Indeed, with the ever increasing competition in today’s computerized marketing, it becomes imperative for firms to exhibit distinctive competitiveness in almost all aspects of their products and sales (Lifu, 2003). Good quality product that matches the price often calls for repeated purchase or patronage from consumers which enable the firm to stay in business.

Good and attractive packaging of products creates market for the firm than its promotional activity. This is because consumers most times are attracted at first sight to the packaging style of a product (Terblanche, 2006) and according to Best (2002), it creates value by helping customers decision making process. If a firm’s product packaging does not influence consumer buying decision, then such a firm is wasting a lot of money. Companies spend a lot more money on advertising than on packaging, but packaging according to marketing scholars is considered very important among other benefits, it serves as an advertising medium, thereby helping the firm to cut down on advertising cost. Packaging has some influences on buyers and the experience with the product determines whether a consumer comes back for more or not (Lifu, 2003).

Product packaging is therefore an essential aspect of projecting a firm’s brand’s image, which is sometimes designed to convey images of high quality, while at other times signaling affordable price (Ulrich et al., 2010). Though, product packaging is the final stage of actual production, it is perhaps, a very important aspect of production activities. No doubt, some firms do not bother much about packaging because they believe once the product is of good quality, consumers will buy. This belief is sometimes erroneous as poor packaging can dissuade customers from buying the product irrespective of its quality (Lifu, 2003).

Good and attractive packaging in the view of Scott (2008) may add value to the product and attract a trial from customers. However, for a product to catch the attention of the customers, it must be tactically packaged in such a way that, at first sight, it should appeal to the consumer. A product that is well packaged is self-advertising and serves as a purchase appeal. In addition, a poorly packaged product poses serious problem to the salesmen, as it will require so many explanations to persuade the consumers (Lifu, 2003).

Customers, who do not go after shabbily packaged products, do so after being learnt of it from another user for trial purpose. Sometimes, organizations are misled to think that they can cut cost by going for cheap and unattractive packaging. These categories of firms soon realize after the costly mistake has been made that they needed good and attractive packaging. In present day marketing coupled with stiff competition and wide application of marketing concept, it is important that product permeates all aspects of marketing.

The attractiveness of a package also induces impulse buying of a product which could be satisfactory or unsatisfactory to the consumer as the case may be. Impulsive purchasing entails, as a consumer’s unplanned purchase which is an important part of buyer’s behaviour (Lifu, 2003). It accounts for a greater percentage of supermarket sales and much of all sales in certain product categories.

Packaging therefore establishes a direct link with the consumers at the point of purchase as it can influence the perceptions they have for a particular brand. The attention of the customer is drawn to a product through an outstanding packaging design. According to Vani et al. (2010), earlier packaging considered only a container to put a product in, but today, research focuses on packaging at the beginning of the product to the development stage itself.

1.2       Statement of the problem

Examining the effect of product packaging on consumer buying choice as well as on impulse buying has attracted significant research interest over a period of time. There are a plethora of studies that examine the effect of product packaging on consumers’ buying choice as well as on impulse buying across the globe, (Silayoi and Speece, 2004; Veloutsou et al., 2004; Peters-Texeira and Badrie, 2007; Scott, 2008; Topoyan and Bulut, 2008; Laforet, 2011). In addition, a considerable body of literature in psychology and consumer behaviour has examined consumer impulse/ unplanned purchase behaviour (Rook and Fisher, 1995; Vohs and Faber, 2007; Inman et al., 2009; Zhang and Wang, 2010; Bae et al.,

2011).

However, these studies tend to examine consumers buying behaviour in relation to their geographical environment. In Benue state, despite its position as the Food Basket of the Nation, it appears there are scanty studies that have examined quantitatively the influence of product packaging on consumers’ patronage of locally produced agricultural products. Thus, this has informed the need for a study that seek to empirically investigate the influence of product packaging on consumer patronage with specific reference to rice manufacturing company (Miva- Rice Limited) in Benue state – Nigeria.

1.3       Objectives of the Study

The broad objective of this study is to empirically investigate the influence of product packaging on consumer patronage (proxied by buying choice, impulse buying and brand perception). This study specifically seeks to accomplish the followings outlined objectives.

TABLE OF CONTENTS

Title page        -           -           -           -           -           -           -           -           -           -           i

Certification     -           -           -           -           -           -           -           -           -           ii

Approval page -           -           -           -           -           -           -           -           -           iii

Dedication       -           -           -           -           -           -           -           -           -           iv

Acknowledgements    -           -           -           -           -           -           -           -           v

Table of contents        -           -           -           -           -           -           -           -           vii

Abstract           -           -           -           -           -           -           -           -           -           -           x

CHAPTER ONE: INTRODUCTION

1.1       Background to the Study        -           -           -           -           -           -           1

1.2       Statement of  the Problem     -           -           -           -           -           5

1.3       Objectives of the Study          -           -           -           -           -           -           6

1.4       Research Questions   -           -           -           -           -           -           -           7

1.5       Research Hypotheses            -           -           -           -           -           -           7

1.6       Significance of the Study       -           -           -           -           -           -           8

1.7       Scope and Limitations of the study    -           -           -           -           9

1.8       Brief History of Miva Plc.       -           -           -           -           -           -           10

1.9       Definition of Terms     -           -           -           -           -           -           -           12

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1       Introduction     -           -           -           -                       -           -           -           17

2.2       Conceptual Framework          -           -           -          -           -           -           17

2.3       Dimensions of packaging       -           -                       -           -           -           21

2.4       Packaging as a Communication tool              -           -           -           22

2.5       Element of a Good Package Design  -           -          -           -           23

2.6       The role of Packaging in marketing product-             -           27

2.7       Reasons for Packaging -        -           -           -           -           -           -           33

2.8       Relationship between product packaging and

consumer patronage - -           -           -           -           -           -           28

2.9       Criticisms of packaging          -           -           -           -           -           -           40                   

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction     -           -           -           -           -           -           -           -           44       

3.2       Research Design        -           -           -           -           -           -           -           44

3.3       Population of the Study          -           -           -           -           -           -           45

3.4       Sample Size Determination    -           -           -           -           -           46

3.5       Sampling Techniques -           -           -           -           -           -           47

3.6       Methods of Data Collection    -           -           -           -           -           48

3.7       Data Analysis Techniques      -           -           -           -           -                       49

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1       Introduction     -           -           -           -           -           -           -           -           52

4.2       Data Reliability Validity Test   -           -           -           -           -           53

4.3       Data Presentation and Analysis          -           -           -           -           -           61

4.4       Test of Research Hypotheses -          -           -           -           -           -           64       

4.5       Discussion of findings -           -           -           -           -           -           65

CHAPTER FIVE: SUMMARY, CONCLUSSION, AND RECOMMENDATIONS

5.1       Introduction     -           -           -           -           -           -           -           -           67

5.2       Summary        -           -           -           -           -           -           -           -           -           67

5.3       Conclusion      -           -           -           -           -           -           -           -           68

5.4       Recommendations     -           -           -           -           -           -           -           68

            Bibliography    -           -           -           -           -           -           -           -           70

            Appendices     -           -           -           -           -           -           -           -           74       

TOPIC: AN ASSESSMENT OF THE EFFECT OF PRODUCT PACKAGING ON CONSUMER PATRONAGE, A STUDY OF MIVA RICE PLC

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