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ASSESSING THE RELEVANCE OF PACKAGING ON THE MARKETING OF
CONSUMER GOODS:
A CASE STUDY OF NESTLE GHANA LIMITED
(Francis Owusu)
A dissertation submitted in partial fulfillment of the requirements of
Masters in Business Administration International Business
at the Amity Center for E-learning
Amity University, Noida
June, 2012
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CANDIDATES DECLARATION
I hereby declare that this submission is my own work towards the MBA and that to the best of
my knowledge no part of it has been presented for another degree in this university or elsewhere
except for the references to other peoples work which have been duly acknowledged.
Francis Owusu ...................................... ..............................
(Students Name) Signature Date
. .......................................... ..............................
(Supervisors Name) Signature Date
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DEDICATION
I dedicate this project to my dear family, without their support this project would not have been
possible.
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ACKNOWLEDGEMENT
I am greatly indebted to God whose grace has been sufficient for me throughout the writing of
this project work. I also owe a lot of gratitude to my dear family through whose love and untiring
support I have been able to complete this work. Finally, I am grateful to all my friends and well-
wishers for their prayers and support.
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ABSTRACT
This research sought to assess the relevance of packaging on the marketing of consumer goods
using a case study of Nestle Ghana Limited by examining the role of packaging in product
marketing, Assessing the impact of packaging on consumer product sales and assessing therelevance of the role of packaging in product marketing. The target population for the research
comprised all customers and employees of Nestle Ghana limited. The study was conducted with
a quantitative method, executed through questionnaires, which are handed out to two hundred
(200) respondents. Statistical Package of Social Sciences (SPSS) was used to analyze data
obtained from field research. Findings showed that Packaging has lots or roles/ relevance in
consumer product marketing: packaging protects goods from damage, packaging help in the
promotion and marketing of goods, packaging allows efficient distribution of consumer products,
has service benefits, guarantee, and sales functions. Packaging has a significant impact on
consumer product marketing and Packaging is relevant in consumer product marketing. The
study therefore recommended that management of Nestle Ghana Limited Strive to improve
package design by conducting more research into packaging and how to maximize its benefits
and investing in improving Product Package Design.
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TABLE OF CONTENTS
CANDIDATES DECLARATION...................................................................................... ii
DEDICATION............................................................................................................... iii
ACKNOWLEDGEMENT.................................................................................................iv
ABSTRACT................................................................................................................... v
LIST OF TABLES.......................................................................................................... ix
1.2 Statement of the Problem....................................................................................................2
1.3 Research Questions..............................................................................................2
1.4 Objectives..............................................................................................................................2
1.5 Justification of the Study.....................................................................................................3
1.6 Scope of the Study................................................................................................................3
1.7 Organization of the study..................................................................................................3
xiii.Color............................................................................................................... 5
xvii.Packaging size and shape..............................................................................6
xviii.Informational elements.....................................................................................................6
xix.Product information........................................................................................6
xx.Packaging technology......................................................................................6
2.1 Conceptual Framework.......................................................................................................6
2.2 Functions of packaging........................................................................................................8
2.2. 1 The Levels of Packaging........................................................................... 14
2.3 Package Design Literature................................................................................................15
2.3.1 Gestalt Psychology and the PartWhole Distinction..................................16
2.3.2 Factors Underlying Holistic Package Designs............................................17
2.4 Package Design...................................................................................................................18
2.4.1 Shape........................................................................................................19
2.4.2 Graphics.................................................................................................... 21
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2.4.3 Brand name...............................................................................................22
2.4.4 Typography...............................................................................................23
2.4.5 Pictures..................................................................................................... 25
2.4.6 Color..........................................................................................................25
2.4.6.1 Objectives of color use...........................................................................27
2.4.6.2 Color Symbolism....................................................................................28
2.5 Analyzable Characteristics of Color................................................................................31
2.6 Packaging size and shape..................................................................................................31
2.7 Informational elements......................................................................................................32
2.7.1 Product information...................................................................................32
2.7.2 Packaging technology.....................................................................................................33
2.8 Packaging as a marketing issue........................................................................................34
2.9 Consumer studies on packaging......................................................................................35
2.10 Package Design and Consumer Impressions.................................................................37
2.11 Consumer Benefits...........................................................................................................38
2.12 Conceptual framework....................................................................................................41
CHAPTER THREE....................................................................................................... 43
RESEARCH METHODOLOGY...................................................................................... 43
3.0 Introduction........................................................................................................................43
3.1 Research Design..............................................................................................................43
3.2 Population of the Study....................................................................................................44
3.3 Sample and Sampling technique..............................................................44
3.4 Data Collection...................................................................................................................45
3.4.1 Primary Data............................................................................................. 45
3.4.2 Secondary Data.........................................................................................46
3.5 Instrumentation..................................................................................................................46vii
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3.6 Pre-test of the study instrument.......................................................................................47
3.7 Data Collection Procedure................................................................................................47
3.8 Data Analysis Procedure...................................................................................................48
3.9 Limitations of the Study....................................................................................................48
3.11 Ethical Considerations ....................................................................................................48
3.11 Organizational Profile.....................................................................................................49
4.1 Findings...............................................................................................................................55
4.1.1 Demographic Characteristics of Respondents...........................................55
4.1.2. Section B Treatment of Research Questions..........................................59
4.1 Analysis...............................................................................................................................61
6.1 Discussion and Interpretation of Findings.......................................................................64
5.0 Introduction........................................................................................................................68
5.1 Conclusion...........................................................................................................................68
5.2 Implications..................................................................................................69
5.2.1 Companies................................................................................................ 69
5.2.3 Policy Makers............................................................................................69
5.2.4 Academia.................................................................................................. 69
5.2 Recommendations..............................................................................................................69
5.2.1 Strive to improve package design ............................................................70
5.2.2 Research more into packaging and how to maximize its benefits.............70
5.3 Suggestion(s) for Further Research..................................................................................71
REFERENCES.............................................................................................................72
APPENDIX A.............................................................................................................. 81
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LIST OF TABLES
Tables Pages
Table 4.1 Statistics56
Table 4.2 Age Distribution of Respondents..57Table 4.3 Gender Distribution of Respondents.57
Table 4.4 Marital Status of Respondents...58
Table 4.5 Respondents' Work Experience.58
Table 4. 6 Respondents Level Within Company.59ix
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Table 4.7 Respondents' Levels of Education..59
Table 4.8 Packaging roles....60
Table 4.9 Packaging is relevant in consumer product marketing60
Table 4.10 Packaging has a significant impact on consumer product marketing...61
Table 4.11 Forced entry regression of Packaging on Product Marketing..61
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CHAPTER ONE
GENERAL INTRODUCTION
1.1 Introduction
Packaging is the container for a product encompassing the physical appearance of the container
and including the design, color, shape, labeling and materials used (Arens, 1996). Packaging is
an integral part of the marketing of consumer goods (Solomon et al., 1999). The role of
packaging in consumer goods marketing is to protect goods from damage, allow efficient
distribution, informs the consumer and helps to promote goods in a competitive environment
(Silayoi and Speece, 2004). The need for packaging is also informed by product marketingreasons and consumer decision considerations. Though a product might be best among its
competitors content-wise, the consumer would not know when making a choice as to which
product to buy from amongst other competitive products. Most consumers dont have the time,
ability or information to assess all the pros and cons before purchase. Instead they rely on
various cues (e.g. brand name, packaging, etc.) to help them make their decision (Zeithaml,
1988).
The package is a critical factor in consumer product marketing and consumer decision-making
process because it communicates to consumers. The package standing on the shelf, affects the
consumer decision process and package design must ensure that consumer response is favorable
(Silayoi and Speece, 2004). However, several conflicting trends in consumer decision making
has made the consumer goods package design and marketing challenging. Some consumers are
paying more attention to label information, as they become more concerned about health and
nutrition issues (Coulson, 2000). Some researchers (Green and Srinivasan, 1978,1990; Enneking
et al., 2007) have found correlation between product packaging and the effective marketing of
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consumer goods. These researchers contend that packaging helps significantly in the marketing
of consumer goods. Other researchers (Osei, 2001) also contend that packaging has no relevant
importance in consumer goods marketing but only serves to increase the price of the product.
1.2 Statement of the Problem
Louis Cheskin (1930) discovered that people didnt make a distinction between the product and
the package. Instead how we feel about the package is often transferred to how we feel about the
product itself. In essence, for consumers the product is the package and the product combined.
Asking customers directly how they feel about a product or package is going to result in just that,
their perceptions about the package. What is generally more relevant is how the package makes
them feel about the product itself. Though the relevance of packaging in consumer product
marketing is an important subject matter, there have been a few empirically studies on the
subject matter. most studies on the subject have dealt with consumer behavior (solomon et al.,
1999), packaging in branding (Silayoi and Speece, 2004), consumer decision making process
(Zeithaml, 1988), etc. Though these previous studies provided a framework for this study, it wasnecessary to empirically examine the relevance of packaging on the marketing of consumer
goods using a local setting.
1.3 Research Questions
The following research questions were used to guide the study
1. What role does packaging play in product marketing?
2 What is the relevance of the role of packaging in product marketing?
3 What is the impact of packaging on consumer product sales?
1.4 Objectives
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The study primarily aims to assess the relevance of packaging on the marketing of consumer
goods using a case study of Nestle Ghana Limited. The primary objective would be achieved by
achieving the following sub-objectives
1. Examining the role of packaging in product marketing.
2. Assessing the relevance of the role of packaging in product marketing.
3. Assessing the impact of packaging on consumer product sales.
1.5 Justification of the Study
The researcher is confident that such a study would be beneficial in many ways. First, the study
would inform Nestle Ghana Limited to focus more attention and importance or otherwise on
product packaging. Secondly, the findings of the study would also serve as a good store of
information to packaging companies in the area of package designing. Thirdly, the research
would also serve as an invaluable reference for Students, Academician, institutions, corporate
managers and individuals who want to know more about product marketing. Lastly, the study
will serve as a platform for other researchers conducting studies in related areas.
1.6 Scope of the Study
This research work focused on assessing the relevance of packaging on the marketing of
consumer goods. The study covers customers and employees of Nestle Ghana Limited.
Geographically, the setting of the study is Tema, near Accra in the Greater Accra Region. This is
because Nestl Ghana Limited (the case study company) is situated in Tema.
1.7 Organization of the study
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This work is divided into seven chapters. Chapter one introduces the study, defines the problem,
and clarifies the objectives of the study and limitations and how the research is organized.
Chapter two reviews related literature. This covers objective and analytical reviews of the
theoretical framework within which the study is conducted as well as previous essays,
commentaries and accepted publications on the subject area. The study also relied on published
material both in print and on accepted internet sites. Chapter three focused on the methodology
used in gathering data. It described the research design, the population, sampling procedures, and
data gathering instruments, pre-testing technique, data collection procedures and methods of data
analysis. Chapter four focused on data presentation, chapter five covers the analysis of datawhilst chapter six presents Discussion and Interpretation of Findings. Chapter seven deals with a
Conclusions, Implications and Recommendations
CHAPTER TWO
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LITERATURE REVIEW
2.0 Introduction
This chapter presents a comprehensive review of relevant literature in an attempt to position the
study in an appropriate conceptual and theoretical framework. The chapter discusses findings of
related researches obtained from relevant articles, textbooks, journals, speeches, web sites and
other credible sources of information to this study. This chapter also presents the works that have
been done by other researchers which were considered relevant for the subject of study. The
following topics were reviewed for the study
i. Conceptual Framework
ii. The concept of Packaging
iii. Functions of packaging
iv. Package Design Literature
v. Gestalt Psychology and the PartWhole Distinction
vi. Factors Underlying Holistic Package Designs
vii. Package Design
viii. Shape
ix. Graphics
x. Brand name
xi. Typography
xii. Pictures
xiii. Color
xiv. Objectives of color use
xv. Color Symbolism
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xvi. Analyzable Characteristics of Color
xvii. Packaging size and shape
xviii. Informational elements
xix. Product information
xx. Packaging technology
xxi. Packaging as a marketing issue
xxii. Consumer studies on packaging
xxiii. Package Design and Consumer Impressions
xxiv. Consumer Benefits
xxv. Conceptual framework
2.1 Conceptual Framework
2.1.1 The concept of Packaging
A number of definitions of packaging have evolved in the literature (Frey and Albaum, 1948;ILDM, 1993; Stewart, 1996; Issues Paper, 1997; Lee and Lye, 2002; Ampuero and Vila, 2006).
Wikipedia.org defines Packaging as the science, art, and 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. Garber et al., (2000) also defines Packaging as "all
products made of any materials of any nature to be used for the containment, protection,
handling, delivery and preservation of goods from the producer to the user or consumer."
While subtle differences exist between these definitions three key roles of packaging with regard
to the product have consistently been highlighted; these are: protection, containment and
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identification; although it is clear that the latter role can also be expanded to include packagings
ability to communicate with the consumer.
Rundh (2005) discusses the multiple facets of packaging as a marketing tool; he identifies the
key relevance of packaging to a number of aspects of marketing, including pricing, marketing
communications, and distribution. More widely within the literature it is clear that packaging is
relevant to, and spans the boundaries of, a number of marketing disciplines:
_ The marketing communications literature has provided insights into packagings ability to
communicate with consumers (Nancarrow et al., 1998; Underwood and Ozanne, 1998); how it
can influence consumers perceptions and evaluations of products (Dick et al., 1996; McDanieland Baker, 1997; Raghubir and Krishna, 1999; Rettie and Brewer, 2000); and how it can be used
to gain their attention (Underwood et al., 2001). Indeed packaging has a powerful effect on
consumers at the point of sale (Welles, 1986; Phillips and Bradshaw, 1993; Grossman and
Wisenblit, 1999; Prendergast and Pitt, 2000; Wells et al., 2007) and can hence improve product
sales (Sara, 1990; Beharrell, 1994; Garber et al., 2000; Silayoi and Speece, 2004).
The brand management literature highlights packagings importance as a brand tool
(Underwood and Klein, 2002; Underwood, 2003) and to differentiate products in the eyes
of the consumer (Wells et al., 2007).
The distribution management literature has focused on packagings key role within the
supply chain and as a logistics tool (Johnsson, 1998; Bjarnemo et al., 2000).
The importance of packaging in terms of the organizations environmental
responsibilities and commitment to sustainable marketing has also been documented in
the literature. This highlights that packagings traditional key roles must be balanced with
these new environmental concerns (Kassaye and Verma, 1992; Prendergast and Pitt,
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1996). Indeed, in the coming years there is likely to be an increasing emphasis on this
aspect of packaging within the literature, particularly with new government initiatives
increasingly placing the responsibility of disposal and waste on the brand owner.
By drawing together this diverse literature on packaging it becomes possible to develop a clearer
understanding of the powerful nature of packaging as a marketing tool, and to recognize that
packaging is a critical part of the product offering that should be highly regarded within all areas
of marketing. While packaging is associated with many key aspects of marketing, it is most
strongly associated with the product; indeed packaging is sometimes integral to the product; for
example, bottled water, which in many respects is defined by the bottle itself. In fact, the
literature even suggests that as far as the consumer is concerned, the packaging can effectively
become the product (Silayoi and Speece, 2004). The development of new packaging ideas should
therefore be central to the new product development process.
2.2 Functions of packaging
Prendergast and Pitt (1996) review the basic functions of packaging, and define them by their
role in either logistics or marketing. The logistical function of packaging is mainly to protect the
product during movement through distribution channels. In the marketing function, packaging
provides an attractive method to convey messages about product attributes to consumers at the
point of sale. It may be difficult to separate these two package functions, as they are usually
needed. The package sells the product by attracting attention and communicating, and also
allows the product to be contained, apportioned, unitized, and protected.
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Whatever be the logistics considerations, packaging is one key food product attribute perceived
by consumers. It cannot escape performing the marketing function, even if a company does not
explicitly recognize the marketing aspects of packaging. The package is a critical factor in the
decision-making process because it communicates to consumers. Intention to purchase depends
on the degree to which consumers expect the product to satisfy them when they consume it
(Kupiec and Revell, 2001). How they perceive it depends on communication elements, which
become the key to success for many marketing strategies.
The package's overall features can underline the uniqueness and originality of the product. In
addition, quality judgments are largely influenced by product characteristics reflected by
packaging. If it communicates high quality, consumers assume that the product is of high quality.
If the package symbolizes low quality, consumers transfer this low quality perception to the
product itself. The package communicates favorable or unfavorable implied meaning about the
product. Underwood et al. (2001) suggest that consumers are more likely to spontaneously
imagine aspects of how a product looks, tastes, feels, smells, or sounds while they are viewing aproduct picture on the package.
Consumer decision-making can be defined as a mental orientation characterizing a consumer's
approach to making choice (Lysonski et al., 1996). This approach deals with cognitive and
affective orientations in the process of decision-making. Four main packaging elements
potentially affect consumer purchase decisions, which can be separated into two categories:
visual and informational elements. The visual elements consist of graphics and size/shape of
packaging, and relate more to the affective side of decision-making. Informational elements
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relate to information provided and technologies used in the package, and are more likely to
address the cognitive side of decisions.
In low involvement, "consumers do not search extensively for information about the brands,
evaluate their characteristics, and make a weighty decision on which brand to buy" ( Kotleret al.,
1996, p. 225). One reason for this is low risk (Chaudhuri, 2000; Mitchell, 1999), i.e. these
products are simply not very important. The lack of substantial evaluation often results in the
inability to distinguish much difference among leading brands (McWilliam, 1997). A common
result is relatively weak "habit" brand loyalty. Thus, when consumers find a brand which meets
their standards, they tend to stay "satisfied" with it, especially, if they are constantly reminded of
the brand. But they are not very committed, and substitute easily when it is not available.
Such habit loyalty is fairly common in the West, e.g. IGD (2002a) notes that about one-third of
women shoppers, and slightly fewer men, buy food products through habit. It is also quite
common in Thailand and more broadly in Asia (Speece, 1998, 2003). Survey data from Thailand
indicate that packaging plays a strong role in reminding consumers about the brand ( Silayoi et
al., 2003), i.e. it helps to reinforce habit loyalty.
Some observers, though, note that not all consumers view grocery shopping as a low
involvement activity. Beharrell and Denison (1995) show a range of involvement among
European consumers. Those with higher involvement tend to be more strongly brand loyal,
including willingness to postpone purchase or go to another store if the brand is not available. In
Thailand, about 20-40 percent of consumers for most FMCG shows this level of loyalty, and will
postpone or search rather than simply switch to a substitute (Speece, 1998, 2003).
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Clearly, consumer use of packaging elements is quite an important issue for products - generally,
informational elements require more mental effort to process than do visual elements, which
evoke more of an emotional response. Some consumers are not willing to put forth this small
effort, and food products which is of truly low involvement for them (Koffka 1922; Wertheimer
1925). Others may consider the product more carefully, so that involvement level might shift the
package elements which are most critical. We look at these various elements in more detail in the
remainder of this section, to examine how consumers are likely to use each one.
Packaging should provide the correct environmental conditions for item packed starting from the
time the item is packed through to its consumption. A good package should therefore perform the
following functions (Underwood et al. 2001).
Protective function
The protective function of packaging essentially involves protecting the contents from the
environment and vice versa. The inward protective function is intended to ensure full retention ofthe utility value of the packaged goods (Speece, 1998, 2003). The packaging is thus intended to
protect the goods from loss, damage and theft. In addition, packaging must also reliably be able
to withstand the many different static and dynamic forces to which it is subjected during
transport, handling and storage operations. The goods frequently also require protection from
climatic conditions, such as temperature, humidity, precipitation and solar radiation, which may
require "inward packaging measures" in addition to any "outward packaging measures". The
outward protection provided by the packaging must prevent any environmental degradation by
the goods. This requirement is of particular significance in the transport of hazardous materials,
with protection of humans being of primary importance. The packaging must furthermore as far
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as possible prevent any contamination, damage or other negative impact uponthe environment
and other goods (Underwood et al. 2001).
The inward and outward protective function primarily places demands upon the strength,
resistance and leak-proof properties of transport packaging (Koffka 1922; Wertheimer 1925).
Storage function
The packaging materials and packaging containers required for producing packages must be
stored in many different locations both before packaging of the goods and once the packagecontents have been used. Packaging must thus also fulfill a storage function.
Loading and transport function
Convenient goods handling entails designing transport packaging in such a manner that it may be
held, lifted, moved, set down and stowed easily, efficiently and safely. Packaging thus has a
crucial impact on the efficiency of transport, handling and storage of goods. Packaging should
therefore be designed to be easily handled and to permit space-saving storage and stowage
(Speece, 1998, 2003). The shape and strength of packages should be such that they may not only
be stowed side by side leaving virtually no voids but may also bestow safely one above the other.
The most efficient method of handling general cargo is to make up cargo units. Packaging should
thus always facilitate the formation of cargo units; package dimensions and the masses to be
accommodated should where possible be tailored to the dimensions and load-carrying capacity of
standard pallets and containers (Koffka 1922; Wertheimer 1925).
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Where handling are to be entirely or partially manual, packages must be easy to pick up and must
be of a suitably low mass (Koffka 1922; Wertheimer 1925). Heavy goods must be
accommodated in packages which are well suited to mechanical handling. Such items of cargo
must be forklift able and be provided with convenient load-bearing lifting points for the lifting
gear, with the points being specially marked where necessary (handling marks) (Speece, 1998,
2003).The loading and transport function places requirements upon the external shape of the
package, upon the mass of the goods accommodated inside and upon the convenient use of
packaging aids. The strength of the package required for stowing goods on top of each other
demonstrates the close relationship between the loading and transport function and the protectivefunction (Koffka 1922; Wertheimer 1925).
Sales function
The purpose of the sales function of a package is to enable or promote the sales process and to
make it more efficient.
Promotional function
Promotional material placed on the packaging is intended to attract the potential purchaser's
attention and to have a positive impact upon the purchasing decision. Promotional material on
packaging plays a particularly important role on sales packaging as it is directly addressed to the
consumer. This function is of subordinate significance in transport packaging. While product
awareness is indeed generated along the transport chain, excessive promotion also increases the
risk of theft (Speece, 1998, 2003).
Service function
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The various items of information printed on packaging provide the consumer with details about
the contents and use of the particular product. Examples are the nutritional details on yogurt pots
or dosage information on medicines (Koffka 1922; Wertheimer 1925). The package may also
perform a further function once the contents havebeen used (e.g. storage container, toy).g.
Guarantee function
By supplying an undamaged and unblemished package, the manufacturer guarantees that the
details on the packaging correspond to the contents. The packaging is therefore the basis for
branded goods, consumer protection and product liability. There are legislative requirements
which demand that goods be clearly marked with details indicating their nature, composition,weight, and quantity and storage life.
Additional function
The additional function in particular relates to the extent to which the packaging materials or
packaging containers may be reused once the package contents have been used(Koffka 1922;
Wertheimer 1925). The most significant example is the recycling of paper, paperboard and
cardboard packaging as waste paper (Speece, 1998, 2003).
2.2. 1 The Levels of Packaging
Levels of packaging differ mostly in the quantity of their contents and theimportance of their
communication function (Batra and Homer 2004):
Primary or sales packaging
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. This reaches the consumer. It has the smallest product quantity, and communication is very
important. The packaging is indirect contact with the product. It may include such elements as:
bottle, cap, label, printed box, enclosed leaflet (Batra and Homer 2004).
Secondary or grouped or unit packaging
. It is primarily used to safely transport several primary packages. The most common example is
the corrugated paperboard case (box). It is generally plain and has little communication function
beyond a bar-code to identify it. Secondary containers also used to display primary packages at
the point of sale may have further communication elements inside. The package proportions
should allow it to be stacked on to a pallet or similar tertiary package with least waste space and
least packaging materials. This requirement may affect the size and shape of the primary package
(Batra and Homer 2004).
Tertiary or transport packaging
. Used for the safe handling and transport of secondary packages, e.g. shrink-wrapped pallets;
metal shipping containers. Contain the largest product quantities and have little communication
function (Batra and Homer 2004).
2.3 Package Design Literature
There is both theoretical and empirical support for generalizable, prototypical, holistic package
designs and their relationship to generalizable response dimensions. First, drawing from Gestalt
psychology (Koffka 1922; Wertheimer 1925) and work on nonconscious preference formation
(Kunst-Wilson and Zajonc 1980; Lewicki 1986), classification (Berlyne 1971), and type (Pepper
1949), current design processing theory suggests that specific design elements are perceived and
organized into more complex components (Veryzer 1999). Second, several studies have directly
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explored fundamental factors that capture differences among key types of designs (Henderson
and Cote 1998; Henderson et al. 2003; Henderson, Giese, and Cote 2004).
Third, a significant amount of literature attests to package designs ability to generate a variety of
impressions (e.g., Aaker 1991; Batra and Homer 2004; Batra, Lehmann, and Singh 1993; Keller
1993; Schmitt and Simonson 1995; Underwood 2003; Underwood and Klein 2002; Underwood
and Ozanne 1998). Thus, we put forward the idea of generalizable holistic package designs,
which are systematically related to generalizable brand impressions. Next, we review the
supporting literature in greater detail.
2.3.1 Gestalt Psychology and the PartWhole Distinction
Two features of the Gestalt psychology research on part versus whole perceptions are relevant to
our work on holistic design types. First, the general idea of partwhole perceptual differences
was one of the pioneering contributions of early Gestalt psychologists (Koffka 1922; Wertheimer
1925). For example, consider one colored dot versus a grouping of colored dots versus a whole
painting in the classic pointillism style. A single painted dot might look ominous when seen
alone, but it adds richness to a flower that is part of a still-life painting of a bouquet. Likewise,
any one of the pure dots of color taken in isolation fails to convey the painting itself, but content
and meaning emerge from the orchestration of numerous parts to construct a far richer perceptual
whole. Second, Gestalt psychology also recognizes the importance of stimulus categorization,
though more in terms of stimulus recognition. Consider figureground distinctions, according to
which two designs might have similar features but differ in terms of which ones are made more
prominent (the figure) and which are treated more as the background. A typical example is the
so-called Rubin vase (named after Edgar Rubin, the Danish psychologist who studied such
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images), a vaseface, figureground reversal stimulus. On first sight, people might categorize the
image as that of a white vase against a black background, whereas a closer look might reveal two
human heads facing each other with contours of chins, lips, noses, and other facial features
outlining the shape of the original vase.
2.3.2 Factors Underlying Holistic Package Designs
In addition to Gestalt psychology, recent design theory and empirical evidence suggest that
consumers perceive constitutive elements (e.g., colors, textures, surfaces) and organize them
into more complex components (Veryzer 1999). Such a hierarchical processing explanation
draws from studies on nonconscious preference formation (e.g., Kunst-Wilson and Zajonc 1980;
Lewicki 1986) and from findings that more abstract, multidimensional design characteristics are
determined by more basic and measurable design elements (Geistfeld, Sproles, and Badenhop
1977). Design elements are combined into more complex (cognitive) components or factors of
design, which are then aggregated during perception and convey particular characteristics (i.e., of
a brand) to consumers. This interpretation is consistent with fluency-based attributions
(Janiszewski and Meyvis 2001) and perceptions of beauty (e.g., Grammer and Thornhill 1994).
Furthermore, categorization, classification, and type theories suggest that generic dimensions
exist during the progression that occurs as initial design perception moves to interpretation.
Common to those theories is their reference to the recognition of a particular class of objects
without the ability to identify all its details and peculiarities (Berlyne 1971) as consumers try to
understand a stimulus by placing it within an existing category (Loken and Ward 1990). Thus,
categorization is based on the perceived similarity between a given package and exemplars of
various categories. A consumer first encountering a package may initially categorize the design
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as belonging to a particular category, but as perception becomes more complete and the object is
more fully understood, the person moves past the
2.4 Package Design
For many consumers in low involvement purchases, the package is the product, particularly
because impressions formed during initial contact can have lasting impact. As the product
attribute that most directly communicates to the target consumer the design characteristics of the
package need to stand out in a display of many other offerings. (Nancarrow, Wright, & Brace,
1998)
According to Bloch (1995) the form or design of a package or a product could contribute to a
success in several ways. Bloch (1995) goes on to explain that when designers make choices
regarding form, characteristics such as shape, scale, color, texture, materials, proportions, and
ornaments are included.
First, in cluttered markets, form is one way to gain the consumers notice (Dumaine, 1991). Withnew product offerings, a distinctive design can render older competitors obsolete and make later
competitors appear as shallow copies (Bloch, 1995). Second, according to Bloch (1995), the
form or exterior appearance of a product is important as a means of communicating information
to consumers. Product form creates the initial impression and generates inferences regarding
other product attributes in the same manner as does price. For example, a compact and simple
form of a computer could be used to communicate the ease of use.
Third, in addition to managerial considerations, product form is also significant in a larger sense
because it affects the quality of peoples lives. The perception and usage of a beautifully
designed object may provide sensory pleasure and stimulation. In contrast, objects with
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unattractive form may evoke distaste. Fourth, form can also have long lasting effects. Although
many goods are quickly discarded, the aesthetic characteristics of more durable products can
have an impact for years on users and non-users alike as products become part of the sensory
environment, for good or bad.
2.4.1 Shape
Everything about the package plays a role in communicating product imaginary to the consumer
(Meyers, 1999). The package shape can be used to communicate images that influence consumer
perception, appeal to the consumers emotions, and establish desires for the product before the
consumer ever reads the label or sees the actual product. According to Silayoi and Speece (2004)
package size, shape and elongation affects customer judgments and decisions, however they state
that it does not always occur in easily uncovered ways. Consumers, according to Silayoi and
Speece (2004), often appear to use these things as simplifying heuristics to make volume
judgments. Generally they perceive more elongated packages to be larger, even when they
frequently purchase these packages and can experience true volume.
Meyers (1999) claims that it is possible to manipulate the imaginary and position of a product by
selecting and using a certain form, material and features of the package that will influence the
perception of the product and thereby directly influence the consumers buying decision. Meyers
(1999) also explains that it is very easy to become to eager in the will to be unique and the form
can then easily contradict the marketing strategy of the product. This is according to Meyers
(1999) particularly true when it comes to price/value perception. Different sizes also appeal to
consumers with somewhat different involvement. For example, low price for some low
involvement products, such as generics, is made possible through cost savings created by
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reduced packaging and promotional expenses. Generics are usually packaged in larger sizes,
which communicate to consumers who are specifically looking for good deals. Such consumers
find the low price generics, in the right size of packaging, offers excellent value for money. In
addition, this could imply that when product quality is hard to determine, as with generics, the
packaging size effect is stronger.
According to Danger (1987) there cannot be fixed principles governing the physical shape of a
package because it is usually dictated by the nature of the product, by mechanical considerations,
by selling conditions, by display considerations, and the way that the package is used. However
there exist some basic rules that should be followed. Danger (1987) lists them in the followingorder:
Simple shapes are preferred to complicated ones.
A regular shape will have more appeal than an irregular one and the latter may cause a
mental blockage, which impels the customer to something else.
A shape that is not balanced will be unpleasing.
Squares are preferred to rectangles and a rectangle that has a square root to one that does
not.
Shapes should be tactile and soft.
A convex shape is preferred to a concave one.
Women prefer round shapes and they like circles better then triangles. Angular shapes are
preferred by men and are considered more masculine, men also prefer triangles to circles.
Shapes should be easy on the eye.
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2.4.2 Graphics
If structural design has the ability of creating images that appeal to the consumers emotions,
graphics design the visuals that decorate the surface of the package has an even greater
opportunity to encourage the purchase of your product. To do so, the packaging graphics must be
based on a distinct positioning strategy for the product and project this strategy in the most
forceful and comprehensible manner. Graphics includes layout, color combinations, typography,
and product photography, all of which create an image. For low involvement, there is a strong
impact from marketing communications, including image building, on consumer decision-
making. (Meyers, 1998) Evaluation of attributes is of less importance in low involvement
decisions, so graphics and color become critical (Grossman and Wisenblit, 1999)
The opportunities to communicate product attributes through packaging graphics are almost
limitless. Graphics are capable of communicating informative and emotional messages.
Informative messages include the following (Meyers,1998):
Brand identity
Product name
Product description
Flavor or variety identification
Attribute description
Benefit statements
Sell copy
Promotional messages
Usage directions
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Cross-references to other products
Nutritional elements (for food)
Warning or caution statements (for drugs and chemicals)
Size and contents
Beyond providing pure information, the emotional aspects of packaging graphics are more
subliminal. They evolve from the styling of various graphics elements, including logo styling,
copy styling, symbols, icons, colors, textures, photography, and illustrations.
2.4.3 Brand name
The brand name that identifies your brand and product on your package is responsible for
creating memorability, building brand recognition and loyalty, and providing information.
Styling of the brand name in a unique manner is, therefore, of primary importance to the current
and future well-being of your product. A uniquely styled brand identity creates a recognizable
signature that creates recognition among consumers and enhances their familiarity with your
products. A uniquely shaped signature is referred to as the brands logo. (Meyers, 1998) The
logo can take many forms. It can be based on the brand name in some sort of unique typographic
format or a uniquely styled configuration of the corporate initials. The logo can also take the
form of a symbol that has an association with the product or can simply be an abstract shape
designed to achieve brand recall. A bold logo will communicate strength, masculinity, and
effectiveness. A cursive logo usually communicates elegance, lightness, femininity, and fashion.
An angled or script logo provides an image of casualness, fun, movement, and entertainment.
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Because the brand identity on packages is so critical in communicating a positive image to the
consumer, it is important to keep it as constant as possible. Whether the logo is a stylized name
or a symbol, whether it identifies a single product or an extensive line of products, whether it is
used as a master brand or a sub-brand, it is advisable that the logo style and proportions are
maintained on all packages, regardless of packaging form, shape, and size.
2.4.4 Typography
Next in importance to brand identity on packaging are the verbal communication elements, i.e.,
the words that appear on the packages identifying the product and various information about the
product. The verbal communication elements are of critical importance because they are
responsible for communicating specific information about the product and its attributes.
Depending on the package size, this must often be accomplished within extremely limited
confines of the label or package proportions. (Meyers, 1998) The graphics techniques used to
display the words create a distinct impression, resulting in that the appearance in the type also
carries meaning. Typography is the study of how letterforms are used to create effects, from bold
to elegant, and from delicate to aggressive. (Moriarty, 1991)
The styling of the words by the graphics designer can tell the consumer much about the product.
Every information element on the package has to be precisely targeted and presented in an easy-
to-read manner to communicate the intended brand and product information. Even numbers can
be important. The identification of weight, fluid contents, and product counts are all important to
the consumer. (Meyers, 1998) One of the most important types is the serif typeface (Moriarty,
1991), in which the end of each stroke is finished off with a little flourish (Wells, Burnett &
Morarity, 2000). It is this finishing detail that is the actual serif. Serif letters are considered
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traditional and easy to read. The other typeface is the sans serif typeface, which is one that is
missing the serif, in other words missing the little detail at the end of each stroke. Most sans serif
typefaces are clean and blocky, and reproduce well in newspapers and on cheap paper. Long
masses of copy, on the other hand, usually do not appear in sans serif. (Wells et al., 2000) Bold
sans-serif typefaces can communicate strength of product performance. Serif lettering can
convey high quality, while delicate script-styles can suggest softness, femininity, discretion, and
elegance. (Meyers, 1998). In addition to such package design elements as brand identity, product
identification, and attribute statements, many copy segments on packages are regulated by
federal laws and sometimes by industry control such as
Usage copy to instruct the buyer how to hold, open, dispense, assemble, or store the
package or the product within
Nutritional copy for food and beverages to guide consumer regarding dietary concerns
Directions, indications, warnings, and dosage instructions for pharmaceutical products to
ensure that they are used properly
Storage instructions, transport instructions, and various warnings for chemical products to
avoid accidents
Contents statements, such as net weight, fluid ounces, and piece count for products that
are bought by weight, size, or numerical preferences
These copy elements are often difficult to accommodate in the small space available on the
package or label, but they are needed to be strictly adhered to in terms of text, size of
typography, and placement. (Meyers, 1998)
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2.4.5 Pictures
One of the most effective means of communicating product information and imagery is, of
course, the use of pictures on the package. Photographs and illustrations on packaging identify
products, describe their use, make them desirable, or create an emotional response by the
consumer to the product inside. Photographs and illustrations on packaging are powerful design
tools for (Meyers, 1998):
Identifying product differences
Communicating product functions, such as describing step-by-step assembly of a
modular product or procedures for applying a fixing compound or preparing a meal
Adding emotional appeal to a gift item, such as showing beautiful flowers to enhance
imagery of a gift item
Showing the end result of using the product in the package
Imparting emotional imagery by creating, for example, a feeling of speed (a runner) or
relaxation (a sunrise), even though the product in the package has no direct relationship
to such visual portrayal.
2.4.6 Color
Researchers have suggested that color associations may have been formulated early in human
history when man associated dark blue with night, and therefore, passivity and bright yellow
with sunlight and arousal. To this day, cool colors, such as blue and green, are considered
calming and warm colors, such as red and orange, are considered arousing. Knowledge of the
physiological effects of color has been used by institutions to sedate people without the use of
drugs. In one study, pink was found to calm inmates in institutions and is now used for this
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purpose when anger is detected. Dentists have been known to paint the walls of the office blue to
allay patient fears. (Grossman & Wisenblit, 1999)
Because colors have specific meanings associated with them, colors are important image cues.
The meanings of colors may also have implications for the associations that consumers make
about a brands position in the marketplace. Certain colors manifest pan cultural meaning
associations. Strategic use of these colors affords opportunities for products, packages, logos,
and the like to convey specific images associations across national markets. (Madden & Hewett,
1999)
Many consumers today shop under higher levels of perceived time pressure, and tend to purchase
fewer products than intended (Herrington and Capella, 1995). Products often appear to be chosen
without prior planning, representing a form of impulse buying (Hausman, 2000). A package that
attracts consumers at the point of sale will help them make decisions quickly in-store. As the
customer's eye tracks across a display of packages, different new packages can be noticed against
the competitors. However, eye movement does not necessarily mean attention. When scanningpackages in the supermarket, the differential perception and the positioning of the graphics
elements on a package may make the difference between identifying and missing an item
(Herrington and Capella, 1995).
In psychology research, brain laterality results in an asymmetry in the perception of elements in
package designs (Rettie and Brewer, 2000). The recall of package elements is likely to be
influenced by their lateral position on the package, as well as by factors such as font style, size,
and color. Recall is better for verbal stimuli when the copy is on the right hand side of the
package, and better for non-verbal stimuli when it is on the left hand side. This may imply that,
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in order to maximize consumer recall, pictorial elements, such as product photography, should be
positioned on the left hand side of the package.
Consumers also learn color associations, which lead them to prefer certain colors for various
product categories (Grossman and Wisenblit, 1999). Using color as a cue on packaging can be a
potentially strong association, especially when it is unique to a particular brand. However, people
in different cultures are exposed to different color associations and develop color preferences
based on their own culture's associations. Simply taking the colors of a particular logo, package,
or product design from one market to another should only be done under a thorough
understanding of how colors and color combinations are perceived in each location (Madden et
al., 2000).
2.4.6.1 Objectives of color use
Moriarty (1991) discusses color, mentioning that color in advertising serve a variety of specific
purposes. Color is used for a variety of specific purposes. It creates moods, it draws attention, it
emphasizes, and it intensifies memorability. Morarity further states that color can be used as a
cue, to either associate with or symbolize something else. Morarity also claims that the primary
function of color in advertising is to help create mood and emotional responses.
Attention
Certain colors are inherently eye-catching. Yellow is powerful because of its luminosity, and it is
especially powerful when used with black. Red is aggressive and a strong attention-like pink will
stand out when a bright shade is used. Strong attention-getting color can be sued with the center
of interest to make sure the eye is attracted to the most important element. (Morarity, 1991)
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Using strong attention-getting colors to attract the eye is another way to emphasize what you
believe is the most important element to be seen. Emphasis means contrast, and to make
something stand out it has to contrast with everything around it. (Morarity, 1991)
Color coding
Color coding is a process of establishing visual cues. Colors are easy to remember and, if you
can create an indelible association between a color and a product, then you will be assisting the
retention process. (Morarity, 1991). In packaging, the first objective of the color is to command
the eye. It has to be seen, to jump of the shelf, if it is to survive the intense competition of the
self-service environment. Next the package color is chosen for its ability to be associated with
certain desired qualities such as elegance, naturalness, softness, and so on. (Morarity, 1991)
2.4.6.2 Color Symbolism
The notion that color preferences are formulated through associations is a potentially important
finding for marketing practitioners interested in determining colors for products. Rather than
examine general color preferences among consumers, it may be preferable to learn consumers
color associations as a basis for understanding the emotional aspects of color. For example,
Pentel, a company that makes school supplies, found that red and green were not preferred colors
in school supplies because teachers grade in these colors and they may have negative
associations for students. Marketers can also use the theory of associations to create meanings
for particular colors or to develop a brand image around a color. For example, Owens Corning
uses the color pink to denote its brand of fiberglass insulation. They then use the image of the
Pink Panther to signify that the product is hip and cool. In other words, they created their own
color association and developed an image around it. (Grossman & Wisenblit, 1999)
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Here below the basic colors and their what they commonly are associated with will be presented.
Red: Red is perceived to be generally exciting, cheerful, disobedient, and powerful. Is also
associated with heat, anger, passion, war, and blood. Is considered stimulating. (Morarity, 1991)
Other characteristics associated with red are expensive, premium, high quality, good tasting.
Young, warm, fun, loud, playful and happy. Dangerous, adventurous, luxurious and exciting.
Life, love, passion, power and aggression. (Grimes & Doole, 1998)
Blue: Often considered a happy color. It means peace, calmness, loyalty, security, andtenderness. Is also associated with intellectual appeals as opposed to emotional (red). Can be
identified with cold, ice, distance, and infinity as well as calm reflection. (Morarity 1991) Blue is
also perceived heavy, reliable, high quality and expensive. Male mature, quiet, subdued calm and
thoughtful. (Grimes & Doole, 1998)
Yellow: Associated with the sunlight and openness as well as radiance and vividness. Because of
its brightness, it is highly attention getting. (Morarity, 1991) High quality, expensive, reliable,
light and good tasting are other characteristics associated with yellow. Yellow is also associated
with luxury, sophistication and to some extent safety, but also life, happiness, tenderness and
warmth. (Grimes & Doole, 1998)
Green: Like blue, also associated with serenity and calmness as well as nature. It is a quiet color,
used symbolically to suggest hope, meditation, and tranquility. (Morarity, 1991) Is also
perceived inexpensive, light, reliable and good tasting. Old, traditional, trustworthy, life,
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tenderness, health, and happy, environment, natural, pure and fresh are all characteristics
associated with green. (Grimes & Doole, 1998)
Black: Associated with distress, hopelessness, and defiance. Used to suggest hate and death, but
can also be used to express power and elegance, especially if it is shiny. (Morarity, 1991) Black
is also associated with expensive, high quality, hi-tech and premium products. Mysterious,
luxurious, sophisticated and dangerous, dignity, power and aggression are all associated with
black. (Grimes & Doole, 1998)
White: In Western cultures, white means purity as well as sanitary and clean. By its lack of
apparent color, it also conveys emptiness, infinity, and the incomprehensible. White is used
visually to express total silence. (Morarity, 1991)
Madden and Hewett (1998) conclude that an interesting pattern of colors forming a spectrum of
meanings is evident across all countries. The meaning associations along this spectrum run from
active, hot, and vibrant (associated with red) to calming, gentle, and peaceful
(associated with the blue-green-white cluster). The remaining six colors tend to locate
approximately equidistant between these endpoints.
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2.5 Analyzable Characteristics of Color
Moriarty (1991) states hue, saturation, and brightness as three characteristics in which color can
be analyzed. The hue is the color such as blue, red or green. Saturation is the relative strength or
purity of the color, as, for instance, off-white or grayish-blue. These differentiations in color
suggest that it is possible to modify the saturation by adding shades of black or white to the basic
hue. Brightness is a measure of the intensity of the light a color reflects. A bright color, for
instance, reflects lots of light, while a dull color instead absorbs light. Colors can be bright or
dull depending on their capability of reflecting light.
2.6 Packaging size and shape
Package size, shape, and elongation also affects consumer judgment and decisions, but not
always in easily uncovered ways. Consumers appear to use these things as simplifying visual
heuristics to make volume judgments. Generally they perceive more elongated packages to be
larger, even when they frequently purchase these packages and can experience true volume. This
implies that disconfirmation of package size after consumption may not lead consumers to revise
their volume judgments in the long term, especially if the discrepancy is not very large (Raghubir
and Krishna, 1999).
Different sizes also appeal to consumers with somewhat different involvement. For example, low
price for some low involvement products, such as generics, is made possible through cost
savings created by reduced packaging and promotional expenses. Generics are usually packaged
in larger sizes, which communicates to consumers who are specifically looking for good deals.
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Such consumers find the low price of the generics, in the right size of packaging, offers excellent
value for money (Prendergast and Marr, 1997). In addition, this could imply that when product
quality is hard to determine, as with generics, the packaging size effect is stronger.
2.7 Informational elements
2.7.1 Product information
The behavior of consumers toward products characterized by high involvement is less influenced
by image issues and visual response (Kupiec and Revell, 2001); in such cases consumers need
more information. Written information on the package can assist consumers in making their
decisions carefully as they consider product characteristics. However, packaging information can
create confusion by conveying either too much information or misleading and inaccurate
information. Manufacturers often use very small fonts and very dense writing styles to pack
extensive information onto the label, which lead to poor readability and sometimes confusion.
Mitchell and Papavassiliou (1999) suggest that one way consumers reduce confusion from
information overload is to narrow down their choice sets. Reducing choice alternatives and
evaluative attributes decreases the probability that they will be confused by excessive choice and
information overload. This strategy could apply to more experienced consumers, because heavy
users potentially look at fewer brand alternatives. In other words, experience makes consumers
selectively perceptive and restricts the scope of their search (Hausman, 2000). This is effectively
a form of brand loyalty, brought about because consumers do not necessarily want to continuereading labels every time they buy a particular product.
Many consumers appreciate food labeling, but are not satisfied with standard formats. For
example, UK survey data indicates that nearly two-thirds of consumers now read food labels, but
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one-third want to see clearer labeling (IGD, 2003c). Other research in the UK also shows that
many consumers find the format prescribed in law for both voluntary and compulsory labeling
difficult to use (FSA, 2003). In another recent survey, 90 percent of people agreed that
nutritional information panels should be laid out in the same way for all food products so that
they are easy to understand quickly (Mitchell and Papavassiliou, 1999).
While not all consumers use it, the trend seems to be toward increasing attention to such label
information. Partly concerns about food safety and nutritional health drive this trend (Coulson,
2000; IGD, 2003d; Smith and Riethmuller, 2000), but it is also driven by the gradually
increasing consumer sophistication. During Thailand's recent recession, for example, consumers
were loathed to sacrifice living standards, but they did have to watch budgets more carefully.
They began evaluating products more carefully to make sure they were worth the prices charged
(Speece, 2003). Whatever be the reasons, more highly involved consumers evaluate message
information, relying on message argument quality to form their attitudes and purchase intentions
(Vakratsas and Ambler, 1999).
On the other hand, packaged food products remain low in involvement for many consumers. In
general, consumer acquisition of low involvement products is often done without carefully
examining brand and product information. The lack of commitment and attention implies that
information on the package carries relatively less value with consumers who view packaged food
as low involvement products.
2.7.2 Packaging technology
Technology developed for packaging comes directly from the current trends in products and
consumer behaviors. Powerful retailers also seek greater responsiveness and flexibility from
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manufacturers, including packaging, to satisfy consumers who are more demanding and
sophisticated (Adebanjo, 2000). Customers are often prepared to pay slightly more for enhanced
product value, indicating desire for more quality. However, product and packaging development
also constrained in creating products that fully meet the consumer and channel criteria. Such
constraints might be categorized as ingredient, processing, and cost restraints.
Innovation must respond and develop new products that are more efficiently produced, packaged
for a longer shelf life, environmentally friendly, nutritionally responsive to each of the emerging
segments of society, and meet maximum food safety requirements (McIlveen, 1994).
Technology embodied in the package plays a big role in this, making it somewhat of a special
form of informational element. In addition to its technical role, packaging technology also
conveys information which is often linked to the consumer's lifestyle. Therefore, in order to
survive in high growth, competitive markets, technology becomes very important for developing
packaging, materials, and processes.
It is clear from the review of literature that the importance of packaging development is high, as
packaging plays a major role in consumer decisions of fast moving packaged food products.
Earlier research, however, is not very extensive, and has not looked very carefully at differences
in how packaging elements are used for decisions based on levels of involvement and time
pressure. In the next section we discuss focus group research to examine these issues among
middle class consumers in Bangkok.
2.8 Packaging as a marketing issue
Our understanding of good packaging is a package that sells, concluded one Finnish consumer
product manager, and packages role as a sales clincher at the point of purchase cannot be
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underestimated. It will be soon 50 years when Pilditch (1961) wrote about the supermarkets
silent salesmen and illustrated the marketing potential of consumer product packaging. Pilditch
argued that package is the connecting link between company and consumer, and consumers
purchase decision is dependent on the package. Pilditchs basic argument seems to hold true
even today although the ways how companies connect with consumers and the factors that
determine consumers purchase decisions have changed.
There can be identified three main reasons why packaging has remained a topical concern of
marketing and product decisions: First, given the amount of brands in the market and the varied
range that consum