Understanding The Impact Of Informational Package Elements free essay sample

Packaging seems to be one of the most important factors in purchase decisions made at the point of sale (Prendergast and Pitt, 1996), where it becomes an essential part of the selling process (Rettie and Brewer, 2000). Munyadzi (2013) reveals the function of packaging has transformed over the years as it was solely used as a means of protecting the product and making sure that the product could be consumed without being altered as it is transported form one point to the other. The dynamic nature of the marketing environment has propelled packaging to have other functions that also act as powerful marketing tools (Mitchell 2003). Meanwhile, Kotler (2012) expressed packaging has been transformed to become one of the most important and powerful tools for promoting products, eye-catching the attention of prospective consumers and communicating the value of the brand to the target market. According to Stewart (2003), food product development and innovation continues to be seen as a fundamental strategy for competitive success and survival within a competitive global market. We will write a custom essay sample on Understanding The Impact Of Informational Package Elements or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Nowadays, many food retailers are facing a somewhat challenging scenario where the cost of marketing is also rising and it is becoming more difficult to maintain sales for brands that are not the first choice household name (Peters, 2004). In addition, consumers are becoming more demanding in terms of quality and choice and are constantly seeking a product tailored to their every want and need (Mitchell, 2003). Products are developed to, and indeed are expected by consumers to taste good; therefore, it is not surprising that consumers will increasingly make their initial choices based on aesthetic value (Dumaine, 1991). Thus, the question commonly faced by many food retailers is how to distinguish or differentiate their product from competing products. During the 1980s, UK food retailers began to enhance the pack design of their products, discovering that improvements in packaging design and product quality enabled them to compete directly with food manufacturers (Southgate, 1994). 1. 2 STATEMENT OF PROBLEM Packaging could be treated as one of most valuable tool in today’s marketing communications, necessitating more detail analysis of its elements an impact of those elements on consumer buying behavior. Analyzing an importance of its separate elements for consumer’s choice can reveal the impact of package its elements on consumer’s purchase decision. For this purpose main package’s elements could be identified into food label information (Ingredient, instruction, weight, expiry date, halal mark), brand element (brand name, slogan, logo, symbol) and nutrition information (protein, energy, vitamin, sugar, fat). The impact of package its elements on consumer’s purchase decision can be revealed by analyzing an importance of its separate elements for consumer’s choice. The aim of this study if to determine the impact of informational package elements toward consumer purchasing behavior for carbonated drinks product. So, the question is to what extent does, brand elements, nutritional elements, and food level information influence consumer buying decision among residents in Melaka Tengah towards carbonated drinks product. 1. 3 RESEARCH QUESTIONS Based on the specific objectives above, this study seeks to find the answers for the following research questions. 1. Is there any significant relationship between the brand elements, nutritional elements, and food level information on the consumer buying decision? 2. What are the most effective packaging elements that can influences consumer to buy the product promoted? 1. 4 RESEARCH OBJECTIVES General Objective The purpose of this study is to examine the relationship between the effect of packaging elements on consumer purchasing decision towards carbonated drinks. Specific Objectives 1. To measure the level of influential of packaging elements of carbonated drinks and its specific dimensions among Melaka Tengah Community. 2. To determine the relationship between independent variables (brand elements, nutritional elements, and food level information) and its specific elements toward consumer purchasing decisions among Melaka Tengah Community. 3. To indicates the most influential element that effect purchasing behavior of customer. 1. 5 HYPOTHESIS a) Brand Elements, H1 H1: Brand elements has a significant impact on consumer’ purchase decisions b) Nutritional Elements, H2 H2: Nutritional elements has a significant impact on consumer’ purchase decisions c) Food Level Information, H3 H3: Food level information has a significant impact on consumer’ purchase decisions 1. 6 SIGNIFICANCE OF STUDY The findings of this research will help the company to determine what the important key factor that influence consumer buying decision on carbonated drinks whether it is brand elements, nutritional elements, and food level information. Other than that, it is also help the management to make corrective action to increase the level of consumer buying decision and at the same time to improve the company’s performance in order to help them to be more competent in future. The result from the research will also help to enhance the body of knowledge which is to reinforce the existing and also develop new theory. The study also will help to get better understanding of the variables which have been used in this research 1. 7 LIMITATION OF STUDY The findings of this study have to be interpreted considering few limitations. Firstly, limitations include the time constraint. Due to other responsibility, the time given is limited to complete the research with prescribed time. To get a suitable topic that is related to the research, an enough time is needed in order to complete the research. A lot of time is required to know and fully understand about the problem as stated in many journal articles. To construct the questionnaires its required a quite long time to complete it because it needs to make an observation and by interview some people in that organization or company to get the accurate data about this research proposal. And also to ensure the words and meaning were made clear to every respondent, there is always a possibility that individual respondent might interpret the meanings of the questions differently from others. The last limitation is the cost constraint. As a researcher, we have limited sources of budget due to Internet fees, transportation and others. We need amount of money to get accurate information. This also causes by over budget, by doing a research they didn’t manage their sources or budget very well and its limits the research to conduct a survey in a large level. Since this research need us to make observation, interview and spreading out the questionnaire to the respondent, some cost might incur to conduct overall process. 2. 1 LITERATURE REVIEW 2. 1 INDEPENDENT VARIABLES BRAND ELEMENTS Brand element according to Keller (2008) can be brought as many dimensions that differentiate them from other product designed to satisfy one need; these differences may be rational or tangible, or symbolic, emotional and intangible. Furthermore, whilst most brand practitioners argue that the package design is an important component of the brand strategy (Dadzie and Mensah, 2011), literature on packaging information (Silayoi and Speece, 2004; Estiri et. al 2010) tends to view the brand elements as a key ingredient of the product informational package elements. The proponents of branding position that in the consumers’ mind, a well known brand can be dependent upon and consumers tend to perceive the quality of the products based on the brand strategy (Aaker, 1991). One of the brand elements is brand name where substitutions have become a frequent phenomenon, and companies confronted with rebranding are often mentioned in the business press (Muzellec and Lambkin, 2009). Brand name substitution consists of changing the name of a product or service which is marketed by a company (Muzellec and Lambkin, 2006; Muzellec and Lambkin, 2007). Next is a slogan, according to Rogers (2008) the acceptance of the concept of purchasing infused drinks from any outlet by the young consumers’ signals a form of social change or lifestyle. The slogan falls under brands element said that slogan can possess an idea worthy to consumer loyalty Martinez, 2004). Other part that contributes under brand element is name and logo gives contribute to a key component of brand identity, since they are the most pervasive elements in corporate and brand communications, and provide instant recognition of the brand (Schechter, 1993; Henderson and Cote, 1998). In this context, as a brand identity sign, a logo can refer to a variety of graphic or typeface elements, ranging from word-driven, i. e. including word marks or stylized letter marks, through to image-driven, i. e. including pictorial marks (Henderson and Cote, 1998; Wheeler, 2003). More recently, Walsh et al. (2010, 2011) examined consumer responses to logo shape redesigns (from angular to more rounded shapes). Theorists agree that well-designed logos should be recognizable, evoke positive affect and allow the transmission of a set of shared associations (Kohli, 2002). Lastly, a symbol under brand element shows that according to Smelser (1973) an object which is representation of a different entity. Moreover, Hostetler (1964) said that this elements can be defined as a symbol as a â€Å"visible object† that is representative of an idea. Symbols can also be representative of the worldview of a social or cultural group (White, 1949) and therefore be presented in art form; for example through architecture (Ikebude, 2009). NUTRITIONAL INFORMATION Nutrition elements are one of label that contain at carbonated drinks. According to Dougherty (2006). Most consumers would like to see nutrition information at places where they go out to eat; however, only limited research has explored how well this information is understood by consumers and which consumers may be most likely to use menu labels in making decisions about what to purchase. Nutrition labelling reduces consumers’ intentions to purchase items high in calories and fat, especially when there is a greater discrepancy between the perceived content and actual content. Loureiro et al (2006) found that consumers were willing to pay approximately 11% higher for a box of cookies with a nutritional label than one without such a label. One of the nutrition elements are energy. If products have no special labelling or have a number of complex methods of indicating the energy contents of that product, the actual energy contents can vary dramatically across a range of similar products (Fineli 2011). Understanding what the energy contents of a product might be is then dependent on a consumers skill and knowledge in interpreting this information (Drichoutis et al. 2006). Another elements of nutrition elements are vitamins. Women are more concerned about the low fat of the products as safety of the food. On the contrary, men are concerned about the necessary vitamins, freshness and label information whereas both are concerned about expiry date as most important aspect toward food safety. In the present context, information on negative nutrients, such as fat, may be more salient than information on positive nutrients, such as vitamins (Burton,1993). Motivation to search for information is greater when consumers are provided with highly arousing negative consequences and specific ways to minimise them (Moorman, 1990). Sugar also one of the elements in nutrition. According to Blisard (1994) These concern have also been fuelled by recent consumer group studies, which have stirred controversy about whether added sugar and starches compromise nutrition. A slightly smaller percentage,74 percent, indicated that they had heard about health problems associated with consuming excessive amounts of sugars. Protein also been classified as one of nutrition elements. Whey and soy proteins contributed different sensory properties to the beverages and bars. In blinded comparisons, consumers preferred bars and beverages with whey or mixtures of whey and soy protein to applications with soy protein alone. The consumer perception of these proteins when specifically labelled as such in bars and beverages was not addressed (Childs et al,2007). The last element in nutrition are fat content. According to Kim (2000) , consumers who used nutrition labels tend to consume less calories from fat and saturated fat ,and to eat a diet low in fat (Finke 2000). In addition, consumers evaluated food products displaying nutrition labels as more valuable than non-labelled products. (Loureiro, 2006). FOOD LABEL INFORMATION Food labels are the prime channel for information dissemination between food producers and retailers, and the consumers of food products (Food and Agriculture Organization of the United Nations and the World Health Organization (FAO, WHO), 2001). Other that, they contain various information elements which can be classified into different categories: for example, mandatory (Her Majesty’s Government, 1996) and commercial (McIlveen and Semple, 2002). According to Doi (2007) Halal is a Quranic term that means permitted, allowed, lawful or legal. Its opposite is Haram (forbidden, unlawful or illegal). In Islam and according to Shariah (Islamic Law), all issues concerning Halal or Haram and even all disputes should be referred to Quran and Sunnah (prophetic tradition). Furthermore a trust mark (Halal logo) can be placed on the Halal products for Muslims to know that the product is Halal (Cheng, 2008). Research has shown although current Halal standards regulate food production, preparation, handling and storage to some degree, it does not ensure that the product is Halal at the point of consumption (Tieman, 2006). Harcar and Karakaya (2005) found that consumers were most likely to check expiration dates prior to purchasing a product if the expiration dates were easily found and that consumers ceased checking the dates if they had difficulty finding them. They speculated that the size, color, or font, as well as placement on product packages, could contribute to the consumer’s difficulty in locating the date. According to the 1990 Food Marketing Institute’s Trends Survey, 72% of people check product expiration dates and women are more inclined to check than men (Mueller,1991, as cited in Harcar Karakaya, 2005). Pepsi CO Inc. (1981) shows that soft drink manufacturers justi? ed adding caffeine to soft drinks on the basis that caffeine was a ? avor enhancer. If caffeine had not been accepted as a ? avor enhancer, but had been regarded as a psychoactive ingredient, soft drinks might have been regulated by the FDA as drugs. However, the FDA approved caffeine and limited the maximum caffeine content of cola-type soft drinks to 0. 02% caffeine, or 71 mg/12 ? uid oz (Food and Drug Administration, 2003). Previous studies have already investigated the heavier weight that negative, as compared with positive information, has on the impression formation process (Fiske, 1980; Mizerski, 1982). In order to minimize this potential negative effect of the product recall message on consumer behaviour, the company making a product recall should emphasize that it is taking action in a socially responsible manner (Mowen et al. , 1981). According to Mowen (1980), using an experimental approach, manipulated variables as consumer knowledge of the company making the product recall, whether or not the company was compelled to make the recall by a consumer product safety commission, and whether or not other manufacturers had had a similar defect. Products that are innovations â€Å"New-to-the-world products revolutionize existing product categories, or define wholly new ones† (Crawford et al. , 2003). Furthermore, these new products may include an innovative technology and require consumer instruction (Cooper, 2011). 2. 2 RELATIONSHIP BETWEEN INFORMATIONAL PACKAGE ELEMENTS AND CONSUMER PURCHASING BEHAVIOUR Despite the availability of numerous researches on the impact of informational package elements on consumer purchase behaviour, there seems to be no agreement on how consumers will react to different socio-cultural set-ups. In this study, the following informational elements: brand elements, nutritional information and food labels are going to be broken down so that the sub variables will be examined to see how they influence the purchase behaviour of university students. The outlined informational elements are divided as follows: brand elements (brand name, slogans, Logos, symbols and flavour), nutritional information (energy, protein, fat, vitamins, fibre, calcium and sugar) and food label information (instruction of use, expiry date, weight/volume, ingredients and storage conditions). The ultimate findings would then be employed by marketing managers to develop best fitting strategies on how best they may manipulate consumer purchase behaviour through the use of informational package elements. The following model is drawn using basis upon which our hypo theses are crafted. 2. 3 RESEARCH FRAMEWORK H1 H2 H3 3. 0 RESEARCH METHODOLOGY 3. 1 RESEARCH DESIGN This study is a quantitative research study. This study is designed to use a descriptive correlation design to investigate the differences in means and frequency distribution of job satisfaction, the dependent variable and the selected independent variable and its dimensions. Firstly, the dependent and the independent variables are identified. Then, the measurement scales of the identified variables is sought and determined. Before the measurement scales is used, the validity and reliability of the scales will be assessed. Secondly, a representative sample is selected to represent the population of the study so that the results of the study could be generalized to the population at large. Next, the data were collected from the sample using the validated and reliable research instrument. After the data is collected, it will be analyzed using a combination of statistical analyses such as descriptive statistics and correlation analysis. Among the descriptive statistics used will be frequency distribution, measures of central tendency and measures of variability. Correlation analysis is used to determine the relationship between the independent and dependent variables. Further clarification of data collection and data analysis procedures will be presented in the later part of this chapter. 3. 2 MEASUREMENTS AND INSTRUMENTATION Questionnaires are used as a research instrument to collect data from the respondents identified for this study. The questionnaires consist on the effectiveness of main package’s label information (Ingredient, instruction, weight, expiry date, halal mark), brand element (brand name, slogan, logo, symbol) and nutrition information (protein, energy, vitamin, sugar, fat) towards the consumer buying decision. 3. 3 POPULATION OF THE STUDY Almost all scientific method of research obtain their information from the respondents who provide the information and they are called population. With this assumption, the populations of the respondents for this research consist of consumer who drinks carbonated drinks in Melaka Tengah . In this study, 80 respondents will be chosen from population consisting of 40 males and 40 females. 3. 4 SAMPLING The sample size is 80 respondents. The sampling frame is a physical representation of all the elements in the population from which the sample is drawn. In this research a randomly 80 respondents will be chosen at Dataran Pahlawan at Mynews. com retail outlet because it is one of the outlet that sells carbonated drinks that also have high visitors. The main reason to sample is to save time and money. 3. 5 DATA COLLECTION PROCEDURES This research used self administrated questionnaire for collecting data. Using self report paper pen, straight answer questionnaire techniques, consumer will be asked to rate their preference on a five point Likert scale on which they are to indicate whether items are â€Å"strongly disagree†, â€Å"disagree†, â€Å"neutral†, â€Å"agree† and â€Å"strongly agree† characteristics of themselves. Dichotomous scale that used elicits a Yes or No, Category scale that used multiple items to elicit a single response. In Multiple-Choices Questions, respondents will ask to select one or more of the alternative given. In the questionnaire, multiple-choices questions were asked in section 1 (Demographic Information). 3. 6 DATA ANALYSIS PROCEDURES 1) Descriptive statistic According to Leary (2001), descriptive statistics is a powerful tool to describe and understand the data so that they can be easily comprehended by others. The descriptive statistics employed in this study were as followed: (1) To measures of central tendency; (2) To measures of variability; and (3) frequency distribution. These statistics were used to extract and summarize quantitative information from the sample. Measures of central tendency helped to find a single index that could represent the whole set of measure. This study utilized the mean or average to describe the data in terms of average values. Mean was chosen because the variables investigated in this study such as the dependent variable (work motivation, organizational commitment and corporate culture) and the independent variable (job satisfaction) were all interval data. This study also employed the most commonly used measure of variability and standard deviation to find out the dispersion or variability of the data set. Since it is also an interval statistic as the mean, it could be used to describe the degree of dispersion of all the interval variables (dependent and the independent variables). Frequency distribution was used to extract important features of the quantitative data of the study. The original data collected were group and presented in a summarized form by constructing appropriate tables and charts. 2) Correlation statistic According to Ary, et al. (1996), correlation statistic is a statistical technique used to measure the strength of the association or co-variation that exists between two quantitative variables. The strength of the relationship between two variables is measured by the coefficient of correlation, r, whose values may range from -1 to +1. If the direction of the relationship between two variables is positive, it means that high scores of one variable are associated with high scores of another variable and vice versa. When there is a relationship, correlation coefficient can also determine the strength of the relationship whether the variables have a strong relationship or a weak relationship. The closeness of the correlation coefficient to one implies a strong relationship between the two variables. When the correlation coefficient is zero, there is no correlation between the two variables. In this study, Elifson, Runyon, and Haber (1998) rule of the thumb was used to interpret the strength of the relationship (Table 1). Table 1: Criteria for Interpreting Strength of Relationship between Two Variables r value Strength of Relationship 0. 01 – 0. 30 Weak; Almost negligible relationship 0. 31 – 0. 70 Moderate; substantial relationship 0. 71 – 0. 99 Strong; marked relationship 1. 00 Perfect relationship 0 No relationship Source: Elifson, Runyon Haber, 1998 This study used Pearson Product Moment Coefficient of correlation (Pearson r) developed by Karl Pearson as the correlation index. This index was chosen because this index can only be used when the scale of measurement for the variables is interval or ratio (Runyon, Haber, Pittenger, and Coleman 2000). Furthermore, Pearson Correlation Coefficient is also an appropriate measure of relationship between two variables when the quantitative variables are normally distributed. 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