Essay: Packaging and its characteristics

The literature review is an important segment that provides focus on various concepts in regards to the dissertation topic. The segment of literature review will be carried out depending upon reviewing various literature and academic articles related to packaging characteristics and consumer buying behavior. It will focus on Packaging characteristics, consumer buying behavior, Fast moving consumer good and industry. These literatures will help in understanding importance of packaging and how it affects consumer buying behaviour.
2.2 Conceptual Framework
2.3 Packaging and its characteristics
Kotler defines packaging as “all the activities of designing and producing the container for a product.” And the package includes the primary container, like the tube of toothpaste and the bottle of perfume; the secondary package is thrown away when the product is used, like wrapping paper; and the shipping package (Pathak, 2014)
Packaging plays many roles such as physical protection to the object which is enclosed in the package from any damage, barrier protection, information transmission of how to use the product and so on (Dobsan et al, 2012).
The objectives of packaging are
‘ Physical Protection- Safety of the product enclosed in the package from damage such as temperature, shock, vibration, compression, etc. If there will be no physical protection then the product can get harmed or destroyed which customer may avoid buying, considering this it is important to have physical protection.
‘ Barrier protection- protection from oxygen, water vapor, dust etc. barriers leads to freshness in a product. It shows the high-quality product among customers.
‘ Reducing theft- Putting anti-theft devices in the packaging and designing the packaging in a way that once it is opened cannot be reclosed can be helpful in the prevention of theft. Example:- Big bazaars in India have the tracking device as a code bar, which scans the code and reduces the theft.
‘ Convenience- features which add conveniences in the sale, opening, reclosing, use, re-use distribution, handling, and display. Package design which fits the consumer convenience.
‘ Marketing- Marketers can use the labels and packaging to encourage and attract potential buyers to buy products. Which means marketers can make the product attractive as per segmenting the market into age and gender segments (Ogechukwu, 2010)
Packaging generally signifies the external identity of the product. The study deals with all the elements of packaging like pack graphics, pack shape, pack size, and pack materials which the consumer can identify and well notice. They are also categories as characteristics of packaging Holmes and Paswan (2012) believe that consumers want to know more about what the product contains inside through evaluating the packaging of the product. So, it has an essential role in product performance because the package tells the consumer the information about the product as well. The information can be expressed in following ways in the form of characteristics of packaging(Parmar, et al. 2012)..
‘ Visual elements-Visual element available on product plays an important role to gain and lose consumers. It is very important for manufacturers to consider that the visualization of the product is and how the appearance looks like.
‘ Background- It defines the product originality and it comes with the color combination through which consumer gets the message.
Quality- The quality defines the reliability of consumers on the product. It is very important to have a good quality of product to maintain high sale volume and the image of brand or product.
According to Gopal (2014), The innovative element in the package is necessary to assure customers about the quality of products, to ensure that the customer is influenced to collect a particular product compared to the competitor’s product. According to white, (n.d) When choosing between several products, especially when the consumer is more involved in the selection process, often buy the most expensive quality product because the higher price means higher quality is chosen. The same is true of packaging material, high-quality packaging and labels influence the consumer to buy more often than packaging and labels of low quality.
‘ Packaging Material- Material is something which is used to protect packaging. There can be a high-quality or low-quality product which may gain or lose consumers.
‘ Innovation- This is the technology which adds value to the product in case if it fulfills the needs of the market. The manufacturers have to make these key equity products to stand out of the market with the unique selling point. The manufacturer can gain more consumers by this concept of innovation which will reflect relation in between consumer buying behavior and innovation of packaging.
‘ Packaging Color- color sets the mindset of certain potential customers during decision process and can also capture the attention of consumers. Also, India (New Delhi) is the multicultural place where every background has different meaning of culture.
‘ Labelling ‘which convey social health targets, agriculture issues, manufacturing industries and much more. With the labeling the consumer’s preferences differ, it provides clear information, product safety surety (Parmar, et al. 2012)
The importance of packaging characteristics as a vehicle for communication and the brand is growing in competitive markets for large consumer packaged products. This research used a questionnaire methodology to understand the behavior of consumers towards these products packaging. The challenge for researcher was to integrate packaging into an effective model buying decision, by understanding consumer behavior to the packaging of consumer products. The packages also offer brand identification and label information such as operating instructions, contents, and the list of ingredients or raw materials, warnings for use and guidelines for care product.(Gangar,2015)
Kuvykaite (2009) defines packaging as a crucial element in today’s market through which consumers’ buying behavior has been influenced. The impact of a package and its elements on consumers’ buying decision can be revealed by analyzing an importance of its separate elements for consumers’ choices.
Packing promotion strategies of consumer goods, respondents have considered four factors and the order of importance is the following – an attractive packaging (explained the variance of 18.051%), value for money (13,083%), eco-friendly packaging (12,965 %) and convenience (11.024%). male and female respondents perceive various factors in the same way while taking into about the impact of packaging strategies in promoting consumer goods. ( Main observations, deficiencies, and recommendations, n.d)
2.3.1 Types of milk and milk food packaging and its requirement:
Milk has been packaged in various types of containers worldwide( Tetra, Plastic, glass etc). The general requirements for a milk container packaging are:
o It must be tamper-proof so that it is protected against fraudulent practices between the time of packaging and consumption.
o It must be of a size such that the capacity always refers to the keeping quality of the product and its contents correspond to the daily needs of the consumer.
o Must be clean and attractive.
A container of good quality should avoid post-processing of bacterial contamination sources. It must be such that it should avoid any direct or indirect chemical change in the milk. The package must be of such materials that their components are not transmitted to milk them. It should also be resistant to cleaning materials used in the dairy. It can be used once (single use) or may be returned to the factory processing for reuse.
There are several types of packaging based on use:-
‘ Single-use Packaging Materials:-
These are also classified as flexible packaging. They, as the name suggests, are used to package milk once and are discarded after removing the product.
Plastic pouches: Flexible plastic material can be made into pouch packs. As they are not self-supporting, they generally need some secondary packaging. The advantages offered by the plastic packages are: good barrier properties, visibility of contents, lightweight (reducing the cost of transportation), a single service, eliminating the need for change, washing and sanitation, easy to load, economic and Can you make it more attractive?’
‘ Multiple-use Packaging Materials
Multiple-use Packaging Materials of the possible types of packaging, bottles are used as multiple use packages. They can be made of glass and plastic.
Glass: Glass containers are in the form of bottles, cans, jars and cups. They can be smooth and transparent or colored and dense.
Advantages of glass are- strong material, good closure and decorative options, Raw materials readily available, possible Recycling, Excellent gas barrier properties and water, Image quality, Product compatibility, Good resistance to internal pressure and Reuse opportunity.
‘ Materials used for bulk supply
Milk is packed with bulk and institutional supplies in cans made of stainless steel or aluminum and the capacity of 20 L or 40 L. These are robust and offer excellent product protection (Packaging Materials Used for Fluid Milk, 2015)
2.4 Fast moving consumer goods and milk products.
Fast Moving Consumer goods (FMCG) also known as consumer packaged goods (CPG) are the regularly consumed products that are ended quickly in the market. The FMCG categories include cosmetics, packaged food products, dairy products, pharmaceuticals, consumer electronics household products, drinks and others. The FMCG mainly involves in production, distribution, and marketing operations of consumer packaged goods. The recent studies FMCG sales are increasing rapidly worldwide. It carries low unit value, consumer buying behavior less loyal towards one product and requirement of frequent buying. FMCG is a major sector involvement in India’s GDP as 4th largest sector in Indian economy.(Srinivasu, 2014)
FMCG concept has contributed largely to the development of India through ‘tax deduction on various items, rise in penetration level and per capita consumption ‘the 2015 statistics states that the FMCG sector reaches USD 33.4million (approx.) market in India (Nagrajan and Sheriff, 2013)
FMCG industry tries to build the trust and loyalty factor relationship with their customers through providing a good quality product or new packaging. The flow of products depends on the customer demand which is also affected by its competitors in the market (Telegraph, 2015). In India, the FMCG concept is booming very rapidly in urban and semi-urban regions (Nagrajan and Sheriff, 2013)
FMCG industry includes many daily products but this paper will be focusing on milk products and its packaging. Nowadays competitive advantages have made the milk processing a tough business despite the fact that milk has high numbers of customers in the market. (Thanin and Bradley, 2014).
Skuras Dimitris (2005) The purpose of this work is to examine the range of information consumers seek on labels of quality products and construct an indicative checklist of various types of informational packaging as well as to examine whether a quality of information demanded segregates the market-creating segments to be targeted by firms. The study records the range of informational packaging sought by consumers as well as critical factors influencing their consuming behavior. Informational packaging linking the product to place ranks top among a wide set of information sought on labels. A Poisson count data model reveals that consumers’ willingness to acquire information from labels is influenced by various socio-economic characteristics and, in general, high demand for information is associated with higher expenditures for wine.
Singla Manisha (2010) Nutritional packaging of food products is not mandatory in India at present and the Indian Government is on the verge of introducing a code of conduct for it. The aim of this paper is to provide some initial guidelines for the above-said purpose so as to have consumer friendly packaging policies. Food labels are read by the consumers for brand comparisons and not for consulting nutritional information. Difficult terminology, small font size and inability to understand nutritional labels are the major problems encountered by the consumers. Television, friends, magazines are commonly used for assessing nutritional information. Labels are considered more consumers friendly when benchmarks regarding serving size are provided. Income level, the size of household, the number of children and age did not play a role in the usage of nutritional labels by the consumers. Consumers with special dietary needs used nutritional labels regularly.
2.5 Packaging of Fast moving consumers goods in milk food industry
In order to attain the communication goals effectively and to maximize the potential of packaging, fast moving consumer goods (FMCG) manufacturers must understand the consumers’ response to their packages, and integrate the perceptual processes of the consumer into a design (Nancarrow et al., 1998).
The package constructs its own image by underlining the uniqueness and originality of the product. Product selection depends on quality judgments of consumers which affect the characteristics of packaging. If the packaging quality is high then consumers think that the product quality is also high. On the other hand, if packaging quality is low, consumers have the perception that the product quality is of inferior type (Underwood et al., 2001; Silayoi and Speece, 2004). The package becomes the symbol that communicates favorable or unfavorable implied meaning about the product, so packaging itself reflects the quality of the product (Underwood et al., 2001). The spontaneous imagination of the consumers about the characteristics of the products, like looks, tastes, feels, smells, or sounds are created while viewing product pictures on the package (Silayoi and Speece, 2005). In the FMCG industry, packaging and packaging design have become a vital factor in marketing consumer goods, playing a key role in communicating a product which benefits the consumer. Consumers generally don’t invest much time while purchasing FMCG products which reflects in a low buying decision, and this has been observed in a largely self-service environment like a supermarket. (Kotler, 2010)
2.6 Consumer buying behavior
According to white (n.d) Consumer buying behavior is a decision-making
process including actions where consumer buys the product and use as per the needs. There is a mental and social process involved while customer buys the product than simply entering the store and picking one product which reflects the actual cycle of buying behavior. There are 4 types of consumer buying behavior ‘Limited decision making, routine response behavior, extensive decision making and impulse buying. Kotler et al. (2011) point out that understanding how the consumer chooses products and consumers can provide manufacturers with a competitive advantage over its competitors. Companies can use this information strategically to offer the right products and services at the right time to the right audience.
According to Jeddi et al., (2013) consumer behavior is a means to reach consumers and fulfill their needs and demands successfully. Behavior is a tool that derives from consumer needs and wants to reach the set of goals or target consumers. The consumer market, is vast and so their demands. In the big market every consumer has different desires and wants, so the manufacturer should think what target customer he wants for his product or where he should introduce his product in order to make profits and growth. Consumer behavior is a process which includes the selection of product, buying and consumption of product and services that could be before buying, on buying and after buying of product. Consumer buying behavior can be influenced by many external factors such as culture, social, political environment, packaging and many more. In the present study the focus lays only on packaging attributes.
According to Rani (2014) consumer buying behavior means the ultimate consumer buying behavior, it includes the process of selection, buying and goods consumption and services that can fill their needs and wants.
Consumer buying decision:- The types of consumer buying behavior are achieved by the level of participation in the buying decision, which is directly influenced by the level of need and intensity of interest in a particular product. High share buy more expensive items include lcars, goods, high prices, goods and products that are highly visible to others. Consumers are also more involved in procurement involving higher risk, whether it is a personal, social or economic risk. (White, n.d)
It is very important to understand for the marketer what consumers need, in order to be more communicable, and gaining customers for long. But now the new facts are in the market about consumer buying process which was not shown by the previous researcher.
(Source: https://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiFvMay3-_MAhUGlxoKHSNrALMQjRwIBw&url=http%3A%2F%2Fmanagementation.com%2F5-stages-of-consumer-buying-decision-process%2F&psig=AFQjCNEUXj2pY9FNspRC4VwHQXJO6qEWXA&ust=1464077359460322)
According to Jaideep (2015) Step1: Need Recognition- marketer need to understand the decision process. A buying decision only takes place when the recognition of need is identified. In the questionnaire it will also be tested that how consumer identify the product (example, information, size etc.)
Step 2: Search for Information- the consumer seek for the valuable information to identify and evaluate information sources related to central buying decision. The consumer can follow the product through internet, media or word of mouth. This step of information in questionnaire will show what is the important information consumer look for in a product. (example- manufacturing date, expiry date, ingredients etc.)
Step 3: Evaluation of alternatives: It involves the establishment of criteria with which to evaluate each alternative before making a decision. The consumer has collected information about certain brands. Now, it is subjected to the evaluation of the brands. He/she cannot buy all of them. Usually the best is selected, the brand that offers maximum satisfaction. There are several criteria that normally that offers satisfaction: The criteria that consumers use come from, Past experience and feelings about various brands and Opinions of family members and friends (Patil, 2016)
Step 4: Product Evaluation (under which packaging comes)- this is the stage where the consumer evaluate product on the basis of alternative product packaging those which have all the capability that fits in the need and requirement of the consumer. Here consumer buying behavior is heavily affected (can be positive buying behavior or negative buying behavior).,
Step 5: Buying decision- according to Kotler (2009) final buying decision depends on two polls- negative and positive feedback from other existing consumers. Which affects the buying decision of current consumer, Step 5: Post buying- Is when the buying decision is already made and the post thinking takes place for instance whether the decision of buying product was good or not, whether you should have waited to get a better price, updated one. This can be problem for seller because consumer might return the product, never buy from same place or give negative feedback about the product to people. Here the salesperson have to look after the consumer and their decision as in to motivate and appreciate for their buying decision. These are the steps which are really important to keep a track of these activities of consumer in order to maintain place in market and remain in competition for marketers. (Saylor, n.d).
2.7 Hypothesis
H1: There is significant relationship between consumer buying behaviour and visual elements of package in the market of FMCG (milk products) in India.
When a consumer buys something from the market place or online, the first interaction with the product is the packaging. The consumer decides what product to buy after getting the message from the contents and visual images on the product.
H2: There is a relationship between buying behaviour and background (culture) of packaging of FMCG milk products) in India.
The relationship between the buying behaviour of consumer goods and product packaging has an important role to play in positioning products. Product design shapes consumer perceptions and may be the determining factor in decisions about buying that characterize most of the time of buying.
H3: There is a relationship between buying behaviour and quality of packaging of FMCG milk products) in India.
The relation between buying behaviour and quality of packaging, packaging is crucial because it is the first thing the consumer sees before making the final buying decision.
H4: There is a relationship between buying behaviour and material of packaging of FMCG milk products) in India.
material of packaging of FMCG milk products) in India.
Good packaging helps to identify the product to consumers. The packaging is used for ease of delivery and security purpose. Producer use the packaging for consumer satisfaction that the product is genuine it means that the product is new. Also they used for promotional purposes and to differentiate the product from other brand. Rundh said in 2005 that the perception of good packaging capture consumers about specific products.
Packaging is the important element and container which protects the product. Packaging materials are paper / cardboard, plastic, glass, steel, aluminum.
H5: There is a relationship between buying behaviour and information of packaging of FMCG milk products) in India
The relation between buying behaviour and information of packaging to described that the product is is genuine it means that the product is new.
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H6: There is a relationship between buying behaviour and innovation of packaging of FMCG milk products) in India.
Innovation of packaging of FMCG milk product depends on many elements that has been selected packaging color, design, written information, packaging material, design of wrapper and background image.
H7: There is a relationship between buying behaviour and colour of packaging of FMCG milk products) in India.
The color of the packaging is important and also to differentiate a product from another company. Packaging color draw consumers’ attention towards color the more the color attractive the more consumers will like it. Unlike competitor use different color like white, black for power, blue for confidence, red for power, green for balance, orange, yellow, purple that have a different meaning as perceived by consumers.
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Chapter 3: Research Methodology
3.1 Introduction
In research methodology chapter research is seen as an effort to get to the answer to the intellectual and practical problems through the application of technical methods to the knowable universe. Research is a logical and systematic search for new and useful information on a specific topic. It is a research to find solutions to scientific and social problems through an objective and systematic analysis. Here knowledge means, a discovery of hidden truths.
3.2 Research paradigm
Gephardt (1999) classifies Paradigms as an understanding of the phenomenon and how to achieve knowledge in relation to that. Research paradigms can be classified in three different categories such as positivist, post-positivist and interpretivist positions. This threefold classification is considered ideal for this study because these three categories can be used to conveniently place the most specific psychological and sociological theories used in this project.
According to Qi (2012), The positivist paradigm explores the detailed and descriptive analysis of the research information. Positivist focus on detain description and observation of objectives to analyze links between social variables through hypothesis and research questions( Grix. 2010). According to Nguyen, (2014), Interpretivist paradigm approach emphasizes on an interactive phenomenon. It focuses on representative, subjective experience, and the thoughts that develop in the person’s mind which mean individual develop their self-assumptions base on individual unique experience and shared cultural experiences. Hence, there is no exact right or wrong answer. The Post-Positivist paradigm relates with both the aspects Positivist and Interpretivist in which post-positivists interpretively try to understand the social world. It is an ontological approach to understanding the relationship among Phenomena more than observation (Grix, 2010).
3.2.1 Paradigm application for this research
This research has chosen the positivism paradigm approach to complete the research. The positivism approach will help to develop the relationship between business phenomena for explanation and relations among phenomenon. This approach will provide intensive study of the findings and consideration of information available. The data is collected on the basis of hypothesis and research objectives. According to Bryman et al, (2007) The positivism approaches the quantitative method which fill fit in this research as this research will be using quantitative approach and this will be done by using the instruments that are independent for a researcher and the hypothesis testing. Quantitative deductive method Positivism. In this research the quantitative approach will be using deductive method. Therefore deductive method is related to the positivism and provides help to analyze the hypothesis.
3.3 Structural Equation Modelling (SEM)
According to McArdle (1984), Structural equation modelling provides a very common and suitable for statistical analysis framework that includes several traditional multivariate methods, eg factor analysis, regression analysis, and discriminant analysis, as unique cases. Using the Structural equation model in this research helped in visualizing data through a graphical path diagram. There are different analysis to test SEM such as regression analysis which will be used in this research to show the relation between latent variables and observed variables.
3.3.1 Indices of Structural Equation Modelling (SEM)
According to Schumacker, et al (2010) one of the output index of SEM is Chi square. This will be use to ‘observed and implied variance-covariance matrices’. This is use to make a model fit equation.
3.4 ANOVA :
Oneway analysis of variance (ANOVA) is used in this research to compare several means. This method is often used in scientific or medical experiments when treatments, processes, materials or products are being compared. Additionally, ANOVA is used to compare two variables while one variable is continuous and other variable is categorical. In our analysis, monthly income and how much quantity a consumer buys milk products are continuous variables and others are categorical variables as they are on five point Likert scale basis. Thus one way ANOVA analysis helps to break the data into groups and observe whether there is any relationship between the variables.
3.5 Cross-tabulation analysis
According to Michael (n.d) Cross-tabulation analysis, also known as contingency table analysis, is most often used to analyze categorically (nominal measurement scale) data. A cross-tabulation is a two (or more) dimensional table that records the number (frequency) of respondents that have the specific characteristics described in the cells of the table. In this research, Cross-tabulation tables provide a wealth of information about the relationship between the variables. In the present case, the result of both age and gender is portrayed through cross tabulation analysis. As both the gender and age are categorical variables, cross tabulation helped to present the relationship of these variables together. On the other hand, the cross tabulation analysis between gender and monthly income helps to show that most of the male shoppers have a monthly income between Rs 16000-4000 while most of the female shoppers have less than Rs15000 salary per month.
3.6 Research Approach
To find the relationship between research and theory there are two methodological approaches, deductive approach, and inductive approach. According to Bryman (2015), Deductive approach tests the validity of hypotheses or theories. Deductive approach develops links from methods to structure, forming patterns and comparative methods to assess the applicability of patterns across cultures (Schadewitz. Et al, 2007). while inductive approach contributes to the development of new theories and generalizations(Bryman, 2015).
The research has chosen the approach of the deductive method, to process the existing theories and knowledge which will be used to elaborate certain phenomena. Following the theoretical framework, the study expects to find out reasonable factors to find out the relationship between packaging characteristics of fast moving Consumer Goods and consumer’s buying behavior focusing on milk product. The research hypothesis will be tested using questionnaire and drawn the conclusion using 119 questionnaires. This approach will also test the validity of hypotheses or theories to draw a conclusion.
3.7 Research Designs
Research is seen as an effort to get to the answer to the intellectual and practical problems through the application of technical methods to the knowable universe. It can be considered as the actualization of logic in the set of events that enhances the validity of data for given research problem. According to Mouton (1996), Research design helps to ‘plan, structure and execute the research to maximize the validity of findings’. It guides to reach research design and data collection through the process of philosophical assumptions.
Rajasekar, et al. (2013) Research design are comprised of the exploratory, explanatory and descriptive manner .According to Creswell (2014), Exploratory research is an investigation of a problem that has not been clearly defined. It frequently occurs before we identify enough to make conceptual distinctions or postulate an explanatory relationship. Whereas, Descriptive and explanatory research are used to describe the characteristics of a population or phenomenon being studied. These approaches show the opportunity for proper explanation and analyzing the data (Research methodology, n.d).According to Aaker et al, (2003) The descriptive is done through a statistical instrument such as charts and frequency. The main factors of this instruments are the central tendency of variables and dispersion .Mean mode and median are used to measure the central tendency of variables (Bryman, et al. 2007).
This research is aligned with descriptive and explanatory purposes. Descriptive research will describe characteristics of a population or phenomenon of study. This helped to analyze the hypothesis in depth and further shows the development of the proper results.
3.8 Research questions (Hypothesis)
The research question is the methodological starting point of academic research in both the natural and social sciences. The research will answer the question posed by researchers.
In this study, 37 questions were asked on GoogleDocs and 119 user filled the questions out of 150. Some of the respondents answered all the questions and some of them were partially filled.
3.8 Design Experiments
The design of Experiments is an organized method to find out the relationship between factors affecting a process and the output of that method. In other words, it is used to find the cause and effect. This information is compulsory to handle the process inputs in order to optimize output.
In this study, Design experiments have been used to collect data from the user via questionnaire.
3.9 Research Data Collection
Every research is dependent on the proper process of data collection and correct selection of an approach to collect the data from various sources. For this segment, the researcher has concerned on the understanding of primary research. Further, Primary research has 2 approaches quantitative and qualitative.
This research design is a quantitative form of a questionnaire to collect data like demographic information, quality of milk product, the place to buying and packaging quality by which user motivates to buy the product. As per the previous researchers suggested that Quantitative is the perfect approach for collection of data and data analyzing.
3.10 Data Analyses
The SPSS 19 software has been used to analyze the data by considering the hypothesis and objectives of the research
3.11 Drawn conclusion
The conclusion has been drawn on the basis of collected data and draw SPSS to maximize the output.
3.12 Sampling Method
According to Bryman, et al. (2010) Sampling method is a process where the researchers participate in interaction with group of people who have the knowledge or deep understand of the research topic and gather their opinions and ideas and use the topic to contact with others. Furthermore, Sampling helps the researchers to develop the suitable conclusion of the study. It is a process which includes interviewing people on call, face to face and distributing questionnaire through email, social media or paper distribution to collect data. According to King (2012), data can be collected using probability sampling and non-probability sampling.
3.13 Validity and Reliability of measurements
Traditional criteria of validity are rooted in a positivist tradition, and to some extent, positivism has been defined by a systematic theory of validity. Within the positivist terminology, validity lived among, and was the result and culmination of other empirical conceptions universal laws, evidence, objectivity, truth, reality, deduction, reason, facts and mathematical data to name only a few (Winter, 2000).
Joppe (2000) defines reliability as The degree to which the results are constant over time and an accurate representation of the total population under study is known as reliability and if the results of a study can be reproduced under a similar methodology then the instrument investigation is believed to be reliable. According to Cooper and Schindler ((2008), it is important to show the consistency of measurement of the various instrument. Cronbach Alpha is used in this research to measure the internal reliability and validity. If the Cronbach’s alpha is greater than 0.7 then the instrument used to obtained the data is appropriate
In this research validity and reliability is achieved through respondent opinion regarding the questions. Multiple choice question were posted on GoogleDocs using five Likert scale (1) strongly disagree (2), disagree (3), neutral (4), agree (5) and strongly agree., Likert scale is a psychometric scale response mainly used in questionnaires to obtain preferences or grade according to a participant or a set of statements. Likert scales is a non-comparative scaling technique and are one-dimensional in nature. They are asked respondents to indicate their level of agreement with a given way of an ordinal scale statement (DeVellis, 2003).
The validity test in this research is applied to measure, what indicators are supposed to measure. According to Bryman et al. (2007) There are several instruments to measure the external validity but according to this type of research, the best suitable one was faced measure out of (face, construct, concurrent and predictive. ) This measure helped in measuring the objectives and hypothesis, and the requirement of the study. During data collection period the data was obtained through online survey and face to face communication and coded by numbers for the analysis process.
3.13.1 Probability
Each person in the universe has the same chance of being chosen for the sample and each collection of the same size has the same chance of becoming the actual sample.
The probability sampling provides an advantage due to the ability of researchers to calculate the specific bias and error in regard to the data collected. Probability sampling is defined as the “distinctive features that each unit in the population has a known, non-zero probability of being included in the sample” (Henry 25).
Simple Random Sampling =sampling without replacement.
3.13.2 Non-Probability
The benefit of non-probability sampling is that it a suitable method for researchers to collect a sample with small or no price and or for those research studies that do not require representativeness of the population (Babbie 1997).
3.14 Sample Size
The sample size is one of the factors of research design that researchers need to judge as the plan of research. Reasons are to exactly calculate the required sample size which includes achieving both a clinically and statistically important result and it is ensuring that research resources are used efficiently and ethically. Participants approval for participation on the basis that it has the potential to lead to a better understanding of the concept used, however, if an investigation does not include sufficient sample size to answer the question that is being studied in a valid manner than participants who enrolling may be unethical.
This research has used purposive sampling technique which is a part of the non-probability technique and random sampling method for a survey. This has been kept in mind that all the investigations and respondents are the true representative of the study population. In this, the validity issue was dependent on measure instrument , analyzing techniques and data collection..
Parahoo (1997) defined population as “the total number of units which can collect data”, such as people, objects, events or organizations. Burns (2003) describe the population as all items that meet the criteria for inclusion in the study.
In this study, Information was gathered from 119 participants out of 150 samples distributed. Which means 79.33% out of 100% people replied to the distributed questionnaire. This research has been investigated in India (New Delhi) thus the population were completely aware of the Indian packaging market. This research only examines sample size considerations in quantitative research. In this research, the respondent age is no less than 18 years and the respondent is students, service man, self-employed, businessman and others profession. It was asked whether they buy packed milk products or not. Then only those who buy it filled the questionnaire. For collecting data through a face-to-face and online survey the purposive techniques was used. There were also some limitations to collect the survey such as time consumptions, money etc, due to the large geographical area. To overcome these limitations the questionnaires were distributed via social media which saved time and money and also face to face questioners were collected as much as possible.
3.15 Data collection
According to Parahoo (1997), a research instrument is “a tool used to collect data. An instrument designed to measure the knowledge skills and attitude.”. For every research, the data has been collected , and every research approaches different data collection method. Researchers collect the data during the focus group discussion. Obtaining data from participants with different experiences avoid information bias and thus increase credibility with respect to information. The study approach for 2 type of data collection method, first is primary research which can be divided into qualitative analysis and quantitative analysis and the second is Secondary research.
3.15.1 Primary Research
According to Driscoll (2011), primary research approach depends on data collection through primary resource. This research is based on principles of scientific methods, which was developed in the nineteenth century first by John Stuart mill. His theory of primary research suggested about the new continuous learnings of the biosphere and observable phenomena. Moreover, it is also said that application of these scientific methods varies from research field to field through which this study implement different methods, develop a questionnaire or hypothesis and collecting data, objectives, and human measurable and observable. Primary research helps to collect data for new learnings and eliminates one’s own biases process . Further, Primary Research strategies can be done using quantitative and qualitative data
3.15.2 Secondary Research
In the secondary research, the data collection method is done by secondary resources such as books, journals or articles which are already published and the researchers select the literature review description from there. The researchers follow the same methods and models applied in the books or journals.
Justification to research methods
In this study, primary data collection method has opted through questionnaire and face-to-face. In this research, it was required to measure the consumer’s attitude and market behavior. To measure these categories the studies recommend to make a structured questionnaire . Primary research method also helped to obtain huge information/ data about the influence of FMCG packaging attributes on consumer buying behavior focusing on milk products . The consumers in this study helped to provide numerical data with new insights. Here the new insights mean in the questionnaire there was 1 open question which provided a platform for respondents to answer about what problems they are currently facing with the packaging and what can be improved. The respondent provided their valuable answer with new insight which can be beneficial for the Indian packaging market.The Primary approach allows more flexibility in providing answers; therefore, the users were able to provide depth information on the phenomenon. The study also revealed the impact of information on packaging, visual elements, Background, Quality, Material, innovation, Color, and Labeling.
Adopting the quantitative data method, the data have been collected with the help of questionnaire feedback by using both platforms online survey and face to face contact. This guides the research participants to provide an accurate answer to the topic and allow them to plan timely, appropriate, and coordinated emergency response.
3.15.3 Quantitative research
According to Bernard (2000), a Quantitative method is a study which helps to analyze characteristics of a population on the foundation of large sample size, in the form of questions and survey (Kothari, 2004). Quantitative data is collected by the human respondents in a numeric structure. The process helped develop graph, relations with variables and tables to support the data analysis techniques and conclusions.
3.15.4 Qualitative research
According to Kothari (2004), Qualitative research is based on behavioral sciences where the main objective is to ‘discover the underlying motives of human behavior’. With the help of this research, it can be analyzed what factors motivates people to act in a certain manner and about their likes and dislikes in a certain situation. This can be conducted through the telephonic interview where time in the main concern.
3.15.5 Measures and Variables
“Variable” is a term frequently used in research projects. It is important to define and identify variables, while the design of quantitative research projects.
In this study researcher used three types of variable such as dependent variable (Buying behavior of consumer which get influenced by packaging characteristics), independent variable (packaging characteristics such as visual elements, quality of packaging, labelling, innovation, material and so on) and mediator variable (test the best quality of product) to identify quality of packaging, price of product, interest towards milk product and place of buying the product
3.16 Operationalization
3.17 Ethical Consideration
Ethical considerations in research are dangerous. Ethics is the rule of conduct that distinguishes between right and wrong. They help to determine the difference between acceptable and unacceptable behavior by the researcher. Integrity, reliability, and validity of research results are based largely on adherence to ethical principles. Readers and the public want to be sure that the researchers followed the appropriate guidelines for issues such as human rights, animal welfare, compliance with the law, conflicts of interests, safety, health standards and so successively. The management of these ethical issues of great impact on the integrity of the research project and can affect whether or not the project is funded.
In quantitative research, ethical standards prevent against things such as fabrication or falsification of data and, therefore, promote the pursuit of knowledge and truth which is the main objective of the research. It is very important to protect research respondent to follow the guiding foundation of ‘do not harm’. (Aaker et al., 2003)
For conducting this survey, an official, and authorized letter was provided by saxion university of applied science. In the online and paper questionnaires, the name of the institute, researcher details, aim and purpose of research, level of the thesis were clearly defined. It was pleased to all the respondents that if they have few minutes to fill this survey which will not take more than 15 minutes to fill in. Additionally, I have used SPSS 19 to analyze data.
Chapter 4: Data Analysis
4.1 Introduction
The present chapter illustrates the analysis of data followed by a comprehensive discussion of all the research outcomes. The data collected from survey questionnaire has been analyzed in this chapter with the help of SPSS 19 software which is widely used statistical software. The analysis and the findings help the researcher to explore, illustrate and identify the relationship between packaging characteristics of milk products and consumer buying behavior in New Delhi. Responses have been collected from 120 customers through a well structured questionnaire. An appropriate research methodology has been chosen for such a research topic. The methodology has been carried out with a suitable research design appropriate for this kind of analysis. As per the research objectives our aim is to find ‘
1. The effect of packaging attributes upon the buying behavior of the consumer (overall significance)
2. Significance and relation of the relevant packaging attributes with the buying behavior of the consumer(individual significance)
3. How far consumer learning has been influenced by the packaging attributes
The relationships between the variables have been identified through chi square and ANOVA analysis. The most important packaging characteristics have been identified through multiple regression analysis technique.
4.2 Demographic profile of the respondents
Frequency distribution analysis on the data collected from survey questionnaire signifies that 78 percent respondents are male respondents while 22 percent respondents are female. It is also observed that 73 percent respondents belong to the age group of 20 to 29 years of age group. With the cross tabulation analysis, it is observed that most of the male and female respondents belong to this age group. This can be shown in following diagram
Figure 1: Result of cross tabulation between gender and age
The green bar highlights the number of male and female respondents belong to the age group of 20 to 29 years of age. In the next stage, it is aimed to identify the monthly income of the respondents according to their gender. To find this again cross tabulation analysis has been conducted. The result is given as follows:
Figure 2: Result of cross tabulation between gender and monthly income
It is found that 36 percent of male respondents who come to buy FMCG products have a monthly income between Rs. 16000 and Rs. 40000. On the contrary, 34 percent female respondents earn less than $15000 in a month. Thus it can be stated that higher income generating male population comes more frequently than female to buy the FMCG products.
The descriptive statistics including mean and standard deviation of continuous variables have been conducted in the present section. As all other variables are categorical, the descriptive test statistics is conducted for monthly income of respondents and quantity consumed of milk products by the consumers. The result of descriptive analysis is given as follows:
‘
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
monthly_income 119 1.00 6.00 2.5966 1.46322
qty_of_milk_consumed_l 119 2.00 8.00 2.6218 1.37157
qty_of_flavored_drink_ml 119 35.00 3000.00 3.0466E2 567.99034
qty_of_butter_con_gm 119 500.00 1000.00 5.6513E2 157.65154
age 119 1.00 4.00 2.1849 .62391
Valid N (listwise) 119
From the above table it is clear that average quantity of milk consumed is 2.62 liter by the consumers with a very lower value of standard deviation. At the same time, it is also observed that on average people buy 3.05 ml of flavored milk on regular basis. However, the higher standard deviation for this variable signifies large variation within group. It is also observed that respondents consume 5.65 gram butter on regular basis. The standard deviation is also higher for butter consumption. This signifies that consumption pattern of butter and flavored milk is not same for all consumers.
Now the mean value of monthly income and age of respondents belong to the group of 3 and 2 respectively. This signifies that average monthly income of the respondents is Rs. 53000 while average age of respondents is 24.5 years.
4.3 Relevant Variables for Analysis
We have identified and utilized only the relevant variables from the dataset for our data analysis and research which aims at finding out the relation between the packaging attributes and buying behavior of consumers. The relevant variables for finding out the desired relation can be shown with the help of the hypothetical below-
‘
TABLE 1: LIST OF RELEVANT VARIABLES
BUYING BEHAVIOR OF CONSUMERS PACKAGING ATTRIBUTES
Monthly income Packaging materials
How often do you buy Packaging influence in buying product
Quantity consumed Packaging is necessary
Are you aware of the FMCG product? Packaging helps in identifying the product
Priority towards packaging
Color of Packaging
Characteristics of Packaging
Do you Check the information on packet while buying the FMCG product
Before analyzing the data generated from questionnaire, at first it is important to identify how many people are aware about the FMCG products. From the frequency analysis it is found that almost 87 percent of the respondents are aware about the FMCG products. This fact signifies that almost all the responses are valid and worth considering for analysis.
4.4 Reliability test
To test the reliability of the responses, Cornbach alpha test has been conducted on the variables that have been considered in the study. The result of Cornbach alpha test is given as follows:
Reliability Statistics
Cronbach’s Alpha N of Items
.219 22
It is observed from the above table that the value of Cornbach alpha is not very high. The value of alpha is only 0.22. The lower value of alpha occurs on account of poor interrelationship among the independent variables. As the present study is concerned about finding the relationship between consumer buying behavior and packaging characteristics, lower value of alpha would not have much problem.
4.5 Overall significance
To fulfill our research objectives, we have designed a regression model for case 1 to show the influence of packaging attributes upon the buying behavior of consumers. Here the quantity purchased by the consumer has been taken as the dependent variable and the relevant packaging attributes has been taken as the explanatory variables. We proceed and interpret the result on the basis of the given hypothesis.
H1: There is significant relationship between consumer buying behavior and visual elements of package in the market of FMCG (milk products) in India.
The Structural equation modeling for the hypothesis can be shown by a path diagram as follows:
(Source: Self developed)
To test this null hypothesis, we establish a multiple regression model where one of the indicators of buying behavior of consumers is taken as the dependent variable and the packing attributes are taken as the explanatory variables. This is shown in the table below-
TABLE 2: REGRESSION ANALYSIS
Dependent variable Explanatory variables significance
Buying Quantity for milk products Packaging materials .220
Packaging influence in buying product .927
Packaging is necessary .523
Packaging helps in identifying the product .352
Priority towards packaging .807
Color of Packet .404
Characteristics of Packaging .413
Do you Check the information on packet while buying the FMCG product .674
REGRESSION CO-EFFICIENT= R SQUARE=.039
ADJUSTED R SQUARE=.041
P VALUE=.880
The regression coefficient i.e. R square has a very low value displaying a weak regression model as well as the p value is also insignificant which shows the regression showing the overall significance of the packaging attributes upon the buying behavior cannot be considered to be strong or upto the mark. Moreover the individual significance for each of the explanatory variables has also been found to be insignificant.
Thus it can be concluded that the overall impact of the packaging attributes upon the buying behavior of consumers is not upto the mark and cannot be considered for analysis. Overall significance is termed to be very low. Therefore, it becomes necessary to specifically focus on the individual packaging attributes to decide on the consumer purchasing behavior.
4.6 Individual Significance
The research objective also aims at finding out the significance and relevance of each of the packing attributes and its relation with the buying behavior of consumers. We proceed and interpret the results on the basis of the given hypothesis:
H2: There is a relationship between buying behavior and background (culture) of packaging of FMCG milk products in India.
The SEM for the present hypothesis is given as follows:
Y = ” + ”1 (X1) + ”2 (X2) + ”3 (X3) + ”4 (X4) + ”
Where, Y= How often do you buy
” is intercept term
”1, ”2, ”3, ”4 denotes the coefficient terms
X1, X2, X3, X4 denote Priority towards packaging, Packaging helps in identifying a product, Is packaging necessary part and Packaging influences to buy a product respectively.
” is the error term
To test this hypothesis, we have performed a chi-square statistical test between the frequency of buying and the type of packaging. The result is shown in the table below-
TABLE 3: CHI SQUARE ANALYSIS BETWEEN BUYING BEHAVIOR AND PACKAGING ATTRIBUTES
VARIABLE 1 VARIABLE 2 CHI SQUARE VALUE P VALUE SIGNIFICANCE
How often do you buy Priority towards packaging 17.38 .1 Less significant
How often do you buy Packaging helps in identifying a product 15.36 .223 insignificant
How often do you buy Is packaging necessary part 8.525 .482 Insignificant
How often do you buy Packaging influences to buy a product 8.43 .753 Insignificant
As we have a high Chi Square value and the p-value is found to be significant but at 10% level, we can reject the hypothesis but as the difference is not highly significant we can claim that the frequency of buying to some extent depends upon the background of packaging.
For the second result although the Chi Square value is high but the p value denotes that the relation is insignificant we accept the claim that frequency of buying depends upon identification of a product through packaging.
The third statistical test with a moderate Chi Square Value and insignificant p value indicates that packaging is a necessary element when it comes to frequency of Buying.
For the fourth result along with a moderate Chi Square value the insignificant p value compels us to accept the claim that Packaging influences a consumer to buy a product more frequently
We take up another variable indicating the buying behavior of consumer and perform an ANOVA test to find out whether the buying behavior of consumers are influenced by the background of packaging
TABLE 4: ANOVA BETWEEN BUYING BEHAVIOR VARIABLES AND PACKAGING ATTRIBUTES
VARIABLE 1 VARIABLE 2 F VALUE P VALUE SIGNIFICANCE
Buying Quantity of milk products Priority towards packaging .263 .769 Insignificant
Buying Quantity of milk products Packaging helps in identifying a product .067 .935 insignificant
Buying Quantity of milk products Is packaging necessary part .317 .729 Insignificant
Buying Quantity of milk products Packaging influences to buy a product 1.249 .291 Insignificant
When buying quantity is related to the priority towards packaging through the ANOVA test(F test), it has been found that the result is insignificant showing that buying quantity does not differ across the type of packaging or quantity does not vary as per the priority of packaging.
When identification of a product based on packaging is tested across quantity of buying hardly any significant difference has been found showing no such impact upon the buying quantity.
As per the statistical results, packaging is not considered to be a necessary part for quantity of buying as it shows no significant difference
However the comparatively high value of F test does indicate that packaging influence the quantity of buying milk product although to very little extent as we still have insignificant value of F test.
H3: There is a relationship between buying behaviour and quality of packaging of FMCG milk products) in India.
The SEM for the present hypothesis is given as follows:
Y = ” + ”1 (X1) + ”2 (X2) + ”3 (X3) + ”4 (X4) + ”
Where, Y= How often do you buy
” is intercept term
”1, ”2, ”3, ”4 denotes the coefficient terms
X1, X2, X3, X4 denote Characteristics for Packaging milk, Priority towards packaging, Packing materials respectively.
” is the error term
To test this hypothesis we select the variables indicating buying behavior of consumers (How often do You buy and Quantity purchased) and packaging quality attributes. Then we perform statistical Chi Square test as well as F test to find out the desired relation. The results are displayed in the hypothetical below-
TABLE 5: CHI SQUARE ANALYSIS BETWEEN BUYING BEHAVIOR VARIABLES AND QUALITY OF PACKAGING OF FMCG PRODUCTS
VARIABLE 1 VARIABLE 2 CHI-SQUARE VALUE P VALUE SIGNIFICANCE
How often do you buy Characteristics for Packaging milk 9.353 .673 insignificant
How often do you buy Priority towards packaging 17.378 .1 Less significant
How often do you buy Packing materials milk 6.0 .913 Insignificant
The frequency of buying is affected by the packaging characteristics of milk as revealed by the insignificant p value and a moderate chi square value which compels us to accept the null hypothesis. Thus the consumer does buy milk frequently being attracted by the packaging characteristics of milk.
On the contrary we find that the consumer while buying milk keeps in mind the eco-friendly technologies and protective packaging etc and thus his frequency of purchasing milk is somewhere affected by the priority towards packing as shown by the significant p value (at 10% level ) and high Chi Square value
However it is found that the material used for packaging milk does affect consumers anyhow and hence it plays a role in the number of times consumers’ buying milk. We can prove this through the insignificant p value but the low Chi Square value makes the extent of this relation questionable.
Next we also consider the buying quantity by the consumer as an indicator of buying behavior and perform a F test with the packaging quality attributes.
TABLE 6: ANOVA BETWEEN BUYING QUANTITY PURCHASED AND PACKAGING QUALITY
VARIABLE 1 VARIABLE 2 F TEST VALUE P VALUE SIGNIFICANCE
Quantity of milk purchased Packaging characteristics milk 1.136 .325 insignificant
Quantity of milk purchased Packaging characteristics butter .163 .850 insignificant
Quantity of milk purchased Priority towards packaging .263 .769 insignificant
Quantity of milk purchased Packaging material milk 1.495 .228 insignificant
Quantity of milk purchased Packaging material butter 2.9 .059 significant
From the analysis above the low value of F statistic and insignificant p value shows there is hardly any difference in the quantity of milk purchased due to packaging characteristics of milk and also hardly any difference in the quantity of butter purchased due to the packaging characteristics of butter
As far as packaging material is concerned, for quantity of milk purchased its packaging material hardly shows any difference but for butter its packaging material creates a difference in the quantity of butter purchased which can be interpreted by the significant p value and a moderate F value
However the insignificant p value and low F value shows that the eco-friendly and protective packaging has no difference when it comes to quantity of milk purchased. It remains the same throughout
H4: There is a relationship between buying behavior and material of packaging of FMCG milk products) in India.
In the present hypothesis two Structural equation models have been created. The SEM1 for the present hypothesis is given as follows:
Y1 = ”1 + ”11 (X11) + ”22 (X22) + ”33 (X33) + ”44 (X44) + ”1
Where, Y1= Buying factor FMCG product
”1is intercept term
”11, ”12, ”13, ”14denotes the coefficient terms
X11, X22, X33, X44 denote Characteristics for Packaging milk, Priority towards packaging, Packing materials respectively.
”1 is the error term
The SEM2 for the present hypothesis is given as follows:
Y2 = ”2 + ”21 (X21) + ”22 (X22) + ”23 (X23) + ”24 (X24) + ”
Where, Y2= How often do you buy
”2 is intercept term
”21, ”22, ”23, ”24denotes the coefficient terms
X21, X22, X23, X24denote Characteristics for Packaging material milk, Packaging material flavored milk, Packaging material butter respectively.
”2 is the error term
To test this specific hypothesis we perform a Chi Square test as well as F test between the Packaging material variable and the indicators of buying behavior of consumer. The results are shown and interpreted as follows-
TABLE 7: CHI SQUARE ANALYSIS BETWEEN BUYING BEHAVIOR VARIABLES AND PACKAGING MATERIALOF FMCG PRODUCT
VARIABLE 1 VARIABLE 2 CHI SQUARE VALUE P VALUE SIGNIFICANCE
Buying factor FMCG product Packaging material milk 30.734 .059 significant
Buying factor FMCG product Packaging material flavored milk 39.160 .006 significant
Buying factor FMCG product Packaging material butter 18.472 .556 insignificant
How many times you buy Packaging material milk 6.069 .913 insignificant
How many times you buy Packaging material flavored milk 7.443 .827 insignificant
How many times you buy Packaging material butter 30.020 .003 significant
‘ From the statistical relation between buying factor and packaging material for milk the significant p value and high chi square value makes us reject the null hypothesis as it shows a significant difference and no such relation can be established
‘ The highly significant p value as well as high Chi square makes it significant enough to reject the null hypothesis and claim that there lies a significant difference for the packaging material of flavored milk and buying factor
‘ For the packaging material of butter we accept the null hypothesis as well as the relation between the two due to the insignificant p value and moderate value of Chi square
‘ Insignificant p value and low chi square accepts the null hypothesis and the relation between the frequency of purchase and the packaging material of milk
‘ Even for the packaging material of flavored milk and frequency of its purchase we accept the null hypothesis due to the insignificant p value and low chi square value and thus claim the relation
‘ We reject the null hypothesis owing to the highly significant p value and equally high chi square value and does rule out the existence of any such relation between frequency of purchase of butter and its packaging material.
TABLE 8: ANOVA BETWEEN QUANTITY PURCHASED AND PACKAGING MATERIAL FOR FMCG MILK
VARIABLE 1 VARIABLE 2 F TEST VALUE P VALUE SIGNIFICANCE
Quantity consumed for milk Packaging material for milk 1.495 .228 insignificant
Quantity consumed for flavored milk Packaging material for flavored milk .310 .818 insignificant
Quantity consumed for butter Packaging material for butter .541 .584 insignificant
‘ The insignificant p value and the low F value shows that there is hardly any difference in the quantity of milk purchased due to its packaging material
‘ Similarly for flavored milk also we cannot claim any significant difference in the quantity purchased owing to its packaging material by considering the insignificant p value and a low F value as well
‘ Even the quantity of butter purchased and consumed shows no significant difference for its packaging material as it also has an insignificant p value and very low F statistic value
H5: There is a relationship between buying behaviour and information of packaging of FMCG milk products) in India
The SEM1 and SEM2 for the present hypothesis is given as follows:
SEM1
Y1 = ”1 + ”11 (X11) + ”1
Where, Y1 = How often do you buy
”1is intercept term
”11 denotes the coefficient terms
X11 denote Information on packaging FMCG product
”1 is the error term
SEM2
Y2 = ”2 + ”21 (X21) + ”2
Where, Y2 = Buying factor FMCG product
”2 is intercept term
”21 denotes the coefficient terms
X21denote Information on packaging FMCG product
”2 is the error term
To what extent packaging information about the FMCG product influences the buying behavior of consumers and vice versa is tested here with the help of statistical Chi Square test and F test between the indicators of buying behavior and the information on packaging variable
TABLE 9: CHI SQUARE ANALYSIS BETWEEN BUYING BEHAVIOR VARIABLES AND INFORMATION ON PACKAGING OF FMCG
VARIABLE 1 VARIABLE 2 CHI SQUARE VALUE P VALUE SIGNIFICANCE
How often do u buy Information on packaging FMCG product 18.849 .102 significant
Buying factor FMCG product Information on packaging FMCG product 15.423 .752 insignificant
‘ The significant p value and the moderate chi square value makes us reject the null hypothesis as frequency of purchase is not as much affected by the information on packaging FMCG product
‘ Buying factor may be affected by the information on packaging FMCG product which is displayed by the insignificant p value and the moderate chi square value and thus we also accept the null hypothesis in this case
TABLE 10: ANOVA BETWEEN QUANTITY PURCHASED AND INFORMATION ON PACKAGING OF FMCG
VARIABLE 1 VARIABLE 2 F TEST VALUE P VALUE SIGNIFICANCE
Quantity of milk consumed Information on packaging FMCG product .792 .533 insignificant
Quantity of flavored milk consumed Information on packaging FMCG product .408 .802 insignificant
Quantity of butter consumed Information on packaging FMCG product .522 .720 insignificant
‘ Information on packaging FMCG product hardly shows any significant difference in quantity purchased and consumed for milk as shown by the insignificant p value and very low F statistic value
‘ For flavored milk also information on packaging FMCG product does not create any significant difference in its quantity purchased as revealed by the insignificant p value and the very low F value
‘ The same phenomenon can be observed for quantity of butter purchased and consumed as well which does not differ due to the information on packaging FMCG product as shown by the insignificant p value and a low value of F statistic
H6: There is a relationship between buying behavior and innovation of packaging of FMCG milk products) in India
In the present hypothesis two Structural equation models have been created. The SEM1 for the present hypothesis is given as follows:
Y1 = ”1 + ”11 (X11) + ”22 (X22) + ”33 (X33) + ”44 (X44) + ”1
Where, Y1= Buying factor FMCG product
”1is intercept term
”11, ”12, ”13, ”14denotes the coefficient terms
X11, X22, X33, X44 denote Priority towards packaging, Packaging characteristics for milk, Packaging characteristics for flavored milk and Packaging characteristics for butter respectively.
”1 is the error term
The SEM2 for the present hypothesis is given as follows:
Y2 = ”2 + ”21 (X21) + ”22 (X22) + ”23 (X23) + ”24 (X24) + ”
Where, Y2= How often do you buy
”2 is intercept term
”21, ”22, ”23, ”24denotes the coefficient terms
X21, X22, X23, X24denote Priority towards packaging, Packaging characteristics for milk, Packaging characteristics for flavored milk and Packaging characteristics for butter respectively.
”2 is the error term
Whether innovation on packaging share any significant relation with the buying behavior of consumers can be tested statistically with the help of t test and F test between the packaging attributes displaying innovation and the indicators of buying behavior of consumer. Data analysis and interpretation is given below
TABLE 11: CHI SQUARE ANALYSIS BETWEEN BUYING BEHAVIOR VARIABLES AND INNOVATION ON PACKAGING
VARIABLE 1 VARIABLE 2 CHISQUARE VALUE P VALUE SIGNIFICANCE
How often do you buy Priority towards packaging 17.378 .136 significant
How often do you buy Packaging characteristics for milk 20.225 .320 insignificant
How often do you buy Packaging characteristics for flavored milk 18.750 .407 insignificant
How often do you buy Packaging characteristics for butter 14.672 .475 insignificant
Buying factor FMCG product Priority towards packaging 22.133 .333 insignificant
Buying factor FMCG product Packaging characteristics for milk 31.782 .378 insignificant
Buying factor FMCG product Packaging characteristics for flavored milk 33.879 .286 insignificant
Buying factor FMCG product Packaging characteristics for butter 37.052 .057 significant
‘ Innovations like eco friendly packaging and protective packaging does not have any significant relation with frequency of purchase milk products as evident from the significant p value and moderate chi square value for which we reject the null hypothesis
‘ Packaging characteristics like tetra pack and card boards etc do have an impact on the frequency of purchase as we accept the null hypothesis in this case owing to the insignificant p value and a moderate chi square test statistic
‘ Insignificant p value and a high chi square statistic shows that packaging characteristics for flavored milk does create a difference and is related to the frequency of its purchase
‘ Similarly packaging characteristics for butter do share a relation with its frequency of purchase as we accept the null hypothesis owing to the insignificant p value and moderate chi square statistic value
‘ We accept the null hypothesis as well as the claim that buying factor for FMCG product do share a relation with packaging priority as evident from the insignificant p value and high chi square value
‘ We accept the null hypothesis as well as the claim that packaging characteristics for milk do create a significant difference and influences the buying factor FMCG product
‘ The null hypothesis is accepted owing to insignificant p value and we claim that packaging characteristics for flavored milk do share a relation with buying factor FMCG product
‘ We reject the null hypothesis owing to the insignificant p value and high chi square value and claim that packaging characteristics for butter do not influence the buying factor for FMCG product
H7: There is a relationship between buying behavior and colour of packaging of FMCG milk products in India.
SEM1
Y1 = ”1 + ”11 (X11) + ”1
Where, Y1 = How often do you buy
”1is intercept term
”11 denotes the coefficient terms
X11 denote packet color
”1 is the error term
SEM2
Y2 = ”2 + ”21 (X21) + ”2
Where, Y2 = Buying factor FMCG product
”2 is intercept term
”21 denotes the coefficient terms
X21denote packet color
”2 is the error term
This hypothesis may be tested statistically through t tests and the relation between indicators of buying behavior of consumer and the color of packaging may be examined. The results and interpretation are shown below
TABLE 12: CHI SQUARE BETWEEN BUYING BEHAVIOR VARIABLES AND PACKET COLOR
VARIABLE 1 VARIABLE2 CHI-SQUARE VALUE P VALUE SIGNIFICANCE
How often do you buy Packet color 6.271 .902 insignificant
Buying factor FMCG product Packet color 30.337 .065 significant
‘ Packet color may be attractive enough to influence the frequency of purchase as evident from the insignificant p value for which the null hypothesis is accepted
‘ However buying factor may not have any relation with the packet color as evident from the significant p value and a high chi square value for which the null hypothesis is rejected
TABLE 13: ANOVA BETWEEN QUANTITY PURCHASED AND PACKET COLOR
VARIABLE1 VARIABLE2 F TEST VALUE P VALUE SIGNIFICANCE
Quantity of milk consumed Packet color 2.680 .035 significant
Quantity of flavored milk consumed Packet color 2.006 .098 significant
Quantity of butter consumed Packet color 1.212 .310 insignificant
‘ Packet color does not share any relation with the quantity of milk consumed as evident from the significant p value for which we reject the null hypothesis
‘ Similarly for flavored milk also quantity of flavored milk consumed does not have any relation with packet color and thus we reject the null hypothesis owing to the significant p value
‘ However we accept the null hypothesis and can claim that packet color is related to the quantity purchased for butter as the p value is insignificant
4.7 Summary
In order to provide a concluding remark on the entire analysis, it is important to identify the influence of packaging attributes on the consumer learning. The last part of our analysis for this topic aims to find out whether the packaging attributes share any relation with consumer awareness and learning. If it is related then to what extent has packaging helped to increase consumer awareness and learning. We hypothesize that –
‘ There is a relation between consumer awareness for a product and information about the product on the packet.
‘ The buying factor for the FMCG product also relates to information on packet about the FMCG product.
‘ The frequency of purchase is also assumed to be related to the information given on the packet of the FMCG product.
‘ To test this phenomenon we perform certain statistical test to find out the relation between the indicators of buying behavior of consumer and the information on packaging. The results and interpretation are shown below-
TABLE 14: CHI SQUARE BETWEEN BUYING BEHAVIOR VARIABLES AND INFORMATION ON PACKAGING
VARIABLE1 VARIABLE2 CHI-SQUARE VALUE P VALUE SIGNIFICANCE
Are you aware about the FMCG product Do you check the product information on the packet 1.837 .766 Insignificant
Buying factor for FMCG product Do you check the product information on the packet 15.423 .752 Insignificant
How often do you buy Do you check the product information on the packet 18.489 .102 Significant
‘ We accept the hypothesis owing to the insignificant p value and low value of chi square statistic and accept the claim that consumer learning is related to the information given on the packet of the FMCG product
‘ The insignificant p value and the moderate Chi Square value compels us to accept the null hypothesis and accept the claim that buying factor for an FMCG product is related to the information given on the packet for an FMCG product
‘ However when it comes to the relation between frequency of purchase and the information given on the packet of FMCG product makes us reject the null hypothesis as the p value is found to be insignificant. Thus we can claim the frequency of purchase for milk products is not related to the information given on the packet of FMCG product.
Thus we can conclude that consumer learning and awareness is somewhat affected by the information given on the packet of FMCG product. It’s a kind of direct relation because increased information given on the packet of the FMCG product is expected to increase consumer learning and awareness.
‘
Chapter 5: Conclusion and Recommendations
5.1 Conclusion
The present section focuses on different findings and outcomes obtained from the research study. The researcher has created a link between each research objective and the conclusion. Additionally, various recommendations have been made following which the marketing team and marketing managers can develop packaging characteristics of the products.
5.2 Linking objectives with the conclusions
To check the effect of packaging elements on the buying behavior of consumers
After conducting different statistical tests, it is found that packaging elements has positive impact on purchasing behavior of the consumers. The consumers consider all the visual elements including information on packets, color of the packaging, quality of the packaging material and characteristics of packaging before buying the product. However, the packaging elements do not have significant impact on the quantity purchased of the milk products by the consumers.
To measure the relative impact of each packaging element on the consumer
The individual packaging element has positive impact on the consumer for purchasing milk products. It is observed that the consumers are influenced by the packaging material and make a purchase decision. Moreover, consumers prefer to buy milk products which have eco friendly and easy to use packaging system. Therefore, packaging element is important factor that create impact on purchase decision of the consumers. Additionally it is also found that quality of packaging is also important. Consumers prefer to buy cardboard box and tetra pack to carry the milk drinks and products safely to their home. Thus it can be concluded that each packaging element has positive impact on consumer purchasing decision.
To study and identify the elements which should be highlighted while designing the packaging for the companies in India (New Delhi)
From the above analysis it can be stated that the marketing team and managers should focus on the quality of packaging material of the milk products. Moreover, they should prepare the packaging structure in eco friendly manner. Additionally, the color of the milk products is also an important factor to consider. Attractive color can encourage the consumer to buy. The packaging system should be ideal for the consumers so that they can use the item with ease.
To know the factors which influence consumer’s learning after reading the packaging information on milk product
It is observed that consumer learning is positively affected by the information given on the label of the packages of the product. The consumers read the information available on the packets before making purchase decision. Consumer learning and awareness is influenced by the information related to ingredients of the product, dietary information, and the process to use the product, manufacturing date and expiration date of the product. Thus it is concluded that information available on the packet of the product is very important to influence the consumer purchase decision.
5.3 Recommendation
Based on the conclusion drawn from the above study, following recommendations can be made:
‘ It is recommended to the marketing and business team that they should focus on improving the packaging characteristics. Packaging of the products is crucial for brand equity and product differentiation. Moreover, good packaging can attract the customers and hence it is important to standardize the packaging quality ‘of the products.
‘ The marketing team should give special attention to the characteristics of the packaging material. The consumers prefer to have a good packaging system so that their product does not get misplaced. It is found that tetra pack and the packages with cardboard box can increase the frequency of purchase of the milk product. Therefore, it is recommended to improve the packaging characteristics as well as the quality so that consumers can carry the milk products with ease.
‘ Information on packaging material is another important factor to increase the frequency of purchase of the milk products. The manufacturers of new products should describe the ingredients used in the product, date of manufacturing, date of expiry, dietary information and how to use the product. The consumers should be guided properly by the label and information available on the packet. The value of the product has to be highlighted on the label of packaging. This is because the consumers read the information available on the packet of the milk products. Therefore, appropriate information can motivate and encourage the consumers to buy that product. This can also help to increase the consumer learning level and awareness about the product.
‘ It is recommended that the marketing team should focus on selecting the color of packets especially for butter. Attractive color of butter packets can attract the customers to buy. However, the packet color for flavored milk and normal milk drinks is not very much important.
‘ It is also important to mention that consumers are very much concern about the type of packaging of the milk products. Most of the customers prefer eco friendly packaging characteristics that must be easy to use. Therefore, it is recommended for the marketing team that they should develop the packaging material in eco friendly manner as well as it should be easy to use. As people are becoming more cautious towards the nature, this packaging quality can significantly increase the number of purchase of the milk products.
‘ The definitive success of the organization depends on the sales and marketing for a product. The sales and marketing of the product is again depends on the accuracy of packaging of the milk product. Eventually, accuracy of the packaging depends on appropriate decision with regards to the elements and materials chosen for packets. Therefore, it is recommended that marketing team should select the packaging material and elements effectively.
The producers of milk products in New Delhi should consider the above mentioned factors to offer their products and develop their marketing strategy effectively.
5.4 Limitation of the Study
The study required large number of data to study the research city (New Delhi) due to time constraints it became difficult to collect big data. Due to insufficient amount of time the study did not collect large amount of data. There was limited amount of financial resources for this study. It restricts the researcher from implementing several advanced software to analyze numerical data.