ABSTRACT
The project examines the effect of packaging on consumer buying behaviour with reference to Unilever Company. The study main objective is to know the impact of product packaging on consumer buying decision and also to know whether consumer rely on product packaging in necessary information concerning the use of the product. The primary source of data collection was used in gathering data from respondents. A structure questionnaire was designed by the researcher and validity by two experts from the statistics department was used to obtain data Chi-Square (X2) was used to test hypotheses formulated. It was discovered that package can attract with simple readable message about the product. The study concludes that cost of production has been as problem in production but, packaging without a quality, proper pricing, appropriate advertising and sound marketing plan is of little value. And recommends amongst others that they should be locked at as profit building of sales innovation rather than a cost cutting tool. In this sense, producer of omo should manage it and improve on their package design and package materials for the products.
CHAPTER ONE
INTRODUCTION
1.1 Background To The Study
The importance of packaging goods in product marketing has made it indispensable despite the high cost.
A package keep a product intact to final consumer package is very important even for perishable goods such as tomatoes. The importance of packaging can not be over emphasized, especially when one consider the severed function it performs in consumer attraction and satisfactions. The detergent industries represent a typical example of an important in the purchase decision. The package can be designed in such a way to attract attention in the shelves of supermarkets or stores.
Excellently designed packages are directly translated into difference in sales appeal. The study will examine the effect of packaging on consumer buying decision.
Product packaging influences consumers buying behavior by persuading them to buy the product. Companies that do not bother much about packaging because they believe once the product is of good quality, consumers will buy, perform abysmally because of lack of patronage from customers. Some firms think that they can cut corner by going for cheap and unattractive packaging. These type of firms soon realize after the costly mistake has been made that it is better to use good and attractive packaging. This Luke-warm attitude towards adhering to proper packaging has sent many companies into oblivion, because of low patronage from customers. This occur mostly when they fail to project the value of their products through attractive packaging. Poorly packaged products dissuades consumers from buying the product no matter the price. Poorly packaged products poses serious problem, since it will require enough explanation to persuade the customer to buy the product. Poorly packaged product is rated low and affects consumers, when considering values and price of the products. According to Lifu (2003), shabbily packaged product affects consumer buying decision and it does not appeal consumers. Packaging influences consumers to the extent that it determines whether a consumer comes back for more products or not.
Attractive packaging calls for repeated patronage from consumers, which enable the firm to generate profit. In the view of Best (2002), attractive packaging creates value by helping consumer decision process.
Product packaging is an essential marketing mix that projects firm brand image, which is designed to convey image of high quality (Ulrich, Campana & Malkewitz, 2010).Product packaging is the final stage of production and plays vital role in production activities. Attractive packaging can also induce impulse purchasing. Scot (2008) states that attractive packaging can attract customers to try product at first sight.
1.2 Statement Of Research Problem
Packaging is a very important element in marketing the product especially in the detergent industry.
This research will sensitize firms in the importance of adhering to good and alterative packaging and the consequences of not using them. When firms are sensitized on the importance of using attractive packaging, they will start packaging with outstanding design, which will easily draw customers attention. Firms will start to use vivid colour and pictures to convey appeal to customers in their product packaging. This action of the firm in using high quality attractive packaging will call for repeated purchase from customers and thus enable the firm to remain in business. Products with attractive packaging create market for firm than its promotional activities. Consumers most times are attracted at first sight to the packaging style of a product (Terblanche, 2006). This research will enable firms to create value on their products by using attractive packaging which will in turn influence customers purchasing choice. This study will also create awareness on the need for periodic assessment or reappraisal of packaging materials and design with respect to the present day need of the consumers. This will be done by firms product development section under marketing to suit consumers desire. Packaging materials become obsolete overtime and needs upgrading to current customer preference. When this critical aspect of projecting the value of product is ignored, it could lead to low sales turnover and back log of unsold inventory. This can strangulate the activities of the firm and lead to worm up of close shop. This will be a bygone after implementation of this research report. Apart from the vital function of upgrading the product value periodically, firms will come to recognize product packaging as an advertising medium and save money meant for advertising
The strategies importance of packaging has been in area of improving the product performance. Despite the indispensable value of packaging. The research is faced with the problem of knowing why money products are sold unpacked or poorly packed in our markets
1.3 OBJECTIVE OF THE STUDY
The objectives of this study work (study) are as follow;
- To know the impact of product packaging on consumer buying decision.
- To find out the effect of packaging on the total profit of the company.
- To identify what variable the consumer refers most in packaging in term of shape, size and colour.
- To know whether consumer rely on product packaging in necessary information concerning the use of the product.
- To study the strategies areas of information in designing product packaging.
- To understand consumer behaviour with regards to a product package. Packaging of product provide source of guide for the consumer in purchase process.
