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International Journal of Engineering and Management Research
Analysing Impact of Packaging Design on Impulsive Buying using
Regression Model
Deepak Dhariyal1, Manoj Singh Negi2, Dr. Hem Chandra Kothari3
1,2,3
Assistant Professor, Amrapali Group of Institutes, Haldwani, Uttarakhand, INDIA
ABSTRACT
Packaging has an important role in marketing
communication and it has a significant influence on consumer
buying decision. Manufactures and marketers have set the
packaging as a part of their marketing strategy. Generally
unplanned buying denotes impulse purchase decision which is
crucial aspect of buying behavior especially when discussing
about FMCG sector. Every manufacturer and marketer puts
all its efforts to attract buyer’s attention and converts it into
sale whereas the buyer never intended to buy that particular
product. This study aims to investigate the impact of
packaging design on impulsive buying of Cadbury Chocolates
at Vishal Mega Mart, Nainital Road Haldwani, Uttarakhand.
Total 239 samples have been collected and data analysed
using factor analysis and regression model. The result of the
research shows that the packaging design affects impulsive
buying. Two factors i.e. brand name and colour
significantly influence the impulsive buying of
Cadbury chocolate by the customers.
Keywords-- Packaging, Impulsive Buying, Factor
Analysis, Regression.
I. INTRODUCTION
Packaging is one such tool where the marketers
can convey their message straight to its potential
customers. For many brands the packaging leads the way
to a successful integral branding communication effort and
establishing the brand image. This study indicates the
atmosphere of the store directly affected the mood of the
consumer, which became a big factor in their purchasing
behavior. The results suggested customers in a pleasant
store atmosphere are likely to spend more money on the
products they liked. This effect was only due to the
customer’s mood during the time of purchase. Vishal
MegaMart is a leading Mall situated in Nainital Road,
Haldwani having strong number of customers. In its early
days, Vishal’s annual profit was up to the mark, and it
kept increasing ever since. The profit increase shows that,
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Volume-7, Issue-1, January-February 2017
Page Number: 200-205
although Vishal is not a common store in city, Vishal sale
goes high and high every year. This indicates a positive
response from consumers. The most enchanting concept of
marketing is to identify the understanding of the logic of
consumers. Despite costly hazards of impulse shopping,
buyers are increasingly making their buying decisions in
markets. The competitive markets depend on the
significant role of package as one of the tools of the sales
promotion. Packaging design appeals consumer’s attention
to a special trade mark and encourages the product image,
and affects consumer’s views about product. Visual
elements such as the color, the quality and the overall
attractiveness play a major role in influencing the
customer. The visual elements connote the product for
many customers in situations where they have low
information or when they are hard pressed for time. In
such cases, the consumer totally relies on the recall value
of the packaging and makes the decision in an impulsive
manner. The big challenge that a marketer in today’s word
faces is to translate the attraction from the packaging to a
purchasing decision. In a modern retail store, consumers
directly face a meeting point where various brands are
displayed. Packaging plays an important role at this
meeting point which is known as the point of purchase, as
this is the most important point of interaction between
brands and consumers; it is at this stage that consumers
decide which brands to purchase. Packaging is the main
instrument of communication with which companies can
deliver brand messages.
The main aim of this research is to examine the
relationship between consumer buying behaviour during
the presence of ‘attractive’ packaging in an impulse
purchasing situation. The study is limited to Cadbury
Chocolates in Vishal retail store situated in Haldwani.
This research topic will heavily focus on
identifying the different aspects of packaging and factors
associated in impulse buying decision and exploring how
marketers capitalizes on those aspects in formulating the
marketing campaign to grab its market share.
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II. REVIEW OF LITERATURE
Smith, Pual Russell and Taylor, Jonathan (2008)
Examine that words must be transformed into images.
Color often gives the viewer a secret and can control the
emotions. Russia’s Pedagogical Institute has found that
most people can feel color and can create a physiological
response. Color is considered as one of the package
graphics elements.
According to Rettie and Brewer (2000) the layout
has many problems as they reported the recollection of
packaging parts. As a reason, Rettie and Brewer
discovered that packaging parts were remembered in a
different way according to their placement on the
packaging design.
MacInnis and Price (1987) assumed that
consumers prefer to see a product image on a package
more than imagine how a product looks, tastes, feels,
smells, and sounds. In ancient world, illustration were the
essentially method of featuring an image on packaging. In
contrast, the invention of photography, and the
development of printing technologies resulted in
illustration being used less repeatedly.
Silayoi and Speece (2004) believe that lack of
graphics in package can waste the sale for many
customers. As well as appealing graphics increases the
sales as much as possible. For example, the colorful
package can appeal consumers to buy.
According to Rook, D. W. (1987) Typography
considers the heart of packaging design as a result; it is
primarily concerned with giving out information. In
addition to products have names, description, uses,
instructions, customer care information, and ownership
details. The designer’s skill lies in matching typeface
selection to function.
Bone, P. F., & France, K. R. (2001) classified the
size and shape as the second kind of Visual components.
According to the authors, the size and shape of package
attract consumer evaluation and decisions, such as
graphical components, but not as usual in easily uncovered
ways. The size and shape are much associated to usability.
According to Beatty, S. E. and Ferrell, M. E.
(1998) the product information is considered the most
essential core that customers are looking for in many
different sources. Customer is always expected a valuable
and rich information to make purchase decision.
III. OBJECTIVE
Table 1: Factor Analysis
Sl No. Variables of the Study
Packaging Design Variable
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This study aims to examine the association
between packaging design of Cadbury Chocolates &
impulsive buying of customers.
HYPOTHESIS:
To attain the set objective of the study the
following null hypothesis has been formed and tested:
Ho: There is no significant influence of packaging design
on impulsive buying.
Ha: There is significant influence of packaging design on
impulsive buying.
IV. METHODOLOGY
The study uses the quantitative approach.
Respondents are walk in customers of Vishal Mega Mart at
Nainital Road, Haldwani, who have purchased Cadbury
Chocolates impulsively in the past ten days. A
questionnaire has been developed that consists two
sections- section A contains demographic variables and
section B contains a Likert scale and administered on the
customer. The samples are collected using the convenient
sampling method. Customer’s response on packaging
design and impulsive buying have been taken in five point
likert scale ranging from 1 for strongly disagree to 5 for
strongly agree.
V. DATA COLLECTION AND
STATISTICAL TOOLS
Data collected through the questionnaire has been
given a proper code in MS Excel sheet and processed
through the statistical software SPSS-22. Proper statistical
tools i.e. factor analysis and regression has been worked
out.
VI. DATA ANALYSIS, RESULT AND
DISCUSSION
This section of the study deals with data analysis,
interpretation of results and discussion in following lines:
IDENTIFICATION OF FACTORS: A FACTOR
ANALYSIS
Factor analysis has been worked out to reduce the
dimension of the data, where total 12 variables included in
the questionnaire and divided in to four factors named
brand name, color, shape & size and product information.
Description of the factor analysis, sample adequacy and
significance of Sphericity test is given below:
Factor
Loading
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Brand name
1 Brand name of Cadbury Chocolates packaging draws attention .721
2 Brand name of Cadbury Chocolates packaging reflects global presence .773
3 Brand name of Cadbury Chocolates packaging is better if compared to others .700
Brand name of Cadbury Chocolates packaging is easily readable from 5-meter
.772
4 distance
5 Brand name of Cadbury Chocolates inspires trust for the product .653
Color
6 Packaging color on Cadbury Chocolates draws attention .676
Packaging color composition on Cadbury Chocolates is very easy to remember
.578
7 every time
8 Packaging color composition stands out on the best compared to others .616
9 Colored chocolate bar image on Cadbury Chocolates often seeks your attention .727
Shape & Size
10 Packaging shape of Cadbury Chocolates always seeks attention .825
11 Packaging sizes of Cadbury Chocolates suits your needs .529
Product Information On Packaging Label
Product information on Cadbury Chocolates packaging is mentioned and
.934
12 described clearly

Table 2: KMO and Bartlett's Test

Kaiser-Meyer- Olkin Measure of Sampling Adequacy. .775
Bartlett's Test of Sphericity Approx. Chi-Square 543.313
Df 66
Sig. .000

Table 3: Total Variance Explained (Packaging Design Variable)

Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
Compone % of Cumulative % of Cumulative % of Cumulative
nt Total Variance % Total Variance % Total Variance %
1
3.331 27.759 27.759 3.331 27.759 27.759 2.864 23.869 23.869
2
1.481 12.342 40.101 1.481 12.342 40.101 1.873 15.611 39.480
3
1.098 9.153 49.253 1.098 9.153 49.253 1.125 9.378 48.858
4
1.043 8.695 57.949 1.043 8.695 57.949 1.091 9.090 57.949
5
.920 7.665 65.613
6
.783 6.522 72.136
7
.741 6.178 78.313
8
.705 5.874 84.188
9
.634 5.286 89.474

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10
.508 4.235 93.708
11
.402 3.352 97.060
12
.353 2.940 100.000

Fig1: Scree Plot

INFLUENCE OF PACKAGING ON IMPULSIVE After identifying four factors of packaging then

BUYING: next their influence on impulsive buying has been tested
using following multiple regression model:

Y= α + β1X1 + β2X2 + β3X3 + β4X4

Where Y stands for Impulsive Buying α = Constant
β1= Coefficient of Factor X1 X1= Brand Name
β2= Coefficient of Factor X2 X2= Color
β3= Coefficient of Factor X3 X3= Shape & Size
β4= Coefficient of Factor X4 X4= Product Information

Results / Output of the regression analysis are presented in following tables:

Table 4: Regression Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1
.670a .449 .267 5.24590

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Table 5: Results of ANOVA

Model Sum of Squares df Mean Square F Sig.

Regression
1021.992 4 255.498 19.284 .000b

Residual 6439.556 234 27.519

Total 7461.548 238
Table5: a. Dependent Variable: Impulsive Buying

b. Predictors: (Constant), F4, F3, F2, F1

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta T Sig.
(Constant)
39.464 2.464 16.017 .000
Brand Name .452 .090 .318 4.997 .000
X1 .255 .092 .207 2.692 .032
X2 .481 .259 .114 1.858 .064
X3
.144 .385 .023 .375 .708
X4
Table 6: Coefficients of Predictors

VII. INTERPRETATION
Table 4 shows that the prediction power of the
model is 44.9% as the model summery shows R square
value 0.449. This shows that all four factors explain 44.9%
variance of the dependent variable. Table 5 shows the F
value 19.284 along with P value 0.000. This infers there is
a significant difference among the factors for their
predictability and also indicates that the model is
statistically significant at 5 % level of significance. Table 6
presents the coefficient value of the factors including the
model and their corresponding F and P value. Results
show that Brand name and color factors have a significant
influence on impulsive buying. Whereas, remaining two
factors do not show any influence. On the basis of finding
of regression analysis we can infer that 1% change on
factor brand name will cause for a change of 0.452% in
impulsive buying. Similarly 1% change in factor color will
cause for a change of 0.255% in impulsive buying.
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VIII. CONCLUSION
Packaging design play a vital role on the
impulsive buying of the customer. To examine whether
this relationship does exists or not in case of Cadbury
chocolate, this study identify four variables as independent
variables i.e. brand name, colour, shape and size, and
product information and then checks their impact on
impulsive buying (dependent show). On the basis of the
findings, this study concludes that out of the four factors
only two factors- Brand name (Underwood et al., 2001)
and color (Smith & Taylor, 2004) factors have a
significant influence on impulsive buying (Rita Kuvykaite
2009). Though, the findings are product and place specific
therefore, can not be generalize even after the implications
are of two folds. First, it will contribute to the existing
literature on related field and second it will give a brief
knowledge to the existing and potential producers in the
market.
REFERENCES
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APPENDIX
Questionnaire
Kindly give your response for the following statements:
S. No ITEMS SD D N A SA
PACKAGING DESIGN
1 Brand name of Cadbury Chocolates inspires trust for the product
2 Packaging color on Cadbury Chocolates draws attention
3 Packaging color composition on Cadbury Chocolates is very easy to remember every time
4 Packaging sizes of Cadbury Chocolates suits your needs
5 Brand name of Cadbury Chocolates packaging draws attention
6 Brand name of Cadbury Chocolates packaging reflects global presence
7 Product information on Cadbury Chocolates packaging is mentioned and described clearly
8 Packaging color composition stands out on the best compared to others
9 Colored chocolate bar image on Cadbury Chocolates often seeks your attention
10 Packaging shape of Cadbury Chocolates always seeks attention
11 Brand name of Cadbury Chocolates packaging is better if compared to others
12 Brand name of Cadbury Chocolates packaging is easily readable from 5-meter distance
IMPULSIVE BUYING
1 Decision to buy Cadbury Chocolates emerges unexpectedly
2 Interest to buy Cadbury Chocolates emerges suddenly
3 Cadbury Chocolates are purchased without thinking much
4 Packaging design of Cadbury Chocolates emerges urge to buy
5 Urge to buy after accidentally seeing Cadbury Chocolates
6 After visual contact, feeling that Cadbury Chocolates is the one what I need
7 Purchasing Cadbury Chocolates can improve my mood
8 Cadbury Chocolates is purchased without fear of toothache
9 No problem in adjusting other shopping plans in order to buy Cadbury Chocolates
10 Never feel guilt in buying Cadbury Chocolates

SD- Strongly Disagree, D- Disagree, N- Neutral, A- Agree, SA- Strongly Agree

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