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net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962

Volume-7, Issue-1, January-February 2017


International Journal of Engineering and Management Research
Page Number: 200-205

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 although Vishal is not a common store in city, Vishal sale


Packaging has an important role in marketing goes high and high every year. This indicates a positive
communication and it has a significant influence on consumer response from consumers. The most enchanting concept of
buying decision. Manufactures and marketers have set the marketing is to identify the understanding of the logic of
packaging as a part of their marketing strategy. Generally consumers. Despite costly hazards of impulse shopping,
unplanned buying denotes impulse purchase decision which is
buyers are increasingly making their buying decisions in
crucial aspect of buying behavior especially when discussing
about FMCG sector. Every manufacturer and marketer puts markets. The competitive markets depend on the
all its efforts to attract buyer’s attention and converts it into significant role of package as one of the tools of the sales
sale whereas the buyer never intended to buy that particular promotion. Packaging design appeals consumer’s attention
product. This study aims to investigate the impact of to a special trade mark and encourages the product image,
packaging design on impulsive buying of Cadbury Chocolates and affects consumer’s views about product. Visual
at Vishal Mega Mart, Nainital Road Haldwani, Uttarakhand. elements such as the color, the quality and the overall
Total 239 samples have been collected and data analysed attractiveness play a major role in influencing the
using factor analysis and regression model. The result of the customer. The visual elements connote the product for
research shows that the packaging design affects impulsive
many customers in situations where they have low
buying. Two factors i.e. brand name and colour
significantly influence the impulsive buying of information or when they are hard pressed for time. In
Cadbury chocolate by the customers. such cases, the consumer totally relies on the recall value
of the packaging and makes the decision in an impulsive
Keywords-- Packaging, Impulsive Buying, Factor manner. The big challenge that a marketer in today’s word
Analysis, Regression. 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
I. INTRODUCTION displayed. Packaging plays an important role at this
meeting point which is known as the point of purchase, as
Packaging is one such tool where the marketers this is the most important point of interaction between
can convey their message straight to its potential brands and consumers; it is at this stage that consumers
customers. For many brands the packaging leads the way decide which brands to purchase. Packaging is the main
to a successful integral branding communication effort and instrument of communication with which companies can
establishing the brand image. This study indicates the deliver brand messages.
atmosphere of the store directly affected the mood of the The main aim of this research is to examine the
consumer, which became a big factor in their purchasing relationship between consumer buying behaviour during
behavior. The results suggested customers in a pleasant the presence of ‘attractive’ packaging in an impulse
store atmosphere are likely to spend more money on the purchasing situation. The study is limited to Cadbury
products they liked. This effect was only due to the Chocolates in Vishal retail store situated in Haldwani.
customer’s mood during the time of purchase. Vishal This research topic will heavily focus on
MegaMart is a leading Mall situated in Nainital Road, identifying the different aspects of packaging and factors
Haldwani having strong number of customers. In its early associated in impulse buying decision and exploring how
days, Vishal’s annual profit was up to the mark, and it marketers capitalizes on those aspects in formulating the
kept increasing ever since. The profit increase shows that, marketing campaign to grab its market share.

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II. REVIEW OF LITERATURE This study aims to examine the association


between packaging design of Cadbury Chocolates &
Smith, Pual Russell and Taylor, Jonathan (2008) impulsive buying of customers.
Examine that words must be transformed into images. HYPOTHESIS:
Color often gives the viewer a secret and can control the To attain the set objective of the study the
emotions. Russia’s Pedagogical Institute has found that following null hypothesis has been formed and tested:
most people can feel color and can create a physiological Ho: There is no significant influence of packaging design
response. Color is considered as one of the package on impulsive buying.
graphics elements. Ha: There is significant influence of packaging design on
According to Rettie and Brewer (2000) the layout impulsive buying.
has many problems as they reported the recollection of
packaging parts. As a reason, Rettie and Brewer IV. METHODOLOGY
discovered that packaging parts were remembered in a
different way according to their placement on the The study uses the quantitative approach.
packaging design. Respondents are walk in customers of Vishal Mega Mart at
MacInnis and Price (1987) assumed that Nainital Road, Haldwani, who have purchased Cadbury
consumers prefer to see a product image on a package Chocolates impulsively in the past ten days. A
more than imagine how a product looks, tastes, feels, questionnaire has been developed that consists two
smells, and sounds. In ancient world, illustration were the sections- section A contains demographic variables and
essentially method of featuring an image on packaging. In section B contains a Likert scale and administered on the
contrast, the invention of photography, and the customer. The samples are collected using the convenient
development of printing technologies resulted in sampling method. Customer’s response on packaging
illustration being used less repeatedly. design and impulsive buying have been taken in five point
Silayoi and Speece (2004) believe that lack of likert scale ranging from 1 for strongly disagree to 5 for
graphics in package can waste the sale for many strongly agree.
customers. As well as appealing graphics increases the
sales as much as possible. For example, the colorful V. DATA COLLECTION AND
package can appeal consumers to buy. STATISTICAL TOOLS
According to Rook, D. W. (1987) Typography
considers the heart of packaging design as a result; it is Data collected through the questionnaire has been
primarily concerned with giving out information. In given a proper code in MS Excel sheet and processed
addition to products have names, description, uses, through the statistical software SPSS-22. Proper statistical
instructions, customer care information, and ownership tools i.e. factor analysis and regression has been worked
details. The designer’s skill lies in matching typeface out.
selection to function.
Bone, P. F., & France, K. R. (2001) classified the
size and shape as the second kind of Visual components. VI. DATA ANALYSIS, RESULT AND
According to the authors, the size and shape of package DISCUSSION
attract consumer evaluation and decisions, such as
graphical components, but not as usual in easily uncovered This section of the study deals with data analysis,
ways. The size and shape are much associated to usability. interpretation of results and discussion in following lines:
According to Beatty, S. E. and Ferrell, M. E. IDENTIFICATION OF FACTORS: A FACTOR
(1998) the product information is considered the most ANALYSIS
essential core that customers are looking for in many Factor analysis has been worked out to reduce the
different sources. Customer is always expected a valuable dimension of the data, where total 12 variables included in
and rich information to make purchase decision. the questionnaire and divided in to four factors named
brand name, color, shape & size and product information.
III. OBJECTIVE Description of the factor analysis, sample adequacy and
significance of Sphericity test is given below:

Table 1: Factor Analysis


Sl No. Variables of the Study Factor
Loading

Packaging Design Variable

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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

VIII. CONCLUSION
VII. INTERPRETATION
Packaging design play a vital role on the
Table 4 shows that the prediction power of the impulsive buying of the customer. To examine whether
model is 44.9% as the model summery shows R square this relationship does exists or not in case of Cadbury
value 0.449. This shows that all four factors explain 44.9% chocolate, this study identify four variables as independent
variance of the dependent variable. Table 5 shows the F variables i.e. brand name, colour, shape and size, and
value 19.284 along with P value 0.000. This infers there is product information and then checks their impact on
a significant difference among the factors for their impulsive buying (dependent show). On the basis of the
predictability and also indicates that the model is findings, this study concludes that out of the four factors
statistically significant at 5 % level of significance. Table 6 only two factors- Brand name (Underwood et al., 2001)
presents the coefficient value of the factors including the and color (Smith & Taylor, 2004) factors have a
model and their corresponding F and P value. Results significant influence on impulsive buying (Rita Kuvykaite
show that Brand name and color factors have a significant 2009). Though, the findings are product and place specific
influence on impulsive buying. Whereas, remaining two therefore, can not be generalize even after the implications
factors do not show any influence. On the basis of finding are of two folds. First, it will contribute to the existing
of regression analysis we can infer that 1% change on literature on related field and second it will give a brief
factor brand name will cause for a change of 0.452% in knowledge to the existing and potential producers in the
impulsive buying. Similarly 1% change in factor color will market.
cause for a change of 0.255% in impulsive buying.
REFERENCES
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www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962

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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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