Importance Of Product Packaging In Customer Perception

Customer Perception on Packaging

Discuss about the Business Capstone Project Responsibility.

The investigation introduced in the paper highlights the importance of product market based on money spent on packaging (size, labelling, color material and design) and the way it has been constitutes to be one of the components in the customer perception. Nevertheless, there has been effective contribution towards the quality packaging of the product that further adds weight to the research. Moreover, investment done on packaging can be analyzed based on the Australian supermarkets Coles and ALDI and the way it had been supporting in decision making of buying milk products from the store.

Packaging is the process of evaluation through design, distribution, labelling, and colour that helps in giving a pretty face to the customers view so that it can attempt to attract customers’ attention to motivate the product’s consumption. However, packaging remains to be incomplete if there is no design, style, colour, shape or the material used, as they are deemed appealing to the customers irrespective of the choices made by them. On the other hand, appearance of the product not only adds to be the means of communication for the brand but also helps in conveying brand meaning to the customers (Schleenbecker and Hamm 2013).

There are several ways that product designs influence consumer preference. The design of a product determines consumers´ first impression of the product and quickly can communicate product advantage. In addition, the design of a product will generate consumer inferences regarding several product attributes. Furthermore, the product or package appearance can reinforce the image of a brand, as the identity of a brand is expressed visually in the appearance of products (Riley, Martins da Silva and Behr 2015). Although, there are large individual and time-specific differences in the experience of colour and form, there are certain associations that seem to be relatively constant. Overviews of the influence of colour and form on consumer perception of symbolic value (and ergonomic and aesthetic value as well). For example, angular forms are associated with masculinity and dynamism, while roundness evokes femininity and softness (Raheem, Vishnu and Ahmed 2014).

On the other hand, when it comes to milk products, the packaging needs to be soothing as well as feminine such that with a picture of cow with white background can be comforting to eyes as well as eye catching. However, the packaging concept in milk should be regular and not so fancy because they are obtained from natural plants (Okenwa 2016). Moreover, labelling of the pack should be highlighting more on nutrient balance, amount per saving and ingredients. Aldi and Coles, being one of the top retail stores in Australia wish to see their product shelved and making profit. Although, initially, the profit might be cut but later the same process will lead to more sales.

Packaging Adds Quality and Value

Conversely, the use of sale packaging according to customer perception held to be of relevant factors in optimization. This is because from an environment as well as economical perspective, though it’s a costly venture but primary research showed that needs of customers for products like milk and baby care products can only be satisfied based on performance, reliability and packaging (Alvarez et al. 2016).

Accordingly, it can be said that, packaging even constitute to be an important aspects that Coles and Aldi should focus on as it adds value to customer perception. In addition, shape, size, design and colour needs to be maintained so that the customers remain inclined towards a product like milk which can be added value through consistency.

Milk/food packaging is the holder that holds, secures, saves and distinguishes the item, and which likewise encourages capacity and commercialization. Packaging likewise assumes a noteworthy part in drawing in customer consideration and affecting shopper buy choices. Concerning, current packaging market, bundling gives sustenance organizations the last opportunity to convince customers to purchase the item before brand choice. Along these lines, all bundling components must be consolidated to pull in the shopper when acquiring the product.

However, the quality in packaging is perceived on two views- first is perceived quality and the second is objective quality. Perceived quality is different from actual reality as it is a higher level of abstraction than a particular attribute towards the products. As a result, the judgement is only made based on the consumer suggested set. The perceived quality differs from objective quality but it not only helps in adding ideal standards but it also helps in analysing the packaged goods based on technical and manufacturing based quality. However, when it comes to sensitive products like baby care and milk products, the superiority and excellence of material attracts the consumer while paying more attention to the concept “health” (Jhandir 2012).

The perceived quality component can be explained with the specific and intrinsic attributes to infer as well as indicate quality that not only sustains to higher level of abstract dimensions but also generalizes to quality of products.

Figure: Perceived Quality Component

Source: (Akdeniz, Calantone and Voorhees 2013)

When we analysed the “Total Food Quality Model” the “health” dimension not only adds to the perceived quality of the product but also helps the customers in decision-making. According to (), TFQM integrates the multi-featured and the various levelled ways to deal with quality recognition. In addition, it incorporates two other real components of shopper conduct in milk products and organic products, in particular the aim to buy, as a trade-off between give and take segments and the clarification of customer fulfilment, as the variation amongst experienced and expected quality (Yin et al. 2016). The following diagram that studies the basic outline of before purchase can be given as under.

Figure: Total Food Quality Model

Source: (Grunert 2005)

The model accordingly incorporates rationale or worth satisfaction, the way satisfaction of the customers adds to the accomplishment of coveted outcomes and qualities. External/ Outward cues, for example, label and information create assumptions about uncommonly high eating quality; precisely, giving the customer a sentiment extravagance and delight of life. The qualities looked for by buyers will not only affect quality measurements that are looked for but also studies the changed cues that could be seen and addressed. The grouping from prompts/cues, through quality increases the buy intentions based on the hierarchy of progressively theoretical intellectual order (Beneke et al. 2013). The packaging ultimately adds and signifies the overall features as well as uniqueness and originality to the sensory evaluation of milk products that help in brand preferences and communicates favourable as well as implied meaning of the product (Drake et al. 2009).

When it comes to milk products, it is important that the nutritional value of the product is added highlighting good quality protein, easily digestible fat, source of iron and vitamin with calcium. Although, package labelling constitutes to be the “sense of seeing” that adds additional value. Moreover, sales of the packaging can only be increased by shelf impact, band imagery and functional and satisfaction after using the product (Young 2016).

Accordingly, packaging helps in increasing sales of the product majorly, through its size and design and the way customer perceive it quality to be after going through the facts stated through labelling. In addition, it links to business value as an evidence while documenting shoppers decision. The sales helps on the impact of preference as well as competition in the market because Coles and Aldi are competitors justifying their packaging through price while ensuring market share at the same time. On the other hand, foster packaging innovation will lead to commitment and process while assessing new concepts in the marketing world.

Corporate Social Responsibility ensures sustainability because of its corporate philanthropic nature tha not only directly benefits the shareholders but also in building brand imaging. CSR portrays the degree to which authoritative results are steady with societal qualities and desires. At its grass roots, being socially mindful has been a worry especially related to the justification that organizations will probably do well in a thriving society than in one that is going into disrepair (Gurung 2013). In today’s competitive marketplace, packaging with the organization guarantees economic profitability. However, to operate in the healthy society, it is important that the resources emphasized to the product offerings are not harmful and are not discontinued in the environment such that company can emphasise environmentally friendly manufacturing and packaging materials (Sparks, Perkins and Buckley 2013).

On the other hand, when it comes to packaging, full disclosure about materials as well as origin is important to meet the practices of reporting and meeting the goals. Packaging is the only basis through which the organization depicts its CSR to the customers. Product bundling has the capacity that fits for CSR messages, since it permits purchasers to show their backing of capable organizations to themselves as well as other people, and the data is promptly accessible to them. Besides, the significance of packaging as a promoting tool is progressively recognized, since it empowers promoting communication to happen in the genuine acquiring circumstance and it accompanies with the buyers into their homes (Pedersen 2013).

The basic functions of packaging holds to be true for protection, preservation, facilitating distribution, promoting customer choice as well as consumer convenience. This form of marketing communication of CSR through packaging is unique because it not only enforces the purchase decision but also adds value to the product every time it is used. As per the list, it is important that environmental and health consciousness can likely occur on packages which can be considered as a value driven package consideration for environment and social causes. However, CSR can be beneficial to packaging through the elements of packaging influencing consumer’s purchase behaviour (Kuvykaite, Dovaliene and Navickiene 2015).

Figure: Elements of Package and Consumer’s Purchase Behaviour

Source: (Kuvykaite, Dovaliene and Navickiene 2015)

However, when analysed on milk products, a brand logo that depicts a cow with a pleasing punch line as well as visual representation of environmentally checked product can not only receive environmental friendly process but also signifies a colour and size that looks fit for the kids. Moreover, milk products also employs labelling to convey CSR on the package and represent the product as responsibly manufactured which can be used while ensuring sustainability standards (Deselnicu, Costanigro and Thilmany 2012).

Accordingly, the Corporate Social Responsibility and packaging labelling and design not only adds to the customers value but also ensures that the product is safe and secure. However, Aldi and Coles should also depicts their CSR through Products as external practices may be visible but internal practices can attract and retain the customers in the long run.

The brand preference and packaging expenditure are moreover a relationship that is negatively influenced in a way that as the brand preference increases, the organization can lessen its expense on packaging while lowering expenditure. On the other hand, brand preference is assumed to be beneficial only when the product is recognized in the market and the customers are known to the alternatives. However, it is important that buying decision making should be  observed based on the impact of change that is significant on consumer perception, needs and tests, while additionally, adding products that are manufactured as well as changed on their subsequent positioning. Although, these changes have influenced consumer awareness but also have increased demand for products leading to expenditure in packaging depending on the consumer choices (Ahaiwe and Ndubuisi 2015).

Conclusion

To conclude, it can be said that packaging holds to have equal important that any other marketing strategy used in the products. However, organizations need to adapt to different methods of packaging that not only increases the product sales but at the same time increase the corporate social responsibility of the product. Moreover, the packaging expenditure needs to be initially invested to shelf the product but later once the brand preference increases, the packaging expenditure can be less and the changing can be made in the process of innovation.

References

Ahaiwe, E.O. and Ndubuisi, U., 2015. The Effect Of Packaging Characteristics On Brand Preference For Cosmetics Products In Abia State, Nigeria. British Journal of Marketing Studies, 3(8), pp.79-90.

Akdeniz, B., Calantone, R.J. and Voorhees, C.M., 2013. Effectiveness of marketing cues on consumer perceptions of quality: The moderating roles of brand reputation and thirdâ€Âparty information. Psychology & Marketing, 30(1), pp.76-89.

Alvarez, A., García-Cornejo, B., Pérez-Méndezâ‘ c, J.A. and Roibás, D., 2016. Diversification in Spanish Dairy Farms: Key Drivers of Performance.EEvery Generation Needs Its Leaders., p.163.

Beneke, J., Flynn, R., Greig, T. and Mukaiwa, M., 2013. The influence of perceived product quality, relative price and risk on customer value and willingness to buy: a study of private label merchandise. Journal of Product & Brand Management, 22(3), pp.218-228.

Deselnicu, O., Costanigro, M. and Thilmany, D., 2012. Corporate Social Responsibility Initiatives and Consumer Preferences in the Dairy Industry. In2012 Annual Meeting, August 12-14, 2012, Seattle, Washington (No. 124616). Agricultural and Applied Economics Association.

Drake, M.A., Drake, S., Clark, S., Costello, M., Drake, M. and Bodyfelt, F., 2009. The Sensory Evaluation of dairy products.

Grunert, K.G., 2005. Food quality and safety: consumer perception and demand. European Review of Agricultural Economics, 32(3), pp.369-391.

Gurung, R., 2013. The Impact of Corporate Social Responsibility Initiatives and Customer Centric Initiatives on Customers.

Jhandir, S.U., 2012. Customer satisfaction, perceived service quality and mediating role of perceived value. International Journal of Marketing Studies,4(1).

Kuvykaite, R., Dovaliene, A. and Navickiene, L., 2015. Impact of package elements on consumer’s purchase decision. Economics and Management, (14), pp.441-447.

Okenwa, N.J., 2016. Consumer Acceptance of Made in Nigeria Packaged Food Products in Enugu (A Study of Packaged Cosmetics and Food Products) (Doctoral dissertation).

Pedersen, A. 2013. CSR Communication via Product Packaging: A General Discussion and an analysis of Innocent Drinks. Pure.au.dk. Available at: https://pure.au.dk/portal/files/45284499/BA_for_upload.pdf.%20Retrieved,%20June%2010 [Accessed 15 Sep. 2016].

Raheem, A.R., Vishnu, P. and Ahmed, A.M., 2014. Impact of product packaging on consumer’s buying behavior. European Journal of Scientific Research, 120(2), pp.145-157.

Riley, D., Martins da Silva, P. and Behr, S., 2015. The impact of packaging design on health product perceptions.

Schleenbecker, R. and Hamm, U., 2013. Consumers’ perception of organic product characteristics. A review. Appetite, 71, pp.420-429.

Sparks, B.A., Perkins, H.E. and Buckley, R., 2013. Online travel reviews as persuasive communication: The effects of content type, source, and certification logos on consumer behavior. Tourism Management, 39, pp.1-9.

Yin, S., Chen, M., Chen, Y., Xu, Y., Zou, Z. and Wang, Y., 2016. Consumer trust in organic milk of different brands: the role of Chinese organic label.British Food Journal, 118(7).

Young, S. 2016. Documenting the “Business Value” of New Packaging Innovations – Perception Research Services International. Prsresearch.com. Available at: https://www.prsresearch.com/prs-insights/article/documenting-the-business-value-of-new-packaging-innovations/ [Accessed 15 Sep. 2016].