Customer Perception of Product Packaging - Research Paper Example

Product Packaging

Abstract

The significance of product packaging as a medium for communicating crucial product information is evident. Buyers base major purchasing decisions on the basis of their perceptions of the underlying product, which are primarily shaped by several features of the packaging. The physical appearance of the package affects consumers’ attitudes concerning a product and may even prompt consumption. Research shows that that packaging features, such as font, colors, size, completeness, shape, the use of metaphors, packaging imperfections, and so forth, affect the perceptions and preferences of consumers.

There is a tendency for buyers to form opinions of various products, such as food, depending on their understanding of the different designs and graphics on the packaging that capture their attention (Venter et al., 2011). These perceptions have a significant on consumer buying behavior at the purchasing point. In addition, packaging helps firms in making positioning decisions because buyers associate aspects such as color and logo position with class and power. Numerous studies posit that packaging is currently a five-minute advertising technique due to its considerable power to sway users. These findings present both opportunities and threats for both the management and marketing professionals. While they may take advantage of aspects that promote positioning and consumption, other aspects, such as customer knowledge and ambiguity of vectors used in packages may negatively impact on an organization. This paper outlines a review of the literature on various studies conducted on the effect of packaging on perceptions and preferences.

Introduction

The benefits of a product to the consumers are well communicated through the packaging method. Research shows that consumers judge the values of the product based on the uniqueness of the packaging and are eager to experiment products that are well packaged. The packaging also builds a strong relationship between consumers and the brand. Another aspect is that most manufacturers place their logos on the top of the product packaging, which is mostly above the image of the product. This is to ensure that as consumers read the brand name, they are able to see the logo of the company that manufactured the product. This has an effect on consumer perception on the value of the company’s products and can be a good of marketing the other products produced by the company.

Companies spend close to 40% of the selling price of a product in ensuring that it has a good packaging. A significantly large amount is spent on building a design that is used to communicate about the organization and build a brand identity. In a research conducted by Proctor and Gamble consumers spend a few seconds on the shop shelves evaluating the products based on the packaging before they purchase it. Proctor and Gamble further reveal that it spends enough resources in ensuring that the products are packaged in such a way that they influence the buying habits of consumers and they can be tempted to purchase the company products almost instantly. Studies show that there is a need for effective communication on the brand since the market for good is saturated. Manufacturers and consumers claim that they are faced with challenges when it comes to communication of the products and ensuring that the packaging of products remains appealing. Well, packaged products are able to maintain the brand power and such products are the leading in the market for similar products. This paper seeks to evaluate the relationship between packaging, perception and consumer buying habits.

Literature Review

Product Packaging and Customer Perception

Consumers have different perceptions on the value of the products based on the packaging. In a study reviewed by Aday and Yener (2014) in Turkey, the factors that influence consumer behavior of the youth were highlighted. A study consisted of 324 participants who were required to answer a questionnaire of 31 questions. An analysis of the responses revealed that consumers are highly attracted by products that are packaged in glass material due to their transparent and healthy nature. On the other hand plastic and paperboard packaging were preferred since they are easy to use and the packaging can be reused. Consumers also checked the information the label but they claimed that it was not easy to understand. Other things that they looked at were the manufacture date, the date of expiry and ingredients. During the study, it was also noted that female consumers focused on the fat content of food products while the male consumers were concerned with the protein content.

Ampuero and Vila (20o6) investigated the role of packaging on customers’ perceptions so as to design packaging that achieves the preferred product positioning. Positioning is a relative and subjective concept that only exists in consumers’ minds with regards to the readily available products. Defining a positioning strategy is critical to the success and growth of an organization. Packaging plays a central role in forming perceptions about a product, and ultimately it's positioning, by transmitting distinct tangible codes. The position reflects an organization’s need to realize a particular position in the minds of buyers. According to Ampuero and Vila (2006), a product’s positioning induces its marketing mix, including pricing policy, promotion, place, and products. With the increase in the number of competing products, packaging provides a form of identity and differentiation, which are particularly important in an increasingly competitive market.

The authors assert that packaging may be a product characteristic or property or an extrinsic attribute that is related to the product but is not part of the tangible product itself. The management conducts market research concerning the graphic and structural design, as well the optimum size of the packaging in order to determine the positioning strategy. Being the first thing that buyers see before making purchasing decisions, packaging plays a central role in influencing consumers. It informs customers of the potential value to be derived from consuming a particular product. After conducting a study on the effects of packaging on consumer perceptions of a product, Ampuero & Vila (2006) found that goods meant for the upper classes, highly priced and aesthetically refined and elegant need dark and cold colors for their packaging. On the other hand, easily accessible goods directed towards price sensitive consumers make use of light-colored packaging, mainly white. The study also found patriotic products and those that are safe and guaranteed to be associated with red. The authors also found strong relationships between packaging typographies, such as font styles and sizes, graphic forms, and packaging illustrations.

Ilyuk and Block (2016) concur with the views of Ampuero and Vila (2006), that product packaging plays a noteworthy role in forming consumers’ perception of the efficacy of a product. The authors argue that efficacy-related perceptions have a direct impact on product adherence, particularly in pharmaceutical and food and beverage industries. Additionally, consumers’ perception and actual experiences of products are skewed by factors that have little to do with the product’s real efficacy. Subsequently, packaging has profound effects on numerous consumer responses, such as product inferences, choice, attention, brand impressions, willingness to pay, purchase intentions, and consumption. Theoretical frameworks support the notion that a product’s packaging size is directly related to its consumption quantity for various reasons. Firstly, the increase in available resources may compel people to consume more as per their consumption quotas. Secondly, consumers perceive large products to be less expensive than small ones, which reduce the replacement costs. Finally, products with larger packages are inferred to have lower costs per unit.

Ilyuk and Block (2016) present another interesting dimension to the debate. They argue that products that come in a single-serving package create a sense of completion and closure that is more psychological, the perception that an experience is complete, which then induces a sense of product efficacy. This view is considerably similar to that of Ampuero and Vila, in that perceptions and experiences of efficacy are exceedingly malleable and are habitually affected by the marketer, product, and consumer-related issues that have very little to do with the actual efficacy.

According to Jerzyk (2016), packaging has become a contemporary tool for integrated marketing and the most influential promotional tools at the point of sale. It helps consumers to evade the communication noise from numerous promotions and products on display in the shop. By displaying different combinations of product elements, such as the price, quality, contents, and size, packaging helps in making a product noticeable as well communicating the potential advantages. Subsequently, consumers form a notion concerning a product depending on their evaluation of the information portrayed by the package. For instance, an eco-friendly package is assumed to emphasize a product’s naturalness and respect to the principles of sustainability.

After conducting a survey, Jerzyk (2016) found that sustainable packaging was not a primary determinant in purchasing decisions. These findings assert the shrewd role of packaging in the formation of consumer choices. Consumers also expressed concerns that they would be swayed to purchasing a different product of they trusted and had confidence in the messages displayed on the packaging, such as the economical use of packaging materials, recycling, and customers’ health and safety. The authors concluded that people buy goods whose packaging reflects their personal characters and beliefs, such as environmental protection, health, and safety, as opposed to marketing messages.

Ordabayeya and Chandon (2013) outline the results of three laboratory experiments into the ways in which consumers predict changes in product dimensions. The authors argue that buyers often underestimate the changes in product sizes, particularly if such changes occur in multiple dimensions and directions. These miscalculations occur because individuals combine these changes incorrectly and not because they do not notice the changes. Surprisingly, this error does not improve even after notifying customers of their visual biases, informing them of product dimensions, or altering the package’s length and height. This research has considerable implications on consumers’ preferences and buying behavior going by Ilyuk’s and Block’s (2016) contention about consumer’s perception and product sizes.

Sevila and Kahn (2014) provide more evidence that individual perceptions and buying decisions are heavily influenced by faulty consumption norms or poor heuristic processing as stated by Ordabayeva and Chando (2013). The authors argue that people use features of a product’s or containers physical shape to draw conclusions concerning preferences and quantity to consume. Accordingly, people tend to overestimate the size of a product because their perceptions are anchored on the primary or most elongated dimensions and fail to adequately compensate for smaller secondary changes. However, Sevila and Kahn (2014) argue that some sense of completeness in a product’s shape can alter individuals’ perceptions, choices, and consumption. In most instances, consumers assume that a complete unit may contain more contents than an incomplete one and fail to consider the actual sizes of the items. The authors define completeness as the appearance of a full unit of a product.

Sevila and Kahn (2014) echo Ilyuk’s and Block’s (2016) claims that people desire completeness and the feeling that an experience is finished, failure to which, they feel psychologically unresolved. In addition, research has found that individuals prefer phenomena that appear complete and denote prototypicality and unity. The authors posit that consumers perceive a completely shaped item to contain more quantity and are, therefore, inclined to buy it over an incompletely shaped product. However, in instances where they have to consume more than one unit, the consumption of incomplete items will be higher than that of complete products. The study found that with a constant product size, individuals consider complete products to have a higher quantity than incompletely shaped items. Consistent with previous studies on the numerosity heuristic, this research also found that consumers, to a great extent, rely on the number of units into which a product is divided while ignoring other essential facets.

Sirieix et al. (2013) conducted a study to investigate the impact of product labels on consumers’ perceptions. The research found that the availability of numerous labels for food products is not a necessary requirement for adding value for customers. Further, the study found that buyers of sustainable food products make rational decisions and will only buy them if they believe that the potential benefits exceed costs. In addition, consumers of food products make consumption decisions based on habits. This implies that the presence of a sustainable label may not necessary induce consumption merely due to its seemingly sustainable content, but because of its ease of availability. Sirieix et al. (2013) conclude that there is a need for some degree of fit, either between product labels or between a label and its brand. The article argues that some label combinations can augment their collective value while other blends can detract from the intended value, but propose further studies on this issue.

Strategic logo placement is also another aspect that can impact on consumers’ perception of a product, as posted by Sundar and Noseworthy (2014). According to the research, buyers have a stronger inclination towards powerful brands whose logos are placed higher on the packaging than when it is placed lower. On the other hand, the authors argue that less powerful brands seem more attractive when the logo is placed in a low position. This shift in preference is attributed to a fluency effect in which buyers intuitively associate power with height because brands have distinct identities and emanate power. In products with low market command, the spatial placement of the product within an advertisement can reinforce its image as either a leader or a friend, thereby boosting its evaluations. Similarly, the placement of a product’s image on the packaging favors only those items in which heaviness is a desirable feature. Sundar and Noseworthy (2014) confirm the arguments proposed by Jerzyk (2016) that buyers make decisions concerning what they want to be as opposed to who they are at the moment, and will, therefore, not buy goods simply for what they can do, but also for their implied stand or meaning. Finally, the authors argue that the relationship between power and height may be dependent on the buyers’ state of authority, which, in turn, depends on aspects such as premium pricing, lock-in contracts, and the lack of alternatives.

Product packaging remains a crucial means of communicating both brand and product benefits. While visual metaphors may be particularly effective in this context, the situations under which they perform best are not clearly understood (van Rampay and Veltkamp, 2014). By virtue of their figurativeness and artfulness, visual metaphors draw on imaginative procedures and induce imagery and are, therefore, more suited for making communication more effective, vivid, exciting, and imaginative.

Van Rampay and Veltkamp (2014) investigated the impacts of the use of metaphors and explanatory information on perceptions of brand personality and consumer appreciation. The use of metaphors becomes more effective when the semantic distance between the source and target domains is small and vice versa. While metaphors may induce feelings of excitement when used in advertisements and packages, it may also make brands appear deceptive because these figures are literary fallacious and inconclusive because of the potential for multiple interpretations. Marketers, therefore, may have to include explanatory information on their packages to ensure that the intended message is delivered. The authors assert that the use of incomplete information is often more effective than clear information that explicitly explains the metaphor because it leaves room for consumer elaboration.

The study found that drawing attention to product packaging for products with ambiguous metaphors is effective at increasing consumer appreciation for individuals with low metaphor processing abilities while a visual packaging prompt increases brand excitement. The authors conclude that metaphors should leave room for elaboration and metaphor resolution by leaving room for consumer evaluation, drawing attention to the package, and using explanatory information.

Product packaging and consumer buying behavior

In the current competitive market, the most crucial thing is understanding consumer buying behavior. According to Aday & Yener (2014), one of the major factors that affect consumer-buying behavior besides quality and income are packaging. Product acceptability in the market is also dependent on the information shared on the packages. Important packaging elements include visual attributes such as color, logo, images, shape and design and their sole purpose is to influence consumer decision making. Informative elements include user instructions, labels, segmentation and cultural context. A study by Aday & Yener (2014) also shows that expensive products should have dark packages that contain expanded roman bold writing whereas low priced and reasonably priced goods should have light-colored packaging. Additionally, companies use curves, horizontal lines and curves to illustrate products that are used by middle-class people since they are not selective. At any given time, color, graphics, and shape of packaging affect the decision-making process of consumers before they purchase products. In order to increase the retail market, packaging materials, color, logo, instructions and print fonts should be taken into consideration. In a study on consumer buying habits, the respondents said that labels that attract them are those that contain information such fat content, vitamins, minerals and calories since they do not create confusion in the mind of users. This shows that consumer has a clear understanding of the health benefits of products based on the labels. Visual elements are therefore useful for the consumer final decision making (Aday & Yener, 2014).

In another research on the reasons why consumers eat more, Argo & White (2012) noted that there is a close connecting between the rising levels of obesity in the United States and product packaging. In an effort to reduce calories intake, companies were advised to reduce the size of packaging for snacks. However, the turnover of events was that people consumed more of the smaller packages since they are affordable. Another thing is that consumers believe that if they purchase the smaller packages, they will consume fewer calories as opposed to if the packaging is used. There is a higher possibility that consumers are likely to consume many smaller packages compared to a large package, which can result to higher sales in the small packages. Consumer dependency on smaller packages results to increased consumption since they do not rely on self-regulatory measures (Argo & White, 2012). The packaging acts as a control measure and people use it as a substitute for self-control. The results of this measure are that people are likely to consume multiple small packets of a product rather than when they are presented with one large packet. The assumption that taking small packets is effective in weight control than taking a large packet is only effective if an individual takes one small packet. Manufacturers use this perception by packaging several small packets in one large box and this makes consumers eat many small packets and purchase more. According to studies by Argo & White (2012), manufacturers need to conduct further research to determine whether there is a connection between the packaging size and the location where the products are sold since consumers could be buying products due to their easy accessibility. Further research shows that smaller packages fail in their role for controlling obesity, which creates a burden on the economy due to the rising cases of obesity.

Research by Gomez, Martin-Consuegra & Molina (2015) shows that packaging has technical and attributes to the passing of information from the manufacturers to consumers. The packaging also brings about loyalty since consumers associate it with a particular brand. Packaging is not only a way of knowing about a product or making it attractive but also defines its quality. The relevance of packaging has been created in self-service stalls since in most cases; consumers will always pick the best-packaged product. The role of packaging is also to ensure that there is product differentiation and makes it favorable in comparison to the competitors thus creating a brand identity (Gomez, Martin-Consuegra & Molena, 2015). Another important attribute is that packaging shows the value added on products especially if they require immediate consumption. The existence of a brand is communicated through its packaging and attracts the attention of buyers. Consumer decision-making process which consists of five stages that include identification of the problem, information searching, and evaluation of available alternatives final decision on the product to buy is influenced by packaging. Therefore, packaging can be viewed as a tool that is used to attract new customers and to retain the old ones. In sales and marketing, packaging can be viewed as a sales person who influences the buying habits of consumers though attractive colors and messages.

An important element to note about the packaging is that as much as it motivates purchases, it can discourage people from buying products. Packaging can also discourage consumers on brand loyalty. In most cases, customers will buy a product based on the information that they find on the packages since it creates satisfaction (IIyuk &Block, 2016). However, if the benefits outlined in the package are not real, it can destroy brand loyalty. There are a number of studies on the influence of packaging on consumer buying habits such as packaging satisfaction model that is based attractive quality theory. The aim of the theory is to explain the relationship between quality and customer satisfaction and is currently applied widely. The theory further explains that further details on the products such as information location, codes and symbols are also important in creating brand loyalty (IIyuk & Block, 2016). When taking into account the influence of packaging on different decision-making stages, it is important to take into account that most manufacturers focus on one attribute of packaging and is color and attractiveness the product. They forget that other aspects such as additional information about the products are also useful. From the managers’ point of view, in order to ensure that packaging functions effectively, there have to be graphic and structural designs and the pack should be of optimum size. Therefore, there is no doubt that packaging is a core element in the decision making of the marketing mix. From the consumer's point of view, packaging plays an important role of attracting purchases since it the first thing they see before making buying decisions. According to research by IIyuk & Block (2016) self-service in the current stalls has changed the nature of informing customers and has led to packaging becoming on the major methods of advertising.

There have been developments of new technologies in product packaging whereby companies are coming up with methods that are customer centered (Hakola, 2013). It is not enough for companies to come up with new methods but rather they should ensure that they understand whether the new technologies add value to them. The technologies sometimes become unsuccessful especially if the companies do not understand the value of such technologies. It is also important for the parties involved to understand the value of the new technologies before they implement them. In the current business environment, there have been significant changes in consumer buying habit due to globalization, which has strengthened consumer bargaining power. Hakora (2013) also noted that there are times when the launches are unsuccessful especially when the companies are not client centered. Since packaging has a central position in the market, businesses should focus on value creation for their packaging methods. Therefore, marketing should put more focus on ensuring that there is value creation instead of value distribution. In the case of the business-to-business market, the crucial aspect of business management values and this can also be applied in consumer markets since it helps in retention of customers and building ensuring that there is a competitive advantage.

Printed on the product package, the brand name is an essential part of in the company’s investment. It is important to know that no matter how good the company’s products are, they cannot attract a large number of consumers if they do not have an appealing brand name (Laforet, 2011). Another thing is that when customers are purchasing products, they are more likely to choose those that are of popular brand names than those that they have never heard of. People have symbolic and physical associations with the brand names. Loforet (2011) also noted that Cadbury is well known for chocolates and the purple packaging is the image that is derived since the company was invented. This shows that brand names have a major effect on consumer buying habits since they are the first thing that they read on the package. This can mean that there is a cultural attachment to the brand name and consumer buying behavior. Study Laforet (2011) shows that the brand is the first thing that can attract consumers to purchase products since in most cases they are presented with items that they had used before. In another research, the price of the product is also a factor that is connected to people's buying habits since in most cases it is printed on the product packaging. People will always look the price, packaging, quality and physical appearance of the brand. In the food categories, study shows that pack size is a major factor connected to buying habits. Another aspect about the brand name is that it leads to customer association with the products since when they see it on the packaging they relate it to the company. When the brand names are printed on the products, they attract customer response and influence their preferences when purchasing products. There is a wide connection between brand and quality since it is the image of the product, therefore, people can ignore buying products based on their past experiences with the brand name. According to Laforet (2011), a brand name can also have a negative impact since some consumer’s associate products with corporate and in the cases where there is no association of the product and corporate, people tend to assume that, such products are of low quality and unreliable. Another thing is that when there is a good connection between the existing brand and the new products there is a likelihood that consumers would consider buying them. When the brand name is not printed on the packaging, it is difficult for consumers to distinguish between individually branded products and the corporate.

Conclusion

Consumer perception and buying habits are heavily dependent on the packaging of the products. According to researching, the overall position of products is directly linked to the packaging, which can lead to the growth of an organization. Organization managers spend a considerable amount of time trying to figure out the kind of packaging that is suitable for the products. The reason for ensuring that products have the right kind of packaging is because the pack is the first thing that consumers before they make purchasing decisions. The contents of the products are mainly displayed on the packages whereby consumers get to know the qualities of products such as price, contents and the quality and through the information provided, consumers are able to know the benefits of the products. People also consider the physical appearances of the products whereby a factor like the shape of packaging can influence consumer perception. The logo of the product is also linked to consumer perception whereby consumers believe that powerful brands have attractive logos that those of low placed products.

Study on the consumption habits of consumers reveals that people who are conscious about their weight are likely to purchase products that are packaged in smaller quantities with the believe that such packaging will enable them to control their feeding behavior. People also believe that poor quality products are packaged in poor quality materials and likely to avoid buying such products. This shows that packaging can either encourage or discourage consumer buying the products. Manufacturers have currently invented new technologies in packaging that focus on consumers due to the growing completion that is attributed to by globalization. The brand name also influences consumer-buying habits since consumers associate the value of the product with the brand name, which is mostly printed on the packages. From the studies, it is evident that there is a great connection between packaging, perception and consumer buying habits.