The Relationship between different packaging characteristics

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The purpose of this paper is to identify the relationship between Packaging characteristics and consumer brand preference in perspective to edible oil. Whether packaging characteristics has impact on consumer choice or packaging characteristics has influence in consumer's brand preference. In Pakistan there are numerous number of edible oil are produces with different brand name and quality. Packaging has become appropriate selling proposition now days although edible oil industry is very competitive and consumer are numerously price conscious but still packaging make an impact on the consumer brand preference. In this research paper we have measured different brands such as Habib, Dalda, Seasons canola, Soya supreme, Sunflower, Eva, Sufi, meezan and any other specific in terms of packaging characteristics. According to Rundh (2005) packaging attract the consumer's concentration to buy particular brand and increase brand image and influence towards consumers. Packaging characteristics creates uniqueness in brand (Underwood, Klein & Burke, 2001; Silayoi & Speece, 2004), packaging characteristics as a tool for differentiation, i.e. help consumers to decide the product from broad variety of similar products, stimulate customers purchase behavior (Wells, Farley & Armstrong, 2007).

This study examines the influential factor which relates packaging characteristics to the consumer's brand preference. Packaging is also a tool of marketing communication and play vital role in consumer brand preference. The prime function of packaging is to safe the brand against possible damage even as transporting or logistics, storing or warehousing, selling, usage and convenience of brands (Gonzalez, Thorhsbury & Twede, 2007; Wells et al., 2007; Kuvykaite, 2001) and to make sure the convenience during performance of these actions. Sogn-Grundvag & Østli (2009) have indicated the significance of packaging in the case of grocery. Packaging characteristics as a tool for shielding consumers from contamination, for let them to touch brands without restraint, without have to to avoid smudge their hands.

In this paper Packaging characteristics evaluate in terms of eight variables i.e. Size, shape, safety, shelf life, convenience of storage, convenience of use, extra use and package attractiveness in context of edible oil but according to Kotler (2003) distinguishes these characteristics in terms of six variable i.e. size, form, material, colour, text and brand. Moreover Vila & Ampuero (2007) similar to Underwood (2003) distinguished two blocks of package elements: graphic elements (colour, typography, shapes used, and images) and structural elements (form, size of the containers, and materials). This paper examines how packaging characteristics influence buying decision particularly for edible oil. The package characteristics become a vital factor in the consumer decision-making practice because it communicates to consumers while the time they deciding to purchase in the store. How they observe the subjective entity of brands, as offered through communication fundamentals in the package, influence choice and is the prime to success for many food products or convenience goods marketing strategies.

Packaging characteristics also shows the quality judgments which largely influence the consumer in brand preference. Consumer frequently assumes that if packaging characteristics are viable that shows brand is of high quality and helps in decision making of consumer.

The questionnaire was designed to carry out the survey from females; each participant handed over the questionnaire which consists of various questions to identify the relationship of packaging characteristics and consumer brand preference. Packaging is very essential took for brands it gives value to the brand and give lifting effects. Packaging characteristics is taking into consideration as communication different messages to consumer choice and impact in their purchase intentions.

In this research paper the developed model used and tested as per the context to edible oil of consumer brand preference. This paper studies the role of packaging characteristics and consumer brand preference.

In Pakistan, the edible oil industry is very extensive as there are much edible oil is being in used. At present, market scenario of the edible industry in Pakistan:

There are around --- edible companies operating in Pakistan.

--- are national companies

Among national companies --- edible companies are licensed

---- edible Companies are multinationals.

Moreover, in edible industry brand preference are more sensitive as compare to any other related industry due to the reason that this industry is health sensitive and the quality conscious. The target market doesn't want to compromise on its preferred brand.

STATEMENT OF THE PROBLEM

The primary problem is to predict the consumer choice, whether packaging characteristics influence towards brand preference in context to edible oil industry. This includes several different factors of packaging characteristics i.e. sizes of Package, different shapes of Package, safety, shelf life, convenience of storage, convenience of use, extra use of package and package attractiveness. Thus these included factors leads to consumer behavior and purchase its preferred brand.

Research Hypothesis:

H1: Size of Package influence consumer brand preference

H2: Shape of Package influence consumer brand preference

H3: Safety of Product influence consumer brand preference

H4: Self Life of product influence consumer brand preference

H5: Convenience of Storage influence consumer brand preference

H6: Convenience of use influence consumer brand preference

H7: Extra Uses of Package influence consumer brand preference

H8: Package Attractiveness influence consumer brand preference

REVIEW OF THE RELATED LITERATURE

Research model

The perform literature analysis allow us preserve that package may perhaps be treated as a set of a variety of characteristics communicating different messages to a consumer. The kind of message communicate depends on those packaging characteristics. This model support consumer to decide in choosing the brand (Silayoi & Speece, 2004) in such way, referring to Butkeviciene et al. (2008).

The research model used in this paper is being modify and instead of using packaging elements i.e. visual and verbal, in this paper include packaging characteristics on basis of various size of package, different shape of package, safety of product, shelf life of product, convenience of storage, convenience of use, extra uses of package and package attractiveness. This study focused on edible oil industry and helps consumer to choose brand in terms of packaging characteristics. This research model determines packaging characteristics having the impact on consumer's purchase decision.

Figure: 1 Research Model

Source: theoretical studies of Silayoi & Speece (2004), Bloch (1995); Grossman & Wisenblit (1999), Butkeviciene et al. (2008) the research model (see Figure 1)

The basic purpose of this model is to measure and evaluate the purchase decision of consumers in context with consumer brand preference. This model develops the relationship between packaging characteristics and consumer brand preference.

Table: 3 Lists of Selected variables

Packaging characteristics

Consumer brand preference

Packaging Characteristics is the independent variable that is aimed at the observance of quality standards of material received from vendors to the specified that quality level agreed between supplier and the company is delivered as per the standards. So we have to examine the level of implementation of procurement procedures in terms of inward material quality received from vendors after screening in organizations are up to their perceived importance and awareness of material quality.

Consumer Brand preference is the second variables which look for the quantity ordered to the suppliers are delivered on time or not. It includes all the material which is required for manufacturing. The time is the important factor that is considered as a percentage of the lead time of the raw material. So we have to examine the level of implementation of procurement procedures in terms of quantity and timely delivery from vendors in organizations are up to their perceived importance and awareness of timely delivery of the material required.

Procurements unit cost is the third variable which includes all those cost that incurs in the procurement process such as correspondence (e-mail, fax, courier, telephone etc.), conveyance (transportation cost of personnel involved in procurement), bills (official's salary, electricity bills) etc. These costs are usually a variable cost and included in the total cost of the procurement of the material. Procurement unit cost is measured as a ratio between the procurement costs incurred per material to the cost of the material procures. So we have to examine the importance of this cost and to measure this cost while implementation.

Material inventory level is the fourth variable relates to the inventory level of the companies that facilitate in determining the stocked inventory level of the companies. Higher inventory level indicates the increasing trend in capital investment and also attains more physical space while on the other hand lower inventory level shows the better sourcing efficiency and effectiveness. It is measured by the average inventory turnover of the daily production per day and efficiency is measured by the procurement scheduling through technology. We have to examine what level of efficient implementation of material inventory level in organization is up to their perceived importance and awareness of material quality.

Vendor Development Capability is the fifth and the last variable that was used to appraise the potential of Sourcing Department and capability and potential to assist vendor during the order processing and product development. Technological Assistance, Financial Assistance and Timeliness of information between the vendor and the company are the three types of the parameters according to the SCOR model that are need to be verify during the product development or order processing.

Superiority over other models

There are a range of benefits that SCOR has over more conventional simulators when modeling supply chains. It provides benefits in using standardized processes and metrics that can be easily communicated. SCOR allows the creation of supply chain models with considerable network scope. It also allows one part of a supply chain/company to be modeled in much more detail than the rest of the system so that a model can show the impact on the whole supply network of detailed changes made in one part of one enterprise. The system is also rich in terms of its attributes: the range of inputs and outputs of the problems it can address.

RESEARCH METHODOLOGY

This study tries to find out the relationship of the packaging characteristics and brand preference. How consumer perceives the packaging characteristics in terms of consumer brand preference, what are those factor which influence to consumer to make purchase towards any brand of edible oils.

Instrument:

Questionnaires were used as an instrument for data collection.

i) Firstly Questionnaire based on packaging characteristics.

ii) Second part based on the comparison of several different brands of edible oils based on packaging characteristics, how they evaluate brand in terms of packaging characteristics, does packaging influence them to make purchase decision.

iii) Lastly, Based on level of agreement and disagreement of consumer brand preference with respect to packaging characteristics.

The instrument is in the form of closed ended questionnaire.

Answers were recorded in the Likert five point scales.

:Packaging charaterisctics is measured as

Highly Important = 5 Important = 4 neither Important nor Unimportant = 3 Unimportant = 2 Highly Unimportant = 1

Compare brand in terms of packaging characteristics:

Better than other = 3 Same like other = 2

Worst than other = 1

Consumer brand preference measure on basis in Level of agreement and disagreement.

Strongly agreed = 5 Agree= 4 Neutral= 3 Disagree= 2 strongly disagree= 1

Pre-Testing

The instrument was pre-tested where 4 to 5 sample questionnaire were filled to predict if there are any problems with the instrument for the respodent and whether it was easy to understand and comprehend the questions or not. Through pretesting it was found that all respondents felt comfortable in responding and respondent find questionnaire interested too

Reliability test.

Reliability analysis allows studying the properties of measurement scales and the items that make them up. The Reliability Analysis procedure calculates a number of commonly used measures of scale reliability and also provides information about the relationships between individual items in the scale. Intraclass correlation coefficients can be used to compute interrater reliability estimates (Tutorial, SPSS 17 version).

Reliability Statistics

Reliability Statistics

Cronbach's Alpha

N of Items

.673

69

Cronbach's Alpha is the model of internal consistency, based on the average inter-item correlation. Here the value of Cronbach's Alpha is 0.673 which indicates that the data is consistent (Multivariate data analysis, sixth edition Joseph F. Hair).

Sampling technique and Sample size:

The data used in this research was collected from the Iqra university female students, some household women and some working women. The sampling technique used in this study is convenience sampling method.

Respondents:

The total number of respondent is 117 females with different classes.

Procedure:

Questionnaire are used as an instrument to collect a data and data is collected by two ways i) Personal survey in Iqra university and meet female respondents and by meeting to household women ii) By emailing the questionnaire to the working women. Respondents filled the questionnaire and then email back.

Statistical tool used:

In this research we used Optimal Scaling categorical regression which quantifies categorical data by giving numerical values to the categories, resulting linear regression equation in an optimal for the transformed variables. Categorical regression is also known by the acronym (CATREG), for categorical regression.(Multivariate data analysis, sixth edition Joseph F. Hair).

In this research we have Packaging characteristics and consumer brand preference both is categorical variables that apply optimal scaling. Optimal scaling could be used to describe how packaging characteristics leads toward consumer brand preference. We want to test that whether packaging characteristics have relationship with consumer brand preference.

RESULTS

Hypotheses testing

To test the hypothesis, we have applied the concept of paired observation, i.e. average of difference of perceived awareness and importance of procurement and implementation of the procurement procedures has been tested.

Null hypothesis: The average difference of overall perceived importance of procurement and its implementation is zero. (md =0)

TABLE: 1

Difference of overall perceived awareness and importance of procurement and overall implementation of procurement

Mean

S.D

95% Confidence Interval of the Difference

Sig. Value

Perception

4.23

0.11

1.06 ≤ md≤ 9.96

0.000

Implementation

3.36

0.30

Interpretation of table 1

The significant value is less than 0.05 which indicates that null hypothesis is rejected with the 5% level of significant. This means that what have been perceived has not been implemented. A low significance value for the t test (typically less than 0.05) indicates that there is a significant difference between the two variables. The confidence interval shows that the overall perception is more than the overall average implementation. The brief summary of the result is presented above in Table: 1.

Moreover table 1 illustrates that the respondents have the strong perception regarding the importance and awareness of procurement (i.e. overall mean is 4.23) which is on the stronger side that shows that procurement is a vital element in the whole supply chain process and also an important factor to attain the better efficiency according to the perception of the organizations. While on the other hand when we look at the implementation part (i.e. overall mean is 3.36) shows that the implementation is on the better side but not as good as it should be according to perceived importance. In short, companies are unable to fully implement the procurement procedures according to their perceived importance and awareness of the procurement.

If the confidence interval for the mean difference does not contain zero, this also indicates that the difference is significant (Multivariate data analysis, sixth edition Joseph F. Hair).

Similarly we have applied the same technique to test the secondary hypothesis and results reveal that all average perceived awareness and importance of each KPI is greater than the average implementation of procurement in organizations. The brief summary of the result with the implementation are presented below about the difference of each KPI of perceived importance and its implementation from Table: 2.1-2.5

H1: Perceived awareness and importance of Inward Material Quality is not equally implemented in procurement.

To test the above hypotheses by using the same paired sample T Test statistical technique this explains by the following table

Table 2.1

Inward material quality:

 

Mean

S.D

95% Confidence Interval of the Difference

Sig. Value

Perceived importance of Inward Material Quality

5.00

0.00

1.06 ≤ md≤ 9.96

0

Implementation of Inward Material Quality

4.50

0.53

Result:

Significant value is zero and difference of mean is not equal to zero.

Interpretation

The above table shows that in pharmaceutical industry quality standards are the most important element in procurement. Considering this table, we can come to the conclusion that the perceived importance of inward material quality (i.e. mean value of 5.00) and the implementation of quality standards of material (i.e. mean value 4.50) are not exactly same but on the very stronger side. Significance value (i.e. 0.00) shows that the companies are not fully implemented the perceived importance of material inward quality. Hence H1 is accepted that perceived importance of Inward Material Quality is strongly related to its implementation.

H2: Perceived awareness and importance of Quantity and Timely delivery is not equally implemented in procurement.

By using the statistical tool, we find the following result.

Table 2.2

Quantity and timely delivery

 

Mean

S.D

95% Confidence Interval of the Difference

Sig. Value

Perceived importance of Quantity and Timely Delivery.

4.55

0.50

1.06 ≤ md≤ 9.96

0

Implementation of Quantity and Timely Delivery.

3.95

0.16

Result:

Significant value is zero and difference of mean is not equal to zero.

Interpretation

The above table shows that perceived importance of the right quality delivery at the right is on a very stronger side (i.e. mean value of 4.55) which also indicates that the perception in an organization agrees with the fact that the timely delivery of quantity ordered is always on time with the right quantity ordered received but organizations have not that stronger implementation (i.e. mean value of 3.95) of getting deliveries on time. The significant value is less than 0.05 which indicates what have been perceived has not been implemented. Hence H2 is accepted that the perceived importance of quantity and timely delivery is not equally implemented in procurement process.

H3: Perceived awareness importance of Procurement unit cost is not equally implemented in procurement.

By using the statistical tool, we get the following result

Table 2.3

Procurement Unit Cost

 

Mean

S.D

95% Confidence Interval of the Difference

Sig. Value

Perceived importance of Procurement Unit Cost.

3.30

0.67

1.06 ≤ md≤ 9.96

0

Implementation of Procurement Unit Cost.

1.00

0.00

Result:

Significant value is zero and difference of mean is not equal to zero.

Interpretation

This table shows that according to the perception of the pharmaceutical companies, procurement unit cost have the average perceived importance in procurement (i.e. mean value of 3.30) so while implementing of procurement procedures, managers do not consider procurement unit cost as an important factor as this cost have the value less than 25% of the total cost of the procurement (i.e.1.00) which is very less. The significant value is less than 0.05 which

Indicates what have been perceived has not been implemented. Hence H3is accepted that the perceived importance of procurement unit cost is not equally implemented in procurement process.

H4: Perceived awareness and importance of Material inventory level is not equally implemented in procurement.

Table 2.4

Material inventory level

 

Mean

S.D

95% Confidence Interval of the Difference

Sig. Value

Perceived importance of Material Inventory Level

4.15

0.41

1.06 ≤ md≤ 9.96

0

Implementation of Material Inventory Level

2.70

0.59

Result & Interpretation

The above table shows that perceived importance of material inventory is on a very stronger side (i.e. mean value of 4.15) which also indicates that the perception in an organization agrees with the fact that higher inventory level indicates the increasing trend in capital investment and also attains more physical space while on the other hand lower inventory level shows the better sourcing efficiency and effectiveness but organizations have the average implementation (i.e. mean value of 2.70) of setting proper material level and the lack of technology use in scheduling comparing to their perceived importance of material inventory level. The significant value is less than 0.05 which indicates what have been perceived has not been implemented. Hence H4 is accepted that the perceived importance of Material inventory level is not equally implemented in procurement.

H5: Perceived awareness and importance of Vendor Development Capability is not equally implemented in procurement.

Table 2.5

Vendor development capabilities

 

Mean

S.D

95% Confidence Interval of the Difference

Sig. Value

Perceived importance of Vendor Development Capabilities

4.15

0.21

1.06 ≤ m ≤ 9.96

0

Implementation of Vendor Development Capabilities

3.64

0.46

Result & Interpretation

The above table indicates that according to perception of organization regarding vendor capabilities during product development in terms of financial assistance, technical assistance and timely flow of information is very strong and on the higher side and considered as an important factor (i.e. mean value: 4.15) but implementation side is bit low , still on the stronger side (i.e. 3.64) that indicates organizations are not fully implemented according to the perceived importance of vendor development capability. The significant value is less than 0.05 which indicates what have been perceived has not been implemented. Hence H5 is accepted that the perceived importance of vendor development capability is not equally implemented in procurement.

CONCLUSION

This study has done to examine the level of awareness of procurement among members of an organization and finally its impact on procurement implementation and the overall supply chain performance. We had to find out the whether perceived awareness and importance of procurement is equally implemented in procurement or not.It has been carried out extensively in the light of relevant literature available to the best of our knowledge. Businesses depend on their supply chain for what they need to endure and succeed. In the modern business world every business body can be distinguish into single or more supply chains activities. Supply chains cover the business and their activities which are required to plan, make, distribute and utilize of a product or service

Moreover, to ensure the testability and precision of the research, supply chain operational reference model has been used for empirical analysis. We used the source part of SCOR model in which we had five variables. We collected the data by using questionnaire as an instrument targeting to the procurement of pharmaceutical industry of Pakistan with the sample size of ten pharmaceutical companies including both multinational and national companies.

We conclude that procurement is considered as an important element in the whole supply chain process and it plays a key role in the organizations performance and profitability especially in pharmaceutical industry. Procurement has a significant impact on the final product due to the nature of the product. After the statistical work and interpretations, we can say that what have perceived by the companies about the awareness and importance of procurement has not been implemented. Companies are unable to fully implement the procurement procedures according to their perceived importance and awareness of the procurement.

However there are still some areas where work would be pursued in forthcoming studies to overcome the limitations of this work.

Recommendations

It is recommended for the future research that to develop or design a model for a procurement procedures and policies for organizations to attain the maximum implementation of the perceived importance of procurement in order to get the competitive advantage over the rivals.

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