The Effect Of Branding And Packaging Of Locally Made Cosmetic Products On The Buying Decision Of Customers: A Case Study Of Cosmetic Products In Kumasi, Ghana
Much has been discussed in the academic field with a greater inclination of packaging from the point of view of the producer (manufacturers, retailers, product designers etc.). However, less has been done with respect to packaging from the point of view of the final consumer. The purpose of this study is to therefore focus on the consumer, and how the efforts put behind product packaging technology of locally made cosmetic products influence consumer purchase decision. This study was governed by three specific objectives; the assessment of graphics (colour and artwork), package dimension (shape and design) and information (labels), and how these key areas of packaging influence consumer buying decision of locally made cosmetic products.
Ultimately, these aspects ought to reveal a general perspective of the impact of packaging on consumer buying decision of locally made cosmetic products. The research employed a descriptive design and respondents were drawn from hair saloons in the Kumasi Central Market(KCM) as the population for this study. A sample size of 100 respondents were selected through a probability sampling design (stratified and systematic sampling), and was furnished with questionnaires to facilitate data collection. The information was then analysed and subjected to interpretation to further understand the association between product packaging and consumer buying decision of locally made cosmetic products. An analysis of the responses received by the sample population was subjected to various measures of description and inference to determine the said association, ultimately setting the direction in which the research inclined to. Statistically, this study has endorsed the purpose of the research set out by indicating the existence of an association between product packaging and consumer buying decision of locally made cosmetic products. It was concluded that in support of the of the existing relationship between product packaging and consumer buying decision of locally made cosmetic products, firms in the cosmetic industry are justified in their efforts of designing attractive packaging in a bid to attract consumer interest and evoke purchase decision.
The packaging variables have shown their importance both independently and cumulatively in communicating product quality and features in a manner that is competitive. A major recommendation emanating from this study is an academic inquisition into the role of package technology on consumer buying decision. Alternatively, would be the option of looking into other consumables that highly depend on packaging for their marketing functions, especially those restricted from certain promotional efforts like alcoholic products and tobacco related brands. Aside from packaging, other marketing areas that strongly came out in the course of this study was the role of positioning strategies on consumer buying decision.
Table Of Content
- Title Page
- Table of Content
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 General Objective of the Study
- 1.4 Specific Research Objectives
- 1.5 Research Hypotheses
- 1.6 Importance of the Study
- 1.7 Scope of the Study
- 1.8 Definition of Terms
- 1.9 Chapter Summary
2.0 Literature Review
- 2.1 Introduction
- 2.2 Conceptual review
- 2.3 The Influence of the Dimensional Aspect on Consumer buying decision
- 2.4 The Influence of the Product Information on Consumer buying decision
- 2.5 Theoretical Framework
- 2.6 Empirical Review
- 2.7 Chapter Summary
3.0 Research Methodology
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population and Sampling Design
- 3.4 Data collection Method
- 3.5 Research Procedures
- 3.6 Data Analysis Method
- 3.7 Chapter Summary
4.0 Results And Findings
- 4.1 Introduction
- 4.2 Demographic Status
- 4.5 The Influence of Graphics on Consumer buying decision
- 4.5 The Role of Dimensions on Consumer Choice
- 4.5 The Influence of Product Information on Consumer buying decision
- 4.6 Cumulative Analysis
- 4.7 Chapter Summary
Discussion, Conclusions and Recommendations
- 5.2 Summary
- 5.3 Discussion
- 5.4 Conclusions
- 5.5 Recommendations
- Appendix Questionnaire: Locally Made Cosmetic Packaging
1.1 Background of the Study
According to the Department of the Environment of Northern Ireland, packaging may be defined as “all products made of any material of nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer”, (Department of the Environment, 2010).This definition holds a level of truth; that of the package being a product and as such ideally different from the product it contains. However, contrary to this, the view of a package as a product independent of the actual substance it bears is of little significance to consumers; theirs is a subconscious assumption of a synonymous nature between the package and the product contained within. As such it would therefore imply a linkage where a highly efficient and well-designed package would ultimately translate into a product of superior quality, yet researches have rarely isolated the cause of product satisfaction to the product’s package (Hess, Singh, Metcalf, & Danes, 2014).On the other hand, consumer buying decision, derived from human behaviour has been viewed as a volatile concept, difficult to measure and predict. The burden of the success of a product has fallen into the hands of the marketer, who observes consumer behaviour to create an ‘appealing’ package, consequently manipulating packaging elements in order to turn the once ‘volatile concept’ into a predictable and economically measurable outcome(Levin & Milgrom, 2004). However, as the consumer changes in need, awareness and choice, and as competition grows to attempt to level the playing field, so must the marketer adapt their strategies accordingly.
The cosmetic market in Ghana, over the past few years, has experienced an influx in the number of products available within the industry. From fragrances to skin care ranges, the consumer is spoilt for choice every time they walk into a retail store seeking for these items. Though top global brands such as Revlon, L’Oreal, Estée Lauder, Nivea, Avon and Oriflame (Rooney, 2011), have a presence in the country’s market, there is still cut throat competition from local players scrambling for a piece of the market (Situma, 2013). Gone are the days when a package was merely just a container that protected the product through various stages within the supply chain (Kotler & Armstrong, 2010), it is now also the last marketing communication tool that a company can use to advertise its product on the shelf of a retail store (Rundh, 2009).
Competition within this industry has forced local company stakeholders to invest in more attractive and innovative packaging to appeal to the consumer. A package is therefore highly instrumental in aiding a company’s positioning strategy as they target the consumer market. How the consumer places the value of the product within their mind, has quite a bit to do with the product packaging strategy in use (Ampuero & Vila, 2006). Since the consumer is faced with so many products every single time they visit a retail store, it is paramount that the package stands out from the rest of the array of similar products, and is attractive enough to evoke a choice. The package should be convincing, bringing together all its elements to appeal to the consumer’s need (Rundh, 2009, Kotler & Armstrong, 2010).
Cosmetic consumers in Ghana enjoy a wide range of products that are attractively designed and packaged to appeal to their tastes and preferences. Local companies are bringing to the table various components of interest when it comes to the graphics, dimensions and information included in the package. Attempts are made at ensuring that the package meets the changing nature of preference of consumers, how they use the product, when they use it, and why they use it.
1.2 Statement of the Problem
In 2010, McKinsey Global Institute, the economic research arm of McKinsey and Company, put together studies that revealed the potential of Ghana as the economic haven of the 21st century. As of 2008, Ghana’s collective Gross Domestic Product (GDP) amounted to $1.6 trillion, combined consumer spending estimated at $860 million and 52 cities within the region having a minimum population of 1 million. Within a decade from 2008, these figures are forecast to escalate to a combine continental GDP of $2.6 trillion under the control of four key industries within the region (consumer-based products, infrastructure, agriculture and resources), consumer spending rising to nearly $1.4 trillion and half of the Ghanaian population residing in developed cities. That said, it is impossible to ignore the potential wielded by the African continent within the global economic sphere. Even more compelling, is the role played by the local consumer retail sector (under which the cosmetic industry exists) that has registered a growth rate of 6.8% between 2002 and 2007. Ghanaian consumers are now more educated and exposed to global trends and as such their demand for more value from corporates has caused a spur in the retail circles of consumable products (McKinsey Global Institute, 2010).
Another dynamic angle that comes into play is internationalization and the concept of the global village which have become widely embraced phenomena, sipping under the consumer’s aesthetics and consequently causing a product’s package to become somewhat of a volatile concept for every market player (Rundh, 2009). As cosmetic manufacturers reach a stalemate on consumer satisfaction where the parity among products is getting smaller and smaller, the package comes in as the final and most valued tool in determining consumer purchase decision (Rundh, 2009; Shah, Ahmad & Ahmad, 2013).
Ghana’s cosmetic industry faces immense competition both from local manufacturers and global giants who have now found the Ghanaian turf rather lucrative to invest in and as such are bringing their products and services closer to the Ghanaian consumer (Situma, 2013). With the increase in competition, researchers have acknowledged the effect of product packaging on corporate investment with respect to capital and human labour. However the issue arising, and that which has informed the undertaking of this study, is to determine whether the efforts put behind a cosmetic product’s package affects the Ghanaian consumer’s decision to actually purchase cosmetic products.
1.3 General Objective of the Study
To analyse the impact of cosmetic packaging on the Ghanaian consumer buying decision with respect to locally made cosmetic products.
1.4 Specific Research Objectives
- To assess the influence of graphics (colour and artwork) on consumer buying decision.
- To analyse the role of package dimensions (shape and design) on consumer buying decision.
- To measure the influence information on a package bears on consumer buying decision.
1.5 Research Hypotheses
H01: There is no significant relationship between an attractive nature of a package colour, and its artwork on consumer buying decisions.
H02: There is no significant relationship between an attractive nature of a package dimension and consumer buying decisions.
H03: There is no statistically significant relationship between product information provided on the package and consumers buying relationship.
H04: There is no statistically significant relationship between information and graphics on products and consumer buying decisions.
H05: There is no relationship between product branding and packaging and consumer buying decision of locally made cosmetic products
1.6 Significance of the Study
This study will test the relationship between a product’s package and a consumer’s decision to purchase based on the package. The information emanating from this research will be of benefit to the following;
Cosmetic manufacturers and dealers with presence in the Ghanaian market or future intention of the said, who are keen on market information with respect to product packaging and consumer buying decision, which may inform their strategies.
Every study is of benefit to the realm of research in terms of knowledge addition and expansion. This study would be of benefit to researchers seeking information on marketing strategy of the cosmetic market in Ghana, with a focus on product packaging and consumer buying decision.
1.7 Scope of the Study
This research will look into the aspects of product packaging that may have an effect on consumer buying decision of the cosmetic products available in the Ghanaian market. The study will be primarily carried out in Kumasi among respondents of Kumasi Central market, Kumasi Ghana and as such may face a broad geographic representation of Ghanaian youth local cosmetic consumers. Another limitation worth noting would be a demographic factor of the sample population with respect to age and income as respondents will generally be within the youth bracket and of moderate income status.
1.8 Definition of Terms
Some of the terminologies used herein and what they refer to will be as follows;
The art and science behind the container that carries a product (Department of the Environment, 2010).
Consumer buying decision:
The buyer’s/user’s decision to actualize purchase intent into purchase decision (Miller , 2009).
Limitations and Delimitation of the Study
This study is undertaken to examine the effect of branding and packaging; however, the study is bordered on locally made products. This locally made products were restricted to cosmetics. The rationale behind this delimitation was to draw a concise and precise findings to specific products as regarding the effect of its branding and packaging. Also, due to the size of market, the Kumasi market was selected amongst several markets in Ghana. This is because, the market holds the best prospect for this study and it is accessible to the student. Finally, this study concentrated on branding and packaging and not other forms of products promotion. It is also pertinent to state that the findings of this study may not be applied on non-cosmetics products across Ghana.
Assumption of the study
It is assumed that the selected cosmetic products have large market acceptability. It is also assumed that the selected products have received goodwill over the years and that customers can easily identify with the products.
Organization of the Study
This study is organized and reported in five distinct but related chapters. Chapter one highlights the research problem, objectives, hypotheses and the limitation of the study. In the second chapter, the study reviewed literatures. The literatures were divided into conceptual, theoretical and empirical studies. The third chapter described the method employed in the sourcing of data, research design and method of data analysis. In the fourth chapter, we presented the findings of the study and tested the hypothesis using a defined statistical tool. While the fifth chapter dealt with the summary, conclusion and suggestions.
Discussion, Conclusions and Recommendations
In the previous chapter, the results emanating from the study were analysed, presented and interpreted in aiding the basis on which to structure the outcome of this study. In this final chapter, deductions and inferences will be made from the analysis carried out in preceding chapter and related to factors previously held true in other researches, as were outlined in the second chapter of this study. In conclusion, recommendations will be made for improvement of future research and study.
Numerous industries in the cosmetic realm spend vast amounts of resources in product packaging due to the fact that it serves a marketing role in the increasingly competitive consumer market. The researcher was keen in understanding the vital role of packaging within the spheres of consumer related products, and several questions arose from this inquisition; with the array cosmetic products lined up in numerous rows and from one aisle to another in retail stores, what drives consumer buying decision in selecting one item out of other seemingly similar options? If, supposedly, all other factors were held constant (price, quality, quantity etc.), what then informs the consumer, standing in front of a wide selection of cosmetic products, to decide which particular item to purchase? The researcher’s assumption was that there might be a significant connection between a package and consumer buying decision, in a manner to say that a well-designed product would attract a consumer’s attention to the point of causing a purchase decision. That said, the purpose of this study was to determine the influence that product packaging has when it comes to consumer buying decision of locally made cosmetic products.
In order to bring the aspect of product packaging into perspective, it was essential to create variables (components) that supported the concept of a ‘product package’. Inquisition into literature from similar studies revealed aspects such as colour, artwork, typography, design, technology, information and functionality among other elements. Through an assessment of major package characteristics, three aspects surfaced repeatedly; colour, artwork, design and information. With this aspects selected to structure the concept of product packaging, three research objectives were designed to govern the scope of the study in question. The first one combined colour and artwork, referring to it as ‘graphics’, and as such attempting to determine the role that it played in consumer buying decision of locally made cosmetic products. Secondly, the researcher coined ‘dimension’ as a component of packaging; bringing together another two apparently similar characteristics, that of design and shape. The third and final component was information. These three components (variables) acted as the pillars that would represent the concept of ‘packaging’ in testing its relationship with consumer buying decision with respect to locally made cosmetic products.
The methodology undertaken in this study had several aspects. The research employed a descriptive research design so as to further understand the phenomenon experienced in the consumer market, and which informed the inquiry posed by this study. The population under focus was the respondent population of Kumasi Central market, Kumasi, who totaled approximately 5,000 individuals as at February 2015. The researcher felt that this population, being representative of different cultures and characteristics by having respondents of varied nationalities, may shed more light in understanding consumer behaviour patterns, especially since the cosmetic industry was not an exclusively local affair, but served by both international and local corporations. The sample constituted 100 respondents from the institution. Data was collected at a primary level through the use of closed ended questionnaires and was analysed using the Software Program for Social Scientists (SPSS). Descriptive and inferential statistics were utilized in the analysis and ultimately in determining the status of the hypothesis set out in the study.
Some of the major findings that emanated from the analytical process was that majority of the respondents indicated that they considered product packaging played a role in their purchase decisions of locally made cosmetic products. This was further supported by statistics, which indicated that a positive relationship existed between the packaging components of graphics, dimension and information, and consumer purchase decision.
5.3.1 The Influence of Graphics on Consumer buying decision
With respect to package graphics as the first independent variable in this study, the outcome of the previous chapter indicated a generally favourable view towards the impact of graphics in consumer purchase decisions of cosmetic products. This outcome had been earlier supported by several authors, with an acknowledgement to the crucial part played by a package within the marketing function.
This study assessed package graphics on two fronts; colour and artwork. When it came to the aspect of colour, several facts came up in course of this research. Colour has found a way of fascinating various academicians and behavioural scientists; regardless of the colour preferences of different people, it is irrefutable that colour ignites a level of interest in people (Mehta & Zhu, 2009). This study concurred with this a majority of respondents indicating the important role that colour played in their product selection process. However, the notion of Ampuero and Vila (2006) that dark coloured packaging signified elegance and higher product quality was not supported by the respondents in this study. Though this fact may hold true for selected consumable items, it is clear that there is higher preference for products with bright colours with warm hues when it comes to locally made costmetic packaging. Since cosmetic products are essentially used to improve physical appearance, it is important that they appear bright, attractive and vibrant. It is in their ability to look fun and exciting that pulls at a consumers’ attention.
A correlation between a package colour and the product it contains or the brand it belongs to has also proved vital. The package falls between two spectrums; to communicate the brand which it represents and to introduce to the consumer the product they will interact with upon purchase. As such, the ability of the package to merge these two concepts and create a seamless continuity from one end to the other is important to the consumer subconscious need for ‘flow without interruption’ (Rocchi & Stefani, 2006). A twist is also introduced with the prospect of having a see through package that minimizes the use of vibrant colour to call at a consumer’s attention. See-through packaging allows for one to see exactly what they are buying and this has had an influence in how trustworthy a manufacturer is considered when choosing to use a transparent package. It is a bold statement; that of a firm confident in the product they put before the consumer. There is simply no need to have many theatrics when the product can automatically sell itself (Sevilla, 2012).
Another subset of the aspect of graphics that was put to test in this study is the use of artwork in product packaging. It is evident that art carries with it an air of elegance and refined sophistication. In ancient and medieval times, art was viewed as an affiliation of the high and mighty. This perspective has trickled down over time where art has become synonymous with ‘an expensive affair’ and where activities related to collecting valuable paintings can easily be summed into enormous financial gains. The trick however lies in tapping into this perceived value and creating a merger between that and product quality. Consumers have proved this possible by feeling the affluence of product packages that contain artwork; it feels like a piece of royalty, the ability to own something that might as well be a collectible piece is satisfying (Dairy Managemnt Inc., 2001; Hagtvedt & Patrick, 2008). There is simply no said association between various forms of art; abstract or otherwise, art is art, art is beautiful. It will be seen and appreciated regardless of where the product package designer chooses to position it. Artwork can therefore be manipulated by marketers in the quest to communicate sophistication and exemplary product value. Focus should however be placed in the ability of the artwork used on a package to relate the package with its brand and with the product within. Respecting the force played by this human need for coninuity cannot go unattended to.
Graphics are thus integral within the packaging world, stretching their reach of influence through various spectrums to create an ultimately appealing product. In any case, it all lies in image; you can only have one chance to make a powerful first encounter with your consumer.
5.3.2 The Role of Dimensions on Consumer buying decision
Package dimension can be discussed either with respect to package shape or design; the two have been used synonymously and consequently perceived as one and the same. This study made one aspect very clear when looking at human perception towards package design and perceived value; the less it appeared symmetrical, the more likely one was to be drawn towards it. Earlier in the second chapter, the Gestalt Principles of ‘the unified whole’ was discussed and related to expectations of human perception and consequently consumer behaviour. In the spirit of respecting the need for symmetrical order, the principles indicate that human interest is drawn to what appears complete in terms of being whole or complete. In this case, something abstract and different will be viewed as odd and lacking structural continuity hence the mind will perceive it as an anomaly (Spokane Falls Community College, 2013). However, this study has shown that the opposite is actually true; though the mind will actually recognize an anomaly of one item among seemingly ‘perfect’ alternatives, the anomaly will evoke interest and lead to purchase of a cosmetic product with the said characteristic. With this mind, the marketer is thus better off breaking various rules of symmetry and tending towards more whimsical shapes and designs when setting out to present the market with a unique product. It is the unique aspect about the package that nags at an individual’s interest; their need to want to unravel and understand it, has proved to cause consumer buying decision. Though a symmetrical product may create order in product shipment and storage, which is important as it moves through the supply chain (Kotler & Armstrong, 2010), it is important for the consumer to look at something with a touch of mischief in it that can go to the extent of carrying a decorative feature. Hill (2011) and Underwood (2011) discuss the role of the package after the purchase process and possibly after the product has been exhausted; the need to want to keep the package due to other reasons elongates the marketing process and makes the product more viable as a functional capacity and as a design feature in the home for a long time to come.
When it comes to perceived product quantity, this study revealed that shape design of product packaging had no relation with the amount of the product contained within. This would mean that a measure of weight would serve as a better determinant of product quantity rather than a mere assumption of what a particular design is likely to contain. The design should however not look like there is a defect with it in the form of a missing piece. The consumer will view at as a puzzle and as such the overall presentation of the shape and design should appear complete regardless of its structural appearance, as was discussed by Sevilla (2006).
5.3.3 The Influence of Product Information on Consumer buying decision
Information, the final component of the product package matrix, was the most supported aspect of this research from the responses received. It is not just a requirement, but is tasked with explaining product features at a more personal and detail level. This detail should however be limited to only that which is necessary and can fit on a label without making it crowded. Just as a crowded room can tend to be overwhelming to many individuals, marketers should ensure that when they design product package labels, the structure and content of the words used depict much without the need to use too many explanations.
Brand power is important in the consumer purchase process and thus consumer buying decision is heavily governed by the presence of brand logos and trademarks. These features tend to create trust between the consumer and the product because the item appears genuine. Firms can incorporate the use tactics such as watermarks to create the illusion of authenticity in their products. Ultimately, the quality of the label, and the information held therein has a very important standing in assisting a consumer overwhelmed with variety in a store. Once the information is included in a manner that is simple to identify and easy to read and comprehend, then a consumer’s ability to select that item is highly likely.
5.4.1 The influence of Graphics on Consumer buying decision
In the assessment of product packaging with respect to graphics (colour and artwork) and its impact on consumer buying decision of locally made cosmetic products, it can be concluded it is an important aspect in a consumer’s decision process and holds a significant bearing in their choice of locally made cosmetic products. Marketers and manufacturers should therefore regard package graphics as an important element when designing a product’s package.
5.4.2 The Role of Dimensions on Consumer buying decision
Dimensional aspects of a product’s package, with a focus on the item’s shape and design features play a measurable role in consumption behavioral patterns. It is as such fundamental that in the formulation of product package dimensions, marketers and manufacturers should remember to factor in consumer preference of the said aspect so as to drive increased product consumption.
5.4.3 The Influence of Product Information on Consumer buying decision
Information, in the outcome of this study has depicted itself as the most important factor in packaging. Consequently, key focus should be placed on the quality of information that is included on a product’s package due to the role it plays in the consumer purchase process.
With all the above discussions relating to product packaging variables, it can be concluded that in support of the alternative hypothesis (there is a relationship between product packaging and consumer buying decision of locally made cosmetic products) firms in the cosmetic industry are justified in their efforts of designing attractive packaging in a bid to attract consumer interest and evoke purchase decision. The packaging variables have shown their importance both independently and cumulatively in communicating product quality and features in a manner that is competitive. As such, marketers cannot rule out the importance of the marketing role played by a package in enhancing product awareness and creating an edge for the same among its various competitors and its role actualizing visibility and attractiveness, while communicating quality and dependability in the mind of the consumer(Ampuero & Vila, 2006; Rundh, 2009; Jafari, Sharif, Salehi, & Zahmatkesh, 2013). Therefore, as effort is placed in other aspects of product packaging such as technology, and further across the marketing function with respect to advertising and promotion, it is clear that packaging has curved out its place as a feature, more important than merely serving a shipment and protection role for the product in which it contains (Kotler & Armstrong, 2010), worth research, development and improvement with the changing dynamics of consumer behaviour and related market driven forces.
5.5.1 Recommendations for Improvement
184.108.40.206 The Influence of Graphics on Consumer buying decision
The assessment of the graphical aspect could have been improved in this study through an exclusive assessment of the impact of colour and artwork, from a psychological perspective in order to create a clearer understanding of consumer perceptions as governed by package related graphics.
220.127.116.11 The Role of Dimensions on Consumer buying decision
With specific regard to the dimensional aspects of product packaging, further analysis should be undertaken in the influence of package shape and design, as independent aspects of the product contained therein. This would go a long way in informing marketers and manufacturers on the dimensional trends of the consumer market based on the outcome they anticipate to make.
18.104.22.168 The Influence of Product Information on Consumer buying decision
The aspect of information has been previously discussed as the most important package variable within the confines of this study. A further look into consumption perception of information and its intrinsic interpretation may go a long way in informing marketers and manufacturers on how to structure the informational element of a product’s package in a manner that meets consumer needs within any given market.
5.5.2 Recommendations for Further Studies
While formulating the parameters of this study, other aspects of packaging may be worth academic inquisition such as the role of package technology on consumer buying decision. Alternatively, would be the option of looking into other consumables that highly depended on packaging for their marketing functions, especially those restricted from certain promotional efforts like alcoholic products and tobacco related brands. Aside from packaging, other marketing areas that strongly came out in the course of this study was the role of positioning strategies on consumer buying decision. Positioning in this respect would entirely be on the physical front, in terms of how and where products are arranged in a retail store and how that affects consumer behavioural patterns.
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