IMPACT OF PACKAGING ON PRODUCT PATRONAGE IN PZ INDUSTRIES PLC
This research examined the impact of packaging on product patronage in PZ Industries Plc. The study employed primary method of datagathering.A total of 150 respondents who were customers that patronized the consumption of Bath soap were sampled.The research design is survey research design. The sample for this study comprises of one hundred and fifty (150). The sampling techniques used for this study was simple random sampling techniques while questionnaire was used to gathered data. It was designed by the researcher along with the variables under study and the questions it contains was draw from the research question.Data were analysed using chi-square formular. The study revealed that certain colour affects patronage decision of consumers, design wrapper affect patronage decision, front style of product get consumer attracted to product. It was also revealed that Lebel helps in distinguishing similar products. Consumer repeatedly patronized product due to front style, printed information and labeling of the products.It was concluded that the impact of packaging on product patronage can sometimes have a direct cost implication product prices but not withstanding it enhance product presentation and consumer acceptance even, package design that is effective in all its reunite actions could minimize cost as regard material storage handling and distribution.
It was recommended that PZ Company should improve on their front style, labelling, colour, design wrapper, and printed information to attract consumers in Ekiti State University, Ado Ekiti and the entire society at large.
TABLE OF CONTENTS
Title Page i
Table of Contents vii
- Background to the Study 1
1.2 Statement of the Problem 3
1.3 Research Questions 5
1.4 Objective of the Study 5
1.5 Statement of Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Brief History of Peterson Zochonis (Pz) 7
1.9 Definition of Terms 8
CHAPTER TWO: LITERATURE REVIEW
2.1 Meaning of packaging 11
2.2 Nature of Packaging 14
2.3 Theoretical Literature 15
2.4 Theoretical Framework 19
2.5 Empirical Review of Related Study 26
2.6 Conceptual Framework 29
2.7 Function of Packaging 32
2.8 Reasons for packaging of consumer product 34
2.9 Characteristic of Packaging Consumer Product 36
2.10 Roles of packaging strategies 40
2.11 Package evaluation of consumer Product 41
2.12 Policies and strategies of packaging 44
2.13 Impact of packaging on marketing of consumer product 44
2.14 Problems of packaging consumer product 46
2.5 Summary of Literature 48
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Area of Study 52
3.2 Research Design 52
- Data and method of collection 53
- Population of the study 54
- Sample size and sample Technique 54
- Reliability of Research Instrument. 55
- Validity of Research Instrument. 55
- Analytical Techniques. 55
- Variable Identification and Measurement 57
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.1 Description of Respondent 59
4.2 Questionnaire 62
4.3 Test of hypothesis 68
CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary 71
5.2 Conclusion 72
- Recommendations 73
- Background to the Study
Product packaging can be described as the overall presentation of a product by its manufacturer to the consumer in a form that will protect and preserve as well as to communicate a company images through it design. It is generally recognize that packaging of product is a universally acceptable idea that enable organization to deliver a product to the consumers in a favourable design (Cole,1997).
Package design can sometimes have a direct cost implication product prices but not withstanding it enhance product presentation marketing and consumer acceptance even, package design that is effective in all its reunite actions could minimize cost as regard material storage handling and distribution. According to Soroka (2002) packaging is generally perceived in its traditional role developing material for containing a product or designing covering for product protection. The package, sometimes referred to as the silent salesman and shopper’s window to the product because it often projects the initial impression they form about a product its quality or its value (Marsh,2007).
According to Alexander (1992) packaging in is broadcast and most creative use is more than just material and protection he said packaging has the capability to reduce cost and increase profit. Through the entire product supply chain packaging represents a type of peripheral cue, which may be diagnostic in low involvement shopping environment (Underwood, 1996) Packaging has the capability to minimize cost and improve profit through the entire product. This is a result of fact that design packaging is made to satisfy manufacturer’s objective through chain of distribution till it get to final consumer where there expectations are expected to be met and satisfied.
Product packaging is becoming more expensive as it being reflected in the prices of consumer products. Statistics have shown that price of consumer product have started increasing steadily in the recent times as a result of huge amount of money invested in a variety of packaging design for the purpose of keeping pace with consumers expectations. Most organization that are into consumer product manufacturing are not leaving stone unturned as regard huge investments in product package design which is already creating a reward of adverse effect on their turnover. According to Morris, (1997) product labels help consumer to differentiate a product more easily. Labeling helps consumers spend less time needed while searching for products that are decided to be bought by them. Consumers under time pressure their decisions are influenced when the package comes with a distinctive appearance that contains simple and accurate information (Silayoi, and Speece, 2004). Nowadays, there are consumers that pay more attention to label information since they are more concerned with health and nutrition issues. It attempts to understand the decision-making processes of buyers, both individually and in groups such as how emotions affect buying behaviour. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, sports, reference groups, and society in general. It is on this background that the research work aimed to examine impact of packaging on product patronage in PZ industries PLC.
1.2 Statement of the Problem
The study is out to evaluate the effect of product packaging on consumer behaviours. How every problem impinge on effective marketing of a company’s product. One of these problems is inappropriate packaging or complete lack of packaging products. Therefore, many products fail due to poor packaging while others especially consumer products produced by Pz flourish and perform well as a result of adequate packaging. Consequently, upon the non-challant attitude of most of these producers whose products failed, they have therefore experienced the following problems;
Consumer products manufactured by Pz protect content effectively while those produced ignorant firms lead to damages, piterages and customer dissatisfaction.
That Pz is a market leader in cosmetic and other consumer products can as well be attributed to adequate packaging. Consequently, the company continues to usurp large market share, hence, keeps on eliminating these firms that cannot compete effectively with them from the market due to poor packaging programmes.
However, in order to create the ‘right’ packaging for a product, marketers must understand the consumer buying process and where packaging becomes a variable that can influence the purchase decision. They must also understand what factors can influence buying behavior and what packaging elements are most important to compel the consumer to purchase their product over another.
1.3 Research Questions
For the purpose of this research work the following research question was raised.
What are the effect of packaging on product patronage
1.4 Objective of the Study
Based on the problem discovered, it is the major objective of this study to determine the impact of packaging on product patronage in Peterson Zochonis.
1.5 Statement of Hypotheses
The hypothesis formulated here are based on the problems and objectives of the study;
Ho: There is no significant effect of packaging on product patronage
Hi: There is significant effect of packaging on product patronage
1.6 Significance of the Study
This study is not a mere academic exercise, it will be great benefit to the following;
Firstly, the management of Paterson ZochonisPz Company Plc will benefit immensely from this study. This is because it will uncover some of the requirements for efficient and effective packaging which will enable the company to attract consumers to purchase its products at profit.
Secondly, the study will be of great benefit to industries and the Nigerian economy. This stems from the fact that good packaging helps companies to gain advantage over competitors.
Thirdly, the study will be the immense benefit to customers of Pz product as adequate measures that will be recommended will go a long way to boost the satisfaction and value delivery ability of Paterson Zochoris about all the study will not only be of benefit to the researcher but also the readers, as adequate knowledge and understanding will be gained from the information contained in the study.
1.7 Scope of the Study
There is a wide scope of the research on “impact of packaging on product patronage in PZ Industries Plc because in the today’s competitive world of goods and services provider companies and industries ,they want to get success and maintain their market presence for long terms and if they understand the buying intentions of consumer’s by using the product packaging as a key element than they can easily maintain themselves according to the current demands, wants and consumer’s preference and attractions towards a particular brands by establishing a new strategies by understanding the importance of each factor of packaging’s.
Due to financial and time constraints on the part of this researcher, the findings of this study will only be applicable to a small number of Nigerians, both male and female residing at Ado in Ekiti State. Also attitude of respond is not really encouraging.
1.8 Brief History of Peterson Zochonis (Pz)
Pz industries is a leading manufacturing and distributor of a variety product especially soaps and other personal care items including shampoo, baby powder and the likes. These are marked under PzCusson Flagship imperial leather brand and others including original source care the company also manufactures refrigerators and other white goods including freezers ad tur conditioner) detergents and cleansers fermine hygiene products. In 2003, Pz industries formed a joint venture with Ireland’s Glanbia to supply evaporated milk and milk powder in Nigeria. The company also acquired U.K’s hair care brand; Charles Woryhington in 2005. Although based in Manchester, Pz Cussons has long been contolled by the founding Zochonis fairly from- and has carved riches for itself by focusing on various markets in Africa especially in Nigeria, Ghana, Cameroon and East Africa. The company’s Africa operations continued to represent some 26% of its annual sales. Europe, especially the United Kingdom is the group’s largest market at 43% while the Asia Pacific region including Australia accounts for its African manufacturing sites, the company operates in Thailand, Poland, Australia and Athens.
However, the ownership of the company merge by two Pannlies George Peterson, originally from England and George Zochuis from Greece, hence, Paterson and Zochonis (Pz).
1.9 Definition of Terms
The following terminologies are hereby operationally defined as they are used in this study for a better reading and general comprehension of this research report.
Packaging: This is the process of putting a general product into a wrapper or better protected and easily portable.
Product: Product is anything that can be offered a market for attention acquisition or consumption. It indicates physical object (e.g. cars) services clecturing entertainment, personalities, place organisation and ideas.
Industries: Idustry according to Oxford Dictionary is the whole firms dealing in the same kind of product.
Consumer: Is the end riser of a given product or service
Promotion: All persuasive communication also claimed at generating sales or building a favourable attitude for an organisation product or service and organisation itself.
Communication Tools: This consists of six promotional influence favourable responses and stimulate profitable sales in the market place.
Target Market: This is the most viable and attractive segment of the market who the marketer wants to offer satisfaction to through his or her product. In nutshell, it is the segment of market which a marketer intends to serve through product offering.
Consumer Buying Behavior: The buying behavior of a consumer is the decision processes as well as the actions the consumer takes in buying and using products. Whether or not the consumer realizes it, there is far more that goes into the buying process than simply driving to the store and picking something off the shelf. There are mental and social processes that consumers go through that proceed the actual act of purchasing.
Brand Name: Is a distinguishing symbol, mark, logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. Legal protection given to a brand name is called a trademark
Sales promotions: These are set of marketing activities undertaken to boost sales of the product or service. There are two basic types of sales promotions: trade and consumer sales promotions.
Personal Sales: Is where businesses use people (the “sales force”) to sell the product after meeting face-to-face with the customer. The sellers promote the product through their attitude, appearance and specialist product knowledge. They aim to inform and encourage the customer to buy, or at least trial the product.
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