An Impact Analysis of Packaging on Consumer’s Buying Behaviour in Online Shopping Mode

 

Dr. Anoop Kumar Atria1, Dr. Harbhan Singh2*

1Assistant Professor, Department of Economics, SPC Government College, Ajmer Rajasthan.

2Assistant Professor, Department of Business Administration, SPC Government College, Ajmer Rajasthan.

*Corresponding Author E-mail: harbhan@gmail.com

 

ABSTRACT:

This paper envisages with the analysis of Buying Behaviour originated from packaging and its associated factors. During the regress pandemic situations, the buyers have reacted in different ways. This research is an effort to measures such preferences which have been placed significantly in the minds of buyers with notable distinction upon online shopping mode. We have approached more than 700 consumers, but somehow only 387 responded adequately. We collected their data and asked about their demographics and preferences for specific dimensions through the questionnaire. We have applied various univariate and multivariate statistical techniques and found a significant relationship between packaging and buying behaviour. The present study focuses upon the buying behaviour of consumers derived from packaging and related variables. It is expected that the study will unquestionably add significant knowledge in the areas of consumer behaviour with extraordinary contrast to packaging and intermediary processes.

 

KEYWORDS: Packaging, Buying Behaviour, Online Shopping, Consumer Satisfaction.

 

 


INTRODUCTION:

The wrapping material around a consumer article serves to contain, identify, describe, protect, exhibit, promote and make the product marketable and keep it clean. The packaging is much more than just the appearance of the product. The design of the package can affect everything from the rates of breakage in the shipment to if the stores will be willing to store it. For example, "displayability" is a significant concern. The original tilted metal container used for Log Cabin Syrup has been transformed into a design that has been easier to stack after retailers have become reluctant to spend the necessary space for inconvenient packages.

 

The package includes all the design and production activities of the container for a product. Packages can have up to three levels. The colony of cold water arrives in a bottle (primary packaging) in a cardboard box (secondary packaging) in a corrugated cardboard box (shipping package) containing six dozen bottles in cardboard boxes. The package is the first meeting of the buyer with the product. A good package attracts the consumer and encourages product selection. They can act as a "five-second spot" for the product.

 

Packaging is an intermediate process that directly reflects and affects a company’s investment. The buyer used to observe the packaging and then makes the decision to buy or not to buy the product and indirectly affects the company's profitability, which is why buyer behaviour is considered essential for the organization.

 

Apart from the above discussion, on the other side, packaging caused environmental destruction in many ways. The use of plastic, polyethene and other harmful packaging materials caused heavy destruction in soil, water, air, oceans, and even the human body. Associated people identified the issue and brought the concepts of ‘Green Packaging,’ ‘Life Cycle Assessment’, and others for protecting the environment. Therefore, the packaging is crucial for human and animal life and organizations.

 

This research is motivated by the pandemic period in which successive lockdowns have involved in daily life processes and since the local markets were shut down, a category of people preferred online shopping instead of going outside with the risk of being infected anonymously. On the other side, it involves a challenge for the companies to cater the products in sustainable way so that they can achieve higher consumer satisfaction ensuring all safeguards.

 

Since the pandemic is not over, it is required to manage things better from both sides. Consumers should get packaging as they want, and companies must deliver the product to the consumers ensuring all safety of themselves, consumers, and the environment.

 

This research is an exertion to determine the drivers of buyer behaviour that drive from packaging and packaging associated variables. Moreover, this research has buying behaviour derived from packaging as principal variable and other related variables areas associated ones.

 

RESEARCH OBJECTIVES, HYPOTHESIS AND METHODOLOGY:

The objectives of this study are as follows:

1. To know the impact of packaging upon the behaviour of buyers and consumers.

2. To examine the relationship between different drivers of Consumer Satisfaction and Buyer Behaviour regarding packaging during online purchases and consumption.

The hypothesis under study is:

Ho: Packaging of the Product has no significant impact upon the Buyer Behaviour.

Ha: Packaging of the Product has significant impact upon the Buyer Behaviour.

 

The proposed research involves an empirical investigation of buyer behaviour originated from product packaging and related factors. The proposed research is characterized by the prior formulation of specific research questions and hypotheses testing. Thus, the information needed is clearly defined, and as a result, this research is pre-planned and structured. It is typically based on a predetermined representative sample and specifies the methods for selecting information sources and collecting data from those sources. The convenience sampling technique was used to assemble information. A Google Form was designed having different kinds of questions related to demographics and packaging including statements related to packaging with the Five Point Likert Scale. The Google Form sent to a sizable number of respondents in which 387 respondents replied firmly, and henceforth the sample was of 387 Respondents.

 

The collected data was operationalized with different statistical techniques, including Linear Regression with the help of SPSS.

 

REVIEW:

Hao, Liu, Chen, Sha, Ji, and Fan, (2019) contrasted the expanding reputation of world-wide environmental protection and the concept of sustainable development, eco-responsiveness has become crucial. In this consideration, green Packaging has accepted increasing consideration in the logistics industry. According to the estimation results, even though most consumers have insufficient specific knowledge regarding green Packaging, they have a reasonably strong willingness to pay for it. Additionally, it is noticed that contrasted with the Price and presence of green Packaging, consumers would like to assign larger importance to the feasibility of green Packaging, such as convenience, reusability, and protective capability.

 

Deliya and Parmar (2012) stated that the packaging is the most crucial factor. Consumer buying behaviour depends on the Packaging and its features-packaging elements like Packaging colour. Background Image, Packaging Material, Font Style, Design of the wrapper, Printed Information, and Innovation are considered predictors. Due to increasing self-service and changing consumers' lifestyles, the interest in the package as a tool of sales promotion and stimulator of impulsive buying behaviour is growing increasingly. So, the package performs a vital role in marketing communications, especially at the point of sale, and could be considered as one of the critical factors influencing Consumer's purchase decision.

 

Shah, Ahmed, and Ahmad (2013) stated that consumer buying decision is firmly based on Packaging and its features. We predict packaging colour, packaging material, background image, design of the wrapper, printed information, innovations, font style. Due to rapidly changing the lifestyle of the people are engaging in Packaging because the Packaging ensures the people that the product is original and the producer used the Packaging as a purpose for the easy delivery, for the safety purposes and also used as a tool of sale promotion. Packaging is an essential element in the sale promotion and treating one of the most critical factors influencing customer buying decisions. The Packaging describes information about the product like where it was made, when it was made, what it contains, how it is to use, etc. They found that the package elements are the most critical factor influencing the Consumer's purchase decision. The producer used printed information in Packaging as a promotion of the product as compared to a used costly advertisement.

 

Raheem, Parmar, and Ahmed (2014) found that Packaging is one of the essential factors driving the success of a brand. According to the research, it has been observed that Packaging is the most crucial factor and the packaging components like Colour, Packaging material, Design of Wrapper, and innovation are more important factors when consumers make any buying decision, and the Packaging is crucial for Consumer's purchase decisions.

 

Deliya (2012) explored the importance of packaging design as a tool for communication and branding is developing in cutthroat markets for packaged FMCG products. When consumers search for and process information in-store, the product's package can encompass significant and useful information. Product packaging ways the end of the 'promotion chain' and is close in time to the definite pure promotion chain already plays an important role in predicting consumer outcomes. Packaging also conveys brand identification and label evidence like usage instructions, contents, and a list of ingredients or raw ingredients, warnings for use, and instructions for the protection of the product.

 

How great is the importance of package in marketing communications, especially at the point of sale, and how much does it influence Consumer's purchase decisions. Consumer buying behaviour is dependent on the Packaging and its features. Packaging elements like colour, background image, material, font style, design of wrapper are taken as predictors.

 

Poturak (2014) explored the role of the package has changed due to the marketing environment and increasing changes in consumer desires. Companies are interested in Packaging as a tool to increase their sales and to reduce promotional costs. Good Packaging helps to identify the product to the consumers. The producers try to make packing original and in a way that will satisfy consumers. Packaging is use for marketing communication purposes, and they are the vital element that influences the buying behaviour of the individual. Through verbal and pictorial symbols, Packaging can inform the potential buyers about the content of the product, property, usage, advantages, and risks. By investigating peoples' perceptions about the role of Packaging on consumer buying behaviour, this study showed that various factors influence the buying behaviour of consumers such as Innovation, Packaging Colour, Printed Information, Background image, Packaging Material, Design of Wrapper of the product. However, despite all these factors, there is one more significant factor that always comes in front of all these: price. Consumers are highly affected by the Price of products while purchasing.

 

Abdullah, Kalam, and Akterujjaman (2013) noted that the packaging is a wrapping of a product that holds the information regarding the product and the manufacturer of a product. The package becomes an ultimate selling proposition that stimulates impulsive buying behaviour, increases market share, and reduces promotional costs. Colour of packaging and front style of Packaging has a perfect positive correlation to the consumer buying decision. Lovely background of Packaging, handling, and transport facility of Packaging and available information on Packaging has a high degree of positive correlation with the consumer buying decision. The attractiveness of Packaging and printed information on Packaging has a low degree of positive correlation with the consumer buying decision.

 

The consumer does not purchase the product basically, he or she purchases the satisfaction. Satisfaction depends on the various factors where Packaging is one of them. Packaging consists of different elements. The anticipated sales of a product or service also depend on the appropriate Packaging of that product or service and the accuracy of Packaging depends on the proper decisions concerning the assortment of packaging elements. Since the packaging elements have a significant impact on the accuracy of Packaging and the consumer buying decision, the marketers of Bangladesh should consider these factors to offer their product or services and develop their marketing strategy accordingly.

 

DATA ANALYSIS AND INTERPRETATION

Table 1: Descriptive Statistics

 

N

Range

Mean

Std. Deviation

Gender

387

1.0

1.368

.485

Age

387

4.0

2.644

1.088

Occupation

387

3.0

2.793

1.202

EduStat

387

3.0

3.437

0.831

MotivationOnline

387

8.0

4.080

2.373

ComparisonBrand

387

2.0

2.563

0.788

ShopApp

387

9.0

2.356

2.215

PrefDisc

387

4.0

2.747

1.792

IncLevel

387

3.0

2.494

1.310

PurFreq

387

3.0

2.759

0.664

AwarenessBrand

387

2.0

2.540

0.832

The above Table 1 is showing descriptive statistics of different variables under present study namely Gender (1.368±0.485), Age (2.644±1.088), Occupation (2.793±1.202), Education Status (3.437±0.831), Motivation factor(s) for online shopping (4.080±2.373), Comparison between different brands (2.563±0.788), Shopping App (2.356±2.215), Preference for discount (2.747±1.792), Income Level (2.494±1.310), Purchasing Frequency (2.759±0.664), and Brand Awareness (2.540±0.832).

 

The relationship of packaging and buyer behaviour is measured by their individual components stated in the research instrument. Packaging and related variables are measured by the cumulative responses of consumers about the packaging of different products. Buyer behaviour is measured by the responses of consumers about the different dimensions of packaging of different products.

 

Here, the Buying Behaviour (Bbehav) is taken as dependent variable and different components of Packaging namely Appearance of Package (PackAppear), Information on Package (PackInfo), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging reflects Social Status (PackSocialStat), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Innovative Packaging (PackInnov), Packaging Background (PackBack), New Design Packaging (PackNewDesign), Packaging Value (PackValue), Packaging Colour (PackColor), Packaging Fonts (PackFont), Excellent Packaging (PackExc), Packaging Taste (PackTaste)  are taken as independent variables. The relationship between these three is measured through Multiple Linear Regression with suitable assumptions of Linearity, and Multicollinearity.

 

Table 2: Variables Entered/Removeda

Model

Variables Entered

Variables Removed

Method

1

PackAppear, PackInfo, PackNotCons, HighQuaPack, PackRecom, PackSocialStat, PackReuse, PackDesign, PackShape, SupPack, PackInnov, PackBack, PackNewDesign, PackValue, PackColor, PackFont, PackExc, PackTasteb

.

Enter

a. Dependent Variable: Bbehav

b. All requested variables entered.

 

 

In the above table 2, there is only one model with Buying Behaviour (Bbehav) as dependent variable and Appearance of Package (PackAppear), Information on Package (PackInfo), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging reflects Social Status (PackSocialStat), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Innovative Packaging (PackInnov), Packaging Background (PackBack), New Design Packaging (PackNewDesign), Packaging Value (PackValue), Packaging Colour (PackColor), Packaging Fonts (PackFont), Excellent Packaging (PackExc), Packaging Taste (PackTaste) as independent variables and during fitting the regression line no variable was removed and the method was Enter.


 

Table 3: Model Summarya

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics

R Square Change

F Change

df1

df2

Sig. F Change

1

0.976a

0.952

0.938

0.136

0.952

66.014

20

66

0.000

a. Predictors: (Constant), Consumer Satisfaction Score, PackInfo, PackNotCons, PackReuse, PackSocialStat, PackDesign, HighQuaPack, PackRecom, PackColor, SupPack, PackBack, PackInnov, PackNewDesign, PackAppear, PackCog, PackValue, PackExc, PackFont, PackTaste, PackShape

 


The above Table 3 of Model Summary is providing the information such as R, R2, adjusted R2, R2 change and the standard error of the estimate while fitting the regression line between Buying Behaviour (Bbehav) and Appearance of Package (PackAppear), Information on Package (PackInfo), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging reflects Social Status (PackSocialStat), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Innovative Packaging (PackInnov), Packaging Background (PackBack), New Design Packaging (PackNewDesign), Packaging Value (PackValue), Packaging Colour (PackColor), Packaging Fonts (PackFont), Excellent Packaging (PackExc), Packaging Taste (PackTaste). As illustrated in the table, 93.80% of the total variance in the Buying Behaviour (Bbehav) is explained by the regression model. Here, R explains the correlation between the observed and expected values of Appearance of Package (PackAppear), Information on Package (PackInfo), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging reflects Social Status (PackSocialStat), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Innovative Packaging (PackInnov), Packaging Background (PackBack), New Design Packaging (PackNewDesign), Packaging Value (PackValue), Packaging Colour (PackColor), Packaging Fonts (PackFont), Excellent Packaging (PackExc), Packaging Taste (PackTaste). The standard error of the estimate measures the dispersion of the Appearance of Package (PackAppear), Information on Package (PackInfo), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging reflects Social Status (PackSocialStat), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Innovative Packaging (PackInnov), Packaging Background (PackBack), New Design Packaging (PackNewDesign), Packaging Value (PackValue), Packaging Colour (PackColor), Packaging Fonts (PackFont), Excellent Packaging (PackExc) and Packaging Taste (PackTaste) around their means which is 0.136. This is the standard deviation of the error term and the square root of the Mean Square for the Residuals in the ANOVA table given below:

 

Table 4: ANOVAa

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

24.451

19

1.287

69.442

0.000b

Residual

1.242

367

0.019

 

 

Total

25.692

386

 

 

 

a. Dependent Variable: Packaging Satisfaction Score

b. Predictors: (Constant), PackAppear, PackInfo, PackNotCons, HighQuaPack, PackRecom, PackSocialStat, PackReuse, PackDesign, PackShape, SupPack, PackInnov, PackBack, PackNewDesign, PackCog, PackValue, PackColor, PackFont, PackExc, PackTaste

 

The ANOVA is given in the Table 4 and the significance value is 0.000 which is less than critical value of 0.05, therefore the Buying Behaviour (Bbehav) has significant different mean than Appearance of Package (PackAppear), Information on Package (PackInfo), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging reflects Social Status (PackSocialStat), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Innovative Packaging (PackInnov), Packaging Background (PackBack), New Design Packaging (PackNewDesign), Packaging Value (PackValue), Packaging Colour (PackColor), Packaging Fonts (PackFont), Excellent Packaging (PackExc), Packaging Taste (PackTaste), and consequently, has linear relationship. Henceforth, the null hypothesis that Packaging of the Product has no significant impact upon the Buyer Behaviour, is rejected. The Sum of Squares associated with the three sources of variance, Total, Regression and Residual. The Total variance is divided into the variance which is possibly explained by the independent variables i.e. 24.451 and the variance which is not explained by the independent variables (Residual) i.e. 1.242.

 


Table 5: Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

Correlations

Collinearity Statistics

B

Std. Error

Beta

Zero-order

Partial

Part

Tolerance

VIF

1

(Constant)

.757

.135

 

5.606

.000

 

 

 

 

 

PackSocialStat

.011

.017

.026

.635

.527

.549

.078

.017

.422

2.368

PackValue

.067

.018

.167

3.676

.000

.629

.412

.099

.349

2.869

SupPack

.054

.017

.126

3.191

.002

.667

.366

.086

.466

2.148

HighQuaPack

.085

.022

.137

3.877

.000

.559

.431

.104

.580

1.723

PackInfo

.030

.016

.057

1.833

.071

.252

.220

.049

.753

1.327

PackColor

.011

.021

.026

.521

.604

.696

.064

.014

.298

3.350

PackShape

.075

.022

.185

3.345

.001

.770

.381

.090

.237

4.218

PackExc

.019

.021

.047

.917

.363

.711

.112

.025

.278

3.601

PackDesign

.046

.018

.098

2.561

.013

.540

.301

.069

.493

2.027

PackNewDesign

.023

.020

.049

1.127

.264

.701

.137

.030

.378

2.642

PackNotCons

.034

.016

.068

2.090

.041

-.115

.249

.056

.691

1.447

PackBack

.021

.020

.044

1.040

.302

.713

.127

.028

.403

2.482

PackFont

.048

.021

.108

2.226

.029

.756

.264

.060

.305

3.278

PackInnov

.004

.024

.009

.187

.852

.655

.023

.005

.300

3.336

PackTaste

.040

.023

.088

1.730

.088

.745

.208

.046

.279

3.582

PackRecom

.064

.021

.113

3.089

.003

.515

.355

.083

.543

1.842

PackReuse

.065

.018

.132

3.682

.000

.574

.413

.099

.559

1.789

PackAppear

.037

.019

.084

1.973

.053

.737

.236

.053

.395

2.533

a. Dependent Variable: Packaging Satisfaction Score

 


The beta value in the unstandardized column for Constant is quite lower than the other predictors that means the constant makes the compelling and unique contribution to explaining the dependent variable. The t value is statistically significant being less than 0.05 for Appearance of Package (PackAppear), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Packaging Value (PackValue), and Packaging Fonts (PackFont). The coefficients of the Appearance of Package (PackAppear), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Packaging Value (PackValue), and Packaging Fonts (PackFont) represents the change in the mean response for one unit of change in Buying Behaviour (Bbehav), while the other terms in the model are held constant.

 

The variance inflation factor (VIF) indicates the quantum of variance of a coefficient is inflated due to the correlations among the predictors in the model. Furthermore, the Tolerance value is presenting the variability of the Appearance of Package (PackAppear), Packaging not considered (PackNotCons), High Quality Packaging (HighQuaPack), Packaging recommendation (PackRecom), Packaging Reusability (PackReuse), Design of Packaging (PackDesign), Shape of Packaging (PackShape), Superior Packaging (SupPack), Packaging Value (PackValue), and Packaging Fonts (PackFont). The Values of aforesaid predictors are not less than 0.10), it indicates that the multiple correlation with other variables are low, suggesting the absence of Multicollinearity. A VIF of the predictors are less than 5 ensuring the non-existence of multicollinearity.


 

Figure 1: Normal Residual Plot and Scatter Plot of Buying Behaviour (Bbehav)

 


The above mentioned “Normal P-P Plot of Regression Standardized Residual” ensures normality in the Buying Behaviour (Bbehav) and the dotted points are following the straight line with some minor fluctuations.

 

The above scatterplot of standardized residuals alongside predicted values is an arbitrary pattern concentrated around the estimated line of zero standard residual value. The above scatter-plot depicts clear relationship between the residuals and the predicted values which is steady with the assumption of linearity.

 

CONCLUSION:

The present study has revealed different dimensions that have an impact on the consumer's buying behaviour. Since the packaging of the product is not only for its safety but also to attract the customer to retain and bound him to buy the product, the packaging directly impacts the company’s profitability and viability. Consumer buying behaviour is complex and not possible to quantify. Since this research is focused on the packaging and related variables, only a few dimensions are measured and established relationships between them.

 

We have found that young consumers are keen on online shopping, and they tend to compare the discounts available at different shopping apps, but due to limitations of income, they prefer diverse credit terms and EMI options to purchase the product at higher prices.

 

Consumers are conscientious about the packaging and assume that it reflects their value in being representable to others. It is observed that when someone from a peer group recommends some product, the recommendation itself represents the value and status of that consumer who is recommending the product for someone in the peer group. Moreover, while recommending the product, they tend to consider superior and high-quality packaging so that the perceptions may maintain their image in the cognition of the other members of the peer group.

 

Packaging design, fonts, and other variable decide the appearance of the product and most of the consumer consider this critical variable as the decisive variable. The product's overall appearance attracts the customer's eyesight during shelf observation and making a purchase decision. Henceforth, the appearance is deciding element up to a significant extent depending upon the design, fonts, and associated variables.

 

This research achieved its objectives and concluded that the packaging has a significant relationship with buyer behaviour and consumer satisfaction.

 

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Received on 10.08.2021         Modified on 28.08.2021

Accepted on 22.09.2021     ©AandV Publications All right reserved

Asian Journal of Management. 2021;12(4):496-502.

DOI: 10.52711/2321-5763.2021.00078