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Tone Vol

Impact of Packaging on Consumers in the Era of Liberalization

1. Introduction

                 Packaging today has grown in importance and is regarded as a vital marketing tool. Better packaging results in protection and saved transportation of products, reduces loss, damage and wastage of products and produce. It enhances product value and hence expands markets within and outside the country (Jakhar, 2004). For many products, industrial and consumer, the buyers first contact is with the package. Now–a–days several companies have taken packaging in a positive light. Furthermore, with the increased number of new products available, it is necessary to be ever vigilant regarding the strong promotional values which may be obtained from good packaging. The pressure on the packaging industry has resulted in new types of package and container, new types of can opener and protective caps for medicine bottles. For many consumer products, the package must serve as promotional vehicle and be suitable for transportation, storage in the cup board or freezer and even cooking in the micro wave.

                 Packaging industry in the country has witnessed a sea change in recent past and it is growing rapidly. In 1995 packaging material consumption was 6 million tones and it is estimated to touch 10 million tones by the turn of the century at normal industry growth. A quality product is not substitute for an effective package, but effective packaging can do the following: (1) make the way people think in favour of the product, (2) increase the visibility of the product and the company, (3) reinforce the brand image in store and home, (4) retain customers and attract new ones, (5) enhance the cost effectiveness of the marketing budget, and (6) increase the product’s competitive edge and profits (Masten, 1996).

In this paper we studied the impact of packaging in consumer buying behaviour in a remote urban area.

2. Motivation

                 The reason for study is that in a remote urban area the people get accustomed with the packages of several products even before they are introduced in the local market. Being dejected comunicationally most of the recent products may not be available readily in the market. However, through newspapers and television advertisement people remain aware about the special features of packaging of a particular product. As a case study we considered a town of Assam, viz. Karimganj. Karimganj town is the district headquarters of Karimganj District of south Assam, India and enjoys an international border with Bangladesh. The town is located at 240529 N latitude and 920 209 E longitude. The municipal area of the town is 6.09 square kilometres with a total population 52613 according to the 2001 census. This means that the town is quiet densely populated with a population density of 8693.2 persons/sq. km.  The town is at a distance of 247 kms. from the capital city of Assam (Dispur).

                  As northeast is connected through the chicken neck to the main block of India, hence the whole region suffers from communicational problems. Karimganj being a border town has no industrial development. Hence it remains a complete consumer market. Since, there is no liberalization of border trade between India and Bangladesh through Karimganj or similar other border towns, so Karimganj district depend upon the week road link with Guwahati, the only city of northeast India. The road link is week in the sense that the national highway that links Karimganj to Guwahati is often subjected to landslide, terrorist disturbances etc. 

3.  Methodology and Calculations

            The main objective of the study is to find out how packaging influence the people residing in the towns of the type discussed above. The study is based on a sample of size 73 collected randomly from people of both the sexes of several age groups. The composition of the 73 respondents are shown in the following table.

Table 1: Age and Sex composition of the sample.

                Age

 

       Sex

Below

20

 

20–40

 

40 and

above

 

Total

 

 

    Male

 

18

 

 

13

 

 

16

 

 

47

 

   Female

4

17

5

26

 

    Total

22

30

21

73

 The questionnaire consists of 23 questions. The questionnaire is designed based on a similar study made by Kundu and Sehrawet (2000 ) on some cities of Haryana. Table. 2 shows the reply of the respondents to these questions specified under sex as well as age classification. 

 Table 2: Detailed response to the queries of the questionnaire

 

 

 

 

Question      

 

Response

 

   Less than 20

20–40

 Greater than 40

 

 

 

Total

 

Male

 

Female

 

 

Male

 

Female

 

 

Male

 

Female

 

 

1. Is packaging a necessary part of product?

Yes

  8

 4

     12

15

10    

4

53

No

10

0

1

2

6

1

20

 

2. Is packaging a cost element?

 

Yes

9

4

12

12

13

3

54

No

9

0

1

5

3

2

19

 

3. Does packaging increase the sale?

Yes

15

3

12

15

15

2

63

No

3

1

1

4

1

3

10

 

4. Does packaging add to the value of the product?

 

 

 

 

Yes

7

3           

8

16

15

3

52

No

11

1

5

2

1

2

21

5. Is modification of packaging necessary time to time?

Yes

17

4

8

14

13

4

61

No

1

0

5

3

3

1

12

6. Does packaging helps in identifying the product?

Yes

18

4

9

15

13

4

63

No

0

0

4

2

3

1

10

                     

 Table 2  continued……

 

Question      

Response

 

   Less than 20

20–40

 Greater than 50

 

 

 

Total

 

Male

 

Female

 

 

Male

 

Female

 

 

Male

 

Female

 

7. Are marketers serious about packaging?

 

8.

 

Yes

8

3

9

13

9

3

46

No

10

1

4

4

7

2

27

8. Is labeling an important part of packaging?

 

9

9.

 

Yes

17

4

13

16

15

4

59

No

1

0

0

1

1

1

14

9. Whether packaging of a new product prompts the buyer to buy the product?

 

prompts

Yes

9

3

12

10

11

4

50

No

9

1

1

7

5

1

23

10. Is labeling increases the sale of product?

Yes

16

3

12

14

13

3

62

No

2

1

1

3

3

2

11

                     

Table 2  continued……

 

Question      

Response

 

   Less than 20

20–40

 Greater than 40

 

 

 

Total

 

Male

 

Female

 

 

Male

 

Female

 

 

Male

 

Female

 

11. Does packaging helps in avoiding adulteration?

Yes

12

2

5

7

9

3

39

No

6

2

8

8

7

2

34

12. Does package sometimes mislead buyer?

Yes

9

3

12

12

11

4

52

No

9

1

1

5

5

1

21

13. Do you think that packed products are injurious to health?

Yes

5

2

1

5

5

1

20

No

13

2

12

12

11

4

53

14. Is plastic package more useful than other packages?

Yes

1

1

6

8

2

3

21

No

17

3

7

9

14

2

52

15. Should packages be made such that they can be used as containers later?

Yes

13

4

12

11

11

4

55

No

5

0

1

6

5

1

18

                     

 From the table first we find out the questions in which the responses in favour (yes) and responses against (no) are nearer to each other. However if the responses are far apart then we conclude that there is total agreement or disagreement to the particular questions. For a particular question equally responses takes place if number of responses in favor is n/2 (where n is the number of respondents). The 95% confidence interval for n/2 is given by n/2 ± 1.96 Ö(n/4) (assuming normality of the proportion). The value of which is [25.87, 47.5]. Now, we consider those questions in which the number of respondents is in favor lies between 26 to 48 then we go for the detailed analysis for those questions age wise as well sex wise in order to analyze the response in details. Here we see that the response for the questions (13, 17, 20 and 23) falls within this range. The other responses provide a clear view about the opinion of the people.

4. Findings

            From the responses to questions other than (13, 17, 20 and 23) there is either total agreement or total disagreement amongst the respondents. Thus, the following conclusions may be drawn:

• Most of the people think that packaging is a necessary part of the product and also is important to increase the sale though it is a cost element.
• People express strong believe related to modification of packages along with time and that it also helps in the identification of the product.
• Though respondents express their doubts about the seriousness of the marketers in packaging the products but the general notion is that packages of the same company should have similar pattern.
• It was opined that product should have adequate packaging as it is good for health though sometimes packages are misleading.
• Another view came forward was that opening of packages were not in general a difficult task. However, the people are in favour of using the packages as container after using the goods contained in it.
• Similar views are also expressed in relating the labeling the products and that, labeling influences the sale of the products.
• One nice thing that was surveyed was the awareness of the people against plastic packages.
• So far as free sample was concerned a general agreement was noticed relating to the fact that marketers try to influence the buyers through free sample and are successful in doing so.

In regard to question number 13, 39 respondents are in favor of the proposal that packaging helps in avoiding adulteration. Again if we look at the age distribution of the respondents in Table 2, then we will find that most of the person in the age group 20 to 50 are in favor of the proposal and the others are not. This may be because the respondents of age less than 20 do not generally have the purchasing power and buy products from the market as and when asked for, by the elders of the family. The products purchased are generally the brand dictated by their elders and they do not have much role to play.  While the people of age more than 50 years adhere to the brands to which they are accustomed and do not like to experiment with new products that may even have a better packaging. Similar pattern is also noticed in question number 17, where it was asked if products should have adequate package. The reason for such close division of opinion can well be explained in the previous manner.

In regard to question number 20, which ask ‘If free sample is an element of cost?’ it was found that the response of all ages except the below 20 age group are in favor of the proposal. People of below 20 age group thinks that the free sample has nothing to with the cost of the product but this believe cannot be considered to be correct. It is probably their lack of maturity that results in such a decision. In question number 22, which asks, “While buying the product the purchaser should give importance on free sample?” are more or less similar with the previous statement. It has been found from the buyer’s behaviour that almost all respondents like free sample, but at the same time they also consider the ultimate cost of the product. Therefore marketer may give free sample with the product but it should not lead to increase the cost of the product.

 

5. Conclusion

It can be concluded that in a remote urban area where products take a long time to reach the consumer market, people are aware of the importance of the packaging. They want that it should be hygienic; differentiable from fake products and that the packets should be used for further use. Labeling is claimed to be an important legal document as it expresses the reliability of the product. However, free sample is not given much importance by the respondents as it is thought to increase the cost of the product and a means to attract the customer. 

 

6. References

 

Jakhar, M. (2004) Better packaging promises better living. The Economic Times, 25th October, 2004, Kolkata, pp. 13.

 

 Kundu. S.C. and Sehrawet. M. (2000) Impact of packaging on consumer buying behaviour. Indian Journal of Commerce, Vol. 55, No. 1 and 2, pp. 26–34.

 

Masten. D.L. (1996) Packaging’s proper role is to sell the product, in Varadrajan, Rajan P. (Ed). The Business of Marketing, Bombay: Jaico Publishing House.

About the Author

The author is currently serving in the department of business administration, Assam University, India as Reader.

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