CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
There is increased awareness today concerning socio-economic development of the developing countries. This awareness has led to rapid growth of industries whose involvement in economic sector has made great impact towards the enhancement and betterment of her citizenry in terms of output, quantity and quality of product offered.
The effect of packaging on the consumer buying behaviour being the core of this research work, unveil the significance of packaging as it influence consumer’s interest in company’s product. It is therefore important to note here that packaging is a strong motivational tool. It tends to be indispensable, even though the costs of packaging materials are still very high today. Its benefits cannot be underestimated. Packaging helps to protect a product by keeping it intact in its original state until it gets to the final buyer or consumers.
Many authors have various definitions to the term “packaging”. Unamka and Ewurum (1995), define packaging as the general group of activities in product planning which involves the designing and producing of a wrapper for a product.
Some perishable and non-perishable goals need packaging. Conventional and promotional functions are the main function of packaging. The former is to protect products against damages, while the latter is to stimulate sales. This is why a well designed and attractive package helps to persuade and convince the consumer to buy a particular product.
Designing a package means much. It can be designed in a manner that is appareling and in such a way as to attract consumer’s attention to the product and personal interest.
1.2 STATEMENT OF PROBLEMS
The impact of packaging on company’s product has become an object of concern to management of the organisation, being a known fact that packaging is a very important tool in marketing. It strategic importance goes beyond the area of improving image. A product package not only helps in protecting the product contents, but also provides useful information about the product like product price, brand name, denomination, ingredients, usage, method, expiring date and warning. It is when product contains many or all of the items mentioned above that it is seen as an effective product package design. Several factor have been adduced against the designing of attractive package for the products, especially on pharmaceutical product lines. This is what increases the cost of the final product. However, one must be concerned about the level of sophistication in Nigerian marketing system today. This has contributed to the complexity usually experienced through packaging of products by manufacturers as there are many positive changes taking place today. Prominent among these changes is the increasing number of self service outlets, which tend to reduce the operational cost of maintaining the sales assistance. The result of this is that, a well designed and attractive product package does the selling. This is regarded by many as a silent salesman. Consequently, the task of tackling this problem is vested on the manufacturer who must design attractive product packaging to restore confidence in their product.
Also, there is the problem of information inquisitiveness encountered by consumers in the areas where organisations activities are not guided by product concept. These problems are not always included in the packaging designs for effective product communication. Also, some of these items of information that are essential in repelling product dissonance are often ignored by manufacturers when designing product being sold unpackaged. Many Nigerians products are being sold unpackaged or they are poorly packaged in our market today. This is one of the many things the researcher is exposed to, despite the significant role packaging is playing.
1.3 RESEARCH HYPOTHESIS
Ho: Packaging does not attract buyers attention and affect their buying decisions or behaviour.
Hi: Packaging does attract buyers attention and affect their buying decisions or behaviour
Ho: Packaging does not usually portray the image of a product and as such it does not influence consumers buying behaviour.
Hi: Packaging usually portray the image of a product and as such it does not influence consumers buying behaviour.
1.4 PURPOSE OF THE STUDY
The study aims at finding out the extent to which packaging influences consumers buying behaviour as well as to offer useful suggestions on how to improve packaging, especially Edo pharmaceutical products and similar organisations. Packaging is principally a motivational tool that put consumers in charge and thus renders businesses entirely vulnerable to the consumers.
1.5 SIGNIFICANCE OF THE STUDY
It is no gainsaying that the important of packaging and its effect on the consumers is assuming a positive dimension in Nigeria today. A company does not only need to invest so much of its resources on packaging but it must be sure to receive the return in the form of expected sales due to repeat purchase and the attraction of new users and so on. It is therefore, not a wise packaging decision if it fails to yield these desired results.
Considering this therefore, the researcher wants to identify and highlight extensively those variables that are needed in pharmaceutical product package decisions and their effect on consumer buying decisions. Hence, at the completion of this work, the report will be of great value to pharmaceutical companies and researchers, salesmen and other in such related field.
1.6 SCOPE AND LIMITATIONS OF STUDY
Packaging is a vast area of production and manufacturing concern, although a number of scholar’s criticism packaging as an essential instrument of influence in the market place. In the face of contending controversy about the usefulness of packaging, it is sale to focus on some aspects of the concept. This study is therefore, concerned with the impact of packaging on consumer buying behaviour with a view of sales/profit quota attainment.
However, in the course of carrying out this research, the researcher was faced with a number of limitations.
Firstly, due to financial constraints in reaching other companies, only Edo Pharmaceutical Limited was used for the study. Also the researcher is faced with the problem of time constraint within which the research project must be completed. This is because the academic programme shares greater portion of the researcher’s time. It was not equally easy to get the required information from the company due to the uncompromising attitudes of the authority and staff of the company as well as the general public.
1.7 OPERATIONAL DEFINITIONS OF TERMS
Packaging: It is a material used to wrap or protect goods that are sold. It also refers to as the general group of activities in product planning and producing a container or wrapper for a product.
Consumer: This refers to a person who buys or uses services. They usually buy and use company products for their personal or household purposes.
Customers: These are buyers who use the finished product of an organisation as raw materials or components in their own operations.
Packet: A small paper or cardboard container in which goods are packed for selling.
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