A Research Project Report On “Impact of packaging on consumer buying behavior” SUBMITTED TO: KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR. SUBMITTED BY: NO NAME EXAM NO 1. Chaus MahammadAadil MahammadHanif 603 2. Sadarawala MahammadAbrar MahammadShafi 681 3. Thakor AlpeshKumar Rataji 699 4. ‘Thakor Anilkumar Majuji 700 N.P COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADI. (B.B.A PROGRAMME)PREFACE In today’s world business activity plays dynamic role and environment is also changing due to the existence of new technolo; . To understand the changing market behavior the organization has to do a systematic study. A project work is a scientific and systematic study imtended to catch the nerves of the problem with the application of management concepts. This project is based on the topic which is assigned to us by our respected teacher the topic which I took for it: “Impact of packaging on consumer buying behavior” We are fortunate enough to grab the opportunity given by our institute as a part of our curriculum in the Bachelor of Business Administration Program, Kadi Sarva Vishwavidyalaya University (KSV). The scope of the project report is limited to study of only kadi area, Our work in this project is a humble attempt towards this end. In spite of our best efforts there may be error of omissions, which may please be excused.ACKNOWLEGEMENT To make a project of this magnitude is impossible without a dedicated effort and perfect guidance. We would like to express our deep feeling of gratitude to the under mentioned officials for their assistant, guidance and inspiration before and throughout the project. We are very thankful to our KADI SARVA VISHVAVIDYALAYA UNIVERSITY and N.P COLLEGE OF COMPUTER STUDIES & MANAGEMENT who give us an opportunity to get this practical knowledge via preparing a research project report on selected topic. We are greatly thankful to our principal Dr. Vijay M Chavada and Prof. Mahesh Patel our head of department We are also thankful to our project coordinator Prof. Ashish Vaidh and Class coordinator Prof. Mihir Pathak who had provided us valuable information about the project report and for his outstanding and undeniable considerations. Working on the project is hard, need hard work and concentration, What made it possible is the support we received from those around us. We thank to all the faculties of our college for giving us guidance, encouragement and right path to work on, We thank everybody who has directly or indirectly helped us in this project to make it successful.EXECUTIVE SUMMARY The aim of this thesis is to get the A study to point toward role of packaging on consumer buying behavior. The basic purpose of behind it to find out how such factors are behind the success of packaging. According to this research I try to find the positive relationship between independent variable and dependent variables. For collecting the data I will use the questionnaire, while for analysis will be I will use SPSS 16. A sample of 145 consume selected to test the reliability of the model. The significance of the study, its delimitation and limitations are discussed. The research is based in Pakistan. The consumer buying behavior is dependent variable. The packaging is the most important factor. Packaging elements like Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation is taken as predictors. Due to increasing self-service and changing consumers’ lifestyle the interest in package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. So package performs an important role in marketing communications, especially in the point of sale and could be treated one of the most important factors influencing consumer's purchase decision. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer's purchase decision. By this article we seek to reveal elements of package having the ultimate effect on consumer choice. Taking into consideration that package could be treated as a set of various elements communicating different messages to a consumer; the research model was developed and tested in order to reveal impact of visual and verbal package clements on consumer's purchase decisions.INDEX ‘Chapter ‘Sub Particulars Page Number _| Number Number Certificate I Preface I H | Acknowledgement a IM | Executive summary i 1 INTRODUCTION Ll Introduction 2 12 History 2 13 Types of Packaging 8g 14 Packaging trends for 2016 10 LS Functions of Packaging 12 2 Introduction to the study 24 Tntroduction about title 15 2.2 Objective of research 15 23 Research Methodology 16 24 Limitations of study 7 3 Literature Review 3A Literature Review 18 3.2 Research Gap 26 4 Data Analysis and interpretation 26 5 Finings and Observations 40 onclusion: 4 Bibliography 42 QuestionnaireKADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR In nowadays competitive environment the role of package has changed due to increasing self- service and changing consumers’ lifestyle. Firms’ interest in package as a tool of sales promotion is growing increasingly. Package becomes an ultimate selling proposition stimulating impulsive buying behaviour, increasing market share and reducing promotional costs. According to Rundh (2005) package attracts consumer's attention to particular brand, enhances its image, and influences consumer's perceptions about product. Also package imparts unique value to products (Underwood, Klein & Burke, 2001; Silayoi & Speece, 2004), works as a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar products, stimulates customers buying behaviour (Wells, Farley & Armstrong, 2007). Thus package performs an important role in marketing communications and could be treated as one of the most important factors influencing consumer's purchas decision. In this context, seeking to maximize the effectiveness of package in a buying place, the researches of package, its elements and their impact on consumer’s buying behaviour became a relevant issue. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer's purchase decision. Some of researchers try to investigate all possible elements of package and their impact on consumer’s purchase decision (Silayoi & Speece, 2004; Silayoi & Speece, 2007; Butkeviciene, Stravinskiene & Rutelione, 2008), while others concentrates oon separate elements of package and their impact on consumer buying behaviour (e.¢., Vila & Ampuero, 2007; Madden, Hewett & Roth, 2000; Underwood ef al., 2001; Bloch, 1995). Moreover some researchers investigate impact of package and its elements on consumer’s overall purchase decision (¢.g., Underwood et al., 2001), while others — on every stage of consumer's decision making process (e.g. Butkeviciene et al., 2008), Furthermore the abundance of scientific literature on this issue do not provide unanimous answer concerning impact of package elements on consumer's buying behaviour: diversity of the results in this area depends not only on research models constructed and methods employed, but on the context of the research too. All above mentioned confirms the necessity to investigate this N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADL 1KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR issue in more detail. In the light of these problematic aspects, research problem could be formulated as following question: what elements of a package have an ultimate effect on consumer purchase decision? The aim of this paper ~ basing on theoretical analysis of package elements and their impact on consumer's purchase decision empirically reveal the elements having the ultimate effect on consumer choice in a case of different products. (Role of Packaging on Consumer Buying Behavior-Patan District , June 2012) Overview Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business, and institutional, industrial, and personal use, 1. Ancient era The first packages used the natural materials available at the time: baskets of reeds, wineskins (bota bags), wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials were used to form packages as they were developed: for example, early glass and bronze vessels. The study of old packages is an important aspect of archaeology. The earliest recorded use of paper for packaging dates back to 1035, when a Persian traveller visiting markets in Cairo noted that vegetables, spices and hardware were wrapped in paper for the customers after they were sold. N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADL 2KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR 2. Modern era inning ‘The use of tinplate for packaging dates back to the 18th century. The manufacture of tinplate was long amonopoly of Bohemia; in 1667Andrew Yarranton, an English engineer, and Ambrose Crowley brought the method to England where it was improved by ironmasters including Philip Foley. By 1697,John Hanburyhad a rolling — mill at Pontypool for making "Pontypool Plates”. The method pioneered there of rolling iron plates by means of cylinders enabled more uniform black plates to be produced than was possible with the former practice of hammering. Tinplate boxes first began to be sold from ports in the Bristol Channel in 1725. The tinplate was shipped from Newport, Monmouthshire. By 1805, 80,000 boxes were made and 50,000 exported. Tobacconists in London began packaging snuff in metal-plated canisters from the 1760s onwards. Canning With the discovery of the importance of airtight containers for food preservation by French inventor Nicholas Appert, the tin canning process was patented by British merchant Peter Durand in 1810. After receiving the patent, Durand did not himself follow up with canning food. He sold his patent in 1812 to two other Englishmen, Bryan Donkin and John Hall, who refined the process and product and set up the world’s first commercial canning factory on Southwark Park Road, London, By 1813, they were producing the first canned goods for the Royal Navy. The progressive improvement in canning stimulated the 1855 invention of the can opener. Robert Yeats, a cutlery and surgical instrument maker of Trafalgar Place West, Hackney Road, Middlesex, UK, devised a claw-ended can opener with a hand-operated tool that N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADL 3KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR haggled its way around the top of metal cans, In 1858, another lever-type opener of a more complex shape was patented in the United States by Warner of Waterbury, Connecticut. Paper-based packaging Set-up boxes were first used in the 16th century and modern folding cartons date back to 1839. The first corrugated was produced commercially in 1817. in England. Corrugated (also called pleated) paper received a British patent in 1856 and was used as a liner for tall hats, Scottish-born Robert Gairinvented the —_ pre-cut paperboard box in 1890—flat pieces manufactured in bulk that folded into boxes. Gair's invention came about as a result of an accident: as a Brooklyn printer and paper-bag maker during the 1870s, he was once printing an order of seed bags, and the metal ruler, normally used to crease bags, shifted in position and cut them. Gair discovered that by cutting and creasing in one operation he could make prefabricated paperboard boxes. Commercial paper bags were first manufactured in Bristol, England, in 1844, and the American Francis Wolle patented a machine for automated bag-making in 1852. 3. 20th century Packaging advancements in the early 20th century included Bakelite closures on bottles, transparent cellop hane overwraps and panels on cartons. These innovations increased processing efficieney and improved food safety. As additional materials such asaluminium and several types _ of plastic were developed, they were incorporated into packages to improve performance and functionality In 1952, Michigan State University became the first university in the world to offer a degree in Packaging Engineering N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADL 4KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR In-plant recycling has long been common for producing packaging materials. Post-consumer recycling of aluminium and paper-based products has been economical for many years: since the 1980s, post-consumer recycling has increased due to curb side recycling, consumer awareness, and regulatory pressure. Many prominent innovations in the packaging industry were developed first for military use. Some military supplies are packaged in the same commercia | packaging used for general industry. Other mi ary packaging must transport materiel, supplies, foods, etc. under severe distribution and storage conditions. Packaging problems encountered in World War Tl led to Military Standard or "mil spec" regulations being applied to packaging, which was then designated "military specification packaging". As a prominent concept in the military, mil spec packaging officially came into being around 1941, due to Iceland experiencing critical losses, ultimately attributed to bad packaging. In most cases, mil spec packaging solutions (such as barrier materials, field rations, antistatic bags, and various shipping crates) are similar to commercial grade packaging materials, but subject to more stringent performance and quality requirements. As of 2003, the packaging sector accounted for about two percent of the gross national product in developed countries. About half of this market was related to food packaging.!""! Packaging has begun with natural materials such as leaves. Serial production was later done with products such as weaved materials and pots. It is estimated that glass and wood packaging are being used for around 5000 years. In 1823 Englishman Peter Durand obtained the patent for the first metal pack: ging made from sheet metal “canister”. Double stitched three peace can hegan to be used in 1900, Paper and cardboard have become important N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADL 5KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR packaging materials in 1900s. With the invention of plastic, it started replacing paper as a packaging material. General use of plastics in packaging applications has started after World War 2. Polyethylene ‘was produced in abundance during the war years and became an easily found material in the market right after the war. In the beginning it replaced the wax paper used in bread packaging. The growth in plastic packaging has sped up since 1970s. With today's technology and conditions, these previous materials have been replaced by more suitable and economic materials such as glass, metal, plastic, paper and cardboard. During those years: packaging was used only for transport and storage, but with these new materials it has also begun to advertise the product. So now packaging is part of marketing policy. This is because packaging creates the distinction between the same types of products sitting side by side on shelves. Glass Packaging from Egypt to Present Day Glass packaging first begun to be used in 1500 B.C in Egypt. Glass, first seen used as a pot, was being mixed with melted limestone, soda, sand, silicate and shaped into glass packaging Around 1200 B.C pots and mugs started to be made from molded glass. After the invention of the blow pipe in 300 B.C by the Phoenicians, the production of completely transparent glass was during the times after A.C. During the thousand years that followed glass production technique has improved and expanded. packaging the most was the patenting of the "automated ‘The development that affected glas rotary glass manufacture machine” in 1889. After the 1970s glass packaging begun to be used in high value products’ protection and has a wide range of usages today. N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADI 6KADI SARVA VISHWAVIDYALAYA UNIVERSITY, GANDHINAGAR Plastic -The Newest Form of Packaging rst artificial plastic was prepared by Alexander Parker in 1838 and was displayed at the Grand International Fair in London in 1862, This plastic was intended to replace natural materials such as ivory and was dubbed "parkesin”. In 1849 Charles Goodyear and Thomas Hancock developed a procedure that destroyed the sticky property and added elasticity to natural rubber. In 1851 hard rubber or "ebonite” has become commercial. In 1870 New Yorker John Wesley Hyatt was given a patent for “celluloid” produced in high temperatures and pressure and has low nitrate content. This invention is the first commercialized plastic and has remained as the only plastic until 1907 when Leo Hendrik Baekeland produced “Bakelite”. What exactly plastic was, was not known until 1920 when Hermann Staudinger's revolutionary idea was heard, All plastics, rubber and cellulose were claimed to be polymers or macto molecules. This assumption was first not accepted widely by many scientists, but Staudinger received the Nobel Prize in 1953 with this idea. Plastic packaging has begun to be used widely after 1950s. Towards the end of 1970s plastic packaging sector has begun to grow. Paper Packaging Begins In China eeaugse =e pen Paper is the oldest re-shapeable packaging material. Mulberry tree barks were used in China in the Ist and 2nd centuries B.C to wrap food, and paper making techniques have improved during the following 1500 years and transported to the Middle East. Paper making techniques have reached Europe and from Burope they reached England in 1310 and America in 1609. The first commercial cardboard box was produced in England in 1817, 200 years after China and cormgated cardboard was invented in 1850s, replacing wooden boxes in trade. The 20th century was the brightest era for paper and cardboard. N.P. COLLEGE OF COMPUTER STUDIES AND MANAGEMENT, KADL 7