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MAKERERE UNIVERSITY
FACULTY OF ECONOMICS
TOPIC: THE EFFECT OF PACKAGING ON CONSUMPTION LEVELS OF CUSTOMERS. A CASE STUDY
OF FRESH DIARY UGANDA LTD.
BY
NABISERE BETTY
07/U/11516/EXT.
SUPERVISOR
MR. SSEJJEMBA KENNEDY
A RESEARCH DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE AWARD OF BACHELOR OF COMMERCE DEGREE OF
MAKERERE UNIVERSITY.
MAY, 2011
i
DECLARATION
I Nabisere Betty, declare that this report is my original work and has not been presented and/or
submitted for any other degree to any university or institution before.
Signature: ……………………………… Date: ……………………………….
STUDENT‟S NAME: NABISERE BETTY
ii
APPROVAL
Nabisere Betty has been carrying out research entitled “Effect of Packaging on Consumption
Levels of customers”, using Fresh Dairy Corporation as a case study under my supervision. The
research report is now ready for submission to Makerere University in partial fulfillment of the
requirements for the award of Bachelor of Commerce Degree
SIGNED: ……………………………… DATE: …………………………………….
SUPERVISOR: MR.SSEJJEMBA KENNEDY
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DEDICATION
I dedicate this piece of work to my Grandmother Mrs.Serwadda Christine, my fathers (Stephen,
Norman, Collin, Allan), My Sisters (Nakibuule, Nakamanya), My Brother Hudson Kalema, my
course mates, my friend Kibuye Richard, Uncle Ssali, my Aunties Atiibwa Sybil and the rest.
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ACKNOWLEDGEMENT
My supervisor Mr. Ssejjemba Kennedy you have been very helpful in completion of this piece of
work. Only God can pay you back.
Friends Nabakiibi Maria, Namande Mable, Namuyomba Jackie, Kyohirwe Eunice, Amutuhaire
Molline, Kyampeire Damalie Annet, Nambalirwa Christine, Kyarimpa and my family.
Last but not least is the Almighty God who has kept me alive through this activity.
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TABLE OF CONTENTS
DECLARATION ................................................................................................................................... i
APPROVAL.......................................................................................................................................... ii
DEDICATION ..................................................................................................................................... iii
ACKNOWLEDGEMENT .................................................................................................................. iv
TABLE OF CONTENTS ..................................................................................................................... v
LIST OF TABLES ............................................................................................................................... ix
LIST OF FIGURES .............................................................................................................................. x
ABSTRACT ......................................................................................................................................... xi
CHAPTER ONE ................................................................................................................................. 1
INTRODUCTION ................................................................................................................................ 1
1.1 Background of the study ........................................................................................................... 1
1.2 Problem statement .................................................................................................................... 3
1.3 Purpose of the study ................................................................................................................. 3
1.4 Objectives of the study............................................................................................................. 3
1.5 Research questions ................................................................................................................... 4
1.6 Scope of the study .................................................................................................................... 4
1.6.1 Subject scope ............................................................................................................................. 4
1.6.2 Geographical scope ................................................................................................................... 4
1.6.3 Time scope ................................................................................................................................. 4
1.7 Significance of the study.......................................................................................................... 4
CHAPTER TWO ................................................................................................................................ 6
LITERATURE REVIEW ..................................................................................................................... 6
2.1 Introduction .............................................................................................................................. 6
2.2 Definitions of Packaging .......................................................................................................... 6
2.3 Benefits/importance of packaging ........................................................................................... 7
2.4 Packaging as a marketing Tool ............................................................................................... 7
2.5 Packaging as a competitive weapon....................................................................................... 8
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2.6 Packaging Variables ................................................................................................................. 8
2.7 Visual elements ........................................................................................................................ 8
2.8 Packaging size and shape ......................................................................................................... 9
2.9 Informational elements ........................................................................................................... 9
2.10 Product technology................................................................................................................. 10
2.11 Definition of consumption ..................................................................................................... 10
2.12 Determinants of consumption Levels .................................................................................. 11
2.12.1 Income consumption level ..................................................................................................... 11
2.12.2 Price consumption level ......................................................................................................... 11
2.12.3 Impulsive Purchase ................................................................................................................ 11
2.12 Cumulated saving ................................................................................................................... 11
2.13 Relationship between packaging and consumption level of customers .............................. 12
2.14 Research gap ........................................................................................................................... 12
2.15 Current thinking and research on packaging. ....................................................................... 12
CHAPTER THREE.......................................................................................................................... 14
METHODOLOGY ............................................................................................................................. 14
3.1 Introduction ............................................................................................................................ 14
3.2 Research design ...................................................................................................................... 14
3.3 Study population .................................................................................................................... 14
3.4 Sampling procedures and size ............................................................................................... 14
3.5 Sampling size.......................................................................................................................... 14
3.6 Data collection sources, methods and instruments .............................................................. 15
3.7 Data collection methods......................................................................................................... 16
3.7.1 Questionnaire method ............................................................................................................ 16
3.7.2 Document Reviewing ............................................................................................................. 16
3.8 Data presentation and analysis .............................................................................................. 16
3.9 Limitations of the Study ........................................................................................................ 16
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CHAPTER FOUR ............................................................................................................................ 17
PRESENTATION AND INTERPRETATION OF RESEARCH FINDINGS .............................. 17
4.0 Introduction ............................................................................................................................ 17
4.1 Socio-Economic Aspects ....................................................................................................... 17
4.1 Gender ..................................................................................................................................... 17
4.1.2 Marital Status.......................................................................................................................... 18
4.1.3 Level of Education ................................................................................................................. 18
4.1.4 Age .......................................................................................................................................... 19
4.1.5 Position Held in the Organization ......................................................................................... 20
4.2 The Impact of Package Graphics on Consumption .............................................................. 21
4.2.1 More appealing graphics ........................................................................................................ 21
4.2.2 Packaging color as a pull for Consumers ............................................................................. 22
4.2.3 The Impact of pictures on the Package ................................................................................. 22
4.3 The Influence of Shape/ Size on the Consumption of a Product ........................................ 23
4.3.1 Convenient Packages and Consumption ............................................................................... 23
4.3.2 Big Packages and Consumption ............................................................................................ 24
4.3.3 The Shape of the Package on Product Consumption ........................................................... 24
4.4 Product Information on the Packages ................................................................................... 25
4.4.1 Persuasive Information on the Package ................................................................................ 25
4.4.2 Consumers Read the Packages for Relevant information about the product ..................... 26
4.4.3 The clearness of the Information ........................................................................................... 26
4.5 Technology and Consumption ............................................................................................... 27
4.5.1 Packages that prolong life and consumption ........................................................................ 27
4.5.2 User Friendliness .................................................................................................................... 27
4.5.3 Concern over the Material used for manning the Package .................................................. 28
4.6 Relationship Between Packaging and Consumption Levels ............................................... 28
CHAPTER FIVE .............................................................................................................................. 30
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ................................................... 30
5.0 Introduction ............................................................................................................................ 30
5.1 Summary ................................................................................................................................. 30
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5.2 Conclusions ............................................................................................................................ 31
5.2.1 Impact of graphics on consumption ...................................................................................... 31
5.2.2 Shape and Size ........................................................................................................................ 31
5.2.3 The Literature on the package ............................................................................................... 31
5.2.4 The technology used in producing the package. .................................................................. 31
5.2.5 Relationship between Packaging and Consumption levels ................................................. 31
5.3 Recommendations .................................................................................................................. 32
5.3.1 To the business people ........................................................................................................... 32
5.3.2 To the Consumers .................................................................................................................. 32
5.3.3 To other researchers and academicians................................................................................. 32
REFERENCES ................................................................................................................................... 33
APPENDIX A: Questionnaire............................................................................................................ 35
Appendix B: Authorization Letter/introduction: .............................................................................. 33
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LIST OF TABLES
Table 1: Sample Selection ......................................................................................................... 15
Table 2: Gender Representation among Respondents ................................................................ 17
Table 3: The Marital Status of Respondents .............................................................................. 18
Table 4: The level of Education of the Respondents .................................................................. 18
Table 5: The Age Ranges of Respondents ................................................................................. 19
Table 6: Table Showing Positions of Respondents..................................................................... 20
Table 7: Opinions on Package Graphics as a determinant of Choice .......................................... 21
Table 8: Table showing the cumulative scores on the impact of shape/size on the consumption of
commodities. ............................................................................................................................. 23
Table 9: The Influence of Product Information on Consumption on the Package in Fostering
Consumption ............................................................................................................................. 25
Table 10: Table Showing Opinions on the Influence of Technology in the Consumption of a
commodity ................................................................................................................................ 27
x
LIST OF FIGURES
Figure 1: Conceptual Framework ………………………………………………… 5
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ABSTRACT
This research was carried out in Fresh Dairy Uganda with a purpose of finding out the effects of
packaging on consumption levels of customers of milk products from this organization.
Packaging is one of the exercises established to assist in protection and attraction purposes of the
organization. A number of organizations today have adopted packaging exercise with reasons
well known to them and that is why the researcher came out with the statement of the problem
being “to find out if packaging directly affects the consumption levels of customers”.
The researcher used different methods of data collection and this was questionnaire for collecting
primary data and library reading method for secondary data. In data presentation and analysis,
the researcher employed tables to summarize the findings and the results were organized under
the headings of the main questions which were used by the researcher in the process of obtaining
data and percentages were used to show the effects of packaging.
Findings indicate that there is a strong positive relationship between packaging and consumption
at r = 0.957. This implies that packaging affects consumption by 95.7% and 4.3% by other
factors.
It is therefore recommended that; Fresh Dairy Corporation should put much emphasis on
designing the product package if consumption levels are to be boosted. The company should
always ensure that the product is of good quality as depicted by the pack, the product should be
worth the customers‟ expectations. Consumers should always not be taken by the attractiveness
of the package as some products are of a poor quality and thus exploit consumers.
1
CHAPTER ONE
INTRODUCTION
This chapter looks at the background of the study, the purpose of the study, the objectives, the
scope of the study, significance of the study and the conceptual framework.
1.1 Background of the study
In recent years packaging has developed well beyond its original function as merely a means of
product protection and now plays a key marketing role in developing on shelf appeal, providing
product information and establishing brand awareness.
Packaging includes all activities that are related to designing and producing the container or
wrapper for a product. Packaging as we know it today is as a result of a long development
process Berman et al, (1980). Since the evolution of the earth people sought to conserve surplus
food collected during hunting, food gathering for longest possible time in woven baskets, animal
skins, papers etc, and packaging technology has gone through a fast significant development in
recent decades (Stewart, 1985).
As asserted by Walker et al (1985), most companies that have grown successfully have taken
packaging seriously. For example Sydney of Berlin, the Marian packaging companies in
Pennsylvania, boosted sales of it‟s brand potato chips by 20% simply by adding an attention to
the package thus increasing on their output, Walker et al (1985).
However, in reference to the Uganda investment authority (1998), in Uganda, the packaging
sector is one of the priority sectors highlighted under the investment code of 1991.
Consumption is defined as a process in which goods and services are purchased and used to
satisfy people‟s needs. It is derived when consumer‟s expectation from consumption or use of a
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product mixed with the product‟s performance and thus interest of the producer is sought to be
achieved. Smith (1986).
Packaging is carried out to increase consumption levels for example in Kampala the dairy
corporation monopolized it‟s formal markets through standardizing their packages, pasteurizing
their milk and other dairy products for a longer period of time thus leading to substantial growth
and increased levels of consumption Manzi (1996). However, the continuous quest by mankind
to find new methods of packaging and conserving food to increase on the consumption levels of
customers there are still low levels of consumption, Runyan (1982). So it‟s upon this background
that the researcher tends to find out the effects of packaging on the consumption levels of
customers.
Fresh dairy Uganda is a corporation that was initiated in around 1990‟s with aims of preserving
milk and adding value to it so that to secure foreign markets.
Its beginning was a humble one, but today it has established branches in different districts in
Uganda so as to serve its customers better. The corporation deals in a range of products which it
packages so well, like the low fat UHT milk available in 500ml,tetra fine UHT natural milk
pillow perk(1/2 liter) packet with long shelf life among others and are developed to meet
consumers nutritional needs.
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1.2 Problem statement
Most companies that have grown successfully have taken packaging seriously for example
Sydney of Berlin, the Marian packaging company in Pennsylvania boosted sales of it‟s brand
potato chips by 20% simply by adding an attention to a package thus increasing the output
Walker et al (1985).
Despite the continuous quest by mankind to find new methods of packaging and conserving food
to increase on the consumption levels of customers, there are still low levels of consumption
Runyan (1982).So it‟s upon this situation that the researcher wants to find out if packaging
directly affects the consumption levels of customers.
1.3 Purpose of the study
The purpose of the study was to investigate the effects of packaging on consumption levels of
customers.
1.4 Objectives of the study
To establish the determinants of good packaging systems in fresh Dairy Corporation
Uganda limited.
To examine packaging elements that influence purchasing decisions/consumption.
To examine the relationship between packaging and consumption.
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1.5 Research questions
What are the determinants of good packaging systems in fresh dairy corporation Uganda
limited?
What are the packaging elements that influence purchasing decisions/consumption?
What is the relationship between packaging and consumption?
1.6 Scope of the study
1.6.1 Subject scope
This study examined the effects of packaging on consumption levels of customers, established
the relationship between the study variables and suggested ways on how to improve on
packaging.
1.6.2 Geographical scope
The study was carried out in fresh dairy Uganda, plot 49-53/55 fifth street industrial area
Kampala. Fresh dairy Uganda is a privately owned company which deals in milk products.
1.6.3 Time scope
The study covered a period of three months from February-April 2011.This period was selected
because fresh diary was experiencing a steady progress in its operations of milk processing.
1.7 Significance of the study
The findings of the study will evoke product manufacturers to further realize the effect
packaging has on the sales levels of their products and hence work towards better packaging.
The study will enable the future researchers to follow trends that have fostered quite a lot of
product and packaging innovation.
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It is significant as it will be used as a point of reference by researchers as they confront different
problems in their research process.
Fig 1: CONCEPTUAL FRAME WORK
INDEPENDENT VARIABLE DEPENDENT VARIABLE
Packaging elements
Visual elements
Informational elements
In general, visual elements of the package influence choice of the product to a great extent, and
graphics and color are frequently the major influence. Attractive packaging generates consumer
attention by breaking through the competitive clutter. Picture vividness has the most positive
impact for products with lower levels of involvement.
However, informational elements are becoming increasingly important and influence choice.
Consequently customers are prompted to make frequent purchases for products with attractive,
and durable packages which are sometimes re-used. Attractive packages also cause customers to
make reckless (impulsive) purchases even when they initially had no plan to.
Graphics
Size/shape
Product information
Technology
Consumption levels
- Increase in product purchase
- Frequency of purchase
- Impulse purchases
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter reviewed relevant literature related to the study variables. The study concentrated
on the packaging and the level of consumption of customers. It brought out the review and the
analysis of major issues of existing selected literature as explored and studied by various scholars
and researchers.
2.2 Definitions of Packaging
The definitions of „packaging‟ vary and range from being simple and functionally focused to
more extensive, holistic interpretations.
Packaging can be defined quite simply as an extrinsic element of the product (Olson and Jacoby
(1972) - an attribute that is related to the product but does not form part of the physical product
itself. “Packaging is the container for a product – encompassing the physical appearance of the
container and including the design, color, shape, labeling and materials used” (Arens,1996).
According to Kotler (1995), that is from consumers perspective, packaging involves designing
and producing the container or wrapper for a product.
Baker, (1979) in agreement with Kotler (1995), further argues that packaging is defined in the
regulations as all products made of any materials of any nature to be used for containment,
protection/delivery and preservation of goods from the producer to the consumer. The main
packaging materials could be paper, plastic, glass, steel, aluminum and others depending on the
nature of products.
Evans, et al (1990), defines packaging as attaching a container used to protect, promote, transport
and identify the product, Evans et al further states that packaging is that part of the product
planning process in which a company researchers design and produces its package.
Pride et al (1985) ,in line with Evans et al (1990), says that packaging involves the development
of a container and a graphic design of a product. A packet makes a product more versatile, safer
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or easy to use. It can also influence a customer‟s attitude towards the product thus affecting the
purchase decision.
Most marketing texts books consider packaging to be an integral part of the “product”
component of the 4 P‟s of marketing: price, place and promotion (Cateora and Graham, 2002,
pg. 358-360).
2.3 Benefits/importance of packaging
In reference to Kotler (1995), packaging is an important aspect that organizations need to pay
much interest upon.
Also assembling multiple products or services to sale in a packaging not only increases
consumption levels but also;
1. Gives you the ability to sale slowly moving merchandise.
2. It lowers your marketing costs because it allows you to move multiple types of products
or services through one advertisement.
3. It promotes a higher perceived value to your customers.
2.4 Packaging as a marketing Tool
Never underestimate the importance of packaging marketers often measure consumer brand
perception and ignore the pack. Yet, we know from way that consumer react to un branded
products that packaging helps to drive the way consumers experience a product. Yet we spend
little time researching the connections between packaging and direct experience of the product (
Rice and Hofmeyr 2000, commitment-led marketing, pg. 216)
As the only part of communication that the consumer takes home, packaging plays a key role in
communicating brand values over the time. Packaging has the power to make, but also to break
brand relationships.
Prendergast and Pitt (1996), says that the logistical function of packaging is mainly to protect the
products during movement through distribution channels.
Further still Prendergast and Pitt (1996), says that the marketing function of packaging is to
provide an attractive method to convey messages about product attributes to consumers at the
point of sale. Packaging actually acts as a silent seller.
8
Berkowitz et al (1989), similarly states that firms recognize the power of a well designed
package, contributing to instant recognition of a company to its brand hence making it an
element of product strategy.
2.5 Packaging as a competitive weapon
Competition has become an issue of concern to many firms in the world today. Proper packaging
strategy can be the best tool to fight this competition (pride et al 1998)
Jauch et al (1988), states that many marketers therefore use similar packs, shape, size, colour so
as to capture many consumers for their product. Packaging as a competitive weapon of any firm
helps to expand the pace of market penetration.
O‟shaughnessy (1995) stated that packaging constitutes a competitive advantage in offering
information, convenience, protection, promotion, image and visibility. Attractive target
packaging may play the key role in the success of new brands of undifferentiated consumer
products content and provision of information.
However, Kotler (1995), further argues that a package should therefore reflect what it‟s content
is otherwise it may mistake consumers. The description of the pack should be in line with the
product purchased. A company should take care about the outer description of this product.
2.6 Packaging Variables
Packaging elements
They include both visual and informational elements and they go further to include; Graphics
and colour size/ shape and product information, technology respectively.
2.7 Visual elements
Graphics and color
Graphics include , colour combination and product photograph and others all of which create an
image for low involvement, that is consumers do not ask a lot of questions when they are going
purchase a product, there is a strong impact for marketing communications, including image
building, on consumer decision making. Evaluation of attributes is of less importance in low
involvement decisions, so graphics and colour become critical (Grossman and wisenblit,1999).
9
For many consumers in low involvement, the package is the product, particularly because
impressions formed during initial contact can have lasting impacts. As the product attribute
which most directly communicates to the target customers (Nancarrow et al, 1998) The designed
characteristics of the package need to stand out in a display of many other offerings.
2.8 Packaging size and shape
Packaging size and shape also affects consumer judgment and decisions, but not always in
easily uncovered ways. Consumers appear to use these things as simplifying visual heuritics to
make volume judgments. Generally they perceive more elongated packages to be larger, even
they frequently purchase these packages and can experience true volume. This implies that
disconfirmation of package size after consumption may not lead consumers to revise their
volume judgment in the long term, especially if the discrepancy is not very large (Raghubir and
Krishna, 1999). Different sizes also appeal to consumers with somewhat different involvement
for example low price for some low involvement products such as generics, is made possible
through cost savings created by reduced packaging and promotional expenses. Generics are
usually packaged in large sizes, which communicates to the consumer who are specifically
looking for good deals. Such consumers find the low price of the generics, in the right size of
packaging, offers excellent value for money (Prendergast and Marr, 1997). In addition, this could
imply that when product quality is hard to determine as with generics, the size effect is stronger.
2.9 Informational elements
Product information
The behavior of consumers towards products characterized by high involvement is less
influenced by image issues and visual response (Kupiec and Revell,2001); in such cases
consumers need more information. Written information on the package can assist consumers in
making their decisions carefully as they consider product characteristics.
However, packaging information can create confusion by conveying either too much information
or misleading and inaccurate information manufacturers often use very small facts and very
dense writing styles to pack extensive information onto their label which lead to poor readability
and sometimes confusion.
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Mitchell and papavassiliou (1999), suggest that one way consumers reduce confusion from
information over load is to narrow down their choice sets.
2.10 Product technology
Technology developed for packaging comes directly from the current trends in products and
consumer behaviors. Powerful retailers also seek greater responsiveness and flexibility from
manufacturers, including packaging, to satisfy consumers who are more demanding and
sophisticated (Adebanjo, 2000)
Customers are often prepared to pay slightly more for enhanced product value indicating desire
for more quality.
However, product and purchasing development also constrained increasing products that fully
meet the consumer and channel criteria, such constraints might be categorized as ingredient,
processing and cost restraints.
Innovation must respond and develop new products that are more efficiently produced,
purchased from a longer shelf life, environmentally friendly, nutritionally friendly to each of the
emerging segments of society, and meet maximum food safety requirements (Mcllveen, 1994).
Technology embodied in the package plays a big role in this, making it some what of a special
form of informational elements. In addition to its technical role, packaging technology also
conveys information which is often linked to the consumers‟ life style. Therefore in order to
survive in high growth competitive markets, technology becomes very vital for developing
packaging materials and processes.
2.11 Definition of consumption
According to smith (1986), defines consumption as a process in which goods and services are
purchased and used to satisfy people‟s needs. It is derived when consumers expectations from
consumption or use of a product mixed with the products performance thus interest of the
producer is sought to be achieved.
Huffman et al (1980), further urges that consumption is defined as the purchase of currently
produced goods and services out of income, out of saving or from borrowed funds to meet
satisfaction.
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2.12 Determinants of consumption Levels
2.12.1 Income consumption level
In reference to Keyness et al (1994), states that different consumers have different levels of
consumption. He further says that consumers will determine the consumption of the product thus
influencing the purchasing decision.
2.12.2 Price consumption level
Kanuk et al (1990), further argues that consumers are highly involved in the purchasing of
products with low prices ,he further states that consumption level of the consumer will depend on
the price hence the lower the price the higher the consumption level of a consumer.
Kanuk et al (1990), in line with Hide, et al (1986), points out that consumers consumption will
depend on the price of a given product. He further states that the higher the price, the lower the
consumption level.
2.12.3 Impulsive Purchase
An impulse purchase or impulse buy is an unplanned decision to buy a product or service, made
just before a purchase (Underwood, R.L. 1996). One who tends to make such purchases is
referred to as an impulse purchaser or impulse buyer. Research findings suggest that emotions
and feelings play a decisive role in purchasing, triggered by seeing the product or upon exposure
to a well crafted promotional message.
2.12 Cumulated saving
In the past can be squeezed in case of necessity and give rise to a jump or rise in consumption
similarly with what happens with wealth increase, due for instance to stock exchange boom or
house price boom. Family debts can mount to find consumption while payments break its
dynamics.
Expectation on future income, especially concerning short term credible events may also play an
important role.
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2.13 Relationship between packaging and consumption level of customers
Kotler (1996), states that most industries may use successful packaging to boost sales through
launching new brands, building customer loyalty brand line extending and brand repositioning. A
company will create a new product category but seeks to differentiate its new products for
reasons such as difference in quality levels.
Power (1991), states that marketers will consider repositioning their brands so as to safe guard
against a shift in consumer wants and competition. Repositioning requires changing in products‟
image and the product it‟s self. It should however be skillfully done to avoid confusing or losing
correct loyal users. For repositioning to be successful the marketers have to ensure that the brand
is new, position is compatible with it‟s old one so as to keep loyal customers while attracting
new users.
Kotler (1996), further urges that successful brand name is used to introduce addition items of a
given product such as flavours, colour, packages, sizes and ingredients to meet and attract
different consumers thus affecting the purchasing decision, leading to increase in consumption
levels.
2.14 Research gap
Given the dynamic world of consumer oriented products further research should be conducted in
the following areas.
Effects of packaging on sales volume
Effects of other marketing mix elements on consumption level.
2.15 Current thinking and research on packaging.
Despite the importance of packaging, there is limited marketing research currently available to
the public in the field of packaging research. Most text books literature agree that packaging
plays a vital role in marketing, but there is little empirical research available in investigating its
impact on the marketing function and how best to leverage packaging in a marketing context
(Rundh, 2005 Rundh, 2005 pg.670, Sinclair and Knowles,2006 and Rettie, Brewer, 2000).
Looking at what is available (which is by no means extensive) they are some consistent terms of
current thinking with regard to packaging.
13
Conclusion
Packaging is indeed an important communication and competitive tool, marketers must therefore
be extra careful when coming up with a package for their product.
Surprisingly, there are some products whose consumption levels may not be improved due to
their package. However, innovative packaging can give a company an advantage over the
competitors. In contrast poorly designed packages can cause negative attitude to consumers and
less sales to the company.
As packaging designs improve, it will be hard to any one product to dominate without the basis
of packaging.
14
CHAPTER THREE
METHODOLOGY
3.1 Introduction
This chapter looked at the research design, type of data, sources of data, data collection methods,
data processing and analysis of the study
3.2 Research design
The study employed both explanatory and analytical methods in collecting data that is to resolve
the study objectives as outlined in chapter one. The use of the above approach is because it was
suitable and appropriate to describe and analyze the relationship between the study variables.
3.3 Study population
The study population comprised of employees in the departments of Accounts and Finance,
Administration and other randomly sampled personnel of fresh dairy Uganda, as well as the
consumers of fresh dairy products. The researcher drew 30 respondents out of the total
population of both employees and customers of Fresh Dairy Corporation.
3.4 Sampling procedures and size
The researcher selected a representative population from which the data was to be collected,
stratified methods were adopted to create different stratum/ classes among the study population
and from each stratum, a representative sample was picked using random sampling.
3.5 Sampling size
The researcher purposively selected 20 key respondents to represent Fresh Dairy Corporation
employees. The samples were drawn from different departments that is; 5 from finance and
accounts section, 5 from administration and 10 from other departments. The researcher also
randomly sampled 10 consumers of fresh dairy products to represent the users of the products.
Key respondents were considered because they were highly knowledgeable about the problem
under study. The total sample size of the study was therefore, 30 respondents.
15
Table 1: Sample Selection
Stratum Proportion of respondents Percentage
Finance and Accounts 5 17
Administration 5 17
Other 10 33
Consumers 10 33
Total 30 100
Source: Primary data
As indicated in the table above, 17% of the respondents were selected from Finance and
Accounts Department and Administration respectively, 33% of the respondents came from other
departments Fresh Dairy Uganda. The consumers of Fresh Dairy products accounted for 33%.
The researcher chose the above respondents because they had vast knowledge on the problem
under investigation.
3.6 Data collection sources, methods and instruments
Collection sources
The researcher collected data from both primary and secondary sources. The primary sources
provided first hand data direct from respondents. The secondary sources were basically
documentary in nature that is Makerere University Library, British Council Library and Rubaga
social centre library besides surfing the net for websites such as emerald and Google.
Primary data: Was collected using self administered questionnaires to get respondents‟ opinion,
attitudes and belief on the topic under study.
Secondary data: This is the data that was sought from the already researched data financial and
performance data of fresh dairy Uganda for the previous period that was supplementary to
primary data. It included articles, internet, brochures and reports of an organization as well as
text books.
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3.7 Data collection methods
3.7.1 Questionnaire method
Questionnaires with both structured and unstructured questions were availed to the respondents
who filled them and were collected afterwards. This method was advantageous because
respondents had to fill questionnaires at their convenient time.
3.7.2 Document Reviewing
The researcher also read organization‟s manuals, reports and other publications in order to get
statistics and data about the problem. Such data was to be used in comparison with the primary
source data from respondents and conclusions were drawn.
3.8 Data presentation and analysis
The researcher was very careful in identifying the relevant data. The data was analyzed by the
researcher through editing, coding and tabulating. This helped the researcher to use frequencies
and percentages as units of measurement during the analysis of the findings. The findings were
then presented by the aid of tables.
3.9 Limitations of the Study
The researcher faced a number of challenges;
1) It was not easy to access secondary data especially text books which explicitly talk about
the variables under study.
2) Besides, the time in which the study was to be completed was insufficient to cater for a
study of this magnitude.
3) Financial constraints, the researcher incurred a lot of costs that is; traveling to the area of
study (Fresh Dairy) and then school. This drained the researcher‟s finances.
The researcher minimized the above problems through the following procedures;
1) Access to data was solved by visiting a number of libraries besides surfing the net.
2) The researcher ensured that this piece of work was given sufficient time and maximum
concentration.
17
CHAPTER FOUR
PRESENTATION AND INTERPRETATION OF RESEARCH FINDINGS
4.0 Introduction
In this chapter are the research findings as established for the field and analyzed by the
researcher. The findings here in are organized and interpreted according to the research questions
that were used.
4.1 Socio-Economic Aspects
4.1 Gender
Table 2: Gender Representation among Respondents
Gender Frequency Percentage
Male 15 50
Female 15 50
Total 30 100
Source: Primary Data
The study had more male respondents accounting for 50% of the total sampled respondents. The
females composed 50%.
18
4.1.2 Marital Status
Table 3: The Marital Status of Respondents
Marital Status Frequency Percentage
Married 14 47
Single 16 53
Total 30 100
Source: Primary Data
Majority of the respondents (53%) reported to be single. Twenty two (16) out of the 30
respondents indicated that they were not married while only 14 out of the 30 forming 47% of the
respondents were recorded to be married.
4.1.3 Level of Education
Table 4: The level of Education of the Respondents
Education level Frequency Percentage
University graduate 20 67
Diploma holder 8 27
A‟ level 1 3
O‟ level 1 3
Total 30 100
Source: Primary Data
Most of the respondents were degree holders (67%) while Diploma holders followed at 27%.
Only 1% of the respondents had reached O‟ and A‟ Level respectively. Therefore, the
respondents were literate and could interpret well the questionnaires.
19
4.1.4 Age
Table 5: The Age Ranges of Respondents
Age bracket Frequency Percentage
21-30 21 70
31-40 6 20
40+ 3 10
Total 30 100
Source: Primary Data
The above table shows that most of the respondents sampled were between the ages of 21-30
years and these formed 70% of the respondents. 31-40 year age bracket scored second highest at
20% while the 41 plus years were the least forming only 10% of the sample studied. The findings
revealed that most of the respondents were young people because its this age bracket that do
consume Fresh Dairy products most unlike their counterparts of 40 years and above.
Furthermore, the study engaged mostly junior and middle line officers of the organization who
were found to be of a younger age and the old respondents were found to occupy higher
positions in the organization.
20
4.1.5 Position Held in the Organization
Table 6: Table Showing Positions of Respondents
Position Frequency Percentage
Marketing manager 1 3
Production manager 1 3
Administrators 2 7
Sales managers 1 3
Accountants 1 3
Others 24 80
Total 30 100
Source: Primary Data
Only 1 marketing manager was involved, 1 productions manager, 2 administrators, 1 sales
manager, 1 accountant and 24 others who included the customers and other low portfolio
employees. This implies that the majority of participants were the customers and low level
employee of the organization. Since the research primarily sought to assess the impact of
packaging on consumption, the above illustrated participation was relevant to the study.
21
4.2 The Impact of Package Graphics on Consumption
Table 7: Opinions on Package Graphics as a determinant of Choice
Statement Cumulative frequencies
A SA NS D SD Total
Products with more appealing graphics
are chosen by customers
22 4 2 2 0 30
Consumers are more sensitive to
package colour due to perception
5 2 7 10 6 30
Consumers are concerned about the
pictures used on the packages
6 1 5 15 3 30
Source: Primary Data
4.2.1 More appealing graphics
As indicated in the table above (table 6), majority of the respondents (73%) agreed that products
with more appealing graphics attract consumption. Only 4 out of the 30 sampled (13%) strongly
agreed that well done graphics attract them to buying a given product. Two of the respondents
hence 7% were not sure while an equal number disagreed saying they were not attracted to
consumer on the basis of graphics. This therefore, showed that most customers make their
decisions to purchase after looking at the product in the shelves and how attractive the package is
without leaving other factors such as price constant. On the other hand, customers who are not
bothered by the pack are those who understand the real value and worth of the product and they
would even buy it whether packed or not.
22
4.2.2 Packaging color as a pull for Consumers
Majority of the respondents disagreed that the color of the package was key to consumption. A
total of 10 tallies (33%) were scored on disagree for the color as a determinant of consumption.
Another six people making 20% of the sample strongly disregarded the impact on causing
consumption of a commodity. While 7 of the respondents (23%) were not sure whether the
package color could attract someone to buy a commodity, 5 others (17%) were in agreement that
the color of packaging had an impact on the consumption. On 2 people (7%) strongly agreed to
the statement that in real sense the color of the package prompts many people to consume a
commodity.
4.2.3 The Impact of pictures on the Package
The same was, majority of the respondents disagreed that consumers were propelled to buy
basing on the pictures drawn on the packages. Fifteen people hence 50% of the total sample did
not see the importance of pictures in positively affecting consumption. This means that the
drawings on the package were of less importance to many consumers as indicated by the number
of those who agreed. On 6 (20%) agreed while 1 person (3%) strongly agreed while the rest were
not sure.
23
4.3 The Influence of Shape/ Size on the Consumption of a Product
Table 8: Table showing the cumulative scores on the impact of shape/size on the
consumption of commodities.
Statement Cumulative frequencies
A SA NS D SD Total
Consumers will always opt for
packages that are convenient
9 18 2 1 0 30
Consumers go for bigger size
packages because they think its value
for money
3 1 3 15 8 30
Attractive package shapes are more
appealing to consumers
12 11 2 4 1 30
Source: Primary Data
4.3.1 Convenient Packages and Consumption
On convenience of the package to carry, majority of the respondents, 18 out of 30 (60%) strongly
agreed that the convenience of the packaging to carry is very vital when making choice of what
commodity to purchase especially where two almost similar commodities are available. None of
the respondents strongly disagreed, which means that the convenience of the package to carry is
a very vital aspect of packaging. Nine others (30%) agreed to the impact of the packaging on
influencing purchase and consumption of a product. The interpretation here is that, for some
products consumers are so concerned about how convenient the pack is in terms of handling the
24
product. This thus showed that product designers should take into account convenience as an
element in the designing of the product package.
4.3.2 Big Packages and Consumption
A significant number of the respondents (15 forming 50%) disagreed to the statement that the
bigger the packaging the higher the preference of consumers. This was further strongly
disregarded as a factor for influencing consumption by eight (27%) other people who strongly
disagreed that bigger package attract consumers more. Instead, the respondents argued that
quality matter more than quantity to them and many other consumers. Only 3 people (10%) were
in for big packages while other 10% were skeptical on any side.
4.3.3 The Shape of the Package on Product Consumption
Twelve responses (40%) strongly agreed and another eleven (37%) strongly agreed that
attractive shapes are more appealing to consumers than the unattractive ones. Indeed a very
insignificant number of people (only 1.3%) strongly disagreed to the influence of attractive
packages on consumption levels of a commodity.
25
4.4 Product Information on the Packages
Table 9: The Influence of Product Information on Consumption on the Package in
Fostering Consumption
Statement Cumulative frequencies
30 NS D SD Total
Persuasive information on the packages makes
consumers to buy
1
3
6 5 3 3 30
Consumers always want to read on the packages
for relevant information say expiry dates
2
6
3 1 0 0 30
Consumers are propelled by how precise and
clear the information on the packages is
8 6 6 5 5 30
Source: Primary Data
4.4.1 Persuasive Information on the Package
A significant tally of 13 responses forming 43% and almost half of the respondents agreed that
persuasive information on the package was very influential on consumption levels of a given
product. Another 6 tallies (20%) were scored strongly agreeing and confirming that persuasive
information is a big influence on consumption. Some 5 respondents (17%) could not take any
confirm whether people really consume products on the basis of the information on the [package
sighting that some people may just have developed loyalty to a given product and would
consume it no matter the words there. An equal number of 10% disagreed as well as strongly
disagreed to the statement.
26
4.4.2 Consumers Read the Packages for Relevant information about the product
It was significantly established that information on the packages is very vital for influencing the
consumption of a given product as consumers always want to read on the vital information such
as the expiry date, the composition of the product, and the maker of the product. A whooping 26
responses forming 87% of the responses were in supported of this. None of the respondents
disagreed to this meaning that the information counts a lot.
4.4.3 The clearness of the Information
Majority of the respondents agreed that it is always important for the information on the
packages to be clear and precise for easy reading and understanding for the customers to be able
to make read and make up decisions on which they base their choices. Eight people (27%)
nodded for the need to have precise information on the packages. Almost averagely, the rest of
the responses were divided up in support and not sure whether this would impact on the
consumption of the product in question.
27
4.5 Technology and Consumption
Table 10: Table Showing Opinions on the Influence of Technology in the Consumption of a
commodity
Statement Cumulative frequencies
A SA NS D SD Total
Packages that prolong the life of the product are
preferred say on food stuffs
12 10 6 2 0 30
User friendliness of the package is important for
consumers
14 14 2 0 0 30
Consumers are concerned about the materials
used to make the package
7 5 10 6 2 30
Source: Primary Data
4.5.1 Packages that prolong life and consumption
This was seen as the reason to back up for effectiveness of the package to protect the content in
there. Twelve tallies were made (40%) in support of the argument that packages that can prolong
the lifespan of the product are a basis for consumption. An almost equal score was recorded for
those who strongly agreed with 10 scores hence 30%. There was no strong disregard to the need
to have effective packages for higher consumption.
4.5.2 User Friendliness
It was largely argues that the user friendliness of the package say on how easy it is to open and
close can make the customer to purchase the product or not to purchase. Forty seven (47%) of
28
the responses agreed and as well strongly agreed that the aspect of user friendliness of the
package was very vital for influencing consumption of the product.
4.5.3 Concern over the Material used for manning the Package
Most people did not really show any bother about this as 10 tallies (33%) did not fall on any side.
An almost equal weight was otherwise poured for and against the concern on the material used to
make the package though it was echoed that some materials may be dangerous to human life and
occasionally it can be a concern to know the material used. But this was to a very less
consideration.
4.6 Relationship Between Packaging and Consumption Levels
The Pearson correlation coefficient (r) was used to establish the relationship between packaging
and consumption levels as shown in the table below;
Cor relations
1 .957**
. .000
30 30
.957** 1
.000 .
30 30
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Packaging
Consumption
Packaging Consumption
Correlation is s ignif icant at the 0.01 level (2-tailed).**.
From the table above, findings indicates that there is a strong positive relationship between
packaging and consumption at r = 0.957. This implies that packaging affects consumption by
95.7% and 4.3% by other factors.
29
Therefore, Dairy Corporation Ltd should focus more on the development of more appealing,
convenient and environmentally friendly packages in order to boost the consumption of its
products and hence realize more profits.
30
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.0 Introduction
This chapter presents the summary of the research process, gives the conclusion on key
objectives sighting key findings, as well as giving the recommendations of the research on what
was established.
5.1 Summary
The study was undertaken in order to achieve the set objectives which were; (i) To examine the
determinants of good packaging systems, (ii) To examine packaging elements that influence
purchase decisions and, (iii) To examine the relationship between packaging and consumption.
The first objective of the study was to examine the determinants of good packaging systems. The
findings revealed that good packaging systems should always put into consideration such
attributes like appealing graphics, shape as well as better technology used in the design of
product packages.
The findings further revealed that consumers‟ decisions to buy are significantly influenced by
packaging elements. Consumers are attracted to products with attractive colors, pictures as
compared to those products which are poorly packaged. Furthermore, the findings also showed
that consumers are most likely to purchase products whose packages are in better shapes and
convenient to carry. Simple, clear and sometimes persuasive information also influences
consumer‟s buying decisions.
In line with the objective of examining the relationship between packaging and consumption, the
findings revealed that consumption levels of well packaged products are more higher than those
of poorly packaged products. The study findings also concluded that indeed packaging
significantly impacts on the consumption levels of a product.
31
5.2 Conclusions
5.2.1 Impact of graphics on consumption
This study established that the graphics done on the packages specifically the color, and the
drawings are very important in influencing consumption. About 73% of purchases of a product
were discovered to be based on how the packaging is designed and the colours as well as
printings it dons. However, the drawings were seen not to be of very much influence like the
graphics themselves, yet also the colour was of no so great impression to some people.
5.2.2 Shape and Size
Shape and size were largely found to be very influential in influencing purchases and thus
consumption. Packages that are made of attractive packages and convenient to carry were said to
attract more customers than the very big ones with bad shapes. A significant percentage of 87%
were in agreement that indeed small but well shaped packages attracted them more to buy a
product than the big ones which are poorly shaped and not convenient to carry.
5.2.3 The Literature on the package
A good number of customers were found to attach high value to the literature that is printed on
the packages. Among the most important aspects of such literature that they look out for was said
to include the manufacturing and expiry dates; the composition of the content in terms of the
ingredients.
5.2.4 The technology used in producing the package.
Technology used was not as regarded as something important and was of no big influence on the
consumption effect on customers.
5.2.5 Relationship between Packaging and Consumption levels
The research found out that packaging greatly influence consumption of products. Customers
were said to be attracted to purchase a product if its packaging is very attractive, convenient to
carry, user friendly say to open and close, among other regards. Thus, the relationship was
passed as a largely positive one.
32
5.3 Recommendations
5.3.1 To the business people
This research basing on what the study found out recommends that companies and business
people should regard the packaging aspect as an important element of business success as it can
influence the consumption of their products and this raise profitability.
5.3.2 To the Consumers
On the basis of the research establishments, it was observed that sometimes packaging does not
necessarily reflect the quality of the content. Therefore, this study recommends that consumers
need to regard all about the packaging but as well be keen on the content and its quality.
5.3.3 To other researchers and academicians
For further research, this research recommends that research should be carried out on the
packaging aspect in the service industry as it is still virgin. There is need to explore what
composes packaging for the service industry and how it is done.
33
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35
APPENDIX A
Questionnaire
To be filled by the customers and staff of fresh diary corporation Uganda
limited. This study is about the effect of packaging on consumption levels. That
is how directly or indirectly packaging influences consumption levels. It is a
partial requisite for the award of a degree of bachelor of commerce of Makerere
University. Responses are for academic purposes and are to be treated with a
high degree of confidentiality
(GENERAL INFORMATION)
FILL AS APPROPRIATE
Tick the box most appropriate
GENDER: a) Male
b) Female
MARITAL STATUS: a) Married
b) Single
LEVEL OF EDUCATION: (a) University Graduate
b) Diploma holder
c) ‘A’ level
d) ‘O’ Level
e) Any other specify ……………………………….
AGE BRACKET: a) Between 21 and 30
b) Between 31 and 40
c) Between 41 and above
36
POSITION HELD IN THE ORGANISATION
Marketing manager
Production manager
Administrators
Sales managers
Accountants
General Manager
Other (specific)……………………………………….
Duration of service
Less than a year 1-4 5-6 7 and above
(MAIN RESEARCH STUDY INFORMATION)
For each of the following, tick where applicable the extent to which you
agree using the following scales
A = Agree
SA = Strongly Agree
NS = Not sure
D = Disagree
SD = Strongly Disagree
37
B) PACKAGING ELEMENTS
Please choose only one option that suits your
level of agreement or disagreement for each of
the following statements
A SA NS D SD
Graphics
Products with more appealing graphics are
more likely to be chosen.
Consumers are more senstive to package colour
due to the different perceptions they have on
colours.
Consumers are concerned about the pictures
used on the package when purchasing
Shape / Size
Consumers will always opt for packages which
are convenient to carry over those which are
not
Consumers go for bigger size packages because
they think its value for their money.
Attractive package shapes are more appealing
to consumers.
Product Information
Consumers buy the product because of the
persuasive information on the package.
Consumers always want to read such details on
product usage, expiry date and the content of
the product before buying the product.
Consumers’ decisions are always influenced on
how clear and precise the information is labeled
on the pack.
38
Technology
For food stuffs, consumers are sensitive to
packages which tend to prolong the life of the
product.
Consumers are also concerned about how easy
it is to open a pack without harm or even
pouring the product.
The consumers are concerned about the
materials used to make the package.
C) CONSUMPTION LEVELS
Increase in product purchase A SA NS D SD
Well packaged products always lead consumers
to purchase more and more of the products.
Packaged products tend to stand out in the
shelves and consumers tend to easily identify
them leading to more purhases.
Frequency of purchase
Consumers will frequently purchase those
products with good packaging.
Impulse purchase
Well packaged products lead to high impulsive
(reckless) purchases by consumers.
consumers are sometimes provoked to
purchase a product whose package is attractive
to their eyes even when they did not have idea
to buy.
39
D) RELATIONSHIP BETWEEN PACKAGING AND CONSUMPTION
A SA NS D SD
Packaging has a strong impact on the
consumption levels in your organization.
In its plan to increase on the consumption
levels, the organization gives top priority to the
packaging of its products.
The current trend of consumption levels of the
organization’s products is majorly attributed on
how they are packaged.
The packaging techniques that you employ
have been successful in relation to
consumption levels of customers
Thank you for your precious time, all the information provided will be
kept with utmost confidentiality.
