LABAS SENIOR HIGH SCHOOL-STAND ALONE

ACCOUNTANCY BUSINESS AND MANAGEMENT

LABAS SENIOR HIGH SCHOOL-STAND ALONE
ACCOUNTANCY BUSINESS AND MANAGEMENT
 LABAS SENIOR HIGH SCHOOL-STAND ALONE
ACCOUNTANCY BUSINESS AND MANAGEMENT

CHAPTER 1

THE PROBLEM AND IT'S BACKGROUND

A. INTRODUCTION

Product packaging design is the most noticeable advertising

strategy that generally requires consumer into purchasing the

product. Across a wide variety of products, consumer buying

behavior varies. This behavior of consumer may condition in part

of their demographic profile such as age, gender and status.

Correspondingly, packaging design being an inherent part of

products may be generally considered as a primary factor that

influences consumer buying behavior towards household products.

Packaging design refers to the creation of the exterior of a

product that includes choices in material and form as well as

graphics, colors, and fonts that are used on wrapping. Like any

good design, packaging has sensual experience literally engaging

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ACCOUNTANCY BUSINESS AND MANAGEMENT

us through sight, touch, and sound. All these details help us

understand what the enclosed product is for? how it should be

used? who should use it? and maybe most importantly if we

should buy a product or not.

Best (2002), Attractive packaging calls for repeated

patronage from consumers, which enable the business to

generate profit, it creates value by helping consumer behavior

process. Ulrich, Campana & Malkewitz (2010), Product packaging

in an essential marketing mix that projects brand image, which is

designed to convey image of high quality. It is the final stage of

production and place of vital role in production activities. Scot

(2008), attractive packaging can also induce impulse purchasing

and states that it can attract consumers to try product at first

sight.

The importance of packaging design as a way of communication and branding is

growing into competitive markets for packaged food products. Visual packaging

design elements lay a major role representing the product for consumers. Elements

can contribute to the brand in a way that is proven to boost sales. It has expert

knowledge of package design from beginning to end: Defining your target market,

completing market research, focus groups, naming, developing structural solutions,

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ACCOUNTANCY BUSINESS AND MANAGEMENT

design, production and printing. The role of packaging has evolved from the

traditional function of protecting the product against dirt, damage, theft,

mishandling, and deterioration. It also utilized as a marketing tool to promote the

products to increase the visibility of it and provide information to the consumer.

In this context, the researchers are seeking to maximize the effectiveness of

packaging in buying places and its effects to the consumer buying behavior. In this

study, important factor related to packaging such as product contents, nutrition

facts, expiration date and functional requirement, size, attention drawing power,

quality impression and brand name readability are justified to calculate the

relationship between consumer buying behavior and elements of packaging design.

B. BACKGROUND OF THE STUDY

The researchers were motivated into probing the dynamics of consumer

behavior of the residents of Sta. Rosa, Laguna since it is the city where there are

numerous manufacturers and dealers as well as retailers. Therefore, they found it

appropriate to investigate the perception of the consumers. This statement can be

validated with the consuming public of the city of Santa Rosa. Moreover, the

researchers were also interested in exploring various aspect or elements that

influences the consumers of the city of Sta. Rosa in establishing brand loyalty if

there are any other aspect that are primarily influenced by the socio-economic

condition. As the researchers observed the public in the city of Sta. Rosa, they also
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ACCOUNTANCY BUSINESS AND MANAGEMENT

found out if indeed product packaging has any impact in consumer’s decision in the

city of Santa Rosa.

The packaging industry is an ancient industry that has been around since the

early days of man. Packaging in some form or another has always been around to

assist people in the transporting, storing and protecting a variety of items. In 1823,

Englishman Peter Durand obtained the patent for the first metal packaging made

from sheet metal. Paper and cardboard have become important packaging materials

in 1990’s. with the invention of plastics, it started replacing paper as a packaging

material. General use of plastics in packaging applications has started after World

War II. In the beginning, it replaced the wax paper used in bread packaging. The

growth in plastic packaging has sped up since 1970’s. With today’s technology and

conditions, these previous materials have been replaced by more suitable and

economic materials such as glass, metal, plastics, paper and cardboard. Meanwhile

packaging, as we know today, is the result of a long development process. The very

first people roam the earth, back in depths of pre-history, sought to conserve the sur

plus food collected during hunting, fishing and food gathering for the longest

possible time, to be prepared for any future food shortages. In the middle ages,

wooden bottles became the most frequently used way of preserving goods. They

were used for storing all kinds of solids and liquids, protecting them from light,

heat and dampness.

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ACCOUNTANCY BUSINESS AND MANAGEMENT

Today, good packaging design is regarded as an essential part of a successful

business practices, since many potential customers first notice a new product after it
has arrived on the shelves of a store. It is vital that packaging provide consumers
with the information they need and motivate them to make a purchase. But
packaging decisions involve several trade-offs. While making a product visible and
distinctive maybe the top of priority, for example business must also comply with a
variety of lost regarding product labelling and safety.

C. SIGNIFICANCE OF THE STUDY

The findings from the study will benefit the ABM Students, Manufacturers, Household
Shoppers, and Future Researchers to better understand the effect of packaging design on
consumer buying behavior.

For the ABM Students

This study may serve as a guide for the ABM students undertaking similar studies.

For the Manufacturers

The manufacturers will be able to gain insights on how consumer give attention on
packaging design and to improve their packaging design.

For the Household Shoppers

This study can make the household shoppers patronize more the product because
of the packaging design used.

For the Future Researchers

This study will be an effective tool and reference for the future researchers that will
do the same study.

Overall, this research study will aid LSHS Santa Rosa itself: the ABM students,
manufacturers, household shoppers, and future researchers in giving a standard and
coincided way of making their work accessible.

D. STATEMENT OF THE PROBLEM

1. What is the demographic profile of the repondents in terms of?

1.1 Age

1.2 Gender
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ACCOUNTANCY BUSINESS AND MANAGEMENT

1.3 Civil Status

2. How effective are the packaging design on the consumer buying behavior of selected household
shoppers?

3. To what extent do the elements of packaging influence the consumer buying behavior in terms of?

3.1 Product Labelling

3.2 Product Design

4. Is there a significant relationship between effectiveness of packaging design to the demographic

profile of the respondents?

E. HYPOTHESIS

The packaging design is not effective on the consumer buying behavior of selected
household shoppers in the city of santa rosa laguna.
F. THEORETICAL FRAMEWORK

G. CONCEPTUAL FRAMEWORK

The conceptual framework discusses the flow of study to be taken. The study used the
system approach. The system of the three frames is composed of input, which goes to the
process and come out as the output.
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ACCOUNTANCY BUSINESS AND MANAGEMENT

H. DEFINITION OF TERMS

The following terms are used in the study as define of the authorative sources
for the convenience of the readers to easily understand the study.

Action- refers to leading the customers towards taking action/purchasing.

Advertising strategy-refers to the plan to reach and persuade a customer to

buy a product or a service.

Brand name readability-refers to the brand name on a package should be

easily readable. An easily readable brand name tends to reinforce the sale
message.

Consumer-refers to a purchaser of a good or service in retailer; an end user.

Consumer buying decision-refers to the consumer that has now settled on

which product is the best.

Dealer-refers to a person or business that buys and sell goods.

Deterioration-refers to the process of becoming progressively worse.

Expiration date- refers to the date on which when a product becomes legally
un-sellable and should be pulled off the shelves of its seller.

Household-refers to the people in a family or other group that are living

together on one house.

Marketing mix-refers to a combination of factors that can be controlled by a

company to influence consumers to purchase its product.
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ACCOUNTANCY BUSINESS AND MANAGEMENT

Manufacturers-refers to an entity that’s makes a good through a process

involving raw materials, components or assemblies, usually on a large scale
with the different operations divided among different workers.

Nutrition facts-refers to a panel found on a package of food which contains a

variety of information about the nutrition value of the food item.

Product-refers to an article or substance that is manufactured or refined for

sale.

Packaging design-refers to the practice of combining several related goods

and services into a single offer. It is the process and materials employed to
contain, handle, protect and transport a product.
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ACCOUNTANCY BUSINESS AND MANAGEMENT

CHAPTER 2

A REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and studies both local from foreign
and local sources. It also includes the effect of packaging on consumer buying
behavior.

Philip Kotler (2009) states that the final purchase decision may be ‘disrupted’ by two
factors: negative feedback from other customers and the level of motivation to
accept the feedback. For example, having gone through the previous three stages,
a customer chooses to buy a new telescope. However, because his very good
friend, a keen astronomer, gives him negative feedback, he will then be bound to
change his preference. Furthermore, the decision may be disrupted due to
unforeseen situations such as a sudden job loss or relocation. In brief, customers
will compare products with their previous expectations and will be either satisfied or
dissatisfied. Therefore, these stages are critical in retaining customers. This can
greatly affect the decision process for similar purchases from the same company in
the future, having a knock-on effect at the information search stage and evaluation
of alternatives stage. If your customer is satisfied, this will result in brand loyalty,
and the Information search and Evaluation of alternative stages will often be fast-
tracked or skipped altogether.

Gonzales (2007) said that the primary function of packaging is to protect the product
against potential damage while transporting, storing, selling and exploiting a
product. Gonzales mentioned that consequently the role of package in marketing
communications increases: it must attracts consumer's attention and transmit
adequate value of product to the consumer in the short period right in the place of
sale. Therefore, there is a necessity to explore the package and it's element in more
details, in order to understand which of these elements are the most important for a
consumer purchase decision.
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Rita Kuvykaite (2009) package attracts consumer's attention to particular brand,

enhances it's image, and influences consumer's perceptions about product. Also
package imparts unique value to products (Underwood, Klein and Burke, 2001:
Silayoi and Speece, 2004), works as a tool for differentiation, ie, helps consumer to
choose the product with wide range of similar products, stimulates consumer buying
behavior (Wells, Farley and Atmstrong, 2007.Thus package performs an important
factors influencing consumer's purchase package, its elements and their impact on
consumer's buying behavior became a relevant issue. He base on theoretical
analysis of package elements and their impact on consumer's purchase decision
empirically reveal the elements having yhe ultimate effects on consumer choice.
Research method that Rita used is systematic and comparative analysis of scientific
literature; empirical research. There are six variables that must be taken into
consideration by producer and designers when creating efficient package: form,
size, color, graphics, materials, and flavor. Similarly, Kotler (2003) distinguishes six
elements that according to him must be evaluated when employing packaging
decisions: size, form, material, color, text and brand. The research result of Rita
shows the impact of package elements on consumers purchase decisions can be
stronger. He conclude that package could be treated as one of the most valuable
tool in today's marketing communications, necessitating more detail analysis of its
elements and an impact of those elements on consumers buying behavior. The
impact of package antld its elements on consumer's purchase decision can be
revealed by analyzing an importance of its separate elements for consumer's
choice.