EFFECTS OF PACKAGING OF SOFT DRINKS ON CONSUMER BUYING BEHAVIOR: A CASE OF COCA-COLA

EFFECTS OF PACKAGING OF SOFT DRINKS ON CONSUMER BUYING BEHAVIOR: A CASE OF COCA-COLA

ABSTRACT: This paper sought to investigate the effects of packaging of soft drinks on consumer buying behavior, using Coca-Cola as a case study. The target population of this study was students on the campus of the Ghana Institute of Management and Public Administration. We sought to develop an understanding of how consumers evaluate various packaging elements (consumer buying behavior), provide an insight into their buying behavior and identify the various factors that influence their purchase decisions. Design/methodology/approach– Two types of data collection sources were used for this study, namely Primary and Secondary data. Primary data was obtained from questionnaires distributed to respondents to determine the effects of each packaging element on their buying behavior. The secondary data was obtained from textbooks, journals and other literature related to the study to develop a better understanding of the topic. Findings– Overall, analysis and generalization of the findings clearly indicates a strong relationship between packaging and buying behavior, showing the growing importance of packaging as a tool for differentiating one product from other competing products and also as a way of establishing brand identity.

Research limitations- One limitation of this study was the size and location of the target population since the study was conducted in a single educational institution with a limited population. The other limitation was that the study focused only on soft drinks and not any other product.
Keywords- Packaging elements, Consumer buying behavior, Soft drinks

CHAPTER ONE: INTRODUCTION

• 1.0 BACKGROUND OF THE STUDY

Packaging seems to be one of the most important factors in purchase decisions made at
the point of sale (Prendergast and Pitt, 1996), where it becomes an essential part of the selling
process (Rettie and Brewer, 2000). Due to increasing self-service and changing consumers’
lifestyle, the interest in product packaging as a tool of sales promotion and stimulator of buying
behavior is growing increasingly (Foxall, 1990). A well-designed product therefore has an
important role in marketing communications, especially from the point of sale and could be
treated as one of the most important factors influencing buyer purchase decision (Panwar,
2004).
According to Kotler et al. (2008), packaging has been transformed to become one
of the most important and powerful tools for promoting products, eye-catching the attention
of prospective consumers and communicating the value of the brand to the target market. In
reality, packaging plays multiple roles that range from its ability to position a brand on a
unique and appealing position that stimulates consumer purchase decisions; it conveys both
descriptive and persuasive information about the brand. consumer buying behavior are not
only based on the functional attributes of the product, but rather on the extras, the thrills and
extended benefits that the product gives. Accordingly, this study defines product as the
“marketing offer” entailing that which a business enterprise produces and offers to the market
for a commercial value.

Packaging has traditionally been considered an important part of the physical product
in the sense that it stores and protects its content. As a consequence of changing consumer
expectations, packaging becomes more important as it can be used to provide different service
dimensions (For example, information functions). Customers do not buy goods or services;
they buy the benefits those goods and services provide (Grönroos 2000).
It seems as if a product is incomplete until it is “dressed up”. In addition, the essence
of marketing is to manipulate consumer purchase decisions either directly or indirectly through
the use of the product-mix elements such as packaging, labeling and branding. In the same
vein, product packaging design elements (color, typography, usage instructions, package
material, shape, size, form) are deemed critical in shaping and guiding consumer purchasing
decision process.

Research shows that consumer buying behavior and decision between products within seconds when
they are shopping and within those few seconds the issue of packaging springs up. For the
purposes of the study, packaging will include the features or characteristics of a packaged
product as postulated by (Kotler, 1998) and (Cruden, 1989). They identified some features as:
Packaging Color, Printed Information, Packaging Material, Design of Wrapper, Background
Image and Innovation.

The central theme in this paper is the aspect of product packaging and how it influences
buying decisions for packaged products such as Coca-Cola. The package standing out on the
shelf affects the consumer buying behavior decision process, and package design must ensure that consumer
response is favorable. The problem is made more complex by several conflicting trends in
consumer decision-making. On one hand, some consumers are paying more attention to label
information, as they become more concerned about health and nutrition (IGD, 2003c). These
consumers are more involved in the product decision and use package information more
extensively. On the other hand, modern consumers are often looking for ways to reduce time
spent on food shopping and preparation. This can influence decision processes too, as time
pressure reduces detailed consideration of package elements (IGD, 2002b)
Various scholars have indicated that packaging features influence the buyer behavior.
Consumer buying behavior is a way through which individuals purchase and use the product
which satisfies their needs and wants. Shah et al. (2013). The buying behavior is most
influenced by many factors but this study will focus on packaging elements/features as a
predictor of buying behavior. In discussing consumer buying behavior, various models will be discussed
in detail and comparisons will be made to choose the one that fits the objectives of this study.

• 1.1 BACKGROUND OF COCA-COLA COMPANY

Coca-Cola or Coke can be described as the number one non-alcoholic beverage
company, as well as one of the world’s most recognizable brands. It has been a leading industry
player in the world in relation to soft drinks for a very long time. The company has positioned
itself in such a way that most people, both the young and old, love the refreshing and unique
taste that no other drink possesses. According to the Coca-Cola Company, the main purpose of
their packaging is to deliver their products safely to their consumers. Other benefits also
include: Extending the product’s shelf life, minimizing breakages and spoilage, reducing
transportation and handling costs, offering product information, and finally providing
convenience to the consumer.

Over the years, the famous contour bottle of Coca-Cola has evolved continuously,
maintaining its high quality performance while also improving its environmental impact. The
constant innovation and changes they make to their product package increases the excitement
of the over 1.7 billion people who consume Coca-Cola daily. The motivation for this study
therefore, is to know how these constant changes influence the perception and consumer buying behavior on campus.

• 1.2 STATEMENT OF THE PROBLEM

Various studies have been conducted on product packaging and consumer buying behavior in advanced communities such as New York, London, Thailand, Pakistan, New Delhi
etc. For instance, Wells et all (2007) posited in their study in the UK that there is a strong
association regarding the influence of packaging on the purchase decision, with over 73 per
cent of the interviewed consumers stating that they rely on packaging to aid their decision making process at the point of purchase. Again, Kotler (1998) indicated in his 1998 study that
packaging of products have become almost inevitable to marketing. He concluded in the study
that product packaging positively influences the purchase decision of buyers.
It is evident however, that very few of these studies have gained enough attention in
developing communities such as Accra (Ghana). One of such few studies within the developing
communities is (Mutsikiwa & Marumbwa, 2013) study on Product Design Elements and how
they influence consumer buying behavior in Zimbabwe. They found out that not all package design
element influenced consumer buying behavior. As observed, different results are obtained within the
advanced and developing community. Therefore we find it essential to enquire from a
developing community like GIMPA, how product packaging, particularly that of Coca-Cola
influences their buying behavior.

• 1.3 RESEARCH QUESTION

The research shall attempt to answer the following question: What is the effect of Coca Cola’s packaging on the consumer buying behavior on GIMPA campus?

• 1.4 OBJECTIVES OF THE STUDY

The general objective of this study is to investigate the effect of the packaging of Coca-Cola’s
products on the consumer buying behavior on GIMPA campus.

• 1.4.1 SPECIFIC OBJECTIVES

1. To identify the significance of product packaging on consumer buying behavior.
2. To identify the effect of packaging elements on consumer buying behavior.
3.  To measure the relative impact of each packaging element on consumers buying
   decisions.

• 1.5 JUSTIFICATION OF THE STUDY

The research will be useful in the following ways:

1. The study will provide useful information to better enhance understanding of the
   relationship between product packaging and consumer buying behavior.
2. It will help organizations identify the key elements to focus on when designing
   packages for their products.
3. It will serve as a source of reference to researchers and students who will undertake
   studies in the area of brand packaging and consumer buying behavior.

• 1.6 SIGNIFICANCE OF THE STUDY

This research will not only help the marketer in bringing innovation and creativity into the
packaging of the product but will also provide the policy makers with the requisite knowledge
when it comes to developing and implementing strategies for packaging. This study will also
help marketers and brand specialists create a distinctive positioning for their products. The
study will serve as empirical evidence on which other studies could be based. The study will
also provide detailed literature on the concepts of product packaging and consumer buying
behavior.

• 1.7 METHODOLOGY OF THE STUDY

The project work adopts a quantitative research approach since we want to examine the
relationship between the two variables stated in the hypothesis. The data for the analysis will
be collected from existing information available and also highly structured and close-ended
questionnaire distributed to the consumers of soft drinks. The numerical data obtained from the
results will then be analyzed statistically.

• 1.8 POPULATION OF THE STUDY

The target population for the study will be drawn from consumers of Coca-Cola on The Ghana
Institute of Management and Public Administration (GIMPA) campus

• 1.8.1 SAMPLING TECHNIQUE AND SAMPLE SIZE

Respondents will be selected using convenience and judgment sampling methods because
selection for participation will be based on the researcher’s judgment and respondent’s
readiness and availability to give required information for the success of the study. A sample
size of 375 respondents will be selected to respond to questionnaires.

• 1.8.2 RESEARCH INSTRUMENT

Questionnaires would be used as the main research instrument. Sets of close-ended questions
will be presented in the form of questionnaires to selected respondents.

• 1.8.3 METHODS OF DATA ANALYSIS

In order to make valid conclusions and recommendations, data obtained from the survey would
be analyzed using Microsoft Excel 2010 and Microsoft Project 2010 software. Results will then
be presented in tables followed by sound and logical discussions.

• 1.9 SCOPE AND ORGANIZATION OF THE STUDY

The study will be structured into five chapters as follows:
Chapter one will represent the introduction chapter which comprises: The background of the
study, statement of the problem, purpose of the study, objectives of the study, research
hypothesis, significance of the study and the general organization of the study.
Chapter Two reviews both theoretical and empirical literature on consumer behavior and
product packaging.
Chapter Three also presents methodology of the study. It includes the study design, population
and sampling, data collection methods, data collection procedures, and data analysis.
Chapter four explains findings and interpretations. It also discusses the findings relative to the
literature.
Chapter Five finally presents summary, conclusions and recommendations based on the study.
The limitations and recommendations for further studies were also included in this chapter.