Importance of Consumer Perception and Buying Decisions
The primary aim of any particular business is to ensure that they are successfully able to please the different consumers as present in the organisation`s external environment. This is the reason, why it becomes critically important for any business to appeal to the various consumers in a manner such that they are attracted to the products being offered by the organisation and increase their sales (Yang and Jun 2002).
In this aspect, it can be stated that the primary aim of the particular study is to understand the impact of packaging on the perception of the consumer. The report begins with a review of literature about the subject which is then followed by the discussion on the buyer`s behaviour in the particular domain. The critical analysis of the importance of the specific issue will be done which will be discussed in line with the consumer market in Egypt.
Consumer perception
The theory of consumer perception looks out to increase sales and to find the approach related to consumer behaviour. The consumer perception goes a long way in understanding how the consumer will make the buying decision at large (Yang and Jun 2002). The reason why consumer behaviour and consumer perception theory may be considered to be of utmost importance is that it is crucial to understand the perception of the different targeted markets and segment groups because each impression is unique and varying (Silayoi and Speece 2004). Hence, it stands the primary aim of the consumer perception theory to understand how an individual is motivated and the different methods which tend to have a positive impact on the consumer purchase. The consumer is the centre attraction of a firm and their decision as on the product purchase is impacted by a large number of factors. According to Mohebbi (2014), these factors may either be personal or influenced by different external factors.
According to Rundh (2005), Packaging can be described as the technology through which the products to be sold to the different consumers are enclosed or protected for distribution and sales. It can also be defined as the specific procedure of designing, evaluating and producing the various packages which not only assists the firm in engaging in significant sales and logistics but also facilitates the firm in making the purchasing decision (Jansson-Boyd2010). Quester et al. (2007), states that Packaging of a product also supports in informing and selling the products. Very often the concept of package labelling may also be attached to the packaging whereby a graphic communication is present on the packaging. Mohebbi (2014), argues that the purpose of the packaging has several objectives, each of which adds up to the value of the brand and the product at large.
According to Sara (1990), the different purchasing decisions which are made by the different consumers are dependent on a large number of factors. These factors may be related to the social environment of the consumers like their peer group, their social circles, their values and beliefs along with an influence from the features of the different products which exist. Packaging forms one such determinant of the consumer purchasing decision (Silayoi and Speece 2004). According to Shah et al. (2013), packaging assists in adding a unique value to the product and also works as a tool of differentiation whereby it becomes comparatively more comfortable for the consumer to decide from a range of items and also tends to stimulate their customer buying behaviour and as stated by Schiffman and Kanuk (2012), the package intends to attract a consumer`s attention to the brand and helps in enhancing the influences of the consumer. Hence, it can be stated that the packaging of a product has a crucial role to play and that it dramatically influences the purchase of a product and the decisions as made by the customer (Shah et al. 2013).
Packaging and Its Objectives
As stated earlier, the consumer perception can be defined as the perception which a consumer holds about the overall organisation.This perception is generally influenced by various social as well as economic reasons and often reflects on the purchases made and the sales incurred by the firms. Firstly, according to Usunier, Lee and Lee (2005), the loyalty of the customers is much dependent on the perception which a consumer holds about the particular product.
In addition to this, as agreed by Quester et al. (2007), the perception of the customers is also related to the trust a customer generally reflects on the particular product. This perception may have been built by the past purchases of the brand and other related experiences of the brand with the consumer audience (East, Wright and Vanhuele 2013). For the customers, the trust is always a determinant of their purchasing decision, and concerning this, the company`s sale and the purchases of the customers is much dependent on the different abilities of the company to build trust amongst the various individuals (Jobber 2009). In case the consumer has formed a perception and is visibly sceptical about the brand, then the sales of the brand might be affected accordingly (Usunier, Lee and Lee 2005).
Hence, in this manner, as the consumer perception tends to have a significant impact on the buying decisions, it also has a substantial effect on the revenues as well as profits of the customer. For this reason, it is considered to be important for the firm to improve the consumer perception of the brand which in turn is the best way to influence the profits of the brand (Silayoi and Speece 2004).
Concerning this, it can be mentioned that there exists a robust contextual relationship between the packaging of the product on the consumer perception (Jansson-Boyd 2010). This is because the packaging forms one of the most reliable components of the purchasing decision and the sales of a firm is greatly influenced by the consumer perception (Schiffman and Kanuk 2012). Hence, there exists a considerable impact of packaging on consumer perception, and for this reason, it becomes enormous important for the different organisations to engage in a decision which shall benefit their sales and have a positive impact on the firm at large (Majumdar 2010).
As the competition in the consumer market has increased considerably it has become challenging for the different firms to attract the various customers and hence, this is where packaging comes to the rescue whereby the firm would have been able to help in differentiating their product from the product of the different companies (Thang and Tan 2003). The packaging helps the consumer to choose the various products from an aisle of a large number of products. Hence, according to Slater (1997), the packaging of a product goes a long way in helping the customer to look after the product and protect it from the wear and tear which can take place concerning the different consumers and their use.
Packaging and Consumer Buying Decision
According to Silayoi and Speece (2004), it can be observed that the fundamental trends and the lifestyle of the consumers have become more outgoing and the consumers are consistently on the go at present. Regarding this, it becomes considerably essential for the different marketers to come up with a more mobile packaging of the products which can be used by the consumers while they are on the move (de Mooij 2004). As stated by Thang and Tan (2003), earlier the different companies, usually engaged in the packaging which was quite large and did not come up with a more economical and compact packaging.
According to Tomlinson (2006), the consumers usually like to obtain smaller variants of the product which means lighter packages as they are easy to carry and often assist the different consumers in being economical. This trend is usually followed by general college students and young professionals who want to be on a strict budget and usually stay alone and thus, prefer to buy items with smaller packages (Foxhall, Goldsmith and Brown 1998).
The packaging information and the model have a significant role to play in determining the success of the overall product (Solomon 2010). This means that a customer generally heavily on the packaged information of the product and the design of the packaging. The designing of the packaging has a crucial role to play in deciding upon the overall success of the product as it assists in the formation of the first impression of the products in the eyes of the customer (Tomlinson 2006). The packaging information helps in building the image of the brand from the point of view of the customers and the more information as present on the packaging, the better it is for the firm as it sells itself (Graves 2010).
Over the last few years, the companies have begun to understand the concept of packaging and the impact it has on the perception of any brand from the side of the consumer. Hence, concerning this, it can be mentioned that over the last few years, various brands have changed their packaging and adopted an agile and leaner packaging base which is not only visually appealing but at the same time, protects the product inside from various harmful substances. These brands are the detergent brands like Tide, Coca Cola, different soap brands as well as the chocolate brands. Through these changes, the brands have witnessed enormous growth and an increase in their revenue.
Impact of Packaging on Consumer Perception
The consumer market in Egypt has been undergoing a significant trend concerning which it can be stated that there has been an emergence of the demographic micro-segments. This means that consumers are becoming increasingly cautious and inclined towards price sensitivity (Grunert 2005). According to Optimetriks.com (2018), 86% of the customers have claimed that the price is the main decision making a factor. In addition to this, the customers want to ensure that even if they have to pay a higher price, they get a product with a strong packaging. Although the economy has been changing, the different consumers are engaging themselves in coping mechanisms to ensure that they can adapt to the trends and the companies are also taking measures to improve on the same (Holt 2004). In the given section, specific examples of products as present in Egypt will be used to explain the manner, in which the companies plan to bring considerable changes in their packaging from time to time and the kind of impact this has on the consumer perception of the product and the purchase.
Product 1: Persil detergent liquid
The Persil detergent liquid can be considered to be a relevant product in the consumer market of Egypt whereby the product has been present in the market since a long period and has given a considerable competition to the international detergent brands. The left image reflects the old packaging of the detergent which was made of paper and often led to leakages. Moreover, this not only added up to the waste in the stock, the consumers often found it difficult to store the product and hence, to avoid this the customers did not purchase the product and the sales of the company also dropped (Solomon 2010). However, with the new design coming into question, the brand adopted the plastic container style from the international brands, and this can be witnessed in the right image which is the picture of the brand in the recent times. Hence, the customers after seeing this packaging found a solution for their storage and leakage problems and the sales increased considerably and once again the brand was able to compete with its international counterparts.
Product 2: Cheetos
The Cheetos is an FMCG product which has been relatively favourite product by Pepsi has also undergone a considerable change in its packaging design. The brand initially had a different model on its cover, but currently has taken up a more contemporary approach whereby the brand has changed the colour of the product and come up with a new style of logo (Mohebbi 2014). In addition to this, the Cheetos Popcorn packaging which is a new strategy of Pepsi has been successful. Although the recent cover can be stated to be very trendy, the brand has not been successful. Below is the comparison of covers being given, which was found almost the same by the customers.
Case Study – Product Packaging in Egypt
Product 3: Edita`s Freska
The third favourite product which went under a change of its product packaging is the Edita`s Freska Wafers brand. Although the product has been adequately popular amongst the general mass of the population, the firm was experiencing a sense of downfall in the sales of the product and hence, decided to renew the life of the product by making it undergo a new packaging design. Therefore, concerning this, the brand came up with a new idea to change the overall look of the wafers and give more information to the customers about the product offering. Previously, as it can be witnessed, the packaging was simple, but now it’s trendier and describes the wafer component along with the image of a girl on the cover (Majumdar 2010). After this, the brand has been able to experience an exponential growth rate.
Conclusion and Recommendations
Therefore, from the given analysis, it can be rightfully stated that the consumer is the reason why a business usually functions and this is the reason, it becomes considerably crucial for the firm to engage in ways in which the consumers can be attracted, and the overall revenue of the organisation increases substantially. The report examined the impact of packaging of the product on consumer perception and analyzed the case for the concept of packaging and review of the literature. To explain the manner in which the packaging of the products has evolved, various examples of the method in which the multinational brands have changed their packaging in order to gain consumer demand has been given which is then followed by the focus on the packaging concept in Egypt and examples on how brands like Cheetos, Freska and Persil have advanced their packaging to receive mixed and positive responses respectively. It can recommend that the firms need to improve consumer perception to gain long term success.
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