CHAPTER ONE

INTRODUCTION

1.1. Background to the Study

In today’s business environment the competition to reach and maintain consumers is getting tougher, the market is one of the most turbulent environments today due to increased competition and change. (Karedza et al., 2016) businesses striving to remain competitive in today’s highly competitive industry have to understand how package design affects consumer purchasing decisions. The design of packaging is increasingly recognized as a critical factor influencing consumer purchase decisions. Research highlights that consumers often make quick judgments about products based solely on their packaging aesthetics, which can significantly impact their perceptions of quality and value (Huang & Sarigöllü, 2014). As competition intensifies in the global marketplace, the colour, size and material of packaging has become a key differentiator that can sway consumer choices, ultimately affecting sales and market share.

Also, in the marketplace, it is estimated that consumers spend no more than one minute to scan for and decide to buy the products they need. Hence, constantly improving product packaging is believed to be one of the most feasible approaches that businesses can do to gain consumers‟ attention. Product packaging is considered as a “sales promotional tool for the organizations” (A. R. Raheem et al., 2014) An appealing and differentiated package can help a product to stand out among other similar items and thus, it acts as a vital factor in stimulating purchase intention (M. M. Deliya et al., 2012). Furthermore, product packaging also helps to shape the brand image in consumers‟ mind (M. F. Sial et al., 2011).

Initially, packaging served a basic function: to protect and preserve products. However, it has transformed into a sophisticated marketing tool that plays a crucial role in shaping consumer perceptions and behaviours. The historical roots of packaging can be traced back to ancient civilizations, where rudimentary materials such as leaves and clay were used to store goods. The Industrial Revolution marked a pivotal change in this trajectory, as it introduced mass production techniques and innovative materials like glass and metal. These advancements allowed for more complex packaging solutions that could cater to a growing consumer market (Chitturi, Londoño, and Henriquez, 2021). As the marketplace expanded, the demand for distinct and visually appealing packaging surged, leading to the establishment of branding principles that emphasize both aesthetic appeal and functionality.

Products’ visual

appearance has become a key differentiator from the competition as functional elements on them become more and more similar (Kotler, 2001; Crilly et al., 2004; Alam et al., 2023). Over time, research on product design has continued to expand in tandem with its growing significance (Sunny et al., 2017; Hossain et al., 2023; Ferdous et al., 2023). The research in this field is still far from finished, despite the growing interest in the subject. For example, there isn’t even a single, widely accepted meaning for the word “product design” (Wang et al., 2010; Homburg et al., 2015). At the time of sale, packaging design influences decisions about what to buy and acts as a salesperson for the product. Legislative and regulatory restrictions dictate which package features must be present. Furthermore, the packaging serves a variety of purposes, including drawing in customers, informing them, and shielding the products from the elements (Alam et al., 2023).

As consumer preferences and expectations continue to evolve, it is imperative for marketers to comprehend the impact of consumer perception on the demand for insurance products is the effect of package design on consumer purchasing decisions. The product package serves the buyer during the decision-making process by providing a holistic impression of the product that aids in evaluating and selecting the best option. Till the product is consumed and the package is reused, the product is also the package.

According to Chukwu and Enudu (2018) packaging plays a crucial role in marketing communications, especially at the point of sale, and is one of the most important variables influencing customer purchasing decisions. Packaging serves as the ultimate selling point for a product, encouraging impulsive purchasing, cutting down on advertising expenses, and expanding market share. Abdullah, Kalam & Akterujjaman (2013) also said packaging includes more than just the wrapping of a product that contains information about the product and the manufacturer. Product packaging is a critical requirement for manufacturers of consumer goods, such as cosmetics and beauty care items, to have a competitive edge.

Whilst package shape and size often convey a subjective impression, studies suggest that consumers are always drawn to products by these elements. Agariya et al. (2012) found that consumers’ preferences for a product shape or size are based on their unique needs and purchasing power. Thus, smaller product packaging designs have the potential to attract a new target market. Package material also influences consumer purchasing decision. Packaging generally serves as protective coverage for products which ranges plastics to any other types of material. However, there is a shift in perspective. According to Steenis et al. (2017), as they found that consumers are often attracted to packaging materials, particularly those that have an environmentally friendly or conscious quality. In the long term, this may change consumers’ preferences toward the packaging material, and thus their preferences toward the product.

According to Hagtvedt & Brasel (2016), consumers often make quick judgments about products based on the appearance of the product, which can significantly affect their emotional responses and subsequently their purchasing intentions. According to Singh, Kaur, & Kaur, (2021) Colours, shapes, and imagery can evoke specific feelings that resonate with consumers, thereby affecting their attitudes toward a product. For instance, warm colours like red and orange can create a sense of urgency and excitement, prompting consumers to act quickly, while cooler colours like blue and green may evoke feelings of trust and calmness. The product’s value is increased by the brand image. Colours, fonts, text, and illustrations used in package design play a big part in how the package looks. The product package’s main function at the point of sales is to draw people in and make the brand distinguish out from others in the store (Kwaku, & Fan, 2020).

In Western markets, research has shown significant emphasis on sustainable packaging design, with 82% of consumers actively seeking environmentally friendly packaging options (Peterson & Thompson, 2023). Studies indicate that 73% of Western consumers are willing to pay premium prices for products with minimal packaging waste and recyclable materials (Harrison et al., 2022,). The European Packaging Federation found that  paper and cardboard is better for the environment (63%) followed by glass (27%) paper and cardboard is easier to recycle (57%) followed by glass (28%) paper and cardboard is lighter weight (62%) followed by plastic (26%)glass provides better protection of products (51%) followed by metal and plastic (15%) metal is stronger and more robust (51%) followed by glass (22%) (Packaging Preferences 2020).

In Europe, the packaging industry covers the 40% of plastic material demand (Plastics Europe 2020), and the plastic packaging waste reached a total of 15.4 million tonnes in 2019, an increase of 26.4% compared to 2009 (Eurostat 2019). The reuse and recycling of these materials still remain under-implemented (European Commission 2018). As a result, the development of sustainable solutions in the packaging industry is urgently needed to mitigate the global externality of plastic pollution. In North America, research by the Packaging Consortium revealed that 85% of consumers prefer transparent packaging that clearly displays the product, and 71% value innovative opening and resealing mechanisms (Gary R. Holmes, Audhesh Paswan, (2012).

Recyclability has become a major concern in the world today and with a large number of environmental-friendly consumers within our midst, manufacturing sectors are driven to look for packaging that attracts consumers in general to support not only their product but also their efforts to protect the environment. Thus, there is a high demand for recyclable packaging which has a bright prospect and is worth looking into. Nowadays consumers prefer to buy products that have recyclable packaging due to the wide attention given by global movements to recycle and save the environment. There are mainly two types of recyclable packaging: paper packaging and corrugated packaging. Within the recycled materials market, paper packaging is the largest sector, accounting for around 65% of all recycled packaging. Demand for paper packaging will keep on rising as it is affected by the manufacturing economies of China and other emerging countries. Analysts predict the overall market for recycled paper packaging to grow at a compound annual growth rate (CAGR) of 5% to reach $139 billion in 2018 (Anne, 2014)

In the African context, the African Packaging Organization’s study across multiple countries showed that 89% of consumers prioritize durability and product protection in packaging design, particularly due to challenging distribution conditions and climate factors (Okonkwo et al., 2023). Research in South Africa indicated that 76% of consumers prefer packaging with clear product information in multiple local languages (Maziriri, E. T. 2020).

In Cameroon, packaging design is very important when it comes to purchase intentions. Good packaging changes how people feel about a product’s quality and value. People have different tastes and preferences. Focusing on the Bamenda II area, packaging design affects purchase intentions. More consumers in Bamenda II purchase products that not only work well but also match their cultural values and show a commitment to the environment. By delving into this uncharted territory, we embark on a journey of discovery, aiming to unlock valuable insights that will empower marketers to navigate the intricacies of this local market, cater to the needs of the people, and forge a path toward a thriving understanding consumer behaviour. Although more research is needed in Cameroon, these studies provide initial insights into the effect of package design on consumer purchasing decisions in Bamenda II.

1.2. Statement of the problem

In today’s competitive market, packaging design quality serves as a crucial source of competitive advantage among firms. The visual appeal and functionality of packaging are typically utilized to enhance value and differentiate products from competitors. Consequently, improving packaging design quality becomes a means to attain strategic competitive advantage. Recent marketing approaches have positioned packaging quality as the ultimate determinant of consumer satisfaction in terms of visual appeal, durability, convenience, and value for money. Therefore, all manufacturers must identify and resolve challenges related to effective packaging design and high-quality offerings (Hustvedt & Brasel, 2016). In recent years, packaging design has gained significant attention from researchers, practitioners, and managers due to its powerful impact on consumer purchasing decisions (Kwaku & Fan, 2020).

The purchase intention of most products in Cameroon is influenced by various factors, including package design. However, there is a lack of comprehensive research on the specific the effect of package design on consumer purchasing decisions in this region. One of the key problems in Bamenda II Municipality is the limited awareness and understanding of purchase intention amongst marketers. It plays a critical role in the buying pattern of consumers, and low awareness and misconceptions about their behaviour in relation to packages can hinder the buying intentions. Exploring how package design on consumer purchasing decisions can shed light on the knowledge gaps and misconceptions that need to be addressed to increase demand for certain products.

As compare to other areas in the world, Bamenda II municipality found in the North West region of Cameroon is characterised by a variety of cultures and believes. For this reason, the purchase intention of consumers is shaped by these different norms. Thus, this study aims to explore the effect of package design on consumer purchasing decisions in the dimensions of colour, size and material of packaging.

1.3.1. Main Research Question

What is the effect of package design on consumer purchasing decisions in Bamenda II?

1.3.2. Specific research question

• What is the effect of package colour on consumer purchasing decisions in Bamenda II municipality?
• What is the effect of package size on consumer purchasing decisions in Bamenda II municipality?
• What is the effect of package material on consumer purchasing decisions in Bamenda II municipality?

1.4.1. Main Research Objective

To examine the effects of package design on consumer purchasing decisions in Bamenda II municipality?

1.4.2. Specific Research Objectives

1. To examine the effect of package colour on consumer purchasing decisions in Bamenda II municipality
2. To examine the effect of package size on consumer purchasing decisions in Bamenda II municipality
3. To examine the effect of package material on consumer purchasing decisions in Bamenda II municipality