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Contents

1. Introduction..................................................................................................................................1

3. Research Question.......................................................................................................................3

3.1 Conceptual Framework..........................................................................................................3

3.1.1 Independent Variables:...................................................................................................4

3.1.2 Dependent Variable:.......................................................................................................4

3.2 Hypothesis.............................................................................................................................5

3.3 Research Objective................................................................................................................5

4. Literature Review........................................................................................................................5

5. Research Design..........................................................................................................................8

6. Population and Study Sample......................................................................................................9

6.1 Population..............................................................................................................................9

6.2 Sample frame.........................................................................................................................9

6.3 Sample size............................................................................................................................9

6.4 Method of sampling...............................................................................................................9

6.5 Source of Data Collection....................................................................................................10

7. Data Analysis.............................................................................................................................10

8. References..................................................................................................................................11
ABSTRACT

The effect of packaging on consumer buying behavior in the Nepali local snack food industry is
the research topic of this study. This study looks at the value of packaging and how it can be
used as a marketing tool to influence customer purchasing decisions. When it comes to the
packaging of local snack foods in Nepalese markets, the majority of them have transparent
packaging with limited product details, whereas foreign snack brands available in markets have
high-quality packaging with visual and verbal elements on it and are giving local brands a run for
their money. As a result, this study was conducted to emphasize the importance of packaging in
boosting sales and influencing customer purchasing behavior in Nepal's local snack food
industry. This study is built on a conceptual framework that includes three independent variables
and one dependent variable. The wrapper design, the quality of the materials used, and
packaging innovation are all independent variables. The brand name, logo, and color of the
packaging, as well as product specifics, nutritional information, and ingredient lists, are all
essential components of the wrapper design. Packaging consistency, safety of the product from
the packaging, and packaging longevity all come under the second independent variable.
Biodegradable packaging, packaging that is compact and simple to dispose of, use, store, and
keep, packaging that is environmentally friendly, and packaging that can be used for various
purposes are all examples of the third variable – packaging innovation. The dependent variable is
consumer purchasing behavior, and the aim of this study is to see whether the three independent
variables have an effect on the dependent variable.
CHAPTER 1: Introduction

1.1 Background of the study


The value of packaging design as a medium for communication and branding for
packaged food items is increasing in competitive markets. The visual elements of the products
are critical in representing the products to customers, especially when they are hurried and have
little involvement (Speece and Silayoi 2004). When it comes to Nepalese snack foods, they are
widely available and sold by street vendors, grocery stores, and supermarkets.

The majority of the packaging for Nepali local snacks is transparent wrapper with
minimal branding and product detail. International brands, on the other hand, have attractive
packaging and branding, giving them a competitive advantage over Nepalese local snack brands.
This is because packaging has a greater appeal of customers than advertising and can distinguish
a brand from its rivals. Packaging is also critical in reinforcing a consumer's buying decision at
the point of sale (Parmar and Deliya, 2012). Therefore Nepali packaged snacks industry is in dire
need of a market research to understand weather their products are not doing well in the market
because of their low effort in packaging design. Firstly we have to identify variables of the study
and then set hypothesis and research question with the help of extensive literature review. Then
we will test the hypothesis with the help of correlational and regression analysis.

1.2 Problem Statement


When it comes to the local Nepali snack food industry, the majority of brands have very
plain transparent packaging with very little detail about the product Nepal (S. Khatiwada,
personal communication, April 10, 2020). When you look at the foreign snack foods on the
market, you'll notice that they're well packaged and that all of the product details is available
along with their branding. Also, in the Nepalese market, foreign snack food brands are posing a
serious threat to local snack food brands, and the international snack food brands' packaging
quality is superior to that of Nepali local snack food packaging. Marketers use various marketing
mix elements to influence consumer purchasing behavior, and each marketing mix element has
its own effect on consumer purchasing behavior. Similarly, the product's packaging plays a vital
role on influencing customer purchasing decisions. The impact of packaging on the consumer is
greatest at the point where the consumer is making a buying decision, particularly when
purchasing fast-moving consumer goods (FMCGs) (Sultan, 2016). This study will contribute to
closing the gap in the Nepali snack food industry regarding the role of packaging in shaping
customer purchasing behavior. This will assist brands in gaining a better understanding of their
customers' perceptions and attitudes about well-packaged goods, which will be extremely
beneficial if properly implemented.
1.3 Research questions
i. Can the design of the wrapper have an effect on customer buying behavior for Nepali
local snacks?

ii. Will innovative packaging affect the consumer buying behavior on Nepali local
snacks?

iii. Does the quality of the packaging material have an influence on customer purchasing
behavior for Nepali local snacks?

1.4 Research objectives


The main goal of this study is to see whether improving packaging by using high-quality 
materials, innovating packaging, or using a more appealing wrapper design would affect custome
r purchasing behavior. The result of this study will give us answer to whether or not the
independent factors have an effect on dependent factors.

1.5 Significance of the study


This study will help the local snack manufacturers to decide whether or not to put their
time, cost and resource into packaging of the product. The research will measure the impact of
the independent variables i.e. Design of wrapper, packaging innovation and quality of packaging
on the dependent variable i.e. Consumer buying behavior. It will also give the producers insights
on the importance level of each factors of the study. Furthermore this study will act as a
theoretical base work for follow up studies.

1.6 Organization of the study


Chapter 2 Literature Review

2.1 Industry profile


The snack food industry of Nepal produces different varieties of local and international snack
foods. The international market is dominated by variety of Indian snacks while products from
other countries are not doing well. The packaged snack market is separated into different type
and companies producing them which makes it difficult to choose the market leaders.

Some of the local packaged snack foods of Nepal are Lakhamari, Pustakari, Furandana,
Nimkee,Nepali titaura, Gutpak, Khajuri and Selroti,. The majority of snack foods are available
and sold in Nepal. These snacks are very popular among Nepalese people and are frequently
consumed. People have been eating and making various kinds and varieties of local traditional
snacks all over Nepal, and some of the snack foods also have cultural and traditional
significance.

2.2 Theoretical review


The importance of attractive packaging in attracting consumers' interest cannot be overstated.
Since the visual elements of a package affect a product's preference to a large degree, and the
graphics and color of the packaging are often important influences and aids in a competitive
market. The informational elements on the packaging play an important role in influencing the
choice of the consumers. The appropriate delivery of the information on the packaging generates
a substantial impact on the consumer's purchase decision and increases product credibility
(Silayoi & Speece, 2004). Product attractiveness has a significant influence on generating the
interest of the consumers towards the product. The differentiation on the packaging also plays a
vital role in consumer evaluation of the product, and labeling significantly affects consumer
awareness (Borishade & Joy, 2015).

Along with the realistic visual elements on the package, verbal packaging features like
nutritional and product details are also critical in assisting consumers in making purchasing
decisions and repeat purchases. In the case of snack food customers, visual packaging features
were more essential than verbal packaging features. As a result, manufacturers must concentrate
on the visual packaging features of snack food products. (Kim-Soon et al., 2018).

Packaging is also being used by businesses to boost revenue and lower advertising costs.
Packaging is used for marketing communication, and it is an important factor that influences
customer purchasing decisions. Innovation, packaging color, printed information, background
image, packaging material, and product wrapper design all played important roles in influencing
consumers' buying behaviour, according to the report. However, considering all of these factors,
there is one more important factor that always comes first: price. Consumers are heavily
influenced by the price of a commodity when making a purchase. Furthermore, the study
discovered that people over the age of 22 are more interested in the written material on the
packaging, rather than the packaging itself. They are more interested in the product's quality
rather than the packaging. (Hana, 2014).

2.3 Empirical review


The majority of young Indian consumers recognize the value of food packaging and are willing
to pay a premium of 11-30 percent for packaged foods. This contradicts the widely held
perception that Indian consumers are more price sensitive. Consumers appreciate the packaging's
various functional properties, but not all of them are equally essential. They also claim that when
it comes to packaging design, the emphasis should be on the product's safety and quality,
accompanied by the packaging's beauty, aesthetics, and environmental concerns (Kapoor and
Kumar, 2019). Packaging is one of the most important advertising methods in the marketing of a
product. In addition, according to the research conducted in Kerela, six factors should be
considered: security, recognition, attractiveness, containment, and customer convenience.
(Vishnu et al., 2017).

Packaging gives businesses a significant advantage in attracting customers. Visually, packaging


must please customers, as well as have must-have packaging features that will draw attention.
Since the supermarket shelf is full of identical items for the store's customers, the packaging
would be the most popular aspect that distinguishes the product from others. The retail industry,
as well as product diversity, is increasing in the FMCG market, and there is intense competition.
In this case, packaging is seen as a major competitive advantage in shelves at sales points, which
is why adequate packaging is often known as a silent seller and plays a significant role in the
consumer buying decision. When the packaging of snack foods catches consumers' attention,
they are more likely to make impulse purchases. 7 Consumers need all packaging functions such
as security, content, convenience, and visuals, according to the report. These functions can be
used by products that stand out in their packaging to please customers and draw their attention.
(Bulbul, 2019).

The majority of studied articles in the literature reviews found out that attractive visual elements
on packaging were one of the most important factors in triggering consumers' impulsive buying
behavior and encouraging them to purchase FMCG items, but some studies have found that, in
addition to the visual elements of the packaging, the verbal elements were equally important.
Furthermore, some researchers discovered that people paid more attention to product prices than
packaging, but the majority of research papers demonstrated the significance of packaging in
affecting customer purchasing decisions. So this study will fill a gap in the Nepalese Snack Food
Industry because no previous research has been done in this field, and the population and their
characteristics will be different from previous international studies. This study will fill in the
gaps and serve as a useful guide for Nepal's new local snack brands.
2.4 Conceptual framework
This research is based on three independent variable and one dependent variable which is
selected from extensive literature review. The following figure explains the research conceptual
framework.

Design of wrapper

Consumer buying
behavior
Packaging quality

Packaging
innovation

Independent variable Dependent variable

2.5 Operationalization of Variables

i. Design of wrapper: Wrapper design is the first independent variable, and it refers to
the visual and verbal elements of the wrapper, such as color, use of pictures/graphics,
product details such as ingredient lists, nutritional facts, packaging language, and
stated country of origin, brand name, and logo.

ii. Packaging quality: The second independent variable, quality of materials, refers to
the quality of the material used on the packaging, which helps to preserve the
product, attract more buyers, and increase its value.

iii. Packaging innovation: The third independent variable, creative packaging, refers to
modern product packaging technologies such as easy-open, easy-store, easy-use,
recyclable and recycled packaging, easy-to-dispose, compact and easy-to-carry
packaging, and packaging that is environmentally friendly.
 Variable sources: (Silayoi & Speece, 2004) (Borishade & Joy, 2015) (Kim-Soon et al.,
2018) (Hana, 2014) (Kapoor and Kumar, 2019).

2.6 Hypothesis formulation


For this study, following hypotheses are based on one dependent and three independent
variables, the formulated hypothesis are:

i. H1: There is a significant relationship between the consumer buying behavior and
the wrapper design.

ii. H2: There is a significant relationship between the consumer buying behavior and
the quality of material.

iii. H3: There is a significant relationship between the consumer buying behavior and
innovative packaging
Chapter 3 Research Methodology

3.1 Philosophical foundation of research

3.2 Research Design

3.2.1 Purpose of the study


This is a hypothesis testing study. The study is trying to investigate the relationship between the
independent variables (packaging quality, packaging innovativeness and design of wrapper) and
the dependent variable (consumer buying behavior).

3.2.2 The extent of researcher interference


The researcher’s interference is minimal, all the survey forms was sent out to the respondents
which the respondents filled out without any interference.

3.2.3 The study setting


This study is a field study (non-contrived setting) where the natural flow of activities was not
interrupted.

3.2.4 The unit of analysis


The unit of analysis are the individual consumers. The data is gathered from the individual
consumers through the Google forms.

3.2.5 The time horizon of the study


The time horizon of the study is cross-sectional. The survey was conducted once with the help of
the Google forms.

3.3 Sample design


3.3.1 Population
The population that is studied in this research are the general consumer groups above the age 18
who make frequent purchase decisions.

3.3.2 Sample frame


The sampling frame for this research are the people living in the Kathmandu valley.

3.3.3 Sample size


The sample size of this survey will be 120

3.3.4 Method of sampling


The sample selected for this survey are selected using the convenience sampling. This method of
the sampling was selected because of the second wave of COVID, the questionnaires (Annex-1)
are distributed to the friends and families and to the people who were easily accessible on the
online platforms. The primary data for this survey is obtained through the survey conducted
among the sample size. Google form platform was used to circulate the questionnaire and collect
the first-hand information about the local products.

3.4 Data collection Technique –Questionnaire


The primary data are collected with the help of questionnaire created with the help of extensive
literature review. The collected data will be converted into excel files which then will be
forwarded to the SPSS software for further analysis. The questionnaire is divided into three part,
Demographic information, Descriptive information and Likert scale questions. This will help us
filter the collected data.

3.5 Questionnaire administration


The questionnaire will be distributed via google forms. Suspicious responses will be discarded
and those who select the option that they have never consume snack foods will also be separated
from the analysis. The response sheet will be converted into excel sheet and then loaded as a
database into SPSS software. This process will be error free and all the data will be put without
any manipulation.

3.6 Data Analysis Technique


The majority of result of this study comes from result generated from SPSS software. The
dependent variable and the independent variables will be mixed into a representing variable and
then put to reliability test with the help of Cronbach’s reliability test. Then the data will be
forwarded for correlational analysis which will decide which hypothesis to accept or reject.
Finally regression analysis will be done for looking the impact of independent variable on
dependent variable.

3.7 Ethical considerations


Annex 1
Questionnaire of the study

Survey Questionnaire

1. Gender:

a) Male

b) Female

c) Other

2. Age

a) 18-25

b) 26-30

c) 31-40

d) 41-50

e) 51 and above

3. Occupation

a) Student

b) Self-employed

c) Private sector employee

d) Government sector employee

e) Other
4. Education level

a) School

b) High school

c) Bachelors

d) Masters

e) Above Masters

5. Income level

a) I don’t earn

b) Less than 25000

c) 25,000-50,000

d) 51,000-75,000

e) 71,000 and above

6. How often do you consume Nepali local snacks?

a) Once a week

b) Once a month

c) 2-3 times a month

d) Almost everyday

e) Never

7. Which brands of snack foods do you prefer the most?

a) Local brands

b) International brands
8. When buying the snack foods packaging of the product has an influence in my purchase
decision.

a) Yes

b) No

c) Sometimes

9. How do you rate the packaging of the Nepali local snacks compared to international snack
brands?

a) Very good

b) Good

c) Fair

d) Poor

e) Very poor

10. Which of the following on a snack food package influences the most while making purchase
decision (You can select multiple options)?

a) Quality of the packaging

b) Product information

c) Brand name

d) Recyclable material

e) Vibrant wrapper colors

f) Use of graphics and pictures

g) Nutritional facts

h) Other
Rate the following factors from 1 to 5 where 1- strongly disagree, 2- disagree, 3- neutral, 4-
agree and 5- strongly agree

Regarding the wrapper design of the snack foods, please show your level of agreement or
disagreement with the following statements.

Strongl Disagree Neutral Agree Strongly


y agree
disagree
Graphics of the packaging has an
influence on my purchase decision.
I prefer packaging which includes
nutritional information.
The list of ingredients on the packaging
influences my purchase decision.
The brand/manufacturer name on the
packaging has an influence on my
purchase decision.
I prefer packaging with particular color
pattern
The language of packaging has an
influence on my purchase decision.
The origin of the product specified on
the packaging has an influence on my
purchase decision.
The other information available on the
packaging is very important on
influencing my purchase decision

Regarding the quality of materials on the packaging of the snack foods, please show your level
of agreement or disagreement with the following statements.

Strongly Disagre Neutral Agree Strongly


disagree e agree
The packaging materials has an impact
on my purchase decision.
The packaging durability has an impact
on my purchase decision.
Protective packaging of the product has
an influence on my purchase decision.
The quality of the packaging means
that the product is better.
The quality of the packaging represents
its brand value.

Regarding the innovation on the packaging of the snack foods, please show your level of
agreement or disagreement with the following statements.

Strongl Disagree Neutral Agree Strongly


y agree
disagree
Innovation and practicality on the
packaging used is very important to
me.
I prefer packaging which is easy to
recycle
I prefer packaging which is
environment friendly.
I prefer packaging which has multiple
uses.
I prefer packaging which has the
function of easy open and close.
I prefer packaging which is
ergonomically practical to hold and
use.
I prefer packaging which is easy to
store.

Regarding the packaging of the snack food and the buying behavior, please show your level of
agreement or disagreement with the following statements.

Strongly Disagre Neutral Agree Strongly


disagree e agree
If the packaging is innovative, I am
likely to make the purchase.
If the packaging is of high quality, I am
likely to make the purchase.
Packaging plays an important role on
my purchase decision.
I am willing to buy the product with an
attractive package wrapper design.
Packaging has a positive influence on
my buying behavior.

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