A Study on Consumer Decision Making of Canned Foods Purchases in Seri Iskandar Influenced by Packaging

Table of Contents

1.0 INTRODUCTION

2.0 PROBLEM STATEMENT AND QUESTIONS
2.1 PROBLEM STATEMENT (QUESTIONS)

3.0 OBJECTIVES OF THE STUDY

4.0 LITERATURE REVIEW & FRAMEWORK

5.0 HYPHOTESES AND QUESTIONS

6.0 METHODOLOGY (SAMPLING/INSTRUMENT/DATA COLLECTION & DATA ANALYSIS)
A. SAMPLING
B. INSTRUMENT
C. DATA COLLECTION
D. DATA ANALYSIS

7.0 SIGNIFIANCE OF RESEARCH

8.0 ACTION PLAN

9.0 REFERENCES

1.0 INTRODUCTION

Consumer decision making is very familiar in business matter especially in marketing scope. Every person in this world has the right to make decision when purchasing a product or goods. Consumer decision making can be identified as a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use (mandalina landy, 2009). People will identify their needs and make decision making to purchase something. It determined by psychological and economic factors. Nowadays, communities are too busy with their daily routine such as working, studying and so on. Regarding these matters, communities will purchase something that gives convenient for them whenever they are in hurry. In order to overcome the barriers, so they usually purchase groceries especially canned foods to cook because it is less time consuming. Normally, attractive packaging of canned foods will be chosen. Attractive packaging can influence people to purchase the products.

This research utilized a focus group methodology to understand consumer decision making toward canned foods and how packaging elements can affect buying decisions. Most impulse buying occurs because of product display, and attractive packaging plays an important role in product display. Packaging seems to be one of the most important factors in purchase decisions made at the point of sale (Prendergast, P.G,, Pitt, 1996). Previous studies have indicated that packaging is a marketing communication vehicle (Silayoi, P. and Speece, M, 2007) used to capture consumer attention (Thalhammer, R.R, 2007). Other researcher also defined packaging as the enclosing of a physical object, typically a product that will be offered for sale. It is the process of preparing items of equipment for transportation and storage and which embraces preservation, identification and packaging of products (Prof. Dileep Kumar M, 2006).

Previous studies have further suggested that visual package elements play a major role in affecting consumer buying decisions, especially in low-involvement products. (Silayoi, P. and Speece, M, 2004) Low-involvement goods refer to the category of products that was purchased routinely and without much thought, searching, or purchase time (Sehrawet, M. and Kundu, S.C., 2007). In general, canned foods included in low-involvement goods because communities purchased canned foods routinely. Not to forget, the focus group for this research will be conducted in Seri Iskandar, Perak. Majority of residents in Seri Iskandar are students and workers so they need something that convenient to cook.

From roughly observation of the researcher, residents in Seri Iskandar purchased canned foods which are convenient for them in the meantime the elements of packaging on canned foods that affect consumer decision making. Researcher found that “canned foods” refer to foods canned in liquid. Dry pack canned goods are not included. In addition, canned foods are safe alternatives to fresh and frozen foods and help meet dietary needs and avoid preservatives (Brandon Jahner, 2008).

2.0 PROBLEM STATEMENT AND QUESTIONS

Many previous researchers said that packaging of canned foods affect to various perceptions of customers before they purchase it. Somehow, nowadays there are many factors that can influence people to make decision on purchasing canned foods. Sometimes the packaging succeeds to influence them to purchase and sometimes the packaging failed to influence customers due to several problems. All the problems that occurred on packaging of canned foods will influence people not to purchase it even though it is just a small matter. If there is no problem on the packaging of canned foods, people will choose to purchase it.

In Malaysia, most of canned foods industries tried hard to produce the best packaging for their products. Even though the industries have tried their best to influence customers, but they also need to know on what type of packaging for canned foods that would be customer choice. This is important for canned food industries to attract customers by influencing them with the packaging. If the industries of canned foods can influence people by their packaging, it means the company knows the needs and wants of customer when choosing the type of canned foods. Anyhow, there are several barriers happened to consumer when purchasing canned food in Seri Iskandar.

Usually, people will easily get annoyed with the cluttered design on the canned foods. Some people might think variety design on the canned foods is attractive but some people will think otherwise. Cluttered packaging becomes superfluous or evens a burden for the customer and will be quickly discarded or a least tucked away where it won’t be seen. (Krystian Majewski, 2008) In addition, the product information also leads to consumer decision making of canned foods. The lack of information on the packaging makes people would not purchase it. Normally, people want to know the complete information of the canned foods before purchasing it. Other than that, consumer also faced another problem when choosing the canned foods because the content itself. Sometimes the big size of canned foods only has small quantity of content inside it, so it would be difficult for customer to choose. They were not worth buying canned foods that quantitative slightly but large size.

2.1 PROBLEM STATEMENT (QUESTIONS)

1) What are the factors that can influence consumer decision making of canned food purchases based on packaging?
2) What are the elements contribute to product information, graphic and size and shape of canned foods?
3) How the factors of packaging on canned foods help consumer to purchase?
4) How to analyze perception of customer towards the packaging usage of canned foods?

3.0 OBJECTIVES OF THE STUDY

According to (Dr. Jayesh Patidar, 2013), research objective are the results sought by the researcher at the end of the research process. As example, what the researcher will be able to achieve at the end of the research study. The objectives of a research project summarize what is to be achieved by the study. The objectives should be closely related to the statement of the problems. It is also a concrete statement describing what the research is trying to achieve. In this research, the objectives will be divided into two which are general and specific objectives in order to achieve the result at the end of research study. These general and specific objectives expect to achieve by the study in general terms and short term in the meantime narrow in focus.

General – To investigate consumer decision making on canned foods purchases in Seri Iskandar.

Specific:

- To identify the effectiveness of product information on canned foods.
- To analyze the suitability design at the outside of canned foods.
- To analyze the content inside the canned foods.

4.0 LITERATURE REVIEW & FRAMEWORK

Many factors can influence the packaging of canned foods purchases among residents in Seri Iskandar. In this research, the researcher investigates on the problem occurs due to packaging of canned foods which can influence consumer to purchase. There is a little bit doubt on product information, graphic and size and shape of canned foods purchases. Thus, packaging plays important roles to influence people to purchase the products. On previous study, a researcher described that even packaging has become an important marketing tool for many consumer products in a competitive business environment, relatively few studies and little interest has been directed towards the theoretical work in the marketing literature. (Bo Rundh, 2009) The packaging of canned foods is a crucial factor in the decision making process because it communicates to consumers. Below is the theoretical framework that consist independent variables and dependent variable which related to produce finding on the research.

Theoretical framework: Figure 1: Theoretical framework model

illustration not visible in this excerpt

Independent variables

Product information

Other researcher found that some consumers are paying more attention to label information, as they become more concerned about health and nutrition (Coulson, N.S, 2000). The researcher sees that majority of consumers are involved in the product decision and use package information extensively when purchasing canned foods. This research aims at forming a better understanding at the link between packaging of canned foods and consumer decision making. In addition, (Madden, J.T., Hewett, K., Roth, M.S, 2000) supports the statement above which is 90 percent of people agreed that nutritional information panels should be laid out in the same way for all food products so that they are easy to understand quickly. However, other researcher stated packaging information can create confusion by conveying either too much information or misleading and inaccurate information (Pinya Silayoi, Mark Speece, 2004). This problem happens because most of the manufacturers use small fonts, dull font type and writing styles that makes consumer confuse to choose the canned foods. The less attention on the product information of the canned foods could produce relatively less value with consumer who viewed the canned foods packaging as low involvement products. Thus, the researcher finds that manufacturers should provide clear, detail and precise information on the canned foods packaged.

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