CHAPTER 1

INTRODUCTION

1.1 Background of the study

A cereal is a family breakfast food, designed to be a convenient and quick nutritious

meal that requires minimum preparation time. It can also be taken as an in-between snack or
for lunch or dinner. Most people will consume it as a breakfast meal. Its versatile nature
provides options to enjoy it hot or cold, usually mixed with milk, water, yoghurt or just eaten
dry. Cereals are produced from a wide range of grains such as maize (corn), wheat, rice, oats
and barley.

Purchase decision is the thought process that leads a consumer from identifying a need,
generating options, and choosing a specific product and brand. Besides that, purchase decision
making is based on consumer perception, whether it is based on packaging, ingredients or price.
Packaging is a whole package that becomes an ultimate selling proposition, which stimulates
impulse buying behaviour. Packaging increases sales and market share and reduces market and
promotional costs. According to Rundh (2005) package appeals consumer’s attentiveness
towards a certain brand, increases its image, and stimulates consumer’s perceptions about
product. Furthermore, packaging conveys distinctive value to products (Underwood, 2003;
Silayoi, & Speece, 2007), packaging works as an instrument for differentiation, and helps
consumers to decide the product from wide range of parallel products, packaging also
stimulates customer’s buying behaviour (Wells, Farley & Armstrong, 2007). The decision is
based on their hand.

Wells et al. (2007) said, packaging was used as a means of protecting the product from
damaged and making sure that the product could be consumed without being smudge during
storage and selling. Besides that, packaging also acted as marketing tool to build and fortify
brand equity. The dynamic nature of the marketing environment has propelled packaging to
have other functions which also act as powerful marketing tools. According to Kotler et al.
(2008), packaging has become most important and powerful tools for promoting products,
attract attention of prospective consumers and communicate the value of brand to the target
market.
 The physical appearance of product can strongly influence the perception of observer.
By through physical look the observer can imagine that the product are good or bad based on
their appearance. Most of the companies create the design of packaging according to consumer
nature. (Adebanjo, 2000). However, Keller (2008) points out that packaging provides
consumers with a visible logo that allows them to quickly know the product inside the package.
Packaging acts as a cue and a reliable source of brand information. It conveys information on
pricing, quantity, quality, and also provides information regarding ingredients and direction of
use. Companies now concentrate on customers demand and use attractive packaging according
to the demand of the customer. (Silayoi, Malai, Rajatanavin, & Speece, 2003).

This research will concentrate on hypermarket that are located in Kuantan, Pahang, to
study the impact of breakfast cereal product packaging on consumer’s purchase decision. The
main reasons to conduct this research are to identify the consumer’s purchase decision based
on the colour, convenience and aesthetic towards the breakfast cereal packaging. This study
delivers the understanding on the relationship between colour, convenience, and aesthetic of
the breakfast cereal packaging. The purpose of this research is constructed on hypothetical
analysis of packaging components and their influence on consumer’s buying behaviour
decision. This empirical study uncovers the features, which are having the eventual influence
on consumer’s choice, when multiple and different choices are available.
1.2 Problem Statement

Gershman (1987) summarizes packaging with three expressions: packaging is the least
expensive form of advertising; every package is a five-second commercial; and the package
itself is the product. However, there is no agreement on classifications of packaging attributes
as well as the research methods used to determine the packaging’s impact on consumer buying
behavior. (Kuvykaite et al., 2009) In addition, the previous researches did not provide common
answer regarding the impact of packaging attributes on consumer’s purchase behaviour
(Kuvykaite et al, 2009; Madden, Hewett and Roth, 2000; Vila and Ampuero, 2007). For that
reason, it is necessary for researcher to look into this issue in more detail as to identify which
attributes of a packaging having the most influence upon the consumer’s purchase decisions.

Besides that, there is quite a lot of debate about whether consumer purchase behaviour
is consistent across cultures. Many industry observers, AC Nielsen, a leading international
consumer research company, believe that consumers worldwide are likely to have roughly
similar response to many FMCG, despite cultural differences (The Nation (Bankok), 2002).
Not all observers, however, believe that consumer purchase behaviours will converge – rising
incomes and extensive competition give consumers more ability, not less desire, to consume
according to their own particular cultural preferences (Mooij, 2000). Some believe that many
basic issues are likely to be similar across cultures, while specific details such as response to
particular colors or themes may be interpreted differently in different cultures (Walle, 1997).
To achieve the communication goals effectively and to optimize the potential of packaging,
fast moving consumer goods (FMCG) manufacturers must understand consumer response to
their packages, and integrate the perceptual processes of the consumer into design (Nancarrow
et al., 1998).

Therefore, the aim of study is to determine how packaging influence on consumer

purchase decision in perspective of breakfast cereal where such study in Kuantan, Pahang is
still lack of .This research also reveals the attitude and beliefs of people about the packaging
they prefer as well as they do not prefer. It will also assist in finding out the contributing factors
in their choices as well as the decisive factors in this regard. The research attempts to get the
answer as to why consumers become loyal to certain cereal brands, whether they are influenced
by the colour, convenience or aesthetic packaging. The composite measures of consumer
purchase involve an integration of behavioural and attitudinal approaches.
1.3 Research Objectives

The role of packaging is getting dynamic as a marketing tool. It is essential for marketers to
study more on packaging and its characteristics in detail to gain better understanding which of
the characteristics is the most important factor that can influence the consumer’s purchasing
behaviour. The objectives of this research are as follow:

1. To investigate the relationship between colour of packaging and consumer purchasing

decisions.
2. To investigate the relationship between aesthetics of packaging and consumer
purchasing decisions.
3. To investigate the relationship between convenience of packaging and consumer
purchasing.

1.4 Research Questions

There are three main questions listed in the study:

1. Does colour of packaging affect the consumer purchasing decisions?
2. Does aesthetics of packaging affect the consumer purchasing decisions?
3. Does convenience of packaging affect the consumer purchasing decisions?

1.5 Scope of the study

This study will be conducted to determine the consumer purchase decisions as perceived in
breakfast cereal in product packaging. There is to identify what are the types of packaging
characteristics, which influenced consumer to purchase the breakfast cereal. Mostly consumer
purchase the product based on its packaging, because of that the requirement of researcher is
to identify what are the consumer decisions. So, researcher choose hypermarket at Kuantan,
Pahang as the target respondents for this research. There is because researchers’ limitations to
do massive collecting sample on whole Malaysia.
1.6 Significance of the study

The findings of this study can be a reference to a housewife, people that busy with work life
and fanatic fans of breakfast cereal. Since majority of the previous packaging studies were not
locally-based which is Malaysia, besides that on the different country they have different
opinion because of different culture. The findings of the study able to reflect the consumer
buying decisions in Kuantan. In other words, the results of this study will provide a new insight
to the local marketers towards the impact of packaging characteristics on consumer’s buying
decisions of breakfast cereal.

1.7 Chapter Summary

On this chapter, it describe the basic and overview of the study to give the readers a clear
picture of the characteristics that are affect the consumer purchasing decisions on packaging of
breakfast cereal. Firstly, it begin with the research introduction about background of the study,
the problem statement, the research objectives, research questions, scope and significance of
the study were covered in this chapter. Next, all of the variable and relationship of variables
under study will describe and discuss further in Chapter 2.
 CHAPTER 2
LITERATURE REVIEW

2.1 Introduction

In this chapter, researcher will reviewed past literatures to identify variables that may
have direct or indirect relationship with the dependent variable “purchase decisions”. These
variables are derived from past studies and journal articles that had proved their existences and
impact on purchase decision.

2.2 Purchasing decision on packaging

Purchasing decision on packaging have a five stage process to buy a particular product.
Previous research on Lake (2009) say there is a steps of decision making process through
consumers, which are on the first stages is recognition from consumer, and then, research
details of the product, on the third stage is the estimation from consumer, they evaluate based
on past experience or knowledge. For stage four is the purchasing step, where consumers is
actually delayed the purchasing or immediate purchase the product. The purchasing decision
steps, stated that it is not only gain consumer attention.

Besides that this is the evaluation from consumer whether they willing to repeat the
purchasing that give a positive impact on their mind and also convenient for them. In the studies
of (Metcalf et al., 2012) convenience is a suitable design of packaging for consumer because it
is not burden to use and durability to handle the product.
2.3 Colour of packaging

The characteristics that need to identify are the type of packaging colour that can attract
consumer to purchase. Based on Hynes (2009) statement, colour is an important element of
corporate and marketing communications. It encourages to build up the moods and emotions
on consumer perception. Other than that, it can helps to differentiate the competition.

Mostly, colour is an important part to show the identity of a certain brand image because
according to Bottomley and Doyle (2006) colour communicates the desired brand image.
Besides that, it will remain in a consumer mind.

Colour is a simple way to unify your brand across all communications with consumers.
As we know the choice of colour or graphic is important because the more attractive colour or
graphic the more it can influence the purchasing behaviour, so the type of colour that should
be use should bright colour present as a happy symbol, white show innocence, purify and
cleanliness. Furthermore, black represent strong, rough, exclusiveness and expensiveness, red
is passion and desired , yellow is exciting and green denotes life, nature and energy, and is
often involved with eco-friendly products. While the type of colours packaging earlier were
based on random choice, colour has become as a key matters in packaging design today and
mostly of the companies often ask experts to assist in these decisions (Shovlin, 2007)

2.4 Aesthetic packaging

On the aesthetic packaging, in the design process marketers and designers must take
count on consumers past experiences and what they desired it is to understand how the design
elements can attract consumers to notice of the messages on the packaging that need to be
delivered. Meanwhile it is able to evaluate packaging design and labelling for effectiveness in
the communications effort. Rettie and Brewer (2000) claimed that the package design has
become a basic communicating significant brand attributes and as such it can be employed as
competitive tool.
 Aesthetic known as beautiful, good taste and graphic that suitable for a box of cereal
product. Furthermore, attractive design can gain the attention from consumers and build strong
competitiveness in the target market. According to Philip Kotler (2005) product design is very
important to marketers.

Too involved in the marketing field, should make a change design of product package
because it is a critical ingredient for build the fairness of the brand over and above to influence
consumer purchasing decision. A past review from Silayoi and Speece (2004) rapid purchase
decisions come from the unique of design packaging.

2.5 Convenience packaging

Convenience packaging also play an important role for consumer purchasing decisions
on packaging. Besides that it helps the consumer quickly find the brand and specific product
or other variant they want, making their decision easier and faster.

The packaging should be more friendly with consumer, for example, the material of
box is used from material that more easily to recycle and aware towards environment. Other
than that, make sure the material of boxes or plastic that keep the cereal safe and fresh from
any harm. (Gonzalez, Thorhsbury, & Twede, 2007) stated consumers have become more and
more increasingly discerning and the constant variations in demand mainly involve healthier
choices, convenient packaging and unique flavours.

Besides that, implement the new packaging for the cereal market that more convenience
to use and reduce environmental harm. Using a reseal flexible pouches can decrease solid waste
generation, greenhouse gas emissions, and have lower energy consumption. This suitable for
dry goods, the reach of reseal able flexible packaging can lengthens the cereal life expectancy.
(Gonzalez, et all 2007) also argue environmentally-friendly and conveniently packaged make
consumers are more concerned whether the products are able to contribute sustainable
development.
2.6 Chapter Summary

As a summary, this chapter discuss about the dependent variable and independent
variables. On the literature review, all the discussion are based on the past studies including
journals and article that related with the dependent variable and independent variable of this
research. All the article and past studies had proved their existences and impact on the customer
purchasing decision.