Santa Barbara National Comprehensive High School

Senior High School

Santa Barbara, Iloilo

Purchasing Action of Educators towards Consumer

Packaged Goods

A partial fulfillment in the subject

Practical Research II

Presented by:

Janelle Donesa

Vernny Kyle Pelpinosas

Shakira Cupita

Ivy Dordas

Marja Paguntalan

Presented to:

Mrs. Claire S. Juarez

Practical Research Teach
 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

Chapter 1

Introduction

Background of the study

In economics, goods are defined as any acquirable commodity that satisfies a want or

need. This study uses the term “goods” to describe consumer packaged goods or CPGs. According

to Investopedia, CPGs are items that are used by consumers on a daily basis and have a relatively

short shelf-life. Toiletries, food, beverages, and clothing are some of the prime examples of CPGs,

also known as fast-moving consumer goods.

The CPG market is highly competitive with larger companies such as Procter and Gamble,

Unilever, and Nestle dominating the industry. In North America, the CPG industry is one of the

biggest and most successful industries amounting to 635.8 billion US dollars in sales as of 2015.

Even the Philippines, despite being a disaster-prone country, is expected to expand their CPG

industry by 8.3% over 2013-2018. Rising global population and purchasing power are accredited

with the continued growth of the CPG market. However, there ae a number of problems that

remain a hindrance to it today. As it is, marketing in the CPG industry is extraordinarily

challenging. It faces a buyer’s market where the number of available products far outnumber the

customers who are willing to buy them. For example, the average consumer can choose whether

to buy Surf, Tide, Ariel, or any other detergent brand to use for washing their laundry. The broad

range of options result in low brand loyalty among consumers and remains a constant conundrum

for CPG companies. In addition to this, the growing digitalization o the free market and the

increasing demand for fresh, organic products by health-conscious consumers will also

undoubtedly change the way CPG companies market their products. This is where strategic

product packaging steps in.

A product’s packaging is a critical factor to its market success. Beckley, et al (2017) relates

that the packaging’s durability, design, and convenience are the main determinants of customer

interaction with the said product. Product protection must be foremost in any kind of packaging,

design must convey the product’s personality, function, and key components, and convenience
 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

must never be overlooked since a product that is difficult to consume will perform poorly in sales.

Indeed, a product’s packaging plays a very important role in determining the success or failure o

a band. Nevertheless, one cannot place the market success o a brand entirely on its packaging.

Advertisements, changing trends, and even government intervention also affects brand sales

performance. Be that as it may, the effect of a product’s packaging on sales is, without a doubt,

a major consideration that is worthy of research and study.

Research Paradigm

Statement of the problem/Objectives

This study aims to discover what aspects of CPG packaging cause it to attain more

purchasing action from educators. It also seeks to answer the following questions:

1. How much does packaging impact consumer’s buying decision

2. Does an “improved” packaging boost sales?

3. What aspects of CPG packaging increases consumer involvement?

 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

Definition of terms

Term Conceptual Definition Operational Definition

-The act or instance of buying -a respondent’s decision of

Purchasing Action (The Free Dictionary, 2018) which product he/she would
theoretically buy with regards to
its packaging
-one skilled in teaching; a teacher -Senior High School teachers of
Educators (Merriam-Webster, 2018) Santa Barbara National
Comprehensive High School

-the enclosing of something in a -the outer covering of a

Packaging container or covering Consumer Packaged Good(CPG)
(Merriam-Webster, 2018) that plays a part in its overall
marketability
-items used daily by the average -various products with improved
Consumer Packaged consumer (food and beverages, packaging but similar prices
Goods (CPGs) clothing, tobacco and household especially those advertised as
products) CPGs can also be called having a “new look and same
fast-moving consumer goods great taste”
(Investopedia, 2018)

Significance

This study will benefit businesses, entrepreneurs, consumers, and future researchers.

There are many corporations who fund their own market researchers expecting results that

would give them an advantage in marketing their product. Similarly, start-up entrepreneurs who

create their own products may need a statistical and objective basis for developing the packaging

of their goods. The data that this research will gather will serve not as a basis of their decisions,

but as an external influencer of their packaging developments.

The general consumer population will also benefit from this study by being made aware

of the different marketing strategies and tactics that marketers perform in order to increase sales.

Some product packagings are innovated to have a sleeker and more streamlined shape. While
 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

the majority of consumers see this as an aesthetic quality, little do they know that they are being

subtly deprived of value. New, streamlined packagings are sometimes a technique to sell a lesser

amount of product for the same price. Knowledge of this and other packaging techniques can

cause consumers to be more observant and reasonable buyers.

Lastly, this study will benefit future researchers by being a source of information

concerning the topic of CPG packaging. While the Internet provides many researches on

marketing and the like, there are few published marketing researches that are localized in Santa

Barbara, Iloilo. Students, especially marketing students in Santa Barbara, will find the findings of

the study highly relevant since it was conducted in their own home town. Nevertheless, the

research will benefit students despite their locality as this study is objective, informative, and

easily replicable in any setting. Teachers, tutors, and other researchers who are interested in

CPGs may also use this study as reference for their own research.

Scope and limitations

The ultimate goal of the study is to empower entrepreneurs and business with the

knowledge of what aspects of CPG packaging cause educators to prefer one product from

another. The researchers will present the respondents with four variants of the same brand with

prices that are almost similar, but each with different packaging. That said, the researchers will

focus on the purchasing actions of Senior High School teachers of Santa Barbaa National

Comprehensive High School in Santa Barbara, Iloilo. The entire population of 53 Senior High

School teachers will be requested to answer a questionnaire regardless of their age, gender, or

financial capacity. The data will be gathered in the span of one week due to the minimal nature

of the sample size.

 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

Chapter 2

Review of Related Literature

Consumer Packaged Goods (CPGs) are items used daily by the average consumer

(Kenton,2018). The goods that make up this category are ones that need to be replaced

frequently, compared to those that are usable for extended periods of time. While CPGs represent

a market that will always have consumers, it is highly competitive due to high market saturation

and low consumer switching costs. Some basic examples of CPGs are food and beverages,

clothing, tobacco and household products. According also to Kenton, CPGs can also be called fast-

moving consumer goods and it generally have a short lifespan. They are intended to be used

quickly and are often sold at a relatively low cost. As the name implies, they usually come in some

form of packaging that can be displayed on the shelves of retail businesses.

Typically, CPG merchandise is sold by retailers in physical brick and mortar stores and

packaging is designed to differentiate a product from its competitors on a pharmacy, grocery or

big box store shelf (Rouse,2005). Because shelf space is a finite commodity, the CPG market is

highly competitive. Until recently, it’s been difficult for manufacturers to take advantage of the

internet and sell CPGs through e-commerce channels.

The relative influence of packaging, labelling, branding and the sensory attributes on liking

and purchase intent: Consumers differ in their responsiveness. Overall, label style and brand

evaluation were the strongest drivers for informed liking followed bu liking in the blind condition.

Purchase intent was influenced directly only by informed liking and price evaluation; the effect of

the extrinsic and intrinsic cues is mediated through informed liking. A latent class regression

resulted in three consumer segments that differ in the responsiveness of their informed liking to

the different product charactgeristics. Younger, inexperienced consumers utilized a mix o vaious

cues, wine experienced consumers based their evaluation mainly on grape variety and preference,

and older frequent wine consumers were influenced most strongly by brand and packaging. These

findings provide insights into the relative impact of packaging.

Buying products has become an integral part of our life. A research shows that more and

more people have a constant urge to buy something, which grows to the level of obsession
 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

(Glynska, 2016). According to psychologists, the people with lower self-esteem tend to buy more

products. This is mainly because the ritual of shopping releases tension and negative emotions,

which might be good at times, but not when it happens too often (Hayes, 2017). In a sense, We

are all impulsive buyers as buying food or any other type of entertainment triggers good emotions

and makes us feel better. However, quite often we might regret the purchase later having realized

that we did not need the things we have bought and had wasted the money.

Let us take a look at the common buyer’s logic. “Spending less on products means you

are saving more money.” It makes sense, but this may not be true to all buyers and to all

purchasing decisions. The decision between these aspects of a transaction is cucial to maximizing

money spent (Gitlen, 2016). Also according to Gitlen, we have two sides of the dilemma which

are the quality and the quantity of the product. He said that quantity means more, but due to

lower quality, the aforementioned product may not last as long or as efficient as its counterpart

product which is more expensive, but higher in quality. Thus, quantity-influenced purchases may

sometimes mean less value for the consumer. Quality buying, on the other hand, switches the

emphasis on the lowest cost o the product’s efficiency or long-term product lie.

Quality is an important part of the supply chain, whether it is quality inspections during

the manufacturing process, quality checks before goods arrive to the customer, or checking the

quality as raw materials and parts entere the factory (Murray, 2018) which means that before

any part or raw material is used in finished goods or products are delivered to a ustomer, it is the

responsibility of the purchasing department to ensure that the materials that are used ae on the

specifiend quality. According to Murray, to identify the process and the quality of information

about the item to be sourced such as: Physical Description, Dimensional Measurements, Chemical

Composition, Performance Specifications, Industrial Standards and Brand Name.

Instead of putting emphasis on quantity, placing the emphasis on quality yields moe

benefits for the consumer that are impossible when going through the other path. In a nut shell,

buying or quality means spending more for a product that is in a better initial condition due to

better design or some other factor (Penn, 2014). A better product from the stat is designed to

last longer and perform more efficiently (Kersetz, 2014).

 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

There are many differences in approach when businesses are deciding what brands to

market, and one of the most crucial is deciding exactly what scope a brand should have. The

proper "brand plan" is essential given an erosion of brands and the flood of new brand

introductions. Further, the growth in private labels has created both opportunity and challenges

for consumer-packaged goods manufacturers. But then, companies continue to search for new

ways to engage customers and build deeper customer relationships. Companies are no longer

competing on functionality or price alone. They must now deliver superior products, a unique

customer experience and the emotional connection that product packaging, design and style can

deliver.
 Santa Barbara National Comprehensive High School
Senior High School
Santa Barbara, Iloilo

Chapter 3

Methodology

Context and participants

The study is quantitative in nature. It uses the correlational approach in which the

researchers measured two variables, namely, the packaging and educator’s purchasing action,

then assesses the statistical relationship between them with no influence from extraneous

variables such as price or quality. The sample size is composed of the entire population of 53

Senior High School teachers in Santa Barbara National Comprehensive High School. The research

will be conducted in Santa Barbara, Iloilo in the local high school’s campus.

Instruments

The researchers utilized a pre-made questionnaire that compared four variants of the

same product, with relatively similar prices. The said variants are Coca-cola products that differ

in their packaging: the type of material used, the shape of the container, and the packaging’s

graphic designs.

Data collection

Respondents simply answered the questionnaires which were then collected by the

researchers on the same day they were given.

3.4 Data analysis

The gathered data will be encoded quantitatively. The data from the questionnaires will

be analyzed, summarized, and presented with emphasis on the key points—information that

directly answers the research questions. Irrelevant information and repetitive statements will be

excluded from the final draft.