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THE EFFECT OF BRANDING AND PACKAGING OF LOCALLY MADE COSMETIC PRODUCTS ON THE BUYING DECISION OF CUSTOMERS. A CASE STUDY OF COSMETIC PRODUCTS IN KUMASI, GHANA

ABSTRACT

Much has been said in the academic community on the importance of packaging from the producer’s perspective (manufacturers, retailers, product designers etc.). However, from the perspective of the final customer, little has been done in terms of packing. The goal of this research is to focus on the consumer and see how the efforts put into product packaging technologies for locally created cosmetics affect consumer buying decisions. The evaluation of visuals (color and artwork), package dimension (shape and design), and information (labels), and how these major aspects of packaging influence consumer purchase decisions of locally created cosmetic items, were the three particular objectives of this study. Finally, these elements should reveal a broad view of the situation. The population for this study was gathered from hair saloons in the Kumasi Central Market (KCM), and the research used a descriptive design. A probability sampling design (stratified and systematic sampling) was used to pick a sample size of 100 respondents, who were then given questionnaires to help with data collection. The data was then analyzed and interpreted to learn more about the relationship between product packaging and consumer purchasing decisions for locally created cosmetics. To determine the said association, a study of the responses received by the sample population was exposed to several measures of description and inference, finally determining the research’s direction. In terms of statistics, this study has validated the research’s goal by demonstrating the presence of a link between product packaging and customer purchasing decisions for locally created cosmetics. Firms in the cosmetic industry are justified in their efforts to design attractive packaging in order to attract consumer interest and evoke purchase decisions, according to the findings, which support the existing relationship between product packaging and consumer buying decision of locally made cosmetic products. The packaging factors have demonstrated their importance in expressing product quality and characteristics in a competitive manner, both individually and together. An scholarly investigation of the role of package technology on customer purchasing decisions is one of the study’s primary recommendations. An scholarly investigation of the role of package technology on customer purchasing decisions is one of the study’s primary recommendations. Alternatively, other commodities that rely heavily on packaging for marketing activities, particularly those that are excluded from certain promotional efforts, such as alcoholic beverages and tobacco-related brands, should be investigated. Other marketing aspects that stood out in this study, aside from packaging, were the effect of positioning techniques on customer purchasing decisions.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Packaging can be described as “any products made of any natural material to be used for the confinement, protection, handling, distribution, and preservation of goods from the manufacturer to the user or customer,” according to the Northern Ireland Department of the Environment (Department of the Environment, 2010). This definition contains a kernel of truth: the package is a product, and as such, it should be distinguished from the product it contains. Consumers, on the other hand, regard a package as a product independent of the actual material it contains; theirs is a subconscious assumption of a synonymous nature between the box and the thing contained within. As a result, it would imply a link between a highly efficient and well-designed package and a superior-quality product, however studies have rarely isolated the source of product pleasure to the product’s packaging (Hess, Singh, Metcalf, & Danes, 2014). Consumer purchasing decisions, on the other hand, have long been regarded as a volatile concept that is difficult to measure and anticipate. The weight of a product’s success has gone to the marketer, who uses consumer behavior to produce a ‘appealing’ package, then manipulates packaging aspects to turn the formerly ‘volatile concept’ into a predictable and economically measurable conclusion (Levin & Milgrom, 2004). The cosmetic sector in Ghana has seen an increase in the number of goods available in recent years. Every time a customer walks into a retail store looking for these things, they are spoiled for choice, from fragrances to skin care lines. Despite the existence of big worldwide brands such as Revlon, L’Oreal, Estée Lauder, Nivea, Avon, and Oriflame (Rooney, 2011), there is still fierce competition from local competitors vying for a slice of the market (Situma, 2013). Gone are the days when a box was only a container that protected a product during various phases of the supply chain (Kotler & Armstrong, 2010); currently, it is also the final marketing communication instrument that a company can use (Kotler & Armstrong, 2010). Because of the fierce competition in this market, local players have been obliged to invest in more appealing and inventive packaging in order to appeal to consumers. As a result, a package is critical in assisting a company’s positioning strategy as it targets the consumer market. The product packaging strategy that is used has a lot to do with how the consumer perceives the value of the product (Ampuero & Vila, 2006). Because the consumer is confronted with so many products every time they walk into a store, it’s critical that the package stands out among the sea of identical products and is appealing enough to entice them to make a purchase. The package should be convincing, with all of its aspects working together to appeal to the consumer’s senses. Ghanaian cosmetics customers have access to a diverse choice of goods that are attractively designed and packaged to appeal to their preferences. When it comes to the aesthetics, proportions, and information included in the package, local businesses are bringing unique components of appeal to the table. Attempts are taken to ensure that the package meets the changing nature of consumer preferences, including how, when, and why they use the product.

STATEMENT OF PROBLEM

McKinsey Global Institute, McKinsey and Company’s economic research arm, published studies in 2010 that indicated Ghana’s potential as a 21st-century economic refuge. Ghana’s aggregate Gross Domestic Product (GDP) was $1.6 trillion in 2008, with combined consumer expenditure estimated at $860 million and 52 cities in the region with a population of at least one million. Within a decade of 2008, these figures are expected to rise to a combined continental GDP of $2.6 trillion, driven by four key industries (consumer-based products, infrastructure, agriculture, and resources), with consumer spending reaching nearly $1.4 trillion and half of Ghana’s population living in developed cities.

Nonetheless, it is hard to overlook the African continent’s economic potential in the global economy. Even more striking is the contribution performed by the local consumer retail sector (which includes the cosmetic business), which grew at a 6.8% annual pace between 2002 and 2007. Ghanaian customers are now better educated and more aware of global trends, and their demand for more value from businesses has resulted in a surge in the retail of consumable goods (McKinsey Global Institute, 2010).

Another dynamic factor at play is globalization and the concept of the global village, both of which have become generally accepted phenomena, infiltrating consumer aesthetics and causing a product’s package to become rather volatile. Ghana’s cosmetic business is up against fierce competition from both local manufacturers and global behemoths that have discovered Ghana as a viable investment opportunity and are putting their products and services closer to Ghanaian consumers (Situma, 2013). With the rise of competition, experts have recognized the impact of product packaging on corporate capital and human labor investment. However, the question that has motivated this research is if the effort put into a cosmetic product’s packaging influences the Ghanaian consumer’s decision to buy cosmetics.

OBJECTIVES OF THE STUDY

To investigate the impact of cosmetic packaging on Ghanaian consumers’ purchasing decisions for locally produced cosmetics.

1.4 Research Objectives in Detail

1.4.1 To determine the impact of graphics (such as color and artwork) on consumer purchasing decisions.

1.4.2 To investigate the impact of package dimensions (such as form and design) on customer purchasing decisions.

1.4.3 To determine the impact that information on a package has on a consumer’s purchasing choice.

RESEARCH QUESTIONS

H01: There is no link between the attractiveness of a package’s color and its artwork and consumer purchasing decisions.

H02: There is no link between the attractiveness of a package dimension and customer purchasing decisions.

 

H03: There is no statistically significant link between product information on the box and the purchasing relationship of customers.

 

H04: No statistically significant link exists between product information and graphics and customer purchasing decisions.

 

H05: There is no relationship between product branding and packaging and consumer buying decision of locally made cosmetic products

SIGNIFICANCE OF THE STUDY

The purpose of this study is to see if there is a link between a product’s package and a consumer’s choice to buy based on the package. The following people will benefit from the information gleaned from this study:

1.6.1 Business Organizations

Cosmetic producers and dealers with a presence in the Ghanaian market, or who intend to do so in the future, who are interested in market data on product packaging and consumer purchasing decisions that might help them plan their strategies.

1.6.2 Educators

Every study is of benefit to the realm of research in terms of knowledge addition and expansion. This study would be of benefit to researchers seeking information on marketing strategy of the cosmetic market in Ghana, with a focus on product packaging and consumer buying decision.

SCOPE OF THE STUDY

This study will investigate the features of product packaging that may influence customer purchasing decisions for cosmetic items accessible in Ghana. The survey will be conducted largely in Kumasi, Ghana, among respondents of Kumasi Central Market, Kumasi Ghana, and as a result, it may encounter a broad geographic representation of Ghanaian youth local cosmetic consumers. Another constraint worth mentioning is the sample population’s demographics in terms of age and income, as responders will often be in their twenties and have a moderate income.

LIMITATION OF THE STUDY

The purpose of this study is to look at the impact of branding and packaging, but it is limited to locally produced goods. Cosmetics were the only domestically produced products. The purpose for this delimitation was to make brief and exact conclusions about individual products’ branding and packaging effects. In addition, the Kumasi market was chosen from among numerous markets in Ghana due to its size. This is because the market offers the best opportunities for this research and is easily accessible to students. Finally, the focus of this research was on branding and packaging rather than other forms of product promotion. It’s also worth noting that the conclusions of this study could not be applicable to non-cosmetic goods in general.

DEFINITION OF TERMS

The following are some of the terms used in this document and what they pertain to:

Packaging is the art and science of creating a container to transport a product (Department of the Environment, 2010).

The buyer’s/decision user’s to turn purchasing intent into a purchase decision (Miller , 2009).

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