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Packaging on Consumer Behaviour

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Role of Packaging on Consumer Behaviour
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  • U P P S A L A U N I V E R S I T E T Department of Business Studies

    Business Administration D-level Master Thesis 15 credits, Spring 2011

    2011-06-03

    Socially Desirable Fast Moving Consumer Goods

    A L i tera ture Rev iew on How To Decrease the Gap Between Intention & Purchase Behavior Through Marketing

    Authors:

    Mikael Forsberg Sara-Maria Lfvenberg

    Tutor: Susanne berg

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    Abstract Authors: Mikael Forsberg and Sara-Maria Lfvenberg Tutor: Susanne berg Title: Socially Desirable Fast Moving Consumer Goods A Literature Review on How To

    Decrease the Gap Between Intention & Purchase Behavior Through Marketing

    Keywords Branding, Consumer Behavior, Consumer Value Creation, Decision-making, Differentiation, Eco, Ecological, Environmentally Conscious Behavior, Fast Moving Consumer Goods (FMCG), Green Consumer, Green Marketing, In-store marketing, Marketing, Organic, Purchase decision, Socially Desirable, Value Creation.

    Background and Problem Consumers today are more environmentally conscious than ever. However, it has been found that there is a gap between the consumers intention and actual purchase when it comes to products that there is a social pressure to buy for environmental reasons. The potential for the socially desirable segment is estimated to have potential, but growth seems to be slow. It has been stated that until now, there is not enough research done that take a holistic perspective including several fields of marketing. There is a need to review and combine existing literature in various fields of marketing to investigate how the gap can be decreased and sales increased.

    Purpose The purpose of this thesis is to review and combine existing literature in the fields of consumer value creation, decision-making and in-store marketing. By doing so the authors of this thesis aim to present a theoretical model on how producers of socially desirable FMCG can decrease the gap between the consumers intention and actual purchase through marketing. Decreasing the gap refers to more fully exploit the potential size of the segment and generate more sales. Method A completely theoretical method was chosen for this thesis. To the authors knowledge there has not been done enough specific research to match the purpose of this thesis. A literature review has therefore been conducted within three separate fields of marketing to get a broader understanding of how the gap between intention and actual purchase can be decreased. Based on the extensive literature review, the authors developed ten propositions that formed a model that can be used as the backbone for future theoretical and empirical research. Final Discussion Some highlights of the theoretical discussions earlier in this thesis are presented in the final discussion. The authors suggest that purchase decisions of socially desirable FMCG initially are high-involvement decisions that often are formed outside the in-store-setting. This suggests that more long-term marketing efforts such as brand building in some cases can be more important than in-store marketing when it comes to FMCG that are socially desirable. Symbolic values should be highlighted in branding of socially desirable FMCG because the instrumental differences between FMCG and socially desirable FMCG is limited. It is therefore likely that it is more efficient to focus on consumers self-identity to convince them to purchase socially desirable FMCG. It is also important that producers of socially desirable FMCG provide consumers with clear product information in-store and that the products are easy to find. Based on the extensive literature review, the authors have developed eight propositions that form the model presented in this chapter.

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    Definitions To reduce the risk for misunderstanding of what the authors intend to describe, a short list of definitions of important terms may be followed below.

    Fast Moving Consumer Goods (FMCG) In this thesis, the term FMCG refers to retail goods that are consumed relatively quickly, many of them within a short time period of just a few days. Examples include non-durable goods such as soft drinks, toiletries, and grocery items such as meat, fruits or diary products. FMCGs are products that are characterized as being sold quickly and that have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Generally, the profit per item is relatively small but since they sell in large quantities the cumulative profit can be large. In this thesis it is important to understand the term since the marketing implications might differ from more durable goods.

    Socially Desirable FMCGs Products that are characterized by a social pressure to purchase for environmental reasons are referred to as socially desirable FMCG. The authors do not consider whether the production procedures are favorable for the environment or not. Instead, it is the consumers perceptions of which products that are friendly to the environment that counts. The expression socially desirable is taken from hman (2010). An issue for the reader is that existing literature which deals with the topic are using different expressions. In some literature, terms such as organic or environmental are used. In this literature review, these terms will not be replaced by socially desirable when referring to an article that are using other terms. Only when the authors present their view, the term socially desirable will be used. However, the authors define the expressions organic, environmental, or any other similar words, as socially desirable.

    The Green Consumer The green consumer refers to the environmentally conscious consumer who is buying, willing to or says she will be buying socially desirable FMCG. This definition is used to determine what kind of benefits consumers seek when considering buying socially desirable FMCG.

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    TABLE OF CONTENT Page 1. .INTRODUCTION 05

    1.1 Background 05 1.1.1 The Gap between the Intention of Being Environmentally Friendly 05

    and Actual Behavior 1.1.2 Socially Desirable Products and the Market for Those 06

    High Potential, Slow Growth 1.1.3 What is the Problem? 07

    1.2 Purpose 08 1.3 Delimitations 08

    2. .METHOD 09 2.1 Choice of Method 09 2.2 Collection of Relevant Research Articles 10 2.3 Limitations and Criticism of Sources 11 2.4 Outline of the Study 13

    3. .LITERATURE REVIEW 14 3.1 Creating Value For the Green Consumer 14

    3.1.1 Who is the Green consumer and what Benefits is She Seeking? 14 3.1.2 Branding and Differentiation Creates Value for the Consumer 17 3.1.3 Consumer Confusion over New Market Entrants 18 3.1.4 Discussion: Creating Value for the Green Consumer 19

    3.1.4.1 Propositions 23 3.2 Decision-making Behavioral Aspects 23

    3.2.1 Different perspectives when Studying Decision-Making 23 3.2.2 The Purchase Decision Planned or Unplanned 24 3.2.3 High-Low Involvement in Decision-Making 25 3.2.4 Where the Decision-Making Takes Place 25 3.2.5 Discussion: Decision-Making 26

    3.2.5.1 Propositions 28 3.3 In-store Marketing 28

    3.3.1 Harsh Competition Calls for Improved In-Store Execution 28 3.3.2 Factors that Affect the Consumers Choice of Socially 28

    Desirable FMCG In-Store 3.3.3 Increased Sales through Aisle Placement 30 3.3.4 Discussion: In-Store Marketing 30

    3.3.4.1 Propositions 32 4. .FINAL DISCUSSION 33

    4.1 Approaching a Model 33 4.2 Further Research Suggestions 35 .REFERENCES .APPENDIX 41

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    11. INTRODUCTION . .m In this section, the reader will be introduced to the topic of this thesis and the gap between the

    intention of being environmentally friendly and actual behavior, socially desirable acts and the

    high potential but slow growth on the market of socially desirable products. Furthermore, the

    problem formulation and the purpose of this thesis will be presented.

    1.1 Background 1.1.1 The Gap between the Intention of Being Environmentally Friendly and Actual Behavior

    A Google search for climate changes generates 134 million hits, which is somewhat less than a

    search for Barack Obama but much more than terrorism and Madonna. The concern about

    the environment has become a fundamental economic and political issue across the world during

    the last couple of decades (Peattie, 1992). More and more firms are working on different methods

    on to reduce their environmental impact. Some do it because they truly believe it is the right thing

    to do or because there are costs to save, while others do it because their customers demand it

    (Unga Aktiesparare). In the latter group many firms have developed a range of products that are

    appealing to consumers who think it is important to reduce their own share of negative

    environmental influence. A very high share, 91%, of the Swedish population is aware of the

    climate changes, and about half the population feel guilty when they are acting in a way which

    they believe will have a negative impact on the environment (Naturvrdsverket, 2008). At the

    same time, the consumption of goods and services that are known to be less environmentally

    friendly has not declined - it has increased. For example, gas-guzzling cars and airplanes are used

    like never before and the meat consumption per capita has increased (DN:a, 2010-12-15; SvD,

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