The influence of product packaging elements on consumers purchase intention an empirical study or innisfree cosmetic product

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN XUAN HUONG THE INFLUENCE OF PRODUCT PACKAGING ELEMENTS ON CONSUMER’S PURCHASE INTENTION – AN EMPIRICAL STUDY OF INNISFREE COSMETIC PRODUCT BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 HO CHI MINH CITY, 2019 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN XUAN HUONG THE INFLUENCE OF PRODUCT PACKAGING ELEMENTS ON CONSUMER’S PURCHASE INTENTION – AN EMPIRICAL STUDY OF INNISFREE COSMETIC PRODUCT BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 Supervisor DINH THU QUYNH, MBA HO CHI MINH CITY, 2019 i TÓM TẮT Nhận thấy rằng, nhiều năm gần người dân Việt Nam ngày quan tâm nhiều đến sản phẩm mỹ phẩm đến từ nước ngoài, đặc biệt từ nước Hàn Quốc Một mỹ phẩm trội Hàn Quốc nhiều người biết đến thị trường Việt Nam sản phẩm Innisfree Bao bì sản phẩm Innisfree yếu tố thu hút người tiêu dùng hình ảnh đẹp đầy màu sắc, thiết kế phong phú,… Bao bì sản phẩm Innisfree yếu tố ảnh hưởng nhanh chóng đến ý định mua hàng định mua hàng khách hàng Qua đó, nghiên cứu muốn điều tra ảnh hưởng yếu tố bao bì Innisfree đến ý định mua hành người tiêu dùng Thành phố Hồ Chí Minh Kết nghiên cứu đóng góp vào lý thuyết ý định mua hàng khách hàng bị ảnh hưởng yếu tố bao bì sản phẩm Dữ liệu thức nghiên cứu khảo sát từ người dân khu vực Thành phố Hồ Chí Minh với 200 khảo sát Các phương pháp sử dụng nghiên cứu phân tích độ tin cậy Cronbach’s Alpha, phân tích nhân tố khám phá EFA, phân tích One –Way ANOVA ảnh hưởng yếu tố nhân học đến ý định mua hàng người tiêu dùng Kết cung cấp có tất năm yếu tố bao bì sản phẩm ( Màu sắc bao bì, Thiết kế bao bì, Chất liệu bao bì, Phơng chữ bao bì, Thơng tin in bao bì) có tác động tích cực đến ý định mua hàng người tiêu dùng Trong Màu sắc bao bì có ảnh hưởng mạnh đến ý định mua sản phẩm Innisfree, tiếp đến Thiết kế bao bì làm cho người tiêu dùng bị thu hút sản phẩm, theo sau Chất liệu bao bì sản phẩm, Phơng chữ bao bì cuối có tác động Thơng tin in bao bì Nghiên cứu đưa khuyến nghị giúp nhà quản trị nhà hoạch định sách Innisfree nói riêng cơng ty mỹ phẩm thị trường nói chung có sách để phát triển, đổi yếu tố bao bì phù hợp với khách hàng mục tiêu ii ABSTRACT Innisfree is one of the most attractive foreign cosmetics from Korea in Vietnam market, and many people choose to buy Innisfree products because of its quality, reasonable price, beautiful packaging In fact, Innisfree has been successful when Innisfree products have always attracted consumers by product packaging through its design And product packaging is also one of the first factors to help customers intend to buy high or have a decision to buy quickly in a short time when seeing the product Product packaging attracts consumers at first sight and consumers can also position that brand or product in their heads by unique packaging Therefore, the author decide to research about influencing of Innisfree packaging elements on consumer’s purchase intention and then propose implications to help manufactures and marketers of Innisfree and others maintain and develop Innisfree product as well as enhance Innisfree brand The target population for this research is citizens who have used Innisfree cosmetic products in Ho Chi Minh City Research methods used to test models is preliminary research and official research Qualitative research was conducted by in depth interviews with 10 people who used Innisfree product for the purpose of evaluating the items, content, and scale of the research concepts in the table questionnaire to adjust accordingly and surveyed with 100 people to check the reliability of the scale before conducting the main quantitative research After the scale adapted the requirements, the author conducted formal research through an online survey with 200 samples The questionnaire survey used 5-point Likert type scale ranging: (1) Strongly Disagree (SD), (2) Disagree (D), (3) Neutral (N), (4) Agree (A), and (5) Strong Agree (SA) is applied and all measurements were carried out as stated in the following sections The principal analysis used Cronbach’s Alpha Reliability Analysis to check the reliability of the measurement scales After testing the reliability of the scale item groups, Exploratory Factor Analysis (EFA) was conducted through the principal axis iii factoring and tested One-way Anova with the aim of exploring the impact of demographic factors and check the strong and weak impact of packaging elements on consumer buying intent The author has consulted previous studies related to product packaging and purchase intent of consumers The empirical in term of the research were used namely: Maria Inês Fernandes Paz Antunes dos Santos (2018): “The impact of visual elements of package on consumers purchase intent and the mediating role of perceived risk – An analysis on food packaged products” Teoh Khar Chin (2017) Factors influencing consumers’ purchase intention of cosmetic product in Malaysia Ankit Katiyar (2015) Role of packaging as influencing factor of consumer buying decision-A study of consumer of Kanpur region, U.P, India Rizwan Raheem (2014): Role of packaging on consumer’s buying behavior Shashikiran.l and Aashna Behl (2018): Impact of product packaging and labelling on consumer purchase intention of soft drinks Sidrah Waheed (2018): Product packaging and Consumer’s purchase intentions The research was designed to measure the Consumer’s intention to buy Innisfree product in Ho Chi Minh City by five variables related to product packaging elements which is Packaging Color, Packaging Design, Packaging Material, Font Style, Printed Information After being tested through software SPSS version 20.0, the results showed that all the hypotheses were accepted The results also indicate that the Packaging Color has the strongest influence on the consumer’s purchase intention, followed by is Packaging Design, Packaging Material, Font Style and the Printed Information which has the weakest impact on purchase intent Besides, the consequence also shows that there iv are differences between the sexes that influence consumer’s intention to buy Innisfree products; In particular, women tend to buy and use Innisfree products more than men Not only that, the results also show that between different income groups also intend to buy differently After finding the results, the author uses the data from the results to give conclusions and make implications for the product manufacturer and give limitations of this study Through this research indicates that the managers of Innisfree cosmetic products should focus on the following issues: a) The company should focus on the majority of female customers, because according to the survey, female customers account for a relatively high proportion, so the company should have appropriate policies for this target customer Besides, the results in chapter four from SPSS software version 20.0 also show that, the main occupation chosen Innisfree cosmetic products is office workers (especially employees with an income of between and 10 million VND) tend to buy the most Therefore, the company should also have specific policies for these customers b) Almost all packaging elements have a positive impact on Consumers purchase intention of Innisfree, the company should have separate policies for each type of packaging element, but still ensure when having the combination among all elements, these factors still create a product with unique packaging, attract consumers, or position the brand in the minds of consumers In particular, color is the strongest factor affecting Innisfree customers' intention to purchase cosmetics, so the company should focus more on psychosocial information about the meaning of each color to the consumer's emotions, decisions, or intent to buy Neil Patel said: "Color affects 85% of the reason costumers buy a specific product.” For example, Green marketers because blue means creating trust for users In addition to packaging color, design packaging and the material of the packaging also significantly influenced to purchase v Innisfree Therefore, the innovating and improving the packaging of products will make consumers attracted to cosmetics c) About the information printed as well as the Font style on the packaging, although they have the weakest impact on the intention to purchase As far the former, the font style and font size should match and harmonize the design, colors, and materials used for each type of packaging to increase customer attention, and avoid excessive font confusion that make customers bored of reading information printed on products Regarding the later, the company should also pay attention to providing the information on the packaging selectively, otherwise it will make customers feel confused with the message the product wants to convey Although the study offers important information about the elements of product packaging impact on purchase intention of Innisfree products, so it still contains some limitations, which must be critically considered ­ Firstly, the empirical research is conducted in a small part of Ho Chi Minh City by individuals who have used Innisfree cosmetic, thus, its result may not reflect the relationship between packaging attributes and purchase intention in Ho Chi Minh context ­ Secondly, due to the limitation of time and capacity, so the number of surveyors is not much (with sample size is just 200), if the number of samples is larger, the reliability of this research will be higher ­ Finally, there are any other factors affecting consumer’s purchase intention by product packaging, so any replacement of the other factors also will affect more or less the survey findings and the researcher’s conclusions Key words: Product packaging, packaging elements, cosmetic, consumer, purchase intent vi AUTHOR’S DECLARATION This thesis is the author’s work with the title: “The influence of product packaging elements on consumer’s purchase intention - An empirical study of Innisfree cosmetic product.” was solely undertaken by myself Sentences from other researchers that I used quotes or describe an argument or concept theoretical by another author have been referenced Ho Chi Minh, December 2019 Nguyen Xuan Huong vii ACKNOWLEDGEMENT Foremost, I would like to express my acknowledge to my supervisor – Dinh Thu Quynh, MBA who gave me valuable information as well as valuable recommendation to my bachelor’s thesis and support of my research for her patience, enthusiasm, motivation Besides, I am very thankful to not only professors and lectures in Banking University of Ho Chi Minh City gave me any knowledge and skills during period of the time I have been studying at this school Last but not least, I would like to thank my family for their support during my studying and my life Without the encouragement of family support, I would not be able to complete my thesis I am sincerely grateful to them viii TABLE OF CONTENTS TÓM TẮT i ABSTRACT ii AUTHOR’S DECLARATION vi ACKNOWLEDGEMENT vii LIST OF ABBREAVIATIONS xii TABLE LIST xiii FIGURE LIST xv CHAPTER 1: OVERVIEW OF THE RESEARCH 1.1 The necessity of the topic 1.2 Objective of the study 1.3 Research question 1.4 Subjects of the research and scopes of the study 1.5 The Research Methodology 1.6 Research Significance 1.6.1 Academic Significance 1.6.2 Practical Significance 1.7 Thesis structure CHAPTER 2: OVERVIEW OF THEORETICAL BASIS OF THE THESIS 2.1 Introduction 2.2 The main research concepts of the topic 2.2.1 Product packaging 2.2.2 Cosmetics 2.3 Innisfree cosmetic 89 I can imagine Innisfree product's images when i see the colors of these product Packaging Material I prefer Innisfree product due to its high quality packaging material The packaging of Innisfree Cosmetic product attracts me The quality of packaging material of Innisfree product means the products is are highly quality The quality of packaging material of Innisfree products does not matter to me I think it’s a renowned Innisfree products due to its packaging Font Style Font styles used on the packet of Innisfree products are attractive I like the creativity of font styles on the packet of Innisfree products Font size used helps me remember Innisfree cosmetic products Packaging Design Wrapper design of Innisfree cosmetic product is important in packaging Design of Innisfree product’s wrapper inspires me to purchase Wrapper design builds a perception in my mind about Innisfree cosmetic product 90 Innisfree's packaging design is very eyecatching Printed Information I read printed information on the package of Innisfree product I evaluate this Innisfree cosmetic according to the printed information while purchasing I feel product information on the package of Innisfree cosmetic product is important Consumer Purchase Intentions I am positive towards purchasing Innisfree cosmetic product My willingness to buy Innisfree cosmetic product is high I have the intention to purchase Innisfree product in the future I will purchase the Innisfree cosmetic because its packaging attracts me I am willing to recommend other people to buy this cosmetic I think about Innisfree as a choice when buying cosmetic product SECTION B: DEMOGRAPHICS What is your gender?  Male  Female What is your age? 91 < 18 years 18– 25 years 26 – 35 years > 35 + years What is your occupation?  Student  Officer  Other What is your net income per month? Below million VND 5 – 10 million VND 11 - 20 million VND 21 – 30 million VND Over 30 million VND 92 Appendix 4: Data analysis results Table 4.1 Gender Frequency Male Valid Female Total Percent Valid Percent Cumulative Percent 38 19,0 19,0 19,0 162 81,0 81,0 100,0 200 100,0 100,0 Table 4.2 Age of respondents Frequency 11 5,5 5,5 Cumulative Percent 5,5 18– 25 years 142 71,0 71,0 76,5 26 – 35 years 22 11,0 11,0 87,5 > 35 + years 25 12,5 12,5 100,0 200 100,0 100,0 < 18 years Valid Total Percent Valid Percent Table 4.3 Occupation Frequency Valid Percent Valid Percent Cumulative Percent Student 42 21,0 21,0 21,0 Officer 128 64,0 64,0 85,0 Other Total 30 200 15,0 100,0 15,0 100,0 100,0 93 Table 4.4 Income Frequency Below million VND – 10 million VND 11 - 20 million VND Valid 21 – 30 million VND Over 30 million VND Total Percent Valid Percent Cumulative Percent 41 20,5 20,5 20,5 72 36,0 36,0 56,5 59 29,5 29,5 86,0 22 11,0 11,0 97,0 3,0 3,0 100,0 200 100,0 100,0 Table 4.5 Descriptive Statistics: Packaging Color N PC1 PC2 PC3 PC4 Valid N (listwise) 200 200 200 200 Minimu Maximu m m 5 5 Mean 3,58 3,67 3,62 3,61 Std Deviation ,595 ,641 ,638 ,573 200 Table 4.6 Descriptive Statistics: Packaging Material N PM1 PM2 PM3 PM4 PM5 Valid N (listwise) Minimum Maximum 200 200 200 200 200 200 1 1 5 5 Mean 3,63 3,64 3,88 3,67 3,69 Std Deviation ,710 ,680 ,611 ,701 ,666 94 Table 4.7 Descriptive Statistics: Font Style N FS1 FS2 FS3 Valid N (listwise) Minimu m 200 200 200 2 Maximu m Mean 5 Std Deviation 3,69 3,64 3,73 ,615 ,635 ,591 200 Table 4.8 Descriptive Statistics: Packaging Design N Minimum Maximum Mean Std Deviation PD1 PD2 PD3 200 200 200 5 3,73 3,87 3,88 ,698 ,584 ,623 PD4 200 4,04 ,548 Valid N (listwise) 200 Table 4.9 Descriptive Statistics: Printed Information N Minimum Maximum Mean Std Deviation PI1 200 3,92 ,807 PI2 200 3,89 ,735 PI3 200 4,11 ,591 Valid N (listwise) 200 95 Table 4.10 Descriptive Statistics: Consumer’s Purchase Intention N CPI1 CPI2 CPI3 CPI4 CPI5 CPI6 Valid N (listwise) Minimum Maximum 200 200 200 200 200 200 3 2 5 5 5 Mean 3,74 3,75 3,77 3,76 3,71 3,74 Std Deviation ,549 ,547 ,573 ,533 ,570 ,587 200 Table 4.11 Cronbach’s Alpha of variables Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Packaging Color (Cronbach’s Alpha=0.772) PC1 10,91 2,143 PC2 10,82 2,148 PC3 10,88 2,030 PC4 10,88 2,317 Packaging Materials (Cronbach’s Alpha=0.771) PM1 14,90 3,592 PM2 14,89 3,797 PM3 14,65 5,175 PM4 14,86 3,713 PM5 14,84 3,817 Font Style (Cronbach’s Alpha=0.703) FS1 7,37 1,137 FS2 7,42 1,018 FS3 7,32 1,103 Packaging Design (Cronbach’s Alpha=0.740) PD1 11,80 1,953 PD2 11,66 2,076 PD3 11,65 1,947 Cronbach's Alpha if Item Deleted ,614 ,536 ,622 ,529 ,697 ,739 ,691 ,740 ,685 ,633 ,140 ,642 ,644 ,675 ,696 ,843 ,692 ,693 ,468 ,551 ,545 ,677 ,572 ,583 ,495 ,587 ,617 ,710 ,651 ,631 96 PD4 11,49 2,352 ,449 Printed Information (Cronbach’s Alpha=0.813) PI1 8,00 1,367 ,714 PI2 8,02 1,532 ,710 PI3 7,80 2,007 ,602 Consumer’s Purchase Intentions (Cronbach’s Alpha=0.851) CPI1 18,74 4,427 ,755 CPI2 18,73 4,540 ,701 CPI3 18,71 4,398 ,726 CPI4 18,72 4,876 ,558 CPI5 18,77 4,874 ,505 CPI6 18,74 4,656 ,582 ,724 ,697 ,694 ,813 ,804 ,814 ,808 ,840 ,851 ,837 Table 4.12 Cronbach’s Alpha of Packaging Materials Scale Mean if Scale Variance Corrected Cronbach's Item Deleted if Item Deleted Item-Total Alpha if Item Correlation Deleted Packaging Materials (Cronbach’s Alpha=0.843) PM1 11,01 2,965 ,698 ,792 PM2 11,00 3,090 ,678 ,801 PM4 10,97 3,054 ,664 ,807 PM5 10,95 3,143 ,672 ,804 Table 4.13 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square df Sig ,775 1180,977 153 ,000 97 Table 4.14 Total Variance Explained Com Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings pone nt To % of tal Variance Cumulati Total ve % % of Variance Cumulati Total ve % % of Cumulative Variance % 3, 84 21,377 21,377 3,848 21,377 21,377 2,841 15,784 15,784 14,966 36,342 2,694 14,966 36,342 2,482 13,788 29,573 12,054 48,397 2,170 12,054 48,397 2,296 12,758 42,331 10,234 58,631 1,842 10,234 58,631 2,236 12,421 54,752 6,478 65,109 1,166 6,478 65,109 1,864 10,357 65,109 2, 69 2, 17 1, 84 1, 16 98 Table 4.15 Rotated Component Matrixa Component PM1 837 PM5 824 PM2 795 PM4 788 PC3 790 PC1 759 PC4 720 PC2 717 PD3 815 PD2 787 PD1 720 PD4 658 PI1 870 PI2 869 PI3 808 FS3 784 FS2 774 FS1 642 99 Table 4.16 Correlations CPI_Y Pearson CPI_ Correlation Sig (2-tailed) Y PM_ X1 PC_ X2 PD_ X3 PI_X FS_ X5 PM_X1 PC_X2 PD_X3 PI_X4 FS_X5 ,399** ,534** ,437** ,161* ,439** ,000 ,000 ,000 ,023 ,000 200 200 200 200 200 200 ,399** ,167* ,013 -,071 ,345** ,000 200 200 ,018 200 ,858 200 ,317 200 ,000 200 ,534** ,167* ,106 -,015 ,436** ,000 200 ,018 200 200 ,135 200 ,829 200 ,000 200 ,437** ,013 ,106 ,162* ,087 ,000 200 ,858 200 ,135 200 200 ,022 200 ,220 200 ,161* -,071 -,015 ,162* -,038 ,023 200 ,317 200 ,829 200 ,022 200 200 ,595 200 ,439** ,345** ,436** ,087 -,038 Sig (2-tailed) ,000 ,000 ,000 ,220 ,595 N 200 200 200 200 200 N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation 200 100 Table 4.17 Model Summaryb Mo R R Square Adjusted R Std Error of Durbin- Square the Estimate Watson del ,751a ,564 ,552 ,28371 1,889 Source: Result of SPSS data analysi Table 4.18 ANOVAa Model Sum of Squares df Mean Square F Sig Regression 20,160 4,032 50,090 ,000b Residual Total 15,616 35,776 194 199 ,080 Model Table 4.19 Coefficientsa Unstandardized Standardiz t Coefficients ed Coefficien ts B Std Error Beta (Consta -,414 ,276 nt) PM_X1 ,216 ,038 ,347 ,047 PC_X2 PD_X3 ,329 ,045 PI_X4 ,093 ,033 FS_X5 ,126 ,048 a Dependent Variable: CPI_Y ,290 ,386 ,358 ,135 ,144 Sig Collinearity Statistics Toleran ce -1,498 ,136 5,728 7,309 7,387 2,794 2,606 ,000 ,000 ,000 ,006 ,010 ,877 ,805 ,959 ,968 ,732 VIF 1,140 1,243 1,042 1,034 1,366 101 Table 4.20 Test of Homogeneity of Variances by Gender CPI_Y Levene Statistic df1 6,922 df2 Sig 198 ,009 Table 4.21 ANOVA CPI_Y Sum of Squares Between Groups Within Groups Total df Mean Square 1,535 1,535 34,241 198 ,173 35,776 199 F 8,875 Table 4.22 Test of Homogeneity of Variances by Age CPI_Y Levene Statistic ,652 df1 df2 Sig 196 ,583 Table 4.23 ANOVA by Age CPI_Y Sum of Squares Between Groups Within Groups Total df Mean Square ,807 ,269 34,969 196 ,178 35,776 199 F 1,507 Sig ,214 Sig ,003 102 Table 4.24 Test of Homogeneity of Variances by Income CPI_Y Levene Statistic df1 1.052 df2 Sig 195 381 Table 4.25 ANOVA by Income CPI_Y Sum of Squares Between Groups Mean Square df 2.478 619 Within Groups 33.298 195 171 Total 35.776 199 F Sig 3.627 007 Table 4.26 Test of Homogeneity of Variances by Occupation CPI_Y Levene Statistic 772 df1 df2 Sig 197 464 Table 4.27 ANOVA by Occupation Sum of Squares Between Groups df Mean Square 410 205 Within Groups 35.366 197 180 Total 35.776 199 F 1.141 Sig .322 103 ... Color and Consumer’s purchase intentions Color is one element of packaging; The color of the product of the visual factors is an important part of attractiveness to consumers The study of color... the thesis ? ?The Influence of Product Packaging Elements On Consumer’s Purchase Intention – An Empirical Study of Innisfree Cosmetic Products” in order to measure the impact of packaging on consumers. .. feel confused with the message the product wants to convey Although the study offers important information about the elements of product packaging impact on purchase intention of Innisfree products,