Rabu, 05 Desember 2012

PROPOSAL PENELITIAN


PROPOSAL PENELITIAN
A.   Judul Penelitian :
PENGARUH FASILITAS TERHADAP KINERJA KARYAWAN
B.   Bidang Studi : Ilmu Ekonomi

C.   Latar Belakang
Perusahaan adalah tempat terjadinya kegiatan dan berkumpulnya semua faktor produksi. Setiap perusahaan ada yang terdaftar di pemerintah dan ada pula yang tidak. Bagi perusahaan yang terdaftar di pemerintah, mereka mempunyai badan usaha untuk perusahaannya. Badan usaha ini adalah status dari perusahaan tersebut yang terdaftar di pemerintah secara resmi.Oleh sebab itu, antara perusahaan dengan karyawan harus dapat bekerja sama untuk mencapai tujuan yang diinginkan.
Faktor-faktor penting yang sangat berpengaruh terhadap kinerja perusahaan adalah disiplin kerja.Disipilin kerja karyawan sangat diharapkan oleh perusahaan dalam rangka merealisasikan tujuan perusahaan, baik tujuan jangka pendek maupun jangka panjang.Disiplin kerja adalah prosedur yang mengoreksi atau menghukum bawahan karena melanggar peraturan atau prosedur. Sehingga tingkat disiplin harus tertanam dari diri masing-masing supaya bisa bkerja sengan tim didalam sebuah organisasi, type disiplin ada 2 yaitu disiplin preventif dan disiplin korektif.
beberapa tujuan tindakan disiplin diantaranya adalah :
menciptakan bahwa perilaku-perilaku kar yawan konsisten dengan aturanaturan perusahaan, menciptakan atau memperta hankan rasa hormat dan saling percaya diantara pimpinan dan bawahan, membantu karyawan supaya menjadi lebih produktif. Adapun jenis-jenis masalah disiplin karyawan antara lain (Henry Simamora, 1996: 749) adalah :
- Ketidakhadiran dan keterlambatan
- Sikap buruk dan tidak loyal
- Kecerobohan dan kelataan
- Pembangkangan atasan
- Perkelahian
- Pelanggaran-pelanggaran peraturan perusahaan
- Kinerja yang buruk
- Perlambatan kerja
D.   Rumusan Masalah
Berdasarkan latar belakang diatas, maka penulis merumuskan dalam penelitian ini sebagai berikut:                 
  •   Bagaimana cara memotivasi  karyawan supaya mempunyai disiplin keja ?
  •   Apakah fasilitas mempunyai pengaruh terhadap produktivitas kerja karyawan pada perusahaan?


E
. Tujuan penelitian
Penulisan ini bertujuan  memberikan masukan yang mungkin berguna bagi perkembangan perusahaan yang berkaitan dengan karyawan yang meliputi :
disiplin kerja, dan fasilitas kerja karyawan akan dapat diketahui produktivitas kerja karyawan secara finansial dan secara maksimal.

F . Meode penelitian

Metode penelitian yang digunakan dalam penelitian ini adalah metode deskriptif,maksudnya adalah memusatkan penelitian pada masalah-masalah yang aktual yaitu pada masalah masa sekarang ini. Data diperoleh dikumpulkan,disusun,dijelaskan dan dianalisis.

1. Sumber Data

a) Data Primer
Data primer adalah data asli yang dikumpulkan sendiri oleh peneliti untuk menjawab masalah penelitiannya secara khusus. Dalam hal ini data primer yang diperlukan meliputi data mengenai motivasi (Istijanto,2005:32).

b) Data Sekunder
Data sekunder  data yang telah dikumpulkan pihak lain, bukan oleh peneliti sendiri , untuk tujuan lain.Keberadaan data sekunder tidak dipengaruhi riset yang akan dijalankan peneliti , sebab data tersebut sudah disediakan pihak lain secara berkala atau pada waktu tertentu (Istijanto,2005:27).





2.  Metode Pengumpulan Data

Observasi
Yaitu pengumpulan data dengan jalan mengadakan pengamatan secara langsung pada Rumah Sakit dan melakukan pencatatan secara cermat dan sistematik.

Wawancara
Yaitu metode yang digunakan untuk memperoleh secara langsung, mendalam , tidak terstruktur , dan individual (Istijanto,2005:38). 

Analisa Korelasi
Untuk mengukur kuat tidaknya korelasi antara variabel X (fasilitas) dan variabel Y (Kinerja),maka dapat mengunakan Korelasi (r) dengan rumus (Sugiyono, 2003: 182) :

r=(n∑xy-(∑x)(∑y))/(√({n∑x^2 )-(∑x)^2 } {n∑y^2-(∑y)^2})


Keterangan :


1.      Apabila nilai r hasil positif serta r hasil > r tabel, maka butir atau variabel tersebut valid.
2.      Apabila nilai r hasil negatif dan r hasil < r tabel, maka butir atau variabel tersebut tidak valid.





Sabtu, 01 Desember 2012

Buying behaviour and decision-making criteria of Base of the Pyramid consumers: the influence of packaging on Fast Moving Consumer Goods customers’ brand experience


   “Buying behaviour and decision-making criteria of Base of the Pyramid consumers:
the influence of packaging on Fast Moving Consumer Goods
customers’ brand experience”

Ebrahim Variawa
Student number: 29751332
A research project submitted to the Gordon Institute of Business Science, University of
Pretoria, in partial fulfilment of the requirements for the degree of Master of Business
Administration.
10 November 2010





1.1 Background
Over two thirds of the world’s population are considered to be low-income earners. The
bottom of the global economic pyramid refers to the more than four billion people with per
capita incomes below $1500 per annum that live in poor or extremely deprived conditions.
Marketers and communicators know little about these consumers who are considered to be
at the Base of the Pyramid (BoP). There has been an undue bias towards understanding
developed markets, which are driven by competitive pressures and proliferation of choice.
The sheer vastness of the low-income market, unfamiliarity with its customers, and the lack
of ready means to reach them have all abetted in ensuring that marketers continue to be
unaware of what drives them (Mehta, 1998).
It is collectively estimated that people at the BoP have a combined purchasing power of $5
trillion (Subrahmanyan & Gomez-Arias, 2008). Prahalad (2006) categorises consumers into
four tiers (see Figure 1). Tiers 3 and 4 form the bottom of the pyramid and consist of four
billion people. Traditionally, companies considered poor or low-income groups as an
unviable market and hence they were largely ignored (Prahalad, 2006). With over 54
countries in Africa and 900 million consumers speaking over 2 000 languages, Africa is not
a homogenous market that companies can merely import or manufacture products for and
try to sell to without appreciating the diversity and complexity of their consumers’ needs,
challenges, preferences and aspirations (Mahajan, 2008). There has, however, been a
paradigm shift, with a recent focus on strategies to better serve this market. Many local and
international companies have begun to operate in emerging markets such as Africa
(Mahajan, 2008). The attraction of this market for companies increases as their consumer’s
progress up the economic pyramid. Furthermore, the pyramid is morphing and by 2020 the very low-income market is expected to shrink by 24%. Today is when these consumers are
forming their opinions and loyalties (Management Agenda, 2007)
1.2 Research problem
Given the wide diversity of Africa’s population, consumers’ behaviour is just as complex
and multifaceted. The research in question is an attempt to help unpack “why consumers
buy what they buy”, or what is referred to as the “the purchasing criteria”.
In mature markets, product packaging has been found to play a strategic role in 7 of 10 ten
in-store purchase decision criteria. This research will try, therefore, to evaluate the
importance of product packaging as a decision criterion in the context of low-income
markets (Bone & Corey, 2000). R. Fletcher (2005),
in “Marketing at the Bottom of the Pyramid”, argues a different mindset is needed to tap in to the BoP.
A standardised ‘Western’ marketing mix offering of the 4
Ps: Product, Price, Promotion and Place alone will not work with this group, whose
circumstances warrant a contextualised and specific approach. This research will
demonstrate how BoP consumers behave differently. Different preferences, customs and
habits are likely to result in different choice. R. Fletcher (2005) gives fresh insight into how
Western entrepreneurs do not fully understand the realities on the ground. The examples he
cites are of washing clothes in an outdoor stream. He argues that this will require a different
type of packaging and soap product formulation to washing clothes in a washing machine
that adjusts itself to levels of soiling and colour of garments.
With a rise in brands competing for shelf space and market share, the consumer is left with
more choice. Increasingly, consumer-shopping behaviour is being assessed from the
holistic perspective of an entire shopping experience. The holistic view requires a retailer to
product range has for shoppers. When consumers browse for different brands, they are
exposed to useful product attributes. However, they are also exposed to various specific
brand-related stimuli, such as brand-identifying colors, shapes, background design
elements, slogans, mascots and brand characters (Brakus, et al., 2009).

1.3 Research scope
The scope of this research will be limited to the investigation of the purchasing decision
criteria that low-income consumers in South Africa use when doing their grocery shopping.
The constructs that will be studied are Packaging as an independent variable (IV); and
Brand Experience as the dependant variable (DV). The aim will be to investigate the
relationship that IV has on the DV (the control variable will be an FMCG grocery product
sold on the shelf in a retail store).

1.4 Importance of this research
The purpose of the intended research is to investigate how product packaging as a
purchasing criterion influences the brand experience of BoP consumers. Providing insight
into SA BoP consumer preferences of packaging attributes and desired brand experience
dimensions will fill the gap in literature and bring greater attention to this significant but
understudied market. Manufacturers and large retailers will benefit from these findings, as
it will depict the need to go beyond the mentality of merely removing features of the
packaging or brand experience to make them cheaper. Companies can embed the new
findings of packaging and customer brand experience into their products to innovate
bottom up. This may lead to more efficient budget allocation for design and marketing,
resulting in greater customer retention and improved brand equity. Even though consumers
at the BoP face deprivation, with Western markets being saturated

1.5 Research objectives
In trying to understand why BoP consumers buy what they buy, the objective of the research
will be to investigate the influence of product packaging on the consumers’ brand
experience. These findings will shed light on whether preferences in packaging yield a more
positive brand experience and, as a result, how companies can better package their products.


2.1 Introduction
Chapter 1 of this study focused on BoP theory regarding low-income consumers and their
importance as a consumer market. It also discussed the scope and motivation for the study
and alluded to the importance of understanding this group’s decision-making criteria.
Chapter 2 focuses on synthesis of consumer behaviour literature. This is followed by a
synopsis of the literature on the decision-making criteria of BoP consumers. The argument
then refines and investigates decision-making theory constructs such as packaging and its
attributes, and brand experience and its respective dimensions.

2.2 BoP consumer behaviour
Belch and Belch (2007) define consumer behaviour as “the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating, and disposing of
products and services so as to satisfy their needs and desires”

2.3 What influences BoP consumer behaviour
2.3.1 Maslow’s Hierarchy of Needs
According to Maslow, there are five core human motives that are satisfied in a hierarchical
manner: physiological; safety and security; belonging; self-esteem; and self-actualisation.

2.4 Social capital and family systems
Social capital refers to norms and networks that enable people to act jointly (Woolcock and
Narayan, 2000), including the notion that networks such as family, friends and associates
are an important asset and can be called on in a crisis. Communities with a diverse stock of
social capital are regarded to be in a stronger position to confront poverty and lead to
sustainable development (Collier, 1998).

2.5 Compensatory consumption
According to this theory, individuals who cannot fulfill their primary needs, especially
regarding self-esteem or self-actualisation, would compensate these desires by alternative
means (Gronmo, 1988; Woodruffe, 1997). It posits that low-income households, or those
facing racial or ethnic discrimination, will spend heavily on socially visible products to
make up for their lack of status in society. Even though this theory was developed from
observing consumer behaviour of low-income households in the United States of America
(USA), it has relevance to a South African BoP context. When traditional indicators of
social status, such as wealth or occupational prestige, are not accessible, people resort to the
consumption of status products that are easily seen as symbols of a higher class (Fontes &
Fan, 2006). This theory might explain why BoP consumers buy occasional luxury foods for
their children instead of nutritional ones, and spend beyond their means on festivities and
items like cosmetics.

2.6 Compensatory consumption
According to this theory, individuals who cannot fulfill their primary needs, especially
regarding self-esteem or self-actualisation, would compensate these desires by alternative
means (Gronmo, 1988; Woodruffe, 1997). It posits that low-income households, or those
facing racial or ethnic discrimination, will spend heavily on socially visible products to
make up for their lack of status in society.  



RESEARCH HYPOTHESES
In order to investigate the decision criteria of Base of the Pyramid consumers, the research
objectives are combined with the literature, synthesised, and the following research
hypotheses are proposed.

3.1 Main Hypothesis 1:
H1A: Grocery packaging will influence customer brand experience.
H10: Grocery packaging will not influence customer brand experience.
Sub Hypothesis 2:
H2 A: Perceptions of Packaging differ across all product categories.
H20: Perceptions of Packaging do not differ across all product categories.
Sub Hypothesis 3:
H3A: Levels of Brand Experience differ across all product categories.
H30:
 Levels of Brand Experience do not differ across all product categories.
According to the (Sehrawet & Kundu, 2007) packaging scale and the brand experience
scale (Brakus, Schmitt, & Zarantonello, 2009)


4.   RESEARCH METHODOLOGY
4.1 Choice of methodology
The methodology purpose was to help depict the process that the researcher undertook. It
aims to provide details and information so future researchers can replicate or improve on
the study.
Descriptive research was the choice of method to seek answers that best suited this study.
The research design was quantitative in nature; however, the researcher did pre-test the
questionnaire qualitatively by getting consumers’ insight into their reasons for buying the
product. This process also helped to refine the questionnaire, enhance it’s readability and
minimize the chances of questions being misinterpreted.  It also allowed for testing how the
questionnaire would translate into other ethnic languages such as Zulu. There has been
previous research conducted on the BoP context, none of which looked at the influence of
packaging on the brand experience of BoP consumers in the FMCG and retail industries.

4.2 Population and unit of analysis
Approximately 20.9 million people in SA are considered low-income earners. They fall
into the LSM 5 segment and earn under R4 200, on average (Eighty20, 2009). The sample
population was BoP individuals from the Carltonville area.  The total population is
approximately 182 000 people, according to Stats SA 2008, of which 54 406 earn under R3
000 a month and can be considered to be BoP (Fernridge, 2007).
The unit of analysis was a BoP consumer choosing their products in a Cartonville
supermarket.
The control variable to make the findings more robust was to exclude people over LSM 5.
Approximately 19 surveys were discarded due to these individuals not matching the sample
population required. The researcher chose Cartonville as the focus area because of the large
influx of mining workers who earn under R4 200 (LSM 5), as well as the fact that
Carltonville retail outlets act as a feeder to nearby rural settlements such as Khutsong,
Blybank, Welverdiend, Deelkraal, Blyvooruitsig and the residential hostels at the mines
(Fernridge, 2007).
The general population, therefore, was seen to be under LSM 5. Carltonville is also rather
representative of other small, low-income urban nodes in SA, but the results have been
generalised. The survey was conducted at an independently- owned supermarket store
called Star Hyper (which happens to represent the BoP demographics), located at 14 Ada
Street, Carletonville, 2499 (Timol, 2010).

4.3 Sample size and method
Non-probability sampling was used as there was a high probability of any particular
member of the population being chosen to be BoP, and there was no list of all consumers in
Cartonville. The actual survey was carried out near the point of purchase (product
shelves).The benefits of this included the ability to obtain a large number of completed
questionnaires quickly and at a low cost. Three hundred people were asked to take part in
the survey. The respondents that chose to participate in the research were qualified in terms
of being under LSM 5 (Sander
s, Lewis & Thornhill, 2009).

4.4 Data gathering process and research instrument
Mr Timol (2010), Managing Director of Star Hyper, pointed to the fact that his sales cycles
were particularly high at the beginning of each month and the middle of the month, but
slowed down considerably by the 20th
 of each month. He alluded to shoppers purchasing
different sizes and brands depending on the day of the month and the individuals’ personal
cash flow. For instance, mine workers generally visit the store to purchase for themselves,
and then again when they purchase in bulk to send goods away. Their purchasing criteria,
therefore, differed at different intervals in the month. The sample would have been skewed
if the researcher just conducted the survey over one day, so the researcher undertook to
conduct the survey on three different days during the month to get an average in the data
collection (September- Monday).

4.5 Method of analysis
Scale reliability and validity
There are two statistical techniques used to test each of these. For reliability, the author
looked at Cronbach Alpha (Sanders, Lewis & Thornhill, 2009); and for validity, the author
conducted a Factor Analysis (Sanders, Lewis & Thornhill, 2009).
Cronbach Alpha was computed for each of the two scales (Brand Experience and
Packaging) in an iterative process designed to identify those statements or variables that
gave the most reliable scale. The first round of reliability tests was conducted on all the
statements making up the scale. The research then identified statements that were bringing
down the alpha. In other words, as part of the analysis it depicted the strength alpha would
increase or decrease by if certain statements were removed. Using this as criteria for
removing statements from the scale, the researcher was able to improve Cronbach’s Alpha
across both scales. A scale with a Cronbach Alpha that greater than 0.6 is usually a reliable
scale (Sanders, Lewis & Thornhill,  2009).

Factor analysis
Factor analysis was a useful technique to reduce the total number of variables/statements in
the questionnaire in order to represent a smaller number of factors that were used for
further analysis (Sanders, Lewis & Thornhill, 2009). A factor-loading score measured the 48
strength of association for each statement on its corresponding factor. Explained variation
was used to give an idea of how well the factors represented the statements. To test
validity, a factor analysis on all the statements in each scale was conducted. The results of
the factor analysis did not significantly show any issues with how statements were
answered.
For the purpose of this analysis, reliability tests were run parallel to the factor analysis tests,
to see which mix of statements would generate the best Cronbach alpha; and would load
onto a single factor. These single factors were found to represent each of the scales. In
short, six statements we identified for each scale that represented the best reliability and
which could be reduced to a single factor for further analysis. Only when the factor
loadings for the statements were loading high enough on the single factor had the scale
passed the validity test. After the scale was found to be reliable and valid, a composite
score was created to use for further analysis.
The next step was to use these composite scores, in the form of averages, to conduct the
correlation and Analysis of Variance (ANOVA) analysis (Sanders, Lewis & Thornhill,
2009).

Correlation analysis
The Pearson correlation coefficient (r) was used to test if a linear relationship exists
between two variables. The correlation coefficient is a statistical measure of the association
between two numerical variables (Zikmund, 2003). The value of r ranges from +1.0 to -1.0,
where a positive r value indicates a direct relationship and a negative r value represents an
inverse relationship between two variables. The relationship between brand experience and
grocery packaging was tested using a correlation analysis.

ANOVA
ANOVA was used to generalise two sample t-tests to more than two groups. It is a
technique used to see how means differ across different categories. One is the numerical
variable (the composite scale score); and the other a categorical/qualitative variable (the
names of the products). ANOVA was used to compute and compare the mean scores for
each product category, and then see if these means were the same across all the different
product categories, or if there were significant differences.
The author used ANOVA to see if the levels of brand experience and the perceptions of
packaging were the same, or if they varied across all the different products.

4.6 Research limitations
As a result of using non-probability sampling, the results of this inquiry cannot be
generalised.
By focusing on a range of behavioural issues and by accessing individuals at the BoP who
are highly heterogeneous, the author may have involved the ‘noise’ of significant external
factors that may have impacted on the relationships being investigated.
The methodology has provided a step-by-step process, which the researcher undertook.
This study can therefore, be replicated using the same approach to try and yield similar
results, perhaps in other BoP areas around SA.

5. RESULTS
5.1 Response rate
The research made use of a survey deployed in the Star Hyper supermarket in the
Carltonville area to deliberately sample low-income consumers under LSM 5. The
researcher conducted the surveys during three days during the course of the month
(September 2010). It was anticipated that 300 people would be interviewed, however, about
50 people turned down the request to participate and 23 did not want to complete the
survey half way through. A further 19 respondents were not BoP consumers. This resulted
in 208 completed questionnaires that is large enough to draw statistical findings from.

5.2 Biographical information of respondents
The following is a depiction of the demographics of the sample population surveyed.

Table 1: Gender frequencies of sample
Gender
Frequency % Valid % Cumulative %
125 60.1 60.1 60.1
Valid Female 83 39.9 39.9 100.0
Total 208 100.0 100.0

Education
Table 2: Descriptive statistics for education levels amongst sample population:
Table 3:Frequncy of education levels for Sample Population:
Figure 15: Education levels amongst sample population

Education
N: Valid 208 Missing 0
Mean 1.96
Median 2.00
Mode 2
Range 2
Minimum 1
Maximum 3

Table 3:Frequncy of education levels for Sample Population:
Figure 15: Education levels amongst sample population
Education
N: Valid 208 Missing 0
Mean 1.96
Median 2.00
Mode 2
Range 2
Minimum 1
Maximum 3
Education
Frequency % Valid % Cumulative %
Non literate 47 22.6 22.6 22.6
Primary school 123 59.1 59.1 81.7
Matriculate 38 18.3 18.3 100.0

5.3 Preparation of data
Cronbach’s Alpha was calculated to test the internal consistency as a measure of reliability
for the Brand Experience and Packaging scales. Furthermore, factor analysis was conducted
on each scale to investigate its construct validity.

5.4 Tests of hypotheses
5.4.1 Hypothesis 1 – Grocery packaging will influence the customer brand experience
• There is a correlation of 0.117 between brand experience and packaging.
• The two-tailed significance is greater than 5% but less than 10%, indicating a weak
relationship.5.4.2 Sub-hypothesis 2 – Perceptions of packaging differ across all product
categories
ANOVA results
A one-way ANOVA was conducted to compare the mean packaging scores across the
different product categories. The results showed a non-significant effect of mean packaging
scores at the p<.05 level for the various product categories [F (18, 188) = 0.98, p = 0.481].
The mean packaging scores are show in the following descriptive table. The majority of the
packaging mean scores range between 4.5 and 5, which further indicates that there were no
significant differences in the packaging ratings for all the products.

5.4.3 Sub-hypothesis 3 – Levels of brand experience differ across all product categories
This hypothesis was tested by running another one-way ANOVA to compare the mean
brand experience scores across the different product categories. The ANOVA table shows a
significant effect of the brand experience scores at the p<.05 level for the various product
categories [F (18, 188) = 21.796, p = 0.000].

6. DISCUSSION OF RESULTS

6.1 The sample
Insight 1: The fact that male purchasers are higher in numbers than females is likely to be
related to the gender differences in the Carltonville area. It is a mining town and most of
the mineworkers are male. The demographic shift does, however support, BoP literature
that depicts more women becoming involved in the purchasing decision for the household
(Sehrawet & Kundu, 2007).
Insight 2: The sample population was largely literate, with a mere 22.6% of people being
illiterate. This is very close to SA’s national literacy levels (Eighty20, 2009). Figure 37 is a
promotion by Star Hyper in the local newspaper, and the font size and wording are very
small. Pinya and Mark (2004) argue that despite people being able to read the product, Star
Hyper advertisements suggest that the brand symbol, icon and price are more important in
the decision-making process. Future research should evaluate price against branding.

Insight 3: Unemployment levels seem to be higher than the “national” percentage of
unemployment (Eighty20, 2009). It does reiterate though that Star Hyper is catering to BoP
individuals often reliant on social grants. The mineworkers also make up 24.5% of the local
population, and they are generally migrant labour, preferring to buy products in bulk.
Insight 4: Almost all the products had instruction labels and ingredients written only in
English, despite the fact that none of the respondents spoke English as their first language.
This poses serious questions about the relevance of the brands and may provide the
differentiating factor for a company to capture more market share through a culturally
relevant offering for BoP consumers.

Insight 5: With 58% of respondents stating they shopped once a month or every two
months, it is evident that bulk purchasing is preferred; with the remaining 19.7% and 21.2%
preferring to buy every two weeks and weekly. This reiterates and supports the motivation
for the researcher to conduct the survey over three interval periods across the month to get a
clearer idea of customer purchasing habits.

6.2 Discussion of packaging and brand experience scales
First, the negatively worded statements were re-coded. Then, reliability (Cronbach Alpha )
and validity (Factor Analysis) of all the scales were tested. Once the items were reduced,
the composite scores for each scale were generated in the form of averages. These averages
were then used to conduct a correlation analysis to see if there was a linear relationship
between packaging and the brand experience. They were also used to see how the level of
brand experience and perceptions of packaging differed amongst all the various products.


6.3 Hypothesis 1
H1A: Grocery packaging will influence customer brand experience
According to the Packaging scale (Sehrawet & Kundu,  2007) and the Brand Experience
scale (Brakus, Schmitt & Zarantonello, 2009)
6.3.1 Discussion of findings on Hypothesis 1
A Pearson product-moment correlation coefficient was computed to assess the relationship
between grocery packaging and the brand experience. There was a positive correlation
between the two variables: r = 0.117, n = 208, p = 0.091. Overall, the results suggest that a
weak correlation exists between grocery packaging and the brand experience, as the p-value
was greater than the 5% significance level, but still less than the 10% significance level.
Therefore, a weak relationship exists between grocery packaging and brand experience.
The Packaging variable and Brand Experience variable are, nevertheless, still important
decision-making criteria for BoP consumers, as already proven in previous literature
(Sehrawet & Kundu, 2007) (Brakus, Schmitt, & Zarantonello, 2009).
Future recommendations: An in-depth qualitative study may have yielded more insight into
the strength of the relationship of packaging and the brand experience, hence new research
ought to test this in the context of  FMCG products.


6.4 Sub-hypothesis 2
H2 A: Perceptions of Packaging differ across all product categories
According to the packaging scale (Sehrawet & Kundu, 2007) and the Brand Experience
scale (Brakus, Schmitt, & Zarantonello, 2009).

6.4.1 Discussion of findings on sub hypothesis Two
A one-way ANOVA was conducted to compare the mean packaging scores across the
different product categories. The results showed a non-significant effect of mean packaging
scores at the p<.05 level for the various product categories [F (18, 188) = 0.98, p = 0.481].
As a result, the author failed to reject the null hypothesis and concluded that all the means
are similar across the different product categories.
Therefore, no significant differences were found. All the respondents had a strong level of
agreement with the statements related to packaging. These findings were supported by the
literature. In mature markets, product packaging was found to play a strategic role in seven
out of the ten in-store purchase decision criteria (Bone & Corey, 2000). These findings
have thus added to the packaging and consumer behaviour body of knowledge, as previous research did not look at low-income consumers.

6.5 Sub-hypothesis 3
H3A: Levels of Brand Experience differ across all product categories
According to the Packaging scale (Sehrawet & Kundu, 2007) and the Brand Experience
scale (Brakus, Schmitt & Zarantonello, 2009).

6.5.1 Discussion of findings on sub-hypothesis 3
This hypothesis was tested by running another one-way ANOVA to compare the mean
brand experience scores across the different product categories. The ANOVA table shows a
significant effect of the brand experience scores at the p<.05 level for the various product
categories [F(18, 188) = 21.796, p = 0.000]. As a result, the authors rejected the null
hypothesis and concluded that at least one product category had a significantly different
brand experience rating compared to all the others.
Therefore, a significant difference was found between the product categories on the level of
brand experience.

7. CONCLUSION

This study has examined the influence of product packaging on brand experience.  While
the main hypothesis was marginally supported by a statistically weak relationship between
product packaging and brand experience, the qualitative findings supported the notion of a
strong relationship as lower income consumers derive more value, not just from the
‘premium’ product brands, but also from the use of the packaging for other needs after
consuming the product. This was also reiterated by their aversion to packaging that was
deemed environmentally hazardous. Furthermore, low-income consumers enjoy a greater
brand experience with 'premium' brand products compared to what they perceive to be
'cheaper' brand products.

8. REFERENCES
Belch, G.E. & Belch, M.A. (2007). Advertising and Promotion. An Integrated Marketing
Communication Perspective. 7th edn. New York: McGraw Hill/Irwin.
Block, C. (1972). Pre-purchase search behaviour of low-income households (Conolly &
Davidson, 1996) (Kotler, 2000).Journal of Retailing, 48(1), 3.
Belch, G.E. & Belch, M.A. (2007). Advertising and Promotion. An Integrated Marketing
Communication Perspective. 7th edn. New York: McGraw Hill/Irwin.
Block, C. (1972). Pre-purchase search behaviour of low-income households (Conolly &
Davidson, 1996) (Kotler, 2000).Journal of Retailing, 48(1), 3.

Vandenbosch, M., & Dawar, N. (2002). Beyond better products: capturing value in
customer interactions. MIT Sloan Management Review, 43(4), 35-42.
Viswanathan, M. (2007). Understanding product and market interactions in  subsistence
marketplaces, a study in South India. In J.A. Rosa and M.


Comment:
The research, however, has helped to better understand why BoP consumers buy what they
buy. Business development in low-income markets requires entrepreneurs to immerse
themselves in the local market, listen, observe and develop a localised mental model and
perspective. In mature markets, product packaging has been found to play a strategic role in seven out of the ten in-store purchase decision criteria and is, therefore, an important domain
through which companies can embed knowledge for new, innovative product packaging.
Increasingly, consumers also want more from products than just price or their functional
features, benefits and quality. This is a given. Customers want the very essence of a brand as
a rich source of sensory, affective and cognitive associations that result in memorable and
rewarding brand experiences. Customers want products that have marketing campaigns that
are contextual, appeal to their senses, touch their hearts and stimulate their minds. They want
products, communications and campaigns that they can relate to or that they can incorporate
into their lifestyles. They want communications campaigns to deliver an experience. The
degree to which a company is able to stage a desirable customer experience will largely
determine its success in the global market place (Bemd, 1999).
In mature markets, it has been proven that product packaging and brand experience
influence customer purchase behavior; however, the infl uence of product packaging and
customers’ brand experience in low-income markets has not been proven thus far.

Rachru Rizazaindra S
15210509
3EA10