The influence of product packaging elements on consumer's purchase intention - an empirical study or innisfree cosmetic product: Bachelor thesis of Business adminstration / Nguyen Xuan Huong ; Đinh Thu Quynh supervisor

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

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TÓM TẮT

Nhận thấy rằng, nhiều năm gần đây người dân tại Việt Nam ngày càng quan

tâm nhiều hơn đến các sản phẩm mỹ phẩm đến từ nước ngoài, đặc biệt là từ nước Hàn

Quốc. Một trong những mỹ phẩm nổi trội của Hàn Quốc được nhiều người biết đến

tại thị trường Việt Nam đó là sản phẩm Innisfree. Bao bì của sản phẩm Innisfree là

một trong những yếu tố là thu hút người tiêu dùng nhất bởi những hình ảnh đẹp đầy

màu sắc, thiết kế phong phú,… Bao bì sản phẩm của Innisfree cũng là một trong

những yếu tố ảnh hưởng nhanh chóng đến ý định mua hàng cũng như là quyết định

mua hàng của khách hàng. Qua đó, bài nghiên cứu này muốn điều tra sự ảnh hưởng

của các yếu tố về bao bì của Innisfree đến ý định mua hành của người tiêu dùng tại

Thành phố Hồ Chí Minh. Kết quả nghiên cứu đóng góp vào lý thuyết về ý định mua

hàng của khách hàng bị ảnh hưởng bởi các yếu tố bao bì sản phẩm. Dữ liệu chính

thức của bài nghiên cứu được khảo sát từ người dân tại khu vực Thành phố Hồ Chí

Minh với 200 bản khảo sát. Các phương pháp chính được sử dụng trong bài nghiên

cứu này là phân tích độ tin cậy Cronbach’s Alpha, phân tích nhân tố khám phá EFA,

phân tích One –Way ANOVA về sự ảnh hưởng của các yếu tố nhân khẩu học đến ý

định mua hàng của người tiêu dùng. Kết quả cung cấp được có tất cả năm yếu tố của

bao bì sản phẩm ( Màu sắc của bao bì, Thiết kế của bao bì, Chất liệu của bao bì,

Phông chữ trên bao bì, Thông tin được in trên bao bì) có tác động tích cực đến ý định

mua hàng của người tiêu dùng. Trong đó Màu sắc của bao bì có ảnh hưởng mạnh nhất

đến ý định mua sản phẩm Innisfree, tiếp đến là Thiết kế của bao bì cũng làm cho

người tiêu dùng bị thu hút sản phẩm, theo sau là Chất liệu của bao bì sản phẩm, Phông

chữ trên bao bì và cuối cùng có tác động ít nhất là Thông tin được in trên bao bì.

Nghiên cứu này cũng đưa ra các khuyến nghị giúp các nhà quản trị và các nhà hoạch

định chính sách của Innisfree nói riêng cũng như các công ty về mỹ phẩm trên

thị trường nói chung có thể có những chính sách để phát triển, đổi mới những

yếu tố trên bao bì phù hợp với từng khách hàng mục tiêu hơn.

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

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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:

1. 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”.

2. Teoh Khar Chin (2017) Factors influencing consumers’ purchase intention

of cosmetic product in Malaysia

3. Ankit Katiyar (2015) Role of packaging as influencing factor of consumer

buying decision-A study of consumer of Kanpur region, U.P, India

4. Rizwan Raheem (2014): Role of packaging on consumer’s buying

behavior

5. Shashikiran.l and Aashna Behl (2018): Impact of product packaging and

labelling on consumer purchase intention of soft drinks.

6. 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

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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 5 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

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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.

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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

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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.

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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

1.1. The necessity of the topic .................................................................................1

1.2. Objective of the study.......................................................................................2

1.3. Research question.............................................................................................2

1.4. Subjects of the research and scopes of the study ..............................................2

1.5. The Research Methodology ..............................................................................3

1.6. Research Significance.......................................................................................3

1.6.1. Academic Significance...............................................................................3

1.6.2. Practical Significance................................................................................4

1.7 Thesis structure..................................................................................................4

CHAPTER 2: OVERVIEW OF THEORETICAL BASIS OF THE THESIS ...5

2.1 Introduction .......................................................................................................5

2.2 The main research concepts of the topic.............................................................5

2.2.1 Product packaging......................................................................................5

2.2.2 Cosmetics...................................................................................................6

2.3 Innisfree cosmetic..............................................................................................8

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2.4 Purchase intention .............................................................................................9

2.5 Theory of Reasoned Action (TRA).................................................................. 10

2.6 Theory of Planned Behavior (TPB).................................................................. 12

2.7 An overview in relation to research................................................................. 16

2.9 The Hypothesis of the proposed research model .............................................. 27

SUMMARY CHAPTER 2................................................................................... 31

CHAPTER 3: RESEARCH METHODS OF THE THESIS ............................. 32

3.1. Introduction .................................................................................................... 32

3.2 Research process ............................................................................................. 32

3.3 Research methods............................................................................................ 33

3.3.1 Qualitative approach................................................................................ 33

3.3.2 Quantitative approach.............................................................................. 33

3.4 Qualitative research method (Preliminary assessment)..................................... 36

3.4.1 Designing qualitative research ................................................................. 36

3.4.2 Cronbach’s Alpha Reliability coefficient .................................................. 36

3.3.3 EFA factor analysis.................................................................................. 38

3.5 Quantitative research method (Official research) ............................................. 38

3.5.1 Objective and rationale of this research ................................................... 38

3.5.2 Sample...................................................................................................... 39

3.5.3 Collecting information methods................................................................ 39

3.5.4 Designing questionnaires and scales........................................................ 40

SUMMARY CHAPTER 3................................................................................... 47

CHAPTER 4: FINDING AND DISCUSSION ................................................... 48

4.1 Introduction ..................................................................................................... 48

x

4.2 Descriptive statistical analysis ......................................................................... 48

4.2.1 Gender of respondents.............................................................................. 48

4.2.2 Age of respondents ................................................................................... 49

4.2.3 The occupation of respondents ................................................................. 49

4.2.4 Income...................................................................................................... 50

4.2.5 Packaging Color variables....................................................................... 51

4.2.6 Packaging Material variables................................................................... 51

4.2.7 Font Style variables.................................................................................. 52

4.2.8 Packaging Design variables ..................................................................... 53

4.2.9 Printed Information variables................................................................... 54

4.2.10 Consumer’s Purchase Intentions variables............................................. 54

4.3 Reliability of the scale ..................................................................................... 55

4.4 Exploratory Factor Analysis (EFA) ................................................................. 58

4.5 Correlation analysis......................................................................................... 60

4.6 Regression model ............................................................................................ 61

4.7 One – way ANOVA Test................................................................................. 66

4.7.1 Analyze differences by Gender.................................................................. 66

4.7.2 Analyze differences by Age ....................................................................... 67

4.7.3 Analyze differences by Income.................................................................. 68

4.7.4 Analyze differences by Occuptaion ........................................................... 69

SUMARY CHAPTER 4 ...................................................................................... 70

CHAPTER 5: CONCLUSION AND IMPLICATIONS .................................... 71

5.1 Introduction ..................................................................................................... 71

5.2 Conclusion....................................................................................................... 71