“Packaging as a brand-building tool”Student: Marija Antunovic

Advisor : Bruno BusaccaSecond Advisor : Elena Feltrinelli

Discussant: Maria Carmela Ostillio

WHY FOCUS ON PACKAGING DESIGN

• Fierce competition

• Reduced marketing and promotional budgets

• Companies are struggling to differentiate

• Decline in productivity of traditional marketing tools

• Packaging is cost effective

PACKAGING DESIGN LITERATURE OVERVIEW

PACKAGING

Secret Salesman (Pilditch, 1961)

Differentiation Tool (Berkowitz, 1987)

Customer Response (Bloch, 1995)

Customer Decision Making Process (Garber, 1995)

Attention, Categorization and Evaluation (Schoorsmans&Robben ,

1997)

Financial Performance (Hertenstein, Platt, Veryzer, 2005)

PACKAGING AND BRAND MANAGEMENT LITERATURE

2002 Underwood, Klein, Burke

2008 Orth, Malkewitz

2004Henderson, Giese, Cote

Communication roleBrand identity

Brand evaluation

Brand impressionsBrand identityBrand strength

Predictable Brand impressions

2009 Limon, Kahle, Orth

Cross cultural differences of Packaging communication

vehicle

OBJECTIVE OF THE STUDY:

Prove empirically that PACKAGING influences BRAND EQUITY by testing the relationships between the packaging stimulus and VITAL brand equity assets

METHODOLOGY:

•Descriptive customer survey based on evaluation of a packaging visual stimulus•Non probability sample•Sample size 300 respondents•Data collection method: online survey

THE CONCEPTUAL MODEL!

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Hypotheses:H1. Attitude towards packaging is related to a) Brand Trust b) Brand AffectH2. Brand Trust is related to a) Purchasing Loyalty b) Attitudinal LoyaltyH3. Brand Affect is related to a) Purchasing Loyalty b) Attitudinal LoyaltyH4. Attitude towards packaging is related to a) Purchasing Loyalty b) Attitudinal Loyalty

CognitiveAffectiveConative

SCALE RELIABILITYCONSTRUCT AUTHOR COEFFICIENT ALPHA

Attitude towards packaging Perrien, Dussart, Paul (1985) 0.945

Brand Trust Chaudhuri, Holbrook (2001) 0.901

Brand Affect Chaudhuri, Holbrook (2001) 0.924

Purchasing Loyalty Chaudhuri, Holbrook (2001) 0.764

Attitudinal Loyalty Chaudhuri, Holbrook (2001) 0.840

All items were measured on a 7 point semantic scale

MAIN EMPIRICAL FINDINGS!

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MANAGERIAL IMPLICATIONS

• Packaging is a brand-building tool with the ability to induce positive brand emotions, trust and loyalty

• Empirical results indicate that packaging influences brand equity, thus we provide the justification for packaging expenditures

• In packaging design process, marketing managers should strike a balance between eliciting strong and positive emotions and presenting relevant information that communicates brand proposition

• Brand Affect is a more influential determinant of Customer’s Loyalty