Page 180 - MARSIUM'21 COMP OF PAPER

■ 1.0 INTRODUCTION

To remain in a competitive market, the company must successfully meet the needs and desires of consumers. Packaging
plays an important role in raising customers purchase intention. Attractive packaging not only gets a place in the eyes of consumers
but can also reduce promotion costs. According to Rundh (2005) stated product packaging can influence consumers’ attention and
intention to buy a certain product. Furthermore, customers will be more interested in product packaging that has a versatile/unique
design (Belleau et al 2007). In the other word, packaging that has a unique and versatile design will influence customers to choose
and buy the product rather than other similar products in the market.
According to Argo & White, 2012; Gómez et al., 2015, many businesses used 40% of selling price product to make good
product packaging. Based on the research by Proctor and Gamble stated that the customer decides to buy the product in a short
period of time by looking at the product packaging at the shelves. Thus, good product packaging is very important to attract potential
customers.

Good packaging is very important for customers to differentiate between similar products in a highly competitive market
(Rundh, 2009). The good product packaging will benefit the business such as increasing in sales, lower promotional cost and have
loyalty customers. Hence, the purpose of this study to investigate the factors of product packaging of Arasa shrimp paste such as
colour, material, graphic, size and shape will influence customer’s purchase intention.

1.1 Problem Statement

Nowadays, customer purchase desire is always change due to changing business environment. Thus, product packaging is
playing the main role. Before this, packaging is currently being use to protect the product, but nowadays packaging is playing the
important role to attract potential consumers to purchase the certain product (Raheem, Ahmad, Vishnu & Imamuddin, 2014). Many
company tends to use attractive packaging to increase their sales and also can reduce the promotional cost. A good packaging is
definitely help customer to identify the product. According Ahmad, Billoo & Lakhan (2012), packaging element have a positive
impact on customer purchases intention.
Based on the interview with Mr. Hanzala, the owner of Hanzala Enterprise, Hanzala Enterprise never do any improvement
of their shrimp paste packaging. The shrimp paste packaging is plain, not colourful, don’t have any graphic and also not attractive.
According to Ibojo and Olawepo (2015), product packaging can create the new brand image as well as help customer to choose a
particular product. According to Javed (2015), colour could catch customer’s intention to buy the product.
Moreover, based on the interview, Mr. Hanzala said that they get some complaint from their customers regarding the bad
packaging. Although this problem rare but as the owner of this business, Mr. Hanzala want the best for their customers. Thus, this
is important to carry out this study because Hanzala Enterprise have a problem regarding their shrimp paste packaging which is not
attractiveness, bad packaging and never do any improvement in terms of product packaging. By this study, Hanzala Enterprise can
increase their sales, attract their potential customers as well as increase customer purchase intention.

1.2 Research Questions

This study listed 4 main research questions:

RQ1: Does the impact of packaging color for Arasa shrimp paste influence customer’s purchase intention?

RQ2: Does the impact of packaging material for Arasa shrimp paste influence customer’s purchase intention?

RQ3: Does the impact of packaging graphics for Arasa shrimp paste influence customer’s purchase intention?
RQ4: Does the impact of packaging size and shape for Arasa shrimp paste influence customer’s purchase intention?

1.3 Research Objectives

The specific objectives were listed based on the statement research question:

RO1: To investigate the impact of packaging color for Arasa shrimp paste influence customer’s purchase intention.

RO2: To investigate the impact of packaging material for Arasa shrimp paste influence customer’s purchase intention
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