THE RELATIONSHIP OF PACKAGING AND GENERATION YS CONSUMER BEHAVIOUR

TONG HOI YI, KAYE BA (Hons) Scheme in Fashion and Textiles (Fashion Retailing Specialism)

INSTITUTE OF TEXTILES & CLOTHING THE HONG KONG POLYTECHNIC UNIVERSITY

THE RELATIONSHIP OF PACKAGING AND GENERATION YS CONSUMER BEHAVIOUR

A thesis submitted In Partial Fulfillment of the Requirements for the Degree of Bachelor of Arts (Honours) in Fashion & Textiles (Fashion Retailing Specialism) under the Supervision of Dr. Amanda Wang by Kaye, Tong Hoi Yi

Institute of Textile of Clothing The Hong Kong Polytechnic University April 2011

ACKNOWLEDGEMENTS I would like to take this opportunity to express my sincere thanks to the people that support this accomplishment. Without their indispensable help, this thesis would not have been possible.

This dissertation is dedicated to my chief supervisor, Amanda Wang and cosupervisor Jerry Bin. During my study, they provided me with useful tutorial and insight. I really appreciated the time they spent and the effort they put to support my study.

Finally, my warmest and most heartfelt thanks goes to my family and Kaklit Yeung for giving me love and support by always being there with me. I truly enjoyed the process and the outcome even though the preparation work was huge and hard.

ABSTRACT Packaging has been called the silent salesman because the current self-service economy has transferred the role of informing the customer from the sales assistant to advertising and to packaging, as it informs us of the qualities and benefits that consumers are going to obtain if they consume a certain product. Therefore, all the packaging elements have to be combined to provide the consumer with visual sales negotiation when purchasing and using the product.

This study went a step beyond the traditional attitude models and also demonstrated the impact of product packaging on actual behavior, in terms of product evaluation and purchase decision. Besides, previous literature indicates that, behavior is guided by several factors while attitude is a crucial one. The promotion and product appearance is not positively sufficient to support the effect of packaging. To be comprehensive, attitude was included for better understanding the behavior.

TABLE OF CONTENTS Page ACKNOWLEDGEMENT AUTHORISATION ABSTRACT CHAPTER 1: INTRODUCTION 1.1 Background of study 1.2 Objectives 1.3 The reason of studying packaging 1.3.1 New retail format 1.3.2 Changing shopping habit 1.3.3 Advertising trends 1.4 Scope of study 1.5 Significance of study CHAPTER 2: LITERATER REVIEW 2.1 Introduction 2.2 Packaging 2.2.1 Definition of package 2.2.2 Package design 2.2.3 Package at different buying stage 2.2.4 Package components 2.3 The changing role of packing 2. 3.1 The functional role of packaging 2.3.2 Marketing role of packaging 11 12 12-13 13-14 14--15 15-16 17 17 17-19 1-4 5 6 6 7 8-9 9 10

2.3.3Maketing mix 2.4 Value-added 2.5 Aesthetic 2.6 Generation Y 2.6.1 Characteristics 2.6.2 Shopping habits 2.6.3 Attitude towards advertising 2.6.4 Differences in female and male 2.7 The role of package in consumer behavior 2.7.1 Consumer decision making process 2.7.2 Purchase decision 2.7.3 Product evaluation 2.7.4 Attitude and the relationship of behavior CHAPTER 3: CONCEPTUAL FRAMEWORK AND HYPOTHESES 3.1 Introduction 3.2 Conceptual framework 3.2.1 Packaging in Hong Kong 3.2.2 Conceptual model of the study 3.2.3 Mediation model CHAPTER 4: METHODOLOGY 4.1 Introduction 4.2 Research approach 4.2 .1 Exploratory research 4.2.2 Quantitative research 4.2.3 Pilot test 4.3 Sample frame

19-20 20-23 23-26 27 27 27-29 29 30-31 31 31-32 32-34 34-35 35-38

39 39 39-40 40-45 45-48

49 49-50 50 50 51-52 53

4.3.1 Sample of the study 4.3.2 Sample size and response rate 4.4 Questionnaire design

53 53 53

4.4.1 Importance of the different role of fashion packaging 53-54 4.4.2 Attitude towards packaging of fashion product/brand 55 4.4.3 Product evaluation of packaging as a marketing tool 55-56

4.4.4 Product evaluation of aesthetically appealing package 56-57 4.4.5 Demographics/Personal data 4.4.6 Scale of questionnaire 4.5 Data collection 4.5.1 Method of statistical analysis 4.6 Method of statistical analysis 4.6.1 Data analysis procedure 4.6.2 Descriptive Statistic Analysis 4.6.3 Reliability test 4.6.4 Independent t-test/paired t test 4.6.5 R, R square and adjusted R square 4.6.6 Standardized coefficient (Beta) 4.6.7 Linear regression 4.6.8 Mediation effect CHAPTER 5: FINDINGS AND ANALYSIS 5.1 Introduction 5.2 Date analysis and results 5.2.1 Descriptive summary of Demographic profile 5.2.2 Reliability test 66 66 66-68 69 57 58-59 59 59-60 60 60 60-61 61 61-62 62 62-63 63-64 64-65

5.2.3 Mean comparison of importance of the roles of fashion packaging 70-71

5.2.4 Mean comparison of the importance of new roles and traditional roles of fashion packaging 5.2.5 Means of generation ys attitude towards packaged fashion products 5.3 Hypotheses testing 5.3.1 Hypothesis 1 and 2 5.3.2 Hypothesis 3 and 4 5.3.3 Summary of hypotheses 1 to 4 5.3.4 Hypotheses 5 and 6 5.3.5 Summary of Hypotheses 5 and 6 5.2.6 Hypotheses 7a and 7b CHAPTER 6: DISCUSSION OF RESULT 6.1 Introduction 6.2 Major findings 6.2.1 The role of packaging 6.2.2 Consumer evaluation 6.2.3 Consumer purchase decision 6.2.4 Attitude 6.2.5 Gender CHAPTER 7: CONCLUSION 7.1 Conclusion 7.2 Implications 7.3 Limitations 7.4 Recommendations for future study 98 99-100 100-101 101-102 91 91 91-93 93-94 94-95 95-96 96-97 72-73 73 73-76 76-79 79-80 81-86 87 88-90 71-72

APPENDIX REFERENCES

LIST OF TABLES

Table 4.1 Sever-point Likert Scale for part one Table 4.2 Seven-point Likert Scale for part two to part four Table 5.1 Summary of demographic data Table 5.2 Summary of reliability test of section1, 2, 3, 4 Table 5.3 Mean importance score of the seven roles of fashion packaging Table 5.4 Means of different roles of packaging Table 5.5 Means of generation ys attitude Table 5.6 ANOVA table of hypotheses 1 and 2 Table 5.7 Model summary of hypothesis 1 and 2 Table 5.8 Regression result of hypothesis 1 and 2 Table 5.9 ANOVA table of hypotheses 3 and 4 Table 5.10 Model summary of hypotheses 3 and 4 Table 5.11 Regression result of hypotheses 3 and 4 Table 5.12 Summary of hypotheses 1 to 4

59 59 68 69 71 72 73 74 75 76 77 78 79 80

Table 5.13 Regression result to check the mediating role of attitude of hypotheses 6b 82 Table 5.14 Sobel test of hypothesis 5 Table 5.15 Multiple regression of aesthetically appealing packaging and attitude Table 5.16 Regression result to check the mediating role of attitude Table 5.17 Sobel test of hypothesis 6 Table 5.18 Multiple regression of aesthetically appealing packaging and attitude determines purchase decision and product evaluation Table 5.19 Sobel test of hypothesis 6a 86 85 83 84 85 82

Table 5.20 Independent Samples Test for significance of gender difference for significance of gender difference on purchase decision of AAP Table 5.21 Independent t-test for gender difference Table5.22 Sobel test of hypothesis 6b 88 89 88

Table 5.23 Independent Samples Test for significance of gender difference on product evaluation of AAP Table 5.24 Mean score of product evaluation of male and female 89 90

LIST OF FIGURES

Figure 2.1 A model of consumer response to product form Figure2.2 Consumer decision making process Figure 2.3 Attitude components and buying behavior

26 32 37

Figure2.4 A conceptual model of how packaging impacts product valuation via a dual logical-affective process Figure 3.1 Decision making variables of hypotheses 5 and 6 Figure 3.2 Conceptual framework Figure 3.3 Direct effect of MP and decision making Figure 3.4 Mediating effect of attitude of MP Figure 3.5 Direct effect of AAP and decision making Figure 3.6 Mediating effect of attitude of AAP Figure 5.1 Summary of mediation paths 38 43 45 47 47 48 48 87

To my

family

&

Kak-lit

Chapter 1 Introduction 1.1 Background of study In recent year, retail competition has become constantly complex and competitive. Marketers have been facing the most challenging task to target the markets as different promotional strategies have been developed and used to reach the target markets (Belch & Belch, 2004). Advertising is one of the ways to achieve the goals, but reaching the entire target market for most products is generally not a feasible prospect (Louv and Kimber, 2007). Many kinds of media have emerged which meant that it is becoming increasingly expensive and difficult to reach and communicate with consumers and potential customers. The average consumer is bombarded with anywhere from 250 to 5,000 media messages each day (Sthlberg & Maila , 2010). Consumers have been exposed to the advertising more than ever traditional media such as television, magazine, newspaper and billboards and of course electronic media for examples, Youtube and blog, all competing for our attention. Retailing today and in the future will include both buildings and cyberspace which means the market coexist two different types of shopping behavior. The experiences in live shopping trip and buy on-line are totally different (Sullivan, 2004). With the situation like that, all marketers still need to communicate with their customers in a live way effectively

and efficiently.

Packaging design is a unique and powerful tool in modern market environment. Visual packaging design acts as a silent salesman (Stewart, 1996; Rettie and Brewer, 2000; VanHurley, 2007). Packaging design is now becoming a big issue on promotion strategy as evidences prove that most of the consumers make their buying decision based on this criterion. Especially for todays young consumer, whose have learnt to shop and make their own brand decision sooner than the previous generation because their parents were out for work at their early age. Also, they are better educated, more discriminating and belongs to a smaller, younger household. Many households now have two wage earners-husband and wife-creating more discretionary income and changing many family traditions and lifestyles. They have been brought up with unprecedented choice amongst most consumer goods and services (Quelch and Kenny ,1994,) e.g 35 different kinds shampoos in Watsons and 60 separate varieties of Nike shoes. In this regard, package can extend its capacity to influence generation y. The youth market is believed to have the greatest potential market for packaging. Meanwhile, the ever-increasing number of products available and the constant addition of competitive brands, give the young consumer an increasing choice of

buying one product or the other, and let the retailer determine which product to display and which to neglect.

To convince the retailer to stock the product is one thing, but to convince the consumer to purchase or repurchase is another thing. It is no longer sufficient merely to put the product on the shelf or hang it on display. The simplistic preoccupation with pure shelf impact has given way to need for establishing a sophisticated marketing strategy for the product. This strategy includes a thorough understanding of the

consumers needs, the perceived quality of the product, its price, the retail environment in which it is sold and the advertising and promotional support that it receives. All have to work synergistically to create consumer demand and thereby sell the product. In this complicated process the package often plays a pivotal role in communicating the total marketing strategy.

The package design elements like colour, shape, text etc provide information that will influence the consumers image perception of the product (VanHurley, 2007). They may range from communicating the perception of the products quality, its efficacy, its efficiency, its gender relationship, or any number of characteristics about the product inside the package (Meyers and Lubiner, 1998).
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One of the marketing innovations of packaging is the combination of the unit package, brand identification and advertising. This trend has refocused the attention of marketers. A great deal of academic research continues to examine the roles of packaging in marketing mix. However, a reviewing of the literature reveals a little theoretical development in the area of packaging and its influence to Generation Ys. This research seeks to explore the relationship of visual packaging design and consumers purchasing behavior. Nowadays, more and more fashion companies like local brand Chocoolate, put more efforts on packaging rather than other variables including lower price, product quality, advertisings and so on, in order to influence Generation Ys decision-making. No need to mention the renowned jeweler Tiffany & Co., its blue box has obtained the world-wide brand identification.

Packaging takes on critical roles of influencing most of the Generation Ys buying behavior. Do package influence their decision-making by providing cues associated with quality, performance and buying intention? This research tried to provide a comprehensive answer.

1.2 Objectives Five objectives were established in this research. They are as following: 1) To demonstrate the marketingl and aesthetically appealing power (AAP) of packaging 2) To understand the attitude towards packaging by Generation Ys 3) How the variables (marketing and aesthetically appealing power ) influence the Generation Ys action in marketplace and how packaging influence their consumer behavior by providing cues associated with performance and appearance , perceived value and brand identification 4) To explore how these factors influence Generation Ys female and male 5) To see whether packaging has a positive effect / reflects truly value on marketing mix amongst Generation Ys

1.3 The reason of studying packaging Packaging is a new marketing strategy. The changing retail format and shopping habit of consumer is the major reasons for the popularization of this new marketing tool. It is better to understand the current retail environment for

1.3.1 New retail format Despite of the traditional retail stores, catalogs and various cables televisions shopping channels, todays consumers have more shopping choices with the emergence of Internet. Retailing can be categorized into in-store and non-store. The traditional stores also can be called brick and mortal which means the company possesses a physical store for operation and offers face-to-face consumer experience. Nowadays, more and larger chain operations set up. They advocate self-service. A new retail format has formed that a minimal sales force is available to help and inform the consumer. The burden of communication and information falls on the promotion. This is a significant factor in the rise of different kinds of promotion.

1.3.2 Changing shopping habit Source estimates that there are over 420 millions of internet users (International telecommunication Union, 2010). The impact of technologies advanced includes changing consumers shopping behaviors and preferences. Online marketing has been outplayed other kinds of non-store marketing like telemarketing, television shopping with the continuing trend of online shopping and e-commerce. Flavian, Guinal u and Gurrea (2004) stated that internet is growing very powerful and changing the way of transmitting and communicating information. For consumers, they can get wealth of information about the market inexpensively and quickly in anytime with any electronic devices. Consumer power is grow in strength since customers have more choices and bargaining power. Retail marketers also have long been fascinated by the Internet. This proves that the Internet has no sign to slowing down. For many people, Internet has become their first source of information for shopping since multitudinous of online stores established. However, according to Prendergast , Poon & Liu (2009), they believed that the freewheeling and unregulated nature of Internet makes it become the least creditability media. The increasing concern about the deception of advertising provides an opportunity for traditional stores on advertising. Traditional advertising cannot not replace by online marketing. It shows that the in-store advertising should never be neglected.
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1.3.3 Advertising trends Advertising or any of the marketing tools is not only to provide an opportunity for a product/brand to be seen. It should be outstanding in providing interaction, visual excitement, storytelling, creating shared experience at a mass level and making emotional connections. There is a trend that will be less and less focus on physical infrastructure and layers of bureaucracy to deliver the desired value by customers (Sheriff & Nagesh, 2007). The new focus will be the emotional attachment of consumer towards a brand or product. The most challenging task for company is to impress and attract consumers attention and persuade them to put the products into the shopping basket. Therefore, the key and the challenge of company are to turn every opportunity into powerful selling tool that achieve competitive advantages. That is the reason why investment in advertising continues to increase each year and year. Consumers now have become more in tune with packaging and have high expectation that the package should meet both of their functional and emotional needs. Sthlberg & Maila (2010) indicates that a new designed package can last five to eight years . Package has a long promotional life than other tools indeed. Packaging is trying to keep in step with the selling environments and changing lifestyles (Meyers and

Lubliner, 1998). Therefore, investing in package is a wise choice in this clutter retail environment.

1.4 Scope of study This research aimed to investigate the value-added functions of package. Afterwards, the influences of these value-added functions to generation ys consumer behavior were investigated. Generation y was chosen as the target market in my study. Questionnaire was conducted to this generation who age between 15 and 29. The reason of choosing this generation is because of their unique shopping habits and their increasing income. The result of this research aims to provide guideline to marketers to re-focus on the role of packaging. Through the course of this research, the attributes and value-added features of package are identified and analysis on the effect of package on generation ys buying behavior was conducted.

1.5 Significance of study The possible findings may help companies in some aspects: 1. Understanding generation ys attitude towards a packaged fashion product/brand 2. Enhancing the understanding of the effects of promotional power and visual appearance of packaging 3. Exploring the feasibility to make investment in the packaging 4. Repositioning packaging design to the forefront of marketing strategy 5. Exploring how packaging may strengthen customer buying intention by providing cues (promotion effect and visual appearance). Findings may serve as a guideline for long term marketing and branding strategies 6. Demonstrating the significance of packaging, as future opportunities for Hong Kong fashion retailers to sustain long-term profitability

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Chapter 2 Literature review 2.1 Introduction Package becomes part of our life. When you walk on a street or come into a store, you can see almost everything with a package. The traditional role of package has been changed nowadays. This is a consequence of the changing retail format and rising competition. The main objective of present study is to investigate the consumer behavior of generation y towards fashion packaging. In order to provide an understanding of packaging in influencing generation y behavior, the reviews of literature review is organized accordingly. First, the definition and roles of package is examined. Then, previous academic developments and studies related its value-added functions are reviewed. This part also discussed the impact of two different cues (package attractiveness and promotional power) on generation y s' product evaluation (perceived quality and perceived value) and subsequently, their behavioral intention (purchase decision). Moreover, customers' personality trait (attitude) was explored in this study and is considered as mediator.

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2.2 Packaging 2.2.1 Definition of package and packaging In many literatures, the terms packaging and package are interchangeable. These terms are relevant, in particular, to our understanding of packaging and advertising in fashion industry. Klimchuk & Krasovec (2006) defined package is a term use for physical object that have containment purpose. The objects like carton, container, box or bundle which can prevent leakage and disintegration can also be regarded as package in this sense. It can also refer to the wrappings or covering of an object. This amphiboly is broad and somehow can be problematic in practice where there is a need for distinguishing the expanded role of package. The phrase package refers to the production of the process of packaging (Meyers, 1998). This generic term does little to express the distinct nature of this dynamic design medium or its planned function to contain, transportation, dispense.

This study focuses on the changing roles of packaging, therefore the definition of Meyers (1998) was adopted that a package is a noun for describing the protection, containment and identification purpose while packaging is a verb- reflecting the ever-changing nature of the medium.

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Compared to other marketing information like pricing, distributing, packaging received little academically study relatively. As the functions of package are changing from time to time, there is no single definition of package. Olson and Jacoby (1972) described package is the attributes far beyond the physical characteristics of the product and is considered as an extrinsic attribute of the product, while Zeithaml (1988)s means-end approach considered packaging as an intrinsic attribute. (i.e. one that cannot be changed without altering the nature of product itself) . In this regard, package which is part of the physical composition of the product is intrinsic while the information appearing on the package is considered as an extrinsic attribute. This thesis conceptualizes packaging as an extrinsic attribute.

2.2.2 Package design The package has an appeal to the shoppers impulse: the design elements like colour, size, shape, even the shelf position of the package (Pilditch, 1973).

Bloch (1995) interpreted package design or its form makes contribution to a products success. He also presented that design characteristics like forms, colours, materials, shape or even ornament is all necessary in designing a package. Hayes (2009) exercised food industry as an example and defined package design is a means use
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both verbal and nonverbal message to communicate with consumers.

Bix , Rifon and Lockhart (2003) considered packaging functions and environment as one entity, therefore package is no longer mere a physical container or protector (Stewart, 1996). The potential of influencing consumer behavior is counted. He went on to propose a concept packaging matrix. In this concept, packaging has three functions, namely protect, utility and communication exercise in three environments: human, biosphere and physical. Package elements involved in the part of communication, which is considerably relevant is this thesis, the design elements including brand name, graphics, material, shape, photographs and text. The ultimate goal of creating a package is to maximize the intersection of each function and environment without diminishing performance at other intersections (Nilsson and Ostrom, 2005).

2.2.3 Package at different buying stage Packaging has different functions at various consumption stages. Ghoshal (2010) considered some of the package is visible at the time of purchase and some is not visible before or at the time of purchase. Evident examples in fashion industry are cosmetics and perfumes. These products can be regarded as impulse products which
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products are bought without prior plans (Liao, Yung and Chu, 2009). These visually appealing package design can attract customers attention and arouse their interest immediately especially at the point of purchase situation.

The invisible package refers to the paper shopping bags and shoe boxes etc. These packages do not affect the purchase decision but can obtain a promotional effect when consumers carry them around the street (Stewart, 1996). Both of these packaging are study target in this research.

2.2.4 Package components Generally speaking, package elements can be viewed as design elements (Orth, Limon and Kahle, 2009; VanHurley, 2007; Clement, 2007; Meyers 1998). The design elements can be distinguished into two blocks: graphic components and structural components. Graphic components including color, typography, shape and image while structural components includes package size, shape and the materials used (Ampuero and Vila, 2006). Combination of the right package elements can excite the consumers in a way to influence their feeling towards a product through sight, taste, smell, hear and touch (Meyers, 1998). The followings are regarded as the most common design components of package and can be named as communicators (Stern, 1981):
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Color: Color is probably the fastest and most important visual communicator (VanHurley, 2007). Colors have the advantages of being able to set a mood immediately and then assisting consumer purchase intention. Consumer has been preconditioned to react to color as a stimulus.

Shape: Consumers identity certain products merely by the shape of the package. Package shape can lend an air of femininity or masculinity. Besides, shape can also communicate a feeling of solidarity and quality (Stern, 1981).

Typography: It conveys product information in a way that is different form color and shape. It communicates through language (Meyers, 1998). Typography becomes the advertiser as well as identifier. It can be the prime package identification elements or supportive element (Stern, 1981). Texture: Consumers touch the package and the texture can reinforce their preconceived ideas of how package for certain products should feel and reinforces each of the other communicators (Ghoshal, 2010; Peck and Wiggins, 2006).

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2.3 The changing role of packaging Recently, researchers shifted the focus to the communication impact of packaging and the importance of packaging is recognized in recent research. The roles of packaging range from being simple and functionally-focused to more extensive interpretations (Lonv and Kimebr, 2007).

2. 3.1 The functional role of packaging Its rather obvious packaging was served as the basic function of transportation in the past decades. Package was created for protective reason and the main purpose is for holding and transporting food and beverage. Griffin and Sacharow (1972) agreed with that, the main objective of package is to make transportation easier, prevent spillage and contamination. Olson and Jacoby (1972) designated package designed to avoid the products being unprotected along the distribution channel and to ensure the final products are in good condition . 2.3.2 Marketing role of packaging Due to industrialization, technical innovations and revolution in our ways of shopping, the marketing strategies emphasis from day-to=day product sales to looking for ways of building long-range brand strategies. The role of packaging from protect, contain
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and delivery devices made great progress to achieve marketing objectives (Ghoshal, 2010; Capsule, 2008; Meyers & Gerstman, 2005; Nilsson & Ostrom, 2005; Stewart, 1996; Underwood, 1996). Pilditch (1973) was the first person to introduce the new role of package. He spotlights package being a silent salesman and positions it as a new force in marketing. Pilditch (1973) believed package has the responsibility to sell the goods it contains. Having a package that can be seen recognized and linked both in advertising and in the shops is the task of package (Selame and Kolligian, 1982). Capsule (2008) took packaging to the next level. He stated that package is far beyond the basic functions of physiological and safety. It can be a sense of belongings, fulfill self-esteem and self-actualization.

In fashion industry, package is is becoming an integral part of marketing strategy and a part of product attributes to provide a degree of benefit to customers rather than only the physical functions. A package can be regarded as informer, advertiser and even image in marketplace (Selame and Kolligian, 1982). Packaging It must protect what it sells and sell what it protects (Briston and Neil, 1972). Klimchuk and Krasovec (2006) believed that packaging is part of the bigger pictures of brand. By now, branding has become a marketing hotpot that radiates into every niche of the communication media. Nowadays, a brand is widely associated with
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variety of people, service, people, places, ideas and concepts. For packaging, brand is a name, a mark of ownership and the representation of products, services, people and places. From a marketing standpoint, the association of the packaging with the product from the tangible physical structure and visual identity to the tangible emotional connection-becomes inextricably linked to the legitimacy and reliability of the brand. It is not possible to separate the consumers perception of the brand from packaging.

2.3.3 Marketing mix Package is traditionally regarded as a component of marketing mix (Olson and Jacoby, 1972). Package considered as a part of product when package can communicate to consumers through the information (Hoegg, 2006). It shares the same function with product that is contributing to the product performance, including maintains shelf-life and ease for use (Rigaux, 1982). It can also be an indicator of the price point at the point-of-purchase situation (Bix et al, 2003). A estimation on price will be generated by simply judging the packaging. Package has become indistinguishable from the product it contains (Pilditch, 1973) when it can influence consumers perception, appeal to their emotions and motivate desire for the product before the consumers ever see the actual labels.
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Besides product, a well-performed objective of packaging is promotion. People understand and remember symbols easier and faster than words (Hayes, 2009). Promotion can be the vital key to the development and position of brand image (Diamond, 1996).Package can use for identifying and differentiating brands or products. A package can be informative, provocative or seductive etc, to show its unique personalities that communicate product attributes to alter consumers brand choice (Stewart, 1996). In Keller (1991)s research, he discovered that visual cues from advertisement that were placed on product package enhanced the accessibility of ad-related details of that ad and improved product evaluations.

2.4 Value-added Surprisingly, the added-value features have often been overlooked by marketers because the competition was not that keen in the past. In order to obtain the particular influence of package on consumer behavior, the value-added functions of package must be analyzed in great detail (Stewart, 1996).

Value is the ratio of quality to price. Cudmore (2002) stated value means the same quality at a lower price or a lower quality at lower price. Value also refers to the
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difference what consumers give up for a product and the benefits they receive (Blackwell 2006; Miniard & Engel, 2006). Add value can be regarded as anything which provides benefits for the consumer that are additional to those related to the products promised performance (Stewart, 1996). This research concentrates on the two subliminal aspects of value-added that can be use to identity the brand or product, product evaluation and promotion, that are marketing power and package appearance. The physical aspects such as make the use of product easier and easy product storage are ignored.

2.4.1 Effect of value-added functions By the classification of Meyers & Gerstman (2005), three kinds of package perform value-added functions:

Image-creating package Packaging can communicate the personality through a combination of design elements. The variety of visual presentation and their combination can help establishing the brand image and brand identity by conveying different message (Underwood, 1996; VanHarley, 2007). Evident example is the jewelry box of Tiffany & Co, the blue box implies that there is something precious inside
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without opening the box. Packaging reflects the brand image, consumer come to recognize and visually identify with the values, qualities, features and attributes of the brand (Stewart, 1996).

Communication package In today fashion retail environment, it is not rare for the product sameness or similarity. With the vastness competition, many of the retailers overlap similar products. Shoppers have to decide among numerous choices. Package serves to visually communicate product differentiation and avoid consumer confusion (MacCallum, 2004).Without a package, each product would look remarkably similar. Package is ultimately responsible for determining their products distinguishing characteristics and providing a clear contrast between products.

Sensuous package The objective of creating sensuous packaging is to create a positive perception of purchasing the products. Package tries to evoke our emotion to influence our purchase decision. Many cosmetics and perfume packages are designed to convey a sensuous reaction, such as associate with beauty, desire, love, seductiveness and luxury (Liao et al, 2009; Stewart, 1996). The package that is
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invisible at point-of-purchase can also create a sensory response. The shopping bag or box can communicate the perception of what you bought and where you bought it (Stewart, 1996). Beyond simply being a means of transporting objects from a store to home, shopping bags provides the opportunity to convey the special characters of a store. When people carry a Gucci shopping bag, we may associate with premium items inside

2.5 Aesthetic Another important attribute of package is aesthetics which have significant impact on influencing consumer preferences and choices. Aesthetic is used in reference to either sensitivity to beauty or to the branch of philosophy (Veryzer, 1993).

Eckman and Wagner (1994) stated that aesthetics is the study of artistic phenomena. While the term aesthetics is associated with all the fine art-music, literature, dance, painting and sculpture- it is used in reference to the visual arts. As such, aesthetics is often extended to the design of everyday object, such as apparel, that are consume visibly. Traditionally, aesthetics dominated fashion industry in only a few categories, most notably of the design of skincare and perfume. Due to the keen competition, aesthetics provide marketers another way for differentiation. Literature has
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acknowledged that any products can be viewed in the sense of aesthetics (Holbrook, 1985; Hirschman 1983; Olson 1981), which means outward appearance of package can also be appreciated in aesthetics. This perspective provides an insight on the role of aesthetics in consumer behavior.

Aesthetics response Aesthetics is a stimulus and is important for the first impression to consumers for the product and brand (Cox, 2002). For fashion product, people consider aesthetics as a visual communication to be one of the primary advantages when buying products (Workman, 2007). Consumer nowadays began to demand product that were both functional and attractive. In response, package appearance serves as a tool to influence consumer searching for product and play an important role in shaping their preferences and choices (Creusen, 2005). Besides, the appearance of a product not only influences the aesthetic value of a product, but also the perceived functional and product value (Workman, 2007; Creusen, 2005).

Aesthetics can be regarded as the design of an object (Veryzer, 1995; Creusen and Schoormans, 2005). Lauer (1979) stated that design elements (e.g line, shape, color, etc) and principles (e.g contrast, proportion, balance etc) are essentially for consumers
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to form their perception towards an object or a visual display (Lauer, 1979). Such design elements and principles have a strong impact on the formation of aesthetic response (Veryzer, 1993).

Although literature does not have a general agreement on aesthetic response, there prior researches do seem to share a consistent concept that aesthetic response involves the registering of affect or pleasure due to the conscious or unconscious influences of stimulus characteristic of an object (Berlyne 1974). In a general sense, an aesthetic response refers to how a person reacts to an object (e. g. product). The reaction is based on two criteria: perception of the object (Berlyne 1974) and composition of the physical features (i. e design) of the object (product) (Veryzer and Hutchinson, 1998).

Bloch (1995) proposed a model regarding consumer reaction towards product form. In examining the proposed model, the first component to be discussed is product form itself. As Bloch (1995) suggested, a product's form represents a combination of elements and to achieve a particular sensory effect. The product form, once developed, may stimulate a variety of psychological responses. Cognitive and affective responses interact and may occur simultaneously. After that, psychological responses to design lead in turn to behavioral responses. The behavioral response can be described as
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either approach or avoidance. Approach behaviors reflect an attraction to a design and include spending time in a site and exploring it. Avoidance behaviors represent the opposite of approach responses.

The level of package aesthetics affect how consumers perceive and categorize a product (e.g., product class, complexity level/technological sophistication), influence their attitude toward its use (e.g., difficult to use), and shape their perception of the risks involved in purchasing the product (Veryzer, 1995). Bloch (1995)s proposed model is shown as following:

Psychological response to product form

Product form (design)

Cognitive response Product beliefs Categorization Approach Affective response Positive response Negative response

Behavioral Response Avoidance

Figure 2.1 A model of consumer response to product form (Bloch, 1995)

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2.6 Generation Y 2.6.1 Characteristics This study target in this research is generation y. Generation y, by the broadest definition, were born between 1977 and 1994 (Broadbridge, Maxwell and Ogden, 2007) and are the children either of generation x or baby boomers (Bakewell and Mitchell, 2003). Many of researches have been studied the characteristics of this generation as they has unique features compared to the previous generation. One of the outstanding features of generation Y is they have a strong sense of entitlement (NAS, 2006). They desire for quality of life and want the best of everything. From their young age, they have been taught and told by the media and parents that they can have what they want. They desires for quality life and product that can offers the best to them. As NAS (2006) mentioned, it makes generation y driven and ambitious, with high expectations. It can be said that they are brand-conscious, perfectionism, materialism and hedonism towards fashion.

2.6.2 Shopping habits Bakewell and Mitchell (2003) states that generation Y has been acculturated into a unique shopping environment that consists of more opportunities and reasons to shop than ever before. Generation Y are now grown up and consisting more and more of
27

working couples. Their shopping behavior is action-oriented, far less conventional, and less product loyal than their parents were (Meyers and Lubliner, 1998). Customers may not surprise to see that the new products are being introduced in a short period to satisfy their wants and needs.

Todays young consumers live in an era in which shopping is far beyond a simple act of purchase (Bakewell and Mitchell, 2004). Previous findings have indicated that this generation has tremendous buying power (Sullivan, 2004; NAS 2006).This consumer group is known for its large disposable income and is growing at a very fast rate. Individuals within this generation make for a profitable and loyal customer base because this group is often typified as being highly consumption oriented and sophisticated in relation to their tastes and shopping preferences (Belleau, Summers, Xu and Pinel, 2007). Shopping to them, is not only an act of purchasing, it is a combination of social activities and leisure activities. Literature related to generation y describes they are a generation that are born to shop ( Bakewell & Mitchell, 2003). They view shopping as being enjoyable and entertaining experiences of looking for and choosing products. Besides, this generation is facing an over-choice shopping environment. With the wealth of information available in Internet, hundreds choices

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of television channels and magazines has encouraged generation y to switch to another choice if they do not get what they want from one source.

2.6.3 Attitude towards advertising Technologies advanced and mass media plays a crucial role in shaping generation Y attitude and judgment. They can get information from many sources. Concerning on their attitude towards advertising, this generation is particularly attracted by advertising that is individualistic and anti-corporate (Wolburg & Pokywczynski, 2001). Research shows that young consumers are easily get bored by repeat advertising (Sheriff & Nagesh, 2007). They can be regarded as repetition avoiders.

Besides, generation y are said to be as millennial and internet generation (Broadbridge, Maxwel and Ogden, 2007). They are addicted to Internet. The most up-to-dated information can be found and transmit in an extremely fast rate. Generation Y who has grown up in this media-saturated, brand-conscious world, they respond to advertising differently and prefer to encounter marketing messages in different places or from different sources (Belch & Belch, 2004). Therefore, marketers have to transit their messages to this generation in a different way in order to stand out above the competitors.
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2.6.4 Differences in female and male Traditionally, the distinctive role of male and female in society are defined. Male are associated with masculinity while female are associated with femininity. The value, beliefs and attitudes they hold are entirely different. It can be called as gender self-schema (Terjesen, Vinnicombe and Freeman, 2007). Therefore, there are great individual differences in explaining their way to shop.

Gender is a significant factor in explaining the shopping behavior of generation y. Shopping is a pleasure activity for both male and female, but female find it easier than men to obtain enjoyment from shopping (Campbell, 1997). Also, female are socialized into being aesthetically skilled gender and hence find it easier than males to appraise and assess aesthetically significant products (Campbell, 1997).

Buttle ( 1992) illustrated that men shop but with less frequency than women do. They could be described as specialist-shoppers. Moreover, most male perceived that shopping is a females activity. However, it is not surprised to see females buying cars or audio products and males buying skincare nowadays (Bakewell and Mitchell, 2003). Generation y lives in a more gender-role burring environment than generation x than ever (Bakewell and Mitchell, 2003).
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In this gender-role burring society, is

this tradition still keep up with the changes of society? A hypothesis is set up based on this fact and was explained in detailed in Chapter 3.

2.7 The role of package in consumer behavior Many researchers have examined the effect of marketing has on consumers evaluation, brand choices and brand attitude. This study area can be regarded as consumer behavior. The purchase can be a long and detailed process and incidental as impulse purchases. The study of consumer behavior not only provides a framework for identify consumer needs and target markets, but it also enables the anticipation of consumer response to marketing action.

2.7.1 Consumer decision making process The model of consumer decision making can be used to examine the judgment of consumer when choose between product alternatives (Kwan, 2006). Blackwell, Miniard and Engel (2006) defines CDP as a model captures the activities that occur when decisions are made and shows how different internal and external forces interact to affect how consumer thinks, evaluate and act. Some organizations use the CDP model to identity relationships between variables that affect consumer decision making. It is essential to examine the process on account of the several separate
31

decisions that collectively comprise buy or not buy decision. Package is categorized as external factors that have impact on consumer decision-making process. Using the model of consumer decision process, packaging engages in all process of consumers in their decision making (Ghoshal, 2010). As this study mainly focuses on the marketing power of packaging, two phases was highlighted: evaluation and purchasing decision.

Problem recognition

Information search

Alternative evaluation

Post purchase evaluation

Purchasing decision

Figures (2006)

2.2 Consumer decision making process Blackwell, Miniard and Engel

2.7.2 Purchase decision Intention for purchasing is the inner force that drives and energizes consumers actual purchase (Solomon & Rabolt, 2009). Purchase decision is defined as a consumers making choice about which product and service to buy. The theory of reasoned action
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suggested that purchase behavior can be explained based on two criteria: attitude and perception of social pressures to perform or not perform the behavior (Madden Scholder and Ajzen, 1992). Based on the theory, Belleau et al. (2007) proposed favorable attitude had the positive impact on influence purchase intention. A higher purchase intention implies a higher probability to buy (Solomon & Rabolt, 2009). External variables may also have significant influence on purchase intention such as demographics, fashion involvement, price/quality perception and personality traits (Belleau, 2006).

Moreover, according to Ghoshal (2010), touching can evoke different reactions in consumers when they interact with a package. Engaged in touch can arouse consumers interest for the products and create positive attitudes towards the products, which in turn may trigger their purchase decision (Peck & Wiggins, 2006). This powerful sensory touch has been ignored in the prior researches related to packaging. This argues for examining the role of packaging in particular.

When consumers are faced with a multitude of choices, especially in an unfamiliar product category, the packaging is a source of information (Vanhurley, 2007). Research has shown that at least 70% of brand choices are made in store and some
33

68% of purchases are not planned in advance (Stahlberg & Maila, 2010). Research showed that higher fashion involvement and positive emotions created a positive effect on impulsive fashion-oriented buying behavior (Park, Kim and Forney, 2006).

2.7.3 Product evaluation A consumer judgment and evaluation of a product or brand is a result of a host of variables. In a product evaluation situation, consumers may rely on certain cues that can be encoded and utilized to categories and evaluate the product. Package design is one of the extrinsic cues ( Underwood 2003; Underwood and Klein 2002; Underwood and Ozanne 1998; Oslon and Jacoby, 1972) and takes on a heightened importance for many consumer nondurables when consumers make decision at the point of purchase. Package often obtains the first sight and first truth of customers .In the case of food items, shoppers often rely on a package to develop an first impression of the items in its prepared state or non-final forms (Underwood, 1996). In the other hand, some factors that far beyond the physical characteristics of the product may also influence consumers perceptions. The perception may range from communicating the perception of the products quality, its efficacy, its efficiency, its gender relationship, or any number of characteristics about the product inside the package. Consumers utilize on extrinsic attributes cues on the package when they are unfamiliar with the
34

product category (Underwood, 1996), such as price, country of origins. This theory is known as cue utilization theory.

Ghoshal (2009) found that more appealing packaging positively impacts product valuation. Attitude toward the product is superior when presented in appealing packaging. Emotions evoked by appealing packaging are stronger and more positive than those evoked by ordinary packaging. While it may be possible to extract more consumer surplus via exposure to appealing packaging before purchase, superior packaging may also play a significant role in enhancing the post-purchase product usage experience by evoking positive judgments and emotions, which impact product satisfaction and loyalty measures.

2.7.4 Attitude and the relationship of behavior Behavior is strongly affected by the consumers attitudes towards a brand or product. Attitudes are a learned orientation or a predisposition to a given situation, person, object or idea resulting in a tendency to respond favorably or unfavorably ( Easey, 2009). Literatures had been illustrated attitude as a mediator of affecting consumer perception or behavior towards a certain object (Homer, 1990; Blech, 1986; Belch et al, 1983). Axelord (1986) suggested that attitude have impact on consumers
35

switching behavior and repeat purchasing. Fashion marketers are interested in consumer attitudes as they are seen to be closely linked to behavior. Rosenberg & Hovland (1960) proposed that there are three components to an attitude: cognitive, affective and conative (Figure 2.3) . Cognitive refers to knowledge or information possessed about the product, services, image, store or prices. The affective dimension is concerned with consumer feelings about marketing offerings and is measures in terms such as like and dislike or good and bad. The conative aspects provide the behavioral aspects of attitudes and are usually expressed in terms of intention. Several studies have shown that positive attitudes towards a fashion product do not always result in higher sales. Easey (2009) and Ajzen & Fisbein (1980) argued that the model oversimplifies matters that attitudes emerge or become manifest after purchase. When considering the point that attitude may emerge or change after purchase, it should be noted that post-purchase with fashion products can leads to attitude change, both positive and negative (Easey, 2009).

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Cognitiv e

Awarenes s Knowledge

Liking Affective Preference Conviction Conative Purchase

Figure 2.3 Attitude components and buying behavior (Easey, 2009) Beside, Ghoshal, Boatwright and Caganl (2009) proposed a model illustrated the packaging influence on product valuation and attitude. According to figure 2.3, it showed that exposure to packaging elicits a reaction (attitude toward packaging) which in turn evokes specific thoughts or judgments and feelings or emotions (affective reactions) that elicit an overall reaction toward the featured product (attitude toward product), which finally impacts behavior. This also follows Burke and Edell (1989)s characterization of attitude to advertising as consisting of cognitive and affective elements.

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Figure 2.4 A conceptual model of how packaging impacts product valuation via a dual logical-affective process (Ghoshal, Boatwright and Caganl, 2009)

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Chapter 3 Conceptual framework and hypotheses 3.1 Introduction Chapter 2 has reviewed the literature about packaging, its value-added functions and its impact on consumer behavior. It revealed that the relationship between packaging and the formation of the consumer behavior is important and should not be neglected. Based on the literature review, conceptual frameworks on the proposed relationships of variables are proposed and discussed. Then, hypotheses of these relationships are also elaborated.

3.2 Conceptual framework 3.2.1 Packaging in Hong Kong Hong Kong has long been flooded with fashion retailers adopting package as one of their brand identification tool, especially for international high-end brands such as Herms, Louis Vuittion and Chanel. The package design is ranging from the box, the shopping bag or even the ribbon for wrapping. As mentioned before, products like

food, package is a crucial cue for consumers evaluation of the quality (Underwood, 1996). Consumer behavior may not be the same towards different types of products involved. The present study focuses on the fashion industry. Unlike food items, the
39

package in fashion industry always designs to attract customers prior to quality guarantee.

With the rise of market opportunities in Hong Kong in recent year, local brands with such as Chocoolate and Chapel, have adopted several marketing strategies to promote and strengthen their brand image and package design is their main strategy. In addition, the package is designed to be signature and characteristic in order to attract potential customers and expand their customer base into the youth market. While visual cue is an influential factor for first sight of consumers (Folkes and Shashi, 2004), the level of aesthetics and marketing power cannot be neglected. For evaluating the effect of marketing power and aesthetics packaging in fashion industry, the scope of the current study is limited to these two specific value-added functions and considered as main functions of fashion packaging.

3.2.2 Conceptual model of the study With reference to chapter 2, researchers have already admitted that packaging nowadays severs as marketing tool to influence consumer buying decision (Ghoshal ,2010; Capsule, 2008). For packaging value -added dimension, current
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research adopted were mainly sourced and employed the theory of Ghoshal (2010), where two functions, namely marketing power and aesthetics were included. In order to obtain better understanding of packaging in Hong Kong fashion industry, only the most related consumer behaviors were chosen. Successful result of these dimension create a new guideline for marketers to reposition packaging in marketing strategy.

In addition, purchase decision and product evaluation is used extensively to examine the effect of food packaging in the past research. The package design elements such as shape (Priya and Greenleaf, 2006; Folkes, 2004; Yang, Sha and Priva 2005), graphics (Bone and France, 2001), colours (VanHurley, 2007; Unerwood, 1996) etc on food packaging are often evaluated and become desirable elements for a successful package. However, there is relatively little research focus on the combination of these elements. The combination of elements on product appearance created a sense of aesthetics (Creusen and Schoormans, 2005). This perspective has been overlooked by marketers. The conceptual model of this research aims to redirect the focus and emphasis the aesthetics as one of the main functions. Figure 3.1 showed the first four hypotheses and depicted a relationship between package and two dependent variables: product evaluation and purchase decision (hypotheses 1 to 4).

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H1:

A higher level of marketing power of package strengthens consumers

purchasing decision H2: A higher level of marketing power of package implies a more positive

product evaluation H3: decision H4: A higher level of aesthetic level of package implies a more positive product Aesthetically attractive package strengthens consumers purchasing

evaluation

Hypotheses 5 and 6 are related to mediation effect were established. These two hypotheses was an extension of the first four hypotheses. The applied model seeks to identity and explicates mechanism that underlies an observed relationship between an independent variable and a dependent variable via the inclusion of a third explanatory variable, known as a mediator variable (MacKinnon, 2008). A variable may be considered a mediator to the extent to which it carries the influence of a given independent variable to a given dependent variable. Since attitude can largely explain behavior. The conceptual model proposed that attitude stands between the independent variables (marketing power and level of aesthetic) and dependent variable (purchase decision and product evaluation). This research aims to investigate
42

the process (attitude) by which package influence consumer behavior (Figure 3.4 & 3.6). If the mediation effect is occurred, the effect of the packaging on the behavior will reduce upon the addition of the mediator to the model.

Besides, only two phrases in decision making were involved in this study and have explained in details in chapter 2. In hypothesis 5 and 6, two behaviors were combined into one variable: decision making (Figure 3.2). The objective of the combination is to evaluate the influence of package towards the overall consumer decision. In addition, the cause of decision making is the conjunction of product evaluation and purchase decision. A higher product evaluation may push ahead with the decision to buy, thus a decision is cited.

Product evaluation Decision making Purchase decision

Figure 3.1 Decision making variables of hypotheses 5 and 6

H5:

Attitudes towards the marketing packaging partially determines decision

making
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H6:

Attitudes towards the aesthetically appealing packaging partially determines

decision making

Hypotheses 7a and 7b are a pair of hypotheses. Chapter 2 pointed out the current society is becoming gender-role burring. Their way to shopping tends to be similar nowadays. Theses hypotheses intended to test if gender difference is an important factor of explaining different behavior towards the aesthetically attractive package.

H7a:

Males purchasing decision is more easily to be affected by aesthetically

attractive package than womens

H7b:

Males product evaluation is more easily to be affected by aesthetically

attractive package than womens

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H1: Hypotheses 1

H2: Hypotheses 2

H3: Hypotheses 3

H4: Hypotheses 4

H5: Hypotheses 5

H6: Hypotheses 6

Figure 3.2 Conceptual framework

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3.2.3 Mediation model Figure 3.4 and 3.6 demonstrated the proposed mediation models in details. They are in accordance with the causal steps that suggested by Baron & Kenny (1986). The following conditions should be fulfilled as to identify the mediating role: (i) Total effect consisting of PP / AAP as independent variable with purchase decision and product evaluation as dependent variable should be significant ( path c) (ii) Regression model consisting of attitude as dependent variable with PP / AAP as independent variable should be significant. (path a) (iii) Regression model consisting of attitude as independent variable with purchase decision and product evaluation as dependent variable should be significant with controlled for PP/AAP (path b ) (iv)The direct effect of PP/AAP on purchase decision and product evaluation adjusted for attitude must be non-significant. (path c)

When the above four steps are fulfilled, complete mediation is said to be occurred in which PP/ AAP no longer affects purchase after attitude has been controlled and so path c' is zero. Meanwhile, partial mediation is the case in which the path from PP to purchase decision and product evaluation is reduced in absolute size but is still different from zero when the mediator (attitude) is controlled.

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Hypothesis 5

Package
(Marketing power) c

Decision making

Figure 3.3 Direct effect of mP of decision making

Mediator a (Sa)

Attitude
b (Sb)

Package
(Marketing power)

Decision making
c

Figure 3.4 Mediating effect of attitude of MP Direct effect: c Indirect effect: c Mediation effect: ab Total effect : c + ab

a, b, and c' are path coefficients. Values in parentheses are standard errors of those path coefficients.

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Hypothesis 6

Package
(Aesthetically appealing)

Decision making
c

decision

Figure 3.5 Direct effect of AAP and decision making

Mediator

a (Sa)

Attitude

b (Sb)

Package
(Aesthetically appealing)

Decision making decision

Figure 3.6 Mediating effect of attitude of AAP

For both models: a = raw (unstandardized) regression coefficient for the association between independent variable and mediator. sa = standard error of a. b = raw coefficient for the association between the mediator and the dependent variable (when the independent variable is also a predictor of the dependent variable). sb = standard error of b.

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Chapter 4 Methodology

4.1 Introduction This research aims to investigate how packaging influences generation ys consumer behavior by providing certain cues and the objectives of this study were discussed in Chapter 1. To ensure the reliability and accuracy of the data collected, a series of preliminary and pilot test were performed and the research approach were discussed in this chapter. Research instrument, sampling method as well as the questionnaire design are presented in this chapter with detailed clarification.

4.2 Research approach The present research was composed of two phases. For the first phase, it involved the field study. Definitions, principles and theories were studied to have better understanding of the basic concepts and knowledge to conduct the research as well as to construct the questionnaire. Ideas for the construction of questionnaire are derived from an in depth overview of the assumptions and concepts proposed by academic researchers. Statements about the marketing power and visual appealing package were developed from these theories and conceptual ideas. The second phase was the
49

development of questionnaire. The survey created after a pilot test to enhance the reliability, validity and practicability of the questionnaire.

4.2 .1 Exploratory research To provide insights and understanding of the nature of the marketing phenomena related in this research, related definitions and theories were researched from the publication, academic journals and the Internet to provide fundamental knowledge in literature review section. Exploratory research also served to define the research areas fully and helped to formulate for further investigation. Afterwards, all the appropriate variables were established and their connection has defined. These valuable secondary data are served as basic background information for the present study and provided insight for development of the research.

4.2.2 Quantitative research In this research, quantitative research was employed. Further, hypotheses testing and statistical analysis were utilized. Besides, questionnaire was adopted as an effective tool for the collection of primary quantitative data. Details of the questionnaire design and setting would be discussed in the following parts.

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4.2.3 Pilot test Prior to the final draft of the questionnaire, a pilot test was carried out to eliminate any possible difficulties or confusions with the questionnaire. The main objective is to detect weakness in questionnaire design and instrumentation. Pilot test can also provide proxy data for selection of probability sample and preliminary analysis to ensure the questionnaire is useful in finding out the results. According to Malhotra et al. ( 2007), pilot test is an effective tool to test the questionnaire on a small sample of participants for the purpose of improving the questionnaire by identifying and eliminating potential problem.

The pilot test sample size is 20. The proportion adopted was 10:1. Respondents need not to be statistically selected in the pilot test. According to Malhotra (2007), the

pilot test sample needed not to be large, acceptable range varying from 15 to30 respondents. All aspects of the questionnaire have tested, including question content, wording, sequence, form and layout and instruction. After collecting the feedback, editing was done to correct the ambiguous wordings and unclear format before mass distribution of the questionnaire.

There were two remarkable comments given by the respondents.

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Firstly, some participants expressed the misunderstanding of the phrase marketing power of packaging and aesthetically appealing. To strengthen the identification for specific terminologies in the questionnaire, definitions of marketing power of packaging and aesthetically appealing packaging are added before each section as guidelines for respondents. Guidelines provided are as followings:

Packaging is a tool that connects form, structure, material, colour, imagery, typography and ancillary design elements with fashion product information and brand name. For example, you may think about the brand Tiffany & co. when you saw the blue jewelry box with white ribbon.

Packaging as a marketing tool which has an appeal to the shoppers impulse. Aesthetically appealing is a package is visually attractive and can provide you a pleasant feeling.

Second, respondents were confused when answering part two because of the ambiguous ideas of fashion packaging. Thus, an additional image was added in the beginning of part two in order to make readers know, what is fashion packagedproduct, what is without packaged-product. (See Appendix)

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4.3 Sample frame Sampling frame is a representation of the elements of the target population. In this research, the respondents must be generation y and could read and understand scale wordings, regardless of gender or demographic differences.

4.3.1 Sample of the study Sampling was a vital process of a survey approach. Useful data were collected form a subgroup of particular target population. Considering the target group of participants, all generation y was included and for which the present research would like to generalized. As a result, sample for the study was drawn from the target population.

4.3.2 Sample size and response rate Overall, a total of 207 respondents were drawn in the survey sample. The response rate is 100%. Bryman & Bell (2007) suggested the general acceptable response rate should be over 60% while over 85% can achieve an excellent result.

4.4 Questionnaire design The questionnaire consists of five parts and total fifty questions. Forty-six of the
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questions were set to investigate the packaging influence towards generation y upon two mentioned variables: marketing power and aesthetics. Four questions were about personal data at the end of questionnaire. All questions in the questionnaire were structured, including multiple choice, dichotomous and scale.

4.4.1 Part one

Importance of the different role of fashion packaging

In this part, seven questions were set. Questions were developed from the classification developed by Selame and Kolligian( 1982) and were set to find out the relative importance of functions that a fashion packaging perform. Three factors (container, protector and easy for storage) were identified in questions 1 to 3 which are regarded as the basic functions of packaging according to the literature. Questions 4 to 7 are identified as the new roles presented by packaging nowadays. They are promotion, adornment, visually attractive and brand presentation in sequence.

The aim of this part was:

To identity the importance of different functions of packaging in respondents minds

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4.4.2 Part two

Attitude towards packaging of fashion product/brand

Part two was set to obtain the objectives of realize the respondents attitude towards a fashion brand/product with packaging. Five statements were all set under this objective. An image is added in the beginning of questions to provide a basic understanding of packaged- product and without packaged-product.

The aim of this part was:

To understand the respondents attitude towards a fashion brand/product with packaging.

4.4.3 Part three

Product evaluation of packaging as a marketing tool

Part three was composed of two parts and related to marketing effect of packaging. For the first part, total eight questions were used to investigate respondents evaluation. Based on the literature, three parameters were involved, namely, quality, price and expectation. These three dimensions are commonly used to demonstrate a consumer behavior which is evaluation.

Questions 13 to 16: Respondents evaluation about product quality Questions 17 to 19: Respondents evaluation about product price and value
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Question 20: Respondents expectation

The second part was about respondents purchase decision of the packaged-fashion product/brand. The eight questions (Questions 21-28) involved in this part consisted of three purchase decisions: interest to buy, repurchasing and brand choices. These three dimensions were developed by the following statements:

Interest to buy:

The package reinforces the initiative to buy the product at the

point of purchase (Meyers & Lubliner, 1998).

Brand choices: When the package provides the consumer with clear and specific information and possibly a point of comparison, in order to stand out among competitors, to avoid consumer confusion, a purchase is cited (Meyers and Gerstman, 2005).

4.4.4

Part four

Product evaluation of aesthetically appealing package

In chapter 2, aesthetic response of consumers towards aesthetically appealing packaging was clearly defined. Part four was composed of two parts. For the first part, total eight questions (Q 29- 36) were used to investigate respondents evaluation towards an aesthetically appealing package. Same as part three in the questionnaire,
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this part also adopted three purchase behavior among the eight questions.

Questions 29 to 30: Respondents evaluation about product quality Questions 31 to 35: Respondents evaluation about product price and value Question 36: Respondents expectation

The second part was about respondents purchase decision of the aesthetically appealing packaged-fashion product/brand. There were eight statements (Questions 37-44) involved in this part and consisted of three aforementioned purchase decisions: interest to buy, repurchasing and brand choice.

4.4.5

Part five

Demographics/Personal data

In part five, demographic information of respondents were collected to identity the distribution pattern and used to indicate if there were differential of response due to demographic variations. General personal data were asked as following: Question 45: Gender Question 46: Age Question 47: Education level Question 48: Monthly income
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4.4.6

Scale of questionnaire

The entire setting of the questionnaire consisted of five parts and all questions were close-ended questions. For part one, respondents were asked to score the importance of each functions of packaging, ranging from the least important to the most important. For part two to part four, seven-point likert scale was used for indicating respondents level of agreement or disagreement, ranging from strongly disagree to strongly agree. For part five, dichotomous and multiple choice were used to obtain nominal data. The questionnaire was designed in both English and Chinese. In case of any discrepancy, the English version should be considered as final.

Typically, 7-point likert scale is a widely used rating scale that requires the respondents to indicate a degree of agreement or disagreement with each of a statement about the stimulus object. Using this scale can facilitate construction and administration. Since Internet is the chief interview method, using this scale is easier to understand by the respondents. According to Dawes (2008), the positive response of seven likert scale is 5, 6 and 7. When compared to other common likert scale which is 5-point and 10-point scale, 7-point scale produce a slightly higher comparative mean scores than 5-point scale and a slightly lower comparative means than 10-point scale when respondents responses were on the positive side of the mid-point. Also,
58

7-point scale can obtain a greater spread than 5-point scale because it can provide more options.

1 The least important

2 Mostly unimportant

3 Slight unimportant

4 Neutral

5 Slightly important

6 Mostly Important

7 The most important

Table4.1 Sever-point Likert Scale for part one

1 Strongly disagree

2 Mostly disagree

3 Slight disagree

4 Neutral

5 Slightly agree

6 Mostly agree

7 Strongly agree

Table4.2 Seven-point Likert Scale for part two to part four

4.5 Data collection This stage is used for collecting the required data. The questionnaire was served as an effective tool to collect the quantitative data needed.

4.5.1 Data collection method 60 hardcopy of the questionnaires were distributed through personal network in university, company and friends home. Face-to-face method is used for this data collection.
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To get access to potential consumers in multi-nationality and various culture backgrounds of packaging, another 147 questionnaires were collected through the Internet. A self-administrated questionnaire survey using the random sampling approach was conducted. The questionnaire was first set up online, then questionnaire were sent out through email and facebook. The respondents are able to answer the entire questionnaire without any disturbing of interviewer.

4.6

Method of statistical analysis

4.6.1 Data analysis procedure The computer software Statistical Package for the Social Science (SPSS) version 17 was used for all statistical data analysis. SPSS is the industry standard software for data analysis. Once the surveys are collected, all survey response were transferred to the computer program SPSS for initial descriptive data analysis of demographic information of respondents. Then comparisons were made using frequencies and percentages to obtain the general characteristics of respondents.

4.6.2 Descriptive Statistic Analysis Descriptive statistics are a set of statistical tools that allows is to accurately describe a
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large volume of data with just a few values. Common descriptive such as central tendency ( means), measures of dispersion (standard deviation) are used in the thesis. It can provide the reader with information about the sample, and to describe the data before performing an inferential statistical data.

4.6.3 Reliability test Reliability test is used to study the internal consistency of the measurement scales and assess creditability of the findings. The Cronbachs Alpha, also called coefficient alpha, is the average of all possible split-half coefficients resulting from different ways of dividing scale items. The acceptance threshold is 0.7. The value of 0.6 or less indicates unsatisfactory reliability.

4.6.4 Independent t-test/paired t test Independent t-test is used when comparing means from two independent groups of individual. In the thesis, one hypothesis relates to parameters from two independent samples, the male and the female. The hypotheses aim to determine whether the male s purchase decision is more easily to affect by aesthetically attractive package than women. An independent t-test is conducted to calculate the result.

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Paired t-test is a test considers pairs of data together. In this measure, data are collected from each participant in all levels of the independent variable.

4.6.5 R, R square and adjusted R square R is a measure of the correlation between the observed values of the criterion variable and its predicted value. R can only take positive values even of all the individual correlations or the s are negative. R-square is the square of a measure of correlation and indicates the proportion of the variance in the criterion variable which is accounted for by the model. This is a measure of how good a prediction of the criterion variable that can make by knowing the predictor variables. However, researchers noted that R square tends to somewhat over-estimate the success of the model when applied to the real world (Brace, 2006). Therefore, adjusted R square is calculated which takes into account the number of predictor variables in the model and the number of observations that the model is based on. This adjusted R square value gives a more useful measure of the success of the model.

4.6.6 Standardized coefficient (Beta) The standardized coefficient (Beta) gives a measure of the contribution of each
62

variable to the model in terms of standard deviation.

is the predict change in

standard deviation of the criterion variable, for a change in one standard deviation in the predictor.

4.6.7 Linear regression Simple linear regression is used to prove relationship between one dependent variable to one independent variable using observed data. The equation is: Yi : the dependent variable X: the dependent variable a: the intercept b: the slope .: the random error of given x .

Multiple regression is a statistical technique that allows to predict someones score on one variable on the basis of their scores on several other variables. Many researchers is the term independent variables to identity those variables that will influence some other dependent variable. The equation is:

Y=dependent variable
63

a=intercept b1 ,b2 ,
1, X2 ,

bk slopes or regression coefficients .., XK independent variables

= random error of given X

4.6.8 Mediation effect More recent methodological work by Sobel (1990) and MacKinnon &Dwyer (1993) has provided statistical techniques that build on the Baron and Kenny (1986) model, but provide a more precise picture of the mediation. The first advance was the provision of a statistical test for the mediation path. MacKinnon and Dwyer (1993) showed that the test of the mediation path can be expressed as the Sobel test. Method of different in coefficients is employed in the test by comparing two regression or correlation coefficients. It is used to measure the significant of the indirect effect of the independent variable on the dependent variable through the mediator variable is significant. This test was carried out after each of the regression is significant. The web-based sobel test was adopted in this study.

MacKinnon & Dwyer (1993) suggested that the significance of mediated effect should be measured in z score ( ) which can be evaluated for statistical significance
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using probabilities corresponding to the standard normal distribution ( .05, +/1.96). MacKinnon, Lockwood, and Hoffman (1998) developed an alternative method to test for the indirect effect based on the distribution of the product of two normally distributed random variables. Because the indirect effect is the product of regression estimates that are normally distributed (Hanushek &Jackson, 1977), the distribution of the product can be applied to the use of the product as a test of the indirect effect based on the product zz, where z 5 / and z 5 / .

It is noted that the p value was not obtained from the standard normal distribution (Pearson's Correlation Coefficient) but rather from the table provided by MacKinnon, Lockwood, Hoffman, West, & Sheets (2002) called PRODCLIN. (See appendix) If significance is found, mediation is considered to be present.

In order to obtain a better result, joint significance test is adopted which difference in coefficients (Sobel, 1990) and distribution of product (MacKinnon & Dwyer, 1993) were both employed to evaluate the significance of indirect effect.

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Chapter 5 Findings and analysis 5.1 Introduction In this chapter, the quantitative survey collected from 207 respondents were analyzed, summarized and discussed. The hypotheses developed in Chapter 3 were tested by statistical techniques. Descriptive statistics was calculated to describe characteristics of the sample. Regression analyses, t-test and sobel test were employed to test the hypotheses. Significance of p-value was established for all statistics analyses in p0.05 level.

5.2 Date analysis and results The survey has collected 207 questionnaires with all completed answers, which represent a valid response rate of 100%. The descriptive statistics summarized in below.

5.2.1 Descriptive summary of Demographic profile Personal profile In the 207 respondents (N=207), there were 119 female while the rest 88 were male. Over a half of respondents were aged between 19 and 22 (57.5%), then followed by

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33.8% of the respondents aged between 23 and 26 years old. 8 (3.9%) aged 27 to 30 and 7 (3.4) aged 15 to 18. Only 3 (1.4 %) respondents aged above 30.

Statistics shows that vast majority of the respondents received tertiary education or above which accounts for 95.2%. 3.4% of respondents received matriculation level of education. For the remaining 1.4% of respondents, they received secondary level of education or below. The result shows that most of the respondents have received higher education.

Majority of respondents earned less than $5000 of their monthly income, which accounts for 72%. The next frequent monthly income was mainly in the range between $10001 and $15000 (16.4%). It is followed by 8.7% of respondents earned $5001 to $10000 of their monthly income. 2.9 % of respondents fell into the income range of above $15000.

The significant findings of personal profiles includes gender, age, education level and monthly income are illustrated in Table 5.1.

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Frequency Gender Female Male Total 119 88 207

Percentage % 57.5 42.5 100.0

Age

15-18 19-22 23-26 27-30 Above 30 Total

7 119 70 8 3 207

3.4 57.5 33.8 3.9 1.4 100.0

Education level

Secondary or below Matriculation Tertiary or above Total

3 7 197 207

1.4 3.4 95.2 207

Monthly income

Below $5000 $5001-$10000 $10001-15000 Above $15000 Total

149 18 34 6 207

72 6.4 8.7 2.9 207

Table 5.1 Summary of demographic data

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5.2.2 Reliability test Table 5.2 shows the alpha coefficient of part one to part four were 0.778, 0.883, 0.902 and 0.929, 0.903 and 0.936 respectively. All parts exceed the acceptance threshold of 0.7. Especially foe section 3 and 4, the Cronbachs alpha are over 0.9, this indicates very internal consistency reliability for these two sections.

No. of items Part 1 ( Q1-7) Importance of the different role of fashion packaging Part 2 (Q 8-12) Attitude towards packaging of fashion product/brand 7

Cronbach's Alpha 0.778

Accepted/ Rejected Accepted

0.833

Accepted

8 Part 3 (Q13-Q20) Product evaluation of packaging as a marketing tool Part 3( Q21-28) Purchase decision of packaging as a marketing tool Part 4 (Q 29-36) Product evaluation of aesthetically appealing package Part 4 (Q 37-44) Purchase decision of aesthetically appealing package 8 8

0.902

Accepted

0.929

Accepted

0.903

Accepted

0.936

Accepted

Table 5.2 Summary of reliability test of section1, 2, 3, 4

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5.2.3 Mean comparison of importance of the roles of fashion packaging Respondents were asked how importance of different roles of a fashion packaging was. This section presents the importance of the role of fashion package in consumers perception. Seven answers were pre-determined for selection and divided into two categories: new role and traditional role. Table 5.3 showed the mean score and standard deviation of questions 1 to 7. The result shows that the factor visually attractive has received the highest mean score (mean=5.79, SD=0.826). It is followed by the brand representation (mean= 5.4, SD=1.088) and adornment (mean=5.31, SD=1.015). Promotion (mean= 5.06, SD=0.984) ranked number four among the seven factors. The result reveals that the new roles of packaging ranked the top four mean score.

Easy for storage (mean= 4.18, SD=1.064), Protector (mean = 4.03, SD=1.129) and container (mean = 4.01, SD=1.17) ranked the least important. Among then, visually attractive and promotion have the smallest standard variation that mean all of the respondents had the similar opinion on the importance of these two factors.

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N 6-Visually attractive 7-Brand representation 5-Adornment 4-Promotion 3-Easy for storage 2-Protector 1-Container 207 207 207 207 207 207 207

Mean 5.79 5.40 5.31 5.06 4.18 4.03 4.01

Standard Deviation 0.826 1.088 1.015 0.984 1.064 1.129 1.168

Valid N

207

(N=207, 1=least importance; 7=most important) Table 5.3 Mean importance score of the seven roles of fashion packaging

5.2.4 Mean comparison of the importance of new roles and the tradition role of fashion packaging According to table 5.3, the top four ranking of important functions of fashion packaging are visually attractive, brand representation, adornment and promotion. These four roles were regarded as the new roles of packaging. The remaining three functions are easy for storage, protector and container. They are the least important functions.

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From the table 5.4, the means score of the four new roles are shown (mean=5.39) while the mean score of the three traditional roles are only 4.08. This shows that the new roles are perceived as more important than the traditional role. Also, among the two factors, the new roles have a smaller standard deviation (SD=0.81) than the traditional roles (SD=0.94). This means that all of the respondents share the similar opinions on the importance.

N New roles Traditional role Valid N \ 207 207 207

Mean 5.38889 4.07729

Std. Deviation 0.806360 0.944772

Table 5.4 Means of different roles of packaging

5.2.5 Means of generation ys attitude towards packaged fashion products The mean score of attitude toward a packaged fashion brand or product of respondents are showed in table 5.5. Each of statement scores above 5. Most of the respondents have positive attitude on the brand position (mean=5.57) and followed by brand image (mean=5.37). The mean score of the five statements is 5.272. This indicates that respondents generally have a positive attitude of packaged-fashion product.
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N The brand /product have enough prestige. 207

Mean 5.14

Std. Deviation 0.884

The brand /product image is outstanding. The brand /product is desirable.

207

5.37

1.02

207

5.03

1.033

The brand /product is trustworthy. This is a high-end fashion brand/product.

207

5.25

0.888

207

5.57

1.058

Total

5.272

0.9766

Table 5.5 Means of generation ys attitude

5.3 Hypotheses testing 5.3.1 Hypothesis 1 and 2 Hypothesis 1 and 4 are used to test the relationship of marketing power and two consumer behavior: purchase decision and product evaluation. Simple linear regression is adopted. The two hypotheses are as following:

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H1:

The higher level of marketing power of package implies more positive

purchase decision

H2:

A higher level of marketing power of package implies a more positive

product judgment

According to ANOVA table, F-test suggested there was a significant model of relationship between promotional power and purchase decision (F=56.251, p value <0.05), and product evaluation (F=45.217, p value<0.05) emerged, both of the hypotheses are supported by a significant level of 0.000.

Hypothesis H1 Regression

Mean square 56.251

F 92.922

Sig. 0.000*

Residual

0.605

H2

Regression

45.217

68.595

0.000*

Residual

0.659

*Sig. lower than predetermined level 0.05 Table 5.6 ANOVA table of hypotheses 1 and 2
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Table 5.7 showed that the model of hypothesis 1 explains 30.0% of the variance (Adjusted R square =0.309). R value is positive (R= 0.558) means that the linear relationship between two factors is positive. While for hypothesis 2, it explains 24.7% of the variance (Adjusted R square =0.251). R value is positive (R= 0.501) means that the relationship between two factors is also positive.

Model summary

Hypothesis

R square

Adjusted R square

H1

0.558

0.312

0.309

H2

0.501

0.251

0.247

Table 5.7 Model summary of hypothesis 1 and 2

From table 5.8, p-value <0.05, the positive relationship of promotional power and product evaluation is supported. This result is well supported that an increase in marketing power will result in a higher purchase decision. On the other hand, p value of marketing package and product evaluation is <0.05, which is also lower than the predetermined level. The higher level the marketing power of a package, purchase decision can be strengthened and also the more likely the consumers have positive
75

product evaluation. Therefore, hypotheses 1and 2 are supported. By the standard coefficient (Beta), 0.558 and 0.501 for purchase decision and product evaluation respectively. That means, changing a one standard deviation of promotional power would change purchase decision by 0.558 standard deviations and would change product evaluation by 0.501standard deviations. The difference of the Beta between two are small. Thus, it can conclude that a change in marketing power of package has a slightly greater relative effect on purchase decision than does a change in product evaluation.

Coefficients Hypothesis 1 MP Purchase decision 2 MP Product evaluation Table 5.8 Regression result of hypotheses 1 and 2 T 7.038 9.063 6.149 8.282 Sig. 0.000 0.000 0.000 0.000 0.501 Beta 0.558

5.3.2 Hypotheses 3 and 4 Hypotheses 3 and 4 are used to test the relationship of aesthetics level of package with purchase decision and product evaluation. Simple linear regression is adopted.
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Below are the two hypotheses: H3: A higher level of aesthetic of package strengthens consumers

purchasing decision H4: evaluation A higher level of aesthetic of package implies a more positive product

According to ANOVA table 5.9, F-test suggested there was a significant model of relationship between aesthetic level and purchase decision (F=125.978, p value <0.05), aesthetic level and product evaluation (F=76.69, p value<0.05) emerged, both of the hypotheses are supported by a significant level of 0.000, which was lower than the predetermined level of 0.05.

ANOVA Hypothesis 3 Regression Residual 4 Regression Residual Mean square 54.626 0.434 40.173 0.504 76.69 0.000 F 125.978 Sig. 0.000

Table 5.9 ANOVA table of hypotheses 3 and 4

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Table 5.10 shows that the model of hypothesis 3 explains 37.8% of the variance (Adjusted R square =0.378). While for hypothesis 4, it explains 27.6% of the variance (Adjusted R square =0.276). For both hypotheses, the R value is positive ( R=0.617, R=-.529), means that there is a positive linear relationship between two factors.

Model Summary Hypothesis 3 4 R 0.617 0.529 R Square 0.381 0.281 Adjusted R Square 0.378 0.276

Table 5.10 Model summary of hypotheses 3 and 4

From table 5.11 , p 0.05, the positive relationship of aesthetic level and purchase decision is accepted as it is lower than the predetermined level of p<0.05. This result is well supported that the higher the aesthetics level, the more likely the consumers would like to purchase. On the other hand, p value of aesthetically appealing and purchase decision is 0.000, which is lower than the predetermined level of 0.05. The higher level the aesthetics in package, the more positive of the consumers feel towards the product. Therefore, hypotheses 3 and 4 are supported. By the standard coefficient ( Beta), 0.617 and 0.529 for promotional power. That means, changing a one standard deviation of aesthetic level would change purchase decision by 0.617 standard
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deviations and would change product evaluation by 0.529 standard deviations. Thus, it can conclude that a change in aesthetic level has a greater relative effect on purchase decision than does a change in product evaluation.

Coefficients Hypothesis 3 AAP Purchase decision 4 AAP Product evaluation Table 5.11 Regression result of hypotheses 3 and 4 T 9.906 11.224 8.245 8.927 Sig. 0.000 0.000 0.000 0.000 0.529 Beta 0.617

5.3.3 Summary of hypotheses 1 to 4 The result not only shows that all hypotheses is fully supported, but also revealed the significant relationship between the two predetermined factors, both product evaluation and purchase decision are affected by promotional and aesthetic of package. The positive R value of the four hypotheses indicated that the linear relationship is positive.

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Hypotheses

R value

Adjusted R Square

Sig. (p<0.05)

Result

MP

H1

0.558

0.309

0.000

Supported

H2

0.501

0.247

0.000

Supported

AAP

H3

0.617

0.378

0.000

Supported

H4

0.529

0.276

0.000

Supported

Table 5.12 Summary of hypotheses 1 to 4

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5.3.4 Hypotheses 5 and 6 Attitude can be one of the factors to explain purchase decision. Hypotheses 5 and 6 intended to test the process of attitude by which package influence purchase decision. One possibility could be that attitude acts as a mediating variable between package and purchase decision.

H5:

Attitudes towards the marketing package (MP) partially determines

decision making

The regression model is significant at the 0.001 level and the model explained 48.5% of variance (Adjusted R square=0.485). According to table 5.13, coefficients of attitude and promotional power are significant.

For each regression model, the result was shown in table5.13. Table 5.13 shows that marketing package has a direct impact on decision making (path c).The result also indicates the mediating effect of attitude between promotional package and decision making is significant (path c). With the mediating effect of attitude, the indirect effect has also proven which is through the attitude (From 0.562 to 0.322).

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Outcome

Predictor

R square

coefficient

p-value

Path c

Decision making

PP

0.313

0.562

0.000*

Path a

Attitude

PP

0.246

0.499

0.000*

Path b

Decision making

Attitude

0.410

0.642

0.000*

Path c

Decision making

PP Attitude

0.485

0.322

0.001*

Table 5.13 Regression result to check the mediating role of attitude of hypotheses 5

The next step is by using sobel test to determine whether the reduction of 0.24 (path cpathc) is a significant mediation. The result is shown in Table5. 14. The sobel test p-value is less than 0.05. It can conclude that attitude is a significant mediator of the effect of promotional package on decision making. The indirect effect is also significant.

Input a b Sa Sb *significant at <0.05 Table5.14 Sobel test of hypothesis 5

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P -value 0.405 0.496 0.049 0.059 0.000*

a = raw (unstandardized) regression coefficient for the association between independent variable and mediator. sa = standard error of a. b = raw coefficient for the association between the mediator and the dependent variable sb = standard error of b.

By using distribution of products method, the z-score yields 68.904. The critical value established by Mackinnon et al. (1998) is 5.8. Again, the mediation effect is significant. Table 5.15 shows that by the standard coefficient (Beta), 0.482 and 0.332 for MP and attitude. That means, changing one standard deviation of MP would change decision making by 0.482 standard deviations while holding the attitude constant and changing one standard deviations of attitude, holding MP constant, would change decision making by 0.322 standard deviations. Thus, it can conclude that a change in MP has a greater relative effect on decision making than does a change in attitude. Coefficients Model 1 (Constant) Attitude MP Unstandardized Coefficients B .978 .496 .269 Std. Error .290 .059 .048 .482 .322 Standardized Coefficients Beta t 3.369 8.348 5.580 Sig. .001* .000* .000*

a. Dependent Variable: decision making *Sig <0.05 Table 5.15 multiple regression of marketing packaging and attitude determines decision making
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H6:

Attitudes towards the aesthetically appealing package partially

determines decision making

The regression model is significant at the 0.001 level and the model explains 42.5% of variance (Adjusted R square=0.425). According to table 5.15, coefficients of attitude and aesthetically appealing are significant.

For each regression model, the result was shown in Table5.16. From table 5.16, it shows that aesthetically appealing package do have a direct impact on purchase decision (path c).The result also indicates the mediating effect of attitude between aesthetically appealing package and decision making (path c). With the mediating effect of attitude, the indirect impact has also proven which is through the attitude. (From 0.6047 to 0.429) Outcome Path c Path a Decision making Decision making Predictor AAP Package AAP Package Path b Path c Decision making Decision making Attitude AAP Package Attitude 0.302 0.425 0.553 0.429 0.000* 0.001* R square 0.362 0.318 Coefficient 0.604 0.567 p-value 0.000* 0.000*

*significant at <0.05 Table 5.16 Regression result to check the mediating role of attitude
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The next step is by the use of sobel test to determine if the reduction of 0.128 ( path cpath c) is a significant mediation. By using the web-based sobel test, the result is shown in Table 5.17. The sobel test p-value is less than 0.05. It can conclude that attitude is a significant to determine when mediator of the effect of aesthetically appealing package on purchase decision and product evaluation. The indirect effect is also significant.

Input a b Sa Sb *significant at <0.05 Table 5.17 Sobel test of hypothesis 6 0.624 0.269 0.063 0.048

P -value 0.000*

a = raw (unstandardized) regression coefficient for the association between independent variable and mediator. sa = standard error of a. b = raw coefficient for the association between the mediator and the dependent variable sb = standard error of b.

Mackinnon et al. (1998) s Distribution of Products is used in order to obtain a more accurate result. From the generated data, z-score that yielded is 52.948. The critical

85

value established by Mackinnon et al. (1998) is 5.04. Again, the mediation effect is significant.

Table 5.18 shows the standard coefficient (Beta), 0.429 and 0.301 for AAP and attitude. This means changing a one standard deviation of AAP would change decision making by 0.429 standard deviations, while holding attitude constant and changing a one standard deviation would change product evaluation by 0.310 standard deviations, holding AAP constant. Thus, it can conclude that a change in AAP has a greater relative effect on decision making than does a change in attitude.

Coefficientsa Unstandardized Coefficients Model 1 (Constant) AAP Attitude B 1.105 .424 .337 Std. Error .338 .063 .070 .429 .310 Standardized Coefficients Beta t 3.269 6.686 4.832 Sig. .001 .000 .000

a. Dependent Variable: decision making Table 5.18 Multiple regression of aesthetically appealing packaging and attitude determines decision making

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5.3.5 Summary of hypotheses 5 and 6 Hypotheses5 and 6 were both supported. Summary of the results was showed in Table.5.19. The model shows the mediation effect of attitude is significant. The results empirically reinforce the conclusion that attitude is aN important factors stand between package and decision making. The above result suggests that the partial mediation effect of attitude is robust.

Attitude

0.499

0.567

0.533

0.642

Aesthetically appealing package

0.6040.429

Decision making Marketing package

0.562 0.322

Figure 5.1 Summary of mediation paths

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5.2.6 Hypotheses 7a and 7b H7a: Males purchasing decision is more easily to be affected by aesthetically attractive package than women

Independent t test is used to compare the means from the gender. Table 5.20 shows the regression model has a significant linear relationship at a significance level of 0.05 (t=4.506, df=201.484, p=0.000, two-tailed).

t Purchase Equal decision variances not assumed* 4.506

df 201.484

Sig. (2-tailed) 0.000

Mean Difference .555350

Std. Error Difference .123252

*Levene test p <0.05, there is not equality of variance, use bottom row of data. Table 5.20 Independent Samples Test for significance of gender difference for significance of gender difference on purchase decision of AAP

According to table 5.21, the mean score of purchase decision of male (N=88, mean=5.65) is higher than female (N=119, mean=5.10). This well supported that when men facing aesthetically product, their purchasing decision is more easily to be affected than women.
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Gender Purchase decision of AAP Male Female

N 88 119

Mean 5.65199 5.09664

Std. Deviation .809083 .960479

Sig. (2-tailed) 0.000 0.00

Table 5.21 Independent t-test for gender difference

H7b: Males product evaluation is more easily to be affected by aesthetically attractive package than womens

Table 5.22 indicates there are significant differences of male and female (t=1.78, df=205, p=0.077, two-tailed).

t Purchase Equal decision variances assumed* 1.780

df 205

Sig. (2-tailed) .077

Mean Difference .196739

Std. Error Difference .110556

*Levene p>0.05, there is equality of variance, use top row of data. Table 5.22 Independent Samples Test for significance of gender difference on product evaluation of AAP

From table 5.23, the mean score of product evaluation of male (N=88, mean=5.25) is slightly higher than female (N=119, mean=5.05). This supported that when male
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facing aesthetically product, their product evaluation is more easily to be affected.

Gender Product Female evaluation Male

N 119 88

Mean 5.05042 5.24716

Std. Deviation .737056 .848633

Table 5.23 Mean score of product evaluation of male and female

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Chapter 6 Discussion of results

6.1 Introduction Revising the chapter 5, all hypotheses have been proven significantly. Gender was also identified as an important factor as packaging has a greater influence on male. Meanwhile, means and deviations for each variable were included to assist discussion. The findings beads on the posited hypotheses were addressed in the following section.

6.2 Major findings 6.2.1 The role of packaging For generation y, the new role with a higher mean score is considered as more important than the traditional role in respect of fashion packaging (Table 5.4). Among the proposed seven roles, visual attractive and brand representation yield the top two. Surveys revealed that generation y considered fashion packaging as a marketing tool and should be attractive on appearance. These predicted results were consistent with the literature which suggests that 1) packaging as a brand communication vehicle (Nilsson and Ostrom, 2005) , 2) Packaging can be a stimulus associated with attractive appearance (Ghoshal, 2010). On the other hand, mean of
91

traditional role score 4 as the neutral point, neither important nor unimportant. This indicates generation y does not ignore the basic functions of package, but only received a relatively attention compared to the new roles.

The mean score of the new role is above 5.The finding supported that the new roles of packaging are important in generation ys mind. One possible reason behind can be explained by the nature of fashion industry. As mentioned in the previous chapter, package is used for protection and assist transportation of food items in the past decades. Unlike food, fashion products are always in its final form. Packaging acts as a silent salesman instead of merely a container or protector (Pilditch, 1973). The ever-changing fashion market is formed by innumerable competitions. With this environment, fashion retailers tried to adopt innovative means to capture their attention. Packaging often presents consumers with a crushing display among other marketing stimuli. Due to the unique features of the fashion market, it may be beneficial to convey the brand meanings via packaging in an aesthetically attractive manner. This result also reflects the noticeable transformation role of packaging.

Mean of attitude was calculated 5.27 with the highest of 7, generation y consumers are feeling positive on packed fashion packaging. Generation y , who facing the
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intense market situation, generally have a favorable attitude towards packed fashion product/brand. Moreover, the statement this is a high-end fashion brand/product scores the highest. High-end brand positioning is the most positive attitude of generation y towards fashion packaging. The results are important for markets to reposition package as one of their marketing strategy.

6.2.2 Consumer evaluation Referring to Hypotheses 2 and 4, the study revealed both marketing power and the aesthetic level have significant impact on product evaluation of generation y (p-value <0.05). Results showed that better packaging does indeed positively impact product valuation. In two separate hypotheses, it was found that appealing packaging led to increased selling price and choice/purchase price for an object in a package. Attitude toward the object was also superior when it was presented in the appealing packaging. Emotions evoked by the appealing packaging were stronger and significant. The results is in line with the researches of Orth et al.(2010) and Page and Herr (2002).

Result also revealed that with promotional power on package such as brand name, brand logo, generation y perceived the package as a marketing tool and have a strong guarantee. On the other hand, result indicated that generation y tends to judge the
93

book by its cover. A high level of aesthetic of package appearance can increase their confidence of that brand/product. This result suggests that fashion retailers may benefit from utilizing package as a promotional tool to enhance consumers confidence. By comparing the Beta of AAP and MP towards product evaluation, AAP ( =0.529) yielded a slightly high score than MP ( =0.501). This finding may serve as a guideline for long term marketing and branding strategies.

6.2.3 Consumer purchase decision It is found that both promotional power and the aesthetic level have significant impact on purchase decision of generation y (Hypotheses 1 and 3: p value <0.05). The behaviors included purchasing, brand switching and repurchasing. It can be seen that the two value-added functions can indeed provide brand differentiation and avoid consumer confusion. For industry like fashion, the costs of manufacturing, shipping, distributing and promoting products have risen considerably (Stahlberg & Maila, 2010). This enlarges the financial burden of companies and they are struggling to survive for not passing extra costs to their consumers. Product needs to keep changing frequently to satisfy the fast changing preferences of consumers and new products are being introduced that support the demand and lifestyles of new generation (Meyers and Lubliner, 1998). The ultimate goal is to persuade consumers
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to purchase and then make profit. These findings suggest Hong Kong fashion retailers, use package to alter generation ys mind and buying behavior, regardless of small boutique or chain stores. As Behaeghel (1991) and Peters (1994) proposed, packaging can been seen by all potential customers and represent the first truth at the point of purchase moment. Therefore, improvements and innovations on packaging may provide consumers a communication channel of its a brand true value, qualities, image and a purchase may be cited.

By comparing the Beta of AAP and MP towards purchase decision, AAP ( =0.617) yielded a slightly high score than MP ( =0.558). With the same result of MP, the result showed that AAP do have a greater influence on consumer behavior. The result demonstrated the significance of the appearance of packaging, as future opportunities for Hong Kong fashion retailers to explore the feasibility to make investment in the package design.

6.2.4 Attitude Referring to hypotheses 5 and 6, a paired of hypotheses was postulated that the mediation effect of attitude is a result of influencing consumer behavior on fashion packaging. As predicted by the model, a positive attitude towards packaging was
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significant on influencing the behavior of the target group.With attitude involved, the direct effect of marketing / aesthetically appealing effect on consumer behavior has decreased and such reduction was significant by calculating via sobel test. This proposed that a package may be a factor influence behavior but it is subject to the attitude. Attitude towards a brand/product is crucial.

Attitude, which have a mediation effect on the relationship between marketing / aesthetically appealing package, divert the impact of the value-added functions of packaging. While package may serve as a crucial communication channel to assist consumers decision making, attitude are nevertheless the more influential elements leading to an actual decision in the long run. Fashion marketers may consider attitude to supplement the package to further strengthen consumers decision.

6.2.5 Gender One important finding worthy of mention is gender difference. Hypothesis 5 suggested that gender may be a factor of explaining different behavior. One unexpected result was that males purchase decision and product evaluation are more easily to be affected by aesthetically attractive package than women with a higher mean score. The results reflects a unexpected result and contrary to the discussion
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before: men is less likely to enjoy shopping compared with women and most important, female are socialized into being aesthetically skilled gender and find it easier than males to appraise and assess aesthetically significant products.

In fact, male are becoming much more fashion consciousness. This phenomenon is usual among generation y. One of the possible reasons may be the changing work practice of men in this modern society (Thompson, 2002). The society empowers women to have more rights on important issues. In fashion industry, it is not surprised that the clothing style is Hong Kong tends to be neutral. The terms female masculinity , ambiguity of masculinity was used to be the research topics recently. This finding suggests that packaging for the segment of men must continue to overcome the perceptual gap that exists in marketers perspective.

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Chapter 7 Conclusion

7.1 Conclusion The overall purpose of this study was to investigate and learn more about the value-added functions which influence the purchasing and evaluation of generation y. A model was developed which attempted to identify the relationship between different variables for fashion product/brand. Instead of studying the fundamental knowledge of package, the study aimed to gain a more in-depth look of its value-added function and explored its effect in fashion industry. Packaging issue has widely been studied

in the past few years. Its unique promotion effect in todays marketplace manifests itself in the domain of consumer purchase behavior. The relationship of its value-added functions with behavior of generation y has been successfully proved in this research.

The results have important implication for brand packaging strategy. This study is undertaken to provide a general views of fashion package and its influent in Hong Kong. Results generated support for the marketers to reposition of packaging as the front of the marketing strategy.
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7.2 Implications This research seeks to a theoretical framework for investigating the promotional and aesthetics effect of fashion packaging influence consumer behavior with the elements attitude involved. The findings well supported the influence of the two value-added functions and the additional effect attitude was also well proved. several contributions and implications for future practice. This study offer

This study contributes to indentify the transformation of roles regarding to packaging. In the part of literature, some packaging functions were identify for better understanding its changing role and its relevancy in fashion industry. Recent researches have expanded their focus on effect of packaging elements on consumer decision making. Indeed, researchers find that package design insightful in explaining consumer behavior. By studying those researches, the package design practice on food industry can be understood, yet the other industry has been ignored. This study provides further insights into the rationale behind the young generation behavior in the perspective of fashion. Moreover, the significant impact of attitude on generation y decision making and judgment was added to the existing framework as a mediator. Therefore, this research not only provides a basis for understand packaging in a comprehensive manner, but
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also offer an opportunity for marketers and researchers for future study.

Today retail competition is keen, especially fashion industry. Without effective and marketing tools, retailers can hardly survive. Retailers are trying to maximum their exposure to customers. With the use of package, which has a long life time compared to other media, retailers can achieve their goals more efficiently and effectively. The current study provides an insight of package on generation ys behavior on shopping.

7.3 Limitations The generalization of the results of this study should be interpreted with caution in light of specific functions of packaging. The findings may vary in different target groups in different industry. This study focuses on generation y. The research was limited to the analysis of 207 respondents. Due to the time and resources limitation, most of the data was collected either in university or via facebook and email. Therefore, most of the data was done by university student. The current sample group was found to better educated and major in fashion and textiles studies. Consumer with younger age and older age within generation y were overlooked. The result may not be representative. There might be deviations with the general population in terms of geographic profiles
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Besides, the marketing effect of packaging has long been underestimated by fashion retailers in the past decades. Only recently, with a resurgence of interest in the new advertising media, have researchers paid renewed attention to the study of the marketing effect of packaging. Therefore, not many journals related to fashion packaging can be found. Although there are many journals and publications about package design and package functions, most of them are related to food industry. It is difficult to find useful or in-depth information about fashion industry.

Another limitation is that most of the data were collected online. By using this self-administrating method, respondents were allowed to complete the questionnaire at home or any places, the answers may not be accurate enough because some of them may be complete the questionnaire with distraction.

7.4 Recommendations for future study This thesis provides opportunities for future study into the importance of packaging in marketing mix. In order to generalize more comprehensive and accurate result, a larger sample size with wider geographic distribution is recommended. The

objective of this study is to investigate the two value-added functions of package and
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these two functions are viewed as dependent and unrelated to each other. Future study is recommended to consider two functions as a whole. More comprehensive and extensive result can expect to result.

In addition, future study on packaging can be expanded into different areas of consumer behavior. Since this research only focuses on purchasing and evaluation. Further insight into gender difference of generation y can be also pinpointed in the future. As mentioned before, the results is unanticipated that male is more easily to be affected by aesthetically appealing package than female. Further study should take into account that gender is influential. Future research should attempt to explore the reasons behind and find out the major difference of the young generation.

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APPEDIX

Questionnaire about packaging and consumer behavior of generation y I am a Year 3 student of The Hong Kong Polytechnic University. I am conducting a survey on the relationship of fashion packaging and consumer behavior on generation Y. Please spare a few minutes in answering the following questions. All the data collected will be kept in strict confidential and will be used for academic research purpose only. Thank you very much for your cooperation. Please read the remarks carefully before answering the questions. ! Y Remarks: I.This questionnaire focuses on fashion products only II.In this questionnaire, packaging is a tool that connects form, structure, material, colour, imagery, typography and ancillary design elements with fashion product information and brand name. I. II.

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Part I /

Attitude towards packaging of fashion product/brand

Please score the following factors that you think the package of fashion products should function? (1 the least important; 7 the most important) ? 1-7 ( 1; 7-) The least important 1 2 3 4 5 6 7 Container Protector Easy for storage Promotion Adornment Visually attractive Brand representation 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 The most important 6 7

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Part II

Attitude towards a fashion brand/product with packaging (1= strongly

Please read the statements carefully, and then indicate the extent of your agreement or disagreement with the following statements by circling the appropriate number. disagree , 7= strongly agree ) Packaging is a tool that connects form, structure, material, colour, imagery, typography and ancillary design elements with fashion product information and brand name. For example, you may think about the brand Tiffany & co. when you saw the blue jewelry box with white ribbon. : Tiffany & co. Strongly Disagree 8 The brand /product have enough prestige. / 9 The brand /product image is outstanding. / 10 11 12 The brand /product is desirable. / The brand /product is trustworthy. / This is a high-end fashion brand/product. / 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 Strongly Agree 6 7

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Part III Product judgment of packaging as a marketing tool The following questions are related to marketing power of packaging. Please read the statement carefully, and then indicate the extent you agree or disagree with the following statements by circling the number1 to 7. 1-7 Marketing power* Packaging as a marketing tool which has an appeal to the shoppers impulse. / Packaging is a tool that connects form, structure, material, colour, imagery, typography and ancillary design elements with fashion product information and brand name. Example in the fashion industry is the jewelry box of Tiffany & CO. with its baby blue color and its logo. One of the marketing effects is the brand identification. : Tiffany & Co.

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A fashion products packaging has marketing power: : Strongly Disagree 13 I believe the product is in good quality. 14 I believe the product is produced in a good manufacturing process. 15 Package with marketing power is more believable in terms of quality. 16 The marketing power of the package helps me to determine the quality of the product. (i.e performance) 17 It is generally worth it to pay more for packaged-product/brand with marketing power. 18 19 This is a good indicator of product price. Marketing power of a product/brands package reflects its value. / 20 I believe the product/brand can meet my expectation. 1 2 3 4 5 6 7 1 2 3 4 5 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 Strongly Agree 6 7

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Purchase decision of the packaged-fashion product Strongly Disagree 21 I prefer buying fashion brands/products which have marketing power, even with similar contents. / / 22 Marketing power can increase my interest to possess the brand/product. / 23 The probability of repurchase the product/brand is higher after I purchased and found that the package of that brand/product has strong marketing power. / / 24 When I intend to buy fashion product, the packaged-product/brand with marketing power is always my first choice. 25 26 Promotion can always excite my desire to buy./ Marketing power helps me to decide when I am facing similar products. / 27 I switch brand/product due to the marketing power of the packaging. / 28 I would like to buy fashion product which can provides promotional power on its package. /
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Strongly Agree 3 4 5 6 7

Part IV Aesthetically appealing package on fashion products

Strongly Disagree 29 I believe the product is in good quality. 30 I believe the product is produced in a good manufacturing process. 31 Package with marketing power is more believable in terms of quality. 32 Aesthetically appealing package helps me to determine the quality of the product. (i.e performance) 33 It is generally worth it to pay more for aesthetically appealing package 34 This is a good indicator of product price. 35 Aesthetically appealing package reflects a product/brands value. / 36 I believe the product/brand can meet my expectation. 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Strongly Agree 5 6 7

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The following questions are related to aesthetically appealing package. Please read the statement carefully, and then indicate the extent you agree or disagree with the following statements by circling the number1 to 5. 1-7 1: Strongly disagree - 5: Strongly agree 1 - 7 Aesthetically appealing is a package is visually attractive and can provide you a pleasant feeling. Purchase decision of aesthetically appealing packaged-fashion product . Strongly Disagree 37 I prefer buying fashion brands/products which is attractive in appearance, even with similar contents. / 38 Aesthetically appealing package can increase my interest to possess the brand/product. / 39 When I intend to buy fashion product, attractive packaged-product/brand is always my first choice. 40 The probability of repurchase the product/brand is higher after I
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Strongly Agree 3 4 5 6 7

found that the package of that brand/product is attractive to me. / / 41 Attractive package can always excite my desire to buy. / 42 Aesthetically appealing package helps me to decide when I am facing similar products. 43 I switch brand/product due to the attractiveness of the packaging. / 44 I would like to buy fashion product which is aesthetically appealing. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5

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Part V

Demographic

45. Gender : Male Female

46. Age : 15-18 19-22 23-26 27-30 above 30 47. Education level : Secondary or below Matriculations Tertiary or above Others ___________ (please specify) () 48. Monthly income : Below $5000 $5001-$10000 $10001-15000 Above $15000

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113

Table generated from SPSS Relationship of AAP and attitude (path a)

Model Summary Adjusted R Model 1 R .567

a

Std. Error of the Estimate

R Square .321

Square .318

.6894

a. Predictors: (Constant), Attitude

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), attitude b. Dependent Variable: AAP Sum of Squares 46.082 97.435 143.517 df

Mean Square 1 205 206 46.082 .475

F 96.956

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) Attitude a. Dependent Variable: AAP B 2.260 .624 Std. Error .337 .063 .567 Coefficients Beta t 6.701 9.847 Sig. .000 .000

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Path b

Model Summary Adjusted R Model 1 R .553

a

Std. Error of the Estimate

R Square .306

Square .302

.689107

a. Predictors: (Constant), Attitude

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), Attitude b. Dependent Variable: Purchase Sum of Squares 42.849 97.348 140.197 df

Mean Square 1 205 206 42.849 .475

F 90.233

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) V23 a. Dependent Variable: Purchase B 2.063 .601 Std. Error .337 .063 .553 Coefficients Beta t 6.118 9.499 Sig. .000 .000

115

Path c

Model Summary Adjusted R Model 1 R .604

a

Std. Error of the Estimate

R Square .365

Square .362

.658852

a. Predictors: (Constant), AAP

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), AAP b. Dependent Variable: purchase Sum of Squares 51.209 88.988 140.197 df

Mean Square 1 205 206 51.209 .434

F 117.970

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) V15 a. Dependent Variable: Purchase B 1.919 .597 Std. Error .309 .055 .604 Coefficients Beta t 6.220 10.861 Sig. .000 .000

116

Path c (Indirect effect)

Model Summary Model Adjusted R 1 .656 Std. Error of the R Square F Change 77.090 df1 2 df2 204 Change Statistics Sig. F Change .000

R Square R Square Estimate Change .430 .425 .6256307 .430

ANOVAb Model Sum of Squares 1 Regression Residual Total 60.348 79.848 140.197 df 2 204 206 Mean Square 30.174 .391 F 77.090 Sig. .000

Coefficientsa Model Unstandardized Coefficients B 1 (Constant) 15 V23 1.105 .424 .337 Std. Error .338 .063 .070 .429 .310 Standardized Coefficients Beta t 3.269 6.686 4.832 Sig. .001 .000 .000

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Mediation effect of AAP, attitude and purchase Path a

Model Summary Adjusted R Model 1 a. R .499

a

Std. Error of the Estimate

R Square .249

Square .246

.6586

Predictors: (Constant), PP

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), PP b. Dependent Variable: Attitude Sum of Squares 29.551 88.911 118.462 df

Mean Square 1 205 206 29.551 .434

F 68.136

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) V14 a. Dependent Variable: V23 B 3.155 .405 Std. Error .261 .049 .499 Coefficients Beta t 12.110 8.254 Sig. .000 .000

118

Path b

Model Summary Adjusted R Model 1 R .642

a

Std. Error of the Estimate

R Square .413

Square .410

.59998

a. Predictors: (Constant), V23

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), V23 b. Dependent Variable: Means of MP Sum of Squares 51.840 73.795 125.635 df

Mean Square 1 205 206 51.840 .360

F 144.011

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) V23 B 1.510 .662 Std. Error .294 .055 .642 Coefficients Beta t 5.144 12.000 Sig. .000 .000

a. Dependent Variable: Means of MP

119

Path c

Model Summary Adjusted R Model 1 R .562

a

Std. Error of the Estimate

R Square .316

Square .313

.64730

a. Predictors: (Constant), PP

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), PP b. Dependent Variable: Purchase Sum of Squares 39.741 85.894 125.635 df

Mean Square 1 205 206 39.741 .419

F 94.850

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) V14 a. Dependent Variable: Purchase B 2.542 .469 Std. Error .256 .048 .562 Coefficients Beta t 9.930 9.739 Sig. .000 .000

120

Path c

Model Summary Adjusted R Model 1 R .700

a

Std. Error of the Estimate

R Square .490

Square .485

.56022

a. Predictors: (Constant), attitude, PP

ANOVA Model 1 Regression Residual Total Sum of Squares 61.611 64.024 125.635 df

Mean Square 2 204 206 30.805 .314

F 98.155

Sig. .000
a

a. Predictors: (Constant), attitude, PP b. Dependent Variable: Purchase

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) PP Attitude a. Dependent Variable: Purchase B .978 .269 .496 Std. Error .290 .048 .059 .322 .482 Coefficients Beta t 3.369 5.580 8.348 Sig. .001 .000 .000

121

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