This dissertation addresses the question of the impact of packaging to demand a price premium leveraging the example of retailer brand premium products in the food segment in Germany. Product tiering is a pricing structure that is commonly used by producers, in which consumers are segmented by willingness to pay for specific (added) product benefits. This is a way of maximizing utility for both consumers and producers, and is commonly already leveraged by producers of branded products, but lately also retailer brands, especially to enable growth outside the value tier. The role or packaging in the current literature is described as being a key influencer in the purchase decision making process, especially in-store.
This research uses a survey across grocery purchase decision makers in Germany to identify the relationship of packaging and willingness to pay across a sample of retailer brand Tier 1, Tier 2 and Tier 3 products as well as a branded product in four different grocery categories (ham, cheese, jam and ice cream). Additionally five demographic factors such as e.g. age are collected. The intent is to answer whether i) packaging currently justifies the premium price of retailer brand tier 1 products compared to other product tiers, ii) packaging justifies the tier 1 retailer brand price premium, and iii) demographics influence the willingness to pay a premium price.
Overall results indicate that the difference in packaging appeal can explain up to 35% of the willingness to pay for a retailer brand tier 1 product. However, results differ by grocery category and can’t be easily generalized to the entire food segment, driven by the difference in perceived risk by the consumer. With regards to packaging as sole justification for the price the consumer is willing to pay for the retailer brand tier 1 product the research has not shown any meaningful correlation. Whilst some demographics such as the shopper profile, especially what is defined a loyal shopper in this research, household size, net income or age show a high association with a higher willingness to pay, this yet again can’t be generalized across all categories. Only the loyal shopper profile was common across most categories for a general higher willingness to pay.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Arrangement of the dissertation
- The German trade and retailer brand environment
- Research problem
- Purpose of the research
- Research questions
- Limitations of the research
- Literature review
- Arrangement of the chapter
- The Importance of packaging in the food segment
- Packaging in the marketing mix
- Building a brand with packaging
- Packaging as pricing criterion
- Importance of packaging in-store (shelf impact)
- Gaining competitive advantage from packaging
- Regulatory aspects of food packaging
- Consumers and the purchase decision in the food segment
- Influence of packaging on consumer expectations
- What drives the purchase decision in-store
- Retailer Brands and the shopper in the food segment
- Why do consumers buy retailer brands?
- Recent trends in Retailer Brands – Moving from value brands to multi-tier offerings
- Conclusions from the literature review
- Research methodology
- Arrangement of the chapter
- Research approach
- Level of the research
- Population and sample size
- Data collection
- Data analysis
- Data presentation
- Ethics
- Reliability, validity and generalization
- Quantitative analysis results and discussion
- Arrangement of the chapter
- Participants profile
- Analysis strategy
- Analysis of survey results for ham
- Descriptive statistics for ham
- Exploration of research questions for ham
- Conclusions from analysis of the ham survey results
- Analysis of survey results for cheese
- Descriptive statistics for cheese
- Exploration of research questions for cheese
- Conclusions from analysis of the cheese survey results
- Analysis of survey results for jam
- Descriptive statistics for jam
- Exploration of research questions for jam
- Conclusions from analysis of the jam survey results
- Analysis of survey results for ice cream
- Descriptive statistics for ice cream
- Exploration of research questions for ice cream
- Conclusions from analysis of the ice cream survey results
- Result summary and overall conclusions
- Conclusions and recommendations
- Arrangement of the chapter
- Conclusions
- Conclusions for research question 1 - confirmed by literature review and analysis
- Conclusions for research question 2 – confirmed by literature review, but not analysis
- Conclusions for research question 3 - confirmed by analysis
- Recommendations for retailers
- Recommendations for further research
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation explores the impact of product packaging on consumers' value perception, specifically examining whether packaging allows retailers to charge premium prices for their retailer brand premium tier products in the German food segment. The study uses a survey of grocery purchase decision-makers in Germany to understand the relationship between packaging and willingness to pay across different tiers of retailer brand products and a branded product in four grocery categories. The key themes addressed are:- The role of packaging in building brands and influencing consumer purchasing decisions
- The relationship between packaging and price premium in the food segment
- The impact of packaging on consumer expectations and value perception
- The role of demographics in influencing willingness to pay a premium price
- The potential for packaging to justify premium pricing for retailer brand products
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction
This chapter sets the stage for the research, introducing the German trade and retailer brand environment and outlining the research problem, purpose, questions, and limitations.Literature Review
This chapter delves into the existing literature on packaging and its impact on consumer behavior, specifically within the food segment. It examines the role of packaging in the marketing mix, its importance in-store, and the influence of packaging on consumer expectations and purchase decisions. The chapter also explores the rise of retailer brands and consumer motivations for purchasing them.Research Methodology
This chapter details the research approach, including the population and sample size, data collection methods, and data analysis techniques. It also discusses the ethical considerations of the study and addresses issues of reliability, validity, and generalizability.Quantitative Analysis Results and Discussion
This chapter presents and discusses the results of the survey conducted with German grocery shoppers. It explores the relationship between packaging and willingness to pay across different product tiers and categories, including ham, cheese, jam, and ice cream. The chapter analyzes the influence of demographics on willingness to pay and examines whether packaging justifies the premium pricing of retailer brand products.Conclusions and Recommendations
This chapter summarizes the key findings of the research, addressing each research question and drawing conclusions based on the data analysis. It also provides recommendations for retailers on leveraging packaging to enhance their brand value and consumer perception.Schlüsselwörter (Keywords)
This dissertation focuses on the impact of product packaging on consumer value perception within the German food sector. Key concepts explored include consumer purchase decisions, retailer brand premium products, packaging as a pricing criterion, packaging in-store, and willingness to pay a premium price. The study examines the role of demographics in influencing purchasing decisions and aims to assess the effectiveness of packaging in justifying premium pricing strategies.- Citation du texte
- Christoph Breetz (Auteur), 2013, The impact of product packaging on consumers’ value perception, Munich, GRIN Verlag, https://www.grin.com/document/266639
