An Analysis of Fragrance Packaging and Thai Consumer Decisions

This project delves into the significant impact of fragrance packaging on the buying decisions of young Thai consumers. The research explores the perfume industry in Thailand, highlighting its growth and the importance of packaging in attracting customers. It investigates various elements of packaging, including shape, color, graphics, logo, and material, and their influence on consumer perception. The study also examines other crucial factors like price, brand, promotion, and advertising. The research aims to understand how packaging affects consumers' choices, identify successful packaging elements, and analyze the interplay of various factors that influence young Thai consumers' buying behavior. The project utilizes a conceptual framework to analyze the independent variables (packaging, price, brand, promotion, and advertising), the mediating variable (customer perception), and the dependent variable (buying decision), providing valuable insights for perfume brands and researchers.

HOW FRAGRANCE PACKAGING AFFECTS
DECISION BUYING AMONG YOUNG THAI
CONSUMERS?

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Background of study.........................................................................................................3
1.2 Statement of problem.......................................................................................................6
1.3 Research aims and objective............................................................................................6
1.3.1 Aim.......................................................................................................................6
1.3.2 Objectives.............................................................................................................6
1.4 Research questions...........................................................................................................6
1.5 Significance of research...................................................................................................6
1.6 Scope of research..............................................................................................................7
1.7 Definition of terms...........................................................................................................7
1.8 Organisation of research chapter....................................................................................12
CHAPTER 2: LITERATURE REVIEW.......................................................................................14
2.1 Introduction....................................................................................................................14
2.2 Packaging impacting consumer buying decision...........................................................14
2.2.1 The shape of package.........................................................................................15
2.2.2 Colour.................................................................................................................16
2.2.3 Graphics on the package....................................................................................16
2.2.4 Logo...................................................................................................................16
2.2.5 Package material................................................................................................17
2.3 Elements behind success of packaging from perception of young Thai customer.........17
2.4 Other factors influencing consumer buying decision.....................................................19
2.4.1 Price...................................................................................................................20
2.4.2 Brand..................................................................................................................21
2.4.3 Promotion and advertising.................................................................................21
2.4.4 Quality of products.............................................................................................21
2.5 Customer perception and buying decision in perfume packaging of young Thai customer
..............................................................................................................................................22
2.6 Conceptual framework...................................................................................................26
REFERNCES.................................................................................................................................27

CHAPTER 1: INTRODUCTION
1.1 Background of study
Perfume industry is in existence for about thousands of years and has given customers
discounted and wonderful scents. This industry is regulating without or minimum interference
from Food and Drug Administration (FDA) as it creates suggestions of materials that are used in
making these perfumes (Bulsara and Trivedi, 2016). This product was invented by Romans and
Greeks with its tracking origin in western civilisation of Mesopotamia art of perfumery was
tracked. Thus perfume is a very important product for users in their routine from older to
younger as which will be reflecting onto their personalities.
The perfume word is derived from Latin perfumare which means “through the smoke”
which is a mixture of fragrant aroma, solvents, essential oil and fixatives. This perfume was
firstly used in the 19th century, but the present modern form has components like coumarin or
vanillin that was attained from natural aromas (Fragrance Perception through Perfume
Packaging: A Visual Link with Customers, 2018). Most perfume types will represent amount of
concentration of aromatic components, dissolved in fine fragrances which are mixture of ethanol
and that of water.
Perfume was used in 330-1300 BC in Indus civilisation and is also somewhere mentioned
in ancient texts as “royal personages”, so from here it has been regarded as item of luxury.
Various religions also have some evidence of perfume as they regard it as important part of daily
life for example like that of Christianity and Islam. In early period of Christianity, all used
perfumes in their daily lives, apart from priests who used this liquid in religious ceremonies.
Then after Islam, there were some changes in production which developed with extracting
fragrance from some components using distillation of steam as the process so this shows that
perfume developed with religion. These perfumes were part of daily life of Islamic world that
were extracted from flowers like jasmine and rose or musk.
As per one of the hadith of Sahih Bukhari, it is mentioned that Prophet Muhammad said
to “take bath on Friday which is the most compulsory, cleaning teeth with miswak and the third
one is use of perfume (if available)”. So from Christianity and Islam, it could be proved that
perfumes are one of the most essential parts of human life since the time of its invention. Most
people use this perfume on daily basis while some of them also use it based on occasion (Diagne,
Demont and Ndour, 2017). There was a time when bathing was regarded as dangerous for health
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How fragrance packaging affects decision buying among young Thai consumers

as it weakens organism and wider pores of skin thus making it easier for infections to get enter
into body this shows that perfumes at some point of time were not in use (Consumer Perceptions
Towards Package Designs: A Cross Cultural Study, 2018). So this gave perfume more
popularity not just local people but also among loyal families while it was earlier regarded it as a
luxury product.
Apart from packing of these perfumes in the perfume packaging industry, they are
surrounded by visual attributes that is the main focal point to achieve package designer use many
types of differentiated methodologies in packing. The types of methods and techniques are
certainly being used in order to communicate with themes of packing. The packaging industry
while they are packing perfumes would use art of storytelling for passing their ideas and
creations or thoughts to their customers.
On the other hand, with modifications or use of online shopping and self-service retail
shopping, companies find it difficult to correlate to consumers about their thoughts and
ideologies. If perfumes are not reflecting personality of customers both at time when they are
purchasing it and when they are using it then they will not be happy and there is chance of
decrease in sale of perfumes.
So these companies should not only be focusing on products which they are selling but
also on designing and packaging so that they can communicate with customers. During Industrial
Revolution, manufacturing of perfumes changed drastically with addition of more improved
engineering techniques making production of perfume (Packaging Design Elements and Users
Perception: A Context in Fashion Branding and Communication, 2018). These new techniques
and methods of producing perfume has kept prices lower so that everyone could purchase it but
still it is beyond the reach of many people. As there are so many perfumes which are regarded as
the world’s most expensive brands that is certainly out of reach from common people.
As per statistics of Euro Monitor International of 2015, luxury market is reaching up to
US$330.786 billion in the year 2014 which was the highest of all times. Under this, perfume and
cosmetics market is the largest that are known as affordable, luxury fashion products and also
having many other branded jewellery product line (Supramaniam, Idris and Cheng, 2018). As far
as packaging of these luxurious product is concern it plays very essential role in market of
business.
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How fragrance packaging affects decision buying among young Thai consumers

The packaging of any product will be displaying many features like that of price, indigents,
product’s direct benefits and method to use as well. There is a tough competition with regard to
packaging of perfume products as it also drives the purchasing decisions within brands and
attracts attention of customers as well. In order to be successful in the business, every company
must compete and create a distinctive point of view which is able to inform their uniqueness as a
reason for their existence. To have an effective packaging, it should be easy to understand and
must be relevant to consumers’ life. There is growth and development of social media marketing
and online shopping which are having their own impact on buying behaviour of customers. With
this, packaging of perfumes will also be playing crucial role in motivating customers to buy
product. As it is common that packaging display many important features on it like price, brand
name, benefits of products and its contains as well (Huang and Benyoucef, 2017). Packaging will
imply the most essential part of buying decision of customers especially at time of its purchase
so it need to be attractive for them. Fragrance packaging is meant to express important story
behind the formation of brand name which is selling in marketing like the bottle, scent and box
as well.
In Thailand, market of cosmetics and perfumes as per Euro-monitor is very attractive as
its size is increased in 2017 by 6.5% which is worth 1.5 million Thai baht. This means that
cosmetic and perfume market of Thailand is one of the biggest in Asia which forms about 5% of
its total value in proportion of perfume market only. Customer buying decision is a process
which involves parts like personal thinking, social media influence, and views of others, their
psychology and sociology as well (Impact of Product Packaging on Consumer’s Buying
Behavior, 2018). This process will also be impacted by impression and awareness of customers
which is affected by major factors and is also playing important role in perfume industry. So
packaging design, its colour, brand, price, graphics and shape of packing will be impacting
consumers buying behaviour mostly including like that of young Thai customers. This fragrance
or perfume industry will have major impact of its female customers as they are the highest
consumer of cosmetic products including perfume as well. It is an opportunity for perfume
brands to compete with others in market as per the good packing element of company. The main
purpose of packing designs and graphics on perfume’s pack will be stimulating customers to buy
the product.
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How fragrance packaging affects decision buying among young Thai consumers

1.2 Statement of problem
When Thai consumers are in the decision-making stage, packaging affects their buying
decision more or less. Not only packaging can help customers in buying decision but also, there
are other factors in their mind namely price, brand, promotion and advertising which are affected
more than packaging. Thus within this particular dissertation, research is conducted to find out
all reasons which are attracting young Thai customers towards fragrance. One of the major factor
is that, differentiated packaging which has impact on their buying decision.
1.3 Research aims and objective
1.3.1 Aim
The aim of this research is: To find out how fragrance packaging affects young Thai
consumers on their decision buying.
1.3.2 Objectives
The research has three main objectives:
 To find out how packaging can influence consumers buying decision.
 To find out the elements that is behind the success of packaging from customers’
perception.
 To investigate other factors that influence consumers buying decision namely price,
brand, promotion and advertising.
1.4 Research questions
1) How packaging can influence consumers buying decision?
2) What is the most influential element that can attract consumers from their perception?
3) What are the most influential factor which includes price, brand, promotion and
advertising that influences consumers buying decision?
1.5 Significance of research
This particular research will be helpful and significant in various ways as this is based on
how fragrance packaging affects decision buying among young Thai consumers. So study will be
focusing on which type of perfume customers are preferring and will product’s packaging would
impact their buying behaviour or not. It will be helpful in knowing about behaviour or preference
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How fragrance packaging affects decision buying among young Thai consumers

of customers which is having its impact on their buying decision. Perception and buying decision
are important to study as this will be focusing in improving profits of companies in way of
gaining market knowledge. Research is conducted among young Thai consumers of perfume
who are mainly buying it due to fragrance packaging and brand names as well. This study will be
useful for those companies which are producing and selling perfumes so that they are knowing
about their customers. While it would also be useful for researchers who are making their thesis
or dissertation on the similar topic which is helping them to orderly conduct and conclude
research.
1.6 Scope of research
The current study which is based on ways in which packaging of perfumes are affecting
buying decision of young Thai consumers so there are 3 components based on scope
independent, mediator and dependent variable. So independent variable under this research are
packaging, price, brand, promotion and advertising as these are those factors which is not
relaying on any other components in study. While on other hand, dependent variable which is
buying decision is mainly relaying on packaging of perfume and on perception of customers as
well. In between packaging and consumer buying decision there is perception which is
motivating them to buy product.
1.7 Definition of terms
Packaging- is the process of evaluating and designing up of packages which will protect product
from damaging at time of distributing or storage (Role of Packaging in Consumer Buying
Behavior, 2018). This packaging is an art, technology and science of wrapping product so that it
could be easily distributed, stored, sold and then used by end user. While labelling is mainly in
written, graphical and in electronic format on the package of product which describes ingredients
and use process of particular product enclosed within.
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How fragrance packaging affects decision buying among young Thai consumers

Figure 1: Packaging of perfumes brands
[Source: Role of Packaging in Consumer Buying Behavior, 2018]
The shape of package- this will include figure, size, outline and form of package which
company is manufacturing. This shape of packaging is another factor which is impacting buying
behaviour of consumers as they will find it attractive or not. All perfumes are having their own
shapes and sizes that are making them different from others and impacting consumer’s buying
behaviour as well. Figure (1) below described the evolution of shape of bottle or package of
perfume which will be indicating how it has been evolved.
Figure 2: Evolution of shape of package
[Source: Role of Packaging in Consumer Buying Behavior, 2018]
Colour- it is that property of any object which helps in producing variety of sensations to eyes
while reflecting or emitting lights (Role of Packaging in Consumer Buying Behavior, 2018). This
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How fragrance packaging affects decision buying among young Thai consumers

colour of perfume is meant to define physiology of human’s mind as well the colour of
packaging. As mostly preferred colours by customers including blue, pink, red or purple and
what does the colour of packaging define about smell of perfume or not. Psychologist of
consumer included that they are doing evaluation based on product that is significantly affecting
their purchasing decision in just 7 seconds after they see that particular commodity.
Graphics on the package- different sorts of images which are generated with use of computers
are called as graphics and this is very much common in packaging of perfumes as well. This will
include all types of images and other sort of graphic showing brand or any symbol of perfume on
its bottle. The below image shows graphic on bottle of perfume which is one of the major factor
that attracts customers at time when they are buying it.
Figure 3: Graphics on the package of perfume one
[Source: Role of Packaging in Consumer Buying Behavior, 2018]
Logo- This is called as graphic, symbol, mark or emblem which is showing or distinguishing
brand of perfume with that of others in market (Role of Packaging in Consumer Buying
Behavior, 2018). This logo would be helping customers to make purchasing decision as to which
perfume is to be purchased based on its brand. It is primarily used to promote the product in way
of public identification and recognition containing text or name of brand.
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How fragrance packaging affects decision buying among young Thai consumers

Figure 4: Logo of various perfume brands
[Source: Role of Packaging in Consumer Buying Behavior, 2018]
Package materials- wrapping and packing materials used for distributing and storing of perfume
bottles that is mostly preferred as white cork. There are mainly 3 types of materials used for
packaging which includes corrugated boxes, paper bags and paperboard cartons. This corrugated
boxes material will be used to protect content while transporting and distribution to attract people
as well.
Figure 5: Package materials of perfumes
[Source: Role of Packaging in Consumer Buying Behavior, 2018]
Price- this is one of the major factor which helps people to distinguish between varieties of
brands of perfumes. Price is quantity of amount which is given from one party to another in
return for one particular unit of goods or services that is mainly expressed in units of currency.
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How fragrance packaging affects decision buying among young Thai consumers

At time of buying perfume, price is also playing important role which could change the mind set
of people (Role of Packaging in Consumer Buying Behavior, 2018). Price of perfumes will be set
as per their brands and ingredients (which it is made up). This price of perfumes would differ in
various countries as per its popularity or demand in that nation. For example, below mentioned
perfume Jo Malone London Wood Sage & Sea Salt (100 ml) has different prices in Singapore
(S$20), London (S$150) and UK airport (S$120).
Figure 6: Jo Malone London Wood Sage & Sea Salt (100 ml) price
[Source: Role of Packaging in Consumer Buying Behavior, 2018]
Brand- It is regarded to as symbol, name or design of any product or service which is makes its
customers differentiate between one company with the other. Brand name is mainly used at for
activities like that of marketing or business advertising (INFLUENCE OF BRAND NAME ON
CONSUMER DECISION MAKING PROCESS, 2018). The most rated or top selling brand of
perfumes included Paul Sebastian, Calvin Klein, Elizabeth Arden and Giorgio Armani
Figure 7: Brands of perfume
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How fragrance packaging affects decision buying among young Thai consumers