Effect of Packaging on Perceived Quality and Brand Loyalty: The Mediating Role of Brand Association in Over-the-Counter Market

Abstract

Distinctive packaging design and strong brand association are essential elements to increase brand quality and customer loyalty which can insulate a company against competitive actions in a retail environment. However, there is a relative scarcity of studies on the impact of packaging on brand quality and loyalty through the mediating effect of brand association in the overthe-counter health market. Against this background, the current study aimed to investigate the packaging's effect on brand quality and loyalty through the intervening effect of brand association in the over-the-counter health market. Using a systematic sampling technique, survey questionnaires were distributed to 348 customers shopping in the over-the-counter market. The data gathered were statistically analysed using structural equation modelling via SPSS Amos 20. The research revealed that brand association partially mediates the path between packaging and brand quality but fully mediates the packaging's effect on brand loyalty in the over-the-counter health market. The study also found that brand quality plays a partial role in the impact of brand association on loyalty in the over-the-counter health market. The study, therefore, established that the interplay of product packaging and brand association are crucial elements for enhancing the brand quality and the customers' loyalty in the over-the-counter health market. Besides, the research confirmed that enhanced association and quality are pre-requisite for developing and enriching loyalty in the over-the-counter health market.

Exploring the Nexus between Packaging, Quality, Equity and Loyalty in Drug Industry

“…The results of the study show that packaging has a positive and significant effect on the medicinal herbal product quality in the drug industry. This result is consistent with previous studies (Underwood & Klein, 2002;Wang, 2013;Mensah et al, 2022), which indicate that packaging has a significant influence on product quality. This implies that the quality of the medicinal herbal product is reflected in the quality of its packaging.…”

“…The author also stated that perceived quality is a key indicator of user satisfaction which drives future buying decisions and customer loyalty. Furthermore, earlier studies reported that perceived quality positively influences brand equity (Yoo et al, 2000;Buil et al, 2013) and brand loyalty (Hyun & Kim, 2011;Gil et al, 2007;Mensah et al, 2022), and in turn, perceived quality is positively and significantly affected by packaging (Underwood & Klein, 2002;Wang, 2013;Mensah et al, 2022).…”

“…It has also been contended that packaging has a positive impact on brand equity via the point-of-difference created by functional or aesthetic packaging attributes, or indirectly via the role of brand image and awareness (Keller, 2013;Klimchuk & Krasovec, 2006). Prior studies also indicated that packaging positively influences perceived product quality (Underwood & Klein, 2002;Wang, 2013;Mensah et al, 2022) and brand loyalty (Dhurup et al, 2014;Oppong & Phiri, 2018b).…”

“…A review of literature also suggests that a distinctive product packaging enhances perceived quality (e.g., Wang, 2013), brand equity (e.g., Klimchuk & Krasovec, 2006;Keller, 2013), brand loyalty (e.g., Dhurup, Mafini, & Dumasi, 2014), and in turn, perceived quality (e.g., Hyun & Kim, 2011;Mensah, Oppong, & Addae, 2022) and brand equity (Lassar, Mittal, & Sharma, 1995;Oppong & Phiri, 2018a) positively impact on loyalty. Likewise, studies show that increased perceived quality positively influences brand equity (Yoo, Donthu, & Lee, 2000;Buil et al, 2013).…”

“…This indicates that perceived quality and brand equity can play an intervening role in the influence of packaging on brand loyalty. Prior research investigated brand association's intervening role in the effect of packaging on perceived quality and brand loyalty (Mensah et al, 2022). However, there are limited investigations on the relationship between packaging and loyalty via the mediation effects of perceived quality and brand equity in the drug industry.…”