The effects of packaging design of private brands on consumers' responses

Abstract

This study examines how retailers can capitalize on the packaging design for multitier private brands to drive positive consumer responses. We shed light on cognitive and affective consumer responses in relation to consumers' visual processing, price‐consciousness, and perception of retailer‐private brand congruity. The results of two studies, a pilot test, and a post‐hoc test with US consumers confirm that premium packaging design has a strong, positive impact on brand equity and consumer choice of private brands over national brands, through quality perception (i.e., cognitive response) and perceived hedonism (i.e., affective response). The impacts of packaging design on consumer responses are conditional such that packaging design influences those with a high or medium level of visual processing (i.e., a consumer characteristic), but not those with a low level of visual processing. Furthermore, we show when the premium packaging may not be preferred by showing that the moderating effects of visual processing are conditional upon the level of price‐consciousness and retailer‐private brand congruity. As one of the first studies on this topic, these insights advance the literature and help retailers develop and tailor implementations of their private brands.

Pricey therefore good? Price affects expectations, but not quality perceptions and liking

“…Known as the price‐quality heuristic , it is one of the core findings in traditional‐marketing literature (Chang & Wildt, 1996; Chitturi et al, 2010; Kardes et al, 2004; Woodside, 2012) and has been shown to apply across a wide range of situations where people report their beliefs and preferences for products (John et al, 1986; Lalwani & Monroe, 2005; Naylor et al, 2006; Niemand et al, 2019; Pechmann & Ratneshwar, 1992; Rao, 2005; Rao & Monroe, 1988; Suri & Monroe, 2003; Veale & Quester, 2009; Verdú Jover et al, 2004). It also corroborates prior work showing that consumers rely on external product attributes to gauge product quality (Allison & Uhl, 1964; Garvey et al, 2016; Gonçalves et al, 2020; Hwang & Kim, 2022; Marozzo et al, 2020; Moore & Olshavsky, 1989; Rauschendorfer et al, 2022; Solja et al, 2018)—particularly when quality information is difficult to access (Akdeniz et al, 2013). Thus, telling a person that something costs more will elicit expectations of better quality and liking.…”

Application of 3D Digital Image Processing Technology in Modern Packaging Design

“…It is completely consumer-centered and refuses mandatory information input. People have the right to choose information [5]. The application of AR technology can reduce unnecessary text information on packaging and decoration, effectively enhancing the overall artistic beauty of the packaging, while the information is hidden in the AR virtual scene, which is a new interactive form brought by technology to people, completely independent.…”

Virtual is so real! Consumers' evaluation of product packaging in virtual reality

“…According to the cue utilization theory (Olson, 1978), products/packaging present multiple cues, which consumers use to assess the products. These cues are acquired and processed to determine purchasing decisions (Hwang & Kim, 2022)…”

“…According to the cue utilization theory (Olson, 1978), products/packaging present multiple cues, which consumers use to assess the products. These cues are acquired and processed to determine purchasing decisions (Hwang & Kim, 2022). Since VR can replicate RL elements and deliver realistic cues, it would seem reasonable to achieve similar results across the two realities.…”