This thesis titled "The Appeal Factors of Biodegradable Packaging in Indonesia" is an original work and property of Vanda Gabriella Singing Glory Oeripto. In this study, the attractiveness factors for biodegradable packaging are studied to find out whether Indonesian consumers are interested in this new form of environmentally friendly packaging. In this part of my graduation report, I would like to express my gratitude to God, who is the creator of everything in this world.
I thank God for completing my research and report and all the good and bad things that happen in my life. For all the parts that I have been through in this life, especially during my education, I am really thankful to my family who are always with me. And yes, I believe you will still be with me in another exciting chapter of my future life.
I realize I can't name every name one by one, know from the bottom of my heart, I am truly grateful for all the support, knowledge, guidance and encouragement that you have shared over all these years.
- Background
- Problem Formulation
- Research Questions
- Research Objectives
- Research Limitations
- Packaging Materials
- Plastic
- Plastic Danger Towards Environment
- Biodegradable Packaging
- Problem of Shifting to Biodegradable Packaging
- Buying Process of B2B and B2C Market
- Attributes of Consumers’ Purchasing Decision
- Attributes Levels
- Past Research
In general, market research aims to understand consumers, market trends and product performance so that companies are able to deliver the right product value to consumers. Also considering the boiling point, melting point and hazard level of the product, it is important to prepare the appropriate packaging material and the right packaging process. Of all the uses of plastic, packaging is one of the most prominent uses for plastic, so innovators have mostly focused their research on creating a biodegradable packaging material.
After the user has recognized the need, they must define the characteristic or specification of the need, as well as the quantity of the product. Because of that, the design of the product packaging, such as color, catchy phrase or something as detailed as consumer value tag in the products, can be the most important method for the brand to really attract customers to buy the product. Thus, in this dynamic economic condition, where many competitors strive to get customers, the company must be able to create and design a good brand that can represent the quality of the brand, as well as the company itself.
On the other hand, Bread Talk is a bit different from Sari Roti, both in terms of the target customer and the type of business. Another research that is used as a reference is that of Susanti (2011), which seeks to understand which of the attributes consumers consider most important when buying salted eggs. The research looked at the relative importance of attributes and the utility value of attribute levels.
- Research Methodology
- Orthogonal Array
- Test Cards
- Sampling
- Sampling Size
- Sampling Method
- Consumer Evaluation
- Participants’ Profile
- Data Collection
- Data Analysis
The use of orthogonal array is important as the starting point of conjoint analysis as it simplifies the design of the experiment and minimizes the number of choices. Each set of factor levels in an orthogonal design represents a different version of the product under study and must be presented to the subjects in the form of an individual product profile. Based on the literature, this research aims to involve a minimum of thirty to sixty respondents in order to investigate the consumer's preference for biodegradable packaging.
With non-probability sampling, the probability that each element is included in the sample cannot be specified. Each card contains a mix of three attributes with different attribute levels in which participants ranked their favorite card in order (1-12 most to least favorite) using the drag-and-drop survey tool. In this study, the researcher would like to check whether the millennials are concerned about the environmental issue.
These types of questions are important for the researcher to understand the consumer pattern, including their age, gender, education, income, location, and whether they care about the environment. In this study, the use of SPSS software will help to analyze the large amount of data. Considering the type of data that will be entered and the desired result, conjoint analysis SPSS will be the most appropriate analysis to be used in this study.
The desired output will be in the form of an importance rate, which is able to measure consumer preference with respect to attributes and attribute levels. The data will then be analyzed using IBM SPSS 25 software and run using syntax SPSS. After entering all the commands, select the Run menu, then the output will be generated joint and complementary output.
In addition, to generate a deeper analysis, the researcher clusters the result based on the profile of the participants: gender, income level, place of residence and environmental awareness. The clustered groups are then analyzed using conjoint analysis in SPSS to obtain relative importance and utility value.
- Survey Results
- Conjoint Analysis – All Respondents
- Utility Value
- Relative Importance
- Conjoint Analysis Clustering Based on Gender
- Conjoint Analysis Clustering Based on Income Level
- Conjoint Analysis Clustering Based on Domiciles
- Conjoint Analysis Clustering Based on Environmental Awareness
Conventional style is the most desirable attribute level in terms of design with a utility value of 0.080. This is demonstrated by its relative importance value of 31.333, which is the lowest among the other options. Based on the attribute levels of each choice, seaweed has the highest utility value for packaging materials with a value of 0.057.
For brand, Bread Talk has the highest utility value of 0.302, while unique most prefers the feature levels for design, with its utility value of 0.126. For middle to elite groups, design is the most preferred attribute with a relative importance value of 35.063. For the different attribute for packaging material, seaweed has the highest utility value of 0.126, while bread talk is the most preferred attribute for branding, with utility value of 0.189.
After packaging material, design is the second most suitable attribute with a relative importance value of 34.021. The brand is the least desirable, as its relative importance value is 31.347. Comparing the different attribute levels for each option, seaweed is the most suitable attribute for packaging materials with a utility value of 0.160.
For branding, Bread Talk is the most preferred, with a utility value of 0.083, while conventional design is the most preferred design attribute, with a utility value of 0.125. Going into the most detailed attribute for each option, seaweed is the most preferred packaging material chosen by the environmentally conscious group, with a utility value of 0.218. For this group, packaging material is still the most important attribute, with a relative importance value of 34.273.
For different attribute levels, plastic is the most suitable packaging material with a utility value of 0.194. Sari Roti is the most preferred brand with a utility value of 0.236, while this group has the advantage of creating a unique design with a utility value of 0.347.
- Discussion – All Responses
- Utility Value of Packaging Material
- Utility Value of Brand
- Utility Value of Design
- Summary of Relative Importance
- Discussion – Clustering Based on Gender
- Discussion – Clustering Based on Income Level
- Discussion – Clustering Based on Domiciles
- Discussion – Clustering Based on Environmental Awareness
The high preference for unique packaging design is because in Indonesia, unique packaging design can rarely be found, especially for bread. Meanwhile, in brand preference, the male group has the highest preference for Sari Roti and the least preference for Bread Talk. Based on the conjoint analysis, the result shows that the female group has the least preference for Tous Les Jours and the most preference for Bread Talk.
The least advantage of female consumers in Tous Les Jours may happen because the brand is known as a premium brand, while consumers can get a similar version of bread with a lower price in Bread Talk, so the group of women is very popular in Bread Talk. While both groups have the least preference for minimalist packaging design – match the overall preference from the aggregate data in subsection 5.1.3. The male group gives the highest preference to the plain design because men generally prefer the simple design.
On the other hand, female respondents show their significantly high preference for unique packaging design. For brand preference, low income group has least preference on Tous Les Jours and highest preference on Sari Roti. On the other hand, the low preference for Tous Les Jours most likely happens because of their economic inability to afford the product.
Middle to high income group has the highest preference for Bread Talk and the least preference for Tous Les Jours. This trend of low preference in minimalist packaging design also appears in middle to high income groups. On the other hand, middle to high income group has a high preference on unique packaging design.
For the use value of the attribute levels, the environmentally conscious group most prefers seaweed, bread talk and conventional design. Moreover, the relatively conscious group has a high preference for Sari Roti, which may mean they like an affordable brand. The relatively conscious group has the most preference for unique packaging design and a low preference for conventional design and the lowest preference for minimalist design.
On the other hand, the environmentally conscious group gave the most preference to seaweed as a packaging material, and they give a considerable preference to paper, and the least preference to plastic packaging.
Conclusions
For example, people with low incomes prefer the Sari Roti brand and conventional packaging design – meaning they choose a product that they feel is affordable and suitable for their income. For example, people who live in crowded cities need to have a simpler way of thinking, so they may prefer conventional packaging that is familiar but still functional. While those who live in small towns may like to enjoy the excitement that drives them to favor unique packaging – which is quite a new thing for them.
In practice, if companies plan to use biodegradable packaging in their product, they should think ahead because not all Indonesian consumers are aware of environmental issues. Therefore, the best option right now is to create and start a campaign about the dangers of plastic before using biodegradable packaging for the products. Also, if companies, when using biodegradable packaging, must look at other attributes that are able to support the overall product value and also strategize to target the right market segment.
Recommendations
Study the influence of packaging shape and color on consumer expectations of milk desserts using word association and conjoint analysis. Consumer preferences for food safety attributes in fresh apples: market segments, consumer characteristics and marketing opportunities.
