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 over- the-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.