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Effect of Packing Cost on The Sales Price and Contribution Margin

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  • Gulsah ATAGAN

    ()
    (Dokuz Eylul University, Faculty of Economics and Administrative Sciences, Department of Business Administration)

  • Suleyman YUKCU

    ()
    (Dokuz Eylul University, Faculty of Economics and Administrative Sciences, Department of Business Administration)

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    Abstract

    The basic characteristic of packing is to protect the product from external factors while the product is delivering to consumers. However, recently packing has become an indispensable aspect of marketing. Because, packing is considered as a silent dealer which directly reaches consumers. Packing is one of the most important factor of product sales. Consumers assess a product with its packing and make up a purchasing decision accordingly. In addition to its protective function, packing also performs functions such as selling and communication.Recently, firms have begun attaching great importance on packing investments. A high-quality and attractive packing means expenditure. A firm can increase its sales as much as it creates difference with its packing. Therefore, it is required to take a risk of increasing the packing costs for increasing sales. Increasing packing cost is an important factor of prices. In this study, the relation between the packing cost and price has been researched by making regression analysis.

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    Bibliographic Info

    Article provided by Ege University Faculty of Economics and Administrative Sciences in its journal Ege Academic Review.

    Volume (Year): 13 (2013)
    Issue (Month): 1 ()
    Pages: 1-9

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    Handle: RePEc:ege:journl:v:13:y:2013:i:1:p:1-9

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    Web page: http://iibf.ege.edu.tr/ENG/
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    Related research

    Keywords: Packing; packing cost; cost-price relation; regression analysis;

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    1. Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," NBER Working Papers 8564, National Bureau of Economic Research, Inc.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Is the 2007 U.S. Sub-Prime Financial Crisis So Different? An International Historical Comparison," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 291-299, September.
    3. David J. McKenzie, 2006. "The Consumer Response to the Mexican Peso Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 139-172.
    4. Shaun French & Andrew Leyshon & Nigel Thrift, 2009. "A very geographical crisis: the making and breaking of the 2007--2008 financial crisis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 2(2), pages 287-302.
    5. Ang, Swee Hoon, 2001. "Crisis marketing: a comparison across economic scenarios," International Business Review, Elsevier, vol. 10(3), pages 263-284, June.
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