Can package size be the cause of purchase decision made by customer?

When the size of the product is large, the transaction cost reduces as the purchase cycle of a customer increases. This also leads to a higher volume used owing to lower unit cost (Lyn 1992, Warchet, Lee, Adewole, 1975). Another possible area that has not been researched much is that unit cost often varies with pack size. Unit cost and pack size have an inverse relationship resulting in purchase of large pack size. Some customers do not pay attention to any of the informational elements, functional elements of environmental elements but just go with visual imagery which is due to low involvement which is very common in FMCG products (McWilliam, 1997).

Customers purchase pattern depends on multiple factors and from the pilot study we found that price is among the top 3 factors. The study also showed us that the total price of the product is more important to a customer which symbolizes purchasing power and unit price is second priority. When 2 different pack sizes are launched, small and large, the larger of the pack size is bound to generate higher usage and it has a lower unit cost. (Brian Wansink, 1996). We are studying the impact of involvement on unit price and how it impacts purchase decision of the customer. When customers are loyal to a brand, the purchase comes automatically and unit cost is ignored. Convenience of purchase and lower transaction cost are great influencers but lower unit cost is what converts to a sale in product and lower unit price indicates larger pack size.