Profiting from (not too many) package designs: evidence from a firm-level design registration analysis in the food manufacturing industry

Abstract

PurposeResearchers have pointed out that product packaging in the food industry has a significant influence on consumer decision-making. However, the impact of package development on firm performance has not been investigated due to the limited availability of analyses on package design. The purpose of this study is to investigate the relationship between package development and firm performance in the Japanese food manufacturing industry.Design/methodology/approachThis study empirically analyzed the relationship between package development and firm performance in the Japanese food manufacturing industry by using design patents data.FindingsAs a result of multiple regression analysis, it became clear that the number of design patents related to packaging is significantly linked to the operating profit ratio, growth rate of sales and increase in operating profits of firms. Moreover, the results show inverse U-shaped effects between design patents and firm performance.Research limitations/implicationsThe results imply the importance of effective package design management.Originality/valueThis study provides novel insight on both marketing strategy and intellectual property management in the food industry, and it also provides a new method for empirical analysis using design patent data.