PACKAGING OPTIMIZATION MODEL USING COST-BASED BEHAVIORAL PERSPECTIVE APPROACH IN FOOD AND BEVERAGE INDUSTRY

The high competition in the food and beverage industry in Indonesia, where packaging has a very important function, with the main function to protect the product, as well as being a factor in attracting consumers’ interest in making purchases. Packaging production is dominated by several companies, which when categorized are divided into middle-up manufacturing and middle-low manufacturing. The research is necessary to create an optimal packaging design model by considering the culture and habits of consumer. Capturing customer behavior and costs has a control function. Ethnographic studies are used to explore packaging elements that are important to consumer and Structural Equation Modeling (SEM) was used for data processing. The result provides a conceptual model as well as recommendations for food and beverage manufacturers in terms of the packaging used. Seven elements of packaging that deserve primary attention: design, image, typography, color, size, material and quality. Using habit and cost factors has the control variables, with maximum profit as the objective function. Recommendations for middle-up manufacturing are focused on four packaging elements: design, image, color and quality. It is recommended to maximize strategies for customer retention and improving customer loyalty. Middle-low manufacturing is focused on four packaging elements: color, size, material and quality. It is recommended to maximize strategies to encourage repeat business and boost productivity. The features identified in this research are very possible to be implemented by food and beverage manufacturer, along with recommended strategies.