Cost Implication of Packaging and Labeling on Profitability of Bakery Firms in Ebonyi State, Nigeria

Uguru, Leonard Chukwuma, Nnachi, Robert Azu, Nkwagu, Louis Chinedu


The food processing industry and their distributors are presently facing extra challenges and demands on how to provide the variety of foods that are expected from them by the consumers and still strive to remain profitable. The study aims to ascertain the cost effect of packaging and labeling on the profitability of bakery firms in Ebonyi State, Nigeria. The study adopted an ex-post facto research design. The data used was mainly time series data which are quantitative in nature and the ten year-data generated for the study was analyzed using multiple regressions. The Microsoft Excel spreadsheet was used to transform the data into its usable format for analyses and the Statistical Package for Social Sciences (SPSS) was employed for data analysis at 5% level of significance. The findings, however, revealed that the cost of packaging and labeling has no significant effect on the profitability of bakery firms in Ebonyi State, Nigeria. Notwithstanding the potential for packaging to successfully achieve marketing goals in bakery, it is recommended that managers should be mindful of the percentage of their operating costs that goes into packaging in order not to affect their profits negatively.

Keywords: Bakery, Packaging, Labeling, Profitability,

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