Canadian Packaging Machinery Market Research Report - PMMI

2.5. MARKET DRIVERS: FACTORS THAT INFLUENCE PURCHASE
DECISIONS
In assessing opportunities in the Canadian packaging machinery market and
strategies for success, it is important to first identify and understand the factors that
influence the purchase decision. Representatives of the packaging machinery users
included in the survey were asked to rank a list of factors that had been found in
other markets to enter into the purchase decision. Many pointed out the fact that
purchase determinants were usually situation specific but they were able to respond
in general terms. The results were as follows:
Most Important Factors
Interestingly, price was not considered to be the most important factor influencing the
purchase decision. Providing the price quoted was reasonably within the market
range, a number of other factors were considered to be more important purchase
drivers. The four most important were said to be:
• Quality/reliability/durability
- This factor was identified by the largest number of respondents as being the
most important. They expressed the need to be certain that they could
depend upon the performance of the equipment over its operational life. This
is consistent with the findings in other PMMI markets.
• Potential operating cost savings/added value
- In today’s operating environment, virtually all respondents stated that they
were continually searching for efficiencies in their operations and this played a
major role in their equipment choices. The driving force behind this is the
need to improve operational efficiency and get more out of each expenditure
dollar.
• Operating reliability/accuracy
- This is closely associated with the first factor. As one respondent expressed it,
“I cannot afford high levels of downtime or a high proportion of defects so I
must have reliable equipment.”
• Equipment characteristics and features
- The equipment must, of course, be able to perform the required tasks in a
manner well suited to the needs of the purchaser. In this it was very important
to purchasers that installed machinery be able to achieve specification run
levels or perform as claimed. Within the equipment characteristics, flexibility
and speed were considered to be among the most important attributes.
SMG/Columbia Consulting Group Page 17