The Impact Of Printed Nutritional Labeling On Consumer Marketing Essay

Published Date: 23 Mar 2015

Printed nutrition labels are proposed to be used to help people make healthier choices, and consumers recognize them as a tool to improve health. Consumers can get relevant nutritional information with the help of nutritional labeling. It is found in researches that the consumer purchase behavior is affected by the nutritional labeling. The presence of nutritional information may influence the consumers to switch from unhealthy food products towards healthy food products (Anderson &Zarkin, 1992). The interest on the consumers is to purchase and intake of improved nutritional foods which thus depends on the quantity and quality of information provided through a number of sources that also includes nutritional labeling. A printed label not only carries a brand name but also a source of important information (Caswell &Padberg, 1999). (Nutritional labeling)

Due to globalization, there is an increase in food information available to consumers through sources such as food nutritional labeling, electronic and print media. Advertising involvement is another marketing concept that helps to identify consumer interest in processing making information. The impact of advertising creates a perception in the minds of consumers regarding the product and increases the awareness and reinforces the consumer to purchase a certain brand that has high advertisement involvement (Kapoor&Kulshrestha, 2008).

As the consumers, due to globalization have become more demanding, therefore, the producers have understand the psychology of consumers and guide them with practical knowledge to cater the market and serve the people. So, consumers can end up making better food choices if they value and make use of the nutritional labeling. (Consumer awareness) or (nutritional knowledge)

The government is also playing an essential part by imposing restrictions on the consumption of some products. Therefore, they are regulating product labeling especially on food processing where it is manufactured. This has a positive effect on consumers due to the common label and the amount of nutrient content present in food. Which creates a hypothesized link between the consumer's nutritional information and their behavior (Senesi et al, 2006)? (Nutritional knowledge)

Labeling is a part of packaging. Label can be defined as an attachment to the product but according to the Food and Drug Association (FDA), a label is the chief point of contact between the manufacturer and the purchaser. It is described as a crucial part of the manufacturer's marketing plan. FDA further explains that the label should carry the name, brand name and the net weight of the product with nutrition facts along with some details of the manufacturer. These food labels increases in complexity as the food products moves from basic commodities to highly process. It therefore keeps a check of the quantity of sugar, fiber, protein that is consumed and allows the purchasers to make an informed decision of the product's worth (FDA, 1998). (Nutritional labeling)

The consumers with the help of labeling gets to know and understand the products characteristics, nutritional properties, preservation and instructions to facilitate the consumers to make a sound decision at the time of purchase, hence it carries a great significance (Senesi et al, 2006). (Nutritional labeling)

By identifying the factors that have an effect on the people's use of dietary labeling, the manufacturers can do the profiling of the consumers that do or do not exercise nutritional food labeling. It can result in improving public health, manipulating the proper labeling and increasing the productivity of the company (Senesi et al, 2006). Similarly the consumers who have more available time for grocery shopping have been found to be more likely to be classified as label users (Drichoustis 2006). It can also be seen that consumers who are more anxious about their health and nutrition give more time to read the printed nutritional labels. Therefore, consumers who are on a special diet or organic buyers, even those aware of any kind of diseases prefer to search for on-pack printed nutrition information. (Drichoustis 2006). Type of household also holds effect on reading of printed nutritional labels, as in a case where smaller households or households with young children are more involved in nutrition information search behaviors. . (Effect of nutritional labeling on decision patterns)

The effects of printing nutritional labeling on the buying behavior of consumer can be even greater if labeling is combined with an information campaign to educate consumers. It seems that nutritional information affects purchasing behavior because it influences judgments and change the perceptions of the product in the eyes of the consumers (Drichoustis 2006). Health benefits in the front of the package have been found to create favorable judgments about a product. For example, when a product features a health or nutrient content on it, consumers tend to view the product as healthier and are then more likely to purchase it, independent of their information about that particular product or brand. (Effect of nutritional labeling on decision patterns)

Other researchers have argued that provision of health related or printed nutritional labeling information does not always lead to healthier consumption of diet. Most empirical research, however, suggests that providing printed nutritional labeling information can significantly change dietary patterns in a consumer's lifestyle of eating (Drichoustis 2006). Printing of Nutritional labels is also associated with giving consumers an edge to improve their diets by intake of high vitamin C, low cholesterol, and low percentage of calories from fat as they are now able to know what exactly they are consuming.

With the guidance of dietary health experts, consumers can utilize the nutritional labeling to make better choices and to maintain a well balanced diet. According to FDA (1998), consumers can enjoy a variety of foods; have a hale and hearty diet with low cholesterol/fats. Take a diet with different fruits or grains and can moderate the usage of salt and/or sodium if nutrition information is practiced. Hence, it carries a relationship between the nutrients and the threat of a disease.

If the packaged food products are not labeled, customers may not be aware of their nutrient content. If the consumers form their own belief about nutrient content based on advertising or their own knowledge about food, it can result in underestimation or overestimation of the food content in untagged food products (Anderson and Zarkin, 1992). (nutritional labeling)

Especially for prepared food products, nutritional labeling is required more often (Godwin, Henderson, & Thompson, 2006). Recently Food and Drug Association (FDA) conducted a research for anticipated changes in the plan and for the usage of the current labels. Therefore, with the sample size of 160 consumers to know if they use the labeling and if so, which part of it is more useful. Almost 21% consumers said that they always examine the tagging while the majority of them told that they often use the label before purchasing the item for consumption. Component of the label most frequently read is of fats, calorie, sugar and fiber contents. The list of ingredients with the health statements were read less. Respondents using high calorie food items like chips, sodas, bakery products etc said that that do not make use of calorie part while two thirds of them said that they use the labeling rather than relying on their food knowledge and they do understand the importance of labeling. (Nutritional labeling)

So it can be understood that majority of the respondents use and understand the significant of nutritional labeling and perceived themselves as knowledgeable consumers but a large survey has to be conducted to find the complete awareness and the consumers indulgent. (Godwin, Henderson, & Thompson, 2006). A consideration to the food tagging can influence a change in purchasing pattern that can result in improving health. (McLean 2001). FDA with its efforts of providing food information on packaged food items educates the consumers and helps them in the purchasing decision (Satia, Galanko&Neuhouser, 2001). (Nutritional labeling)

Consumers may be aware about the importance of nutritional labeling but time can be an obstacle for the people who have to accomplish plenty of tasks. The purchase decision of employed consumers regarding the quality of product can be low, the reason being less time to spare on labeling than the unemployed consumers who have the time to make an appropriate decision regarding the quality of food products they will purchase (Kim, Nayga& Capps, 2001). People make use of the label for various purposes but consumers should be encouraged to use the label more often and create awareness on how to apply this information more efficiently and conveniently. (Center for Food Safety and Applied Nutrition 2004). Therefore, policy makers should identify different ways on how to motivate people to change the behavior of reading nutritional labeling before purchase of the packaged product. (Consumer awareness n involvement while making purchase decisions)

According to the Lancaster Product Characteristics theory in 1966, the consumers are able to recognize and measure the important attributes of the goods available in the market and then make perceptions about each product or brand. The product characteristics are the basis for involving consumers into information search. This information search is primarily for printed nutritional labeling of the products and secondary factors are its price, advertisement or brand name. (Consumer awareness n involvement while making purchase decisions)

Consumer search for product information is an active process that involves reading nutritional labeling and then comparing them with other product's information and after evaluation of each product's information a consumer makes a right decision for purchase. The main cost for a consumer in searching information through label use is the time he/she spends on reading labels; the benefits of this will be healthier food choices. Consumers that are health conscious or have poor health condition through this will be able to search for a more nutritious diet and a healthy life. thus reducing all the risk of an unhealthy diet. (Consumer awareness n involvement while making purchase decisions)

Time pressure, working status and income are some of the factors that are found to affect nutrition information search. It is also found that the time consumers spend on grocery shopping affects nutritional label use. The more a consumer feels that his health is likely to experience in the future that is the greater the perceived health risk the greater will be information search.. Research on consumer risk suggests that perceptions of risk motivate people to increase their information search

Nutrition information may assist label use by increasing its benefits and by increasing the efficiency of their use. Levy and Fein (1998) revealed the effect of knowledge on consumers' ability to perform nutrition label use tasks. In Addition, Guthrie et al. (1995) found a positive relationship between label use and nutrition knowledge, indicating the value of nutrition knowledge as a determinant of label use. Nayga (2000) on the other hand, found that nutrition knowledge does not affect label use Fox, Hamilton, & Lin, 2004).These differences in results could be due to differences in methods, samples, timing of the study, etc. Our study will search this complex relationship of nutrition knowledge and label use. (Consumer awareness n involvement while making purchase decisions)

A label might carry only the brand name or a great deal of information (Kotler, 2001). A label is the most important point of contact between the manufacturer and the buyer and should be thought of as an integral part of the producer's marketing plan. It is not just a piece of paper stuck onto the container but should be an expression of a number of important decisions that have been made about marketing. A label should clearly and simply state the name of the product, the nutrition facts panel (nutritional label), the net weight, the name and address of the producer, and the brand name. (Keep it on top under nutritional labeling heading)

The nutritional labels have become increasingly important, particularly as products move from the status of basic commodities to highly processed, value-added products significance of a well-balanced diet. Nutrition information on groceries items allows consumers to consume a range of healthy foods, maintain optimum weight and choose a diet with low fat/ cholesterol. Select a diet with abundance of vegetables, fruits, and grain products, and restrain from sugars, salt/sodium that are considered unhealthy. Consumers can use health claims, which appear on the front of food packages, to recognize foods with positive nutritional qualities related to risk factors and wellness. These are the claims about the relationship between a nutrient or a food and the risk of an illness or health-related condition (Jeddi&Zaeim, 2010).

Nutritional labeling is found to affect the consumer buying behavior significantly. Evidence reveals that nutrition information may influence consumers to switch utilization away from unhealthful food products to 'healthy' food products more easily (Anderson &Zarkin, 1992).Improvements in nutrient intake of the population depend on the contact of demand and supply forces in food markets. On the demand side, consumers' interest in the purchase of diets and products with better nutritional label has a direct effect on nutrient intake. Therefore, Consumers' skill to choose their diets depends partly on the quantity and quality of information available through a diversity of sources, as well as nutrition panel food labels (Jeddi&Zaeim, 2010). (Nutritional labeling)

Consumer involvement is defined as the consumer's interest of an object (e.g. product or brand, advertisement, or purchase situation) based on the natural needs, values, and interests of the person (Solomon et. al., 2004). Consumer involvement play an important part in buying behavior as it diverts their attention to a brand, product or service depending on his or her needs and requirement. It is important to link consumer involvement of a product with consumer buying behavior to understand the impact of nutritional labeling on consumer buying behavior. (Anderson & Zarkin,1992). (Keep in starting or under another heading). Or (Consumer awareness n involvement while making purchase decisions)

There are many issues and questions related to food labeling. One such question that has been raised across continents is how far the consumers are aware of food labels and can they comprehend the information provided on the labels. Further, how far the aware consumers take into consideration food label information while making purchase decisions? These questions are very pertinent in today's business environment when food companies are coming under stringent regulatory pressures to disseminate correct and appropriate information regarding food items. These labeling regulations essentially reflect response to consumer's right to know the content and nutrition of a particular food product. The objective of these regulations is to provide consistent, understandable, and usable labels that can help consumers make informed and healthier food choices (Sushil Kumar & Jabir Ali, 2011). (Consumer awareness n involvement while making purchase decisions)

There are three main components of involvement which are personal factor, object or stimulus factor and situational factor. These factors have different effects on different components of consumer behavior and can lead to varying results and consequences on consumer buying behavior, which ultimately affects the consumer brand preference (Kapoor&Kulshrestha, 2008). The different types of involvement greatly influence the purchasing decision of consumers through which their buying and consumer behavior can be determined. The concept consumer brand preference is initiated here by the consumer who can have high or low involvement with the product and it becomes the basis for his/ her choice of products and brands. Both consumer and product involvement are the important concepts to understand consumer brand preference and related to their buying behavior. (Consumer awareness n involvement while making purchase decisions)

Consumers placing importance on price are less likely to use nutritional labels (Drichoutis, Lazaridis&Nayga, 2005). This can be explained by the fact that consumers who place high importance on the price characteristic are actively looking for price information, which may then restrain them from exploratory nutritional labels to either avoid excess information or simply because of lack of available time to do so. Where as, people placing high importance on nutrition is more likely to use nutritional labels or to use precise nutrient information (Drichoutis, Lazaridis&Nayga, 2005). (Price can change coumser buying decision on products)

Nutrition knowledge may assist label use by increasing its perceived benefits and by increasing the effectiveness of label use, in this manner diminishing the cost of using labels. Early studies of label use found a relationship between nutrition knowledge or self-perception of knowledge and the use of specific nutrients. Moorman and Matulich (1993) showed that higher levels of health knowledge have a positive effect on information purchase from media sources (including nutrition label reading). It was also found that consumers with more knowledge were less skeptical toward nutritional information. In addition, other research also revealed the positive effect of knowledge on consumer's ability to perform nutrition label use tasks. (Nutritional knowledge n education)

Although it is reasonable to anticipate that nutrition knowledge can affect nutritional label use, it is also possible that label use can affect nutrition knowledge. For example, consumers can gain more knowledge as they read more nutritional labels from the products they acquire. It is also found that label use increased the information about vitamins, minerals, fats; calories and other nutrients thus ultimately improved consumer's nutrition knowledge. (Nutritional knowledge n education)

The importance of consumer behavior can be understood through the consumers' involvement for the products and services and how different characteristics are considered important for making the purchasing decision. For packaged food products, nutritional labeling helps consumers to make purchasing decisions where consumer buying behavior has most significant impact. Many researchers have identified that for food products, quality attributes for foods are freshness, handiness, nutritional values, healthy, safety perception, and label of products (Nielsen, 2002; Ophuis&Trijp, 1996). (Consumer awareness n involvement while making purchase decisions)

In this study we determine the quality of packaged food product through nutritional label. Those categories of packaged food products on which our research is based are on Frozen meals, Baby food, Tin food, Beverages and cereal/snacks. Different attributes of quality are important to different users.( packaging)

According to Anderson and Anderson (1991), there are two methods that may be used to evaluate packaged food quality, i.e. consumers can use their past experience such as taste, texture attributes, price, brand name, packaging, and credibility to determine the quality of packaged food products. What cues do consumers use to assess packaged food product quality? When considering sensory evaluation of packaged food products one has to think of both intrinsic quality cues such as species, fat content, protein, calories and other appearance and extrinsic quality cues including price, convenience, origin, handling. How do consumers perceive packaged food product quality? a hierarchical value plan for packaged food products where the perceived quality of packaged food products related to taste, texture, health (the content of vitamins and minerals) perceived nutrition and lack of convenience was identified. (Packaging)

There is an amount of internal and external forces that participate for a consumer's buying behavior in a business environment. Internal factors include taste, prior experience, politics, and personal limits. External factors, such as the acquisition environment, availability, price, peer pressure, can influence consumer's purchasing decision. The extent to which these influences affect any decision depends on the individual consumer (Natalie, 2007).

In most of the cases, many shopping decisions are focus to individual taste and liking, which will affect the perception of the product. This is mainly proper of prejudiced products such as fashion and food. Think about two packaged food products of the similar size and create but in unlike packaging. You may buy that packaged food product more often if you like the packaging, so a packaged food product in your favorite packaging better meets your requirements. (Packaging)

Packaging is another factor that has a positive impact on consumer buying behavior. However brand image is mediating variable in the relationship of consumer buying behavior and packaging. (S.H Abbas Zaidi&Bakhtiar Muhammad, 2012). Packaging among the 4ps of Marketing is a very powerful tool, its impact reaches deep in consumers mind as compared to advertising. Even at the point of purchase it is packaging that influences the buying decision and dominates a product over its competitors. (Packaging)

Packaging creates a positive perception on the consumers and can even result in brand switching in case of children. (S.H Abbas Zaidi&Bakhtiar Muhammad, 2012). Most important Package design attribute that counts in terms of healthiness expectations is the package's shape and visibility of the product through the Package. The visual dimension of food packaging matters because it transfers undercover messages; healthiness is one of them. (S.H Abbas Zaidi&Bakhtiar Muhammad, 2012). A color used on packaging greatly impacts the perception of the consumer. Shoppers judge the product attributes by the color on its packaging. (S.H Abbas Zaidi&Bakhtiar Muhammad, 2012). (Packaging)

Research indicates that there is a strong association of packaging as more than 70% consumers state that they believe on packaging to facilitate their decision-making process at the POP (point of Purchase) (Wells et al., 2007). The study examines the fact that consumers tend to be attracted by the graphics on packaging of printed label which can influence purchase intentions of the consumers. This suggests that graphical packaging could be misleading and can affect the consumer's buying behavior. (Bone, 2001). (Packaging)

Similar packaged products can misguide consumers to purchase a different product by mistake. Some consumers don't mind in buying a product at a same price and similar in packaging to a well-known brand than another product that has a entirely different packaging. (Edwards, 2009). (Packaging)

Mainly the important Package design feature which counts on the factor of healthiness expectation is the package's shape and physical features of the product through the Package. The visual element of any food packaging is of utmost importance because it transfers undercover messages; healthiness is one of them. (Sioutis,2011). A color used on packaging greatly impacts the perception of the consumer. Shoppers judge the product attributes by the color on its packaging. (Delabyet al., 1999). (Packaging)

Packaging has a direct impact on the children's preferences Also, due to the attractive packaging specially the presence of cartoon heroes on packaging increase their interested in purchase of unhealthy foods. The children try to influence their parent's decisions during shopping. (Ogba et al., 2009). Packaging has a positive impact on consumer buying behavior. However brand image is mediating variable in the relationship of consumer buying behavior and packaging.(Sialet al., 2011). (Packaging)

Personality traits have been shown to influence consumer decision-making behavior. The personality variables self-confidence and anxiety were reported to be related to consumer choice behavior. Other researches emphasize upon the effects of life-style and self-perception on consumers' purchase intention or behavior towards packaged food products. Consumer's preference towards a brand is directly affected by self-control and temptation. (Hassan et al., 2010). People with healthier eating habits prefer to see nutritional labeling. Moreover nutritional labeling is not affected by price and is preferred by people following a special diet plan or with problems like sugar, heart diseases. (Magistris et al., 2010). (Consumer perspective of food product)

Nutritional labeling enables the consumers to have a view at the components of the products which enables them to have a healthier diet choice in which they can improve their intake of the require nutritious and proteins (Drichoutis et al., 2008). Nutrition labels on pre-packaged foods are very clear sources of nutrition information. They are perceived as a highly trustworthy source of information and many consumers use their guidance in order to make purchase decisions. (Campos et al., 2011). The results show that there are consumers who considers nutritional labeling on the products during their shopping experiences and are happy to pay even a premium on the products having nutritional labeling on them. (Loureiro et al., 2006). Nutrition labeling information decreases the use of products containing harmful components and improves the consumption of the products containing healthy components. (Drichoutis et al., 2006). Customers do consider nutritional labeling when making a purchasing decision. Especially the people in the ages 36-50, individuals who are sick or with a special diet recommended having at least tertiary education. Moreover households with less than four members were willing to pay more for the nutritional labels. (Prathiraja et al., 2003). (Consumer perspective of food product)

The question rose, what information should be provided to consumers? Should this information be in depth? What kind of health claims should be used? What follows, we try to provide a broad picture of research findings concerning label formats. (Nutritional knowledge)

Many people say that they want and would use the major amount of information obtainable, but often they chose amount of information that leads to a good performance because too much information may lead to "information overload". It is found that label formats and position value information have an effect on consumer perceptions and evaluations. Yet, there was no evidence that any of the formats used in the study outperformed all others transversely applicable dimensions (Burton, Biswas& Netemeyer,1994). (Nutritional knowledge)

One of the most important issue related to use of nutrition information is whether reading nutritional labels, with all the advantages and disadvantages of the different formats, affects purchasing behavior or do other factors (e.g., taste) rule the decision process. (Nutritional knowledge)

Derby and Levy (2001) in 1990 Diet and Health Survey report that one-third of consumers had changed their judgment to purchase a product because of the information on the nutrition label. Accordance with above statement, the same authors report that in another survey in 1995, almost 48% of consumers reported that they changed their purchasing behavior due to nutritional labels. In addition, they mention a 1996 survey where one-third of those interviewed said that they blocked buying a product that they had regularly purchased because they read the nutrition label. One in four consumers that have health issues have started to acquire or use a product that they didn't use before based on the nutrition label. (Nutritional knowledge)

Taken as a whole, it appears that nutritional label use influence purchasing behavior because it influences judgment and perceptions of the food products. In that framework, a number of study have been studied the effect that state create on individual assessment. Derby and Levy (2001) report that in the 1990 FMI (Food Marketing Institute) Trends Survey, 73% of the sample said that health claims influenced their purchase decisions, even though only 8% considered health claims very credible. Health claims which are in the front of the package also create more positive judgments about the product because these claims also lead to shortened information search (Roe, Levy & Derby, 1999). When a product features a health or satisfied claim, respondents view the product as in good health and state that they are more possible to purchase it, self-regulating of their information search behavior (Roe, Levy & Derby, 1999).

Nutritional labeling has a huge impact on consumer purchase behavior. There is some evidence that nutrition labeling makes consumers to switch products on the name of healthy and unhealthy diet plans. The preference for nutrient intake usually depends on the demand and supply of the product. From the demand perspective, consumer's interest in purchase of healthy diets directly depends on consumers intakes. Consumer's ability to make a decision regarding healthy diets usually depends on the information available through different sources (Prathiraja&Ariyawardana, 2008). (Effect of nutritional labeling on food products)

If the products does not contain label the consumer may be unaware of its nutritional contents. Consumers usually form their own belief regarding the nutritional value of the product on the basis of information that they get from different sources, However this perception usually lead to either over or under value of the nutritional labeling of the product. Choosing food usually contains a trade of between taste and health contents of a particular product have negative impact on health because individuals usually perceived that decreasing the consumption of the food can lead to improve health conditions (Prathiraja&Ariyawardana, 2008). (Effect of nutritional labeling on food products)

Consumers can collect variety of information about packaged food products through different sources for eg printed label, family, knowledge, education, the media and advertising. This information determines the characteristics of the product a consumer is looking for a healthy consumption. Printed nutritional labeling gives consumers' information about the nutritional and health advantages of particular foods or nutrients. (Nutritional knowledge)

Another study found that labeling foods as low-fat increased the amount of consumption up to 50%. While consumers with a normal weight prevent them from consuming excess low fat food, on the other hand it is found that overweight consumers did not prevent them from over-eating low-fat foods. If the food was labeled low-fat consumers eat more by 20-25% than for a food with a regular label. Overweight consumers were more strongly influenced by the low-fat labeling, seeing it as a license to eat more. (Nutritional knowledge)

There have been researches done on a large scale of countries which suggests that a lot of consumers appreciate printed nutritional labeling and find them to be an important aspect while making purchase decisions, especially while buying a new product for the very first time. Consumer who read printed nutritional labeling on food items tends to usually compare them to other products and see the difference of how much fat and calories both the products contains. Printed Nutritional labeling also reassures more healthful diet plans for those people who read the printed labels.