The Role of Nutrition Information in Influencing Consumer Choice - Literature review Example

An Exploration into the Role of Nutrition Information in influencing Consumer Choice Introduction The advent of informed and ethical consumerism characterises the contemporary age, where many industries come face to face with consumers whose purchase choices are influenced by possession of information about the product and the process of production among other issues (Crane et al. 2008). Boone and Kurtz (2010) list access to information as one of the most important rights that businesses have to fulfill to the consumer. One of the most important areas in modern consumerism lies in nutrition, with concerns on safety of consumption and ethics of production lingering in the minds of many consumers. The strong association between nutrition and health, alongside the ever rising problem of obesity justify a study into nutrition consumerism. The main aim of this literature review is to explore the role of nutrition information in influencing consumer choices. Objectives The following objectives will guide this review of literature towards achieving the stated aim: To perform a prudent search for relevant literature detailing the role of nutritional information on consumer choices To review the literature noting highlights and emerging themes To arrive at a conclusion based on the literature review on the role of nutritional information on consumer choices Literature Review The approach followed for sourcing the literature involved a search for research and theoretical work through the key phrase “Role of Nutrition Information in influencing Consumer Choice.” The search was focused on a number of peer-reviewed journals for the research articles. Further, a look at the bibliographies of the journals was used to find more relevant literature. The sources selected for use were restricted to the last decade in order to ensure this literature review is up-to-date, valid and relevant. This review is organised into a number of themes; first, the general factors influencing consumer choices in nutrition purchases. The second theme entails front-of package nutrition labeling, followed by nutrition labeling in (chain/fast food) restaurants. The fourth and last theme entails sources generally studying the role of nutrition labeling as a whole. Factors determining Consumer Choices in Nutritional Purchases A number of studies have explored the factors determining consumer choices when making food purchases. One of these is by Petrovichi and Ritson (2006) who investigated the factors that influence individual decisions to engage in dietary health preventative behaviour in Romania. Conceptually, the close relationship between health and nutrition translates to an association of managing nutrition practices to prevent or manage health. The methodology adopted by the two researchers entailed face-to-face issuance of questionnaires to 485 adult respondents. This study established that the respondents’ health motivations, beliefs that diet choices have the capacity to prevent diseases, financial status of households and the level of educational influenced their nutrition and health and thus food purchase decisions. Ling and Horwath (2001) established that the perceived benefits of certain dietary products influenced consumer food purchase decisions. Through a cross-sectional telephone and mail survey, the scholars gathered data from 1200 households. They showed that the perceived benefits of fruits and vegetables in diet tipped the decisional balance towards purchasing these food items. Godwin, Speller-Henderson and Thompson (2006) undertook a consumer survey involving 160 participants and established that knowledge about nutrition greatly influenced consumer preferences in food purchases; the majority of respondents perceived themselves as knowledgeable enough to understand nutrition labels and use these to make purchase decisions. To conclude this part, the general factors that influence consumer purchase decisions include knowledge on nutrition; health motivations and perceived relationship between diet and health; level of education; household financial status; and knowledge on different benefits of food items among others. It is evident that knowledge is the common and most important factor, thus adding impetus to the aim of this study on the impact of nutritional labeling on food purchase decisions. Front-of Package Nutrition Labeling Kiesel, McClusky and Villas-Boas (2011) highlight the efforts and achievements by governments around the world to make provision of nutrition information on processed foods mandatory in the second half of the 20th century. The aim of this was to revolutionise food consumerism and influence people towards healthy food choices. However, nutrition-associated lifestyle problems such as obesity have become a major problem in the modern society. This leaves policy makers and other stakeholders pondering about the role of front-of-package (FOP) nutrition labels in influencing consumer purchase decisions. Hassan, Shiu and Michaelidou (2010) used a generalised linear model to survey 299 female respondents in the UK about their choice of cake basing this on the nutrition form Guideline Daily Amount (GDA). The scholars established that the information on the GDA form had direct impacts on food choice; this information influenced the psychological factors of conflict and self control, which in turn impacted purchase decisions. Interestingly, however, temptation also had direct and important effects on consumer choices sometimes being the main determinants. Another study which investigated the role of FOP on food choices was by Drichoutis, Lazaridis and Nayga (2005) who investigated consumer use of nutrition labels to influence purchase behaviour. The scholars collected data through personal interviews and used econometric variables to estimate general use of labels and the degree of use. The study ascertained a link between nutrition label use and consumer purchase behaviour as the content of fat, vitamins and minerals influenced consumer choices. This study also established socio-demographic determinants such as income and age as influencing nutrition label use to make food purchase decisions. McLean-Meyinse (2001) analysed nutritional label use among food shoppers in Southern United States. Through a random telephone survey, 1421 grocery shoppers participated in this study and confirmed using labels on food products to make purchase decisions. The most important item on the label in regard to influencing food purchase decisions was named as fat content, which was used more frequently than other information. The study also established that a number of socio-demographic factors influenced the use of food labels in making purchase decisions; age, gender, level of education, marital status, household income, composition of households and race of individual. Kim, Nayga and Capps (2005) also contribute to research into the role of food labels on consumer decision-making. These scholars used data from CSFII (Continuing Survey of Food Intakes for Individuals) and DHKS (Diet and Health Knowledge Survey). They established that FOP information such as nutrition content, list of ingredients, serving sizes, nutrition panels, serving sizes and claims on health promotion were important determinants of consumer food purchase choices. Overall, the study also established that there were measurable benefits to individuals using food labels to inform their purchase decision making; such individuals had an improvement of diet quality of between 4 and 6 points on the 100-point Healthy Eating Index scale. An interesting twist to the literature entails whether consumers would be willing to pay for the extra costs of FOP on products, which would further emphasise the crucial role of nutrition labels for consumers. Prathiraja and Ariyawardana (2003) investigated whether consumers were willing to pay more products with nutrition labels. 90 Sri Lankan supermarket purchasers participated in the study which established that certain sections of consumers would pay more for FOP-containing products. These sections include people aged 36-50, people under special diets, people with at least a tertiary level of education and households with four or less members. Ahead of EU’s plans to make nutrition labels mandatory, Loureiro, Gracia and Nayga (2006) investigated consumers’ valuation of FOP labels through analyzing their willingness to pay premium prices for a box of cookies. The study established a mean WTP (willingness to pay) of 11% above the price of a non-labeled box of cookies. Further, the scholars noted that individuals suffering from diet-related issues had a higher mean WTP at 13% in comparison to 9% for their counterparts. A third study conducted by Hu, Batte, Woods and Ernst (2011) also confirms that consumers are willing to pay more for products with nutrition labels. Using processed food jam, the researchers established that food labels containing details of place of production (local and small producers favoured) and labels showing that the products are organic. In conclusion, the studies reviewed in this section generally agree that nutrition labels play an important role in influencing consumer food purchase choices. Products that are deemed as contributing to health, having low fat content and other considerations as given in the labels promote purchase. The importance of nutrition labels is further underpinned by consumers’ willingness to pay more for products with such labels. However, a number of other factors may interfere with the strength of nutrition labels in influencing purchase decisions. These include psychological factors such as temptation and socio-economic factors such as household incomes. Nutritional Labeling in Restaurants Fast food chains are important places for dining around the world, propelling a good number of these firms into global super-brands. Bollinger, Leslie and Sorensen (2010) studied the impact of calorie positing on the food purchase decisions of consumers. Through detailed data collected at Starbucks and neighbouring competitors, the scholars established that calorie positing has an impact on consumer food choices and purchase behaviour. For instance, the average calories per transaction declines by 6% on posting of calories while Starbucks still does not suffer a dip on average profits. Calorie posting at a close competitor- Dunkin Donuts- leads to an increase in the revenue of Starbucks. This shows that calorie posting, in this case, is influenced by consumer learning, and elements of salience and psychological preferences. Harnack and French (2008) analysed a number of studies investigating the influence of calorie posting at the point of purchase. The study shows that the influence on consumer decision making ranges from significant to weak. Cunha, Moura, Lima and Frias (2010) investigated the perceptions of Brazilian consumers on menu labeling through four focus groups of 5-8 consumers. The results are interesting as they show that, generally, consumers are barely interested in nutrition information in fast food restaurants. The explanation behind this observation revolves around the view that fast food eateries are associated with pleasure, taste and convenience. However, some consumers were still critical of the lack of regular menus without nutritional information. The review undertaken on the influence of point-of-sale nutrition information (fast food restaurants) in consumer purchase choices show that a rather weak to sometimes non-existent associating exists. The literature does not indicate any strong roles of calorie information in determining the choices made by consumers to either quit buying or reduce buying. A number of mediating factors such as brand preferences arise; when calorie information is provided, consumer generally visit Starbucks - a stronger brand - than her local competitors. Some of the explanations behind the observed lack of string influence lie in the perception that fast foods are visited due to taste, pleasure (going out) and convenience. Such perceptions push nutrition information as a determinant of consumer purchase behaviour to the background. The individuals visiting chain restaurants are less concerned about information on what they are consuming as stronger factors bring them to dine in these places. Conclusion The literature review undertaken reveals a number of important observations; nutritional knowledge is a major determinant among the general factors influencing consumer food purchase decision-making. Secondly, nutrition labeling influences the choices made by food consumers, with significant numbers even willing to pay a premium for FOP nutrition labels. Socio-demographic and economic determinants are also important mediators of consumer purchase decisions, sometimes affecting the role of nutrition labels. Further, point-of-sale labeling has a significantly lower role in influencing consumer purchase choices in comparison to FOP labeling. In the former case, factors such as convenience, pleasure and taste relegate nutrition labeling to the background. This literature review provides a lot of insight into the influence of nutrition labeling on consumer purchasing. Areas of agreement, striking differences and interesting points of note among the studies reviewed are established. The literature review also serves as an important pointer to areas of interest for research. Through this review, hypotheses on the disparity between the role of FOP nutrition labeling and point of sale labeling can be investigated. Comparisons along different (national) cultures are also suggested as well as consumer preferences on how nutrition labeling should be approached. References Bolinger, B., Leslie, P. and Sorensen, A. (2010). Calorie posting in chain restaurants. Available at [Accessed 9 Feb. 2012] Boone, L.E. and Kurtz, D.L. (2009). Contemporary business, UK: John Wiley and Sons. Crane, A., et al. (2008). Oxford handbook of corporate social responsibility. UK: OUP. Cunha, L.M., Moura, A.P., Lima, R.C. and Frias, A. (2010). Valorisation of menu labelling at fast food restaurants: Exploring consumer perceptions. Brazilian Journal Food Technology, vol. 19, no. 21, pp. 55-64. Drichoutis, A.C., Lazaridis, P. and Nayga, R.M. (2005). Nutrition knowledge and consumer use of nutritional food labels. European Review of Agricultural Economics, vol. 32, no. 1, pp. 93-118. Godwin, S.L., Speller-Henderson, L. and Thompson, S. (2006). Journal of Food Distribution Research, vol. 37, no. 1, pp. 82-86. Harnack, L.J. and French, S.A. (2008). Effect of point-of-purchase calorie labeling on restaurant and cafeteria food choices: A review of the literature. International Journal of Behavioral Nutrition and Physical Activity, vol. 5, no. 51, pp. 1-6. Hassan, L.M., Shiu, E.M. and Michaelidou, N. (2010). The influence of nutrition information on choice: the roles of temptation, conflict and self-control. Journal of Consumer Affairs, vol. 44, no. 3, pp. 499-515. Hu, W., Batte, M.T., Woods, T. and Ernst, S. (2011). Consumer preferences for local production and other value-added label claims for a processed food product. European Review Agricultural Economy, vol. 39, no. 1, pp. 23-28. Kiesel, K., McCluskey, J.J. and Villas-Boas, S.B. (2011). Nutritional Labeling and Consumer Choices. Annual Review of Resource Economics, vol. 3, pp. 141-158. Kim, S., Nayga, R.M. and Capps, A. (2005). Food label use, self-selectivity, and diet quality. Journal of Consumer Affairs, vol. 35, no. 2, pp. 346–363. Ling, A.M. and Horwath, C. (2006). Perceived benefits and barriers of increased fruit and vegetable consumption: validation of a decisional balance scale. Journal of Nutrition Education, vol. 33, no. 5, pp. 257–265. Loureiro, L.M., Gracia, A. and Nayga, R.M. (2006). Do consumers value nutritional labels? European Review Agricultural Economy, vol. 33, no. 2, pp. 249-268. McLean-Meyinsse, P.E. (2001). An analysis of nutritional label use in the Southern United States. Journal of Food Distribution Research, vol. 1, pp. 110-114. Petrovici, D.A. and Ritson, C. (2006). Factors influencing consumer dietary health preventative behaviours. BMC Public Health, vol. 6, no. 222, pp. 1-12. Prathiraja, P.H. and Ariyawardana, A. (2003). Impact of nutritional labeling on consumer buying behavior. Sri Lankan Journal of Agricultural Economics, vol. 5, no. 1, pp. 35-47. Read More