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 Nutritional
Labelling and Consumer Buying Behaviour

         

 

 

 

 

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Vishal Kasar (PRN No:
16020242053)

MBA- Agribusiness (Batch: 2016-2018)

 

Symbiosis Institute of International Business

                                                   

                                                                 
Under the guidance of

                              

 

Name of the Project
Guide:  Dr. Sandip Solanki

 

 

CONTENTS

 

 

1)   
Acknowledgement …………………………………………………………………………………………………….

2)   
Executive summary …………………………………………………………………………………………………….

3)   
Introduction …………………………………………………………………………………………………….

4)   
Objectives of the study

…………………………………………………………………………………………………….

5)   
Methodology

…………………………………………………………………………………………………..

6)   
Review of Literature

…………………………………………………………………………………………………..

7)   
Conclusion

…………………………………………………………………………………………………..

8)   
Reference

…………………………………………………………………………………………………..

 

EXECUTIVE SUMMARY

 

Food related lifestyle is being changed a lot due to various
reasons. The high rate of industrialization, growth of service sector and
better employment opportunities have increased consumers disposable income,
developed new lifestyles and awareness and a drastic change can be seen in
their buying behavior. The consumers are very fond of convenience food like
instant coffee and noodles. They consider food and drinks as fun. Their
preferences have changed from home-cooked food to fast and ready to ready to
serve food. The young consumers are passionate about visiting fast food outlets
for fun and change. Besides that processed foods are accepted as alternative to
the home cooked food because of the convenience it offers. This paper aims to
study the factors affecting changing buying behavior of Indian consumers, awareness
of consumers towards branded food products and their nutritional value for
which a secondary analysis is being carried out.

 

 

 

 

INTRODUCTION

 

Consumer
behavior studies the attitudes and perceptions of individual towards the
selection and utilization of the products that satisfies their needs. Cultural,
Social, Personal or Psychological factors influence the consumer behavior during
the purchase decision making. In current days, the consumers have become more
health conscious due to their changing work life and the influence of their
social group. The customers in the market are more inquisitive about what they
eat and the ingredients in their food. This has lead to the growing prominence
of nutritional foods and the nutritional labeling in foods.

            The
different types of buying situations the consumer’s encounter are New Buy,
Complex Buying, Dissonance Reduce Buying, Impulse Buying, Habitual buying,
Repeat buying and variety seeking buying. Nutritional labeling is most commonly
examined and explored by consumers during the habitual buying process as they
are continuously associated with the products and try to satisfy their
psychological need.

            Nutritional labeling is now evolving
into a competitive advantage strategy to play against the stiff competition in
the market.

 

Nutritional
Labeling

            Nutritional labeling is commonly
well-known as Nutritional Facts or food label that is generally found at the back
or side part of the product. The fact label includes the valuable information
to be known about the product such as the serving size, calories, the nutrients
and vitamins that the products is containing, nutrients value and the
footnotes. The nutritional labeling illustrates all the nutritional details and
the facts about the total serving of the products.

            The nutritional label serves as a
guide for the customers, specially those people who are diet and health
conscious. It also educates the consumers about the advantages of the product
for their health. Consumers with allergy, deficiencies can easily refer to the
food label to verify the suitability of the product for their good health. Although
nutritional label could be found in most products, there are still few goods
that do not contain any nutritional labeling like the frozen goods. But, the
manufacturer of the frozen food products include food label that describes the
ingredients of the food product to guide the customers.

 

Importance
of nutritional labeling

            Consumers
are habitually engrossed in comparing the prices of the foods rather than comparing
the food labels to make a healthy food decision. The food helps the consumer to
select the idle food for their healthy life.

            The nutritional label is most useful
contrivance to opt the ideal amount of vitamins, minerals, calcium and iron for
good health. This helps in losing and maintaining a healthy weight.

            The food label helps in the balanced
consumption of nutrients. Consumers check the Nutrition Facts Labels, for foods
that are high in fibre, vitamins, and minerals and low in sugar, sodium, cholesterol
and fats.

Hence
nutritional labeling helps the company to run their business with a social
motive towards the market environment and at the same time use it as a tool to
face the competition in the growing market.

 

Impact of nutritional
labeling on consumer buying behavior

 

Nutritional
labeling has a direct impact on the consumer because it is related to products
that are directly purchased and consumed by the consumers in the market.
Consumer nowadays are checking the nutritional labeling before purchasing the
product due to health issues, blood pressure, cholesterols and some for
maintaining healthy diet.

Nutritional
Labeling provides the information that the consumer needs about the foods that
they buy. Before purchasing a product the customer tend to look at the information
given at the back part of the packaging which includes the nutritional
labeling.  They check if it has the right
amount of nutrients. They examine the total serving size of the product and at
times the compare it with other brand to choose the best. The nutritional
labeling helps to identify the right product that would suit them and especially
for the kids. Parents look at the nutrition facts to know if they are providing
their child the right combination of nutrients that are needed for their healthy
growth. There are other customers who look at the nutritional labeling due to
health problems so they have to avoid food with a high number of calories,
carbohydrates or cholesterols that the product contains.

If
the nutritional labeling does not provide the required nutrients facts, this
leads to dissatisfaction of the customer and would majorly affect their purchasing
decision. Since customers want a product that is healthy and safe for them,
they check the nutritional labeling and if they are satisfied, there would be
an urge to purchase the product because they are satisfied with the nutritional
facts provided. But if the nutritional labeling does not contain the comprehensive
nutrients fact details, the consumers would be forced to select another product
against this product. This would directly affect the purchasing decision and
sales of the product.  This would directly
affect the purchasing decision and sale of the product. This behavior of the
consumers has led to the development of nutritional labeling being used as a
competitive advantage against the competitors in the market.

 

 

 

 

OBJECTIVES OF THE STUDY

 

·        
This
study has been conducted with the primary objective to evaluate the impact of
nutritional labeling on the purchasing decision of the consumers.

·        
Besides
it also attempts to identify the other factors affecting the consumer buying behavior,

·        
 To measure the level of awareness of consumers
regarding the product they buy and to evaluate the level of importance attached
to the nutritional label.

 

 

 

METHODOLOGY

 

This study has identified and synthesized a compilation of
more than 20 years of empirical researches. The relevant materials of academic
publications are extracted from the following databases: Emerald, Science
Direct and Social Science Index. Perusals are made to the abstracts of the
studies to determine the relevancy of the papers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVIEW OF LITERATURE

 

 

Sr No.

Author

 Title

Findings

1

Alvin
Schupp, Jeffrey Gillespie,
and
Debra Reed in 1998

Customer Awareness
and use of nutritional label on packaged
fresh  meat

Finding
from the research find that existence of nutritional label in meat product
changes the customer buying pattern due to the use of nutritional label, the
customer tends to buy the meat that contains low fat..
 

2

Arbindra
P. Rimal and Stanley M.
Fletcher
in 2003.

Understanding
consumer attitude towards meat labels and meat consumption pattern

Finding
shows that the use of Nutritional label also influences the customer
especially female in choosing healthier meat such as chicken as compare to
beef.

3

Stephen Crutchfield,
Fred Kuchler and  Jayachandran N. Variyam in 2001

Valuing
the health benefit of Nutrition labelling: 
Acase study for fresh meat and poultry product

Finding
from the research state that consumer do value the present of nutrition
labelling by choosing the meat that contain low fat.

4

Alan D.
Mathios in 1998.

The
important of nutrition labelling and health claim
regulation on product choice: An analysis of the cooking oils market

The
results indicate that after implementation of the nutritional label,
consumers shifted purchases toward cooking oils of higher in saturated fat
and lower in monounsaturated fat.

5

Jennifer L
Harris, Jacqueline
M Thompson,
Marlene B Schwartz
and
Kelly D Brownell in 2011

Nutrition-
related
Claims on children’s cereals: What do they mean to parents and do
They influence
willingness to buy?

Parents
do agree the importance of the nutritional label and they often use it during
buying cereals for their children. Apart from those findings, willingness to
buy the cereal was significantly related to beliefs about health-related
outcomes and/or overall nutritional quality meanings for all claims.

6

Manisha Singla

Usage and understanding
of food and nutritional labels among Indian consumers

Food labels are read
by the consumers for brand comparisons and not for consulting nutritional
information. Difficult terminology, small font size and inability to
understand nutritional labels are the major problems encountered by the
consumers. Television, friends, magazines are commonly used for assessing
nutritional information. Labels are considered more consumer friendly when
benchmarks regarding serving size are provided. Income level, size of
household, number of children and age did not play a role in the usage of
nutritional labels by the consumers. Consumers with special dietary needs
used nutritional labels regularly.

7

Andrew Charles
Montandon and Christopher Colli

Effective
nutrition labels for fast food consumers

It is found that
a very simple “traffic light
signal”
is
the best signal for suggesting
healthiness, with
as much as 41 per cent of the importance in consumer decision making ( p

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