Influence of Food Product Labeling on Consumer Perception of the Product

Abstract

Diet-related health problems have significantly increased in recent years. Healthy food consumers are becoming more conscious of their health and pay more attention to nutritious products and the nutritional value of the product. To survive the competition in the market nutrition label is seen as the competitive advantage by many organizations. This study has been conducted with an objective to explore and evaluate the impact of types of nutrition labelling attributes on consumer perception of the product thus influencing their purchasing decision of food products. Through “conjoint analysis” a quantitative study is conducted surveying 256 customers who are responsible of purchasing food for themselves or their households.  It also aims to define the factors that affect consumer behavior, to measure consumer awareness of the product they purchase, the level of value attributed to the nutrition label and how it influences the customers and in what aspects. In conjoint analysis relative mean ranking, percentage analysis, part worth of each attribute is measured, and regression analysis is done to check the statistical significance of the results. The study shows that consumer decision process for nutritional products is a very complex process. This study also shows that the consumers who are especially health conscious depend on the nutritional labelling before they purchase a product. The Nutritional labeling must be clear, simple, attractive and informative to have influence on consumers. If the Nutrition labelling is not healthy or unclear, then there is a tendency of not purchasing the product thus effecting the purchase decision.