IDEAS home Printed from https://ideas.repec.org/a/ags/saeasj/205934.html

Impact of Nutritional Labeling on Consumer Buying Behavior

Author

Listed:
  • Prathiraja, P.H.K.
  • Ariyawardana, A.

Abstract

Nutritional label plays an important role in providing the relevant nutrition information to consumers. Inclusion of a nutritional label on food items may be an important packaging decision for the Sri Lankan food processors. Hence, a study was conducted with a view of identifying the market for nutritional labeling and the factors that influence the consumer willingness-to-pay for nutritional labeling. Data were collected from a random sample of 90 consumers selected from three supermarkets - Dhanasiri, Cargill’s Food City and Royal Garden Mall - located in Kandy. Market for nutritional labeling were identified by exploring data and a logit method of analysis was performed to identify the factors that influence the willingness-to-pay for nutritional information on food items. A significantly greater proportion of individuals in the age category 36 to 50 years, individuals with tertiary education, individuals with special dietary status and households with less than four members were willing to pay more for the nutritional labels. Logit analysis showed that gender, level of education and special dietary status have a significant positive effect and the household size has a significant negative effect on the willingness to pay for nutrition information. Accordingly, it could be stated that incorporation of a nutritional panel in the package would enhance the demand for food products and it would be an appropriate strategic task for the local food processors.

Suggested Citation

  • Prathiraja, P.H.K. & Ariyawardana, A., 2003. "Impact of Nutritional Labeling on Consumer Buying Behavior," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 5, pages 1-13.
    • Handle: RePEc:ags:saeasj:205934
    DOI: 10.22004/ag.econ.205934
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/205934/files/3.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.205934?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nayga, Rodolfo M., Jr., 1996. "Determinants Of Consumers' Use Of Nutritional Information On Food Packages," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-10, December.
    2. Nayga, Rodolfo M., Jr., 1996. "Determinants Of Consumers' Use Of Nutritional Information On Food Packages," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-10, December.
    3. Govindasamy, Ramu & Italia, John, 1999. "Evaluating Consumer Usage of Nutritional Labeling: The Influence of Socio-Economic Characteristics," P Series 36734, Rutgers University, Department of Agricultural, Food and Resource Economics.
    4. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69(3), pages 213-213.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zuraidah Zainol & Rusliza Yahaya & Juliana Osman & Nor Asiah Omar & Mohamad Rohieszan Ramdan & Nurul Fadly Habidin, 2018. "The Role of Nutrition Label among Malaysian Consumer: A Preliminary Review," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(4), pages 1058-1073, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Govindasamy, Ramu & Italia, John, 1999. "Evaluating Consumer Usage of Nutritional Labeling: The Influence of Socio-Economic Characteristics," P Series 36734, Rutgers University, Department of Agricultural, Food and Resource Economics.
    2. Drichoutis, Andreas C. & Lazaridis, Panagiotis & Nayga, Rodolfo M., Jr., 2006. "Nutritional food label use: A theoretical and empirical perspective," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10033, European Association of Agricultural Economists.
    3. Andreas Drichoutis & Panagiotis Lazaridis & Rodolfo Nayga & Maria Kapsokefalou & George Chryssochoidis, 2008. "A theoretical and empirical investigation of nutritional label use," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 9(3), pages 293-304, August.
    4. Stefanella Stranieri & Lucia Baldi & Alessandro Banterle, 2010. "Do Nutrition Claims Matter to Consumers? An Empirical Analysis Considering European Requirements," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 15-33, February.
    5. Andreas C. Drichoutis & Panagiotis Lazaridis & Rodolfo M. Nayga Jr, 2009. "On Consumers' Valuation Of Nutrition Information," Bulletin of Economic Research, Wiley Blackwell, vol. 61(3), pages 223-247, July.
    6. Kim, Sung-Yong & Nayga, Rodolfo M. & Capps, Oral, 2001. "Health Knowledge and Consumer Use of Nutritional Labels: The Issue Revisited," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(1), pages 10-19, April.
    7. Bethea, Vernish V. & McLean-Meyinsse, Patricia E. & Harbor-Locure, Anetra L., 2001. "Label Use And Importance Rankings For Selected Milk Labeling Attributes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(3), pages 1-15, November.
    8. Gracia, Azucena & Loureiro, Maria & Nayga, Rodolfo Jr., 2007. "Do consumers perceive benefits from the implementation of a EU mandatory nutritional labelling program?," Food Policy, Elsevier, vol. 32(2), pages 160-174, April.
    9. Robert J. Lemke & William J. Burkholder & Charlotte E. Conway & Amy M. Lando & Samuel Valcin, 2015. "An Analysis of Pet Food Label Usage," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 627-638, November.
    10. Govindasamy, Ramu & Kumaraswamy, Anicham & Puduri, Venkata S. & Onyango, Benjamin M., 2006. "Demographic Characteristics of Consumers who Read Grocery Brochures Regularly and Those who are willing to Switch Supermarkets to Buy Advertised Specials: An Analysis," P Series 36718, Rutgers University, Department of Agricultural, Food and Resource Economics.
    11. Rimal, Arbindra & Fletcher, Stanley M. & McWatters, Kay H., 2000. "Nutrition Considerations In Food Selection," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(01), pages 1-16.
    12. Schupp, Alvin R. & Gillespie, Jeffrey M. & Reed, Debra, 1998. "Consumer Awareness And Use Of Nutrition Labels On Packaged Fresh Meats: A Pilot Study," Journal of Food Distribution Research, Food Distribution Research Society, vol. 29(2), pages 1-7, July.
    13. Berning, Joshua P. & Chouinard, Hayley H. & Manning, Kenneth C. & McCluskey, Jill J. & Sprott, David E., 2010. "Identifying consumer preferences for nutrition information on grocery store shelf labels," Food Policy, Elsevier, vol. 35(5), pages 429-436, October.
    14. Banterle, Alessandro & Ricci, Elena Claire, 2013. "Does the Sustainability of Food Products Influence Consumer Choices? The Case of Italy," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(2), pages 1-10, November.
    15. Kim, Sung-Yong & Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 2000. "The Effect Of Food Label Use On Nutrient Intakes: An Endogenous Switching Regression Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), pages 1-17, July.
    16. Thiene, Mara & Scarpa, Riccardo & Longo, Alberto & Hutchinson, William George, 2018. "Types of front of pack food labels: Do obese consumers care? Evidence from Northern Ireland," Food Policy, Elsevier, vol. 80(C), pages 84-102.
    17. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.
    18. Reed, Debra & Gillespie, Jeffrey M. & Downer, Robert & Schupp, Alvin R., 1999. "Consumer Knowledge Of Selected Nutrient Content Of Nine Fresh Meat Cuts," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(2), pages 1-8.
    19. Kim, Sung-Yong & Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 1999. "The Effect Of New Food Labeling On Nutrient Intakes: An Endogenous Switching Regression Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21702, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Alessandro Banterle & Stefanella Stranieri, 2008. "Information, labelling, and vertical coordination: an analysis of the Italian meat supply networks," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 320-331.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saeasj:205934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/slaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.