Effects on Nutrition Label Regulation on Consumer Choice

The U.S. government initiated food labeling reform in 1989, which culminated with the Nutrition Labeling and Education Act (NLEA) of 1990, emphasizing the provision of improved nutrition information on most food products. The goal of such labeling reform has been to provide consistent, readable, understandable and usable food labels that enable consumers to make more healthful food choices. This paper examines the theoretical impact of the new regulations on consumer food choice behavior. The paper first discusses the use and impact of food labels by/on consumers, and uses a choice model to desribe the effects of these new labels on consumer food choice decisions. In particular, the research focuses on two important food attributes, and the presence of information of these attributes through the new nutrition labels, which may influence consumer purchase behavior.     

Perceptions of assortment variety: The effects of congruency between consumers’ internal and retailers’ external organization

This research shows that consumers’ perceptions of variety and satisfaction are dependent upon how the assortment is organized, both internally by the consumer and externally by the retailer. The results of three laboratory studies indicate that for familiar categories, congruency between a consumer's internal categorization structure and the external store layout leads to higher perceptions of variety and higher satisfaction with product choices, while for unfamiliar product categories, congruency between shopping goals and external structure leads to lower perceptions of variety but increased satisfaction with the store's assortment. However, if retailers institute external category filters congruent with consumers’ internal shopping goals that allow them to bypass products, consumers have both lower variety perceptions and satisfaction with the assortment offering.     

Choice Based on Goals

This article introduces a goal-based view of consumer choice in which (1) choice is influenced by three classes of goals (consumption goals, criterion goals, and process goals), (2) goals are cognitively represented, and (3) the impact of a goal on choice depends on its activation. For each class of goals, we discuss how goal activation is influenced by direct (subconscious) goal priming, by spreading activation from choice options, from other goals, and from the context, and by goal (non-)achievement. Opportunities for modeling goal-based choice, the integration of emotions in a theory of goal-based choice, and relationships with dual-process theories of decision making are discussed. An expanded version of this paper is available from the first author.     

Green decisions: demographics and consumer understanding of environmental labels

This research examined the demographic profiles of Australian green consumers in relation to their satisfaction of environmental labelling. It examined consumers’ understanding of labelling and empirically investigated the association of demographic profile of consumers with their attitudes towards such labels. The results indicated that some of the demographic variables were significant, which is largely consistent with earlier findings by other researchers in this area. Label dissatisfaction was higher in the older and middle age respondents. However, some respondents disagreed that labels were accurate while commenting that labels were easy to understand. The key issue arising from the findings is that in order to provide perception of accuracy in labels, it is an option to use Type I or Type III labelling on products. These labels are, arguably, more credible because they are endorsed by third party labelling experts. This would come at a cost and for green products that use third party labelling, they will also have to bear in mind to keep the prices competitive.     

Understanding consumers’ multichannel choices across the different stages of the buying process

This article provides a more integrative approach toward channel choice than previous research by considering all stages of the buying process (search, purchase, and after-sales), and by taking channel attributes, experience, and spillover effects into account when examining consumers?? channel choice intentions. The authors show that such an integrative perspective is important as channel attributes, experience, and spillover matter for consumers?? channel choices in all stages of the buying process. Notably, the study stresses the importance of channel experience and spillover effects for explaining consumers?? channel choice intentions in the different stages of the buying process. Channel experience effects occur when using the channel increases the likelihood that the consumer will use the very same channel on the next occasion. Spillover effects result when the likelihood of using a channel in one stage of the buying process affects the likelihood of choosing that channel in another stage. The results show that both effects influence consumers?? channel choice intentions over and above channel attributes. Importantly, the model results strongly pledge for studying attribute, experience, and spillover effects simultaneously.     

An Analysis of Assortment Choice in Grocery Retailing

Consumers in grocery retailing commonly buy bundles of products to accommodate current and future consumption. When all products in a particular bundle share common attributes (and are selected from the same product category), the consumer is said to assemble an assortment. This research examines the impact of assortment variety on the assortment choice process. In particular, we test the prediction that consumers demand less variety for higher quality items. To investigate this relationship, we employ a flexible choice model, suitable for the analysis of assortment choice. The model, based upon the assumption that the utility of purchase of one item in an assortment depends upon the set of items already selected, allows for a general utility structure across the assortment items. We apply the model to household assortment choice histories from the yogurt product category. Substantively, we show that yogurt choice is affected by brand quality perceptions (quality-tier competition). Moreover, we show that reaction to reductions in variety (number of yogurt flavors) is mediated by brand quality perceptions. Taken together, these empirical facts paint a picture of a consumer who is willing to trade-off variety against product quality in assortment choice.     

An Information-Based Approach to Labeling Biotechnology Consumer Products

Using an economic framework this paper explores the need for labeling of biotechnological consumer products. In particular, we assess the impact of labeling on information problems faced by consumers and regulators. Using information analysis, we propose an approach to labeling biotechnology products that attempts to respect both the real nature of consumer information-processing capacities and approaches and the environment of uncertainty in which any regulatory policy for biotechnology will operate. We conclude that the fact of uncertainty on the scientific front and the nature of consumer concerns in this area gives rise to a need for some type of labeling. Using labels to convey substantive information, however, is likely to be of limited value to consumers. A comprehensive approach to information policy for consumers in this field should aim instead to use labeling requirements to harness the incentives of producers and other private entities to effectively convey to consumers what they want and need to know. We therefore recommend that governments require a simple alert label on biotechnology consumer goods that will prompt consumers to assess their information needs and producers or others to supply those needs. Government regulation in this scheme would consist of basic health and safety regulation and direct or indirect monitoring and regulation of the content of the information ultimately conveyed to consumers by producers and others.     

Nutritional labelling information: Utilisation of new technologies

Abstract

The increase in food-related diseases in society has led to a variety of public policy and private sector initiatives, such as the use of nutritional labels. Although nutritional labels have been shown to be broadly effective in terms of informing food choice, their influence is moderated by a variety of factors, such as how information is conveyed and processed by consumers. Recent advances in technology might overcome these limitations. Using a choice experiment, this paper examines consumer preferences for alternative technological devices that may aid consumer processing of nutritional information on food packaging. The results show which attributes of the technology consumers prefer, and identifies three distinct segments of consumers (‘information hungry innovators’, ‘active label readers’, and ‘onlookers’), and differences between them in relation to their preferences, demographics, and psychographic characteristics. The identification of segments is a novel aspect of this research, and highlights the importance of finding more customised solutions to the communication of nutritional information – an issue to which technology can contribute.     

Linking Sources of Consumer Confusion to Decision Satisfaction: The Role of Choice Goals

Previous empirical research on the relationship between consumer confusion and customer satisfaction has largely neglected the role of choice goals. In a context of technologically complex products, the authors analyze the effect of selected choice goals on the consumer confusion‐decision satisfaction link. The empirical findings, which are based on a field study of smart phone users, show that different sources of confusion have distinctive effects on choice goals, which in turn influence decision satisfaction. For example, while confusion caused by ambiguous information and choice overload is found to reduce choice confidence, perceived attribute similarity between products or brands increases choice confidence. Among the choice goals, evaluation costs and negative affect are found to increase decision satisfaction. The findings have important implications for marketers and consumer policymakers in terms of marketing communication and customer satisfaction.     

A Comparison of Consumers and Dieticians: Nutrition Focus,Food Choice,and Mental Accounting

Nutrition labels on processed foods are becoming more common throughout the world. How do experts and consumers compare at using this information? This study compares three different conceptualizations of expertise—a body of knowledge, better processing skills, and a greater facility for mental accounting. A survey was used to compare 237 consumers over age 40 with 131 dieticians. We examined the focuses, choices, and mental accounting of food selections. The results demonstrate similar focuses, food choices, predictability, and mental accounting by both groups on all three conceptualizations of expertise. This suggests that nutrition labels benefit both consumers and experts.     

To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes??cause type, cause scope, and cause acuteness??on consumers?? perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research.     

The effect of a Halal label and label size on purchasing intent for non-Muslim consumers

This study examined whether the purchasing intent of non-Muslim consumers in Taiwan was negatively affected by Halal labeling on meat products. Specifically, does a Halal label or the size of the Halal label have an impact on purchasing intention? A multinomial logit model with a random utility theory was utilized to determine the probability of purchasing Halal labeled meat products in Taiwanese traditional markets. The survey was distributed via Survey Monkey and 907 responses were collected. Results showed that a vast majority of non-Muslim Taiwanese consumers would still buy (33%) or try to buy (55%) Halal labeled meat products. Further, larger sized Halal labels did not keep non-Muslim consumers from purchasing the meat products. Rather, consumers showed higher purchasing intent with a larger Halal label, as long as the butchers adopted cold storage techniques to help keep the meat fresh. Therefore, governments, companies, and traditional market butchers should be less concerned about adopting Halal labels in traditional markets. The results of this study supports prior studies and confirms that non-Muslim consumers in Taiwan do not appear to be negatively influenced by a Halal label, regardless of the label size.     

The effect of retail assortment size on perceptions,choice, and sales: Review and research directions

We perform a meta-analytic review of the effect of retail assortment size on consumer perceptions, choice, and retail sales/share using a database comprising of 177 studies obtained from 95 academic papers published during 1970–2021. We define assortment size broadly as the total number of distinct alternatives (options) available to the consumer when he/she makes a choice in a product category. This number of alternatives manifest in the form of a number of brands, number of stock-keeping-units (SKUs), or simply number of items such as different colors or packaging. An increase in assortment size can lead to beneficial effects such as assortment preference, perceived choice satisfaction, confidence, freedom, purchase incidence, sales, and profits, as well as negative consequences such as information overload, increased cognitive effort, choice uncertainty, choice difficulty, and hence choice avoidance. Numerous researchers have reported the effect of assortment size on one or more of these factors. We summarize these effects using a metric called assortment size (net) benefit elasticity by positively valuing the beneficial effects and negatively valuing the harmful effects. Assortment size benefit elasticity is defined as the percent change in net benefit for a 1% change in assortment size. Our meta-analysis reveals that the mean assortment size benefit elasticity across 1936 valid elasticity observations is .082, and this effect is moderated by many study design and environmental factors. We also explore nonlinearity in assortment size effect and whether the effect is different for online vs. offline purchasing. Based on these findings, we list 30 characteristics conducive for assortment addition/deletion and specify several directions for future research.     

Do Biodegradable Labels Lead to an Eco-safety Halo Effect?

Biodegradable products allure consumers despite complications associated with developing consistent guidelines for degradability and potential misperceptions regarding what biodegradability means to consumers. This research investigates inferences consumers make about products bearing 100% biodegradable labels and uses the halo effect as a theoretical foundation for investigation. Past research has found that health labels can have a general halo effect and promote beliefs about attributes unrelated to health claims. The results of two experiments suggest that 100% biodegradable labeling produces a similar eco-safety halo. This eco-safety halo is characterized by assumed consumer safety and environmental attributes of 100% biodegradable products. Results are presented along with implications, limitation, and directions for future research.     

A conceptual framework for analyzing consumers' food label preferences: An exploratory study of sustainability labels in France,Quebec, Spain and the US

In a qualitative study of 375 consumers in France, Quebec, Spain and the US, respondents are asked to choose between pairs of actual food labels and to describe the reason(s) for their choice. The food labels included sustainability labels (eco‐labels, Fair Trade, origin) as well as product attribute (e.g. quality, kosher) and health/nutrition labels. Respondents' reasons were coded in the original language using the same coding system across all four nations to examine their preferences for label message, design and source. We also examined the role of consumers' values, beliefs and experiences on their label choices. The coding system was drawn from a review of theoretical and empirical literature and provides a conceptual framework we call the Label Consumer Interaction model for evaluating consumers' food label preferences. Although this is case study, the results point to substantial differences across nations in terms of preferred labels, as well as the rationale for their choice in terms of attributes of the labels and consumer characteristics.     

Organizing Products with Complements versus Substitutes: Effects on Store Preferences as a Function of Effort and Assortment Perceptions

Retailers often organize at least part of their assortment by displaying complementary products from different product categories together (e.g., a pair of pants with a shirt) rather than grouping items by product type (e.g., a pair of pants with other pants). However, little is known about how retailers should choose between complement-based and substitute-based organizations. The present paper shows that consumers’ preferences for such store organizations are a function of the effort and assortment perceptions cued by these organizational formats. Holding the underlying assortment constant, complement-based organizations are always more effortful than substitute-based organizations. This difference in effort can create downward pressure on complement-based store choice. Moreover, the effects of organization format on assortment perception depend on whether consumers hold a hedonic or utilitarian focus. When consumers have a highly hedonic focus, complement-based based stores create more positive assortment perceptions than substitute-based stores. Such positive assortment perceptions can, in turn, raise complement-based store choice. However, as consumers’ utilitarian focus increases, substitute-based assortments are seen as both easier and more attractive, leading to a strong advantage in store choice. Our findings provide actionable guidance for retailers considering various store organizations and suggest opportunities for future research.     

When the purpose lies within: Maximizers and satisfaction with autotelic choices

Are maximizers less satisfied with their choices than satisficers? This research provides a novel perspective on this question by distinguishing between two types of consumer goals: autotelic, when choice is a goal in itself, and instrumental, when a choice is a means to achieving other goals. Study 1 showed that maximizers value autotelic experiences more than satisficers. Study 2 experimentally manipulated the choice goal and found that maximizers compared to satisficers experience higher choice satisfaction when the choice goal is autotelic rather than instrumental. Additionally, evidence is provided for the underlying mechanism (perceived ease of choice) as well as downstream consequences (consumers’ willingness to pay for their chosen option). These findings advance a conceptualization of maximizers as consumers seeking self-contained meaning in choice and provide new insights into the relation between maximizing and choice satisfaction. Theoretical and practical implications for consumer decision-making are discussed.     

Effects of Label on Consumer Preferences: Focus on Hawaiian Avocado Industry

This study examines market challenges facing a local agriculture industry in a small island setting. Examination of the Hawai‘i local avocado industry indicates labeling can address the product information gap between consumers and producers, improve market share, and increase import substitution by local products. Currently, local avocados occupy only 33% of market share, compared with 67% captured by imports. Consumer preferences among local labeled, local unlabeled, and imported avocados were analyzed using multinomial logistic regression. Statistical results showed that labels influence consumers’ decisions to buy local or imported avocados, and their preferences were also influenced by sociodemographic variables, avocado characteristics, and purchasing behavior. Key market segments to target and policy implications are also discussed.     

The effect of category label specificity on consumer choice

The current research demonstrates the category specificity effect, whereby an individual’s choice of options belonging to different categories depends on whether the options are categorized in a specific or abstract manner. In particular, when categories do not contain labels that specifically convey category knowledge, individuals tend to view the assortment as having more varied alternatives, leading to greater variety-seeking. Three laboratory studies employing the context of food menu selections were conducted to test our hypotheses. Study 1 and Study 2 reveal that, given the identical assortment of dishes, individuals are likely to order a greater variety of dishes when the menu contains no category labels or abstract category labels, as opposed to when it contains specific category labels. Furthermore, the use of abstract category labels increases the number of dishes individuals order. We further show that this category specificity effect on choice is mediated by the enhanced perception of variety offered in the menu. Study 3 demonstrates that the effect of category specificity is moderated by an individual’s familiarity with the food category.