A Critical Review of the Literature on Nutritional Labeling

A comprehensive overview and critique of the nutrition labeling literature is provided. Studies examining the design and features of label formats and their impact on consumers being better informed and engaging in healthier behaviors are examined to summarize available knowledge in the field. The review suggests that while the extant literature has provided worthwhile critiques of the Nutrition Labeling and Education Act in terms of meeting its stated goals, as well as other general insights, it allows only for very tentative and conditional statements about factors related to the “bottom line” effectiveness of nutritional labeling. The outcome of the review suggests that a more holistic view of nutritional labeling is needed. Suggestions for future research that focus on both conceptualizations of the studies as well as methodology are made.     

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.     

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.     

Food Labels’ Impact Assessment on Consumer Purchasing Behavior in Malaysia

The purpose of this study is to validate the impact of food labels among Malaysian consumers using an extended theory of planned behavior model (TPB). In doing so, the study assessed the direct and indirect effect of food labeling on consumer intention to purchase or otherwise the food products of interest. A stratified random sampling technique was adopted in selecting 2,014 consumers in Klang Valley, Malaysia. The results of structural equation modeling supported the adequacy of the proposed model. This study contributes to and extends the understanding of food labeling and purchasing behavior, identifying the rationales for purchasing of food products with labels that contains information such as halal logo, ingredients, and nutritive value.     

A Heuristic Model for Establishing Trade-Offs in Corporate Sustainability Performance Measurement Systems

Consumer trust is a key prerequisite for establishing a market for credence goods, such as “green” products, especially when they are premium priced. This article reports research on exactly how, and how much, trust influences consumer decisions to buy new green products. It identifies consumer trust as a distinct volition factor influencing the likelihood that consumers will act on green intentions and strongly emphasizes the needs to manage consumer trust as a prerequisite for the development of a market for green products. Specifically, based on a mixture of qualitative and quantitative methods, it is found that lack of consumer trust is a barrier for the development of a market for organic food in Thailand. Two focus groups and ten in-depth interviews revealed low knowledge about and low trust in organic food, certification, control, and labeling. Further, a mall-intercept survey (N = 177) revealed that lack of (especially) system trust reduces consumer expectations about benefits of buying organic food, and it makes them less likely to buy organic food. Mistrust in the control system and in the authenticity of food sold as organic has a significant negative impact on self-reported buying behavior. Implications for policy and future research are discussed.     

Did the Proposed Country-of-Origin Law Affect Product Choices? The Case of Salmon

The 2002 Farm Securit and Rural Investment Act mandated that country-of-origin labeling (COOL) be applied to specific food commodities. Using revealed preference data for 1998–2006, a nonlinear AIDS model is used to estimate the demand for uncooked frozen, uncooked fresh, and precooked salmon to assess the impact of the legislation on consumer demand patterns. Findings from a non parametric analysis suggest a possible rotation in the demand curve for fresh salmon that may be linked with the quality signal associated with COOL. However, our findings indicate that COOL had no significant impact on overall consumer demand for the three products. All three were found to be inelastic, with uncooked fresh salmon being slightly more price sensitive than uncooked frozen and precooked salmon. Given the expenditure elasticities, the fresh salmon segment of the industry appear to be more vibrant than the other salmon segments and would likely influence investment decisions in the salmon industry.     

Can the label ‘member’ in a loyalty program context boost customer satisfaction?

ABSTRACT

This study examines if labeling customers as ‘member’ versus ‘non-member’ in the context of a firm’s loyalty program can influence the customers’ evaluations of the firm. It was assumed that firms’ membership-related labels, which typically are euphemisms in relation to the mere discounts offered by many loyalty programs, can (a) prime customers so that positively charged content in a general member category is activated, and that (b) this content can have a positive impact on evaluations of firms with loyalty programs. An experiment showed that evoking customers’ membership status resulted in a higher level of sense of belonging, and higher customer satisfaction, for members than for non-members. Sense of belonging mediated the impact of evoking membership status on customer satisfaction. A second study confirmed that the content of customers’ general member construct is indeed associated with sense of belonging and satisfaction.     

Voters’ Response to Labeling Genetically Engineered Foods: Oregon's Experience

Oregonians voted on Measure 27, a measure to label genetically engineered foods, in November 2002. A follow‐up survey of 801 voters was conducted to explore how consumers voted in an actual election on this issue, who voted for and against this measure, and why they voted the way they did. The results revealed that the measure did not pass for a variety of reasons. Those included concern with costs, questions about necessity of the labeling in view of safety assessments by the FDA, concern with how the measure was worded, and the impact the measure would have on farmers. The majority of respondents supporting the measure wanted to know what is in the food they are eating.     

论原产地规则对国际供应链的影响

货物原产地最初是一种自然地理意义上的概念,指货物作为商品在国际贸易及国内贸易中的最初来源地。随着国际经济交往的深入和供应链的专业化分工,原产地的概念也今非昔比。如今的货物原产地标签已经成为一种规则主导的结果,因而很多参与国际贸易的企业出于规避贸易管制措施和品牌营销的目的,根据原产地规则改变产品的原有的供应链安排从而人为操作控制产品的原产地。本文将从原产地规则在供应链中产生的经济影响进行分析并提出有关政策建议。     

Consumer Preferences and Willingness to Pay for Bundled Fresh Produce Claims at Farmers’ Markets

This study uses a conditional logit with systematically varying parameters model to analyze consumer survey data collected at farmers’ markets in Utah. The purpose of this study is to examine consumption preferences and willingness to pay for differentiated fresh produce among farmers’ market shoppers in Utah. Three primary differentiating claims, namely conventionally grown of unknown origin, conventionally grown local (in-state), and organically grown of unknown origin, are investigated. Results indicate that consumer preferences and willingness to pay are higher for the conventionally grown local origin claim, emphasizing the importance of local origin labeling for directed marketed fresh produce. This claim was especially preferred among frequent farmers’ market shoppers and those who spend above average. Those who receive WIC and/or food stamp benefits show lower preferences for fresh produce. The shoppers are significantly sensitive to price increases. This study implies that marketing strategies and policy regulations aiming at promoting local, organic, labeling, and reinforcing repeated farmers’ market customers can positively impact purchasing preferences and willingness to pay for production-method-based and origin labeled products.     

What drives brand love and purchase intentions toward the local food distribution system? A study of social media-based REKO (fair consumption) groups

Local food is gaining increasing popularity among consumers due to its association with sustainable consumption. However, for a product to be commercially successful, such growing popularity should translate into high purchase intentions and positive associations with the product post-consumption. Although this success has not yet been reflected for local food consumption, research in this area has remained limited. The present study addresses this gap by examining the antecedents of brand love for both the local food distribution system and the local food it distributes. The study thus employs the stimuli-organism-response (SOR) theory, which indicates that certain environmental stimuli influence the consumers' internal state or organism and shapes their behavior, in turn. Specifically, this study uses altruism as the stimulus, supporting local producers, transparency, satisfaction with labeling, and desire for labeling as the consumers’ internal state (organism), and purchase intentions and brand love as the response. Cross-sectional data were collected from 2045 local food consumers associated with Facebook-based REKO (fair consumption) groups in Finland. Findings indicate that altruism is associated with internal state, i.e., desire for labeling, supporting local producers, and satisfaction with labeling. These variables, in turn, are associated with brand love for the local food distribution system. Furthermore, purchase intentions positively mediate the association of the four internal states with brand love.     

The impact of brand personality and sales promotions on brand equity

This research assesses the relative impact of a long-term brand management instrument (brand personality) and a short-term marketing mix instrument (sales promotions) on brand equity formation. The authors measure consumer perceptions of promotional intensity and brand personality and model their impact on brand equity. They find a positive impact of brand personality and a negative impact of sales promotion intensity on brand equity at the aggregate level. In line with research that identifies varying consumer responses to promotional deals, this study posits that the relative impact of the two elements varies across consumer groups. Three homogeneous consumer groups differ according to the relative impact of brand personality and consumer promotions on brand equity, following an application of a finite mixture partial least squares procedure.     

The Value to Consumers of Health Labeling Statements on Breakfast Foods and Cereals

Food manufacturers have an incentive to include nutrient content claims, health claims, or other types of labeling statements on foods if they believe that consumers will be willing to pay more for products with specific attributes. We estimated semi-log hedonic price regressions for five breakfast bar and cereal product categories using Nielsen Scantrack scanner data for 2004 and found that labeling statements for these foods are often associated with substantially higher prices, reflecting higher implicit value to consumers. The largest effects were associated with “carb-conscious” carbohydrate labeling (reflecting the time period of the data), followed by fat and sugar content labeling statements.     

Effects of family control on the degree and type of diversification: Empirical evidence for business groups

This article analyzes the impact of ownership structure on corporate diversification, with reference to large listed family business groups. By considering agency theory and socioemotional wealth, the study examines the relationship between family ownership, concentration of ownership, and degree and type of diversification. The study considers 99 Spanish listed business groups (50 family‐controlled‐ and 49 nonfamily‐controlled groups) and considers diversification of business group as the focus of analysis. The results show how family business groups present a lower preference for unrelated diversification than related diversification. There is also a nonlinear relationship between the concentration of ownership in family groups and the degree of diversification, showing different behaviors in family groups according to shares owned by the family's leading shareholders. This article contributes to the literature by providing a more precise identification of the corporate strategy adopted by business groups and establishing new evidence about the impact of family control on diversification strategies and the differences regarding nonfamily business groups.     

Impact of Openness on Growth in Different Country Groups

This paper evaluates the impact of openness on growth in different country groups using a panel of 79 countries over the period 1970–98. It distinguishes itself from many existing studies in three aspects: Firstly, both trade and FDI are included as measures of openness. Secondly, countries are classified into high‐, middle‐ and low‐income groups to compare the roles of trade and FDI in these groups. Thirdly, the possible problems of endogeneity and multicollinearity of trade and FDI are carefully dealt with in a panel data setting. The main findings are as follows. Total trade has a general positive impact on growth in all country groups, although the impact from imports is not significant in high‐income countries. FDI has a positive impact on growth in high‐ and middle‐income countries, but not in low‐income countries. With the existing absorptive capabilities, low‐income countries can benefit from both exports and imports, but not from FDI. These findings suggest that trade and FDI affect growth through different channels and under different conditions. The paper also discusses important policy implications.     

Shopper Response to Front-of-Package Nutrition Labeling Programs: Potential Consumer and Retail Store Benefits

A myriad of front-of-package (FOP) nutrition labeling systems have been developed by both food retailers (e.g., Walmart, Safeway, Hannaford) and manufacturers (e.g., Kellogg's, General Mills) to help consumers identify more healthful options at the point-of-purchase. Given the uniqueness of these different approaches, two studies examine the effects of alternative FOP systems on shoppers’ product evaluations, choices, and retailer evaluations. When a single food item is evaluated in isolation, both the reductive and evaluative systems had a positive effect on product evaluations. However, when several choice options are presented simultaneously in a realistic retail environment, the evaluative (reductive) system has a stronger (weaker) influence on product evaluation and choice. Results also show that FOP nutrition labeling systems have both direct and moderating effects on attitude toward the retailer and perceived retailer concern for shoppers. These retailer-related outcomes, in turn, mediate the effects of the labeling system on shoppers’ intentions to patronize the retailer. Results suggest that FOP nutrition labeling may help retailers build a non-price competitive advantage.     

The effects of physical activity calorie equivalent labeling on dieters' food consumption and post-consumption physical activity

Effective body weight management requires dieters to engage in healthy eating and physical activity. This research explores the influences of physical activity calorie equivalent (PACE) labeling on dieters' food consumption and post-consumption physical activity. PACE indicates the amount of physical activity required to burn off food energy intake. This labeling aims to raise awareness on energy balance by highlighting an immediate link between food intake and exercise. This research shows that when exposed to PACE labeling, dieters (but not non-dieters) reduce their food consumption, increase their post-consumption physical activity, and are considerably motivated to achieve energy balance. This occurs because PACE labeling active energy balance-goal for dieters and influences their food consumption and subsequent physical activity. Implications for consumer well-being and policymakers are discussed.     

Economics of Food Labeling

Federal intervention in food labeling is often proposed with the aim of achieving a social goal such as improving human health and safety, mitigating environmental hazards, averting international trade disputes, or supporting domestic agricultural and food manufacturing industries. Economic theory suggests, however, that mandatory food-labeling requirements are best suited to alleviating problems of asymmetric information and are rarely effective in redressing environmental or other spillovers associated with food production and consumption. Theory also suggests that the appropriate role for government in labeling depends on the type of information involved and the level and distribution of the costs and benefits of providing that information. This report traces the economic theory behind food labeling and presents three case studies in which the government has intervened in labeling and two examples in which government intervention has been proposed.     

Do demographics have an impact on country of origin effects?

The article discusses the potential impact of consumers' age, socio‐economic group, and sex on the magnitude of country of origin effects for lager and sparkling wine and presents the results of an empirical study into the subject. It is found that older consumers show stronger country of origin effects, which may be due to a generally stronger reliance of older people on broader mental categories, in order to compensate for a decrease in working memory. Socio‐economic groups AB are found to show stronger country of origin effects for sparkling wine, whereas socio‐economic groups C1C2 show stronger country of origin effects for lager. This may be related to relative differences in consumption patterns and expertise for the studied products between the two groups. Sex is not found to have any impact on the magnitude of country of origin effects in this study.     

Feature-based attributes and the roles of consumers' perception bias and inference in choice

This paper considers decision contexts wherein consumers make choices among alternatives that contain a manifest feature-based attribute: i.e., a discrete, salient and important attribute that describes a dichotomous quality, such as “genetically modified”, “organic”, or “locally grown”. We propose a choice model that can explicitly account for a) perception bias with respect to such an attribute when its information is present, and b) inference formation if this attribute information is missing for some alternatives. The impact of different information presentation formats on consumers' perception bias and inference formation is then examined by applying theories from social psychology. Our model outperforms standard Random Utility models that omit explicit representation of these phenomena. Consistent with theories considered, we find significant evidence of perception bias and inference in the choice data. Our results also provide insights on how consumers may infer the quality of a missing attribute in different competitive framing contexts. Finally, our welfare estimates show that consumers may benefit simply from the information improvement regarding government labeling policies.