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Impact of Nutritional Labeling on Consumer Buying
Behavior
P.H.K. Prathiraja and A.Ariyawardana*
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.
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* The
authors
are, respectively, final year undergraduate at the time the
study was conducted, and senior lecturer in agricultural economics,
University of Peradeniya.
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Prathiraja and Ariyawardana, 2003.
Sri Lankan Journal of
Agricultural Economics. Volume 5 (1). Pp. 35 - 46
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