The longstanding debate has renewed since the European Union made a provision over the nutritional labels of food items as the highest population of the member countries is either obese or dealing with digestive problems. But when it is asked during an engagement poll by Michigan State University Experts, the majority of Americans accepted food labels influence their purchasing behaviour. During the survey, 2048 Americans polled for a variety of food, 71% respondents having monthly income more than $75000 have found to pay close attention to food labels. But income is not the only category influencing purchasing power of a consumer; education appears to be a vital factor affecting attention to product labels as well. In the same study, 60% of the Americans said, they look for label naturally whenever they shop for food items (Shanggun. Mozaffarian. 2019). It is notable most of the times consumer searches for product labels are also ambiguous. For instance, natural doesn’t mean we are eating healthy, even it could be unhealthier, like arsenic found in nature but we can’t consume as said Sheril Kirshenbaum, co-founder of MSU engagement poll.
In the current business scenario, marketers are using labels to produce an impactful brand image and bringing identification. Labelling helps the consumer to set out differences against rest in shelves of markets. But to what extent product labelling can influence consumer purchase power yet needed to be quantified. This study will determine centrally located nutrition facts viewing as eye-tracking devices.
In countries like Denmark, the UK, Germany, USA more than 50% of young adults are obese. Under the European directive on nutritional labelling (90/46/ ECC) nutritional labelling is an option until a claim is made. Nowadays EU is thinking to make it an essential part as they want to save their citizens from growing diseases. Similarly, in contrast to the EU, nutritional labelling is mandatory in the USA. In 2004 Nutritional Labelling and Education Act (NLEA) made it a mandatory provision to label product on almost all the food packages. The majority of advertising firms and marketers pay close attention to this substitution to enhance marketing strategies. However, in a study essay writer figured out nutritional labelling came to light only when consumers were willing to pay for it. On the same note, nutritional labelling will be useful to what extent, the consumer prefers to recommend healthier food.
Kim et.al, 2000 revealed in a study, the effect of nutritional labelling somewhat reduces the individual calories intake from total saturated fats such as cholesterol, in the end, he concluded consumer labelling marks to enhance the brand value when they make a food purchase.
Many studies also analyzed the mandatory nutritional labelling impact on purchasing power. Results indicated, mandate labelling benefitting the market of food and packaging industry as it will load the consumer with the nutritional information. Crutchfield et.al, 2001 estimated the minimal profits companies will incur with the mandate labelling system somewhat lies in between $160 million to $120 million since the actual costing will be lesser than margins. However, the benefits will be ranges from milk to meat industries, pharma to diet supplements.
Types Of Labelling In The Market
As we have already discussed labelling is the main concern of marketers, let’s understand what kind of labelling is applied to a particular firm
Branded product labels- Branded product labels have to be secure very carefully with the products since they are permanent labels. They may be difficult to remove and resistant to several factors’
Eco or information labels- Eco and information labels are usually clipped to target the consumer emphasis on getting information on calories. They used to impart the information of the food items to the consumers.
Grade Level- it describes the main feature and aspects of the product. It is marking off a commodity itself or a symbol or even phrases itself implying qualitative judgment relative inferiority or superiority (Dan et.al, 2019). From a consumer perspective, grading labelling is much more useful than information labelling because grade notation itself in selecting sold by the same seller.
Why Product Labelling To Be On the First
The visual design of the product labelling has a significant impact on brand value as well as influence consumer purchasing power. Evidence from various studies revealed design features increase the contrast of labelling, therefore, enhances the noticeability likelihood to be progressed as well as message acceptance. In a broader sense, labelling featuring distinguish the product from the surrounding information are more likely to be attracted if it overcomes the warning signs.
With increasing consumer awareness, labelling marketing size increases exponentially. The global labelling marketing size valued up to USD 5.7 billion in 2018 and is expected to grow at a compound annually at 7.0% between 2019-2025.
Since consumers are demanding greater productivity amongst the diverse products, This, in turn, has increased the pressure on marketers and labelling marketing contribution to product complexity. In order to meet the demand, producers are looking for versatile labelling units that can accommodate numerous technologies.
Rising demand, accurate measurement and simple labelling solutions fueled up the market demand. In addition to this labelling marketing dispense barcodes and various cartoons packages in the sector.
In terms of end-use, label marketing is characterized by personal care, chemicals, food beverages, and others. As per the grand view research.com, 2019 report, the beverage industry dominated the whole industry as a result of growing disposable income rising trends of healthy drinks. This further boosted the beverage industry fueling the labelling marketing at the end. To know about the beverage industry, take instant assignment help from ArabEssay
Following this food Industry accounted for the second-largest share of Label marketing in 2018. The growth of organic food coupled with the increasing demand of ready to eat mode anticipated favour the growth. Over the forecast period, the Pharmaceutical industry is the third-largest industry has seen investing millions of bucks in informing consumers through labelling. Increased growing population and rising awareness of diseases fueled up even more demand for significant and informative products (Bialkova, and van Trijp, 2010). Various labelling is done with an intention to produce infirmity in the pharmaceutical products Standards including the Labelling and Packaging (CLP) Classification, regulation, and Hazard Communication Standard are likely to influence the positive role.
Formulation And Use Of Quality Standard
Walking down in the isles of grocery stores, when you pick up the product, somewhere on it, there would be nutrition, and ingredients labelling
A recent report of the American Journal of Preventive medicine identified ingredients labelling have influenced consumer choices. After concluding the observation of 2 million users from 11 countries, the report concluded, products manufactured have reduced the intake of calories by 6%, total trans fat by 10.2 % and increase sublimation of vegetables by 13%. Other than unhealthy choices among the respondents is noted 13%. However, there is very less evidence identified labelling choices implicated the carbohydrates, proteins, vitamins, minerals intake.
When a study was conducted to discover how many consumers were influenced after introducing changes in the products, it was identified; harmful fats in food are reduced by 64% ( Acton, et.al, 2019). Yet overall observation concluded this would have very less effect on consumer choices alternatively don’t impact the calories intake.
The consumer always tried to work best for themselves and in the simpler way they choose healthier food. The label also appeared on the nudge food companies as they want to reduce the major industrial addictive such as transfat and sodium but don’t affect the industry formulation.
Few studies have shown available assessing the food label in adding sugars. On that notes food choices does affect the consumer choices who are either diabetes or dealing with pancreases problems. Food labelling also helped in reducing the intake of additional sugar, fat but it was quite clear increasing the total fat has very little impact on health benefits.
Nutritional knowledge could be very important in many other ways for instance having a direct impact on food choices also impacting their belief to some extent. Also, many essay helpers believed nutrition knowledge and food labels act as a bridge.
In the US, over 98% of FDA-regulated processed, or packed food has nutritional labels roughly 84% of the European countries labelled food products. Close to Two-third of respondents in the report have made their food choices after recognizing the NFPs. However Miller et.al, 2015 found 78% of the consumer accurately identified the difference in the products, Yet 20% struggling to differentiate the products item list
Apart from that non-addictive food items are containing the most significant information aiding the assessment of food healthiness. Dietary guidelines, 2019 states, ingredients lists are useful to figure out whether the food is containing trans-fats, added sugars, refined or whole grains. FDA recommended the list helping the consumer to get informed. Consequently, health claims are intended to communicate proven health benefits concerning consumption power. For example, a reduction in Trans fibre may help in combating the risk of potential cancer. However claims have been made, the nutritional label has very little impact on product evaluation however comprehensive claim is relatively higher with greater education and experience (Loureiro, et.al, 2010).
How Label Can Impact Marketing
Packaging and labelling design was the first thing that came to light when the consumer first interacted with products. Good labelling mixed with marketing increases brand recognition, productivity, even speaks what is your product about and what it stands for. A great example of it is the juice company nudies, which created their first drink with a unique and clean design. Nudie drink spread all over Australia in food and beverages stores.
Communicative Role of Labeling in Islam
As per the cue utilization theory, consumers use extrinsic factors as arrogance to product quality and consumers are likely to pay close attention to labelling design, packaging, product sustainability’s, health benefits etc. Therefore packaging referred to as extrinsic factors influence perception of taste, company image and in more sophisticated statement symbolizes the connotation.
In Islam, Halal logo certification is most likely to accept facts by Muslims. Many assignment writer said Halal logo provides number of benefits to the Muslim consumers and marketers. Muslims in non-Muslim countries often seen relies on the Symbol V for vegetarianism that works as an extrinsic factor deem to be suitable products. In a survey, it was identified Arabian and middle east countries citizens spend a considerable amount of money or time seeking out packages having a halal logo or suitable for them to eat. Further, in the absence of a Halal log, respondents tend to go with the screening process through reading product labelling (Khan, 2017). One of the major cues reported from UK samples marked the V symbol as an integral part of labelling designing.
Another communicate role of labelling is it produces embarkation of warning or potential hazard associated with product consumption. Despite the fact that the majority of the respondents have shown a basic understanding of the table of contents, items lists, they would still require more accurate specifications as they search for additional information on the web many times. Thence there is no doubt product labelling largely impact their decision making power. To know more take online assignment help from ArabEssay today.
The purpose of this study is to negotiate the answer whether the product labelling affecting the consumer purchasing power or not. To the best authors knowledge and accounting secondary database, it was identified product labelling came to light only when consumers were willing to pay for it. On the same note, it will be useful to know to what extent, the consumer prefers to recommend products and services being delivered. During this study, it was explored packaging and visual designing plays a vital role in communicating the product benefits at first, but with research progression, study also revealed, labelling symbolize warning like if products contain any hazardous material or not. Since the demand for labelling food has been increased marketing, this study also accumulated data showing the reflection of labelling strategy on business growth.
Miller, L.M.S. and Cassady, D.L., 2015. The effects of nutrition knowledge on food label use. A review of the literature. Appetite, 92, pp.207-216.
Shanggun. S and Mozaffarian. D . 2019. Do food and menu nutrition labels influence consumer or industry behavior? Retrieved from https://www.statnews.com/2019/02/19/food-menu-nutrition-labels-influence-behavior/
Acton, R.B., Vanderlee, L., Roberto, C.A. and Hammond, D., 2018. Consumer perceptions of specific design characteristics for front-of-package nutrition labels. Health education research, 33(2), pp.167-174.
Bialkova, S. and van Trijp, H., 2010. What determines consumer attention to nutrition labels?. Food quality and preference, 21(8), pp.1042-1051.
Dan J. Graham, Robert W. Jeffery. Location, Location, Location: Eye-Tracking Evidence that Consumers Preferentially View Prominently Positioned Nutrition Information. Journal of the American Dietetic Association, 2011; 111 (11): 1704-1711 DOI: 10.1016/j.jada.2011.08.005
MSU.2020. Who is Paying Attention to Food Labels? Retrieved from- https://research.msu.edu/paying-attention-to-food-labels/
Khan, Ghazala & Khan, Faiza. 2017. The role of packaging and labelling in determining ‘halalness’: an exploratory study of Muslims in two countries. International Journal of Islamic Marketing and Branding. 2. 85. 10.1504/IJIMB.2017.084807.
Loureiro, Maria & Gracia, Azucena & Nayga, Rodolfo. 2006. Do consumers value nutrition labels?. European Review of Agricultural Economics. 33. 249-268. 10.1093/erae/jbl005.
Grandview research.com,2020. Labeling Machines Market Size, Share & Trends Analysis Report By Technology (Sleeve Labelers, Pressure Sensitive Labelers, Glue-based Labelers), By End Use, By Region, And Segment Forecasts, 2019 – 2025. Available at-https://www.grandviewresearch.com/industry-analysis/labeling-machines-market