Table of Contents

Sr. No. Name Pg. No.

1 DECLARATION 2
2 ACKNOWLEDGEMENT 3
3 ABSTRACT 4
4 INTRODUCTION TO NUTRITION LABELLING 4
5 METHODOLOGY 5
6 REVIEW OF LITERATURE 6
7 REVIEW OF LITERATURE GAP 12
8 RESEARCH OBJECTIVES 13
9 DATA ANALYSIS AND INTERPRETATION 13
10 CONCLUSION 18
11 RECOMMENDATIONS 18
12 REFERENCES 19
APPENDIX QUESTIONNAIRE 21

1
 DECLARATION

We hereby declare that the dissertation titled “INFLUENCE OF NUTRITION LABELS

OF FOOD PRODUCTS ON INDIAN CONSUMERS” submitted for Marketing Seminar
Paper at NMIMS, School of Law, Navi Mumbai; is our original work and the dissertation has
not formed the basis for the award of any degree, associateship, fellowship or any other.

The material borrowed from similar titles other sources and incorporated in the dissertation
has been duly acknowledged.

We understand that we could be held responsible and accountable for plagiarism, if any,
detected later on.

The research papers published based on the research conducted out of the course of the study
are also based on the study and not borrowed from other sources.

Date- 20/10/2019
Signature of Students

Saakshi Sharma (81022018029)

Shweta Singh (81022018030)

2
 ACKNOWLEDGEMENT

We are thankful to NMIMS School of Law for giving me an opportunity to pursue the
Marketing Seminar Paper.

We would also thank our guide and our perpetual source of inspiration Prof. Rakhi for her
valuable mentoring and inputs. Her constant support and invaluable advice have always
guided us in the right direction. She helped us to know various phenomenon related to the
research practices which further gave an impetus to channelize our study in an appropriate
way. We sincerely thank her for her treasured guidance without which this dissertation would
have never been possible.

Lastly, we express our deep sense of gratitude to the almighty, our families, friends &
colleagues who have directly and indirectly helped us in this dissertation.

Date- 20/10/2019
Signature of Students

3
ABSTRACT understand the information because it was
The present paper reviews the literature on too technical to understand. Some of the
nutritional labelling and its influence on respondents also suggested that there is a
consumer buying behaviour. A structured need to make information on the nutrition
search was undertaken of research studies labels easier to understand.
on consumer use, understanding of, INTRODUCTION
perception of information on label and
Living in a world where urbanisation is at
purchasing behaviours relating to nutrition
its peak, consumers have been buying pre-
labels. Consumer’s attitudes towards the
packaged food more than ever which has
nutrition labels are increasing rapidly.
caused them to take the role of nutrition in
Nutrient information on labels were
their lives seriously, where it started from
checked often but the consumers didn’t
awareness of nutrition in food products
understand the information as it was too
and reading nutrition labels. Nutrition
technical. The facts on the nutrition label
labels are an attempt to bring about
provides consumers with significant
healthier eating patterns among the
information but are not well utilized by the
consumers by providing them with
consumers. The level of nutritional
information about the nutritional content
knowledge, motivation and education, age,
so that they a choose nutritionally
income, gender and the type of household
appropriate food products. It is also
were some of the factors which affected
important that the nutrition information
the usage of nutrition label. The reviewed
provided be in an appropriate manner and
studies revealed that there exists limited
be easily understandable to the consumers
understanding regarding the role of
to create an impact on the food purchase
nutrition labels among consumers. This
behaviour. There has also been an
research paper contributed to better
increasing concern of consumers about
understanding of consumer purchasing
diet-related health problems and there is
intentions and the usefulness of nutrition
sufficient evidence to suggest that dietary
labels. According to the suggestions
factors are relevant to development of
produced by the respondents which was
chronic diseases. However, the research on
done with the help of a structured
how nutrition labels impact the dietary
questionnaire followed by an interview, it
patterns of consumers and if the level of
was established that consumers checked
education affects the use of nutrition labels
nutrition labels but most of them didn’t
is relatively less so f

4
 Conceptual Framework

Demographic Factors Types of Situational, Behavioural,

Age Nutrition Attitudinal factors
labels
Gender Income

Income Working status

Type of household Special diet status

Type of household
Diet-health awareness

Product Involvement
factors NUTRITION Prior knowledge
LABEL USE of Nutrition
Price Labels
Nutrition

Health- related Motivation

Functions of the problems
Nutrition labels

debates on issue related to nutritional

METHODOLOGY
The study adopted content analysis, which
focused on secondary data as main
references. Related literatures that are
already being documented or analysed by
other researchers on nutrition labelling and
consumer behaviour were reviewed. All
related studies were tabled out and
compared to generate in-depth knowledge
pertaining to the topic. Arguments and
labelling and consumer behaviour are
included in the discussion part of the
paper. The suitability of the publications
for inclusion in this review was based on
reading the abstract and, when necessary,
portions of the publication.
For obtaining the quantitative data, a
structured questionnaire was prepared.
This questionnaire elicited information
from respondents on demographics
(gender, age,

education, profession,

5
family type, etc) as well as data on
important considerations while buying pre-
REVIEW OF LITERATURE
What Is A Label?
A label contains information about a product
on its container, packaging, or the product
itself. It also has warnings in it. In some
products, it is written that the products
contain traces of nuts and shouldn’t be
consumed by a person who’s allergic to
nuts. The type and extent of information that
must be imparted by a label are governed by
the relevant safety and shipping laws.
Labelling helps in marketing of a product by
grabbing attention of the customer.
Functions of Labels-
Labelling is a powerful quality signal and
a direct aid to consumers in making
purchase decisions because they can
convey important information on the
search, experience, and credence attributes
of the products (Dimara and Skuras,
2005). Labelling allows consumers to
evaluate food products and to make
informed choices (Lagerkvist, 2013).
Detailed and well-informed food labels
have become an indispensable part of
today’s consumption scenario (Singla,
2010), and labelling on food products has
emerged as a prominent policy tool for
6
packaged foods and nutrition-related
information sought from labe
promoting healthy eating (Cowburn and
Stockley, 2005). India, a country of more
than 1.2 billion consumers of food (Census
of India, 2011) with expected spending up
to US$1 trillion (PwC, 2012) by the year
2021, offers great opportunity for the
expansion of concept of healthy eating and
consideration of nutrition in food (Kumar
and Anand, 2016).
A label serves the following three primary
functions, namely, basic product
information, health, safety, and nutrition
information. Together, many studies
reviewed here indicate that nutrition label
act as a platform to convey food related
information based on which consumers
can make dietary intake-related decisions
and also it helps them to compare the
nutrition values of similar food products
and to make healthy food choices based on
the relevant nutrition information.
Nutrition Labels-
Miller & Cassady (2015) in their seminar
article highlight that nutrition labels
typically contain information on calories,
serving size, and amounts and/or daily
values of several macronutrients, vitamins,
and minerals like fats, carbohydrate,
calcium. A nutritional label is a list of
nutrient level of a product displayed on the
food label. It is meant to provide the
salient facts about the nutrition contents of
the product (Azman & Sahak, 2013).
Baltas (2001) in his major study found that
‘nutritional label is intended to inform
customer the available choices and to
stimulate the consumption and production
of healthy product.’ All of the studies
reviewed for this seminar paper indicate
that nutritional label can affect the
consumers’ purchasing behaviour
significantly because the provision of
nutrition information allows consumers to
switch consumption away from 'unhealthy'
products in those food categories toward
'healthy' products more easily. Therefore,
the nutritional panel can be concluded as a
form of guidance to a better diet and a
2010). Collectively, many studies
conducted so far outline the critical role of
nutrition labels as the consumers have a
right to know what is in the purchased
food, so that they can take better decisions
for their own well- being and for their
family also.
Types of Labels and Which Formats
Are Most Preferred-
The way nutrition labels are formatted
influences how effectively they can be
used, interpreted and compared by
consumers. Regulations are important
because they dictate which nutrients are
listed and the way that they are expressed
quantitatively, along with other aspects of
label design.
Nutrition Information Panels: Under the

healthier life (FDA, 1998). labels - Nutrition Facts panel,

manufacturers are required to provide
Thus, detailed and well- informed nutrition
information on certain nutrients. The
labels have become an indispensable part
mandatory and voluntary components
of today’s consumption scenario (Singla,
which must appear are:

1. Total calories 9. Sodium

2. Calories from fat 10. Potassium
3. Calories from saturated fat 11.Total carbohydrates
4. Total fat 12. Dietary fibre
5. Saturated fat 13. Soluble fibre
6. Polyunsaturated fat 14. Insoluble fibre
7. Monounsaturated fat 15. Sugar
8. Cholesterol 16. Vitamins and Minerals

TYPES-  Front of Pack Labelling

7
‘Front of pack label’ refers to labels Back-of-pack nutritional label is a
positioned on the front of packaged foods, common format that has been used by the
delivering nutrition information to food and beverage industries in
consumers in various formats (Schor et representing the nutrition contents in their
al.,2010). According to Geiger et al. food products. In addition to that,
(1991) and Scott & Worsley (1994), a according to the reviewed literature on
front-of-pack format is more effective and nutritional label format that was done by
acts as the addition to the traditional Cowburn and Stockley in 2005, it was
numerical nutrition fact table on the back concluded that particular vulnerable
of package. It is not only useful in groups such as older consumers and
assisting the customers making the consumers with lower levels of education
healthier food choice but also it presents and income were likely to have difficulties
truncated nutrition information on the front in understanding nutritional labels. Their
of the package, in varied forms. Due to a review also showed that consumers had
combination of their simplified format and difficulty converting information from ‘g
their prominent position on the front of the per 100 g’ to ‘g per serving’ and
package, it has been suggested in many interpreting serving size information. It
studies that FOP labels are more noticeable was revealed that during shopping on food
than traditional labels. products, customers had to take into
account the contents of several nutrients
 Percentage Daily Intake (%Di)
simultaneously to ensure they choose
System
healthier foods.
This system shows the contribution of
 Eco Labels
energy, protein, total fat, saturated fat, total
carbohydrate, sugar, fibre and sodium The Global Eco-Labelling Network
provided by a serve of a food as a (GEN), defines an eco-label as ―a label
percentage of daily requirements for each which identifies overall environmental
nutrient, based on the estimated nutrient preference of a product or service within a
requirements of a reference adult (a 70kg product category based on life cycle
adult male). considerations'' (GEN, 2004). Eco-labels
promote sustainability without
compromising consumer freedom of
 Back of Pack Labelling
choice and they reduce consumers’
information search costs, which makes it

8
more likely that the information provided
will actually be used (Grunert and Wills,
2007). An eco-label is considered to be a
believable symbol that manufacturer can
put on their products which will not only
differ themselves but they can also claim
that such products are genuinely better in
terms of environmental performance than
the similar products available in the
market. According to United Nations
Environment Program (UNEP) eco-labels
are voluntary and governments should
encourage organizations to use ecolabels
and help green consumers make
responsible decision.
DETERMINANTS OF NUTRITIONAL
LABEL USE-
There are many researches conducted in
various countries to find out
relationship between demographical and
situational factors of consumer and their
understanding & usage of the nutrition
label. Demographical and situational
factors like age, gender, education,
income, marital status, dietary status and
number of members in a family, BMI of
consumer, area of residence, and health
consciousness are few on which various
studies have been carried out.
1) Nutrition knowledge
Nutrition knowledge is defined as the
knowledge of concepts and processes
related to nutrition and health including
knowledge of diet and health, diet and
disease, foods representing major sources
of nutrients, and dietary guidelines and
recommendations (McKinnon, Giskes, &
Turrell, 2014).
Data from several studies suggest that
nutrition knowledge helps the consumers
in the following three ways. First, prior
knowledge helps the consumers to pay
attention to important information on a
label, and to ignore marketing features that
do not reflect salient nutritional qualities,
a
which in turn minimizes information
overload. Second, prior nutrition
knowledge can facilitate comprehension
of, and memory for, nutrition label
information (e.g., determining whether
700mg represents a little or a lot of
the
sodium). Third, prior nutrition knowledge
supports the application of the
comprehended and remembered
information to food choice.
2) Motivation
The motivation to process information has
been shown to be one of the moderators of
the effect of nutrition information panels.
It was observed in the FGD that unlike
men, women and adolescent girls who
were concerned with ‘fat’ and ‘sugar’
intake were in the habit of checking the
nutrition facts in order to choose low-
9
fat/low-sugar foods. This is consistent with
findings from other countries where more
women than men have reported that they
avoid high-fat foods. This specific attribute
of choosing low-fat foods using the label
information could be attributed to health
motivation and the greater involvement of
women and girls to control weight and its
associated health and social problems.
3) Education
Numerous studies have attempted to
explain that consumers with different level
of education have different involvement in
the food label. There is a large volume of
published studies that establish that a
higher education level would allow the
user to benefit more from nutrition
information and this is where consumers
with higher education level can understand
the information on the nutrition label,
which then could provide them more
information. The study also suggested that
a higher education level would offer the
consumer tremendous advantage of being
more informed about nutrition, thus are
more able to interpret the nutrition
information. In contrast, it has been seen
that a consumer with lower level of
education pays a little attention towards
nutritional labelling. This may be due to
the fact that they have some problems in
understanding the nutrition labelling.
Different education level may influence
consumer towards nutritional labelling in
various ways. Highly educated consumer
may have a better chance of assessing all
information in nutrition labelling as
compared to lower education consumer.
Several studies have examined a clear
positive association between level of
education and the habit of reading labels,
indicating that the higher the level of
education, the greater the chance of
reading the label information especially
related to nutrient contents, nutrition and
health claims, and quality symbols.
4) Demographic Factors
 Age
Age is one of the variables which
significantly affect the use of nutrition
label. Nutrition knowledge differs
according to age. There is a significant
association between age and usage of
nutrition label. There are three types of
classifications of age among consumers
that include the teenagers, adults and
elders. These three groups behave
differently towards nutritional labelling.
There are some that they aware about
nutritional labelling and there are some
that they take it lightly. The elders are
more concerned on healthy lifestyle
compared to adults and teenagers. Elders
with diabetes consider nutrition labels to
be beneficial to them as it helps them to

10
choose food that is suitable for their health  Gender
condition. Teenagers are the group that
Gender plays a significant role in the usage
have least care and awareness towards
of nutrition labelling. Most of the
nutritional labelling. However, there are
researchers have concluded that females
some groups of teenagers that take this
have high tendency to use food labels and
matter seriously because they put more
are more health conscious compared to
concern on their diet to have excellent
males. It is now well established from the
body weight. Even though there are
previous studies that females were
researches that show the elders have the
expected to have more use of the nutrition
highest awareness, there are also a few
information on food labels and are usually
studies that have verified that the usage of
willing to pay more for nutritious food and
nutritional labelling is high among adults
it is also claimed that the core reason
too. Data from several studies suggest that
females were more interested in nutritional
the adults with families show high level of
labelling was that they were more
awareness in reading the nutrition label
concerned about their body weights and
because their desire to give their families
images.
nutritious foods.
 Type of household
 Income
The type of household plays an important
Income of a consumer shows an impact on
role in the usage of the nutrition label and
their purchase decision as more income
purchasing decision. There is a significant
gives them freedom for comparing more
relationship between household size and
products with various quality factors.
the usage of the nutrition label. The family
Various studies critically analyse that there
structure creates an effect on the
is a significant association between income
nutritional status of adults. The household
level of consumer and usage of nutrition.
size negatively influences usage of
Individuals with higher earning is more
nutrition information. Increase in the
likely to use nutrition label as compared to
member of the household or the number of
its counter side. The meal planners with
school going children decrease the chances
higher household income are more likely
of reading food labels. The consumers
to use nutrition label as compared to the
from larger families are less likely to use
meal planner with lower household
health claims. On the other side, there are
income.
few researches having contrast results. The

11
size of the household did not play any role
in the usage of nutritional labels by the
consumers. There may be the impact of the
size of a family on the decision to use
nutrition label as found in his research that
a member increase in the number of school
children affect negatively to read food
labels. People having children less than 16
years at home have less interest in healthy
eating.
REVIEW OF LITERATURE GAP
Very few researchers have gone into depth
to check if the nutrition labels help
consumers to make healthier and informed
purchases so the first gap addressed by the
researchers is to know if the consumers
check the nutrition label to find out its
contents before buying the packaged food
product and if it influences the final
purchase of the consumers. The awareness
regarding nutrition labels in India is low
due to which the impact of the nutrition
labels on the dietary behaviour of
consumers is also unknown and so the
second gap being addressed is to study the
degree of impact of various factors like
education, prior knowledge and income on
the use of nutrition labels by the
consumers.
DOES NUTRITION LABELS AFFECT
PURCHASING BEHAVIOUR?
Previous researches, Madhvapaty and
DasGupta (2015) have established that the
12
information about nutrients on pre-
packaged foods does have an influence on
the food choice of consumers and a very
prominent reason behind checking the
nutrient content was to steer clear of the
negative nutrients. They have also
suggested that it is less likely for people
who have a diet with high fat content to
report that the nutritional labels influenced
their food purchasing decisions compared
to people with low fat diets. This is
because consumers with low fat diets want
to avoid having fat in the products that
they purchase showing that they are
influenced by the nutritional labels.
Nutritional labels have eased the process
of having a healthy diet as it helps the
consumers to keep track of every nutrient
they consume and also informs them about
the quantity of the particular nutrient they
are consuming. The primary survey
conducted for the purpose of the seminar
paper has highlighted that majority of the
people have glanced ae the the nutrition
information but are unable to comprehend
it causing the nutrition labels to be less
affective on the consumers purchase
decisions.
Several researches, Robert and Akshay
Chandran (2017), show that the use of
nutrition labels does lead to changes in the
purchasing behaviour but in the
developing countries, merely displaying
the nutrition label does not help the
consumers to make informed choices. The
consumers have to be informed through
campaigns about how to understand the
labels.
Much of the current literature shows that
the consumers have a limited opportunity
to process the nutrition labels and were
also less concerned of them as they did not
seem to understand them, this has also
been seen the primary survey conducted
that the majority of the consumers do not
understand the labels and hence do not
refer to them to control their energy intake
or to use them for health related reasons. It
can be said that the consumers cannot
process the information on the labels due
to it being complex and having more
information on it.
From previous research findings we can
see that the consumers do not spend more
than a few seconds to glance at the
nutrition labels and so having a simple
label that summarizes the information can
positively influence the purchase of the
products.
DOES USE OF NUTRITIONAL
INFORMATION LEAD TO DIETARY
CHANGES?
The association between dietary intake and
nutrition labels have been seen in many
studies and consumers who have healthier
13
diets tend to refer to the nutrition
information to keep track of nutrients like
fats, sugar and cholesterol. Generally,
labels have been seen to affect the diets of
consumers and have also seen to contribute
to make their diets healthier. Usage of
nutrition labels have been generally related
to reducing fat intake of the consumers.
From the analysis of previous researches,
it can be said that consumers who refer to
nutrition labels have low intake of fats and
saturated fats, tend to have lower
cholesterol and sodium intake. Consumers
with dietary problems like high blood
pressure, obesity, diabetes and other
similar conditions and consumers with
healthier diets tend to use more of nutrition
labels as they have to avoid certain
nutrients to maintain their health. Fitness
driven consumers refer the nutrition labels
mostly for fibre, proteins and other
vitamins.
RESEARCH OBJECTIVES
1. To ascertain whether nutrition
labels help in making informed and
healthy choices.
2. To determine which age group
gives the most importance to
nutrition labels.
CONCLUSION
The study has reported a low level of
awareness of nutrition labels among the
Indian Consumers. It was also found that
the education level of the consumers did
not affect understanding of nutrition labels
and that majority of the consumers did not
understand the nutrition labels. A number
of studies have suggested that nutritional
labelling positively influences purchasing
behaviour and that it promotes healthier
consumption. The results of our survey
conclude that only 25% of the respondents
suffered diet-related health problems and
hence very few referred the nutrition labels
for health reasons. The survey concluded
that the presentation of the nutrition labels
affected the understanding directly and due
to the current complexity, specificity and
location of the label on the package the
understanding is very poor. Such technical
terms and complex variable should be
made easier for a better understanding and
to promote healthier ways of living. On the
basis of the research conducted it can be
concluded that the intention of promoting
healthy food choices through use of
nutrition labels is not being met
completely and therefore the need of the
hour is to take up educational activities
and campaigns to spread awareness among
the consumers.
RECOMMENDATIONS-
1) The nutrition labels should have a
simpler format that has been streamlined
REFERENCES-
14
by the government through a provision
across all pre-packaged food products.
2) The nutrition facts should be printed at
the front of the pack so that the consumer’s
attention goes straight to the label.
3) The consumers need to be informed
about what the labelling stands for and
how it is read through various campaigns
and awareness programmes.
4) The manufacturers should help
consumers control their consumption by
simpler formats of nutrition labels and
promote favourable attitudes toward the
brand and it would be a win-win for the
manufacturers and consumers.
5) Create more concise ingredient lists and
avoid terminology that is not generally
used by layman. For example, use sugar
for corn syrup, high-fructose corn syrup,
dextrose, sucrose, honey, etc. to avoid
confusion.
6) Endorse a type of nutritional facts
window on the package that sorts
ingredients by “get enough” and “avoid
too much”. Sorting ingredients this way,
rather than by percentage or daily
recommended values is much easier for
consumers to understand.
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