THE STUDY OF CONSUMER ATTITUDE TOWARD FOOD PRODUCT LABELS INFORMATON .

INTRODUCTION
From the last few years product labelling has been playing an increasing role as an instrument of direct aid in purchase decisions. The Economic theory suggests that product labelling reduces the information asymmetry between seller and consumer, allowing the latter to make purchase choices that are more consistent with his or her own needs and favouring the correct functioning of the market. In this sense, labelling is a tool of direct shopping aid to consumers, because it intends to improve the quantity and often the nature of information available to consumers in their decision making and becomes an instrument of consumers sovereignty. The central function of product labelling is to provide consumers with information so they can better choose products that match their individual preferences, thus labelling can improve the functioning of markets for quality. This is particularly useful for credence and experience attributes, because labelling can transform these attributes into search attributes Ethical attributes are credence goods and cannot be checked by the consumer, so labelling is especially qualified to raise standards of ethical values and to allow consumers to match their individual preferences, but its potential is not always well exploited. In comparison to product brands, labels are accessible for almost all businesses which fulfil the labelling criteria, are third-party certified, and transmit specific product standards information. In particular, consumers use of label elements depends on how important they deem the labelled information to be, this is crucial to the impact of labels as a direct shopping aid. Using information imposes costs upon consumers, those who attach little value to particular quality attributes may choose to ignore information about them. A marketing theory, the information-processing model, hypothesizes a series of steps that consumers would take before actually purchasing a product: --------Exposure Reception Persuasion Retention Behaviour Consumers may ignore the messages on the label at any step by not seeing the message, by not processing the message, by rejecting the message rather than being persuaded by it, by forgetting it, and by not changing their behaviour. Each decision may be affected by other aspects of the message: the source, the substance and style, the channel, and the nature of the target audience. In addition, there are several limits to the effectiveness of labelling. These limits stem from several.

First related sources, space on the label itself is limited and is in high demand for use by food companies; this involves a choice of attributes to emphasize and the form and length of messages. Second, consumers are often harried and hurried, and grocery shopping logistics limit the potential for significant use of label information in making purchase decision. Economic theory and observations of consumers' shopping behaviour indicate that saving time becomes more important to consumers as incomes rise. Empirical studies, on successful (Ippolito & Mathios, 1990) and unsuccessful labels (Moorman, 1996)in educating consumers and changing consumer behaviour, highlight the observation that consumers often make hasty food choices in grocery stores and usually do not scrutinize food labels. Consumers are more likely to read and understand labels that are clear and concise. Many warnings or a long list of detailed product information may cause many consumers to disregard the label completely. Providing information that leaves consumers confused is unlikely to lead to improvements in market efficiency. Moreover, food labels' impact on purchase decisions is also circumscribed because labels are only one, and not the most prominent or easy to use, of a range of information sources used by consumers, as prior use, brand names, advertising, friends' opinions, and so on. In literature several studies have tried to analyse the reaction of consumers to the information on the label, through a great variety of methodological approaches, including focus group-deep interview, hedonistic, and experimental, approaches. In particular, Crespi and Marette (2003), in a critical review on the labelling themes, underlined the valence of empirical surveys of consumers in the evaluation of labelling policies. It is possible, in fact, through such methodology, to provide fundamental information from which to draw particularly useful and interesting conclusions for the public operator, to implement labelling programs that meet the needs of consumers, and the private companies, to help them address their marketing strategies.

Literature Review
CASE STUDIES 1. General Food Product Labelling and Consumer Attitude Review Key Findings The Influence of Food Labelling on Consumers Purchasing Decisions
The time available for food purchasing also affects consumers use of food labels. So too does the format of many food labels (size, fonts, style of language), and consumers values and attitudes to food production, distribution, and preservation. Food labels in the UK are read and used by approximately half the population. Food consumers in Scotland and England may have less interest in labels than those in some other European countries.

There is some evidence that consumers view the responsibility for quality assurance as lying with governmental and public institutions, despite some mistrust of such organisations Consumers mainly read food labels for information about the safety and security of food products. Food labelling on most products presents consumers with more information than they can reasonably process, resulting in information overload. This often leads to confusion, misunderstanding and uncertainty which, in turn, causes scepticism and mistrust of food labels.

Consumers Use of Country of Origin Labels on a Food Product

Country of origin labelling is an important indicator for consumers of both the quality and safety of food. A key feature of country of origin labelling is the traceability of food products, particularly the ability to track the food chain. There is also evidence of confusion as to whether country of origin, (particularly with animal products) refers to where animals are born, raised, slaughtered or processed. The country of origin literature is replete with evidence of consumer ethnocentrisms, food nationalism and food patriotism. This generally refers to the belief that ones own country or region produces safer and better food than other countries or regions. The evidence on the price and willingness to pay for country (or region) of origin products is mixed. Consumers who have a commitment to local, organic and natural methods of food production are likely to pay a premium despite their economic circumstances. Price ranks alongside country of origin and use-by/best before dates as the most commonly sought information on food labels.

Consumers use of food labels is not uniform, though it does not consistently vary according to the socio-economic or socio-demographic backgrounds of consumers. Consumers values, attitudes and food preferences (vegan, organic, natural, etc.) seem to influence the use of general food labels more so than socio-economic and socio-demographic factors.

General Food Labelling Review-Food Labelling addressed the following questions:

Question No.1. What does the available evidence tell us about how food labelling is used to influence consumers food purchasing decisions?

The Influence of Food Labelling on Consumers Purchasing Decisions Food labels in the UK are read and used by approximately half the population (Mintel, 2006). Whilst this is similar to the proportion of food consumers who read food labels in other countries, it would appear that food consumers in Scotland and England may have less interest in labels than those in some other European countries (Bernues, et al, 2003). This review of evidence suggests that food labels are often read by consumers to establish the safety, hygiene and quality of food products (Banterle and Stranieiri, 2008; Bernues et al, 2003; Enneking, 2004; Gellynck, et al, 2006; Grebitus and Bruhn, 2006; Hoolgland, et al. 2006; Lusk, 2006; Sabbe et al, 2009; Verbeke and Vackier, 2003). The labels read by consumers for these purposes include country of origin, traceability (of the origin, production process and product information of food), quality assurance, and expiry/use-by dates. Expiry/use-by dates are seen as good indicators of freshness, shelf-life and general food safety. Consumers are also interested in ethical labelling (fair trade, sustainable development, environmental protection/sustainability, animal welfare etc.), the presence of genetically modified ingredients or the use of GM production methods, and whether food products are produced by natural or organic methods. These concerns are generally influenced by the values and particular characteristics of certain consumers. The way in which consumers go about searching for information on food labels (active versus passive searching) also affects consumption choices. The time available for food purchasing also affects consumers use of food labels. In supermarkets most consumers show a superficial level of processing the information that they do read on labels. Consumers find the format of many food labels to be inadequate, especially the size of labels and the fonts used in them, the presentational aspects (insufficiently highlighted), and the style of language in which they are written (not plain English). Food labelling on most products presents consumers with more information than they can reasonably process, resulting in information overload. This often leads to confusion, misunderstanding and uncertainty which, in turn, causes scepticism and mistrust of food labels. Suggestions to improve the format of food labels include making them bigger, highlighted, and written in plain English. There is also evidence of scepticism and mistrust of food retailers who produce labels, and of some organisations that have responsibility for quality assurance and 2 food safety standards. UK consumers would appear to be particularly sceptical of quality assurance schemes and labels. There is some evidence, however, that consumers view the responsibility for quality assurance as lying with governmental and public institutions, and that endorsements by national and/or international authoritative organisations enhance the credibility of quality assurance schemes and labels. An exception to this in the UK comes from vegans and consumers who prefer organic products, who seem to believe that the only person you can trust about food is yourself (Eden et al, 2008:628).

Question No2. How do consumers use country of origin labels on a food product? Consumers Use of Country of Origin Labels on a Food Product Country of origin labelling is an important indicator for consumers of both the quality and safety of food. A key feature of country of origin labelling is the traceability of food

products, particularly their origin, production and distribution histories. The term traceability, however, has a wide range of meanings across Europe and other parts of the world, which suggests some confusion for consumers as well as for those concerned with maintaining public confidence in the safety and security of food. There is also evidence of confusion as to whether country of origin, particularly with animal products, refers to where animals are born, raised, slaughtered or processed. The country of origin literature is replete with evidence of consumer ethnocentrisms, food nationalism and food patriotism. This generally refers to the belief that ones own country produces safer and better food than other countries. What seems to underlie this belief, other than sheer pride in ones own country, is that shorter food chains allow for greater transparency about production and distribution methods and histories. There is also evidence of consumer interest in the origin of food products within countries, such as regional and territorial areas. This reflects a common belief that local, or near-local produce is not only safer, better tasting, and of superior quality, but that it is also easier to verify its quality. A preference for local or regional sources of food, which can mean very specific areas, villages, or farms, is also seen as providing economic benefits for local producers and local economies. Country of origin is also related to what consumers are willing to pay for food products. The evidence on the price and willingness to pay for country (or region) of origin products is mixed. Whilst there is evidence that consumers will pay a premium for perceived superior foods in general, and assured country of origin foods in particular, this premium is generally rather modest. Consumers who have a commitment to local, organic and natural methods of food production are likely to pay a premium despite their economic circumstances. Price is one of the most important labels for most consumers, and one that influences their food purchasing decisions. Price ranks alongside country of origin and expiry/use-by dates as the most commonly sought information on food labels.

Question No.3 What does the available evidence tell us about the variations in consumers demands for, and their understanding and use of, general food labelling (e.g. by socio-demographics, food preferences)? Variations in Consumers Demands For, Understanding, and Use of General Food Labelling Consumers use of food labels is not uniform. Consumers values, beliefs and reference points (Hu et al 2006) act as mediating influences on their use of general food labels. Consumers responses to food labels also vary according to different food produ cts and, in the case of animal products, different types of meat. Beef consumers and lamb consumers, for instance, appear to use and respond to food labels differently. This may also reflect differences in consumers attitudes and approaches to food purcha sing, whereby involved1, cautious and concerned consumers contrast with those whose food purchasing can be characterised as casual and indifferent. Price is an important variable in food purchasing, and there is evidence that it is often more important than the type or content of food labelling. There is evidence of different price-elasticity and price-sensitivity amongst different groups of consumers, though since this was not a principal focus of this

review it is not possible to make any firmer conclusions about the nature of these differences. There is, however, a considerable amount of economic literature on price and willingness to pay for food products that deserves more focused and detailed attention.

CASE STUDIES 2. A Research Study into Consumers Attitudes to Food Labelling

Introduction The aim of food labelling is to provide consumers with information which may influence their purchasing decisions. For example, consumers may want to know what ingredients are in a food product, how to cook it, how it should be stored, and its best-before or use-by date, its fat content or other nutritional properties. Detailed, honest and accurate labelling is essential to inform the consumer as to the exact nature and characteristics of the food product, enabling them to make a more informed choice. In Ireland, the general rules for the labelling of pre-packaged foods are laid out in the European Communities (Labelling, Presentation, and Advertising of Foodstuffs) Regulations, 20021 (as amended). The fundamental rule of the labelling legislation is that consumers should not be misled to a material degree. Objective The objective of this study was to establish if consumers understand the various forms of labelling currently presented on foodstuffs and the efficiency of such labels to assist them make informed purchasing choices. Specifically: 1. To ascertain whether or not consumers consider/ consult labels before purchasing food 2. To ascertain if the information on current labelling is sufficient to enable informed purchasing 3. To establish if consumers would like to see more front of pack2 labelling 4. To establish what consumers would like to see specifically on food labelling 5. To establish how labels (if at all) influence consumers purchasing decision-making processes, and 6. To ascertain whether or not consumers accrue benefits from the labels.

Findings

The objective of this study was to establish if consumers in Ireland understand the various forms of labelling currently presented on foodstuffs, and if labels help consumers make informed purchasing choices. Although the aim of food labelling is to inform consumers of the characteristics of a food product, so that they can make a more informed purchasing decision, this study found that over one half of consumers never, rarely or only sometimes read food labels. The proportion of consumers who always consult food labels, however, has risen to 25% from 8% in 2004. The main reasons consumers do consult food labels, are to obtain information on the nutritional content, or to look for specific ingredients. Consumers are least likely to consult labels on everyday products such as milk, pasta, juices, fruit and vegetables, and also for foods they considered to be junk food. The information on current labelling is likely to be sufficient, with nearly three quarters of consumers saying that they found food labels to be informative. However, consumers who always/usually read food labels were more likely to find food labels informative, than those who rarely/never read food labels. Of the mandatory labelling information, required under the general labelling legislation, consumers ranked the date of minimum durability as the most important piece of information. Although consumers ranked the declaration of alcohol in alcoholic products as the least important piece of mandatory information, over 80% said that health advice should be labelled on alcoholic products. Currently, this is not mandatory. They survey found that many consumers are unaware of QUID information, which is often labelled on food products. QUID also seems to confuse consumers as some say they use it for inappropriate reasons to calculate the nutritional content of a food product, for example. Eighty seven percent considered the nutrition table important; with 68% preferring the more detailed Group 2 format. Again, consumers who usually/always read food labels were more likely to consider nutrition information as important, than consumers who never/rarely read food labels. The location of nutritional information on the pack did not appear to be important to the consumers surveyed in this study. Although around one third said they would prefer the nutrition information to be on the front of pack, only a slightly power proportion said they didnt mind where it was located. Consumers would prefer to see nutrient values stated per portion size, rather than per 100 g/ml. They also indicated that they would prefer to see the salt content declared as salt rather than sodium, but that a sodium (salt equivalent) format would be acceptable. As nearly three quarters of consumers said that they were concerned about salt in food, it is important that the labelling provides this information in a format they understand. Labelling does seem to influence consumers purchasing decisions, with at least two thirds saying they would be inclined to buy a food bearing a nutritional claim. This survey also showed that origin labelling is important to consumers, as the majority of consumers said they wanted origin labelling on all foods, including loose and pre-packaged foods. Although (with the exception of the name of the food and, in some cases, an indication of origin) the labelling required under the general labelling legislation does not apply to foods sold loose; in this survey, however, 75% and 58% of consumers said they would like to see an indication of the date of minimum durability and the origin, respectively, on foods sold loose. With regards to voluntary labelling, when consumers were shown examples of signpost nutrition labelling schemes, the traffic light format was judged most informative, but a combination of the GDA/traffic light system was judged least informative. The qualitative study showed that although the GDA scheme was not fully understood by consumers, it was considered informative once explained.

Almost twice as many consumers considered the voluntary allergen message May contain (allergen) more informative than the Made in a plant that handles (Allergen) message. This study has shown that some aspects of food labelling are confusing for consumers. This indicates a need to educate consumers on the different aspects of food labelling to enable them to make more informed purchasing decisions.

CASE STUDIES 3. A Study toward an Understanding of Consumers Perceptions of Food labels Introduction
This study examines the factors that influence consumers perceptions or beliefs about food labels. The results indicate that health and diet related attitudes, special diet status, perceived importance of product attributes like nutrition and ease of preparation, race, gender, income, and body mass index are important factors affecting consumers perceptions and beliefs about label use. Understanding the type of consumers who have these perceptions and beliefs as well as the factors that influence these beliefs and perceptions is crucial for designing effective marketing and nutrition education campaigns. The results of this study generally indicate that various factors influence consumer perceptions and beliefs about label use. No other known study on this topic has been published. The results generally suggest the following: Toward an Understanding of Consumers Perceptions of Food Labels: I. lower income, older individuals, whites compared to those of other races, males, those with higher body mass index, those from the South compared to those from the Northeast, those who are not on special diet, those who believe that people are inherently born to be fat or thin and that there is not much one can do about it, those who are less aware of the link between diet and disease, those who perceive ease of preparation and nutrition as less important when food shopping, those who perceive a low cholesterol diet as less important and major household shoppers are less likely to agree that nutrition information on Food labels is useful to them. Whites compared to blacks, those who are not on special diet, those who perceive nutrition as less important when food shopping, and those who perceive a low cholesterol diet as less important are less likely to agree that they feel confident that they know how to use food labels to choose a healthy diet. Whites compared to blacks, males, those with higher body mass index, and those who are not on special diet, those from the South compared to those from the Northeast, cholesterol diet as less important, and those who perceive Nutrition as those who exercise less frequently, those who believe that people are inherently born to be fat or thin and that there is not much one can do about it, those who are

II.

III.

less aware of the link between diet and disease, those who perceive a low less important but taste as more important when food shopping are less likely to agree that they read food labels because good health is important to them. IV. Lower income individuals, males, higher educated individuals, those who are not on a special diet, and those who believe that people are inherently born to be fat or thin and that there is not much one can do about it, those who are less aware of the link between diet and disease, those who perceive a low cholesterol diet as less important, and those who perceive nutrition as less important when food shopping are less likely to agree that reading labels makes it easier to choose foods Lower income individuals, whites compared to those of other races, those with higher body mass index, smokers, those who are less aware of the link between diet and disease, those who perceive a low cholesterol diet as less important, and those who perceive ease of preparation and nutrition as less important when food shopping are less likely to agree that sometimes they try new foods because of the information on the food label. Lower income individuals, blacks, those with higher body mass index, those who are not on a special diet, those who believe that people are inherently born to be fat or thin and that there is not much one can do about it, those who are less aware of the link between diet and disease, and those who perceive ease of preparation and nutrition as less important when food shopping are less likely to agree that using food labels to choose foods is better than just relying on their own knowledge about what is in them.

V.

VI.

CASE STUDIES 3. Consumers Attitudes toward Labelling of Ethical Products: The Case of Organic and Fair Trade Products
This article aims to investigate the factors that influence consumer attitudes to use labelling information in purchasing organic and Fair Trade products and to verify if labelling is a valid tool of direct shopping aid to consumers, with a view to derive inferences that may contribute to better strategic and tactical marketing decisions. A quantitative survey with a sample of 300 consumers living in south Italy was conducted to explore consumers' knowledge and attitudes toward labelling of organic and fair trade products. Data generated in this way were submitted to exploratory and segmentation analysis. The results indicate significant differences in consumer attitudes and behaviour for ethical products and show the importance of new variables, other than demographics characteristics, that can influence the purchasing behaviour and label information use.

Findings

The results of the survey show that the interviewees have a good attitude toward ethical products, which is expressed through a satisfactory knowledge of organic and FT products and a frequent consumption of the same. Nevertheless, in spite of the good level of information declared, consumers show the need to obtain more information in respect of FT and organic products. Moreover, the results show that the majority of interviewees (43%) consider the labelling of ethical products an important information tool; only in 7% of the cases they state they do not use labels at all. Despite this, those who use labels state also they are not satisfied with the current level of information on them, because they consider it insufficient and because they complain about an excess of information of advertising nature. Other interesting aspects concern the difficulty of a correct interpretation of the information on the label and the lack of confidence in the same. The analysis carried out underlines how the attention and the use of the different information present on the label by the consumers depends mainly on how important they think it is. The use of information, in fact, imposes a cost on consumers, concerning its search, its decoding and assimilation, and when it is not perceived as important, consumers can decide to ignore it in their purchase choices. The main results emerged from the multivariate analysis confirm that the propensity to use labelling as an information tool depends not only on the socio demographic variables, but also on variables linked to lifestyle, to involvement in particular social and environment themes and on the variables linked to the degree of confidence expressed toward the different sources of information. Summarizing the results of the analysis it is possible to state that more and more ethical consumers use labelling as a source of information and wish, therefore, for more information and more clarity. Considering that the problem of information asymmetry that discredits the market of ethical products represents a strong deterrent to the consumption of such products (McCluskey, 2000), the use of new labelling forms could be an appropriate tool to promote ethical consumption. To conclude, it is possible to state that the label, as an extrinsic quality indicator, contributes to make ethical products characteristics transparent, even though it is necessary to underline that its interpretation depends on the different contexts in which it operates. In Italy, for example, as confirmed also by the empirical survey, there is a great feeling of confusion on labelling, due to the scarce clarity with which information is displayed, and this contributes to determine a generalised scepticism on the authenticity of FT and organic products. It becomes fundamental, therefore, to provide the consumer with clear and concise information, because to display unclear information on the label does nothing but increase the research costs that consumers have to pay for the evaluation of the product quality. It is necessary, moreover, to improve the modalities with which the message is proposed to consumers, favouring a simpler and more immediate understanding of the same, though, for example, the introduction of quality standards, for the tests and certifications to support labelling to strengthen its validity.