Kelantan, Malaysia b Department of Agribusiness and Information Systems, Universiti. Putra Malaysia, Selangor, Malaysia Published online: 03 Mar 2015.

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1 This article was downloaded by: [Universiti Malaysia Kelantan], [Zulariff Abdullatiff] On: 07 March 2015, At: 17:08 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: Registered office: Mortimer House, Mortimer Street, London W1T 3JH, UK Click for updates Journal of Food Products Marketing Publication details, including instructions for authors and subscription information: Food Labels Impact Assessment on Consumer Purchasing Behavior in Malaysia Zul Ariff Abdul Latiff a, Golnaz Rezai b, Zainalabidin Mohamed b & Mohamad Amizi Ayob a a Faculty of Agro Based Industry, Universiti Malaysia Kelantan, Kelantan, Malaysia b Department of Agribusiness and Information Systems, Universiti Putra Malaysia, Selangor, Malaysia Published online: 03 Mar To cite this article: Zul Ariff Abdul Latiff, Golnaz Rezai, Zainalabidin Mohamed & Mohamad Amizi Ayob (2015): Food Labels Impact Assessment on Consumer Purchasing Behavior in Malaysia, Journal of Food Products Marketing, DOI: / To link to this article: PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the Content ) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &

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3 Journal of Food Products Marketing, 00:1 12, 2015 Copyright Taylor & Francis Group, LLC ISSN: print/ online DOI: / Food Labels Impact Assessment on Consumer Purchasing Behavior in Malaysia ZUL ARIFF ABDUL LATIFF Faculty of Agro Based Industry, Universiti Malaysia Kelantan, Kelantan, Malaysia GOLNAZ REZAI and ZAINALABIDIN MOHAMED Department of Agribusiness and Information Systems, Universiti Putra Malaysia, Selangor, Malaysia MOHAMAD AMIZI AYOB Faculty of Agro Based Industry, Universiti Malaysia Kelantan, Kelantan, 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 not to purchase 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. KEYWORDS food labeling, consumer, attitude, purchasing behavior INTRODUCTION In this modern age of consumerism, people are becoming more aware and showing greater concern about what they eat. This has led to greater Address correspondence to Zul Ariff Abdul Latiff, Lecturer, Faculty of Agro Based Industry, Universiti Malaysia Kelantan, 17600, Jeli, Kelantan, Malaysia. zulariff@ umk.edu.my Color versions of one or more of the figures in the article can be found online at www. tandfonline.com/wfpm. 1

4 2 Z. A. Abdul Latiff et al. concerns about why consumers need to see what they eat or drink on products labels. Malaysia is one of the fastest-growing economies with a substantial number of its population becoming more enlightened about safe and healthier food thus, there is the possibility that Malaysians are showing more interest in purchasing and consuming more healthy and hygienic foods (Rezai et al., 2014). Due to the multicultural nature of Malaysian society, where Islam is the religious culture of the majority, there tends to be some high level of consumers consciousness and interest in the halal nature of food products (Sian et al., 2010). It can be said that this is due to not only religious reasons but also the belief outcome of being assured that eating halal foods guarantees better healthy living. Psychologically, consumers attitude toward food labeling may have a massive effect on the consumption of the food or product. The majority of Muslims in Malaysia with a strong belief in the principles of halal and haram (lawful and unlawful) can be linked to the emotional and behavioral outcome of purchase and consumption of any food product. So based on the belief principle of haram (unlawful), foods and drinks such as pork and alcohol are tagged as not only forbidden but also unhealthy and harmful. In addition, these universal religious beliefs and principles tend to have a global effect as Muslims all over the world hold to this attitude. This can be linked to the assertion that the consumer market in the Islamic world, being the fastest growing globally, has something to do with religious beliefs and commitment, coupled with the unique qualities of hygiene and health found in halal foods (Burgmann, 2007). Food generally contains a variety of nourishment that is highly necessary for optimal body functioning, and it is mentioned that the decision consumers make before purchasing or consuming any food product is a function of the quality of food, price, packaging, and labeling (Mohd Daud et al., 2011). Consequently, labeling, which is one of the essential mediums through which customers get to know what the food contains, affords the consumer to take proper decisions on the one hand, and also provides all necessary information about the healthy and hygienic nature of the food product, on the other. Labeling is seen from three segments. Based on the findings, these three labels are truly accepted which are halal logo, ingredients labeling, and nutrition labeling. Part of the effect of the halal logo is that it helps consumers to evaluate and acknowledge which product is halal (lawful) or haram (unlawful), as it enables them to fulfill their religious principles. More so, nutrition labeling can serve as a means through which consumers can make informed decisions and choice of purchase, promote competition on food quality, thus leading to improved nutritional properties in food production (Mohd Daud et al., 2011). Thus, coupled with adequate labeling, manufacturers and marketers in Malaysia and the entire globe need a comprehensive understanding of consumers beliefs and thoughts, emotional

5 Food Labels Impact Assessment 3 states, and behavior outcomes toward arriving at the spotlight of obtaining consumers purchasing decisions of their products. The emerging and growing economy and the increasing consumer population with higher purchasing power coupled with the growing number of enlightened people about safe and healthier food within the Malaysian community has impelled the current study. Thus, the purpose of this study is to examine consumers attitude toward food labeling in Malaysia. LITERATURE REVIEW In a study on the usage and understanding of food and nutritional labels among Indian consumers, Singla (2010) found that food labels play a significant role in a customer s first-time purchase of a product in India. Consumers read food labels to know about free gifts, offerings, and brand comparisons. Price, ingredients, and expiry dates are also read, but very few read nutritional information. Nutritional labels are developing a suitable policy for imparting education regarding nutrition; consumers should be made aware of the relation between diet, health and disease; initiatives should be taken at school education level; and nutritional labels should be consumer-friendly with easy terminology for better usage. Moreover, previous research has shown some evidence reflecting the relationship between food labels and consumers purchasing behavior. One of the major findings is the role of communication in creating intention to purchase food products. Researchers have come out with some findings showing that consumers with a high preference for healthy and safe food do change their food and nutrition behaviors as a result of their strong interest in packaging information (Kreuter, 1997; Wandel, 1997). Another issue of concern is the level of carefulness a consumer displays about the information provided on food labels. Coulson (2000) reported that the degree or how useful the information provided on food labels and packaging is a function of the consumer s level of carefulness, which is often higher for consumers who show greater concern about the food they purchase and consume. The Asian Food Information Centre (AFIC) has investigated consumers responses to nutrition information on food packaging as well as contextual factors that affected consumer responses in China and Malaysia. Based on the research done, most consumers agreed that the nutrition information on packaging should be provided for all manufactured foods. Nevertheless, consumers admit their minimum knowledge pertaining to food product information such as scientific information on the food ingredients. Alam and Sayuti (2011) examined the application of the theory of planned behavior (TPB) in halal food purchasing with the aim of extending prior research examining halal food purchasing behavior in Malaysia.

6 4 Z. A. Abdul Latiff et al. Self-administered questionnaires were used to collect the data, and multiple regression analysis was used to recognize the factors affecting halal food purchasing behavior among Malaysian consumers. Results revealed that consumer attitude and food labeling positively and significantly influence consumer s intention purchasing on halal food. Consumers with higher levels of religiosity and education are more aware about the halal status of the product (Rezai et al., 2009). The importance of understanding consumer concerns for halalness of the food product is in relation to the demographic factors. Level of religiosity is shaping the mind of consumers in purchasing halal-labeled products. Research on 400 non-muslim consumers in Klang Valley was done to get their responses pertaining to halal food products in the Malaysian food market. The results of this study suggest that non-muslim consumers are aware of the existence of halal food, halal principles, and the advantages of the halal way in slaughtering the animals (Rezai et al. 2015). Conceptual Framework MATERIALS AND METHOD Ajzen s (1991) theory of planned behavior serves as the theoretical framework for this study. The theory of planned behavior provides a structure that examines the factors that influence individual behavioral outcomes. According to this theory, three independent factors determine a person s behavior these include attitude, subjective norms, and perceived behavioral control. The theory of planned behavior suggests that the attitudes of consumers toward food labels are made up of their beliefs and consciousness about the labels attached to food products, their feelings on the food, and their behavioral outcome, which can be linked to the person s purchasing decision. Moreover, labeling in which if related to attitudes of consumers can be said to influence their purchasing decisions. This conceptual framework is shown in Figure 1. Based on the conceptual framework, beliefs, knowledge, emotional states, and behavioral outcome influence consumer attitude. In addition, food labeling has influence on consumer attitude, while consumer attitude of any products influence the purchasing behavior. Data Collection and Sampling Frame The population of the study comprises both Muslim and non-muslims consumer in Klang Valley, Malaysia. A stratified random sampling technique was adopted in selecting 2,014 samples. Consumers are divided into three groups based on their housing areas: (i) high-income residents; (ii) medium-income

7 Food Labels Impact Assessment 5 FIGURE 1 The influence of consumer attitude and food labeling on purchase intention (adopted and modified from Azjen, 1991). residents; (iii) low-income residents. From each housing area (Taman), 10 houses were randomly selected. A total of 2,500 questionnaires were distributed, but 2,014 (80%) of the questionnaire were returned. Prior to the distribution of the questionnaire, an internal consistency (reliability) check was computed, and it was found that the Cronbach s coefficient alpha for whole item was.83. The questionnaire used contained subsections. These subsections of the instrument were retrieved from previous studies. The first part consists of the demographic information, age, gender, level of education, income, and years of service. Then comes the ranking level among the label of food. Finally would be questions related to food labeling, consumer attitude, and purchase behavior. A 7-point Likert scale was used in the survey. For the statistical part, the descriptive analyses were used for the demographic factors. Regarding the relation between demographic factors and the food label, chi square was used to determine the relation. Factor analysis was to identify constructs, or factors, that statistically explain the patterns of variations among multiple variables. Here the variables are halal, nutrient, brand, expiry date, price, health claim, and ingredient label. Finally, the structural equation model to ensure the model fit the finding. Table 1 lists the constructs, items, and internal consistency indexes used in the study. The study applied a three-stage structural equation modeling, using the AMOS (version 18) model-fitting program to test the research hypotheses. The study first assessed the validity of the measurement model, the confirmatory factor analysis of the food labeling. Next, the good-fit of the full-fledged research model was examined (Figure 2). Once a model was estimated, a set of conventionally accepted criteria to evaluate its goodness of fit was applied. The measures, based on the conventionally accepted criteria for deciding what constitutes a good fit model, assess the (1) consistency

8 TABLE 1 Measurement of the Variables of the Hypothesized Model Construct Item Measure Mean SD Reliability Ingredient Food Labeling Ing1 Ingredient label can create the awareness of the food product quality Ing5 I sometimes have difficulties to understand scientific terms such as E422 in the ingredient label Ing2 The ingredient label should be easily understood by an ordinary person Nutrient Nu1 I prefer to purchase nutritional product Nu3 I believe checking nutrition label can lead me to a healthier choice Halal Logo Hal2 The variety of halal logo in the market makes me confused Hal3 The variety of halal logo in the market makes me confused Hal6 I am very concerned about the country of origin of halal logo Hal2 The variety of halal logo in the market makes me confused Belief Knowledge Consumers Attitude PC4 I will purchase food products with nutrition label even though I do not understand the scientific terms PC5 Nutrition facts label must appear on food products for purchasing decision PC6 I read the nutritional label to know about the quantity of fat, fiber, and sugar before purchase PC2 Knowledge about nutrition terms is important for me in purchasing food Emotional stage CA2 Food labeling consists of a package of food that contains a variety of information about the value of the food item (i.e., ingredient, nutritional, health, halal)

9 Label CA3 Normally I check the food label before purchasing CA4 Currently the food label has benefited me a lot CA5 I will read the label for new products that arrive in the market CA6 I was influenced with media information regarding food purchasing Behavioral outcome SN1 Food products with nutritional label are more expensive SN2 I will purchase food products with nutrition label even though I do not understand the scientific terms SN3 I believe the higher price indicates the better quality of product SN4 Regardless of other labels, price is very important to me Purchase Behavior Purchase Behavior PB4 Price label affects my purchasing behavior PB2 I will purchase food products with nutrition label even though I do not understand the scientific terms PB6 I intend to buy healthy products regardless of the price

10 8 Z. A. Abdul Latiff et al. FIGURE 2 Measurement model. of the hypothesized model with the empirical data, (2) reasonableness of the estimates, and (3) the proportion of variance of the dependent variables accounted for by the exogenous variables. RESULTS AND DISCUSSION Demographic Profile of Respondents This study covered Malaysian consumers in Klang Valley, Malaysia, where 2,014 consumers responded to the survey. The confidence interval and margin of error of this study were 95% and 5%, respectively. In terms of gender, 55.7% were female and 44.3% male. Muslim respondents were 60.5%, 16.5% Buddhist, 14.2% Hindu, and 8.8% were Christian. The majority (38.5%) of the

11 Food Labels Impact Assessment 9 respondents were bachelor s degree holders, while only 5% of them have educational background from primary. Most (58.4%) of the respondents are Malay, 22.8% Chinese, and 18.7% Indian. Most of the respondents are less than 30 years of age, and they mostly (75.7%) reside in urban areas. In general, the respondents seemed to be evenly distributed and almost covered the whole of the Klang Valley area. As required, the study conducted data screening to overcome problems such as sample size and missing data, multivariate normality and absence of outliers, linearity, absence of multi-collinearity and singularity (Tabachnick & Fidell, 2001). STRUCTURAL EQUATION MODELING This section presents the results of the structural equation modeling that addressed the objectives of the study. Validity of the Measure of Food Labeling Figure 2 contains the measurement model of the food labeling attributes in Malaysia that comprised three first-order factors and one second-order factor. Each of these first-order factors was measured by three items; each item except nutrition that has only two items, and this is also permissible according to Kline (2010). Each item of the construct was assumed to load only on its respective dimension. The three factors, namely the halal logo, food ingredients, and nutrition, were expected to load on the secondorder factor, food label. Using the maximum likelihood estimation procedure of the confirmatory factor analysis, the validity of this measurement model was tested first. The results indicated that the hypothesized 9-item measurement model was consistent with the data. The overall fit of the model was adequate; the chi-square is relatively low, RMSEA =.046; CFI =.988; TLI =.981; GFI =.989. In other words, the measurement of food labeling did generate the observed covariance matrix; there was no evidence that the measurement model is incorrect. In addition, the direction and magnitude of factor loadings were substantial and statistically significant, and the model was free from offending estimates (Kolenikov, 2007). The Cronbach s alpha for the first-order factors were.903 (Halal logo),.716 (Ingredient), and.550 (Nutrient). The data also supported the measurement adequacy in terms of their convergent and divergent validity; these are supporting evidence for construct validity of the model. Adequacy of the Causal Structure of the Food Labeling Model Figure 3 summarizes the results of structural equation modeling of food labels and consumers attitude in Malaysia. The structural modeling yielded

12 10 Z. A. Abdul Latiff et al. FIGURE 3 Structural equation model attitude of consumers. consistency of the hypothesized causal relationships with the data (chisquare relatively low, RMSEA =.059; CFI =.918; TLI =.905 and GFI =.927). All other fit indices satisfied their critical cut scores; the results, therefore, indicated a fitting model. The parameter estimates Table 1 of the hypothesized model were free from offending values. All path coefficients of the casual structure were statistically significant at.005 levels and were of practical importance, since the smallest value of the standardized path coefficient was The data indicated food labeling was highly influential on consumers attitudes toward purchasing food. The total standardized effect size of food labeling on consumers purchase behavior was.94. In addition, the analysis revealed that, collectively, the three exogenous variables explained almost 89% of the variability of the consumers purchase behavior. DISCUSSION AND CONCLUSION The findings of the present study have expanded the existing body of knowledge on consumer attitude toward food labeling and consequential effect on purchasing behavior. First, the results substantiated the psychometric adequacy of the measure of food labeling and consumer attitude toward food

13 Food Labels Impact Assessment 11 labeling. The food label measure seems sufficient to represent the ongoing criteria halal logo, nutritive value, and ingredient use by Malaysian consumers to screen food items before buying. Second, the results validated the good fit of the extended Ajzen model on food labeling and purchasing behavior. The results also supported the efficacy of the original theory of planned behavior (Ajzen, 1991), which posits that behavior provides a structure that examines the factors that influence individual behavioral outcomes. In addition, the results are congruent with the results of earlier studies on food labeling (Alam & Sayuti, 2011; Singla, 2010; Coulson, 2000), which found that food labels play a significant role at a customer s first-time purchase of a product. The pattern discovered when consumers are satisfied with information provided on labels of any food items; they are more likely to purchase the items. More importantly, the present study found that purchase behavior of Malaysian consumer does not depend on labeling alone, but also on their attitude toward labeling as well, i.e., their confidence in the constituent element of the label itself. The data indicated that food labeling is highly influential in affecting the purchase behavior of Malaysia consumers. REFERENCES Ajzen, I. (1991), The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50, Alam, S. S, & Sayuti, N. M. (2011). Applying the Theory of Planned Behavior (TPB) in halal food purchasing. International Journal of Commerce and Management, 21, Asian Food Information Centre. (2006). Survey of consumer responses to nutrition information and health claims on packaged food. Available at org/2008/idealsengine/_filesmgr/file/2006%20survey%20of%20consume%20 Response%20to%20Front-of-Pack.pdf Burgmann, T. (2007, July 22). Growing Muslim population pushing companies to produce products they can eat. The Star, online version. Available at www. thestar.com/business/article/ Coulson, N. S. (2000). An application of the stages of change model to consumer use of food labels. British Food Journal, 102, Kline, R. B. (2011). Principles and practice of structural equation modeling (3rd ed.). New York, NY: Guilford Press. Kolenikov, S., & Bollen, K. A. (2007). Testing negative error variances: Is a Heywood case a symptom of misspecification? Available at web.missouri.edu/ kolenikovs/papers/heywood-4.pdf Kreuter, M. W. (1997). Do nutrition label readers eat healthier diets? Behavioural correlates of adults use of food labels. American Journal of Preventive Medicine, 13, Mohd Daud, N., Ramli, L., Jemahadi, N., & Husna Razalli, R. (2011). Examining critical success factors of consumers attitude towards nutritional labelling of

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