the impact of products with nutrition and health claims on foreign trade university students’ perception and purchase behavior

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMIC AND INTERNATIONAL BUSINESS ---***---FINAL REPORT Module: Research Methodology “THE IMPACT OF PRODUCTS WITH NUTRITION AND HEALTH CLAIMS ON FORE

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMIC AND INTERNATIONAL BUSINESS

-*** -FINAL REPORT Module: Research Methodology

“THE IMPACT OF PRODUCTS WITH NUTRITION AND HEALTH CLAIMS ON FOREIGN TRADE UNIVERSITY STUDENTS’ PERCEPTION AND PURCHASE

BEHAVIOR”

Instructor: Phạm Thị Cẩm Anh Group:

Hanoi, October 2022

TABLE OF CONTENTS

2.3 Consumers’ perceptions toward health and nutrition claims 8

7.4 Data analysis method 16

1 INTRODUCTION

Despite the rapid development of today’s world, many consumers are confronting health

risks as a result of an increasingly sedentary lifestyle and a nutritionally poorer diet (Shields & Tremblay, 2008) Excess weight, specifically, is becoming a serious public health concern,

threatening to disrupt the quality of life for millions of people In fact, a dramatic increase in the

number of overweight and obese people has been recorded in recent decades (Hanson & Yun, 2018) Between 1975 and 2016, worldwide obesity nearly tripled, with over 1.9 billion adults,

approximately 41 million children under the age of five, and more than 340 million adolescents

being overweight or obese (World Health Organization, 2018).

In Vietnam, the prevalence of overweight/obesity (closely related to diet and lifestyle) isincreasing rapidly in all age groups both in urban and rural areas Specifically, the proportion ofoverweight and obese people in Vietnam has risen from 8.5% in 2010 to 19.0% in 2020, ofwhich urban areas make up 26.8%, rural areas constitute 18,3% and mountainous areas account

for 6.9% (National Institute of Nutrition (Ministry of Public Health).

Under such circumstances, emphasis has been put on the significance of more adjusted food choices and healthier eating habits, both by the media and in academic research,

nutritional-specifically in relation to food choice variables (Saba et al., 2010) Innovation in the global food

and beverage market is constantly being prompted by health concerns With technologicaladvances, companies are now able to generate an almost unlimited number of new nutritional-

adjusted food concepts, such as sweeteners and light, fortified, and functional items (Saba et al., 2010) Resultantly, there was an increase in visibility and public awareness of healthy eating,

which, in addition to the prevalence of obesity, urges the food industry to reformulate and

advertise items as healthier choices (Menrad, 2003).

However, regardless of consumers’ high assessments of these healthy alternatives, theirpurchase intentions may not always match their claim There are perceived discrepanciesbetween additional components (for example, fiber) and reduced ingredients (for example,

sugar), with the former being more highly appreciated than the latter (Hanson & Yun, 2018) The

negative inferences made about these foods' attributes can explain the apparent disparity betweenconsumers' positive attitudes toward these products and their purchase intentions, such as less

pleasant taste compared to the original product, higher prices and lower availability (Loebnitz & Grunert, 2018).

The motivation for this research topic stems from the fact that healthy eating is becomingincreasingly popular globally In Vietnam, the medical food industry is growing day by day due

to the improvement of living standards The medical foods segment is the leading sector of thenutrition market In 2019, consumption of dairy products was one of the main growth drivers for

products in the Vietnamese market Ranked second is the functional beverage segment (Vietnam Credit, 2021) A report published by The Conference Board Global Consumer Confidence and

Nielsen in 2019 shows that Vietnamese consumers’ primary concern is about healthcare In

1995, per capita health expenditure in Vietnam was 20 USD This figure skyrocketed to $168.99

in 2016, exceeding Indonesia, the Philippines and Myanmar

2 LITERATURE REVIEW

2.1 Healthy food categories

Food companies now employ a number of terms to describe healthier versions of theirproducts in comparison to more conventional ones These terms often clarify what sets the newoption apart from the conventional version, even though the objective is always to imply apotential health benefit associated with the addition or reduction of a certain nutrient

2.1.1 Diet/ zero/ light/ whole foods

● When a nutrient is reduced by at least 25% from the reference product (the conventionalversion), the food is deemed to be "light”

● Food items may also bear the labels "diet" or "zero”, both of which involve food itemsthat have one or more nutrients completely removed, such as salt or sugar However, andmore often in these variants, other less healthy elements, such fat, might be increased to

prevent the loss of flavor in comparison to the original (Gravel, Doucet, Herman, Pomerleau, & Bourlaud, 2012)

● The terms "lean" and "whole" are also applied, with the former referring to food items

containing a fat or sugar composition of no more than 5 grams per 100 milliliters/grams.The latter describes foods that fully utilize the grain, i.e., foods that are industrialized, yet

still retain all of their qualities and nutrients (Gravel, Doucet, Herman, Pomerleau, & Bourlaud, 2012).

2.1.2 Functional foods

The last two decades have seen a significant advance in people’s understanding of the impact of diet on health and wellbeing This has prompted the development of new, healthier foods that lower the chance of developing some chronic diseases Such foods are termed “functional

foods”, which are dietary items claimed to have an additional health function by adding new ingredients or more of existing ingredients Food is considered functional, according to a widely accepted definition, if “it has been satisfactorily demonstrated to beneficially affect one or more functions in the body, beyond the appropriate nutritional effects, in a way that is relevant to

improved health status and well-being and/or a reduction in disease risk” (Aschemann-Witzel et al., 2013, p 68)

The development of functional foods has been influenced by a number of factors, including apparent demographic changes, an aging population, food safety concerns, the disappearance of traditional food cultures, awareness of declining personal health due to busy lifestyles, poor

convenience food options, and a competitive food market (German, Schiffrin, Reniero, Mollet, & Pfeifer, 1999) Additionally, insufficient exercise, increased self-medication, increased health

authority information, nutritional information, the connection between diet and health, and

technological advancements in nutrition research have all contributed to its emergence (German

et al., 1999)

2.1.3 Organic foods

Organic food is produced through a farm management and food production system that

prioritizes environmental protection, animal welfare, and prevents pesticide contamination (Lee

& Yun, 2016) There has been an increase in demand for regional, sustainable, and organic food production (Stagl, 2002)

Organic farming is one of the agricultural sectors with the fastest growth rates globally

Furthermore, it has the tendency to enhance biodiversity and sustainability in rural communities

The organic market, which occupies an average of 5% of the European Union’s territory (Helga

& Yussefi, 2007), is largest in Italy, followed by Germany and the United Kingdom Over the

past 20 years, the organic food market has grown at an average annual pace of 10% The organic food business in Europe is currently projected to be worth 20 billion euros per annum, or 1.5% ofthe entire food market However, because the production rate for organic goods is far lower than the demand, there is a very high importation rate throughout Europe (particularly for fruits and vegetables) Manufacturers in third world countries see this rising need for organic products as a

great business prospect (European Court of Auditors, 2012).

2.2 Types of claims on food products

According to CAC/GL 23-1997 - Guidelines for Use of Nutrition and Health Claims:

2.2.1 Health claims

“Health claim means any representation that states, suggests, or implies that a relationship existsbetween a food or a constituent of that food and health Health claims include the following:

● Nutrient function claims – a nutrition claim that describes the physiological role of the

nutrient in growth, development, and normal functions of the body

Example: “Nutrient A (naming a physiological role of nutrient A in the body inthe maintenance of health and promotion of normal growth and development).Food X is a source of/ high in nutrient A.”

● Other function claims – These claims concern specific beneficial effects of the

consumption of foods or their constituents, in the context of the total diet on normalfunctions or biological activities of the body Such claims relate to a positive contribution

to health or to the improvement of a function or to modifying or preserving health

Examples: “Substance A (naming the effect of substance A on improving ormodifying a physiological function or biological activity associated with health).Food Y contains x grams of substance A.”

● Reduction of disease risk claims – Claims relating the consumption of a food or food

constituent, in the context of the total diet, to the reduced risk of developing a disease orhealth-related condition Risk reduction means significantly altering a major riskfactor(s) for a disease or health-related condition Diseases have multiple risk factors andaltering one of these risk factors may or may not have a beneficial effect Thepresentation of risk reduction claims must ensure, for example, by use of appropriatelanguage and reference to other risk factors, that consumers do not interpret them asprevention claims

Examples: “A healthful diet low in nutrient or substance A may reduce the risk ofdisease D Food X is low in nutrient or substance A.” “A healthful diet rich innutrient or substance A may reduce the risk of disease D Food X is high innutrients or substance A.”

“Health claims should be consistent with national health policy, including nutrition policy,and support such policies where applicable Health claims should be supported by a sound andsufficient body of scientific evidence to substantiate the claim, provide truthful and non-misleading information to aid consumers in choosing healthful diets and be supported by specificconsumer education The impact of health claims on consumers’ eating behaviors and dietarypatterns should be monitored, in general, by competent authorities.”

2.2.2 Nutrition claim

“Nutrition claim means any representation which states, suggests or implies that a food has

particular nutritional properties including but not limited to the energy value and to the content

of protein, fat and carbohydrates, as well as the content of vitamins and minerals Nutrientcontent claim is a nutrition claim that describes the level of a nutrient contained in a food (Examples: “source of calcium”; “high in fibre and low in fat”.)”

● Nutrient content claim is a nutrition claim that describes the level of a nutrient

contained in a food (Examples: “source of calcium”; “high in fibre and low in fat”.)

● Nutrient comparative claim is a claim that compares the nutrient levels and/or energy

value of two or more foods (Examples: “reduced”; “less than”; “fewer”; “increased”;

“more than”.)

• Non-addition claim means any claim that an ingredient has not been added to a food,

either directly or indirectly The ingredient is one whose presence or addition is permitted

in the food and which consumers would normally expect to find in the food

“Nutrition claims should be consistent with national nutrition policy and support that policy.Only nutrition claims that support national nutrition policy should be allowed.”

2.3 Consumers’ perceptions toward health and nutrition claims

Health is an important factor to take into account when choosing a purchase, and nutritionand health claims might be beneficial In addition, accurate nutritional information on theproduct label creates a more favorable impression According to a study, consumers' propensity

to overgeneralize the claim's health impact by considering the product to be healthy overall, eventhough it has only highlighted one specific component, is a factor that influences their favorable

opinion of a certain product (Burton, Andrews, & Netemeyer, 2000).

While many consumers claim to read and comprehend food labels, research by the

European Heart Network in 2003 revealed that their real comprehension is restricted (Mackison, Wreiden, and Anderson, 2010, p.1) When asked to perform mathematical computations to

compare various serving sizes and nutrient data, they frequently struggle the most Additionally,the presence of too much information on the package, unfamiliar terminology, difficultyinterpreting the meaning of nutrients, and the relationships between calories and energy can get

consumers into trouble analyzing nutritional information (Williams, 2005) When consumers are

presented with benefits and substances they have never heard of before, it can potentially have a

negative effect (Williams, 2005)

There is also a risk that food items bearing health claims might appear healthier than theyreally are due to the "health halo" effect For instance, low-fat content nutrition labels encouragecustomers to eat more of certain foods since they change how much is appropriate to eat, which

could result in overeating and lower perceived energy intake (Derby & Levy, 2005)

What is the case in Vietnam at the moment?

Recently, the research “Helping Brands Tap into Vietnam’s Changing Eating Habits”

showed a lot of interesting results In particular, Vero and Decision Lab (2022) tracked social

media discussions and news on the topic of the relationship between food and mental & physicalhealth over a four-year period from 2018–2022, and surveyed 828 consumers in Vietnam based

on a set of 31 questions of the related topic The study reveals that more than 27% of Vietnameseconsumers consider the nutritional value as well as the health benefits of food and drink to be themost important factors when choosing a product In addition, a large part of consumers ofGeneration Z and Y also said that they value transparency about the origin of food when viewingthe list of main ingredients Although health and nutrition claims were not included, this supportsthe idea that such health-related claims can have a positive impact on Vietnamese consumers’perception when it comes to purchasing food products due to the higher health awareness,especially with the younger generation

2.4 Health- related claims and purchase decision

Study results are quite various regarding whether nutrition and health claims on food lead

to positive consumer evaluations or purchase intentions

On the one hand, there were researches showing that nutrition and health claims can cause

consumers to have negative opinions of products and have fewer plans to buy them (Bialkova, Sasse, & Fenko,2016; Aschemann-Witzel & Grunert,2015; Maubach, Hoek, & Mather,2014; Lähteenmäki,2013; Kiesel & Villas-Boas, 2013; Berning, Chouinard, & 22 McCluskey, 2011).

It is also noteworthy that the decision to buy can be influenced by a variety of factors,

including preferences, brands, prices, product attractiveness, and buying patterns (Nocella &

Kennedy, 2012) While each of the mentioned factors influences a consumer's decision to buy a

product in some way, taste and price have the biggest effects on whether or not they decide to

buy food products (Nocella & Kennedy, 2012) Additionally, there are personal determinants of

consumers’ purchase decisions, such as current health conditions or level of concern about future

health (Bos, Lans, Rijnsoever, & Trijp, 2013) Regarding external factors, consumers’ social and

cultural interactions can greatly impact consumers’ purchase intentions (Stel & van Koningsbruggen, 2015) Specifically, family members, friends, and colleagues, and those who

interact with consumers, can affect consumers’ choices Consumers may also adopt healthy

eating habits if they are surrounded by a healthy eating social environment (McGee et al., 2008)

However, there is a plethora of research using various methods that describes nutrition andhealth claims as highly effective marketing strategies that increase consumers’ purchase and

boost sales Paul G, Ink S, Geiger C (1999) observed the sales before and after an introduction of

a health-related claim on the product and showed that when a health claim was put to the

packaging of The Quaker's breakfast oats, sales increased Williams (2005) did a systematic

review on how consumers comprehend and use health claims and discovered some evidence that

suggests claims could enhance the caliber of dietary options Wansink and Chandon (2006)

developed and tested a framework that showed low-fat nutrition labels could make participants

eat more of a snack food In another study of Kaur, Scarborough, & Rayner (2016), the authors

conducted several researches mostly in artificial settings before coming to the conclusion thatnutrition and health claims had a positive effect on preferences and purchase behavior

In recent years, data gathered has revealed a significant rise in consumer health

consciousness generally, especially with the younger generation The Nielsen's Global Health and Wellness Survey offers compelling statistical evidence that of 30,000 customers in 60

nations, younger consumers are much more concerned than their parents and grandparents are

about everything from food ingredients to genetically modified food to organic foods Youngmillennials who participated in the poll indicated that 41% of them would spend more money on

a product if it was healthier According to research, using health claims on product packagingcan be effective at catching the attention of these consumers

A Japanese study of M.Hirogaki in 2013 examined the influences on Japanese consumers'

preferences for tea beverages with health benefits by surveying 265 Japanese university studentsfrom 18 to 25 in a choice-based conjoint (CBC) experiment to determine the key factors thatinfluence their consumer behavior and calculate whether various health claims increase aproduct’s value The findings revealed a positive relationship between product health claims andbuying behavior In particular, health claims have a positive and considerable impact onJapanese consumers aged 18 to 25 who buy functional drinks

Two researches above were the foundation for some of the hypotheses for the researchstudy at hand Our team also uses quantitative methods to collect data with the use ofquestionnaires, but the current study will strictly focus on part of young Vietnamese consumers -students in Foreign Trade University

3 RESEARCH PURPOSE

This study helps in identifying and understanding factors that affect Foreign TradeUniversity student’s purchase decisions while considering health and wellness food products

It can also help the marketers of healthy food products to:

● develop more effective marketing strategies in terms of product characteristics, marketattributes and psychographic variables

● formulate optimal strategies to educate the consumers and encourage improvement ineating habits of the consumers by incorporating healthier options in their food baskets

● design and develop newer and healthier food products and can guide them to properlysegment their markets in terms of choice of where and how to market these productsThis study also provides regulatory authorities with insights for ensuring safe food delivery

in the market and fostering healthy competition among market players in the health and wellnessfood industry Policymakers must also ensure the authenticity of health claims made by healthand wellness food producers by strengthening existing regulations

4 RESEARCH OBJECTIVES

Together with increasing awareness about the health of individuals, this research aims toidentify consumer perceptions (young people in general, and Foreign Trade University studentsspecifically) towards food products with nutrition and health claims on food packaging Theinfluence of these perceptions on purchase decisions is also studied in this research paper.Students at Foreign Trade University were asked to participate in a study via questionnaires tomeasure their general health knowledge and the impact of nutrition claims on them

5 RESEARCH QUESTIONS

Our work aims to contribute to the process of making students more aware of health andnutrition claims on products, as well as providing some insights to product designers to maketheir products more appealing to consumers Our central research question will be organized toinvestigate three areas:

● Consumers’ perception and behaviors (especially college students): Are safety, healthclaims and nutrition values important when students consider buying a food product?

● Health and nutrition claims: Are the products with health and nutrition claims trulyhealthy and nutritious or does the appearance frequency of health and nutrition claimsaffect the choice of consumers And to what degree do health and nutrition claims have

an impact on consumers’ purchase intentions? Are other factors as important as, or evenmore important than health claims?

● Healthy food product marketers’ choice when designing the packaging of their product: Ifthe health and nutrition claims truly plays an important role in influencing consumers’purchase behaviors, in what way and to what extent should the marketers deliver theclaims to the consumers? If not, what can be done instead to make a healthy food productmore appealing to consumers?

6 RESEARCH HYPOTHESES

Based on the research questions and literature review, the following hypotheses are formed:

● The first hypothesis (H1) is that if health and nutrition claims are an important factoraffecting consumers’ perceptions on products and shopping behaviors, then we willobserve the health and nutrition claims having a high ranking among the factors affectingcustomers’ buying decisions meaning they

● The second hypothesis (H2) predicts that health and nutrition claims have a strong impact

on buyers’ attitude and purchase behaviors just as other factors

● The third hypothesis (H3) is that the more promising health claims are presented and themore frequently they appear on a product, the more likely it is for consumers to noticeand buy it than others without

7 METHODOLOGY

7.1 Data collection method

This research uses quantitative methods to understand deeper about perception andpurchase behaviors of consumers, which employs primary data collection methods First-handinformation is collected via the completion of questionnaires both online and offline.Quantitative questionnaire consists of multiple-choice questions and Likert 5-point scale to knowthe attitude of the respondents regarding the importance of health and the effects of healthclaims Questionnaire helps it become possible to receive reliable data which can be generalized

to a larger population and also prevents distortions in interpreting analysis (Brace, 2008)

To understand the Foreign Trade University students’ perceptions towards products withnutrition and health claims, they are required to fill in a questionnaire to identify theirbackground and perception of healthier alternatives The questionnaire is preceded with a briefintroduction explaining the context and purpose of the questionnaire so that they know the aimtheir answers used for This also hopes to arouse the interest of respondents before coming intodetailed questions below

At first, the respondents are asked questions about their background such as their gender,age, religion and monthly income This part contains only multiple-choice questions with aim tosegment respondents into different groups since according to the literature review, consumer

behaviors change differently when it comes to gender (Satia, Neuhouser and Galanko, 2005), age (Campos, Hammond and Doxey, 2011) and maybe other characteristics of background.

In the next part of the questionnaire, some questions are given to measure the awarenessand care of Foreign Trade University students about food and health as well as consider somecriterias they choose for food products These questions use a 5-point Likert scale to assess thelevel of care students have, in which number 1 shows that respondents consider the given objectstotally unimportant, and number 5 shows that they evaluate very important for those objects.Moreover, in terms of what is often valued when they purchase foods, a list of factors is givensuch as taste, price or availability, which also use a 5-point Likert scale to measure theimportance level of each factor to purchase decisions, including nutrition and health claims onpackaging There is also an optional question for respondents to fill in if there are other factorsaffecting their purchase choice

Additionally, respondents are required to answer information related to the frequency ofreading food products label If they don’t often read food labels, the next question aims toexamine the reasons behind this with some certain given causes and an open answer which givesrespondents a chance to fill in other reasons if they have Furthermore, participants in the surveyare asked whether or not they have any physical conditions mandatory for a healthy diet Thenext questions also collect data about their habits regarding health care, which can accuratelydetermine the level of importance they consider for their health

Regarding healthy alternatives, respondents are then asked about some information relating

to this kind of food products such as the place to buy, particular foods they choose, … Besideshealthier foods with nutrition and health claims, there are also traditional food on the market withoriginal amounts of ingredients and nutrition, which sometimes contain high fat or sugar -pointLikert Scale is applied again to compare the attitude and judgment of respondents on two kinds

of food products Via this comparison, it is easy to see the tendency of choosing food products ofparticipants in this survey

7.2 Sampling method

In terms of online form, the survey is created on Google Forms, a specialized platformabout making questionnaires The sample is chosen by a non-probability convenience samplemethod, the questionnaire is shared on social media such as Facebook or Instagram, gettingaccess with the number of Foreign Trade University students in friend lists of researchers.Moreover, thanks to snowball sampling, more people are supposed to get involved in thisresearch through the introduction of acquaintances A small gift will be sent through therespondents’ emails after completing the survey so that they will have more motivation to fill thequestionnaire

Regarding the offline survey, the content of the questionnaire is printed in hard copy Thesample is chosen by a simple random sampling method A number of students who commute inForeign Trade University campus will be chosen randomly to fill in the questionnaire A smallgift can be given to stimulate the interest of respondents to the survey and attract more answersfrom students in Foreign Trade University

7.3 Pre-test