A theoretical and empirical investigation of nutritional label use

Due in part to increasing diet-related health problems caused, among others, by obesity, nutritional labelling has been considered important, mainly because it can provide consumers with information that can be used to make informed and healthier food choices. Several studies have focused on the empirical perspective of nutritional label use. None of these studies, however, have focused on developing a theoretical economic model that would adequately describe nutritional label use based on a utility theoretic framework. We attempt to fill this void by developing a simple theoretical model of nutritional label use, incorporating the time a consumer spends reading labels as part of the food choice process. The demand equations of the model are then empirically tested. Results suggest the significant role of several variables that flow directly from the model which, to our knowledge, have not been used in any previous empirical work

Corporate negative publicity – the role of cause related marketing

This paper examines the effects of cause-related marketing (CrM) strategies on consumers' moral judgement and purchase behaviour in the context of experiencing substantial corporate negative publicity. Data for the study were collected from 343 respondents through mall intercept technique from two large shopping malls of Australia. Quasi-experimental design technique was adopted for the study, where the participants chose one particular cause out of two (ongoing conventional cause vs sudden disaster due to garment factory collapse in Bangladesh). The findings revealed that 56% of the respondents supported the sudden cause and are willing to pay (WTP) more for the betterment of the garment workers' living condition. The findings further indicated that CrM variables such as cause–brand fit, cause familiarity and cause importance influence consumers' moral judgement towards the CrM campaigns, which eventually influence them to pay additional money for the product. The multi-group moderation and mediation tests offer interesting theoretical and managerial insights