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

THE CONSUMER INFORMATION OVERLOAD CONTROVERSY AND PUBLIC POLICY

It is widely believed that providing consumers with more product information produces "overload" and leads to confusion and poorer quality consumer decisions. The existence of a consumer information overload phenomenon has been used by marketers and others to argue against regulations and legislation mandating additional consumer information provision. The belief that a consumer information overload phenomenon exists is based largely on misinterpretations of research findings. The present paper reviews the consumer information overload research literature and concludes that existing research data support the contention that provision of more information, rather than producing overload, actually improves consumer decision making. Implications of the information overload research controversy for consumer policy makers are discussed. Copyright 1983 by The Policy Studies Organization.