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 FOREIGN TRADE UNIVERSITY STUDENTS’ PERCEPTION AND PURCHASE BEHAVIOR” Class: KTEE206(GD1-HK1-2223).1 Instructor: Phạm Thị Cẩm Anh Group: Hanoi, October 2022 TABLE OF CONTENTS 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) is increasing rapidly in all age groups both in urban and rural areas Specifically, the proportion of overweight and obese people in Vietnam has risen from 8.5% in 2010 to 19.0% in 2020, of which 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 nutritionaladjusted food choices and healthier eating habits, both by the media and in academic research, 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 technological advances, companies are now able to generate an almost unlimited number of new nutritionaladjusted 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, their purchase intentions may not always match their claim There are perceived discrepancies between 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 between consumers' 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 becoming increasingly 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 the nutrition 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 LITERATURE REVIEW 2.1 Healthy food categories Food companies now employ a number of terms to describe healthier versions of their products in comparison to more conventional ones These terms often clarify what sets the new option apart from the conventional version, even though the objective is always to imply a potential 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 conventional version), the food is deemed to be "light” ● Food items may also bear the labels "diet" or "zero”, both of which involve food items that have one or more nutrients completely removed, such as salt or sugar However, and more 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 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% of the 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 exists between 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 in the 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 normal functions 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 or modifying 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 or health-related condition Risk reduction means significantly altering a major risk factor(s) for a disease or health-related condition Diseases have multiple risk factors and altering one of these risk factors may or may not have a beneficial effect The presentation of risk reduction claims must ensure, for example, by use of appropriate language and reference to other risk factors, that consumers not interpret them as prevention claims Examples: “A healthful diet low in nutrient or substance A may reduce the risk of disease D Food X is low in nutrient or substance A.” “A healthful diet rich in nutrient or substance A may reduce the risk of disease D Food X is high in nutrients 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 and sufficient body of scientific evidence to substantiate the claim, provide truthful and nonmisleading information to aid consumers in choosing healthful diets and be supported by specific consumer education The impact of health claims on consumers’ eating behaviors and dietary patterns 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 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 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 nutrition and health claims might be beneficial In addition, accurate nutritional information on the product 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, even though 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, difficulty interpreting 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 they really are due to the "health halo" effect For instance, low-fat content nutrition labels encourage customers 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 & physical health 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 Vietnamese consumers consider the nutritional value as well as the health benefits of food and drink to be the most important factors when choosing a product In addition, a large part of consumers of Generation Z and Y also said that they value transparency about the origin of food when viewing the list of main ingredients Although health and nutrition claims were not included, this supports the 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 and health 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 that nutrition 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 10 wrong format These situations need to be excluded when analyzing the data Moreover, regarding open-ended data, responses will be coded into categories Descriptive analysis is used to reveal the statistical details about the collected answers Data collected by the instruments will be edited, coded and analyzed descriptively using measures of central tendency and dispersion This aims to establish frequencies, patterns, and relationships among variables of the study Via this kind of analysis, the research can find the most common feature which nutrition and health claims affect the majority The final findings are presented in form of percentages and tables In terms of the different impact of nutrition and health claims among different groups of respondents based on characteristics of background such as gender, study time, religion or monthly income, group comparison is used with ranked data and numerical data This helps to come up with clear insight into the relation among groups of students and the effects of health claims 17 LIMITATIONS OF THE STUDY During the process of doing study, some certain limitations still exist: The survey of research is conducted under online and offline form With offline form, the sample is chosen randomly from students commuting in the Foreign Trade University campus so that it ensures the quality and the representation of the research However, with online form, the questionnaire is shared via social media platform Facebook, which can be accessed to the friends lists of researchers Hence, the online survey is conducted with a convenient sampling method so that the results are not representative Research statistics become not fully reliable In addition, to stimulate the interest of respondents to the survey, small gifts are offered after the completion of the questionnaire However, this can result in negative consequences if participants respond quickly without considering their real cases, which causes flaws in the collected data Moreover, research is only aimed at Foreign Trade University students so that the ability to generalize the findings is not so high 18 CONTRIBUTION OF THE STUDY It is evident that Vietnamese consumers are worried about their health, psychological reactions to climate change, pollution of the environment, diseases, and food safety In addition, the rising prevalence of overweight and obesity in Southeast Asia has led to significant changes in people's eating patterns and ways of thinking They move to the trend of green living and "healthy" living, giving up the lifestyle of binge eating, snacking, being sedentary, and dependence on electronics It is interesting to note, though, that very little research has been done to look at the health claims that are becoming prevalent in the modern world Studies and reports, if any, are frequently oriented toward consumers as a whole and focus on food consumption trends or factors affecting Vietnamese people's decisions to purchase some specific food categories Our team found this to be a significant gap in the literature, which was also one of the key drivers behind this study Therefore ● Our research is anticipated to establish the groundwork for more in-depth investigations into the effects of health-related claims on consumer purchasing behavior by concentrating on the influence of health and nutrition claims on young people - Foreign Trade University students ● Apart from that, we hope to provide more insights to today’s marketer to make their products more appealing to consumers in the context of increasing consumer health awareness 19 10 SCOPE OF THE STUDY With the increasing number of products with strategic packaging that have numerous health and nutrition claims, and with consumers becoming more conscious of their health than ever, there has been increasing concern whether these claims have a considerable impact on the consumers’ purchase intentions or not However, not much research is done about the impact on university students In view of the situation, our group will conduct a survey to find out if it is true and to find out other factors affecting purchase choices as well Due to limited time and resources, the sample size will be restricted within students studying at Foreign Trade University, from first year to fourth year Although the sample size is not large enough to generalize the whole population, we hope to catch a general view of young people and especially university students’ perceptions on health claims The survey period will last for approximately 20 days and will end either when enough data is collected, or 20 days have passed Each student will be asked to fill in a questionnaire either on paper or on Google Forms 20 11 RESEARCH ETHICS In order to ensure a high ethical standard while conducting research, the following ethical principles our research will follow are: ● Informed consent: All potential participants will receive and understand all the information they need to decide whether they want to participate This includes information about study, the risks, and benefits of taking part, and how long the study will take Their confidentiality will be ensured, and they are free to stop doing the survey at any point for any reason ● Confidentiality: All participants have a right to privacy, and we will protect their personal data as long as we store or use it ● Results communication: o No plagiarism: All sources of information used to make this research will be credited properly o No research misconduct: All the data collected will be presented as it is Under no circumstances will we make up, falsify any data, or manipulate data analyses and misrepresent results in research reports 21 12 PLANS TO MINIMIZE INTERNAL AND EXTERNAL THREATS The process of collecting data can face some internal and external threats which can affect the answers of respondents Some measures need to be planned to avoid the influence of internal and external threats to ensure the validity of the findings In terms of the offline survey, it is necessary to prevent social interaction among participants in the survey Each respondent is required to complete the questionnaire in a separate place so that they cannot discuss the questions, which can affect the answers of the questionnaire Since maybe in their communication, their original opinion regarding nutrition and health claims can be changed Moreover, when respondents fill in the questionnaire, they should not be monitored so that they feel the most comfortable in finishing the survey This is to avoid Hawthorne effects, which is used to describe a change in the behavior of an individual that results from their awareness of being observed Maybe they will be more aware of their health just only in the questionnaire while it is not true in their real life They are also allowed to be anonymous when filing information so that they can express their true opinions without being judged 22 13 PROJECT TIMELINE Estimated Start End Duration Date Date days 01/10/22 02/10/22 Develop research design days 03/10/22 04/10/22 Write research proposal days 05/10/22 10/10/22 days 04/10/22 06/10/22 Prepare draft literature review days 07/10/22 08/10/22 Finalize sampling plan day 07/10/22 07/10/22 days 08/10/22 08/10/22 days 12/10/22 13/10/22 Carry out data collection 20 days 15/10/22 04/11/22 Write up data collection days 05/11/22 10/11/22 Prepare data for analysis days 11/11/22 13/11/22 Analyze data 10 days 13/11/22 22/11/22 days 23/11/22 25/11/22 Stage Activity Identify research problem/ questions Research design and planning Search, capture and synthesize Literature review relevant literature Develop data collection instrument (questionnaire) Data collection Data analysis Pre-test/pilot data collection instrument Draw conclusions/ recommendations 23 Final draft of application days 26/11/22 30/11/22 Review draft days 01/12/22 04/12/22 Final editing 15 days 05/12/22 19/12/22 Submit to supervisor days 20/12/22 20/12/22 Writing up 24 14 APPENDIX 14.1 Questionnaire Survey about the impact of nutrition and health claims on Foreign Trade University student perception and purchase behaviors Question 1: What is your gender A Male B Female C Other Question 2: What is your age A 18 B 19 C 20 D 21 E Over 21 Question 3: What is your religion A Buddhism B Catholicism C Muslim D No E Other: … Question 4: What is your monthly income A No B Under million C 1-2 million D 2-3 million E More than million Question 5: Please rank from (totally unimportant) to (very important) the level of importance you give to the diet 25 Question 6: Please rank from (totally unimportant) to (very important) the level of importance of each aspect you consider when choosing food products Taste Brand name Price Ingredient lists Nutrition and health claims Package design Availability at store Question 7: Are there any other factors you often consider when choosing food products? ………………………………………………………………………………………………… Question 8: Do you often read food product labels? A Yes B No Question 9: If your answer is No in the previous question, why? (You can choose more than one answer for this question) A So much information B Many terminology C Others: ……………………………… Question 10: Do you have any physical conditions that force you to eat healthier? (For example: diabetes, high cholesterol, allergy, …) A Yes B No 26 Question 11: Do you often physical activity? A Yes B No Question 12: Do you think your social environment (family, friends, neighbors, ) especially pays attention to food and nutrition? A Yes B No Question 13: Do you have a habit of trying new food products? A Yes B No Question 14: Most of your meals are made at home or ready-made food? A Made at home B Ready-made food (from cafeteria, restaurants, supermarket, ) Question 15: Do you often choose traditional food products or healthy categories of food products? A Traditional food products B Healthy food products Question 16: If you choose healthy categories of food products (light/zero/whole food, organic food, functional food), where you often buy them? A Supermarket B Specialized stores Question 17: Do you see the increase of healthier food products in the market? A Yes B No Question 18: Which kinds of food products you take nutrition and health claims into account? A Milk and milk products (cheese, yogurt, …) B Cereal and starchy products (rice, noodles, cookies, ) C Fats and oils (butter, olive oil, cream, ) D No, I don’t care about claims about nutrition and health Question 19: Are you ready to pay more for healthier alternatives? A Yes 27 B No Question 20: Compare characteristics of healthy alternatives with traditional version: Healthy alternatives Traditional version Lower price Higher price Less delicious More delicious Less available in stores Always available in stores Poorer nutritional composition Higher nutritional composition 28 15 REFERENCE ● Ali, T., Alam, A and Ali, J (2018) Factors Affecting Consumers’ Purchase Behavior for Health and Wellness Food Products in an Emerging Market Global Business Review Available at: https://journals.sagepub.com/doi/full/10.1177/0972150918795368 ● Bhandari, P (2022) Ethical considerations in research: Types & examples, Scribbr Available at: https://www.scribbr.com/methodology/research-ethics/ (Accessed: October 9, 2022) ● Burton, S., Andrews, J C., & Netemeyer, R G (2000) Nutrition Ad Claims and Disclosures: Interaction and Mediation Effects for Consumer Evaluations of the Brand and the Ad Marketing Letters, 11(3), 235–247 ● Mackison, D., Wrieden, W L., & Anderson, A S (2010) Validity and reliability testing of a short questionnaire developed to assess consumers’ use, understanding and perception of food labels European Journal Of Clinical Nutrition, 64(2), 210-217 ● Williams, P (2005) Consumer Understanding and Use of Health Claims for Foods Nutrition Review, 63(7), 256–264 ● Nocella, G., & Kennedy, O (2012) Food health claims – What consumers understand Food Policy, 37(5), 571–580 ● Bos, C., Lans, I A Van Der, Rijnsoever, F J Van, & Trijp, H C M Van (2013) Understanding consumer acceptance of intervention strategies for healthy food choices: a qualitative study BMC Public Health, 2013 Nov 13;13:1073, 1-14 ● Paul G, Ink S, Geiger C The Quaker oats health claim J Nutraceuticals Funct Med Foods 1999;1:5–32 ● Williams P Consumer understanding and use of health claims for foods Nutr Rev 2005;63:256–264 ● Wansink B, Chandon P Can "low-fat" nutrition labels lead to obesity? 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The World of Organic Agriculture - Statistics and Emerging Trends 2007 International Federation of Organic Agriculture Movements IFOAM, Bonn, Germany & Research Institute of Organic, chapter 3, pp 9-16 ● European Court of Auditors annual report 2012: https://www.eca.europa.eu/en/Pages/AR_2012.aspx 31 ... general health knowledge and the impact of nutrition claims on them RESEARCH QUESTIONS Our work aims to contribute to the process of making students more aware of health and nutrition claims on products, ... does the appearance frequency of health and nutrition claims affect the choice of consumers And to what degree health and nutrition claims have an impact on consumers’ purchase intentions? Are other... safety, health claims and nutrition values important when students consider buying a food product? ● Health and nutrition claims: Are the products with health and nutrition claims truly healthy and