Food Standards Agency Traffic Light System

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UK consumers’ intentions to purchase healthy food products, using the Food Standards Agency Traffic Light System, compared to the Guideline Daily Amounts (GDA) system.

Gurpreet Gahunia

Bsc (Honours) Food Marketing and Business Economics

Year 3 Undergraduate Finalist

The University of Reading

Individual Project Report, April 2008

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Abstract

WRITE AT THE END OF THE PROJECT- GIVE AN OVEVIEW OF WHAT I HAVE LEARNT AND WHA THE STUDY SHOWS!!

This dissertation investigates UK consumers’ intentions to purchase healthy food products, using the Food Standards Agency (FSA) Traffic Light System (TLS), in relation to Icek Aizen’s Theory of Planned Behaviour.

It is an investigation into the implications the Traffic Light labelling System (TLS) has on consumers when making decisions about food. Does the system aid consumers in making healthier choices? I will concentrate on the theory of Consumer Behaviour.

The main aim of the dissertation is to identify consumers’ perception of the TLS when making informed choices about food products and to investigate what social and economic implications this may have in the UK.

The broad aim highlights the importance of consumers’ awareness of the TLS and how they use it in order to make healthy choices at the point of purchase. It is also important to see the significance this will have on the UK public as a whole, and what social and economic factors arise from the application of the TLS.

This topic area was chosen as a great deal of media attention about healthy eating, obesity scares and the importance of nutritional information on food products is apparent. Although the TLS is a fairly new concept, it has been recognised immensely and is fast becoming an eminent label on most food products with major supermarkets such as Sainsburys, Asda, Marks and Spencer’s and the Co-op all participating in the TLS.

Contents

1.0 Introduction

1.1 Definition of Food Labelling and Signposting

1.2 Aim

1.3 Hypothesis

1.4 Objectives

1.5 Overview of methods

2.0 Background

2.1 Significance of TLS and GDA

2.2 Literature Review

3.0 The psychology of food choice?

        3.1 Theory of Consumer behaviour

                3.1.1 Decision Making Process

        3.2 Economics

                3.2.1 Supply and Demand of Food Labels

3.2.2 Engel’s Law

3.2.3 Social Costs of unhealthy eating

        3.3 Advertising / Marketing of Food Labels

                3.3.1 Borden’s Marketing Mix

4.0 Methodology

4.1 Focus Group

        4.1.0 Results of Focus Group

                4.1.1 The Shopping behaviour of Consumers

                4.1.2 Perceptions of the labelling systems

                4.1.3 The increase of healthy eating and lifestyle in the UK

                4.1.4 Understanding the information

                4.1.5 Expansion of labelling systems

4.2 Questionnaire

        4.2.0 Results

4.2.1 Regression analysis- SPS- using qnaire results conduct sps analysis!

        

4.3 Interview

        4.3.0 Results

5.0 Solutions for the Future for TLS and the GDA?- older consumer & visually impaired ppl

7.0 Conclusion

8.0 Limitations/ further research???????????????????

9.0 References/ Bibliography

10.0 Appendix- stats

- OLDER CONSUMER!!!!!!

- have first pages numbered i, ii, iii, iv etc and the rest normal

http://www.google.co.uk/search?hl=en&q=food+labels+for+the+elderly&meta=

http://www.food.gov.uk/multimedia/pdfs/consultation/clearfoodguide07.pdf

http://ovidsp.uk.ovid.com/spb/ovidweb.cgi

Following a meeting with stakeholders in 2006 the Agency undertook to

revise the Guidance to provide best practice advice that encourages greater

clarity, while recognising the need for a flexible approach. The revised advice

also takes account of the UK’s ageing population and concerns that sight

problems are expected to increase in the future. This Guidance will therefore

assist consumers with visual impairment by addressing issues such as font

size and type, and contrast etc. The Royal National Institute for the Blind

(RNIB) has been consulted on the revised Guidance and their advice has

informed the draft. The relevant legal requirements are outlined in separate

sections.

Aims of the Guidance

6. The objectives of the Guidance are as follows:

􀂃 To improve labelling practice with respect to clear labelling and

awareness of existing legislation on clear labelling in the manufacturing

and retail sectors.

Draft Revised 2007 CL Guidance text 26907 3

􀂃 To improve consumer confidence in labelling through improved clarity,

particularly bearing in mind visual impairment issues.

􀂃 To provide enforcement authorities with guidance to help them improve

labelling advice.

List of Tables and Figures

Figure 1.1 FSA Food Labelling Regulations 1996…………………………………………………………… 5

Figure 1.2 FSA various proposed signposts systems…………………………………………………….. 6

Figure 2.1 Colour coded TLS Label and GDA system……………………..…………………………….. 10

Figure 3.1 Consumer Behaviour and Marketing Strategies…..…………………………………….. 13

Figure 3.2 Processing Label information………………………………………............................... 14

Figure 3.3 Engel’s Curve……………………………………………………..……………………………………..  16

Figure 3.4 TLS & GDA Marketing systems…………………………..………………………………………. 18

Figure 3.5 Cohen’s Decision Process for Marketing…………………………............................  25

Abbreviations

BMRB                                                 British Market Research Bureau

DOH                                                Department of Health

FSA                                                Food Standards Agency

GDA                                                Guideline Daily Amounts

IGD                                                Institute of Grocery Distribution

NHS                                                National Health Service

NSSG                                                 Nutrition Strategy Steering Group

PMP                                                 Project Management Panel

SPSS                                                      Statistical Package for the Social Sciences

TLS                                                Traffic Light Labelling System

1.0 Introduction

1.1 Definition of Food Labelling and Signposting

Food labels are used as a source of information on products primarily to inform and protect consumers. The Food Standards Agency (FSA) help make sure consumers get the right information in an understandable way.  The Food Labelling Regulations of 1996, state that foods need to be marked or labelled with specific requirements as shown in Figure 1.1.

Figure.1.1 FSA Food Labelling Regulations 1996

  • the name of the food
  • a list of ingredients
  • the amount of an ingredient which is named or associated with the food
  • an appropriate durability indication
  • any special storage conditions
  • the name of business and manufacturer and in certain cases
  • the place of origin
  • the process used in manufacture
  • instructions for use

Source: FSA

The FSA developed the concept to introduce a signposting system, whereby key nutritional information could be displayed to show consumers ‘at a glance’ the content of foods. The FSA have carried out extensive research to find the most useful signposting system, when helping consumers make informed choices about food. There are various signposting systems adopted by the FSA and promoted within the food industry (see Appendix A).

1.2 Aim

The main aim of this dissertation is to identify consumers’ perception of the Food Traffic Light System (TLS) when making informed choices about food products in comparison to the Guideline Daily Amount (GDA) labelling system.

1.3 Hypothesis

This dissertation will assess the effectiveness of the TLS in comparison to the GDA system and proposes that the TLS is an easier and more effective labelling system, allowing consumers to make healthier food choices.

1.4 Objectives

The following objectives highlight the significance of the main aim and explain the importance of the TLS. Firstly the dissertation will highlight what factors influence consumers purchasing decisions. This will question the relevance of the TLS and whether it is necessary for consumers’ perception of information handling at the point of purchase.

An investigation into the social and economic influences that have heightened the need for a healthy nation, focussing on obesity issues, availability of fast food and general health scares that are motivating consumers to choose to live a healthy lifestyle.

The research will examine consumers’ attitudes towards the TLS and GDA system and what they perceive to understand of each labelling system and how it helps them in their decision making process. Information on the red, amber and green code will be given to the sample group of consumers in the focus group and questionnaire so they can subsequently interpret what they understand of it.

Furthermore, there will be an examination into consumers’ understanding of the nutritional information on packs and whether they find the front-of-pack labelling system (TLS) more effective than the back-of-pack system (GDA). This objective highlights the core aim and reasoning behind this topic area. With the increasing number of consumers analysing the nutritional information that is relevant to them when purchasing food, the theory of Consumer Behaviour will indicate the attitudes, motives and scrutiny behind consumers’ perception of the proposed labelling systems and what, if any, affect it has on their decision making process.

In addition, an investigation into the consequences of what it will mean for the UK public if the scheme were to be exercised on all types of food products. The expansion into other food manufacturers is also important to look into; as the FSA is already investigating whether the TLS should be used for fast food manufacturers and take- away establishments.

1.5 Overview of Methods

In order to understand fully the extent of this topic, a selection of theories from a few subjects studied throughout the Food Marketing and Business Economics degree, will relate to the topic area.

Principally both primary and secondary research techniques will be conducted and ethical approval needed to allow for qualitative and quantitative data to be gathered for this dissertation. The primary research used will be in the form of a questionnaire, a focus group and a personal interview with a representative from J. Sainsburys. These types of primary research techniques ensure that data is collected on a first hand basis and can be backed up by secondary sources, surrounding the topic area.

Qualitative research will be used to provide a subjective view of people’s beliefs, attitudes, experiences and behaviour, via a focus group. Quantitative research will be used to provide an objective statistical and numerical overview of data through the form of a questionnaire. This will facilitate in providing a general consensus of the topic area and allow for statistical data to be represented in a graphical method (bar charts, pie charts, tables).

Subsequent to the primary research, secondary sources of data will be analysed and interpreted exploring the depth of interest around the TLS and GDA systems. Previous publications surrounding the topic will be reviewed and analysed in order to grasp the interest on healthy eating and labelling issues. Reports and research conducted by the FSA will be examined in accordance to this study.

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This dissertation will examine the theory of Consumer Behaviour and will allow the reader to understand consumers’ perceptions of the labelling systems. In order to comprehend the research, a look into Ward Edwards Theory of Decision Making will examine the factors that may influence a person’s behaviour to purchase foods using the TLS.

 Furthermore investigate the economic factors generated by labelling systems focussing on the demand of certain foods, in relation to the psychological evaluation made by consumers. In addition, the burden placed upon the NHS and health services in the UK have to be explored. This dissertation ...

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