Evaluating Consumer Usage of Nutritional Labeling: The Influence of Socio-Economic Characteristics

In previous studies, variables measuring the effects of income and age have generally
been less significant in predicting label usage than in other food marketing studies.
The results of one study (Bender and Derby) suggest that younger rather than older
individuals are more likely to be label users.

In agreement with Bender and Derby, the age variables were estimated with the
expected sign and two of the three explanatory age variables were found to be
significant. Younger individuals rather than older individuals were more likely to use
nutritional labels. Those 51-65 years of age were 19 percent more likely to use
nutritional labels than those under the age of 36. Similarly, those 36-50 years of age
were 12 percent more likely to make use of nutritional labels than those under 36 years
of age. This finding may be a result of older individuals having more restricted diets
due to medical advice or health problems whereas younger individuals have less
incentive to search for more healthful alternatives.

Of all the included explanatory variables, those who lived in suburban areas had the
greatest effect on nutritional label usage. When compared to urban residents,
suburban residents were 23 percent more likely to be label users and rural area
residents were 20 percent more likely to be label users. Consumers who frequently
purchase organic produce were also found to be 11 percent more likely to make use of
nutritional labels. This finding is consistent with previous studies which suggest that
organic purchasers are more risk averse toward food safety issues than non organic
purchasers.

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