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Food Labels’ Impact Assessment on

Consumer Purchasing Behavior in
Malaysia
a b b
Zul Ariff Abdul Latiff , Golnaz Rezai , Zainalabidin Mohamed &
a
Mohamad Amizi Ayob
a
Faculty of Agro Based Industry, Universiti Malaysia Kelantan,
Kelantan, Malaysia
b
Department of Agribusiness and Information Systems, Universiti
Putra Malaysia, Selangor, Malaysia
Published online: 03 Mar 2015.
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To cite this article: Zul Ariff Abdul Latiff, Golnaz Rezai, Zainalabidin Mohamed & Mohamad Amizi
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 Journal of Food Products Marketing, 00:1–12, 2015
Copyright © Taylor & Francis Group, LLC
ISSN: 1045-4446 print/1540-4102 online
DOI: 10.1080/10454446.2013.856053

Food Labels’ Impact Assessment on Consumer

Purchasing Behavior in Malaysia
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ZUL ARIFF ABDUL LATIFF

Faculty of Agro Based Industry, Universiti Malaysia Kelantan, Kelantan, Malaysia

GOLNAZ REZAI and ZAINALABIDIN MOHAMED

Department of Agribusiness and Information Systems, Universiti Putra Malaysia,
Selangor, Malaysia

MOHAMAD AMIZI AYOB

Faculty of Agro Based Industry, Universiti Malaysia Kelantan, Kelantan, Malaysia

The purpose of this study is to validate the impact of food labels

among Malaysian consumers using an extended theory of planned
behavior model (TPB). In doing so, the study assessed the direct
and indirect effect of food labeling on consumer intention to pur-
chase or not to purchase the food products of interest. A stratified
random sampling technique was adopted in selecting 2,014 con-
sumers in Klang Valley, Malaysia. The results of structural equation
modeling supported the adequacy of the proposed model. This study
contributes to and extends the understanding of food labeling and
purchasing behavior, identifying the rationales for purchasing of
food products with labels that contains information such as halal
logo, ingredients, and nutritive value.

KEYWORDS food labeling, consumer, attitude, purchasing

behavior

INTRODUCTION

In this modern age of consumerism, people are becoming more aware

and showing greater concern about what they eat. This has led to greater

Address correspondence to Zul Ariff Abdul Latiff, Lecturer, Faculty of Agro Based
Industry, Universiti Malaysia Kelantan, 17600, Jeli, Kelantan, Malaysia. E-mail: zulariff@
umk.edu.my
Color versions of one or more of the figures in the article can be found online at www.
tandfonline.com/wfpm.

1
 2 Z. A. Abdul Latiff et al.

concerns about why consumers need to see what they eat or drink on
products’ labels. Malaysia is one of the fastest-growing economies with a
substantial number of its population becoming more enlightened about safe
and healthier food—thus, there is the possibility that Malaysians are showing
more interest in purchasing and consuming more healthy and hygienic foods
(Rezai et al., 2014).
Due to the multicultural nature of Malaysian society, where Islam is the
religious culture of the majority, there tends to be some high level of con-
sumers’ consciousness and interest in the halal nature of food products (Sian
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et al., 2010). It can be said that this is due to not only religious reasons but
also the belief outcome of being assured that eating halal foods guaran-
tees better healthy living. Psychologically, consumers’ attitude toward food
labeling may have a massive effect on the consumption of the food or prod-
uct. The majority of Muslims in Malaysia with a strong belief in the principles
of halal and haram (lawful and unlawful) can be linked to the emotional
and behavioral outcome of purchase and consumption of any food product.
So based on the belief principle of haram (unlawful), foods and drinks
such as pork and alcohol are tagged as not only forbidden but also unhealthy
and harmful. In addition, these universal religious beliefs and principles tend
to have a global effect as Muslims all over the world hold to this attitude.
This can be linked to the assertion that the consumer market in the Islamic
world, being the fastest growing globally, has something to do with religious
beliefs and commitment, coupled with the unique qualities of hygiene and
health found in halal foods (Burgmann, 2007).
Food generally contains a variety of nourishment that is highly nec-
essary for optimal body functioning, and it is mentioned that the decision
consumers make before purchasing or consuming any food product is a
function of the quality of food, price, packaging, and labeling (Mohd Daud
et al., 2011). Consequently, labeling, which is one of the essential mediums
through which customers get to know what the food contains, affords the
consumer to take proper decisions on the one hand, and also provides all
necessary information about the healthy and hygienic nature of the food
product, on the other.
Labeling is seen from three segments. Based on the findings, these
three labels are truly accepted which are halal logo, ingredients labeling,
and nutrition labeling. Part of the effect of the halal logo is that it helps
consumers to evaluate and acknowledge which product is halal (lawful)
or haram (unlawful), as it enables them to fulfill their religious principles.
More so, nutrition labeling can serve as a means through which consumers
can make informed decisions and choice of purchase, promote competition
on food quality, thus leading to improved nutritional properties in food pro-
duction (Mohd Daud et al., 2011). Thus, coupled with adequate labeling,
manufacturers and marketers in Malaysia and the entire globe need a com-
prehensive understanding of consumers’ beliefs and thoughts, emotional
 Food Labels’ Impact Assessment 3

states, and behavior outcomes toward arriving at the spotlight of obtaining

consumers’ purchasing decisions of their products.
The emerging and growing economy and the increasing consumer pop-
ulation with higher purchasing power coupled with the growing number
of enlightened people about safe and healthier food within the Malaysian
community has impelled the current study. Thus, the purpose of this study
is to examine consumers’ attitude toward food labeling in Malaysia.
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LITERATURE REVIEW

In a study on the usage and understanding of food and nutritional labels

among Indian consumers, Singla (2010) found that food labels play a signifi-
cant role in a customer’s first-time purchase of a product in India. Consumers
read food labels to know about free gifts, offerings, and brand comparisons.
Price, ingredients, and expiry dates are also read, but very few read nutri-
tional information. Nutritional labels are developing a suitable policy for
imparting education regarding nutrition; consumers should be made aware
of the relation between diet, health and disease; initiatives should be taken
at school education level; and nutritional labels should be consumer-friendly
with easy terminology for better usage.
Moreover, previous research has shown some evidence reflecting the
relationship between food labels and consumers purchasing behavior. One
of the major findings is the role of communication in creating intention to
purchase food products. Researchers have come out with some findings
showing that consumers with a high preference for healthy and safe food do
change their food and nutrition behaviors as a result of their strong interest
in packaging information (Kreuter, 1997; Wandel, 1997).
Another issue of concern is the level of carefulness a consumer displays
about the information provided on food labels. Coulson (2000) reported
that the degree or how useful the information provided on food labels and
packaging is a function of the consumer’s level of carefulness, which is
often higher for consumers who show greater concern about the food they
purchase and consume.
The Asian Food Information Centre (AFIC) has investigated consumers’
responses to nutrition information on food packaging as well as contextual
factors that affected consumer responses in China and Malaysia. Based on
the research done, most consumers agreed that the nutrition information
on packaging should be provided for all manufactured foods. Nevertheless,
consumers admit their minimum knowledge pertaining to food product
information such as scientific information on the food ingredients.
Alam and Sayuti (2011) examined the application of the theory of
planned behavior (TPB) in halal food purchasing with the aim of extend-
ing prior research examining halal food purchasing behavior in Malaysia.
 4 Z. A. Abdul Latiff et al.

Self-administered questionnaires were used to collect the data, and mul-

tiple regression analysis was used to recognize the factors affecting halal
food purchasing behavior among Malaysian consumers. Results revealed that
consumer attitude and food labeling positively and significantly influence
consumer’s intention purchasing on halal food.
Consumers with higher levels of religiosity and education are more
aware about the halal status of the product (Rezai et al., 2009). The impor-
tance of understanding consumer concerns for halalness of the food product
is in relation to the demographic factors. Level of religiosity is shaping the
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mind of consumers in purchasing halal-labeled products.

Research on 400 non-Muslim consumers in Klang Valley was done to
get their responses pertaining to halal food products in the Malaysian food
market. The results of this study suggest that non-Muslim consumers are
aware of the existence of halal food, halal principles, and the advantages of
the halal way in slaughtering the animals (Rezai et al. 2015).

MATERIALS AND METHOD

Conceptual Framework
Ajzen’s (1991) theory of planned behavior serves as the theoretical frame-
work for this study. The theory of planned behavior provides a structure
that examines the factors that influence individual behavioral outcomes.
According to this theory, three independent factors determine a person’s
behavior—these include attitude, subjective norms, and perceived behavioral
control.
The theory of planned behavior suggests that the attitudes of consumers
toward food labels are made up of their beliefs and consciousness about the
labels attached to food products, their feelings on the food, and their behav-
ioral outcome, which can be linked to the person’s purchasing decision.
Moreover, labeling in which if related to attitudes of consumers can be said
to influence their purchasing decisions. This conceptual framework is shown
in Figure 1.
Based on the conceptual framework, beliefs, knowledge, emotional
states, and behavioral outcome influence consumer attitude. In addition, food
labeling has influence on consumer attitude, while consumer attitude of any
products influence the purchasing behavior.

Data Collection and Sampling Frame

The population of the study comprises both Muslim and non-Muslims con-
sumer in Klang Valley, Malaysia. A stratified random sampling technique was
adopted in selecting 2,014 samples. Consumers are divided into three groups
based on their housing areas: (i) high-income residents; (ii) medium-income
 Food Labels’ Impact Assessment 5
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FIGURE 1 The influence of consumer attitude and food labeling on purchase intention
(adopted and modified from Azjen, 1991).

residents; (iii) low-income residents. From each housing area (Taman),

10 houses were randomly selected. A total of 2,500 questionnaires were
distributed, but 2,014 (80%) of the questionnaire were returned. Prior to the
distribution of the questionnaire, an internal consistency (reliability) check
was computed, and it was found that the Cronbach’s coefficient alpha for
whole item was .83.
The questionnaire used contained subsections. These subsections of the
instrument were retrieved from previous studies. The first part consists of
the demographic information, age, gender, level of education, income, and
years of service. Then comes the ranking level among the label of food.
Finally would be questions related to food labeling, consumer attitude, and
purchase behavior. A 7-point Likert scale was used in the survey.
For the statistical part, the descriptive analyses were used for the demo-
graphic factors. Regarding the relation between demographic factors and the
food label, chi square was used to determine the relation. Factor analysis
was to identify constructs, or factors, that statistically explain the patterns
of variations among multiple variables. Here the variables are halal, nutri-
ent, brand, expiry date, price, health claim, and ingredient label. Finally, the
structural equation model to ensure the model fit the finding.
Table 1 lists the constructs, items, and internal consistency indexes used
in the study. The study applied a three-stage structural equation model-
ing, using the AMOS (version 18) model-fitting program to test the research
hypotheses. The study first assessed the validity of the measurement model,
the confirmatory factor analysis of the food labeling. Next, the good-fit of
the full-fledged research model was examined (Figure 2). Once a model was
estimated, a set of conventionally accepted criteria to evaluate its goodness
of fit was applied. The measures, based on the conventionally accepted crite-
ria for deciding what constitutes a good fit model, assess the (1) consistency
 Downloaded by [Universiti Malaysia Kelantan], [Zulariff Abdullatiff] at 17:08 07 March 2015

TABLE 1 Measurement of the Variables of the Hypothesized Model

Construct Item Measure Mean SD Reliability

Ingredient Food Labeling Ing1 Ingredient label can create the awareness of the food product 5.87 1.066 .716
quality
Ing5 I sometimes have difficulties to understand scientific terms such 6.23 1.117
as E422 in the ingredient label
Ing2 The ingredient label should be easily understood by an ordinary 6.09 1.024
person
Nutrient Nu1 I prefer to purchase nutritional product 6.07 1.107 .550
Nu3 I believe checking nutrition label can lead me to a healthier 5.64 1.214
choice
Halal Logo Hal2 The variety of halal logo in the market makes me confused 5.29 1.739 .903

6
Hal3 The variety of halal logo in the market makes me confused 5.29 1.744
Hal6 I am very concerned about the country of origin of halal logo 5.20 1.782
Hal2 The variety of halal logo in the market makes me confused 5.29 1.739
Belief Knowledge Consumers’ Attitude PC4 I will purchase food products with nutrition label even though I 5.74 1.065 .856
do not understand the scientific terms
PC5 Nutrition facts label must appear on food products for 5.84 1.035
purchasing decision
PC6 I read the nutritional label to know about the quantity of fat, 5.74 1.131
fiber, and sugar before purchase
PC2 Knowledge about nutrition terms is important for me in 5.75 1.106
purchasing food
Emotional stage CA2 Food labeling consists of a package of food that contains a 6.12 .943 .829
variety of information about the value of the food item (i.e.,
ingredient, nutritional, health, halal)
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Label
CA3 Normally I check the food label before purchasing 5.87 1.125
CA4 Currently the food label has benefited me a lot 5.76 1.166
CA5 I will read the label for new products that arrive in the market 5.82 1.174
CA6 I was influenced with media information regarding food 5.65 1.151
purchasing
Behavioral outcome SN1 Food products with nutritional label are more expensive 5.21 1.332 .736
SN2 I will purchase food products with nutrition label even though I 4.98 1.388

7
do not understand the scientific terms
SN3 I believe the higher price indicates the better quality of product 4.86 1.576
SN4 Regardless of other labels, price is very important to me 4.76 1.706
Purchase Behavior Purchase Behavior PB4 Price label affects my purchasing behavior 5.59 1.200 0.52
PB2 I will purchase food products with nutrition label even though I
do not understand the scientific terms
PB6 I intend to buy healthy products regardless of the price 5.48 1.220
 8 Z. A. Abdul Latiff et al.
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FIGURE 2 Measurement model.

of the hypothesized model with the empirical data, (2) reasonableness of

the estimates, and (3) the proportion of variance of the dependent variables
accounted for by the exogenous variables.

RESULTS AND DISCUSSION

Demographic Profile of Respondents
This study covered Malaysian consumers in Klang Valley, Malaysia, where
2,014 consumers responded to the survey. The confidence interval and mar-
gin of error of this study were 95% and 5%, respectively. In terms of gender,
55.7% were female and 44.3% male. Muslim respondents were 60.5%, 16.5%
Buddhist, 14.2% Hindu, and 8.8% were Christian. The majority (38.5%) of the
 Food Labels’ Impact Assessment 9

respondents were bachelor’s degree holders, while only 5% of them have

educational background from primary. Most (58.4%) of the respondents are
Malay, 22.8% Chinese, and 18.7% Indian. Most of the respondents are less
than 30 years of age, and they mostly (75.7%) reside in urban areas. In gen-
eral, the respondents seemed to be evenly distributed and almost covered the
whole of the Klang Valley area. As required, the study conducted data screen-
ing to overcome problems such as sample size and missing data, multivariate
normality and absence of outliers, linearity, absence of multi-collinearity and
singularity (Tabachnick & Fidell, 2001).
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STRUCTURAL EQUATION MODELING

This section presents the results of the structural equation modeling that
addressed the objectives of the study.

Validity of the Measure of Food Labeling

Figure 2 contains the measurement model of the food labeling attributes
in Malaysia that comprised three first-order factors and one second-order
factor. Each of these first-order factors was measured by three items; each
item except nutrition that has only two items, and this is also permissi-
ble according to Kline (2010). Each item of the construct was assumed to
load only on its respective dimension. The three factors, namely the halal
logo, food ingredients, and nutrition, were expected to load on the second-
order factor, food label. Using the maximum likelihood estimation procedure
of the confirmatory factor analysis, the validity of this measurement model
was tested first. The results indicated that the hypothesized 9-item measure-
ment model was consistent with the data. The overall fit of the model was
adequate; the chi-square is relatively low, RMSEA = .046; CFI = .988; TLI
= .981; GFI = .989. In other words, the measurement of food labeling did
generate the observed covariance matrix; there was no evidence that the
measurement model is incorrect. In addition, the direction and magnitude of
factor loadings were substantial and statistically significant, and the model
was free from offending estimates (Kolenikov, 2007). The Cronbach’s alpha
for the first-order factors were .903 (Halal logo), .716 (Ingredient), and .550
(Nutrient). The data also supported the measurement adequacy in terms of
their convergent and divergent validity; these are supporting evidence for
construct validity of the model.

Adequacy of the Causal Structure of the Food Labeling Model

Figure 3 summarizes the results of structural equation modeling of food
labels and consumers’ attitude in Malaysia. The structural modeling yielded
 10 Z. A. Abdul Latiff et al.
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FIGURE 3 Structural equation model attitude of consumers.

consistency of the hypothesized causal relationships with the data (chi-

square relatively low, RMSEA = .059; CFI = .918; TLI = .905 and GFI = .927).
All other fit indices satisfied their critical cut scores; the results, therefore,
indicated a fitting model.
The parameter estimates Table 1 of the hypothesized model were free
from offending values. All path coefficients of the casual structure were sta-
tistically significant at .005 levels and were of practical importance, since the
smallest value of the standardized path coefficient was 0.94. The data indi-
cated food labeling was highly influential on consumers’ attitudes toward
purchasing food. The total standardized effect size of food labeling on
consumers’ purchase behavior was .94. In addition, the analysis revealed
that, collectively, the three exogenous variables explained almost 89% of the
variability of the consumers’ purchase behavior.

DISCUSSION AND CONCLUSION

The findings of the present study have expanded the existing body of knowl-
edge on consumer attitude toward food labeling and consequential effect on
purchasing behavior. First, the results substantiated the psychometric ade-
quacy of the measure of food labeling and consumer attitude toward food
 Food Labels’ Impact Assessment 11

labeling. The food label measure seems sufficient to represent the ongo-
ing criteria halal logo, nutritive value, and ingredient use by Malaysian
consumers to screen food items before buying.
Second, the results validated the good fit of the extended Ajzen model
on food labeling and purchasing behavior. The results also supported the
efficacy of the original theory of planned behavior (Ajzen, 1991), which
posits that behavior provides a structure that examines the factors that influ-
ence individual behavioral outcomes. In addition, the results are congruent
with the results of earlier studies on food labeling (Alam & Sayuti, 2011;
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Singla, 2010; Coulson, 2000), which found that food labels play a significant
role at a customer’s first-time purchase of a product.
The pattern discovered when consumers are satisfied with information
provided on labels of any food items; they are more likely to purchase the
items. More importantly, the present study found that purchase behavior
of Malaysian consumer does not depend on labeling alone, but also on
their attitude toward labeling as well, i.e., their confidence in the constituent
element of the label itself. The data indicated that food labeling is highly
influential in affecting the purchase behavior of Malaysia consumers.

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