The Effects of Product Knowledge, Perceived Risk, and Quality on Purchase Intention: The Case of Packaged Food Nutrition Labels

The current study explores whether nutrition labeling affects consumers’ purchase intentions, or whether it generates any perceived value to consumers, thereby affecting their purchase intentions. A questionnaire method was employed in which 300 questionnaires were distributed, with 233 of those returned deemed as valid, giving a recovery rate of 78%. Structural equation modeling (SEM) was applied to test the research hypothesis: When consumers see the reference value of nutrition labels, they are more willing to pay the price to purchase a product with nutrition labeling. Conclusions of the research are as follows: (i) Correct product knowledge lowers consumers’ uncertainty regarding nutrition labeling and increases their purchase intention. (ii) Consumers’ perceived quality and risk influence purchase intention through perceived value. Therefore, the food industry could also work at improving consumers’ perceived quality by instilling correct product knowledge and strengthening consumer education in and understanding of nutrition labeling. If consumers’ perceived risk is lowered, their uncertain feelings about nutrition labeling will also be reduced. The result would be to strengthen consumers’ purchase intention, thus increasing the benefits to industry players.