INFLUENCE OF FOOD LABEL AWARENESS ON EMERGING PACKAGED FOOD BRANDS

Abstract

Food label information represents a key mechanism through which emerging packaged food brands communicate product quality and reduce information asymmetry in consumer markets. The influence of food label awareness on consumer trust and willingness to pay for emerging packaged food brands was examined among consumers in Coimbatore, India. Data were collected from 300 packaged food consumers, of whom 257 respondents reported awareness of emerging packaged food brands and were retained for analysis. Covariance-based structural equation modeling was employed to evaluate the proposed relationships among Food Label Awareness (FLA), Consumer Trust (CT), and Willingness to Pay (WTP). The measurement model demonstrated satisfactory psychometric properties, with composite reliability values ranging from 0.81 to 0.89 and average variance extracted values meeting recommended thresholds. Model fit statistics confirmed an adequate representation of the data (χ²/df = 1.779, CFI = 0.935, TLI = 0.928, RMSEA = 0.055). Food Label Awareness exerted a strong positive influence on Consumer Trust (β = 0.711, p < 0.001) and a significant direct influence on Willingness to Pay (β = 0.273, p = 0.016). Consumer Trust positively affected Willingness to Pay (β = 0.310, p = 0.005). Food Label Awareness accounted for 50.5% of the variance in Consumer Trust, while Food Label Awareness and Consumer Trust jointly explained 29.1% of the variance in Willingness to Pay. Consumer Trust partially mediated the relationship between Food Label Awareness and Willingness to Pay, generating an indirect effect of 0.220 and a total effect of 0.493. Greater awareness and understanding of nutritional, brand, packaging, and ingredient information strengthened consumer confidence in emerging packaged food brands and enhanced acceptance of premium pricing. Transparent and comprehensible labeling therefore functions not only as a regulatory requirement but also as a market-based mechanism for trust formation and value enhancement within the packaged food sector.