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Functional foods in India

MSc Thesis Abhijeet Mundhe

Food industry

Pharma industry

Functional Foods

Pharma industry Food industry Functional Foods

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“Functional foods in India”

Author Abhijeet Mundhe Reg.no.: 930428591040 University Wageningen university Faculty Food Technology Specialization: Food Innovation and Management Department Management studies/ Business Administration Supervisor Prof. Dr. S.W.F Omta Dr. Gerben van der Velde Time period Course code MST-80436

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Acknowledgement I am grateful to Management studies and business administration for rendering the best of facilities

and support needed to effectively complete this thesis. I express my gratitude towards the employees

and students at Management studies and business administration for this wonderful experience. I have

enjoyed every part of doing my thesis here.

I would like to express my utmost gratitude to Prof. Dr. S.W.F Omta, for his valuable inputs, guidance

and support during this thesis. I would like to thank you for your personal interest on my work and

progress and also for your guidance.

A heartfelt thankyou to my supervisor Mr. Omta, who gave me this wonderful opportunity to work

under his guidance. His words of encouragement and belief in me meant a lot to me and were

instrumental during the entire course of this project. His motivation, calmness and support made this

thesis a very nurturing experience for me. Thank you Prof. Dr. S.W.F Omta

Finally, I would like to thank my parents for giving me endless support in every possible way,

being there for me always, supporting my decision and backing me up. Without them, I would

never able to be the person that I am today.

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Abstract During the last few decades the interest and demand for both healthy food and different beverages

has increased the interest for the healthy food and it is expected to continue increasing in the future.

A strong reason for this is the desire among more and more people to live healthy and ling lives.

Functional foods provide a novel approach to the idea of healthy eating by linking a single competent

with a certain health benefit. However, comprehensive knowledge on functional food development is

lacking and there is no clear understanding of consumer’s perceptions on willingness to use functional

foods in India.

The general aim of the thesis is to contribute to the knowledge of the convergence process and find

consumers attitude toward willingness to buy functional foods in India. The purpose of the study was

to investigate consumer behaviour towards functional foods and their willingness to use functional

foods. Secondly, the consumer study indicates a varying attitude toward functional foods. Overall it

can be stated that, consumers’ willingness to use functional foods is explained through the described

model based on the following predictors: age, educational level, household income and attitude

towards functional foods. Among these factors consumer’s health attitude seems to have highest

relevance to explain consumer willingness to use functional foods.

Key words: Attitudes, Consumer attitudes, Functional foods, Consumer behaviour

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Table of contents

1. Introduction …………………………………………………………………………… 6

1.1 Definition of functional food………………………………………………………. 7 1.2 Current functional food market in India………………………………..........……. 8 1.3 Problem discussion………………………………………………………………….9 1.4 Objective of the thesis………………………………………………………………12

2. Theoretical background and hypotheses………………………………………………… 13

2.1 Willingness to use functional foods……………………………………………….... 13 2.2 Factors affecting willingness to buy functional foods……………………………….14 2.3 Attitudes towards functional foods……………………………………………...…... 15 2.4 The lower the personal health status of consumer is the higher willingness to use….16

3. Methods…………....……………………………………………………………………18

4. Data….………………………………………………………………………………… 21

4.1 Participant …………………………………………………………………………. 15 4.2 Qualitative and quantitative survey design………………………………………… 15

5. Data analysis…………………………………………………………………………….16

5.1 Socio-demographic characteristics……………………………………………….... 17 5.2 Correlation on attitude towards functional foods…………………………………. 18

6. Results…………………………………………………………………………………. 22

6.1 Regression analysis………………………………………………………………... 26

7. Conclusion………………………………………………………………………………27

8. Bibliography…………………………………………………………………………….28

9. Appendices……………………………………………………………………………...30

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1. Introduction The world population is estimated to increase from 7.6 billion people in 2017 to 9.8 billion in 2050 (David Richards, 2017). Indian population contributes 1 billion people out of the 7.6 billion people in the world. (Elaboration of data by United Nations, 2017). This is approximately 17.74% of the total world population. With this increasing population growth in India, there will be a simultaneously an increase in the food demand and healthy lifestyle. Also, with the growing living standards, the demand for food produce and other high quality, nutrient-dense foods will also rise quickly. In the last few decades’ consumer demands in the field of food production has changed considerably (Istva´n Siro´ a *. E., 2008). Due to increasing health cost as well as a growing interest amongst consumers in products that alleviate the symptoms of ageing and illness, consumers to a greater extent believe that food contributes directly to their health. Today food is not intended to only satisfy hunger and to provide necessary nutrients for humans but also to prevent nutrition related diseases and improve physical and mental health. In this regard, functional foods play an outstanding role. The increasing demand on such food can be explained by the increasing cost of healthcare, the steady increases in life expectancy, and the desire of older people for improved quality of their later years (Kotilainen, 2006). The concept of functional foods has become popular first in japan and later in other countries. Functional food is a relatively new concept and was developed in 1984. It was created by Japanese scientist, who studied the relationships between food products fortified with specific ingredient and the physiological effects they had on the body (Soichi ARAI1), 2002). New products in the food industry focus mainly on borderline products containing functional ingredients such as probiotics or phytosterols, which lead to worldwide research of functional foods in last decades. This inter industry segment of functional foods arises at the intersection of the food and pharmaceutical industry showing an ongoing process of convergence (Sabine Bornkesselia, 2016). The emergence of innovation at this intersection is blurring the clear boundaries between these two industry. Such boundary blurring innovation leads to cross industry innovation. This industry segment comprises products delivering nutritional as well as health value, such as Nutritional supplements(NS), Functional Foods (FF), and Medical Nutation(MN) (worlds, 2013). However, there is a low rate of innovation in the food sector compared to another industrial sector (Jayaram K. Sankaran1) The Indian food industry is no different from the western counterparts in its response to the growing need for healthy diet with the fast changing socio-economic indictors. Indian consumer is now looking for the food products that provide value beyond nutrition. This value may be the specific health benefits associated with the foods. The functional foods are particularly targeted with such value propositions and are now increasingly been accepted by the consumer across the food categories. However, consumption of functional foods is not well accepted in many part of India. Very few consumers are willingness to buy functional foods. The aim of the thesis is to discover different reasons behind the consuming of functional foods and whether certain reasons can predict he consumers’ willingness to buy functional foods.

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1.1 Functional food: a concept rather than a product Broadly “Functional foods” may be defined as food which influence specific functions in the body that may provide added health benefits or remedy from some diseased condition following the addition/concentration of a beneficial ingredient, or removal/ substitution of an ineffective or harmful ingredient. Food might inherently possess these supposedly beneficial qualities, or they may be fortified/modified and or genetically altered (FSSAI-Food Safety and Standards Authority of India). Food Safety and Standards Authority of India (2006) is the single reference point in relation to regulation of functional foods in India. The definition of functional foods varies tremendously in the literature and there is currently no agreement on a formal definition. They range from simple: “Foods that may provide health benefits beyond basic nutrition” to more complex definitions such as “Food similar in appearances to conventional food that is intended to be consumed as part of normal diet, but has been modifies to sub-serve physiological roles beyond the provisions of simple nutrient requirements” (Tino Bech-Larsen*, 2002) Functional foods are either enriched or fortified which restores the nutrient content in a food back to similar levels form before the food was processed. A food can be made functional by applying any technological or biotechnological means to increases the concertation of, add, remove or modify a particular component as well as to improve its bioavailability (Roberfroid, 2000). The development of functional foods is a challenge requiring interdisciplinary research and collaboration between academic and industry scientist.

1.1 Current functional food market in India

India’s population is large and predominantly young as the younger generations move toward middle age and income increases, the need to maintain or establish a healthy diet will drive functional food consumption increasingly higher (Istva´n Siro´ a *. E., 2008). With its strong tradition of healthy eating, India ranks among the top ten nations in buying functional foods (Namrata Sutar Namrata Sutar, 2010). Tata Strategic Management Group, largest Indian owned management consulting firm in South Asia, estimates the health & Wellness (H&W) foods market in India at INR 101 billion in 2012 which grew at a CAGR (Compound annual growth rate) of 33% to INR 550 billion by fiscal year 2015 with advances in product development and government mandated fortification (Herald, 2012). The Indian functional food market, apart from the other nutraceuticals products such as dietary supplement, is estimated by Ernst & Young study to be about INR 30 billion in 2008 as illustrated in below figure 1 and has grown at a CAGR of 18% as compared to world average of 7% (SULLIVAN, 2010). In India, functional foods products such as fruit, vegetables energy drinks, fortified juices with or without preservations, breakfast cereals, fresh dairy products, confectionary and fibre rich products are available in Indian market. Some of the popular functional food products and brands marketed in the Indian market are listed in appendix. According to a report by business research and consulting firm, functional food will be the quickset growing category followed by dietary supplements until 2020 (Vishwakarma, 2017). The main reason behind the market growth is that Indian consumers are more focusing on healthy life. It is natural that people’s focus is shifting from medical treatment for sickness to positive approach for prevention of diseases to stay healthy life.

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Figure 1.1 Indian Nutraceutical market (SULLIVAN, 2010) Currently, the global nutraceutical was estimated to be $149.5 billion in 2011 with US, Europe and japan being the largest regional markets, according for nearly 93% of the global nutraceutical demand. As these markets are nearing maturity, with exceedingly high per capita spends on nutraceutical products, nutraceutical manufactures are looking at developing countries such as India and China as key growth regions (Sullivan, 2012). Presently India nutraceutical market is highly urban centric. However, with the rise of rural market and if the growth trajectory remains the same, Indian nutraceuticals market is going to more than double of the current market within next five years or by the end of current decade may become five-fold since the beginning of decade. Currently functional foods enjoy largest share of India nutraceuticals market followed by dietary supplements. This trend will drive the market for fortified foods and pro-biotic. With the rise of lifestyle related diseases in urban India and penetration in rural India, the demand for nutraceuticals products is going to remain high. Though having a healthy size of health-conscious consumer segment in India, still the market has not adopted nutraceuticals for regular consumption. India consumers are still the market has not adopted nutraceuticals for regular consumptions. India consumers are still at “awareness” or somewhat ‘interest ‘stage of product adoption cycle (Sullivan, 2012).

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In addition to the various health benefits, functional foods also present economic benefits as they give higher profitability margin as compared to conventional food. Retail prices of functional foods are typically 30 to 500 percent above the comparable conventional foods and the global market size has been estimated between US$30 and US$60 billion with Japan, United States, and Europe being the leading markets (SULLIVAN, 2010). Developing countries have started to emerge as exporters to cater to the increasing demand in the developed countries. Moreover, demand for functional foods within the developing countries is growing, presenting a lucrative opportunity to develop domestic markets. Due to exceptional growth of the Indian economy and higher purchasing power parity (PPP) of the consumers in the last decade, consumers are moving towards specific functional foods. Urbanization, changing population demographics and a strong desire among Indian consumers to maintain a healthy lifestyle are additional factors driving this market. Although this is a new concept in our country and the market is still in infancy but the demand for functional foods would continue to increase due to their specific health benefits and Government’s plan to invest $ 21.5 billion in food processing industry in next five years (Ahuja). Currently, there is no direct form of competition in case of specific functional foods as there are a very few players in this category. Since functional foods falls on the thin line dividing the convectional foods and the medicinal products, the interest in this product segment is divided between the food and pharmaceutical between the food and pharmaceutical companies. The Indian functional food market is fragmented and consists of six major actors as presented in Table 1. Subsequently the functional foods market positioned for their health benefits will continue to be strong for the several decades. The driving forces like rising awareness about health and fitness, ageing population, changing lifestyle are fostering this growth. The functional foods market in India is growing at rapid pace as health as a value has percolated in the Indian society undergoing dramatic demographic shifts as people’s awareness of influences on diet on health has been increasing (Manish Sharma, Functional Foods: Marketing ‘Health’ To Modern India, 2013). Several multinational food companies like Nestle, Unilever, Kellogg, and PepsiCo have introduced functional food products in the Indian market. Nestle, the market leader in the infant food, instant coffee, noodles and condensed milk categories, has launched several healthy brand extensions (MAAGGI Vegetable Multigrainz Noodles, NAN Probiotic for NAN, ACTIPLUS Probiotic Dahi and Slim Dahi for Dahi). Kellogg, which enjoys a healthy 60 per cent share in the INR 4 billion cereal market in India, has also introduced functional breakfast cereals like Kellogg special K o reduce weight and Extra Muesli Nut, Almond & Honey Variants (Manish Sharma, Functional Foods: Marketing ‘Health’ To Modern India, 2011). The functional food have attracted the interest of the pharmaceutical companies as well owing to relatively shorter product development time and limited budget requirement as compared to that drug development. Since the functional foods lie on the thin line between medicinal and food products, the pharmaceutical industry views this segment as a natural extension of their existing products, the pharmaceutical companies generally failed to gain foothold in the functional foods market due to incompetence of developing and marketing a high-quality food product (Sabine Bornkesselia, 2016). In India several pharmaceutical companies such as GSK, Supractiv, Nutralite, Well AM-PM, Well multivitamin GNC and Actival-Z have launched functional foods thorough their Consumer Healthcare divisions.

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Main Actors

Companies

Functional

Products/Ingredients

Multinational food companies with a broad

product range.

Nestle, Danone, Unilever, Kellogg, PepsiCo, Yakult,

Danone, Perfetti van Melle

Probiotic Yoghurt/Dahi, Snacks, Energy Drinks,

Breakfast Cereals, Confectionary

Pharmaceutical and/or

dietary products producing companies.

GSK, Amway, Ranbaxy

Malted Food, Supplements,

Fortified products.

National ‘‘category

leaders’’.

Amul, Dabur, ITC,

Britannia, Parle

Dairy Products, Fruits & Vegetable Juices, Biscuits

Small and medium-sized companies (SMEs) of the

food industry.

Heritage Foods, Ruchi

Soya, Mother Dairy

Soya Milk, Dairy, Oils

Retail companies.

Reliance Wellness, Apollo

Pharmacy, Patanjali

Sweetners, Cereals, Energy

Drinks, Ayurvedic & Herbal Products

Supplier of ‘‘functional

ingredients’’.

Chr Hansen, Orana,

Danisco

Cultures, Enzymes,

Phytonutrients, Natural Colors

Table 1. Major functional foods segments (India, 2017)

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1.3 Problem discussion

As the functional foods market value has been increased over the last decades and it is expected to increases in the future. The food industry is looking for better profits because the demand for functional food products is expected to increase in volume and compared to the price of regular food products, that of corresponding functional foods is higher (Manish Sharma, Functional Foods: Marketing ‘Health’ To Modern India, 2013). However, developing a new functional food product might be time consuming and expensive and consumer should be willing to pay premium price for foods with the health benefits in order to for these products should be regularly consumed. Regular consumption increases the cost of foods budgets, thus making them unattractive to some consumers, even if some consumers were willingness to pay a little more for functional foods, the acceptable price level might fail to meet he revenue expectations and the product could be unsuccessful (John Bower, 2003). Product success or failure is difficult to forecast, especially if new innovative food products are developed. Thereby, Indian functional food manufactures’ future success depends on Indian consumers. In general aim of this study was to investigate Indian consumers’ willingness to buy functional foods. This would provide useful information for developing marketing strategies for functional foods products and assist in the formulation of policies and education programs to ensure that consumers make informed choices, leading to healthier lifestyle.

Fig. 1.3 Conceptual model showing the determinants on willingness to buy functional foods as well as relation between the determinants

Willingness to use for functional foods

Consumer Attitude towards functional foods 1.Knowledge of nutrition and health 2.Knowledge of Functional foods 3.Sources of nutrition information 4.Normative beliefs 5.Social contacts (Family, colleagues, doctor) 6. Willingness to use different functional foods categories

Product attributes 1.Perception of sensory 2. Attributes 3.Appearance 4.Aroma 5.Taste 6.Texture

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1.4 Objective of the thesis

The purpose of this study is to understand the factors that influences consumer behaviour in purchasing functional foods and willingness to pay. In order to identify the willingness to buy functional foods, consumer buying pattern and behaviour will be analysed. This part of the thesis allows to deliver a framework to marketers and manufactures of functional food in India. 1.5 Research objective

RO-1. To identify the consumer willingness to buy functional foods.

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2. Theoretical background and hypotheses This chapter presents an overview of the literature that is relevant to researching attitude and predicting purchase intentions. It will begin by providing a review on consumer willingness to buy functional foods. Then, the prediction of consumer behaviour towards functional foods and willingness to buy is described. At last the different factors also discussed to influence consumers’ willingness to buy by examining the consumer preference literature. 2.3 Willingness to buy functional foods

Consumer awareness of functional foods is an important antecedent for nutritional knowledge as awareness is a necessary precondition for general knowledge. Whether or not a person will eat functional foods, is dependent on their attitude towards functional foods (Kuster-Boluda, 2017).In other words consumer attitude become most direct and important prediction factor for choice of the functional foods (Nina urla, 2007). A way to examine consumer’s behaviour intentions is to assess their willingness of consumers to try functional foods. Consumer willingness to buy functional foods can be described as an individual’s attitudes. It is his /her choice to use functional foods. Consumers vary in the willingness to buy functional foods. While some individuals show strong aversions to them, other people show enjoyment when eating or trying new foods. Through the assessment of people’s attitudes towards functional foods, willingness to use functional foods is being measured. A great number of studies address different aspects of consumers’ willingness to buy functional foods (Michael Siegrist, 2008). It is clear that willingness to buy functional foods can be estimated from different attributes such as consumer attitudes towards functional foods, consumer knowledge towards functional foods, Normative beliefs, social contacts such as family doctor and colleagues, health benefits and health risk reduction (Ewa Babicz-Zielinska1*, 2017). This research previously conducted by many countries like Europe, U.S.A. and Japan. Moreover, Attitudes and lifestyle factors is an additional to the demographic factor such as gender, age or education, strongly affected the acceptability or intention to buy functional foods (S. Bhaskaran, 2002). Earlier studies have reported that consumers cannot directly perceive a products credibility attributes, unlike its taste and sensory appeal (Nina Urala, 2004). Therefore, the successful marketing of functional food requires making consumers aware of their health benefits. Making consumers trust in health related information plays an important role in functional food choice. (Verbeke W. , 2005) found that believing in the health effects of functional foods is the most crucial factor affecting the consumers’ acceptance towards functional foods. In previous studies, there has been growing interest in the study of attitudes and beliefs related to healthy eating has been observed. At this time, theoretically frameworks measuring consumer attitude such as the Health Belief Model (L.L. Trenkner, 1990) are developed. After reviewing the literature, certain contributions ae collected in terms of the measurements of attitude towards health and food. According to the (A. Steptoe, 1995) who developed The Food Choice Questionnaire (FCQ) with consisting of nine factors that includes health, mood, convenience, sensory characteristics, natural content, price, wright control, familiarity and ethical concern. On the other hand, (K. Roininen, 1999) who developed a scale to measure the interest in general health (General Health interest- GHI). Another way of measuring attitude is the health and Taste Attitudes Scale (HTAS) (K. Roininen, 1999). Which measures both health related factors that is interested in general health, low fat products and natural products

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Therefore, models and scales have been developed to measure attitudes and willingness to buy functional foods. After reviewing the literature and after analysing which are the most important points to study in the attitude and willingness to buy functional foods, Fig.1.3 presents the conceptual model that collects the relationships proposed The aim of the study was to develop further measurements that have been used to predict consumers’ willingness to use functional foods in our earlier studies. To explore whether a shorter version of the attitude measurements can be used to explain reported willingness to use functional foods in India 2.4 Factors affecting willingness to buy functional foods

Extensive literature research suggests that willingness to use functional foods may be affected by aspects such as consumer knowledge towards functional foods, health conscious and recommended by health professionals (Nina Urala, 2004). In other words, the individual characteristics includes inter alia socio-demographic criteria. The first category of individual characteristics includes inter alia socio-demographic criteria (Andreas C. Drichoutis Panagiotis Lazaridis Rodolfo M. Nayga, 2005). In this sense, it is important to consider that socio-demographic factors are not usually casual predicators themselves, but rather serve as proxies for something else (Verbeke, Consumer acceptance of functional foods: socio-demographic, cognitive and attitudinal determinants, 2005). With regard to the literature on nutritional knowledge seem to be important factors for consumers’ willingness to buy functional foods. In other literature also indicated that knowledge and beliefs are the major motivations for either purchasing and consuming, or for not yet having adopted functional foods in diets (Maria Sääksjärvi, 2009). Furthermore, (Maria Sääksjärvi, 2009) pointed that lack of knowledge as the major reasons for not consuming functional foods. Similarly, knowledge of foods and food ingredients was reported to contribute positively to the success of functional foods in the Indian market (Deepa Kapoor, 2017). However, the long-term marketplace success of functional foods is depended on consumer acceptance, attitudes and perceptions related to this product. Related to this functional food products, the effective communication of nutrition and health information has been identified as consumer acceptance of functional foods (Aylin Büyükkaragöz, 2014). Among consumers, the knowledge, awareness and perceptions of older adults in relation to functional foods is of particular interest as this population could greatly benefit from the incorporation of functional foods into their diets. According to the (Paulionis, 2007) population segment the older adult population segment is rapidly increasing, with projections of those >65 years old in Canada increasing from 4.2 to 9.8 million between 2005 and 2036 and comprising up to 25% of the Canadian population by 2041. In parallel, chronic age-related diseases such as cardiovascular disease, cancer, osteoporosis and age-related macular degeneration are also increasing, posing a significant burden on the health care system. Functional foods, with their bioactive constituents, are a potential strategy to mitigate the increased risk of chronic disease among older adults. Since the older adult population interacts more frequently with health care providers, there is a need for an understanding of older adults’ awareness and perceptions of functional foods to inform proper advice in regards to functional foods and health. The Consumer knowledge towards Nutrition and health information, has the potential to influences acceptance of functional food products by communicating the health benefits of such products (Ibrahim, A Study of Nutritional Awareness of Jordanians' Consumers towards Functional Foods, 2016).Against this literature background, the question arises whether the consumer knowledge towards functional foods influences the willingness to buy functional foods. Hypothesis 1: The higher the consumer knowledge towards functional foods higher the wiliness to buy functional foods.

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Moreover, the sociodemographic criterion education level seems to influence the functional foods awareness (Ibrahim, 2016).Thereby, education incorporates nutritional information leading to higher nutritional knowledge (K. Parmenter, 2000). Consumer with higher educational level seem to be more acquainted with the use of several information sources as newspapers, magazines and social media resulting also in a higher nutritional. As more educated consumers seem to be more likely able to understand complex relationships od diet and diseases, this may also lead to a higher nutritional knowledge. Consumer with educational background will consider that consumer will have the more nutrition knowledge (L.Axelson1DavidBrinberg2, 1992). Nutrition knowledge, broadly defined refers to knowledge of concepts related to the nutrition and health including knowledge of diet and health, diet and diseases, foods representing major sources of nutrients, and dietary guidelines and recommendations (Lisa M. Soederberg Millera, 2015) For example, knowledge of the relationships between diet and cancer may consumer to focus on fibre information presented on the nutrition label and whole grains in the ingredient list. Knowledge of dietary recommendations may support applying these pieces of nutrition information to decide whether the food product represents a healthful choice within the context of other foods the individual consumes that day. Based on this the second hypothesis can be derived. Hypothesis 2: The higher the education level of a consumer is the higher willingness to buy functional foods Previous studies revealed many factors that influence functional food choices among consumers. In general, consumers consider health and wholesomeness as important aspects of food quality, therefore expecting to have high appreciation for functional food. As pointed out, according to the (Hamm, 2010) health is one of the main variables in the study of consumer behaviour towards functional foods. Consumers prefers products that claim health benefits. Some authors highlight how health knowledge increases the likelihood little interest in these functional foods and poor knowledge implies little interest in these functional foods, even if there is a relationship between the concepts of healthiness and good taste (G. Ares, 2007). On the basis of (Downes, 2008) proposal model, a healthy lifestyle can have an effect on the attitude or consumption of functional foods. This study poses the existence of motivators and barriers to healthy lifestyle. Thus (Downes, 2008) sates that a healthy lifestyle involves the performance of physical activity certain dietary habits. In summary, a positive relationship between the health motivation and the attitude towards functional foods is presented. The general interest in health issues lead to a specific health motivation. According to the (Žeželj I 1, 2012) the main reason to buy functional foods is following: prevention health problems or health hazards as well as the concern about these problems considering the own situation and the situation of related people like relatives and friends. Furthermore, the risk perception motivates consumers to increases their efforts in information search (Gaston ares, 2007). With a higher interested in health and a higher motivation regarding prevention the frequency of information usage in terms of nutritional knowledge. A higher the information usage in turn may results in a higher nutritional knowledge (Lisa M. Soederberg Millera, 2015).Subsequently, the question arises weather consumer health motivation of prevention shows an impact on consumers’ willingness to use functional foods. Hypothesis 3: The higher the health motivation of consumers is the higher is the willingness to buy functional foods

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In order to interpret consumer opinions in a sound theoretical framework, it is necessary to articulate the analytical reference points. Such positions are provided by the theory of planned behaviour (TPB) which is widely utilised to predict an individual's likelihood of adopting a particular behaviour. It is an extension of the theory of reasoned action, by taking into consideration an individual's perceived self-efficacy or sense of control to allow the performance of a particular behaviour (Ajzen, 1991). The TPB implies that an individual's intention to perform a behaviour is influenced by one's attitude towards adopting the behaviour, an evaluation of the subjective norms or social influence of others who may encourage/discourage such a behaviour and an individual's perception of the level of control in their ability to adopt the behaviour (Ajzen, 1991). Normative beliefs (reflecting the social influences of others relevant to the behaviour and an individual's motivation to comply with such an influence) according to the (Ajzen, 1991). Communication with family members as well as friends leads to spreading the information and knowledge about the functional foods. Furthermore, the incorporation of these foods into the diet depended on overall acceptance by the family unit. Similarly, the opinions expressed by friends appeared to be important in exposing consumers to functional foods products. Medical and health professional opinion was also an important factor, which nutritionists regarded as an independent source of information (Deborah J Nolan-Clark1Email author, 2011). Many consumers considered independence very important to creditability, along with scientific evidence for claims, even though they found it difficult to interpret and evaluate scientific results. In general, the normative belief and health profession advice leads to use of functional foods (CRAIG S. PATCH, LINDA C. TAPSELL, & PETER G. WILLIAMS, 2003). Health-care professionals are not solely professionals; they are also consumers with disparate attitudes to and beliefs in foods and in functional foods. Their attitudes towards the safety and the efficiency of functional foods could influence their attitudes on whether or not to recommend these foods. There are, however, few studies on health-care professionals´ attitudes towards functional foods, and they reveal incongruent results. Dieticians and physicians state that eating a balanced diet is the primary way of getting nutrients and, without further scientific information, they are reluctant to recommend functional foods to patients. In other studies, dieticians expressed positive attitudes toward functional foods and perceived them as effective and safe in the prevention and treatment of illnesses and, therefore, needed (N. De Jong, 2004). Hypothesis 4 & 5: The higher the normative beliefs and advices from heath profession higher the willingness to buy functional foods. In the literature, there are several ways described age and consumer knowledge toward functional foods influences the willingness to buy functional foods (Gaston ares, 2007). Gaston Ares (2005) argued that with increasing age consumer have more health problems. As a results with age diets become more restricted and nutritional knowledge and awareness as its antecedent increase (Gaston ares, 2007). As young consumers do not seem to be interested in health care issue, the health motivation increases with age. Young consumers’ nutritional knowledge is lower than in the group of middle agers, who become increasingly aware of disease related to diet. This leads to a higher involvement, and therefore their nutritional awareness and in consequence their knowledge their knowledge increases (K. Parmenter, 2000). Against this literature background consumer knowledge and age influences the willingness to use functional foods. This lead to hypothesis Hypothesis 6: The higher the age of consumer is the higher willingness to use functional foods.

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2.5 Attitudes towards functional foods

In the literature, there are servals ways described how a consumer’s attitudes towards functional foods can have a large effect on their decision to use functional foods. According to the (Gaston ares, 2007) consumers can only be expected to consider substituting convectional with functional foods if the latter perceived as comparatively healthy. Functional foods differ from the convectional foods. Consumer attitudes towards functional foods have different motivations to make certain food choice. Attitudes and lifestyle factors in addition to demographic factors such as gender, age of education, strongly affect the acceptability or intention to buy functional foods (Nina Urala, 2004). Earlier studies have reported that Indian consumers have quit positive attitude towards functional foods (Dr. Shikha Jain). In Asia, Indian consumers, for instance are found to be sceptical towards functional foods which they judge as unnatural and impure (Anand, 2016). Similar results on negative attitudes towards functional foods have been found in another study aiming to explore Swedish consumers’’ impressions of and perceived need for functional foods. It has been reported that a necessity for functional foods. It has been reported that a necessity for functional foods was perceived only when no other lifestyle changes were able to improve a person’s sate health (Landström E1, 2009). Finnish consumers accept functional foods more readily that heir India, American or Swedish counterparts (Bech-Larsen T1, 2003). Similar positive results have been found in Australia, attitude were significant determinates of non-users’ willingness to try functional foods (Erin L, 2009). Based on the above literature background consumer attitudes towards functional foods can influences the willingness to buy functional foods Hypothesis 7: Higher the attitude towards functional foods higher the willingness to buy functional foods 2.6 The lower the personal health status of consumer is the higher willingness to use

The general interest in health issue lead to a specific health motivation described for instance through the health motivation scale introduce by Jayanti and Burns (1998) including the following aspects: Functional food repair the damage caused by an unhealthy diet. Health concern influences the consumer’s food choice, whereas people with higher health concern make different food choice than those who are less concerned with health (Verbeke, Food Quality and Preference). Therefore, health is an important determinant for one’s food choice. The health factor contains statement related to the general well-being and nutrition of a person. Considering the second category of determinants, namely situational factors, consumers’ health status and health motivation seem to play an important role. Regarding the health status as first factor, it is evident that with a lower health status the visits to the doctor increase due to the treatment of diseases (Jürges, 2007). Therefore, the determinates health status focusses on curative aspects. During these relevant disease, e.g. fat consumption and cardiovascular diseases (Janice Tate, 1990). Consumer with lower health status and consequently more contacts to the doctor (Jürges, 2007) and offered more detailed information on the relationship nutrition and health (Janice Tate, 1990). Moreover, the health status reflects the personal relevance and thus, influences consumers, involvement, which in turn may increase consumers’ willingness to but functional foods due to the higher information search activity. This allows deducing the hypothesis Hypothesis 8: The lower the personal health status of a consumers is the higher is the willingness to buy functional foods

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3. Methods This chapter reports on the data sources as well as the applied methods and instruments for data collection. As previously explained that main purpose of the study is to provide an in-depth understanding of the relation between consumer willingness to buy functional foods and purchasing motives. Against the theoretical background, the study in this chapter uses a quantitative survey method to analyse Indian consumer willingness to buy functional foods or not. In the following, With the help of this articles and previous study in this filed are used in theoretical background to understand the new trend of convergence process as well as consumer purchase intention and behaviour towards functional foods. Secondly, the quantitative survey is designed to get better understand of Indian consumers. This study follows the structure shown in figure 3 depicting an overview of the thesis. 4.1 Participants To test objective of this study, a survey was conducted in bigger cities of India. A quantitative survey was distributed many parts of India like Mumbai, Delhi and Bangalore. To get general overview of population random peoples were selected through social contact as well as survey was conducted in food industry which are active in production of functional foods. Minimum 100 respondents were the target for the survey. Most of them are the employees in food companies or have graduate degree in food filed. To get overall balance in survey random peoples were also asked to fill survey. Random peoples like who don’t have any background with food field but have small knowledge towards health also asked to fill the survey. The data for quantitative study were obtained through an online survey. The participant were able to answer the questions at home and take all the time they need. This increases the response rate and data quality (A.E. Borner, 2007). The survey was advertised to social media like Facebook, email in order to reach many different people throughout the India. Most of the Facebook pages were groups were people sell items and discuss with each other, the members were people of different ages, regions, genders etcetera. Additionally, the link to survey was send by email to personal contacts. All respondents were asked to forward the survey to their social network, to obtain more respondent. A total of 85 Indian consumer’s respondents completed the online survey.

19

4.2 Quantitative survey design The quantitative survey questions made up of seven point and five point Likert-scale. Before starting the questionaries’ general information were included into the survey therefore consumer will understand the functional foods concepts. A photos of the products with visible brands of the products, were showed to the respondent (see the appendix). This photo will avoid possible confounders. The data collection questionnaire was made up of four parts. The first part asked about general information about functional foods (see the appendix) as well as the knowledge about functional foods. The second part comprised questions about the purchasing motivation and includes items concerning the participants experience of functional foods. Third part deal with the participant acceptance of functional foods. The questionnaire is a self-report inventory for which responded to 14 questions on a 5-point Likert scale. Last part asked about the socio-demographic characteristics. 4.2.1. Consumer attitude towards functional foods The first section of quantitative survey was created to understand and know about the responded attitudes towards functional foods. The consumer attitudes towards functional foods will help to understand that Indian consumers are fully aware of functional foods and its side effect on our body. The first section was made up of 14 questions on 7-point Likert’s scale (see the appendix A). 4.2.2. Willingness to use functional foods Second section of quantitative survey was followed by willingness to use functional foods. In order to find out that Indian consumer will try or not different types of functional food products second section was created. 10 different types of functional food categories like breakfast cereals, healthy snacks, fortified energy drinks were asked in this section. The section was made up on 10 questions on 5point Likert’s scale (see the appendix A). 4.2.2. Consumer purchase intension towards functional foods The last section of quantitative survey was consumer purchase intention towards functional foods. In order to get roughly overview of Indian consumers purchase intention towards functional foods questions were asked to the responded. The last section was made up of 14 questions on 5- point Likert scale (see the appendix A). 4.2.4. Socio-demographic The main purpose of sociodemographic section was to get little more information about the responded. It will help to get more information about consumers like consumers age, educational background and annually income. This will help to get a rough overview on Indian consumers who filled the survey from different age groups and different gendered.

20

4.3 Procedure The research took place in India. Therefore, the survey was conducted in English. To avoid possible, bless, the participants were recruited without informing about the aim of the thesis. The survey was designed with use of Qulatrics platform. The participants were asked to rate 44 questions. Each statement was linked to willingness to buy functional foods. Finally, the respondents were thanked and their response was saved. The complete survey is attached in appendix A.

Fig. 2. Conceptual model showing the determinants on willingness to buy functional foods as well

as relation between the determinants

Willingness to use for functional foods

Consumer Attitude towards functional foods 1.Knowledge of nutrition and health 2.Knowledge of Functional foods 3.Sources of nutrition information 4.Normative beliefs 5.Social contacts (Family, colleagues, doctor) 6. Willingness to use different functional foods categories

Product attributes 1.Perception of sensory 2. Attributes 3.Appearance 4.Aroma 5.Taste 6.Texture

21

4. Data

The purpose of this study is to determine whether consumer is willingness to use functional foods in India. For this study quantitative analysis were used to operationalized and measure the willingness to use motives with the online survey. Quantitative survey consists of four parts with 5-point and 7-point Likert scale. In this sections all data will be described according to the respondent’s demographic. Consumers’ willingness to buy functional foods was measured based on the seven chosen functional food products. Consumers were asked to sate weather functional food products is unknown, little known, known or well known, tasted this product, used once a month, once a week and use this product daily (see the appendix A). This all options are arranged from 1 to 8 scale. A sum score was build summing up all awareness values of the seven different products for each consumer. In doing so, the sum score for each consumer can reach from 1 to 8 scale. Considering the socio-demographic criteria, age was measured in years and education on three levels: basic 10 years’ education, high school and university level education. Furthermore, the three separate section were asked to analyses were Indian consumers’ is willingness to buy functional foods. The knowledge about functional foods were asked in first section with 7-point Likert scale (see the appendix). The coefficient of interval consistency Cronbach’s alpha was 0.786 regarding the knowledge about functional foods scale. The second determinate willingness to use functional foods was based on 10 different types of functional foods. Answers were given on 5-point Likert scale reflecting the level of agreement to the statements. The coefficient of interval consistency Cronbach’s alpha was 0.829 with regard willingness to buy scale (see the appendix B). The third determinant purchase intention summarised within a formative 14 questions were asked. The coefficient of interval consistency Cronbach’s alpha was 0.829 with regard to willingness to use functional foods. 5.1 Socio-demographic characteristics To carry out this study randomly responded were selected from the social media, they were asked if they would like to answer to a questionnaire related to functional foods. A total 85 responded from all over the India returned the completed survey. The demographic summary statistics of the study participants are presented in Table 1. About 65.5% of the respondent were males, and 34.5% were females. A slight majority of respondents were male than the females. Respondent represented with different age groups. Respondents ages 25-44 formed the largest group at 52.7%. About 47.3% were aged 24 years or younger. Most of the respondent are between 25-44 age groups. In terms of education level, most respondents have followed university education 96.4% and have an obtained bachelor degree or master degree. About one quarter of respondent 25.5% had a personal monthly income which is less than 20,000 INR. Respondent with an income of between 21,000 INR to 75,000 INR made up 14.5% and 12.7%. Only 47.3% respondent have high monthly income 80,000+ INR.

22

Table 1. Frequency distribution of the demographic characteristics of survey respondents

Characteristics of

respondents

Category

Frequency

Percentage

Gender

Male

34.5

65.5

Female

19

34.5

Age

18-24

26

47.3

25-44

29

52.7

Annual Income

Less than 20,000 INR

14

25.5

21,000-39,000 INR

8

14.5

40,000-59,000 INR

2

3.6

60,000-75,000 INR

5

9.1

80,000+ INR

26

47.3

Level of education

High School

2

3.6

23

University

53

96.4

5.2 Correlation on consumer attitude towards functional foods The attitude towards functional foods was tested in two parts. First part content the seven point Likert-scale and second part content five part Likert-scale (see the appendix A) The correlation between two variables reflected the degree to which the variables are related. The strength of the relationship is measured by the value range from -1.00 to 1.00. The value 0 describes no association between variables and 1 is complete positive and -1 indicates complete negative association existing between variables. Therefore, correlation analysis between independent and dependent variables were performed. The willingness to buy functional foods are dependent variables and consumer attitudes towards functional foods (knowledge, purchase intention) are the independent variables. All Cronbach Alpha’s of the consumer knowledge towards functional foods and willingness to buy functional foods are >.70 which indicates good reliability for the results (see the appendix B). The attitude towards functional foods consist of two parts one is knowledge about functional foods and second one is about attitude towards purchase functional foods. Both variables were tested with Pearson correlation and shows significant relationship, hence we can sure the test is reliable. Table 2 represent the correlation test result of attitude towards functional foods. In this table the Mean ATFQ10_11, Mean ATFQ14_15RE and Mean ATF_7_8_18 represents the first and last question of the attitude towards functional foods. The item in table 2 were not selected randomly. Before getting the good results on correlation test above items were recoded and merged to get high correlation between the attitudes towards functional foods. The Pearson correlation coefficient was >=0.70 respectively. Table 2. Correlation test (consumer attitude towards functional foods)

Correlations

24

Functional

foods can

repair the

damage

caused by

an

unhealthy

diet

I actively

seek out

information

about

functional

foods

It is great

that modern

technology

allows the

developmen

t of

functional

foods

Functional

foods are

consumed

mostly by

people who

have no

need for

them

Using

functional

foods is

completely

safe

MeanATFQ

10_11

MeanATFQ

14_15REC

MeanATF_

7_8_18

Functional foods can

repair the damage

caused by an

unhealthy diet

Pearson Correlation 1 ,321* ,433** ,036 ,289* ,638** ,011 ,567**

Sig. (2-tailed) ,017 ,001 ,794 ,032 ,000 ,938 ,000

N 55 55 55 55 55 55 55 55

I actively seek out

information about

functional foods

Pearson Correlation ,321* 1 ,323* -,102 ,178 ,600** ,114 ,589**

Sig. (2-tailed) ,017 ,016 ,460 ,194 ,000 ,407 ,000

N 55 55 55 55 55 55 55 55

It is great that modern

technology allows the

development of

functional foods

Pearson Correlation ,433** ,323* 1 -,148 ,187 ,393** ,028 ,457**

Sig. (2-tailed) ,001 ,016 ,280 ,171 ,003 ,841 ,000

N 55 55 55 55 55 55 55 55

Functional foods are

consumed mostly by

people who have no

need for them

Pearson Correlation ,036 -,102 -,148 1 -,081 -,105 -,635** -,172

Sig. (2-tailed) ,794 ,460 ,280 ,555 ,446 ,000 ,210

N 55 55 55 55 55 55 55 55

Using functional foods

is completely safe

Pearson Correlation ,289* ,178 ,187 -,081 1 ,345** ,130 ,475**

Sig. (2-tailed) ,032 ,194 ,171 ,555 ,010 ,346 ,000

N 55 55 55 55 55 55 55 55

MeanATFQ10_11 Pearson Correlation ,638** ,600** ,393** -,105 ,345** 1 ,123 ,685**

Sig. (2-tailed) ,000 ,000 ,003 ,446 ,010 ,372 ,000

N 55 55 55 55 55 55 55 55

MeanATFQ14_15RE

C

Pearson Correlation ,011 ,114 ,028 -,635** ,130 ,123 1 ,136

Sig. (2-tailed) ,938 ,407 ,841 ,000 ,346 ,372 ,323

N 55 55 55 55 55 55 55 55

MeanATF_7_8_18 Pearson Correlation ,567** ,589** ,457** -,172 ,475** ,685** ,136 1

Sig. (2-tailed) ,000 ,000 ,000 ,210 ,000 ,000 ,323

N 55 55 55 55 55 55 55 55

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

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5. Results 6.1 Regression analysis In order to investigate consumers are willingness to use functional foods simple linear regression analysis was performed. A regression describes and evaluates the relation between a given dependent variable and one or more independent variables. Earlier research focusing on similar subject has found significant results using regression analysis. One can therefore assume that regression analysis is an appropriate statistical method in order to confirm or disconfirm the chosen hypotheses. A regression analysis was conducted to investigate possible significant relationship between consumer’s knowledge towards functional foods and the willingness to buy functional foods. After examined the relation between the independent and dependent variables and study suggested a string relation between knowledge of consumers towards functional foods and willingness to use functional foods (r2= 755, Sig.=.000) (see the appendix D). Table 3. Linear regression analysis

Model

B

St. Error

b

Significance

Functional foods can repair the damage caused by an unhealthy diet.

.139

.054

.350

,015

I actively seek out information about functional foods.

.120

.064

.246

,072

Functional foods are consumed mostly by people who have need for them.

.087

.047

.235

,073

Recommended by health professional & Personal Health Issues

.115

0.50

.290

,026

After running the regression analysis results were that four points of knowledge towards functional foods (functional foods can repair the damage caused by an unhealthy diet, I actively seek out information about functional foods, Functional foods are consumed mostly by people who have need for them and Recommended by health professional & Personal Health Issues) had a relationship with the willingness to use functional foods (p<.05). Therefore, the four relations between knowledge towards functional foods and the willingness to use functional foods are presents in the appendix D. Regression equation with a p-value of 0.000>0.005 provided that the variables attitude and wiliness significant proctors of willingness of consumer to use functional foods. Functional foods can repair the damage caused by an unhealthy diet is the important for the respondents. This means that Indian consumer is likely to use functional foods and main motive behind that is functional foods repair the damage. The most important direct factor was consumer health attitude. For that reason, the regression analysis results support the hypothesis. Higher the health motivation is the higher is consumer’s willingness

26

to use functional foods. This implies that if consumer having attitude towards his or her health then more often will use different types of functional foods. Hypothesis 1: The higher the consumer knowledge towards functional foods higher the wiliness to buy functional foods was tested and we can be related this hypothesis with result in table 3 Functional foods can repair the damage caused by an unhealthy diet. Likewise, for Hypothesis 2: The higher the education level of a consumer is the higher willingness to buy functional foods can be related to I actively seek out information about functional foods. Hypothesis 3 is also tested The higher the health motivation of consumers is the higher is the willingness to buy functional foods are correlated to Functional foods are consumed mostly by people who have need for them. To determine the Hypothesis 4 & 5: The higher the normative beliefs and advices from heath profession higher the willingness to buy functional foods regression analysis was conducted and it also shoes that the Recommended by health professional & Personal Health Issues Were correlated to hypothesis 4 and 5 respectively. 6.2 Reliability analysis regression model Regression model for aggregated in-depended variables is in below table 4. The significant value for knowledge of consumer on functional foods as p= 0.000 < 0.005 and products attributes of consumers on functional foods is p= 0.000 < 0.005. which means willingness to use functional foods solely depended on knowledge and attributes. Table 4. Model summary

Model

R

R square

Adjusted R square

Std. error of the

estimate

1 .

765a

.585

.569

.41996 58.5% of willingness by a consumer to use functional foods Is explained by their r knowledge and products attributes Table 8. ANOVAa

Model

Sum of square

df

Mean square

F

Sig.

Regression

12.929

2

6.464

36.653

.000b

Residual

9.171

52

.176

Total

22.100

54

27

Correlation test between knowledge and attributes <0.5

Correlations

Mean_ATFQ Mean_ATPQ Mean_ATFQ Pearson Correlation 1 .532**

Sig. (2-tailed) .000 N 55 55

Mean_ATPQ Pearson Correlation .532** 1

Sig. (2-tailed) .000 N 55 55

**. Correlation is significant at the 0.01 level (2-tailed).

28

7. Conclusion The aim of this research was to investigate the Indian consumer willingness to use functional foods and to analyse cross-industry collaboration in the convergence of food and pharmaceutical sectors. In order to analyse cross industry collaboration top leading companies were selected for the qualitative survey. But, due to some privacy and personal policy problems these companies refuse to share information about industry collaboration. Out of two research one research were conducted. The outcomes of the consumer survey showed that four different attitudes (functional foods can repair the damage caused by an unhealthy diet, I actively seek out information about functional foods, Functional foods are consumed mostly by people who have need for them and Recommended by health professional & Personal Health Issues) influenced the willingness to buy functional foods. There was no correlation between the other attitudes towards functional foods and willingness to use functional foods. A higher score on functional foods can repair the damage caused by an unhealthy diet correlated with a higher willingness to use functional foods. A higher score on either functional foods are completely unnecessary and the growing number of functional foods on the market is a bad trend for the future with lower willingness to use Whereas different researcher also concluded that functional food promotes the health and reduce the risk of diseases (Michael Siegrist, 2008). These outcomes were correspondent to our results that a higher score on functional food can repair the damage. Furthermore, other attitudes had a mediating effect on willingness to use functional foods. In conclusion, there were a few attitudes related to willingness to use functional foods namely functional food can repair the damage caused by an unhealthy diet, functional foods are completely unnecessary and the growing number of functional foods on the market is a bad trend for the future. Overall these outcomes gave a new view on the consumer preferences on functional based products.

29

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Appendices

Quantitative analysis

Consumer knowledge towards functional foods 1.Knowledge of nutrition and health 2.Knowledge of Functional foods 3.Sources of nutrition information 4.Normative beliefs 5.Social contacts (Family, colleagues, doctor) 6. Willingness to use different functional foods categories

Product attributes 1.Perception of sensory 2. Attributes 3.Appearance 4.Aroma 5.Taste 6.Texture

Willingness to buy functional foods

35

A. Quantitate survey

Definition: “Foods or food components that may have health benefits that reduce the risk of specific diseases or other health concerns”

Company Core Description Product Description

Functional Foods Brands

Amul Dairy Fortified Energy Drinks

Probiotic Yoghurts and drinks

Health Drinks

Frozen Ice-cream with probiotics

Stamina, Nutramul Prolife, Flaavyo Amul Pro Sugar Free Probiotic, Profile

Nestle Dairy & Food Probiotic Yoghurts and drinks Infant Foods with probiotics Noodles with multi grains

Junior Daheez, ActiPlus Nan pro Maggi Vegetable Multigrainz Noodles

PepsiCo Food Breakfast Cereals Healthy Snacks Fortified Energy Drinks

Quaker Oats Aliva Gatorade

Britannia Dairy& Food Fortifies Energy Drinks High Fibre Biscuits

Actimind, TigerZor NutriChoice range

Dabur Food & Wellness Fruit and Vegetables Juice Ayurvedic Products

Real Active Range ChyawanPrakash, Honey NUTRIGO

Perfetti van Melle Confectionary Ayurvedic functional gum

Happydent

Yakult Danone Food Probiotics drinks Yakult

GSK Consumer Healthcare

Pharma & Nutraceuticals

Health drinks Horlicks, Boost, Maltova Viva

Godrej- Hershey’s Food Soya based health drinks

Sofit

36

Patanjali Retail Fruit and vegetables Juices Herbal Products Ayurvedic functional candies

Amla, Aloe Vera, Khus Sharbat Methi Pachak, Ajwain Pachak

Examples for functional food products and brand in India. I recognize the following type of functional food group. 1 = I do not recognize this product 2 = I recognize this product, but I have not tasted it anymore 3 = I have tasted this product, but I do not buy it 4 = I use this product as needed /seasonal 5 = I use this product monthly 6 = I use this product once a week 7 = I use this product every other day 8 = I use this daily

*PLEASE MARK ‘X’* Products 1 2 3 4 5 6 7 8

Yakult

(probiotics

drinks)

PepsiCo

Gatorade

(energy drink)

Nestle

Junior Daheez

Nestle Active plus

(probiotic dahl)

Britannia

(High fibre

biscuits)

NutriChoice

range

37

Attitude towards functional foods: *PLEASE CIRCLE* I agree with the following statement (1 = completely disagree and 7 = completely agree) 1.The idea that I can take care of my health by eating functional foods gives me pleasure completely disagree 1 2 3 4 5 6 7 completely agree 2. Functional foods promote my well-being completely disagree 1 2 3 4 5 6 7 completely agree 3. Functional foods can repair the damage caused by an unhealthy diet completely disagree 1 2 3 4 5 6 7 completely agree 4. I can prevent disease by eating functional foods regularly completely disagree 1 2 3 4 5 6 7 completely agree 5. Functional foods make it easier to follow a healthy lifestyle completely disagree 1 2 3 4 5 6 7 completely agree 6. I actively seek out information about functional foods completely disagree 1 2 3 4 5 6 7 completely agree 7. It is great that modern technology allows the development of functional foods completely disagree 1 2 3 4 5 6 7 completely agree 8. Functional foods are completely unnecessary completely disagree 1 2 3 4 5 6 7 completely agree 9. The growing number of functional foods on the market is a bad trend for the future completely disagree 1 2 3 4 5 6 7 completely agree 10. Functional foods are consumed mostly by people who have no need for them completely disagree 1 2 3 4 5 6 7 completely agree 11. Using functional foods is completely safe completely disagree 1 2 3 4 5 6 7 completely agree 12. I believe that functional foods fulfil their promises completely disagree 1 2 3 4 5 6 7 completely agree Willingness to use functional foods Willingness to use different functional foods categories on a 5-point scale (1 =Definitely not, 5 =Definitely yes).

Dabur (fruit and

vegetable juice)

Real Activ

Range

Amul

(Fortified

energy drink)

Nutramul

38

1.Probiotic yoghurt/ Dahi Definitely not 1 2 3 4 5 Definitely yes 2. Fortified Energy Drinks Definitely not 1 2 3 4 5 Definitely yes 3.Breakfast cereals Definitely not 1 2 3 4 5 Definitely yes 4.Frozen ice-creams with probiotics Definitely not 1 2 3 4 5 Definitely yes 5.Helathy snacks Definitely not 1 2 3 4 5 Definitely yes 6. High fiber biscuits Definitely not 1 2 3 4 5 Definitely yes 7.Soya based health drink Definitely not 1 2 3 4 5 Definitely yes 8. Ayurvedic functional candies Definitely not 1 2 3 4 5 Definitely yes 9.Ayurvedic functional gums. Definitely not 1 2 3 4 5 Definitely yes 10. Infants foods with probiotics Definitely not 1 2 3 4 5 Definitely yes Attitudes towards purchase of Functional foods THE FOLLOWING HAS AFFECTED YOUR PURCHASE OF FF PRODUCTS: (1 = Not effective at all & 5 =Extremely effective) 1.Functional Foods (FF) has become fashionable Strongly effective 1 2 3 4 5 Extremely effective 2. Easier to find in store Strongly effective 1 2 3 4 5 Extremely effective 3. More options available Strongly effective 1 2 3 4 5 Extremely effective 4. Better Quality Strongly effective 1 2 3 4 5 Extremely effective 5. Taste Strongly effective 1 2 3 4 5 Extremely effective 6. Convenience Strongly effective 1 2 3 4 5 Extremely effective 7. Price Strongly effective 1 2 3 4 5 Extremely effective 8. Attractive Package Strongly effective 1 2 3 4 5 Extremely effective 9.Information given on label Strongly effective 1 2 3 4 5 Extremely effective 10. Familiarity and Security Strongly effective 1 2 3 4 5 Extremely effective 11. Trust Product Strongly effective 1 2 3 4 5 Extremely effective 12. Healthy option (makes a difference to my health e.g. weight loss, strengthen bones) Strongly effective 1 2 3 4 5 Extremely effective 13. Personal Health Issues (e.g. heart, bone, gut issues) Strongly effective 1 2 3 4 5 Extremely effective 14. Recommended by health professional Strongly effective 1 2 3 4 5 Extremely effective

39

Are you aware of The Food Safety and Standards Authority of India (FSSAI)? Yes No Attitudes towards safety WOULD YOU SAY FUNCTIONAL FOODS (FF) REGULATIONS & LABELLING ARE: Dishonest 1 2 3 4 5 6 7 Honest Untrustworthy 1 2 3 4 5 6 7 Trustworthy Unclear 1 2 3 4 5 6 7 Clear Unappealing 1 2 3 4 5 6 7 Appealing Inadequate 1 2 3 4 5 6 7 Adequate Very unimportant 1 2 3 4 5 6 7 Very Important General questions 1.Age 2. Gender 18-24 Male 25-44 Female 45-64 65+ 3.Annual household income (in rupees) less than 20,000/Rs 21,000-39,000 Rs 40,000-59,000 Rs 60,000-79,000 Rs 80,000+ Rs 4. Level of education Basic 10 years’ education High school University

40

B. Cronbach’s alpha test

1 Knowledge towards functional foods.

Cronbach's Alpha

Cronbach's Alpha Based on

Standardized Items N of Items

.786

.805

12

2 Willingness to buy functional foods.

Cronbach's Alpha

Cronbach's Alpha Based on

Standardized Items

N of Items

.829

.830

9

3.Purchse intension towards functional foods.

Cronbach's Alpha

Cronbach's Alpha Based on

Standardized Items

N of Items

.891

.894

14

41

C. Correlation test on purchase intention towards functional foods.

Correlations

Functio

nal

Foods

(FF)

has

become

fashion

able

Easier

to find

in store

More

options

availabl

e

Better

Quality Taste

Conven

ience Price

Attracti

ve

Package

Persona

l Health

Issues

(e.g.

heart,

bone,

gut

issues)

Recom

mended

by

health

professi

onal

MeanA

TP38_3

9_40_4

1

Functional

Foods (FF) has

become

fashionable

Pearson

Correlation 1 ,429** ,393** ,420** ,237 ,246 -,111 ,336* ,495** ,094 ,297*

Sig. (2-tailed) ,001 ,003 ,001 ,082 ,071 ,420 ,012 ,000 ,496 ,027

N 55 55 55 55 55 55 55 55 55 55 55

Easier to find

in store

Pearson

Correlation ,429** 1 ,438** ,432** ,203 ,498** ,214 ,301* ,364** ,131 ,162

Sig. (2-tailed) ,001 ,001 ,001 ,138 ,000 ,117 ,026 ,006 ,340 ,237

N 55 55 55 55 55 55 55 55 55 55 55

More options

available

Pearson

Correlation ,393** ,438** 1 ,508** ,217 ,379** ,258 ,140 ,506** ,280* ,390**

Sig. (2-tailed) ,003 ,001 ,000 ,111 ,004 ,057 ,309 ,000 ,038 ,003

N 55 55 55 55 55 55 55 55 55 55 55

Better Quality Pearson

Correlation ,420** ,432** ,508** 1 ,386** ,410** ,328* ,360** ,617** ,319* ,612**

Sig. (2-tailed) ,001 ,001 ,000 ,004 ,002 ,015 ,007 ,000 ,017 ,000

N 55 55 55 55 55 55 55 55 55 55 55

Taste Pearson

Correlation ,237 ,203 ,217 ,386** 1 ,535** ,353** ,545** ,446** ,062 ,514**

Sig. (2-tailed) ,082 ,138 ,111 ,004 ,000 ,008 ,000 ,001 ,655 ,000

N 55 55 55 55 55 55 55 55 55 55 55

Convenience Pearson

Correlation ,246 ,498** ,379** ,410** ,535** 1 ,604** ,408** ,433** ,314* ,519**

Sig. (2-tailed) ,071 ,000 ,004 ,002 ,000 ,000 ,002 ,001 ,020 ,000

42

N 55 55 55 55 55 55 55 55 55 55 55

Price Pearson

Correlation -,111 ,214 ,258 ,328* ,353** ,604** 1 ,303* ,311* ,204 ,541**

Sig. (2-tailed) ,420 ,117 ,057 ,015 ,008 ,000 ,025 ,021 ,135 ,000

N 55 55 55 55 55 55 55 55 55 55 55

Attractive

Package

Pearson

Correlation ,336* ,301* ,140 ,360** ,545** ,408** ,303* 1 ,268* ,130 ,531**

Sig. (2-tailed) ,012 ,026 ,309 ,007 ,000 ,002 ,025 ,048 ,344 ,000

N 55 55 55 55 55 55 55 55 55 55 55

Personal

Health Issues

(e.g. heart,

bone, gut

issues)

Pearson

Correlation ,495** ,364** ,506** ,617** ,446** ,433** ,311* ,268* 1 ,065 ,603**

Sig. (2-tailed) ,000 ,006 ,000 ,000 ,001 ,001 ,021 ,048 ,636 ,000

N 55 55 55 55 55 55 55 55 55 55 55

Recommended

by health

professional

Pearson

Correlation ,094 ,131 ,280* ,319* ,062 ,314* ,204 ,130 ,065 1 ,180

Sig. (2-tailed) ,496 ,340 ,038 ,017 ,655 ,020 ,135 ,344 ,636 ,189

N 55 55 55 55 55 55 55 55 55 55 55

MeanATP38_3

9_40_41

Pearson

Correlation ,297* ,162 ,390** ,612** ,514** ,519** ,541** ,531** ,603** ,180 1

Sig. (2-tailed) ,027 ,237 ,003 ,000 ,000 ,000 ,000 ,000 ,000 ,189

N 55 55 55 55 55 55 55 55 55 55 55

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

D. Simple regression analysis

Regression Model summary

Model R R Square Adjusted R Square Std. Error of the

Estimate

1

,869a

,755

,621

,39369

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 16,675 19 ,878 5,662 ,000b

Residual 5,425 35 ,155

Total 22,100 54

43

Coefficients

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.

95.0% Confidence Interval for

B

B Std. Error Beta Lower Bound Upper Bound

1 (Constant) 2,137 ,550 3,884 ,000 1,020 3,254

Functional foods can repair

the damage caused by an

unhealthy diet

,139 ,054 ,350 2,546 ,015 ,028 ,249

I actively seek out

information about functional

foods

,120 ,064 ,246 1,857 ,072 -,011 ,251

It is great that modern

technology allows the

development of functional

foods

-,089 ,077 -,144 -1,150 ,258 -,246 ,068

Functional foods are

consumed mostly by people

who have no need for them

-,087 ,047 -,235 -1,849 ,073 -,183 ,009

Using functional foods is

completely safe ,048 ,048 ,111 ,999 ,325 -,050 ,147

MeanATFQ10_11 ,028 ,074 ,065 ,374 ,710 -,123 ,179

MeanATFQ14_15REC -,115 ,050 -,290 -2,322 ,026 -,216 -,014

MeanATF_7_8_18 ,031 ,086 ,058 ,357 ,723 -,144 ,206

Functional Foods (FF) has

become fashionable ,119 ,076 ,210 1,568 ,126 -,035 ,274

Easier to find in store -,054 ,085 -,090 -,640 ,526 -,227 ,118

More options available -,076 ,070 -,125 -1,089 ,284 -,219 ,066

Better Quality ,013 ,083 ,021 ,153 ,879 -,155 ,181

Taste ,057 ,092 ,084 ,622 ,538 -,129 ,243

Convenience ,066 ,091 ,111 ,728 ,472 -,119 ,251

Price ,015 ,078 ,029 ,195 ,847 -,144 ,175

Attractive Package ,094 ,078 ,150 1,202 ,238 -,065 ,252

44

Personal Health Issues (e.g.

heart, bone, gut issues) ,034 ,087 ,061 ,388 ,700 -,142 ,209

Recommended by health

professional ,032 ,055 ,063 ,581 ,565 -,080 ,144

MeanATP38_39_40_41 ,086 ,110 ,128 ,783 ,439 -,137 ,308

a. Dependent Variable: Mean Willingness

45

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