Role of Nutrition Information is Influencing Consumer Choice Essay

Role of Nutrition Information is Influencing Consumer Choice - Essay Example ind out the level of awareness on the importance of labels on food products, and identify the factors that customers consider before purchasing a food product based on its label (Verduin, Agarwal and Waltman, 2005). Aim and Objectives The aim of the project is to understand the relationship of buying habits for food products as influenced by product labels. The objectives of the study include: To examine the behaviour of customers as they make purchases at a local supermarket To establish the level of customer awareness on the various requirements for food labelling To identify the relevant words that customers look for in labels when making choices on food products To determine the most significant details on food products to customers To identify if customers consider the health benefits of a food product or absence of health hazard before making a purchase To review literature on the effects of labels on customer choices when shopping for food products To discuss the reasons for t he choices that customers make after reading the labels on food products Literature Review Verduin, Agarwal and Waltman (2005: 2597) state that the consumer is the central player in the decisions that could help the nation reverse the obesity situation, and should be informed on the importance of keeping watch on the contents of foodstuffs that one consumes. In addition, the writers emphasise on the need for the food industry to be truthful in providing information to consumers, and adherence to other guidelines provided for ethical advertising. In addition, they assert that manufacturers should work in cooperation with the government (2610) and research institutions (2612); the government gives recommendations and enforces standards, while the research institutions ensure that the use of... This report stresses that this study is likely to encounter several limitations that may reduce its efficiency, and it has some shortcomings that may have a negative effect on the usability of the results for generalisation. First, the data collection approaches are expensive in terms of time and money, both of which may not be enough since the researcher may have other commitments. Second, the management of retail stores may not cooperate with the researcher, while customers may perceive the study as a waste of time or an infringement into their private lives. Third, the study makes many assumptions that may reduce the confidence level of the results; however, this can be countered by the use of secondary sources that allow the researcher to make exclusions and differentiations. One of the main assumptions is that a customer’s choice is informed by the contents of the label, and other factors, including price have little or no role to play. Finally, there is one ethical conce rn that the researcher has to deal with; observing customers and recording data without their knowledge may amount to doing research with people as subjects without their informed consent. Therefore, the researcher has to consult the ethics department of the institution before doing the study to clarify the matter. This essay makes a conclusion that the proposal is part of the process of preparing for a study, and every aspect of study must be cleared up to save on costs, identify potential obstacles and other unforeseen aspects of the study. The proposal must have the aims and objectives, and methodologies that will be used to answer the research question.

Financial part of group case study about material Assignment

Financial part of group case study about material - Assignment Example Generally, business firms require capital for meeting long term financial needs and for meeting working capital needs. Long Term Financial needs include cost for purchase of building and plant and machinery. Roberto (2007:2). This amount would remain blocked for more than one year. It may even remain blocked for the entire life of the project. Hence, the purchase of plant and machinery, Land and Building that is, Fixed Assets has to be funded through Long Term Sources of Finance. All these capital expenditure decisions involve huge investments, however the benefits of the same can be perceived in the Long Term only. Moreover, these expenses are irreversible in nature; this means that once the expenses are incurred they cannot be altered. Hence, these expenditures need to be planned carefully to avoid liquidity crises. The firm has planned to meet the Long Term Capital needs through Owner's Capital and long term debt from relatives. We conclude that this is a sound decision as it redu ces the liquidity risk. Firms also require capital for meeting short term financial requirements include working capital which means the capital required for meeting the short term cash requirements for purchase of raw materials etc. Robert (2001:3). These are generally held in form of cash, for meeting short term requirements. ... Moreover, money can be blocked in accounts receivables, customers to whom goods are sold on credit basis. Liabilities are economic obligations of a business towards others to pay money or provide goods or services. Ronald (1986:4). There may be short term liabilities which need to be paid such as accounts payables, bills payable, outstanding expenses etc. The current assets and liabilities have to be managed efficiently. The firm is kept 1000 for meeting working capital needs, in order to fund the purchase of raw material and meeting short term manufacturing expenses. Cost of Capital The capital of the firm includes 40,000 loan (debt) and 10,000 as owner's capital (equity). The cost of capital of a business is the minimum rate of return it should earn to satisfy the various categories of investors who have contributed to the capital of the company. We have to determine the Weighted Average Cost of Capital. Roger, Shannon (2008:5). Here, we take debt and equity as weights. The rate of return required by equity investors is higher than the return required by debt holders. This is because there more risk associated with equity capital than debt capital. The debt capital holders will receive a fixed interest income every year and the equity shareholders receive dividends only in case there is profit. Hence, the rate of return required by equity shareholders is assumed to be 20% and the interest cost on debt is @ 8% p a. The interest cost is tax deductible. Hence, it reduces the cost of capital significantly. The weighted average cost of capital (WACC) is determined by the following formula: D/(D+E) X Kd (1-T) + E/(D+E) X Ke Here, D = Debt Capital E = Equity Capital Kd= Interest rate on Debt T = Tax