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Abstract

This paper investigates consumer preferences for extra-virgin olive oil in Italy. In order to segment the Italian extra-virgin olive oil market, the information obtained from a nationwide survey was analysed by using a randomised parameter logit regression and implementing a cluster analysis on the estimates of consumers’ willingness to pay for origin of olives, production method and sensory attributes. Our results show that information on origin, both in terms of the adoption of PDO or PGI certification and labelling of the origin, production method and organoleptic characteristics crucially affect consumer preferences for olive oil. Market segmentation shows there are consumers who are particularly sensitive to origin and organic certification as well as labelling clarity.

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