Exploring quality and its value in the Italian olive oil market
Author(s)
Date Issued
2018
Type
article
Volume
6
Issue
6
Start Page
1
End Page
15
ISSN
21937532
Journal
Abstract
Olive oil markets, both traditional and new ones, are changing rapidly with vertical as
well as horizontal differentiation that increasingly play a role in featuring demand
and supply. The paper explores the role and effectiveness of different quality clues in
the creation of value in high segments of the Italian olive oil market by applying a
hedonic price model. Data come from one of the oldest and most reputed Italian
guides Flos Olei which reviews around 250 Italian producers and their products. The
study covers three production years (from 2012 to 2014) so that, besides the OLS
estimations, a panel data analysis is also conducted. Main results indicate that
consumers give value to features directly related to the product, as well as to the
raw material used and to the production process; also, the kind of producer and the
production area affect price. Moreover, the analysis shows the emerging role of
experts in releasing valuable information about quality. On the contrary, European
quality schemes, such as those for product origin and for organic production, do not
bring additional value to consumers in the explored high market segments.
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AFE2018 Carbone Cacchiarelli Sabbatini.pdf
Size
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Format
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Checksum (MD5)
301acf197c39577703375530bd4d03b9
Conference(s)
AGRICULTURAL AND FOOD ECONOMICS