Advertisement

Organic Agriculture

, Volume 9, Issue 4, pp 483–494 | Cite as

Assessing consumer preferences for organic vs eco-labelled olive oils

  • Giacomo Giannoccaro
  • Domenico CarlucciEmail author
  • Ruggiero Sardaro
  • Luigi Roselli
  • Bernardo C. De Gennaro
Article

Abstract

In this study, a choice experiment was performed to investigate consumer preferences and willingness to pay for a set of eco-labels on extra-virgin olive oil. Specifically, we tested three types of eco-labels indicating that the olive oil was (i) obtained from ancient trees, (ii) produced in mountainous areas, and (iii) obtained with sustainable water use. These three different eco-labels were analyzed in combination with the well-known organic label and other relevant attributes of extra-virgin olive oil. The choice experiment was based on a consumer survey carried out in Italy, the largest olive oil consuming country in the world, in January–February 2017. A market research agency recruited a nationally-representative total sample of 1061 participants who were involved in a web-based interview. Consumer choices were analyzed using a Random Parameter Logit model. The main result of the study is that, on average, Italian consumers are willing to pay a significant premium price for all the tested eco-labels on extra-virgin olive oil with the organic label being the most preferred eco-label. However, high heterogeneity in consumer preferences was also detected.

Keywords

Eco-labels Sustainability Olive oil Choice experiment Italy 

Notes

Funding

This study was funded by the EU through the Puglia Region: “Avviso aiuti a sostegno dei Cluster Tecnologici Regionali per l’Innovazione” – Progetto: “T.A.P.A.S.S. – Tecnologie Abilitanti per Produzioni Agroalimentari Sicure e Sostenibili” – codice PELM994.

References

  1. Aertsens J, Verbeke W, Mondelaers K, van Huylenbroeck G (2009) Personal determinants of organic food consumption: a review. Br Food J 111(10):1140–1167.  https://doi.org/10.1108/00070700910992961 CrossRefGoogle Scholar
  2. Andersen LM (2011) Animal welfare and eggs—cheap talk or money on the counter? J Agric Econ 62(3):565–584.  https://doi.org/10.1111/j.1477-9552.2011.00310.x CrossRefGoogle Scholar
  3. Aprile MC, Caputo V, Nayga RM Jr (2012) Consumers’ valuation of food quality labels: the case of the European geographic indication and organic farming labels. Int J Consum Stud 36:158–165.  https://doi.org/10.1111/j.1470-6431.2011.01092.x CrossRefGoogle Scholar
  4. Aschemann-Witzel J, Zielke S (2017) Can’t buy me green? A review of consumer perceptions of and behaviour toward the price of organic food. J Consum Aff 51(1):211–251.  https://doi.org/10.1111/joca.12092 CrossRefGoogle Scholar
  5. Boncinelli F, Contini C, Romano C, Scozzafava G, Casini L (2017) Territory, environment, and healthiness in traditional food choices: insights into consumer heterogeneity. Int Food Agribus Manage Rev 20:143–157.  https://doi.org/10.22434/IFAMR2015.0177 CrossRefGoogle Scholar
  6. Carlucci D, De Gennaro B, Roselli L, Seccia A (2014) E-commerce retail of extra virgin olive oil: an hedonic analysis of Italian SMEs supply. Br Food J 116:1600–1617.  https://doi.org/10.1108/BFJ-05-2013-0138 CrossRefGoogle Scholar
  7. Casini L, Contini C, Marinelli N, Romano C, Scozzafava G (2014) Nutraceutical olive oil: does it make the difference? Nutr Food Sci 44:586–600.  https://doi.org/10.1108/NFS-09-2013-0102 CrossRefGoogle Scholar
  8. Chan-Halbrendt C, Zhllima E, Sisior G, Imami D, Leonetti L (2010) Consumer preferences for olive oil in Tirana, Albania. Int Food Agribus Manage Rev 13:55–74Google Scholar
  9. Codron J, Siriex L, Reardon T (2006) Social and environmental attributes of food products in an emerging mass market: challenges of signaling and consumer perception, with European illustrations. Agric Hum Values 23:283–297.  https://doi.org/10.1007/s10460-006-9000-x CrossRefGoogle Scholar
  10. Del Giudice T, Cavallo C, Caracciolo F, Cicia G (2015) What attributes of extra-virgin olive oil are really important for consumers: a meta-analysis of consumers’ stated preferences. Agric Food Econ 3(1).  https://doi.org/10.1186/s40100-015-0034-5
  11. Di Vita G, D'Amico M, La Via G, Caniglia E (2013) Quality perception of PDO extra-virgin olive oil: which attributes most influence Italian consumers? Agric Econ Rev 14:46–58Google Scholar
  12. Garnett T, Appleby MC, Balmford A, Bateman IJ, Benton TG, Bloomer P, Burlingame B, Dawkins M, Dolan L, Fraser D, Herrero M, Hoffmann I, Smith P, Thornton PK, Toulmin C, Vermeulen SJ, Godfray HCJ (2013) Sustainable intensification in agriculture: premises and policies. Science 341:33–34.  https://doi.org/10.1126/science.1234485 CrossRefPubMedGoogle Scholar
  13. Godfray HCJ, Beddington JR, Crute IR, Haddad L, Lawrence D, Muir JF, Pretty J, Robinson S, Thomas SM, Toulmin C (2010) Food security: the challenge of feeding 9 billion people. Science 327:812–818.  https://doi.org/10.1126/science.1185383 CrossRefPubMedGoogle Scholar
  14. Gómez-Limón JA, Picazo-Tadeo AJ, Reig-Martínez E (2012) Eco-efficiency assessment of olive farms in Andalusia. Land Use Policy 29:395–406.  https://doi.org/10.1016/j.landusepol.2011.08.004 CrossRefGoogle Scholar
  15. Gracia A, de Magistris T (2008) The demand for organic foods in the south of Italy: a discrete choice model. Food Policy 33(5):386–396.  https://doi.org/10.1016/j.foodpol.2007.12.002 CrossRefGoogle Scholar
  16. Grunert KG (2011) Sustainability in the food sector: a consumer behaviour perspective. Int J Food Syst Dyn 2:207–218Google Scholar
  17. Grunert KG, Hieke S, Wills J (2014) Sustainability labels on food products: consumer motivation, understanding and use. Food Policy 44:177–189.  https://doi.org/10.1016/j.foodpol.2013.12.001 CrossRefGoogle Scholar
  18. IOC (International Olive Council) (2016) Statistical database on the world markets for olive oils. http://www.internationaloliveoil.org. Accessed 18 March 2018
  19. ISTAT (Istituto Nazionale di Statistica) (2014). More recent official data on resident population in the Italian municipalities—demographic balance. http://demo.istat.it/index_e.html. Accessed 13 December 2016
  20. Janssen M, Hamm U (2012) Product labelling in the market for organic food: consumer preferences and willingness-to-pay for different organic certification logos. Food Qual Prefer 25(1):9–22.  https://doi.org/10.1016/j.foodqual.2011.12.004 CrossRefGoogle Scholar
  21. Kalogeras N, Valchovska S, Baourakis G, Kalaitzis P (2009) Dutch consumers’ willingness to pay for organic olive oil. J Int Food Agribus Mark 21:286–311.  https://doi.org/10.1080/08974430802589782 CrossRefGoogle Scholar
  22. Kanninen BJ (2002) Optimal design for multinomial choice experiments. J Mark Res 39:214–227.  https://doi.org/10.1509/jmkr.39.2.214.19080 CrossRefGoogle Scholar
  23. Krinsky I, Robb AL (1986) On approximating the statistical properties of elasticities. Rev Econ Stat 68:715–719CrossRefGoogle Scholar
  24. Krystallis A, Chryssohoidis G (2005) Consumers’ willingness to pay for organic food: factors that affect it and variation per organic product type. Br Food J 107(5):320–343.  https://doi.org/10.1108/00070700510596901 CrossRefGoogle Scholar
  25. Krystallis A, Ness M (2005) Consumer preferences for quality foods from a south European perspective: a conjoint analysis implementation on Greek olive oil. Int Food Agribus Manage Rev 8:62–91Google Scholar
  26. Lancaster KJ (1966) A new approach to consumer theory. J Polit Econ 74:132–157CrossRefGoogle Scholar
  27. McFadden D (1986) The choice theory approach to market research. Mark Sci 5:275–297.  https://doi.org/10.1287/mksc.5.4.275 CrossRefGoogle Scholar
  28. McFadden D, Train K (2000) Mixed MNL models for discrete response. J Appl Econ 15:447–470CrossRefGoogle Scholar
  29. Menapace L, Colson G, Grebitus C, Facendola M (2011) Consumers’ preferences for geographical origin labels: evidence from the Canadian olive oil market. Eur Rev Agric Econ 38:193–212.  https://doi.org/10.1093/erae/jbq051 CrossRefGoogle Scholar
  30. Nash HA (2009) The European commission’s sustainable consumption and production and sustainable industrial policy action plan. J Clean Prod 17:496–498.  https://doi.org/10.1016/j.jclepro.2008.08.020 CrossRefGoogle Scholar
  31. Naspetti S, Zanoli R (2009) Organic food quality and safety perception throughout Europe. J Food Prod Mark 15(3):249–266.  https://doi.org/10.1080/10454440902908019 CrossRefGoogle Scholar
  32. Panico T, Del Giudice T, Caracciolo F (2014) Quality dimensions and consumer preferences: a choice experiment in the Italian extra-virgin olive oil market. Agric Econ Rev 15(2):100–112Google Scholar
  33. Pienkowski M, Beaufoy G (2000) The environmental impact of olive oil production in the European Union: practical options for improving the environmental impact. http://ec.europa.eu/environment/agriculture/pdf/oliveoil.pdf. Accessed 24 May 2018
  34. Prieto-Sandoval V, Alfaro JA, Mejía-Villa A, Ormazabal M (2016) Eco-labels as a multidimensional research topic: trends and opportunities. J Clean Prod 135:806–818.  https://doi.org/10.1016/j.jclepro.2016.06.167 CrossRefGoogle Scholar
  35. Risius A, Hamm U (2017) The effect of information on beef husbandry systems on consumers’ preferences and willingness to pay. Meat Sci 124:9–14.  https://doi.org/10.1016/j.meatsci.2016.10.008 CrossRefPubMedGoogle Scholar
  36. Risius A, Janssen M, Hamm U (2017) Consumer preferences for sustainable aquaculture products: evidence from in-depth interviews, think aloud protocols and choice experiments. Appetite 113:246–254.  https://doi.org/10.1016/j.meatsci.2016.10.008 CrossRefPubMedGoogle Scholar
  37. Roselli L, De Gennaro B, Cimino O, Medicamento U (2009) The effects of the health check of the common agricultural policy on Italian olive tree farming. New Medit 8:4–14Google Scholar
  38. Roselli L, Carlucci D, De Gennaro BC (2016) What is the value of extrinsic olive oil cues in emerging markets? Empirical evidence from the U.S. E-commerce retail market. Agribusiness 32:329–342.  https://doi.org/10.1002/agr.21454 CrossRefGoogle Scholar
  39. Roselli L, Carlucci D, Rover OJ, De Gennaro B (2018a) The effects of extrinsic cues on olive oil price in Brazil. J Int Food Agribus Mark 30:70–87.  https://doi.org/10.1080/08974438.2017.1387883 CrossRefGoogle Scholar
  40. Roselli L, Giannoccaro G, Carlucci D, De Gennaro B (2018b) EU quality labels in the Italian olive oil market: how much overlap is there between geographical indication and organic production? J Food Prod Mark 24:784–801.  https://doi.org/10.1080/10454446.2017.1413473 CrossRefGoogle Scholar
  41. Roselli L, Cicia G, Cavallo C, Del Giudice T, Carlucci D, Clodoveo ML, De Gennaro BC (2018c) Consumers’ willingness to buy innovative traditional food products: the case of extra-virgin olive oil extracted by ultrasound. Food Res Int 108:482–490.  https://doi.org/10.1016/j.foodres.2018.03.070 CrossRefPubMedGoogle Scholar
  42. Rover OJ, de Gennaro BC, Roselli L (2017) Social innovation and sustainable rural development: the case of a Brazilian agro-ecology network. Sustainability 9.  https://doi.org/10.3390/su9010003 CrossRefGoogle Scholar
  43. Salazar-Ordóñez M, Rodríguez-Entrena M, Cabrera ER, Henseler J (2018) Understanding product differentiation failures: the role of product knowledge and brand credence in olive oil markets. Food Qual Prefer 68:146–155.  https://doi.org/10.1016/j.foodqual.2018.02.010 CrossRefGoogle Scholar
  44. Scarpa R, Del Giudice T (2004) Market segmentation via mixed logit: extra-virgin olive oil in urban Italy. J Agric Food Ind Organ 2(1):141–160.  https://doi.org/10.2202/1542-0485.1080 CrossRefGoogle Scholar
  45. Schleenbecker R, Hamm U (2013) Consumers' perception of organic product characteristics. A review. Appetite 71:420–429.  https://doi.org/10.1016/j.appet.2013.08.020 CrossRefPubMedGoogle Scholar
  46. Thøgersen J, Haugaard P, Olesen A (2010) Consumer responses to ecolabels. Eur J Mark 44:1787–1810.  https://doi.org/10.1108/03090561011079882 CrossRefGoogle Scholar
  47. Thurstone LL (1927) A law of comparative judgment. Psychol Rev 34:273–286.  https://doi.org/10.1037/h0070288 CrossRefGoogle Scholar
  48. Tilman D, Cassman KG, Matson PA, Naylor R, Polasky S (2002) Agricultural sustainability and intensive production practices. Nature 418:671–677.  https://doi.org/10.1038/nature01014 CrossRefPubMedGoogle Scholar
  49. Train KE (2009) Discrete choice methods with simulation. Cambridge University Press, New YorkCrossRefGoogle Scholar
  50. Tsakiridou E, Mattas K, Tzimitra-Kalogianni I (2006) The influence of consumer characteristics and attitudes on the demand for organic olive oil. J Int Food Agribus Mark 18:23–31.  https://doi.org/10.1300/J047v18n03_03 CrossRefGoogle Scholar
  51. Van Loo EJ, Caputo V, Nayga RM Jr, Verbeke W (2014) Consumers’ valuation of sustainability labels on meat. Food Policy 49(1):137–150.  https://doi.org/10.1016/j.foodpol.2014.07.002 CrossRefGoogle Scholar
  52. Verain MCD, Bartels J, Dagevos H, Sijtsema SJ, Onwezen MC, Antonides G (2012) Segments of sustainable food consumers: a literature review. Int J Consum Stud 36:123–132.  https://doi.org/10.1111/j.1470-6431.2011.01082.x CrossRefGoogle Scholar
  53. Vermeir I, Verbeke W (2006) Sustainable food consumption: exploring the consumer “attitude - behavioral intention” gap. J Agric Environ Ethics 19:169–194.  https://doi.org/10.1007/s10806-005-5485-3 CrossRefGoogle Scholar
  54. Weissteiner CJ, Strobl P, Sommer S (2011) Assessment of status and trends of olive farming intensity in EU-mediterranean countries using remote sensing time series and land cover data. Ecol Indic 11:601–610.  https://doi.org/10.1016/j.ecolind.2010.08.006 CrossRefGoogle Scholar
  55. Yiridoe EK, Bonti-Ankomah S, Martin RC (2005) Comparison of consumer perceptions and preference toward organic versus conventionally produced foods: a review and update of the literature. Renew Agric Food Syst 20(4):193–205.  https://doi.org/10.1079/RAF2005113 CrossRefGoogle Scholar
  56. Zander K, Padel S, Zanoli R (2015) EU organic logo and its perception by consumers. Br Food J 117(5):1506–1526.  https://doi.org/10.1108/BFJ-08-2014-0298 CrossRefGoogle Scholar
  57. Zander K, Risius A, Feucht Y, Janssen M, Hamm U (2018) Sustainable aquaculture products: implications of consumer awareness and of consumer preferences for promising market communication in Germany. J Aquat Food Prod Technol 27(1):5–20.  https://doi.org/10.1080/10498850.2017.1390028 CrossRefGoogle Scholar
  58. Zanoli R, Scarpa R, Napolitano F, Piasentier E, Naspetti S, Bruschi V (2013) Organic label as an identifier of environmentally related quality: a consumer choice experiment on beef in Italy. Renew Agric Food Syst 28(1):70–79.  https://doi.org/10.1017/S1742170512000026 CrossRefGoogle Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.Department of Agricultural and Environmental SciencesUniversity of Bari “Aldo Moro”BariItaly

Personalised recommendations