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Market Segmentation via Mixed Logit: Extra-Virgin Olive Oil in Urban Italy

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  • Scarpa Riccardo

    (University of York, U.K.)

  • Del Giudice Teresa

    (University of Naples, Italy)

Abstract

The paper presents some results from a stated-preference study that compares three samples of urban consumers of extra-virgin olive oil from three representative Italian cities: Naples (South), Rome (Centre) and Milan (North). A series of multinomial logit models are estimated from choice experiments responses and tested for unobserved heterogeneity for EU labelling informing on PDO/PGI, organic and place of origin attributes. The consequences of such form of heterogeneity are flashed out with respect to issues of market segmentation on the basis of the pattern of correlation across preferences as estimated from mixed logit models. Results indicate that product origin matters differently in different cities, while the sample from Naples is the least heterogeneous the Milan and Rome samples display highest taste heterogeneity, but also stronger intensity of taste.

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Bibliographic Info

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 2 (2004)
Issue (Month): 1 (August)
Pages: 1-20

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Handle: RePEc:bpj:bjafio:v:2:y:2004:i:1:n:7

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Cited by:
  1. Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
  2. Stasi, Antonio & Diotallevi, Francesco & Marchini, Andrea, 2012. "Strategie di prezzo e profittabilità nel mercato degli oli extra-vergine di oliva:un modello di analisi attraverso gli scanner data
    [Big And Small Producers, Private Label And Gdo’S Price Strate
    ," MPRA Paper 40449, University Library of Munich, Germany.
  3. Umberger, Wendy J. & Calkins, Chris R., 2008. "Korean Consumers’ Preferences and Willingness to Pay for Domestic versus U.S. and Australian Beef with Alternative Attributes," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6172, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Gracia, Azucena & Barreiro-Hurle, Jesus & Perez y Perez, Luis, 2011. "Consumers’ willingness to pay for biodiesel in Spain," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114605, European Association of Agricultural Economists.
  5. Menapace, Luisa & Colson, Gregory J. & Grebitus, Carola & Facendola, Maria, 2009. "Consumer Preferences for Country-Of-Origin, Geographical Indication, and Protected Designation of Origin Labels," Staff General Research Papers 13122, Iowa State University, Department of Economics.
  6. Marchini, Andrea & Onofri, Andrea & Diotallevi, Francesco & Angioli, Gianluca, 2010. "Profili strategici delle PMI: l’indagine RIOM
    [Strategic profiles of SME: RIOM survey]
    ," MPRA Paper 40704, University Library of Munich, Germany.
  7. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2008. "Consumer Preferences for Animal Welfare Attributes: Case of Gestation Crates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6062, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Caputo, Vincenzina & Aprile, Maria Carmela & Nayga, Rodolfo M., Jr., 2011. "Consumers’ Valuation for European food quality labels: Importance of Label Information Provision," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114324, European Association of Agricultural Economists.
  9. Marchini, Andrea & Diotallevi, Francesco, 2010. "Lo scenario competitivo degli oli extravergine di oliva nel canale della GDO," MPRA Paper 40483, University Library of Munich, Germany.
  10. Pascucci, Stefano & Magistris, Tiziana de, 2013. "Information Bias Condemning Radical Food Innovators? The Case of Insect-Based Products in the Netherlands," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 16(3).
  11. Cicia, Gianni & Del Giudice, Teresa & Ramunno, Ilaria & Tagliafierro, Carolina, 2006. "Splitting consumer's willingness to pay premium price for organic products over main purchase motivations," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10057, European Association of Agricultural Economists.
  12. Marchesini, Sergio & Hasimu, Huliyeti & Regazzi, Domenico, 2007. "Literature review on the perception of agro-foods quality cues in the international environment," 105th Seminar, March 8-10, 2007, Bologna, Italy 7892, European Association of Agricultural Economists.
  13. Mckendree, Melissa G.S. & Olynk Widmar, Nicole & Ortega, David L. & Foster, Kenneth A., 2013. "Consumer Preferences for Verified Pork-Rearing Practices in the Production of Ham Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
  14. Resano, Helena & Sanjuán, Ana I. & Albisu, Luis M., 2012. "Consumers’ response to the EU Quality policy allowing for heterogeneous preferences," Food Policy, Elsevier, vol. 37(4), pages 355-365.
  15. Anania, Giovanni & Pupo D'Andrea, Maria Rosaria, 2008. "The Global Market for Olive Oil: Actors, Trends, Policies, Prospects and Research Needs," Working Papers 6109, TRADEAG - Agricultural Trade Agreements.
  16. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
  17. Birol, Ekin & Roy, Devesh & Torero, Maximo, 2010. "How safe is my food?: Assessing the effect of information and credible certification on consumer demand for food safety in developing countries," IFPRI discussion papers 1029, International Food Policy Research Institute (IFPRI).

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