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Consumer preferences for extra virgin olive oil with country-of-origin and geographical indication labels in Canada

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  • Menapace, Luisa
  • Colson, Gregory
  • Grebitus, Carola
  • Facendola, Maria

Abstract

This paper investigates the impact of geographical origin labels on consumers' preferences. Specifically, we consider the preferences of Canadian consumers for extra virgin olive oils marketed with country-of-origin labels (COOL) and geographical indications (GIs). In contrast to previous studies, by considering a third-country market (a market different from that where production occurs), we can look simultaneously at COOL and GIs and separate the impacts of these two forms of geographical origin labels. We find that, within the context of a high quality value-added commodity such as extra virgin olive oil, consumers value both COOL and GI labels. But, in terms of the fraction of consumers with positive preferences and willingness to pay, COOL labels are valued more by Canadian consumers compared to GI labels. To better account for taste heterogeneity among consumers, we partition the sample on the basis of consumers' choice of shopping location. We find that different consumer groups vary to a large degree in their relative valuations for COOL, GI, and organic olive oils.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6430.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6430

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Keywords: country of origin labeling; extra-virgin olive oil; geographical indications of origin; mixed logit; PDO/PGI; stated-choice experiments; Consumer/Household Economics; Demand and Price Analysis;

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Citations

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Cited by:
  1. Banterle, Alessandro & Cavaliere, Alessia & Ricci, Elena Claire, 2012. "Food Labelled Information: An Empirical Analysis," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 3(2).
  2. Ngokkuen, Chuthaporn & Grote, Ulrike, 0. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.
  3. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
  4. Grebitus, Carola & Jensen, Helen H. & Sebranek, Joseph G. & Roosen, Jutta & Anders, Sven, 2009. "Consumer preferences for ground beef packaged under a modified atmosphere," 2009 Conference, August 16-22, 2009, Beijing, China 51649, International Association of Agricultural Economists.
  5. Grebitus, Carola & Jensen, Helen H. & Roosen, Jutta, 2013. "US and German Consumer Preferences for Ground Beef Packaged Under a Modified Atmosphere: Different Regulations, Different Behavior?," Staff General Research Papers 36018, Iowa State University, Department of Economics.
  6. Banterle, Alessandro & Cavaliere, Alessia & Ricci, Elena Claire, 2012. "Food labelled Information: An Empirical Analysis of Consumer Preferences," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144960, International European Forum on Innovation and System Dynamics in Food Networks.
  7. Herbes, Carsten & Ramme, Iris, 2014. "Online marketing of green electricity in Germany—A content analysis of providers’ websites," Energy Policy, Elsevier, vol. 66(C), pages 257-266.
  8. 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.
  9. 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.

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