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Exploring quality and its value in the Italian olive oil market: a panel data analysis

Author

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  • Anna Carbone

    (Università degli Studi della Tuscia)

  • Luca Cacchiarelli

    (Università degli Studi della Tuscia)

  • Valentina Sabbatini

    (Università degli Studi della Tuscia)

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.

Suggested Citation

  • Anna Carbone & Luca Cacchiarelli & Valentina Sabbatini, 2018. "Exploring quality and its value in the Italian olive oil market: a panel data analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-15, December.
    • Handle: RePEc:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0102-8
    DOI: 10.1186/s40100-018-0102-8
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    3. Caracciolo, Francesco & Cavallo, Carla & Giudice, Teresa Del & Panico, Teresa & Vecchio, Riccardo & Cicia, Gianni, 2011. "Consumers (Dis)Preference for Bitterness in Extra Virgin Olive Oil: A Field Experiment," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 11(01), January.
    4. Susana López‐Bayón & Marta Fernández‐Barcala & Manuel González‐Díaz, 2020. "In search of agri‐food quality for wine: Is it enough to join a geographical indication?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 568-590, October.
    5. Ballco, Petjon & Gracia, Azucena, 2020. "Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    6. A. Malek Hammami & John C. Beghin, 2021. "The trade and welfare impacts of the U.S. retaliatory tariff on EU olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 807-818, September.
    7. Kamil Czwartkowski & Arkadiusz Wierzbic & Wojciech Golimowski, 2022. "Quality, Key Production Factors, and Consumption Volume of Niche Edible Oils Marketed in the European Union," Sustainability, MDPI, vol. 14(3), pages 1-17, February.
    8. Zemri, Bouazza Elamine & ari-Hassoun, Salaheddine S, 2024. "Sustainable Versus Conventional Olive Oil Production in Mediterranean Countries: A Panel Data Analysis," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 12(3), July.
    9. Anita Silvana Ilak Peršurić, 2020. "Segmenting Olive Oil Consumers Based on Consumption and Preferences toward Extrinsic, Intrinsic and Sensorial Attributes of Olive Oil," Sustainability, MDPI, vol. 12(16), pages 1-18, August.

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