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Competing supplies of olive oil in the German market: An application of multinomial logit models

Author

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  • Ronald W. Ward

    (Food and Resource Economics, University of Florida, 1125 McCarty Hall, Gainesville, Florida 32611. E-mail: rwward@ifas.ufl.edu)

  • Julian Briz

    (Polytechnic University of Madrid, E.T.S.I. Agrónomos, Ciudad Universitaria, 28040 Madrid, Spain. E-mail: jbriz@eco.etsia.upm.es)

  • Isabel de Felipe

    (Polytechnic University of Madrid, E.T.S.I. Agrónomos, Ciudad Universitaria, 28040 Madrid, Spain)

Abstract

Germany consumers are shown to differentiate their use of olive oil by country-of-origin, with Spain, Italy, and Greece being important competing suppliers. Effects of demographics, product characteristics, and information sources impact the probability of buying olive oil by origin. Multinomial logit models are estimated and used to show the gains (or loses), and point to the important role of promotions to Spain's olive oil. The importance of these variables are ranked for each country and Odds Ratios are used to compare the relatives gains among the major suppliers. [EconLit citations: Q130, Q180]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 393-406, 2003.

Suggested Citation

  • Ronald W. Ward & Julian Briz & Isabel de Felipe, 2003. "Competing supplies of olive oil in the German market: An application of multinomial logit models," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 393-406.
    • Handle: RePEc:wly:agribz:v:19:y:2003:i:3:p:393-406
    DOI: 10.1002/agr.10068
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    References listed on IDEAS

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    3. Becker, Tilman, 1999. ""Country of origin" as a cue for quality and safety of fresh meat," 67th Seminar, October 28-30, 1999, LeMans, France 241034, European Association of Agricultural Economists.
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    1. Rodrigo Alejandro Romo-Muñoz & Juan Hernán Cabas-Monje & Héctor Manuel Garrido-Henrríquez & José María Gil, 2017. "Heterogeneity and nonlinearity in consumers’ preferences: An application to the olive oil shopping behavior in Chile," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-13, September.
    2. Mtimet, Nadhem & Ujiie, Kiyokazu & Kashiwagi, Kenichi & Zaibet, Lokman & Nagaki, Masakazu, 2011. "The effects of Information and Country of Origin on Japanese Olive Oil Consumer Selection," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114642, European Association of Agricultural Economists.
    3. Cicia, Gianni & Caracciolo, Francesco & Del Giudice, Teresa & Sannino, G. & Verneau, Fabio, 2013. "The Role of Sensory Profile in the Extra-Virgin Olive Oil Consumers Choice," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164738, International European Forum on System Dynamics and Innovation in Food Networks.
    4. Juan C. Gázquez-Abad & Manuel Sánchez-Pérez, 2009. "Factors influencing olive oil brand choice in Spain: an empirical analysis using scanner data," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 36-55.
    5. Eugenio POMARICI & Riccardo VECCHIO, 2013. "The Italian olive oil industry in the global competitive scenario," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(8), pages 361-372.
    6. Boto-García, David & Alvarez, Antonio, 2020. "Modelling the effect of store flyers on supermarket sales: An application to olive oil demand," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    7. Juan Jose Blazquez-Resino & Santiago Gutierrez-Broncano & Pedro Jimenez-Estevez & Israel Roberto Perez-Jimenez, 2021. "The Effect of Ethnocentrism on Product Evaluation and Purchase Intention: The Case of Extra Virgin Olive Oil (EVOO)," Sustainability, MDPI, vol. 13(9), pages 1-24, April.
    8. Panico, Teresa & Del Giudice, Teresa & Caracciolo, Francesco, 2014. "Quality dimensions and consumer preferences: A choice experiment in the Italian extra-virgin olive oil market," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-13.
    9. Riccardo Scarpa & Claudia Bazzani & Diego Begalli & Roberta Capitello, 2021. "Resolvable and Near‐epistemic Uncertainty in Stated Preference for Olive Oil: An Empirical Exploration," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 335-369, June.
    10. Corbeto-Fabón, Héctor & Kallas, Zein & Gil, José M., 2018. "Is the place of purchase important in shaping consumers’ preferences towards olive oil?," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    11. 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.
    12. Šárka Velčovská & Giacomo Del Chiappa, 2015. "The Food Quality Labels: Awareness and Willingness to Pay in the Context of the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(2), pages 647-658.
    13. Mtimet, Nadhem & Kashiwagi, Kenichi & Zaibet, Lokman & Masakazu, N., 2008. "Exploring Japanese olive oil consumer behavior," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44457, European Association of Agricultural Economists.
    14. Teresa Del Giudice & Carla Cavallo & Francesco Caracciolo & Gianni Cicia, 2015. "What attributes of extra virgin olive oil are really important for consumers: a meta-analysis of consumers’ stated preferences," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-15, December.
    15. Sadílek, Tomáš, 2019. "Bio‐economy, bio‐based, Q methodology, society, perspectives, innovation, sufficiency, living standard, Germany," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 10(02), April.
    16. Verbeke, Wim & Ward, Ronald W., 2003. "Importance of EU Label Requirements: An Application of Ordered Probit Models to Belgium Beef Labels," 2003 Annual meeting, July 27-30, Montreal, Canada 22077, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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