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What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market

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  • Luigi Roselli
  • Domenico Carlucci
  • Bernardo Corrado Gennaro

Abstract

ABSTRACT Olive oil consumption in the United States has more than tripled over the past two decades and imports have grown considerably, in particular from Mediterranean countries. This is due to the spread of the Mediterranean diet and increasing consumer awareness about the health benefits of olive oil. We investigated the role of the main extrinsic quality cues (size of container, product category, organic certification, geographical indications, country of origin, and brand) in affecting the price of olive oil sold in the U.S. e‐commerce retail market. Using data from amazon.com, the leading e‐retailer in the United States, a hedonic price model was estimated. Results show that all the considered extrinsic quality cues have a significant impact on the price of olive oil, with interesting implications for both practitioners and policy makers. [EconLit citations: Q110; Q130; Q170].

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  • Luigi Roselli & Domenico Carlucci & Bernardo Corrado Gennaro, 2016. "What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 329-342, July.
    • Handle: RePEc:wly:agribz:v:32:y:2016:i:3:p:329-342
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    File URL: http://hdl.handle.net/10.1002/agr.21454
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    2. 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.
    3. 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).
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    5. Nouira, Imen & Hammami, Ramzi & Fernandez Arias, Alina & Gondran, Natacha & Frein, Yannick, 2022. "Olive oil supply chain design with organic and conventional market segments and consumers’ preference to local products," International Journal of Production Economics, Elsevier, vol. 247(C).
    6. Yamna Erraach & Fatma Jaafer & Ivana Radić & Mechthild Donner, 2021. "Sustainability Labels on Olive Oil: A Review on Consumer Attitudes and Behavior," Sustainability, MDPI, vol. 13(21), pages 1-23, November.
    7. Čehić Ana & Canavari Maurizio & Oplanić Milan & Cerjak Marija, 2021. "The Importance of Intrinsic and Extrinsic Local Olive Oil Attributes for Tourists: Evidence from a Mediterranean Destination," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 11(2), pages 280-295, December.

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