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Article
Publication date: 5 January 2015

Rodrigo Romo Muñoz, Mario Lagos Moya and José M. Gil

Focused on the olive oil sector in Chile which is a non-traditional market (both in production and consumption), the purpose of this paper is to determine the implicit…

Abstract

Purpose

Focused on the olive oil sector in Chile which is a non-traditional market (both in production and consumption), the purpose of this paper is to determine the implicit value of the most relevant attributes of olive oil on the final price charged by supermarkets to consumers through the hedonic pricing methodology.

Design/methodology/approach

Field work was carried out between September and October 2012 in 12 supermarkets belonging to the four most important Chilean retail chains. A log-linear price-attribute function was used to estimate the hedonic price function. The sample included 248 observations olive oil prices available to consumers in the leading supermarkets in the city of Chillán (Chile).

Findings

The model estimation results led to the observation that the attributes that most positively influenced final price are oil acidity level, tin can container of imported oil, and origin. On the other hand, the attributes that most negatively influenced final consumer price are retailer house brand and plastic container.

Research limitations/implications

A limitation of this study is associated with the geographic area where it was carried out, that is, the city of Chillán in the Bío-Bío Region, which is the second largest region and accounts for 12 per cent of the total population. Further research should include other cities such as Santiago (capital), Concepción, Curicó and Valparaíso.

Originality/value

This study can be considered as a first approximation of a hedonic pricing model estimation for olive oil in non-traditional markets like Chile, which is considered an emerging market.

Details

British Food Journal, vol. 117 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Content available
Article
Publication date: 7 June 2021

Giuseppe Di Vita, Raffaele Zanchini, Giovanni Gulisano, Teresina Mancuso, Gaetano Chinnici and Mario D'Amico

Urban metropolitan consumers react to the different qualitative categorizations of the product thus creating homogeneous market segments. The aim of this paper is to…

Abstract

Purpose

Urban metropolitan consumers react to the different qualitative categorizations of the product thus creating homogeneous market segments. The aim of this paper is to identify specific market segments which allow for the definition of homogeneous olive oil consumer targets.

Design/methodology/approach

This study was based on the stated preferences of consumers and emphasizes the role that different quality scales of olive oil have in the eye of the consumer. The data, collected through a questionnaire, were analysed by means of inferential and multivariate statistics techniques, that is, the study specifically entailed a factorial and cluster analysis.

Findings

This paper explores olive oil market segments broken down by the different quality levels of existing products, thus trying to identify main consumer preferences. Our outcomes suggest the existence of three main quality classes of olive oil consumer: basic, popular and premium.

Research limitations/implications

Even though we gathered data and information from a broad sample, the study does not fully reflect the average Italian population since we based our study on a convenience sample of northern Italian consumers. A more extended sample is needed to test our hypothesis in other regional areas.

Practical implications

The outcomes derived from this study provide useful insights both for marketers and olive oil producers by allowing more efficient strategic decisions in terms of product segmentation.

Originality/value

This study, aimed at matching olive oil market segments and consumer preferences, shows the existence of three well-defined quality classes of olive oil consumer: basic, popular and premium. In addition, this study ascertains for the first time how the attitude towards local products is positively influenced by family origin as a result of an inter-generational attitude.

Details

British Food Journal, vol. 123 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

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