**3.1 Study of consumer preferences of olive oil through conjoint analysis**

The measurement of attitudes/preferences using a multi-attribute methodology, especially a conjoint Analysis of Multivariate technique, is most appropriate.

In fact, this methodology has become an important tool to assess the preferences that a consumer assigns to the various attributes of a specific product/brand (Ruiz and Munuera, 1993). Hair *et al.* (2009) define conjoint analysis as:

'a multivariate technique used specifically to understand how respondents develop preferences about products or services, and is based on the simple premise that consumers assess the value of a product/service idea (real or hypothetical) combining separate amounts of value provided by each attribute. The utility, which is the conceptual basis for measuring this value, is a subjective preference unique to each individual which includes all the features of a product or service, both tangible and intangible, and as such, is the measure of overall preference'.

The most direct application of conjoint analysis is as a tool to find the weight or importance that different levels or categories of product attributes play on the formation of consumer preferences (Múgica, 1989). Therefore, conjoint analysis seeks to establish the relative importance of attributes and levels, inferring the utility (satisfaction) that consumers express when they are presented with a series of product concepts that vary in a systematic way (Walley *et al.,* 1999). The application of this methodology in the field of food has, until recently, been quite limited (Van der Pol and Ryan, 1996), starting in the 1990s when it began to generate a relevant scientific production. This confirms the suitability of this methodology to improve knowledge about consumer behaviour when purchasing food. Thus, when reviewing the literature, it appears that it has only been in recent years that

Consumer Preferences for Olive-Oil Attributes:

Fotopoulos and

van der Lans, van Ittersum, De Cicco and Loseby (2001)

García, Aragonés and

Scarpa and Del Giudice (2004)

Krystallis and Ness

Mtimet, Kashiwagi, Zaibet and Masakazu (2008)

Bernabeu, Olmeda,

Chan-Haldbrent, Zhllima, Sisior and Imami (2010)

Menapace, Colson, Grebitus and Facendola (2011)

A Review of the Empirical Literature Using a Conjoint Approach 241

Italy Yes

Italy Yes

Krystallis (2001) Olive Greece Yes PDO

Extravirgin olive

Poole (2002) Olive UK No

Extravirgin olive

(2005) Olive Greece Yes

Diaz y Olivas (2009) Olive Spain Yes

Extravirgin olive

Table 1. Analyses for consumer preferences of olive oil.

Olive Japan No

Olive Albania Yes

Canada No

**Type Country Producing Attribute Rank (relative** 

Price

Price Colour Origin Appearance

Price Size Packaging

Price Quality Certification Origin Appearance

Origin Organic label Health info Quality certifications (HACCP, ISO) PDO label Price Glass bottle

Colour Origin Price Olive oil type Taste

Oil type Origin Price Production System

> Price Olive oil type Origin Taste Place purchase

Price Origin Production system Geographic identification Appearance Colour

**importance) (%)** 

1st - (55.51) 2nd- (44.49)

1st- (n.d.) 2nd- (n.d.) 3rd- (n.d.) 4th- (n.d.)

1st- (37.40) 2nd- (33.48) 3rd- (29.12)

1st- (44.44) 2nd- (28.60) 3rd- (25.41) 4th- (1.54)

1st- (21.71) 2nd- (19.07) 3rd- (16.96) 4th- (11.11) 5th- (9.58) 6th- (8.10) 7th- (7.17) 8th- (6.29)

1st- (30.14) 2nd- (29.06) 3rd- (20.50) 4th- (10.34) 5th- (9.94)

1st- (41.09) 2nd- (33.35) 3rd- (25.35) 4th- (0.20)

1st- (34.70) 2nd- (22.16) 3rd- (20.96) 4th- (18.66) 5th- (3.52)

1st- (36.88) 2nd- (26.54) 3rd- (23.72) 4th- (12.49) 5th- (0.35) 6th- (0.00)

there has been further development in this field of research, ranging from the wine, to the meat, dairy, fruit and vegetable industries. In the case of olive oil, although the literature is not extensive, there are several studies that have examined consumer preferences in deferent countries, as shown in Table 1.

Despite the tradition existing in the consumption of olive oil in the main producing countries, studies carried out to analyse consumer preferences in these countries have been scarce. Probably, this is a consequence of the olive oil's difficulties for differentiating itself in order to better meet the needs of consumers.

One of the first studies that examined consumer preferences is Fotopoulos and Krystallis (2001) that analysed Greek consumer preferences based on two attributes: price and character of protected designation of origin (PDO). Van der Lans *et al.* (2001), in turn, focus their analysis of preferences on extra-virgin olive oil, a variety that is characterized by acidity (oleic acid) to a maximum of 0.8 g per 100 g. According to these authors, the selected attributes were price, colour, origin and appearance, like the unit sample in two Italian regions.

Garcia *et al.* (2002) provide the first work that analyses consumer preferences of olive oil in a non-producing country such as the UK. Following this study, other countries have been used (e.g., Japan (Mtimet *et al.,* 2008) and Canada (Menapace *et al.,* 2011)).

Therefore, in analysing consumer behaviour for olive oil, there are various areas of analysis that take us beyond the attributes that have been considered in each study. In this respect, preference will be conditioned by the variety of olive oil covered by the study, and analysed even if the consumer resides in a country producing this product or not.

A first result that emerges from the literature review is that the extrinsic attributes of olive oil (e.g., price, origin or variety) are the most important when consumers face the act of purchase. Instead, intrinsic attributes, such as colour or flavour, are relegated to second place, with the exception of Mtimet *et al.* (2008), who analysed the Japanese consumer, for whom colour comes first.

Focusing specifically on the extrinsic attributes, a second interesting result refers to the importance of price when buying olive oil. Indeed, in five of the nine studies analysed this is the attribute with the highest relative importance. It should also be noted that this is true for consumers belonging to both producer and non-producer countries, and is also irrespective of the variety of olive oil.

In addition, our analysis shows that origin of oil is also an extrinsic attribute of interest to the consumer. Thus, in a majority of the papers analysed, it is the first or second attribute in order of importance, either in the consumer's conceptualization of country of origin, the region of origin or as part of a Protected Geographical Indication.

With regard to the variety of olive oil, another interesting finding is that,for the case of extra-virgin olive oil, price is always the most important attribute.

Finally, with regard to the sampling unit of analysis, it can be observed that among consumers of non-producing countries, the origin of oil is not the primary attribute on which they make their purchasing decision. Indeed, in two of the three studies analysed, the origin of the oil is the second attribute in importance. In the third study, this factor was not considered. This conclusion is very different among consumers of producer countries, probably as a consequence of the fact that they are more familiar with the product.

there has been further development in this field of research, ranging from the wine, to the meat, dairy, fruit and vegetable industries. In the case of olive oil, although the literature is not extensive, there are several studies that have examined consumer preferences in

Despite the tradition existing in the consumption of olive oil in the main producing countries, studies carried out to analyse consumer preferences in these countries have been scarce. Probably, this is a consequence of the olive oil's difficulties for differentiating itself in

One of the first studies that examined consumer preferences is Fotopoulos and Krystallis (2001) that analysed Greek consumer preferences based on two attributes: price and character of protected designation of origin (PDO). Van der Lans *et al.* (2001), in turn, focus their analysis of preferences on extra-virgin olive oil, a variety that is characterized by acidity (oleic acid) to a maximum of 0.8 g per 100 g. According to these authors, the selected attributes were price,

Garcia *et al.* (2002) provide the first work that analyses consumer preferences of olive oil in a non-producing country such as the UK. Following this study, other countries have been

Therefore, in analysing consumer behaviour for olive oil, there are various areas of analysis that take us beyond the attributes that have been considered in each study. In this respect, preference will be conditioned by the variety of olive oil covered by the study, and analysed

A first result that emerges from the literature review is that the extrinsic attributes of olive oil (e.g., price, origin or variety) are the most important when consumers face the act of purchase. Instead, intrinsic attributes, such as colour or flavour, are relegated to second place, with the exception of Mtimet *et al.* (2008), who analysed the Japanese consumer, for

Focusing specifically on the extrinsic attributes, a second interesting result refers to the importance of price when buying olive oil. Indeed, in five of the nine studies analysed this is the attribute with the highest relative importance. It should also be noted that this is true for consumers belonging to both producer and non-producer countries, and is also irrespective

In addition, our analysis shows that origin of oil is also an extrinsic attribute of interest to the consumer. Thus, in a majority of the papers analysed, it is the first or second attribute in order of importance, either in the consumer's conceptualization of country of origin, the

With regard to the variety of olive oil, another interesting finding is that,for the case of

Finally, with regard to the sampling unit of analysis, it can be observed that among consumers of non-producing countries, the origin of oil is not the primary attribute on which they make their purchasing decision. Indeed, in two of the three studies analysed, the origin of the oil is the second attribute in importance. In the third study, this factor was not considered. This conclusion is very different among consumers of producer countries,

probably as a consequence of the fact that they are more familiar with the product.

colour, origin and appearance, like the unit sample in two Italian regions.

used (e.g., Japan (Mtimet *et al.,* 2008) and Canada (Menapace *et al.,* 2011)).

even if the consumer resides in a country producing this product or not.

region of origin or as part of a Protected Geographical Indication.

extra-virgin olive oil, price is always the most important attribute.

deferent countries, as shown in Table 1.

order to better meet the needs of consumers.

whom colour comes first.

of the variety of olive oil.


Table 1. Analyses for consumer preferences of olive oil.

Consumer Preferences for Olive-Oil Attributes:

particular needs of each channel agent.

Collage Publishers, Fort Worth, TX.

*Management Review*, Vol.13, No. 3, pp. 55-74.

*Preference*, Vol. 20, pp. 525-532.

consumer.

olive oil sector.

**5. References** 

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A Review of the Empirical Literature Using a Conjoint Approach 243

3. *Campaign aimed at distinguishing the most important product cues in the formation of the image in each target market*. The advertising messages should be adapted to each market as a function of its preferences, and the tools and communications media chosen should be consistent with the messages. The messages should transmit the idea that olive oil from the area of origin has attributes that are the most important for that particular

4. *Campaign to increase consumption and maintain loyalty to the brand.* After achieving the positioning, the consumer should be reminded of the benefits of consuming olive oil from the specific area of origin. At this stage, the communication campaigns must consolidate the product image and be aimed at different segments. Likewise, in the distribution channel, the communication should be flexible and adapted to the

In developing all these communication campaigns, public institutions and governments can play an important role. Given the importance of olive oil sector in their socio-economic context, this is especially relevant for the case of Mediterranean olive oil producing countries. Therefore, public institutions are advised to collaborate with their own countries'

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