**Consumer Preferences for Olive-Oil Attributes: A Review of the Empirical Literature Using a Conjoint Approach**

José Felipe Jiménez-Guerrero1, Juan Carlos Gázquez-Abad1, Juan Antonio Mondéjar-Jiménez2 and Rubén Huertas-García3 *1University of Almería 2University of Castile La Mancha 3University of Barcelona Spain* 

### **1. Introduction**

232 Olive Oil – Constituents, Quality, Health Properties and Bioconversions

Spooner-Hart, R., Tesoriero, L. and Hall B. 2007. Field guide to olive pests, diseases and disorders in Australia. Report No. 07-153, 1 Oct 2007. ISBN: 1-74151-549-1.

Sweeney, S. 2005. National olive variety assessment - A report for RIRDC. RIRDC

Development Corporation. 2010. http://www.rirdc.gov.au.

Publication No 05/155. Project No. SAR-47A. Rural Industries Research and

http://www.rirdc.gov.au.

#### **1.1 Olive oil: Some general aspects**

During the last decade, olive oil consumption has experienced a major breakthrough in the world, not only in producing countries but also among those who are not. Undoubtedly, this growth in consumption is a consequence of the consolidation of a cultural phenomenon established between the main producing countries (Spain, Italy and Greece), owing to the so-called Mediterranean diet1; a food concept that provides important health benefits and of which olive oil is one of the main components. The recent recognition of United Nations Educational, Scientific and Cultural Organization (UNESCO) — it has declared to the Mediterranean diet 'the intangible cultural heritage of humanity'— offers promising perspectives for the Mediterranean diet in the coming years.

The major producer of olive oil in the world is the European Union (EU), which produces 80 per cent and consumes 70 per cent of the world's total olive oil production (European Commission, 2010). Italy and Spain are the major producers and can influence the prices of olive oil (Blery and Sfetsiou, 2008). Greece takes third place in world production after Spain and Italy (Sandalidou and Baourakis, 2002) and first place in olive oil consumption

<sup>1</sup> The Mediterranean Diet is a way of eating based on the traditional foods (and drinks) of the countries surrounding the Mediterranean Sea. The principal aspects of this diet include high olive oil consumption, high consumption of pulses unrefined cereals, fruits and vegetables, as well as moderate consumption of dairy products (mostly as cheese and yogurt), moderate to high consumption of fish, low consumption of meat and meat products, and moderate wine consumption. Olive oil is particularly characteristic of the Mediterranean diet. It contains a very high level of mono-unsaturated fats, most notably oleic acid, which epidemiological studies suggest may be linked to a reduction in the risk of coronary heart disease. There is also evidence that the antioxidants in olive oil improve cholesterol regulation and 'Low-density lipoprotein' (LDL) cholesterol reduction, and that it has other antiinflammatory and anti-hypertensive effects.

Consumer Preferences for Olive-Oil Attributes:

**consumption of olive oil** 

A Review of the Empirical Literature Using a Conjoint Approach 235

The rest of the chapter is structured as follows. Section 2 discusses the importance of culture as a factor in the formation of consumer preferences with respect to olive oil. In Section 3, we discuss consumer preferences for olive oil from the literature review, with reference to the

The study of consumer behaviour and marketing discipline has focused on analysing how individuals make decisions to spend their resources in categories related to consumption (Schiffman and Kanuk, 2001). The act of purchase is considered as an activity aimed at solving a problem (Howard and Sheth, 1986). Typically, the consumer is faced with a multitude of decisions to make, whose complexity varies depending on product and purchase situation (Lambin, 1995). Consequently, understanding consumer behaviour requires assessing how people made and make their purchasing and consumption decisions (Blackwell et al., 2001), considering that a decision is the result of selecting a choice from two

In the context of food products, Steenkamp (1997) proposes a conceptual model of consumer behaviour in which four stages in the purchase decision process are identified: (1) problem recognition; (2) information search; (3) evaluation of alternatives; and (4) choice. In addition, there are three groups of factors that influence this process: a) properties of foods; b) Individual-related factors (e.g., biological, psychological and demographic); and c) environmental factors (i.e., economic, cultural factors and marketing aspects (see Figure 1).

Properties of food

Physiological effects Sensory perception

Evaluation

Socio-demographics Marketing Psychological Information search Cultural

Recognition of the problem Biological Economic

Decision-making Personal factor Environmental factors

Selection

Fig. 1. Model of consumer behaviour for food (Steenkamp, 1997)

methodology on conjoint analysis. Finally, we present the findings of the work.

or more alternative possibilities (Schiffman and Kanuk, 2001).

**2. Consumer behaviour in purchasing food: The role of culture in the** 

(Hellonet, 2006). Olive farming provides an important source of employment in many rural areas of the Mediterranean, including many marginal areas where it is either a principal employer or an important part-time employer which can be combined with other activities, such as tourism. Olive farming is also an important part of local rural culture and heritage in many areas, and is maintained and 'valorized' through labelling schemes in some cases. Olive production is an important economic sector in many rural areas of the Mediterranean. In some areas, it is the principal economic activity and the basis for other sectors (Beaufoy 2002:11). The greatest concentration of oil production is found in two Spanish provinces, Jaén and Córdoba in Andalusia, which between them account for over one-third of EU output. Olive farming has both positive and negative environmental effects. As Beaufoy's (2002:30) report indicates, such effects depend on several factors, including prevailing environmental conditions in and around the plantation (soil type, slope, rainfall, adjacent land uses, presence of water bodies, etc.) and farm management, pest control, irrigation and the type of land (and previous land cover) on which new plantations are established. In particular, Beaufoy (2002) identified the following as the main categories of actual and potential environmental effects associated with the management of olive plantations: soil, water, air, biodiversity (flora and fauna), and landscape.

Among the EU non-producing countries of olive oil, Germany and the UK are the main consumers (de la Viesca *et al*., 2005), although the US is the most important market outside the Mediterranean basin (Zampounis, 2006). In the US, interest in and consumption of olive oil has been growing exponentially over the last 20 years (Delgado and Guinard, 2011). Indeed, the US ranks fourth in olive oil consumption after Italy, Spain and Greece. US consumption went from 88,000 tons in 1990 to 260,000 tons in 2009; an increase of 228% (International Olive Council, 2008). Something similar is happening in China, where the demand for olive oil is expected to increase significantly in the next few years (Soons, 2004). According to this author, Chinese tourism to Mediterranean countries will affect the general awareness of the healthy Mediterranean kitchen and its use of olive oil in a positive way.

The increasing preference for olive oil worldwide denotes a change in consumer behaviour, either by strengthening the role of it in their diet or by incorporating it in a novel way. The set of tangible and intangible attributes that consumers believe to particularly meet their needs, is a concept of product marketing. From this point of view, the concept is intended to reflect two fundamentally different approaches: a) considering the product itself as a sum of characteristics or physical attributes; or b) considering the needs of the consumer, where the buyer's choice rests not with the product, but with the service they expect to receive or the problems it can solve.

During the purchase process, consumers form their preferences based on the best combination of attributes, evaluating the brands that are part of their evoked sets, or are considered important in terms of attributes such as price, country of origin, quality or design, among others. Olive oil, like any other commodity, is not immune to this stage of the buying process, despite the uniqueness of its attributes that determine the degree of preference for the consumer. In this chapter, we aim to describe what attributes assume greater importance, and therefore are preferred, by the consumer. In order to do so, a review of the previous literature focusing on this stage of olive oil consumer-buying behaviour is developed.

(Hellonet, 2006). Olive farming provides an important source of employment in many rural areas of the Mediterranean, including many marginal areas where it is either a principal employer or an important part-time employer which can be combined with other activities, such as tourism. Olive farming is also an important part of local rural culture and heritage in many areas, and is maintained and 'valorized' through labelling schemes in some cases. Olive production is an important economic sector in many rural areas of the Mediterranean. In some areas, it is the principal economic activity and the basis for other sectors (Beaufoy 2002:11). The greatest concentration of oil production is found in two Spanish provinces, Jaén and Córdoba in Andalusia, which between them account for over one-third of EU output. Olive farming has both positive and negative environmental effects. As Beaufoy's (2002:30) report indicates, such effects depend on several factors, including prevailing environmental conditions in and around the plantation (soil type, slope, rainfall, adjacent land uses, presence of water bodies, etc.) and farm management, pest control, irrigation and the type of land (and previous land cover) on which new plantations are established. In particular, Beaufoy (2002) identified the following as the main categories of actual and potential environmental effects associated with the management of olive plantations: soil,

Among the EU non-producing countries of olive oil, Germany and the UK are the main consumers (de la Viesca *et al*., 2005), although the US is the most important market outside the Mediterranean basin (Zampounis, 2006). In the US, interest in and consumption of olive oil has been growing exponentially over the last 20 years (Delgado and Guinard, 2011). Indeed, the US ranks fourth in olive oil consumption after Italy, Spain and Greece. US consumption went from 88,000 tons in 1990 to 260,000 tons in 2009; an increase of 228% (International Olive Council, 2008). Something similar is happening in China, where the demand for olive oil is expected to increase significantly in the next few years (Soons, 2004). According to this author, Chinese tourism to Mediterranean countries will affect the general awareness of the healthy Mediterranean kitchen and its use of olive oil in a positive way.

The increasing preference for olive oil worldwide denotes a change in consumer behaviour, either by strengthening the role of it in their diet or by incorporating it in a novel way. The set of tangible and intangible attributes that consumers believe to particularly meet their needs, is a concept of product marketing. From this point of view, the concept is intended to reflect two fundamentally different approaches: a) considering the product itself as a sum of characteristics or physical attributes; or b) considering the needs of the consumer, where the buyer's choice rests not with the product, but with the service they expect to receive or the

During the purchase process, consumers form their preferences based on the best combination of attributes, evaluating the brands that are part of their evoked sets, or are considered important in terms of attributes such as price, country of origin, quality or design, among others. Olive oil, like any other commodity, is not immune to this stage of the buying process, despite the uniqueness of its attributes that determine the degree of preference for the consumer. In this chapter, we aim to describe what attributes assume greater importance, and therefore are preferred, by the consumer. In order to do so, a review of the previous literature focusing on this stage of olive oil consumer-buying behaviour is

water, air, biodiversity (flora and fauna), and landscape.

problems it can solve.

developed.

The rest of the chapter is structured as follows. Section 2 discusses the importance of culture as a factor in the formation of consumer preferences with respect to olive oil. In Section 3, we discuss consumer preferences for olive oil from the literature review, with reference to the methodology on conjoint analysis. Finally, we present the findings of the work.
