Abstract:Food is central to human beings and their social life. The growing industrialization of the food system has led to a greater availability of food, along with an increasing risk perception and awareness in consumers. At the same time, there is an increasing resistance from citizens to the dominant model of production and a growing demand for healthy food. As a consequence, an increasing number of social networks have been formed worldwide involving the collaboration between producers and consumers. One of these networks, the Ecovida Agroecology Network, which operates in Southern Brazil, involves farming families, non-governmental organizations, and consumer organizations, together with other social actors. Using a qualitative approach based on participant observation and an analysis of documents, the article examines this network. The theoretical framework used is social innovation, which is commonly recognized as being fundamental in fostering rural development. Results show that Ecovida has instigated innovations that relate to its horizontal and decentralized structure, its participatory certification of organic food, and its dynamic relationship with the markets based on local exchanges and reciprocal relations. Furthermore, such innovation processes have been proven to impact on public sector policies and on the increasing cooperation between the social actors from rural and urban areas.
Purpose
– The purpose of this paper is to analyse the relationship between the price of extra virgin olive (EVO) oil and its main quality attributes, in the specific case of business-to-consumers electronic commerce (B2C EC) channel. The final objective is to provide useful insights for small and medium-sized enterprises (SMEs) interested in online selling of EVO.
Design/methodology/approach
– A hedonic price model was estimated considering the following attributes: packaging, cultivar composition, organic certification, oil extraction method, origin certification and localization of selling firms. A survey was performed in 2012 considering 169 virtual stores of SMEs (farms, mills and bottlers) located in all the main Italian olive-growing areas. A data set of 667 references was used to estimate the implicit prices of considered attributes.
Findings
– The EVOs sold through virtual stores are highly differentiated on the basis of several quality attributes among which the most important is the certification of origin (protected denominations of origin/protected geographical indication). Therefore the firm location could generate considerable advantages or disadvantages in adopting a B2C EC strategy.
Research limitations/implications
– Future researches should develop a comparison between the premium prices and costs associated to each attribute in order to find the best product differentiation strategy. An accurate analysis about the implementation and management costs of EC systems as well as an examination of interactions between online and offline sale channels is needed. It would be useful to compare the manufacturer direct sell business model with other business model.
Originality/value
– Few studies applied the hedonic price model to analyse the retail olive oil market. Nevertheless, no studies have analysed the market of EVO sold in virtual shops.
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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