Market values for olive oil attributes in Chile: a hedonic price function

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. 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.

The value of the certifications of origin: a comparison between the Italian olive oil and wine markets

“…In the analysis of differentiated products a number of studies have adopted hedonic price model in which the price of any product is described as a function of its characteristics (Deselnicu et al, 2013;Romo Muñoz et al, 2015;Oczkowski, 2001;Schamel and Anderson, 2003).…”

“…Despite the many differences, in recent years marketing strategies in the olive oil sector seems to be increasingly inspired by the examples of wine, with an increasing role for the place of origin, for the variety of the olives, the packaging, the trials, the experts' evaluations and so forth (Cabrera et al, 2014;Galizzi, 2013;Romo Muñoz et al, 2015). All in all, well-established differences together with arising hints of similarities add reasons of interest in the comparison.…”

“…Marketing strategies in the olive oil sector seems to be increasingly inspired by the examples of wine, with an increasing role for different quality attributes and different kind of clues also related to product and producers' reputation. Among these there are: the certification of the place of origin (Cabrera et al, 2014;Van der Lans et al, 2001;Menapace et al, 2011); the variety of the olives; sensory attributes (Dekhili et al, 2011); different specifications of the production process and the kind of producer; packaging (Romo Muñoz et al, 2015); prizes, awards and trials; experts' evaluations and scores obtained in guides; and many more (Cabrera et al, 2014;Galizzi, 2013).…”

The Promising Effect of a Green Food Label in the New Online Market

“…Edible oil is chosen for three reasons. First, it can be easily differentiated by a large number of attributes [27]; second, edible oil has a long shelf life and is easy for transportation, making it suitable to sell both online and offline; and third, edible oil is an important dietary component for Chinese consumers, which is mostly for family use.…”

¿Es el lugar de compra determinante en las preferencias de los compradores de aceite de oliva?

“…Esta literatura se nutre de trabajos realizados en otros países productores de aceite de oliva, principalmente en Italia (véase Cicia et al, 2002;Scarpa et al, 2004;Di Vita et al, 2013;Panico et al, 2014), si bien, en los últimos años han aparecido una serie de trabajos asociados a países con producción y demanda crecientes. Entre dichos trabajos, podemos destacar los realizados por Menapace et al (2011), para Canadá, Zulug et al (2015), para Turquía, Chan-Halbrendt et al (2010), para Albania, Ward et al (2003), para Alemania, Mtimet et al (2013), para Japón, Krystallis et al (2006), para Grecia, o Romo et al (2015), para Chile, entre otros.…”