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What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market
Author(s) -
Roselli Luigi,
Carlucci Domenico,
Gennaro Bernardo Corrado
Publication year - 2016
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21454
Subject(s) - econlit , olive oil , certification , product (mathematics) , business , quality (philosophy) , value (mathematics) , empirical evidence , product differentiation , organic certification , mediterranean diet , consumption (sociology) , agribusiness , agricultural economics , economics , marketing , food science , microeconomics , geography , social science , philosophy , mathematics , medline , law , agriculture , organic farming , chemistry , archaeology , pathology , cournot competition , sociology , computer science , geometry , management , epistemology , machine learning , political science , medicine
ABSTRACT 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].