Differentiation policies in the italian market of extra virgin olive oil

Differentiation policies may help producers to receive fair prices for the provided quality and to reinvigorate the olive oil sector. In this paper we used the hedonic approach to study how extra virgin olive oil (EVOO) unit selling prices at retail level are correlated to the different characteristics of the individual unit. We found that consumers value the most EVOOs with a flavour profile, unfiltered, made from Italian olives, certified as organic, with origin designations and sold in small bottles. The main suggestion for farmers and agricultural associations is that there are possibilities for the olive oil sector to recover and improve its economic performance, provided that production and communication choices are able to effectively intercept preferences of different market segments.