Not seeing the forest for the trees: The impact of multiple labelling on consumer choices for olive oil

Abstract

Multiple quality labels that signal whether a particular food has special characteristics relating to geographical origin or production method have become standard within European food policy. The aim of this paper was to investigate how two of these labels in particular influence consumers’ food choices. We assessed consumers’ preferences for an extra virgin olive oil (EVOO) displaying EU quality labels and focus on whether they are complements or substitutes. In order to do so, we used a discrete choice experiment (DCE) to estimate main and two-way interactions effects with data from a self-administrated survey in a Spanish region. Results indicate that while consumers positively value both the Protected Designation of Origin (PDO) and the organic labels, the valuation for PDO is almost double that of the valuation of the organic label. Furthermore, the findings show that for a majority of consumers considered both labels substitutes, while a small group considered them complements. These findings can help producers identify an optimal labelling strategy to maximize returns on certification investments.