engleski

The Impact of Product Designations on Consumer Decisions: The Case of Croatian Olive Oil

There is an increasing awareness among consumers about the origin and health safety of the food they consume. This study uses choice experiment methodology to determine the importance of product designations (country of origin, method of production and health claims) on consumer buying decisions. The experiment offers several product alternatives including domestic and foreign products, those produced organically and conventionally as well as products with or without health claims provided on them. Multinomial logit and random parameter logit models are used to determine the relative importance of olive oil attributes. The results show strong consumer preference for domestic product and organic method of production. Besides that, it is found that health claims are a relatively unimportant attribute. These results are consistent with previous studies which showed that consumers considered origin the most important attribute of the product. In conclusion, the managerial implications and future directions of research are discussed.

product designations; consumer decisions; croatia; olive oil

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