The impact of multiple labeling on consumer choices for extra virgin olive oil: A cross-country study

Abstract In recent years, several research projects have aimed at promoting sustainability in the olive oil sector by implementing and promoting conservation practices based on agroecological concepts for contributing to climate change mitigation through emission reduction and carbon sequestration. Some researchers have also focused on the sustainability certification of extra virgin olive oil (EVOO) as a market-driven tool to reward the provisioning of ecosystem services generated by its production and as a lever to promote sustainable production and consumption. One of the most frequent questions in several studies concerning ecolabels is how consumers react to the redundancies of different sustainability labels. It has led to the question of whether consumers’ willingness to pay (WTP) changes with the increasing number of different labels on food and, if so, how. In this study, consumer preference and WTP for EVOO with one or more certifications, including protected designation of origin (PDO), organic, and carbon footprint (CF), were jointly analyzed. A discrete choice experiment (DCE) approach was implemented, and the survey was carried out in Italy, Greece, and Israel using the computer-assisted web interviewing method on an online panel by a leading company in market research. The final sample consisted of 1,345 regular consumers of EVOO, and the data collected were analyzed using a random parameters logit model and a multinomial logit model. The results show a propensity for regular consumers in all three countries to choose certified EVOO, which is more significant for well-known certifications, such as PDO and organic. CF certification receives less consumer attention and is considered differently in the three countries. Italian consumers pay closer attention to CF certification than Greek consumers. By contrast, Israeli consumers are unwilling to pay a premium price. The WTP premium price varies depending on the type of certification and the nationality of consumers. The results confirm the hypothesis concerning the subadditive or superadditive nature of multi-labels regarding WTP. Results show a significant positive interaction (i.e., superadditive) effect between two labels. This is the case between organic and CF labels among Greek and Israeli consumers, and PDO and CF labels among Greek consumers. Conversely, results show a significant negative interaction (i.e., subadditive) effect between three labels. The study results can help reflect on the usefulness of activating a multiple food label policy and how to identify the best labeling strategy to maximize returns on certification investments.