Consumer Valuation of European Certification Labels on Extra Virgin Olive Oil: Assessing the Impact of Multiple Labels and Consumer Heterogeneity

Abstract

ABSTRACT Multiple food certification labels are a significant trend in food marketing, yet their impact on consumer decisions remains insufficiently understood. This study used a choice experiment to assess consumer valuation of European organic and Protected Designation of Origin (PDO) labels on extra virgin olive oil, considering consumer heterogeneity. The data were analyzed using a willingness-to-pay-space model and a binary probit analysis. Results indicate positive valuation of both labels when presented individually, with a higher premium price for organic farming (2.16€/L) than PDO (1.79€/L). The introduction of multiple labels reveals the presence of a sub-additivity effect and leads to the emergence of distinct consumer segments. The majority displays a negative willingness to pay, indicating strong substitution effects, while a minority perceives the labels as complementary. Moreover, some consumers are willing to pay a premium price for one label, but adding a second label undermines the effectiveness of the individual label.