English

Abstract

This study was conducted with the objective to estimate the implicit values for various olive oil attributes in Riyadh, Saudi Arabia. A hedonic price model was applied to examine 558 olive oil samples taken from nine hypermarkets with different olive oil brands. The attributes under consideration include the package size, extra virgin label, level of acidity, organic certification, purity, country of origin, place of retail market, and packaging type. Results show agreement between signs and magnitudes for the implicit values for the most attributes. The significant attributes of olive oil identified in this study are package size, level of acidity, and variables describing the country of origin, place of retail market, and packaging type. The results reveal a negative relationship between (i) the price and the size of container and (ii) the price and the level of acidity for olive oil. Furthermore, olive oil products with organic and pure label have a higher price compared to those without them. The country of origin and the type of packaging may also influence the olive oil price