Territory, environment, and healthiness in traditional food choices: insights into consumer heterogeneity

Abstract

Traditional foods are facing new market challenges tied to current trends in food habits and their determinants, such as the decline of domestic food preparation, the increased demand for convenience foods, the increasing importance of industrial food production, and the evolution of regulations on food safety. In this context our study aims at improving the knowledge of consumer segments in traditional foods market in order to develop better marketing strategies. The preferences for different credence attributes are investigated applying a latent class choice model to the extra-virgin olive oil market in Italy. Results show the existence of a marked heterogeneity of preferences, which determines the presence of both vertical and horizontal differentiation of the product.