Integrating biodiversity information into consumer preferences for extra virgin olive oil: Evidence from a real choice experiment in France

This research examines the influence of biodiversity information on consumer preferences for Extra Virgin Olive Oil (EVOO) that features Geographical Indication (GI). Conducted in a specialty food shop in Montpellier, France, and using a Real Choice Experiment (RCE), the study focuses on how GI and organic labels interact. Participants were divided into two groups: one group was provided with details about the benefits to biodiversity associated with GIs, while the other received no supplementary information. Analysis through a multinomial logit model (MNL) indicated that both GI and organic labels enhance consumer preference, though they serve as partial substitutes instead of complements. The inclusion of biodiversity information on GI and organic labels highlights that these labels are considered substitutes, and biodiversity information further reinforces this perception. This finding is crucial for producers aiming to stand out in markets where quality is prioritized. The results suggest that integrating biodiversity messaging into marketing strategies could effectively increase the perceived value of GI-labelled products, as evidenced by a statistically significant effect observed in the analysis. Furthermore, the study supports the new EU GI Regulation's voluntary framework for producers to implement sustainable practices, potentially aiding in market differentiation through biodiversity conservation. Although the real-world setting of the RCE presented some challenges, such as ensuring that the experimental conditions mimicked authentic purchasing environments, the research provides valuable insights for future investigations into how environmental information affects consumer behavior in purchasing contexts.