Attributes and Instability of Olive Oil Pricing in Argentina

Abstract

This study provides information on extra virgin olive oil (EVOO) in a region from Argentina. In this region, olive groves and their industrialization represent a small growing sector, so the process of differentiation by attributes emerges as relevant. We analyze the role of attributes and various other control variables on the weekly variation of EVOO prices. We assume that the still low demand for the product makes its buyers lack information and, therefore, they value low those attributes. We present econometric information in a context of high macroeconomic instability. The results show that most of the product attributes were not significant, so it is inferred that firms associate their prices to the only significant attribute: their brand. Then, the variables that indicate macroeconomic instability were significant, configuring a pricing situation more associated with overcoming macroeconomic instability than using it as an effective marketing policy.