Chiara Riganelli and Andrea Marchini
This research considers a current problem statement: mandatory indication of palm oil among the list of ingredients (Regulation No. 1169/2011). The purpose of this paper is to…
Abstract
Purpose
This research considers a current problem statement: mandatory indication of palm oil among the list of ingredients (Regulation No. 1169/2011). The purpose of this paper is to analyse the effects of company choices about palm oil on consumer demand and company performance.
Design/methodology/approach
The data collection covers two years, 2013 and 2014. Financial data from the AIDA database are matched with information on palm oil certification and replacement. A panel data analysis is conducted to evaluate the impacts of certification and replacement on consumer demand and company performance.
Findings
Considering consumer demand, positive significances have been found in terms of both palm oil certification and replacement. With regard to performance, there are positive significances only for palm oil replacement.
Research limitations/implications
The research is a first step in the study of palm oil phenomenon. Furthermore, the study takes into consideration only one specific industry that uses palm oil as an ingredient.
Practical implications
There is a consumer demand expression for these two kinds of disclosures, considered in terms of both environmental (certification) and health (replacement) issues. However, only palm oil replacement leads to improved performance.
Originality/value
This study considers the market effects of the labelling programme through a new empirical application related to the palm oil issue. Starting from palm oil concerns, a new way through which an increase in the provision of information to consumers is likely to impact the behaviour of companies is pointed out.
Details
Keywords
Andrea Marchini, Francesco Diotallevi, Chiara Paffarini, Antonio Stasi and Antonio Baselice
– The purpose of this study is to present an attempt to evaluate Italian olive oil brand competition thought the analysis of consumers’ visual perspective.
Abstract
Purpose
The purpose of this study is to present an attempt to evaluate Italian olive oil brand competition thought the analysis of consumers’ visual perspective.
Design/methodology/approach
Through the implementation of a new information technology system called “Visual Marketing REL”, which furnishes eye-tracking measures, the authors were able to produce important information relative to the layout organization of to the Italian olive oil shelf, a strategic product of the agro-food chain. The research uses the “in situ” testing of the software developed.
Findings
The research, following up the thesis of sensorial marketing affecting choices, intends to identify an IT tool to facilitate the design of the shelf by increasing the efficiency of the retail mix. Results highlight that specific positioning could impact the differentiation effect and orientate consumers’ choices, thus increasing the efficiency of the retail mix.
Research limitations/implications
To generalize the results would require many repetitions of different product categories. In this case, it would be possible to quantify the levels of correlation between visual information and sales.
Practical implications
This work opens important considerations in terms of strategic management of modern distribution, leaders and minor brands competitive relationship, as well as opportunities for producers of high-quality products, which could address their strategies to differentiation and niche market in cooperation with retailers.
Social implications
The research aims to encourage the process of consumer choice and reduce information asymmetries.
Originality/value
The most important result is the connection among choices, visualization, differentiation strategy and positioning/ordering on the shelf. The layout management, in fact, could be used as a joint strategy of retailers as well as producers to emphasize quality and price differentiation, thereby increasing sales. Moreover, the study provides for the first time the outcomes of a brand new software “Visual Marketing REL”, highlighting its limits and positive elements.