Organic and conventional olive oil consumers: a comparative analysisusing a customer satisfaction evaluation approach

Sandalidou E., Baourakis G., Grigoroudis E., Siskos Y.

in

Nikolaidis A. (ed.), Baourakis G. (ed.), Isikli E. (ed.), Yercan M. (ed.). The market for organic products in the Mediterranean region

Chania : CIHEAMCahiers Options Méditerranéennes; n. 61

2003pages 265-276

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Sandalidou E., Baourakis G., Grigoroudis E., Siskos Y. Organic and conventional olive oil

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Cahiers Options Méditerranéennes � no 61

Organic and Conventional Olive Oil

Consumers: A Comparative Analysis

Using a Customer Satisfaction

Evaluation Approach

Evangelia Sandalidou1, Baourakis George1, Evangelos Grigoroudis2, Yannis Siskos3 1 Department of Economic Sciences / Management / Marketing and Finance,

Mediterranean Agronomic Institute of Chania (MAICh), Chania, Greece 2 Department of Production Engineering & Management, Technical University of Crete, Chania, Greece

3 Department of Informatics, Univ. of Peraeus, Greece

ȱ

Abstract: This paper deals with the measurement of customer satisfaction where organic olive oil, the most important biological product that has recently en-tered the Greek food market, is con-cerned. For this purpose a survey was conducted in the region of Thessaloniki. This study examines consumer pref-erences and attitudes using multicriteria preference analysis. The imple-mented methodology is called MUSA (MUlticriteria Satisfaction Analysis) and takes into account that cus-tomers� global satisfaction for organic olive oil depends on five criteria: health, price/quality, pack-aging, specific char-acteristics and promotion & disposition. Effective results are provided de-scribing customer behaviour and identifying market trends. An analysis in order to find out the strengths and weaknesses of organic olive oil compared to the conventional one is also included, contributing in this way to an effec-tive strategic planning for the improvement of the product. Finally, recom-men-dations are given evaluating the alternative market penetration strate-gies, which combined with the existing ones, could lead to the development of optimal marketing techniques for the modification of the products� char-acteristics in the most effective way.

ȱ

Introduction

OliveȱfarmingȱandȱtheȱproductionȱofȱoliveȱoilȱareȱconsideredȱtoȱbeȱanȱimportantȱsectorȱinȱEuroȬpeanȱandȱespeciallyȱinȱGreekȱagriculture,ȱmainlyȱdueȱtoȱtheȱclimaticȱconditions,ȱwhichȱareȱsuitȬableȱ forȱ thisȱcrop.ȱOliveȱoilȱ isȱanȱagriculturalȱproductȱofȱgreatȱnutritionalȱvalueȱdueȱ toȱ itsȱorȬganolepticȱ andȱ biologicalȱ propertiesȱ asȱwellȱ asȱ itsȱ tasteȱ characteristics.ȱGreeceȱ isȱ oneȱ ofȱ theȱleadingȱoliveȱoilȱproducersȱ inȱ theȱworld,ȱ rankingȱ thirdȱ afterȱSpainȱ andȱ Italy.ȱGreekȱoliveȱoilȱproductionȱaccountsȱ forȱalmostȱ22%ȱofȱtheȱEuropeanȱandȱ17%ȱofȱtheȱworldȱproductionȱ(FAO,ȱ1985Ȭ2000).ȱȱ

Nowadays,ȱpeopleȱthroughoutȱtheȱworld,ȱespeciallyȱthoseȱwithȱaȱhighȱstandardȱofȱliving,ȱseemȱtoȱpreferȱfoodstuffsȱthatȱareȱproducedȱandȱprocessedȱbyȱnaturalȱmethods.ȱGreekȱconsumersȱinȱparticular,ȱaccordingȱtoȱpreviousȱconsumerȱresearch,ȱseemȱtoȱbeȱmoreȱandȱmoreȱsensitiveȱand,ȱatȱtheȱsameȱtimeȱdemanding,ȱwhenȱitȱcomesȱtoȱtheirȱnutritionȱandȱtheyȱseekȱforȱproductsȱofȱorȬganicȱoriginȱasȱmuchȱasȱpossible.ȱUnfortunately,ȱuntilȱrecently,ȱcustomers�ȱneedȱforȱqualitativeȱproductsȱwasȱ notȱ consideredȱ toȱ beȱ asȱmuchȱ importantȱ inȱ theȱ agriculturalȱ sector.ȱ Producersȱcaredȱaboutȱ theȱproductionȱvolumeȱandȱregardingȱcustomersȱallȱthatȱmatteredȱwasȱ theȱproviȬsionȱofȱproductsȱwithȱreasonableȱpricesȱ(EuropeanȱUnionȱCouncil,ȱ2000).ȱHowever,ȱthingsȱseemȱtoȱhaveȱchangedȱandȱcustomerȱsatisfactionȱplaysȱanȱincreasinglyȱsignificantȱroleȱinȱorderȱtoȱkeepȱupȱwithȱpeople�sȱdemandȱforȱsafeȱandȱgoodȱqualityȱfood.ȱȱ

266

Organicȱoliveȱoil,ȱtheȱmostȱimportantȱbiologicalȱproductȱinȱGreece,ȱisȱaȱproductȱthatȱcouldȱkeepȱupȱwithȱ customers�ȱ needsȱ forȱ safeȱ andȱ qualityȱ food,ȱwhileȱ atȱ theȱ sameȱ timeȱ couldȱ provideȱhigherȱpricesȱtoȱproducers.ȱForȱaȱsuccessfulȱpenetrationȱofȱorganicȱoliveȱoilȱ intoȱnewȱmarkets,ȱhowever,ȱcontinuousȱimprovementȱisȱrequired.ȱAchievingȱaȱmaximumȱofȱqualityȱisȱsomethingȱthatȱwouldȱbeȱaȱguaranteeȱ forȱ theȱ economicȱ survivalȱofȱ theȱ sectorȱ inȱ theȱ faceȱofȱ competitionȱ(Fotopoulos.ȱandȱPantzios,ȱ1998).ȱThisȱcouldȱbeȱdoneȱ throughȱevaluatingȱ firstȱcustomerȱ satisȬfaction,ȱwhichȱisȱtheȱobjectiveȱofȱthisȱresearch.ȱCustomerȱsatisfactionȱisȱconsideredȱtoȱbeȱaȱmodȬernȱapproachȱforȱquality,ȱandȱqualityȱisȱaȱtermȱthatȱneedsȱtoȱbeȱdefined.ȱPeopleȱtendȱtoȱpreferȱproductsȱfromȱcertifiedȱfoodȱcompaniesȱ(ISOȱ9000),ȱnotifyingȱtheȱneedȱtoȱimproveȱquality.ȱSinceȱtheȱconnectionȱbetweenȱqualityȱandȱcustomerȱsatisfactionȱisȱbecomingȱobvious,ȱmeasuringȱcusȬtomerȱsatisfactionȱcouldȱleadȱtoȱcorrectionȱactionsȱinȱorderȱtoȱraiseȱquality.ȱInȱthisȱway,ȱcustomȬers�ȱpreferencesȱandȱexpectationsȱregardingȱcertainȱcharacteristicsȱofȱtheȱproductȱareȱprovided,ȱallowingȱforȱitsȱfurtherȱmarketȱdevelopment.ȱȱ

Customerȱsatisfactionȱofȱcourse,ȱisȱaȱnotionȱthatȱhasȱrecentlyȱstartedȱtoȱconcernȱtheȱagriculturalȱsectorȱandȱitȱisȱworthȱmentioningȱthatȱitȱisȱconsideredȱtoȱbeȱaȱpioneerȱinȱtheȱfieldȱofȱagriculturalȱproducts,ȱletȱaloneȱorganicȱones.ȱȱ

Forȱ thisȱpurposeȱaȱ surveyȱwasȱ conductedȱ inȱ theȱ regionȱofȱThessalonikiȱandȱaȱ sampleȱofȱ ranȬdomlyȱselectedȱorganicȱoliveȱoilȱconsumersȱwereȱaskedȱtoȱexpressȱtheirȱopinionȱtowardsȱsomeȱcharacteristicsȱ(health,ȱpriceȱinȱrelationȱtoȱquality,ȱpackage,ȱspecificȱcharacteristics,ȱpromotionȱ&ȱdisposition)ȱ ofȱ organicȱ oliveȱ oil.ȱAȱ comparativeȱ analysisȱ betweenȱ organicȱ andȱ conventionalȱoliveȱoilȱisȱalsoȱincluded,ȱinȱorderȱtoȱfindȱoutȱtheȱstrengthsȱandȱweaknessesȱofȱorganicȱoliveȱoilȱcomparedȱtoȱtheȱconventionalȱone.ȱTheȱmethodȱthatȱwasȱdevelopedȱforȱmeasuringȱandȱanalysȬingȱcustomerȱsatisfactionȱisȱcalledȱMUSAȱ(MUlticriteriaȱSatisfactionȱAnalysis).ȱItȱisȱaȱmulticriteȬriaȱordinalȱregressionȱmodelȱandȱitsȱbasicȱassumptionȱisȱthatȱcustomer�sȱglobalȱsatisfactionȱdeȬpendsȱonȱaȱsetȱofȱconsumerȬassessedȱcriteria,ȱwhichȱrepresentȱtheȱcharacteristicsȱofȱtheȱproduct.ȱȱ

Theȱpaperȱisȱorganisedȱasȱfollows:ȱAfterȱtheȱintroductionȱpresentedȱinȱsectionȱ1,ȱaȱbriefȱdescripȬtionȱofȱtheȱproductȱandȱtheȱcurrentȱsituationȱofȱorganicȱoliveȱoilȱinȱGreeceȱisȱgivenȱinȱsectionȱ2.ȱTheȱmeaningȱofȱcustomerȱsatisfactionȱandȱ itsȱneedȱ toȱbeȱmeasuredȱareȱprovidedȱ inȱsectionȱ3,ȱalongȱwithȱsomeȱalternativeȱmethodologicalȱapproaches.ȱTheȱmethodologicalȱframework,ȱuponȱwhichȱtheȱwholeȱstudyȱwasȱbased,ȱisȱincludedȱinȱtheȱsameȱsection.ȱSectionȱ4ȱprovidesȱtheȱresultsȱofȱtheȱresearch.ȱFinally,ȱsomeȱrecommendationsȱaboutȱtheȱimprovementȱofȱtheȱproduct,ȱasȱwellȱasȱconcludingȱremarks,ȱareȱoutlinedȱinȱsectionȱ5.ȱ

Organic Olive Oil in Greece

Organicȱfarmingȱ isȱindisputablyȱbecomingȱofȱgrowingȱ importanceȱ inȱtheȱagriculturalȱsectorȱofȱmanyȱcountries.ȱMarketȱdemandȱforȱorganicȱproductsȱhasȱexpandedȱrapidlyȱoverȱtheȱpastȱdecȬadeȱ(DeȱHaen,ȱ1999).ȱȱ

OrganicȱcultivationȱofȱtheȱoliveȱtreeȱbeganȱinȱGreeceȱinȱtheȱPrefectureȱofȱMessiniaȱinȱ1988.ȱInȱtheȱfollowingȱyearsȱitsȱevolutionȱwasȱspectacularȱandȱsinceȱthenȱseriousȱeffortsȱhaveȱbeenȱmadeȱinȱmostȱ partsȱ ofȱ theȱ countryȱ toȱ continueȱ theȱ trendȱ (Sgouros,ȱ 1997).ȱ Theȱ organicȱ oliveȱ treeȱ andȱthereforeȱtheȱproductionȱofȱorganicȱoliveȱoilȱpossessedȱtheȱfirstȱplaceȱinȱ1999,ȱsinceȱoliveȱgrovesȱcoveredȱ56,7%ȱofȱ theȱ totalȱorganicallyȱutilizedȱarea.ȱTheȱhighȱpercentageȱ revealsȱ theȱgrowingȱdemandȱofȱGreekȱconsumersȱforȱhealthyȱandȱnutritionalȱfoodȱwithȱhighȱqualityȱandȱsafetyȱcharȬacteristicsȱ(LampkinȱandȱPadel,ȱ1994).ȱȱ

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Manyȱadvantages,ȱbothȱfromȱanȱenvironmentalȱandȱaȱsocialȬeconomicȱpointȱofȱview,ȱareȱofferedȱthroughȱtheȱorganicȱcultivationȱofȱtheȱoliveȱtreeȱ(Sgouros,ȱ1997).ȱAmongȱthem,ȱtheȱmostȱsignifiȬcantȱare:ȱ

Üȱ Protectionȱofȱtheȱenvironmentȱthroughȱnotȱusingȱchemicalsȱduringȱtheȱcultivationȱtechniques.ȱInȱadditionȱtoȱthat,ȱorganicȱoliveȱoilȱisȱmostlyȱpackagingȱinȱglassȱbottlesȱ(insteadȱofȱplasticȱonesȱusedȱinȱtheȱconventionalȱoliveȱoil),ȱcontributingȱtoȱtheirȱbetterȱrecycling.ȱȱ

Üȱ Economicȱadvantages.ȱFromȱtheȱproducerȱpointȱofȱview,ȱitȱwasȱdiscoveredȱthatȱtheȱproductȱisȱsoldȱatȱhigherȱprices,ȱatȱ leastȱ20Ȭ25%ȱhigherȱ thanȱ theȱconventionalȱoliveȱoil,ȱbringingȱsigȬnificantȱprofits.ȱAȱlotȱofȱbenefitsȱcanȱalsoȱariseȱthroughȱtheȱexportȱactivities,ȱwhichȱbiologiȬcalȱoliveȱoilȱisȱinvolvedȱin.ȱ

Üȱ Maintenanceȱofȱtheȱsocialȱstructure.ȱTheȱoliveȱtreeȱisȱgrownȱinȱmountainous,ȱsemiȬȱmountainȬousȱorȱtheȱsoȬcalledȱdisadvantageousȱregionsȱandȱitȱisȱaȱnonȬdemandingȱcrop,ȱwhichȱmeansȱthatȱ itȱcanȱsurviveȱevenȱunderȱ theseȱunfavorableȱconditions.ȱOrganicȱ farmingȱprovidesȱaȱremarkablyȱhigherȱincomeȱperȱhectareȱtoȱtheȱfarmers,ȱwhichȱbecomesȱaȱstrongȱincentiveȱforȱthemȱtoȱremainȱinȱtheseȱregions.ȱ

Üȱ Protectionȱ ofȱ producers�ȱ andȱ consumers�ȱ health.ȱBiologicalȱproductsȱ (oliveȱ andȱoliveȱoil)ȱ areȱproductsȱwithȱnoȱpesticideȱresidues.ȱTheyȱareȱobtainedȱviaȱcoldȱpressingȱofȱolives.ȱInȱthisȱway,ȱallȱtheirȱnutritionalȱsubstancesȱareȱpreservedȱleadingȱtoȱproductsȱofȱhighȱnutritionalȱvalue.ȱ

Apartȱfromȱtheȱbenefits,ȱthereȱareȱalsoȱsomeȱconstraintsȱregardingȱorganicȱfarming.ȱOnȱtheȱoneȱhand,ȱfarmersȱexperienceȱsomeȱlossȱinȱyieldsȱduringȱtheȱphaseȱofȱconversionȱtoȱorganicȱfarmingȱ(VanȱDerȱSmissen,ȱ2000).ȱSometimesȱitȱtakesȱaȱlongȱtime,ȱalmostȱyearsȱtoȱrestoreȱtheȱecosystemȱtoȱ theȱpointȱwhereȱ theȱorganicȱproductionȱ isȱpossible.ȱ̖heȱhighȱcostȱofȱproductionȱ isȱanotherȱdifficultyȱforȱtheȱfarmer.ȱOnȱtheȱotherȱhand,ȱsomeȱconsumersȱdoȱnotȱbelieveȱthatȱorganicȱagriȬcultureȱcanȱimproveȱfoodȱsecurityȱandȱsomeȱothersȱdoȱnotȱevenȱknowȱwhatȱanȱorganicȱproductȱis.ȱThatȱ isȱwhyȱthereȱ isȱaȱneedȱforȱbetterȱaccessȱtoȱmarketȱ information.ȱActionsȱshouldȱbeȱalsoȱtakenȱinȱorderȱtoȱsupportȱconsumerȱconfidence.ȱForȱthisȱreasonȱGreeceȱhasȱadoptedȱaȱsystemȱforȱcontrollingȱandȱcertifyingȱorganicȱproducts.ȱTheȱOrganicȱProductsȱBureauȱwasȱsetȱupȱ inȱ1991ȱundertakingȱtheȱapplicationȱofȱtheȱEuropeanȱRegulations.ȱInȱ1993,ȱpermissionȱwasȱgivenȱtoȱtwoȱprivateȱorganizations:ȱ�DIO�ȱandȱ�SOGE�.ȱ�Fysiologiki�ȱwasȱtheȱthirdȱcertifyingȱorganizationȱestablishedȱinȱ1994ȱ(KaldisȱandȱGardeli,ȱ1996).ȱ

Greece,ȱwhichȱhasȱmanyȱcompetitorsȱconcerningȱconventionalȱagriculturalȱproducts,ȱisȱaȱcounȬtryȱthatȱcanȱeasilyȱexploitȱtheȱpreviouslyȱreferredȱadvantagesȱofȱorganicȱcultivationȱofȱtheȱoliveȱtreeȱandȱthusȱtheȱproductionȱofȱorganicȱoliveȱoil.ȱHowever,ȱeffortsȱshouldȱbeȱmadeȱinȱorderȱtoȱcontinuallyȱimproveȱtheȱproduct.ȱTherefore,ȱcustomerȱsatisfactionȱmeasurementȱcouldȱbeȱveryȱhelpfulȱinȱevaluatingȱtheȱnecessaryȱmarketȱpenetrationȱstrategies.ȱ

Customer Satisfaction Evaluation Methodology

Nowadays,ȱmoreȱandȱmoreȱorganizationsȱhaveȱcomeȱtoȱunderstandȱtheȱimportanceȱofȱcustomerȱsatisfaction.ȱInȱfact,ȱitȱhasȱlongȱbeenȱrecognizedȱasȱaȱstandardȱofȱperformanceȱandȱexcellenceȱforȱanyȱbusinessȱorganization.ȱCustomerȱ satisfactionȱ isȱ consideredȱ toȱbeȱ aȱmodernȱ approachȱ forȱqualityȱandȱaȱdynamicȱparameterȱofȱbusinessȱorganizationsȱofȱallȱtypesȱthroughoutȱtheȱworld.ȱItȱisȱregardedȱasȱaȱnecessaryȱconditionȱforȱcontinuousȱimprovementȱofȱmodernȱenterprisesȱasȱwellȱasȱdeterminationȱofȱpossibleȱ�opportunities�ȱinȱaȱparticularȱmarket,ȱjustȱlikeȱtheȱcaseȱofȱtheȱagriȬculturalȱmarket,ȱandȱthereforeȱitsȱevaluationȱisȱofȱgrowingȱinterest.ȱȱ

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AȱlotȱofȱdefinitionsȱwereȱgivenȱforȱcustomerȱsatisfactionȱbutȱaccordingȱtoȱHillȱ(1996),ȱitȱisȱconȬsideredȱtoȱbeȱ�aȱmeasureȱofȱhowȱanȱorganization�sȱtotalȱproductȱperformsȱinȱrelationȱtoȱaȱsetȱofȱcustomersȱexpectations�.ȱ

Measuringȱcustomerȱsatisfactionȱprovidesȱanȱeffective,ȱdirect,ȱmeaningfulȱandȱobjectiveȱassessȬmentȱofȱcustomers�ȱpreferencesȱandȱexpectations.ȱSinceȱchangesȱinȱtheȱcurrentȱmarketȱcanȱaffectȱtheseȱpreferences,ȱ theȱexistenceȱofȱaȱpermanentȱcustomerȱsatisfactionȱbarometerȱ isȱconsideredȱnecessary.ȱParticularlyȱinȱagriculturalȱproducts,ȱcustomerȱsatisfactionȱcanȱleadȱtoȱcustomerȱloyȬalty.ȱTheȱphilosophyȱaccordingȱtoȱIsraelȱ(1997)ȱisȱtoȱ�neverȱtakeȱcustomersȱforȱgranted,ȱbutȱacȬtivelyȱcultivateȱlongȬtermȱrelationships�.ȱȱ

Severalȱ studiesȱhaveȱbeenȱ conductedȱ focusingȱonȱ consumers�ȱbehaviorȱ regardingȱGreekȱagriȬculturalȱproducts.ȱ Inȱ theȱ caseȱofȱoliveȱoilȱ specificallyȱ theȱmostȱ commonȱ statisticalȱ techniquesȱusedȱwereȱ frequencyȱdistributions,ȱcrossȱ tabulations,ȱAnova,ȱ factorȱanalysisȱandȱdiscriminantȱanalysisȱ(Baourakisȱetȱal,ȱ1995,ȱSiskosȱetȱal,ȱ1995,ȱBaourakisȱandȱApostolakis,ȱ1999,ȱSiskosȱetȱal,ȱ2001,ȱBaourakisȱetȱal,ȱ2002).ȱ

PreviousȱconsumerȱresearchȱalsoȱshowedȱthatȱthereȱisȱaȱrealȱneedȱforȱimprovingȱoliveȱoilȱqualȬity.ȱHowever,ȱextensiveȱresearchȱhasȱshownȱthatȱtheȱcustomerȱsatisfactionȱevaluationȱproblemȱhasȱnotȱbeenȱconsideredȱsoȱfarȱinȱtheȱagriculturalȱsector,ȱletȱaloneȱtheȱrecentlyȱdevelopedȱmarketȱofȱorganicȱproducts.ȱTherefore,ȱtheȱpresentȱstudyȱonȱorganicȱoliveȱoilȱcanȱbeȱconsideredȱtoȱbeȱaȱpioneerȱinȱtheȱspecificȱfieldȱofȱorganicȱproducts.ȱ

Theȱmethodȱ thatȱwasȱdevelopedȱ forȱmeasuringȱ andȱ analyzingȱ customerȱ satisfactionȱ isȱ calledȱMUSA1ȱ (MUlticriteriaȱSatisfactionȱAnalysis).ȱ Itȱ isȱaȱpreferenceȱdisaggregationȱmodelȱbasedȱonȱtheȱprinciplesȱofȱmulticriteriaȱanalysisȱusingȱordinalȱregressionȱtechniques.ȱItsȱmainȱobjectiveȱisȱtheȱaggregationȱofȱindividualȱpreferencesȱintoȱaȱcollectiveȱvalueȱfunction.ȱMoreȱspecifically,ȱitȱisȱassumedȱaccordingȱtoȱGrigoroudisȱandȱSiskosȱ(2001)ȱthatȱconsumer�sȱglobalȱsatisfactionȱcanȱbeȱexplainedȱbyȱaȱsetȱofȱcriteriaȱorȱvariablesȱrepresentingȱ theȱproduct�sȱorȱservice�sȱcharacteristicȱdimensions.ȱ

Results of the Study

Survey Design

TheȱsurveyȱwasȱconductedȱinȱtheȱregionȱofȱThessalonikiȱinȱGreeceȱbetweenȱNovemberȱ20thȱȬȱ30th,ȱ2000.ȱAȱ totalȱofȱ131ȱorganicȱoliveȱoilȱ consumersȱwereȱ interviewedȱ inȱ specialȱ locationsȱ sellingȱonlyȱorganicȱproductsȱinȱ2ȱsupermarkets.ȱDuringȱtheȱsurvey,ȱeachȱcustomerȱwasȱaskedȱthroughȱaȱsimpleȱquestionnaireȱtoȱexpressȱhis/herȱevaluationsȱforȱaȱsetȱofȱcriteriaȱconcerningȱorganicȱandȱconventionalȱoliveȱoil.ȱLikertȱscalesȱwereȱusedȱtoȱmeasureȱcustomers�ȱjudgments.ȱTheȱquestionȬnaireȱwasȱaddressedȱtoȱthoseȱcustomersȱwhoȱwereȱawareȱandȱhaveȱalreadyȱtastedȱorganicȱoliveȱoil.ȱȱ

Theȱassessmentȱofȱaȱsetȱofȱsatisfactionȱcriteriaȱandȱtheȱdefinitionȱofȱtheȱvalueȱhierarchyȱisȱoneȱofȱtheȱmostȱ importantȱ stagesȱ ofȱ theȱ implementedȱmethodologyȱ (Grigoroudisȱ andȱ Siskos,ȱ 2001).ȱTheȱmainȱsatisfactionȱcriteriaȱinclude:ȱ

Üȱ Healthȱ(theȱdegreeȱthatȱtheȱproductȱcontributesȱtoȱpeople�sȱhealth).ȱ

1 MUSA methodology is fully described in the following paper: Grigoroudis, V., and Y. Siskos (2001), Preference Disaggregation for Measuring and Analysing Customer Satisfaction: The MUSA Method, EJOR, European Journal of Operational Research (to appear)

269

Üȱ Price/qualityȱ(howȱexpensive/cheapȱtheȱproductȱisȱinȱrelationȱtoȱitsȱquality).ȱ

Üȱ Packagingȱ(packagingȱmaterial,ȱcapacity,ȱlabelȱinformation,ȱpracticality,ȱresistanceȱandȱimȬage).ȱ

Üȱ Specificȱcharacteristicsȱ(colour,ȱflavourȱandȱtaste)ȱandȱ

Üȱ Promotionȱ&ȱdispositionȱ(informationȱ&ȱadvertising,ȱavailability&ȱaccess)ȱ

Theȱaimȱofȱthisȱsurveyȱwasȱtheȱidentificationȱofȱcustomerȱpreferencesȱandȱtheȱdeterminationȱofȱtheȱweakȱandȱstrongȱpointsȱofȱorganicȱoliveȱoil,ȱcomparedȱtoȱthoseȱofȱtheȱconventionalȱproduct,ȱtherebyȱ contributingȱ inȱ thisȱwayȱ toȱaȱ strategicȱplanningȱ forȱ theȱ improvementȱofȱ theȱproduct,ȱandȱfinallyȱtheȱidentificationȱofȱmarketȱsegmentation.ȱ

Global Satisfaction Analysis

Accordingȱtoȱtheȱresultsȱofȱtheȱbasicȱcriteriaȱ(whichȱareȱpresentedȱinȱAppendixȱI),ȱitȱisȱobservedȱthatȱtheȱhealthȱcriterionȱisȱfarȱmoreȱimportantȱthanȱtheȱotherȱonesȱ(almostȱ36%).ȱThisȱshowsȱhowȱsensitiveȱcustomersȱareȱinȱtermsȱofȱnutrition.ȱTheȱpackagingȱandȱcertainȱspecificȱcharacteristicsȱhaveȱtheȱsameȱsignificanceȱandȱwereȱawardedȱaȱweightȱofȱ20%ȱeach.ȱTheȱremainingȱcriteriaȱdoȱnotȱseemȱtoȱplayȱanȱimportantȱroleȱtoȱcustomers�ȱpreferencesȱ(Figureȱ1).ȱ

35.69%

12.20%20%

20% 12.11%

HEALTH PRICE/QUALITYPACKAGING SPECIFIC CHARACTERISTICSPROMOTION & DISPOSITION

. Weights Criteria of Organic Olive Oil

Asȱfarȱasȱtheȱaverageȱglobalȱsatisfactionȱindexȱisȱconcerned,ȱitȱhasȱaȱrelativelyȱsatisfactoryȱvalueȱofȱoverȱ78%ȱwithȱmarginsȱforȱimprovement.ȱThisȱisȱmainlyȱdueȱtoȱtheȱcriterionȱofȱhealth,ȱwhichȱhasȱ theȱhighestȱaverageȱ satisfactionȱ indexȱ (96,7%),ȱwhileȱ itȱ isȱ theȱmostȱ importantȱ satisfactionȱdimensionȱforȱcustomers.ȱTheȱcriteriaȱofȱpackagingȱandȱspecificȱcharacteristicsȱhaveȱalsoȱquiteȱhighȱsatisfactionȱindicesȱ(78,1%ȱandȱ84,1%ȱrespectively).ȱHowever,ȱcustomersȱdoȱnotȱseemȱtoȱbeȱsatisfiedȱbyȱtheȱpromotionȱandȱdispositionȱofȱtheȱproductȱ(averageȱsatisfactionȱindexȱisȱ31,3%),ȱevenȱthoughȱ12,1%ȱofȱtheȱrespondentsȱdoȱnotȱconsiderȱthisȱparticularȱcriterionȱimportant.ȱThereȱareȱ stillȱpeopleȱwhoȱdoȱnotȱ evenȱknowȱwhatȱorganicȱproductsȱare.ȱFigureȱ2ȱbetterȱ illustratesȱhowȱdissatisfiedȱcustomersȱseemȱtoȱbeȱfromȱtheȱpromotionȱ&ȱdispositionȱasȱwellȱasȱtheȱpriceȱofȱtheȱproduct.ȱTheȱblackȱlineȱrepresentsȱtheȱglobalȱsatisfactionȱindexȱandȱtheȱdifferenceȱamongȱtheȱvariousȱcriteriaȱcanȱbeȱeasilyȱseen.ȱ

78,39%

51.27%

78.13% 84.08%

31.30%

96.73%

0%

20%

40%

60%

80%

100%

HEALTH PRICE/QUALITY PACKAGING SPECIFIC CHARACTERISTICS

PROMOTION & DISPOSITION

. Satisfaction Indices of the Criteria of Organic Olive Oil

270

Theȱnegativeȱvalueȱofȱ theȱaverageȱdemandingȱ indexȱ (Ȭ47,2%)ȱ showsȱ indeedȱ theȱ factȱ thatȱ cusȬtomersȱareȱnotȱsoȱdemandingȱregardingȱtheȱparticularȱproduct.ȱCustomers�ȱdeclareȱtoȱbeȱsatisȬfiedȱfromȱorganicȱoliveȱoil,ȱevenȱthoughȱtheyȱareȱnotȱhappyȱfromȱallȱtheȱproduct�sȱdimensions.ȱȱ

Theȱactionȱdiagramȱ inȱFigureȱ3ȱ indicatesȱ theȱstrongȱandȱweekȱpointsȱofȱ theȱproduct.ȱTheȱperȬceptualȱmapȱpresentedȱbelowȱrevealsȱthatȱthereȱisȱnoȱdimensionȱinȱtheȱcriticalȱquadrantȱandȱsoȱnoȱ immediateȱ improvementȱ isȱrequired.ȱHowever,ȱattentionȱshouldȱbeȱpaidȱtoȱtheȱcriterionȱofȱpromotionȱ&ȱdispositionȱasȱ itȱcanȱbeȱcharacterizedȱasȱaȱpotentiallyȱcriticalȱsatisfactionȱdimenȬsion.ȱCustomersȱseemȱtoȱbeȱdissatisfiedȱ(lowȱperformance)ȱfromȱitȱasȱwellȱasȱfromȱtheȱpriceȱinȱrelationȱtoȱquality.ȱHealthȱonȱtheȱotherȱhand,ȱ isȱaȱstrongȱpointȱandȱ isȱconsideredȱtoȱbeȱaȱcomȬpetitiveȱadvantageȱofȱorganicȱoliveȱoilȱ(highȱimportanceȱandȱhighȱperformance).ȱ

HEALTH SPECI FI C

CHARACTERI STI CS

PACKAGI NG

PRI CE/ QUALI TY

PROMOTI ON & DI SPOSI TI ON

Low high IMPORTANCE

PE

RF

OR

MA

NC

E

Low

Hig

h

Relative Action Diagram for Organic Olive Oil Criteria

Therefore,ȱ theȱ improvementȱ prioritiesȱ accordingȱ toȱ theȱ improvementȱ diagramȱ inȱ Figureȱ 4,ȱshouldȱbeȱfocusedȱon:ȱ

Theȱpromotionȱ&ȱdispositionȱofȱorganicȱoliveȱoil,ȱgivenȱ thatȱ theȱaverageȱ satisfactionȱ indexȱ isȱparticularlyȱ low.ȱConsumersȱareȱnotȱveryȱdemandingȱandȱalsoȱnoȱgreatȱeffortȱ isȱrequiredȱforȱitsȱimprovementȱdueȱtoȱitsȱhighȱeffectiveness.ȱȱ

Theȱ criterionȱofȱprice/quality,ȱwhereȱ theȱ satisfactionȱ indexȱallowsȱ significantȱmarginsȱ forȱ imȬprovementȱwithȱnoȱparticularȱeffort.ȱ

Theȱpackagingȱofȱtheȱproduct,ȱsinceȱitȱisȱveryȱcloseȱtoȱtheȱ1stȱpriorityȱquadrant,ȱtoo.ȱ

PROMOTI ON & DI SPOSI TI ON

PRI CE/ QUALI TY

PACKAGI NG SPECI FI C

CHARACTERI STI CS

HEALTH

Low High EFFECTIVENESS

DE

MA

ND

ING

Low

Hig

h

Relative Improvement Diagram for Organic Olive Oil Criteria

271

Itȱ isȱworthȱmentioningȱ thatȱeffortsȱ shouldȱbeȱmadeȱ inȱorderȱ toȱmaintainȱ theȱhighȱ satisfactionȱlevelȱofȱtheȱhealthȱcriterion,ȱsinceȱitȱisȱresponsibleȱforȱtheȱsatisfactoryȱglobalȱperformanceȱofȱtheȱproduct.ȱ

Criteria Satisfaction Analysis

Theȱcriteriaȱsatisfactionȱanalysisȱconfirmsȱtheȱconclusionsȱofȱtheȱpreviousȱsection.ȱGenerally,ȱtheȱproduct�sȱperformanceȱisȱquiteȱhighȱinȱtheseȱsatisfactionȱdimensions,ȱwhichȱareȱconsideredȱtoȱbeȱimportantȱbyȱtheȱcustomers.ȱTheȱpartialȱanalysisȱthatȱfollowsȱcouldȱdetermineȱmoreȱspecificallyȱtheȱstrengthsȱandȱweaknessesȱofȱorganicȱoliveȱoil.ȱItȱfactȱitȱcouldȱshowȱexactlyȱwhichȱcharacterȬisticsȱshouldȱbeȱpaidȱmoreȱattentionȱto,ȱforȱtheȱimprovementȱofȱtheȱproduct.ȱTakingȱintoȱconsidȬerationȱtheȱdetailedȱresultsȱinȱAppendixȱII,ȱitȱcanȱbeȱconcludedȱthat:ȱ

Theȱmaterial,ȱtheȱcapacityȱandȱtheȱresistanceȱareȱtheȱmainȱcompetitiveȱadvantagesȱofȱtheȱorganicȱoliveȱoil�sȱpackaging,ȱ justifyingȱ itsȱrelativelyȱhighȱsatisfactionȱ index.ȱCustomersȱareȱquiteȱsatisfiedȱfromȱtheȱremainingȱcharacteristicsȱtoo,ȱbutȱtheyȱdoȱnotȱconsiderȱthemȱtoȱbeȱasȱimȬportantȱasȱtheȱformer.ȱ

Customersȱareȱveryȱsatisfiedȱfromȱtheȱcolourȱandȱtasteȱofȱtheȱproduct.ȱEvenȱthoughȱflavourȱalsoȱhasȱquiteȱaȱhighȱaverageȱsatisfactionȱindex,ȱitȱisȱnotȱaȱsignificantȱcharacteristic.ȱ

Theȱlowȱlevelȱofȱsatisfaction,ȱasȱfarȱasȱtheȱpromotionȱ&ȱdispositionȱisȱconcerned,ȱisȱmainlyȱdueȱtoȱ theȱ subcriterionȱ ofȱ informationȱ andȱ advertisingȱ ofȱ theȱ product.ȱ Particularȱ attentionȱshouldȱbeȱpaidȱtoȱthat,ȱsinceȱcustomersȱregardȱitȱasȱveryȱimportant,ȱbutȱonȱtheȱotherȱhandȱtheyȱareȱcompletelyȱunsatisfied.ȱCustomersȇȱdemandȱ forȱbeingȱ informedȱaboutȱ theȱprodȬuctȇsȱattributesȱisȱcomprehensible.ȱMarginsȱforȱimprovementȱalsoȱexistȱforȱtheȱcharacteristicȱofȱavailabilityȱandȱaccess,ȱevenȱthoughȱitȱisȱnotȱveryȱsignificant.ȱ

Theȱactionȱdiagramȱ inȱFigureȱ5ȱ indicatesȱ thatȱ theȱ informationȱ&ȱadvertisingȱofȱ theȱproductȱ isȱreallyȱinefficient.ȱTheȱfactȱthatȱitȱisȱlocatedȱinȱtheȱcriticalȱquadrantȱsimplyȱshowsȱtheȱneedȱforȱimmediateȱimprovement.ȱApartȱfromȱthat,ȱimage,ȱlabelȱinformationȱandȱpracticalityȱareȱtheȱweakȱpointsȱofȱ theȱpackagingȱandȱcouldȱbeȱ improved.ȱOnȱ theȱotherȱhand,ȱ theȱcolourȱandȱpackagingȱmaterialȱareȱtheȱstrongȱpointsȱofȱtheȱorganicȱoliveȱoil.ȱ

AVAILABILITY

& ACCESS

LABEL INFORMATION

FLAVOUR INFORMATION

& ADVERTISING

TASTE

COLOUR PACKAGING MATERIAL

IMAGE

PRACTICALITY

RESISTANCE CAPACITY

Low High IMPORTANCE

PE

RF

OR

MA

NC

E

Lo

w

Hig

h

Relative Action Diagram for Organic Olive Oil Subcriteria

AccordingȱtoȱFigureȱ6,ȱtheȱimprovementȱeffortsȱshouldȱbeȱfocusedȱonȱtheȱfollowingȱsubcriteriaȱinȱorderȱofȱprecedence:ȱ

Informationȱ &ȱ advertisingȱ ofȱ theȱ productȱ (theȱ criticalȱ dimension).ȱ Customersȱ areȱ veryȱ deȬmandingȱwhereȱ theȱparticularȱ subcriterionȱ isȱ concernedȱ indicatingȱ thatȱ extendedȱ effortsȱshouldȱbeȱmadeȱsoȱasȱtoȱraiseȱtheȱsatisfactionȱlevel.ȱ

272

Labelȱinformationȱshouldȱbeȱmoreȱadequateȱinȱorderȱtoȱmeetȱcustomerȱdemandȱandȱyetȱeffortsȱmadeȱtowardsȱthisȱdirectionȱseemȱtoȱbeȱratherȱminimal.ȱ

Marginsȱforȱimprovementȱalsoȱexistȱforȱtheȱpracticalityȱandȱimageȱofȱtheȱproduct.ȱTheirȱhighȱefȬfectivenessȱmeansȱthatȱnoȱgreatȱeffortȱisȱrequiredȱtoȱachieveȱthisȱpurpose.ȱ

INFORMATION & ADVERTISING

AVAILABILITY & ACCESS

TASTE COLOUR

IMAGE FLAVOUR

LABEL INFORMATION

PACKAGING MATERIAL

RESISTANCE CAPACITY

PRACTICALITY

Low High EFFECTIVENESS

DE

MA

ND

ING

Lo

w

H

igh

Relative Improvement Diagram for Organic Olive Oil Subcriteria

Comparative Analysis between Organic & Conventional Olive Oil

Apartȱfromȱorganicȱoliveȱoil,ȱcustomerȱsatisfactionȱmeasurementȱwasȱappliedȱalsoȱinȱtheȱcaseȱofȱconventionalȱoliveȱoil.ȱWhatȱfollowsȱisȱanȱanalysisȱinȱorderȱtoȱfindȱoutȱtheȱstrengthsȱandȱweakȬnessesȱofȱorganicȱoliveȱoilȱcomparedȱtoȱtheȱconventionalȱone,ȱcontributingȱinȱthisȱwayȱtoȱanȱefȬfectiveȱstrategicȱplanningȱforȱtheȱimprovementȱofȱtheȱproduct.ȱȱ

Inȱgeneral,ȱcustomersȱseemȱtoȱbeȱmoreȱsatisfiedȱfromȱorganicȱoliveȱoilȱevenȱthoughȱtheȱdifferȬenceȱisȱveryȱsmallȱ(onlyȱ2,8%).ȱMoreȱspecifically,ȱaccordingȱtoȱFigureȱ7,ȱtheyȱseemȱtoȱpreferȱorȬganicȱoliveȱoilȱ inȱ termsȱofȱhealthȱandȱ itsȱ specificȱcharacteristics,ȱwhileȱ theyȱ findȱconventionalȱoliveȱoilȱtoȱbeȱbetterȱpackagedȱ(dueȱtoȱtheȱfactȱthatȱtheyȱareȱlessȱdemandingȱforȱthisȱcriterionȱinȱthisȱ case)ȱ andȱ promotedȱ andȱ haveȱ lowerȱ priceȱ relatedȱ toȱ itsȱ quality.ȱ Theȱ tradeȬoffȱ betweenȱhealthȱ andȱ promotionȱ &ȱ dispositionȱ betweenȱ theȱ twoȱ productsȱ isȱworthȱmentioning.ȱ Evenȱthoughȱoliveȱoilȱhasȱwonȱaȱprivilegedȱpositionȱinȱhumanȱnutrition,ȱdueȱtoȱitsȱbiologicalȱandȱnuȬtritionalȱ features,ȱorganicȱoliveȱoilȱ isȱaȱchemicalȬfreeȱproduct,ȱwhichȱsatisfiesȱbetterȱcustomersȱdemandȱforȱqualityȱfood.ȱOnȱtheȱotherȱhand,ȱtheȱexistingȱdistributionȱnetworkȱandȱadvertisingȱcampaignsȱ concerningȱ theȱ conventionalȱoliveȱoilȱ favourȱ itsȱ consumption,ȱmakingȱ clearȱatȱ theȱsameȱtimeȱtheȱneedȱforȱbetterȱpromotionȱregardingȱtheȱorganicȱproduct.ȱ

96.73%

84.08%

78.39%

72.43%

89.71%

65.78%

60.25%

51.27%

78.13%

31.30%

58.14%

75.59%

HEALTH

PRICE/QUALITY

PACKAGE

SPECIFIC CHARACTERISTICS

PROMOTION & DISPOSITION

GLOBAL SATISFACTION

ORGANIC CONVENTIONAL

Satisfaction Indices of Organic & Conventional Olive Oil

Comparingȱnowȱtheȱsignificanceȱofȱtheȱcriteriaȱforȱbothȱproducts,ȱitȱbecomesȱobviousȱthatȱthereȱisȱaȱtradeȬoffȱinȱtermsȱofȱtheȱcriteriaȱofȱhealthȱandȱpackage.ȱThatȱis,ȱcustomersȱconsiderȱtheȱcriteȬrionȱofȱhealthȱ toȱbeȱ farȱmoreȱ importantȱwhenȱorganicȱoliveȱoilȱ isȱconcerned.ȱPeopleȱexpectȱ toȱ

273

haveȱaȱqualityȱproductȱwithȱexcellentȱnutritionalȱfeatures,ȱwhichȱseemȱtoȱbeȱtheȱmainȱreasonȱforȱitsȱconsumption.ȱExactlyȱtheȱoppositeȱhappensȱforȱtheȱpackageȱofȱtheȱproducts,ȱwhichȱseemsȱtoȱbeȱmoreȱsignificantȱinȱtheȱcaseȱofȱconventionalȱoliveȱoilȱ(Figureȱ8).ȱ

35.69%

12.20%

20%

12.11%

13.41%

12.24%

15.81%

12.47%

20% 46.08%

HEALTH

PRICE/QUALITY

PACKAGE

SPECIFIC CHARACTERISTICS

PROMOTION & DISPOSITION

ORGANIC CONVENTIONAL

Criteria Weights of Organic & Conventional Olive Oil

Theȱ aforementionedȱ resultsȱ areȱalsoȱ justifiedȱbyȱ lookingȱatȱ theȱglobalȱ criteriaȱandȱ subcriteriaȱfrequenciesȱofȱ theȱ twoȱproducts,ȱpresentedȱ inȱAppendixȱ III.ȱ Itȱ isȱworthȱsayingȱ thatȱcustomersȱpreferȱmostlyȱorganicȱoliveȱoilȱforȱitsȱcolourȱandȱitsȱtaste.ȱThisȱcanȱbeȱeasilyȱunderstood,ȱsinceȱtheȱnaturalȱmethods,ȱthroughȱwhichȱorganicȱoliveȱoilȱisȱproducedȱandȱprocessed,ȱattributeȱspeȬcialȱandȱdistinctȱcharacteristicsȱ (colour,ȱ tasteȱandȱ flavour)ȱ toȱ thisȱproduct.ȱOnȱ theȱotherȱhand,ȱcustomersȱareȱveryȱsatisfiedȱfromȱtheȱavailabilityȱandȱaccessȱofȱconventionalȱoliveȱoil,ȱdueȱtoȱitsȱestablishedȱdistributionȱnetwork.ȱTheȱ inefficientȱdistributionȱ channelsȱ alongȱwithȱ theȱ limitedȱavailableȱ informationȱareȱtheȱmainȱweaknessesȱofȱtheȱorganicȱoliveȱoil.ȱSince,ȱinformationȱandȱadvertisingȱofȱorganicȱoliveȱoilȱplaysȱaȱreallyȱimportantȱroleȱforȱpeople,ȱthenȱmostȱeffortsȱshouldȱbeȱfocusedȱonȱthisȱdirection.ȱ

Conclusion and Recommendations

Theȱaboveȱanalysisȱmakesȱclearȱwhatȱareȱtheȱstrongȱpointsȱregardingȱorganicȱoliveȱoilȱandȱwhatȱeffortsȱ shouldȱ beȱmadeȱ inȱ orderȱ toȱ improveȱ theȱweakȱpointsȱ ofȱ theȱproduct.ȱAllȱ theȱ recomȬmendedȱstrategiesȱprovideȱalternativeȱsolutions,ȱwhichȱcombinedȱwithȱ theȱexistingȱmarketingȱstrategies,ȱcouldȱleadȱtoȱtheȱdevelopmentȱofȱoptimalȱmarketingȱtechniquesȱforȱtheȱmodificationȱofȱtheȱproduct�sȱcharacteristicsȱinȱtheȱmostȱeffectiveȱway.ȱȱ

TheȱorganicȱcultivationȱofȱtheȱoliveȱtreeȱoffersȱmanyȱadvantagesȱatȱbothȱtheȱsocioȬeconomicȱandȱenvironmentalȱlevelȱinȱGreece.ȱItȱisȱtheȱmostȱimportantȱbiologicalȱproductȱandȱisȱconsideredȱtoȱbeȱaȱpromisingȱoneȱforȱpenetratingȱ intoȱnewȱmarkets.ȱTheȱpresentȱstudyȱhasȱattemptedȱtoȱexȬploreȱcustomers�ȱpreferencesȱregardingȱorganicȱoliveȱoil,ȱaimingȱatȱdevelopingȱaȱstrategicȱplanȱforȱ theȱcontinuousȱ improvementȱofȱ theȱproduct.ȱTheȱ improvementȱpriorities,ȱ takingȱ intoȱconȬsiderationȱcustomers�ȱdemandȱandȱ theȱ requiredȱeffort,ȱshouldȱbeȱ focusedȱonȱ theȱ followingȱ inȱorderȱofȱprecedence:ȱ

Promotionȱ&ȱdispositionȱseemsȱtoȱbeȱtheȱgreatestȱweaknessȱofȱorganicȱoliveȱoil.ȱOnȱtheȱcontrary,ȱconventionalȱoliveȱoilȱseemsȱtoȱbeȱbetterȱpromotedȱthanȱtheȱorganicȱone.ȱTheȱexistingȱdistribuȬtionȱnetworkȱandȱadvertisingȱcampaignsȱconcerningȱ theȱconventionalȱoliveȱoilȱ favourȱ itsȱconȬsumption.ȱEvenȱthoughȱpeopleȱareȱawareȱofȱtheȱnutritionalȱandȱorganolepticȱattributesȱofȱconȬventionalȱoliveȱoil,ȱunfortunately,ȱthereȱisȱaȱlargeȱnumberȱofȱpeopleȱwhoȱstillȱdoȱnotȱknowȱwhatȱanȱorganicȱproductȱ is.ȱInȱadditionȱtoȱthat,ȱcustomersȱareȱuncertainȱaboutȱtheȱorganicȱoriginȱofȱtheȱproduct.ȱTherefore,ȱsystematicȱprovisionȱofȱinformationȱmainlyȱthroughȱadvertisingȱisȱnecȬessary.ȱTheȱproductȱneedsȱ toȱbeȱbetterȱpromotedȱenhancingȱ consumers�ȱawarenessȱofȱ itsȱ feaȬ

274

turesȱandȱnutritionalȱ content.ȱ Informingȱpeopleȱaboutȱ theȱqualityȱ standardsȱ couldȱbeȱaȱgoodȱstartȱforȱbuildingȱtheirȱconfidence.ȱReliableȱsystemsȱofȱmonitoringȱandȱverificationȱforȱcertifyingȱtheȱorganicȱnatureȱofȱoliveȱoilȱareȱalsoȱnecessary.ȱApartȱ fromȱ this,ȱcustomersȱwantȱ toȱ findȱtheȱproductȱeasily,ȱthus,ȱtheȱselectionȱofȱoptimalȱchannelsȱofȱdistributionȱcouldȱcontributeȱtoȱbetterȱaccessȱtoȱtheȱproduct.ȱȱ

Asȱfarȱasȱtheȱpriceȱisȱconcerned,ȱsomeȱpeopleȱareȱwillingȱtoȱpayȱtheȱhighȱprice,ȱsinceȱtheyȱtakeȱintoȱaccountȱorganicȱoliveȱoil�sȱcontributionȱ toȱaȱhealthyȱdiet.ȱNevertheless,ȱ thereȱareȱpeople,ȱwhoȱcannotȱaffordȱtoȱpayȱforȱtheȱproduct.ȱInȱthisȱcase,ȱaȱflexibleȱpricingȱstrategyȱcouldȱbeȱfolȬlowedȱ(bonus,ȱspecialȱoffers,ȱdiscounts,ȱetc),ȱifȱpossible.ȱItȱshouldȱbeȱnoticedȱthatȱtheȱpriceȱisȱexȬpectedȱtoȱbeȱreducedȱifȱtheȱlevelȱofȱtheȱproductionȱrises,ȱthroughȱsomeȱgovernmentȱpoliciesȱandȱpriceȱsupport.ȱ

Evenȱthoughȱpeopleȱseemȱtoȱbeȱquiteȱsatisfiedȱfromȱtheȱwayȱtheȱproductȱisȱgenerallyȱpackaging,ȱattentionȱshouldȱbeȱpaidȱtoȱtheȱlabelȱofȱtheȱpackaging.ȱMoreȱspecifically,ȱtheȱlabelȱisȱcharacterȬizedȱasȱunsatisfactory,ȱsinceȱitȱdoesn�tȱprovideȱenoughȱinformationȱtoȱtheȱconsumer.ȱȱ

Theȱspecialȱproduct�sȱcharacteristicsȱ (colour,ȱ tasteȱandȱ flavour),ȱareȱanotherȱconsiderationȱbutȱtheyȱ areȱ difficultȱ toȱ quantifyȱ objectively.ȱ Peopleȱ seemȱ toȱ beȱ satisfiedȱ fromȱ themȱ andȱ effortsȱshouldȱbeȱmadeȱtoȱmaintainȱandȱimprove,ȱifȱpossible,ȱtheȱlevelȱofȱcustomerȱsatisfaction.ȱȱ

Consumers�ȱneedȱ forȱsafeȱandȱgoodȱqualityȱ foodȱhasȱ increasedȱduringȱ theȱ lastȱ fewȱyearsȱandȱthus,ȱhealthinessȱandȱnutritionalȱvalueȱareȱtheȱbasicȱreasonsȱgivenȱbyȱconsumersȱforȱpurchasingȱorganicȱoliveȱoil.ȱBut,ȱsinceȱchangesȱinȱtheȱcurrentȱmarketȱcanȱaffectȱtheseȱpreferences,ȱtheȱexisȬtenceȱofȱaȱpermanentȱcustomerȱsatisfactionȱbarometerȱisȱconsideredȱnecessaryȱandȱextensiveȱreȬsearchȱisȱrequiredȱinȱorderȱtoȱkeepȱupȱwithȱconsumers�ȱdemands.ȱToȱsumȱup,ȱifȱsuitableȱactionsȱareȱtakenȱatȱaȱnationalȱlevel,ȱthenȱorganicȱoliveȱoilȱcouldȱbeȱaȱstrategicȱproduct,ȱbringingȱGreeceȱtoȱanȱadvantageousȱpositionȱinȱtheȱinternationalȱmarketȱoverȱtheȱcomingȱyears.ȱ

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Appendix

Global Satisfaction Results of Organic Olive Oil

Criterion Subcriterion Weight Average

Satisfaction Index

Average Demanding

Index

Average Improvement

Index

Health - 35,69% 96,73% -66,378% 1,168

Price/Quality - 12,20% 51,27% -1,611% 5,943

Packaging Material 28,81% 86,57% -58,353% 3,87

Capacity 16,67% 78,87% -26,91% 3,523

Label Infor-mation 12,22% 54,16% -1,784% 5,601

Practicality 13,09% 65,65% -8,327% 4,497

Resistance 16,67% 75,74% -27,736% 4,044

Image 12,55% 65,61% -4,344% 4,314

Packaging

Total 20% 78,13% -40% 4,374

Colour 54,28% 94,12% -77,823% 3,19

Flavour 12,39% 73,51% -3,109% 3,281

Taste 33,33% 91,03% -63,34% 2,991

Specific Characteristics

Total 20% 84,08% -40% 3,183

Information & Advertising 87,60% 2,91% 86,301% 85,052

Availability & Access 12,40% 34,62% 3,239% 8,108

Promotion & Disposition

Total 12,11% 31,30% 0,309% 8,322

Global Satisfaction

- - 78,39% -47,198% -

276

Results of Organic Olive Oil Subcriteria

Criterion Weight Average Satisfaction Index

Average Demanding Index

Average Improvement Index

Health 35,69% 96,73% -66,378% 1,168

Price/Quality 12,20% 51,27% -1,611% 5,943

Packaging 20% 78,13% -40% 4,374

Specific Characteristics 20% 84,08% -40% 3,183

Promotion & Disposition 12,11% 31,30% 0,309% 8,322

Global Satisfaction - 78,39% -47,198% -

Criteria Satisfaction Results for Organic & Conventional Olive Oil

Organic Olive Oil Conventional Olive Oil

Criterion Subcriterion Weight Average

Satisfaction Index Weight

Average Satisfaction

Index

Health - 35.69% 96.73% 13.41% 72.43%

Price/Quality - 12.20% 51.27% 12.24% 58.14%

Package Material 28.81% 86.57% 13.21% 64.39%

Capacity 16.67% 78.87% 13.21% 73.41%

Label Infor-mation 12.22% 54.16% 12.61% 52.36%

Practicality 13.09% 65.65% 31.91% 86.22%

Resistence 16.67% 75.74% 16.67% 74.44%

Image 12.55% 65.61% 12.40% 60.78%

Package

Total 20% 78.13% 46.08% 89.71%

Colour 54.28% 94.12% 13.06% 59.84%

Flavour 12.39% 73.51% 21% 31.95%

Taste 33.33% 91.03% 65.94% 39.84%

Specific Characteristics

Total 20% 84.08% 15.81% 65.78%

Information & Advertising 87.60% 2.91% 12.35% 43.85%

Availability & Access 12.40% 34.62% 87.65% 96.00%

Promotion & Disposition

Total 12.11% 31.30% 12.47% 60.25%

Global Satisfaction

- - 78.39% - 75.59%

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