Competing supplies of olive oil in the German market: An application of multinomial logit models

Abstract

Abstract Germany consumers are shown to differentiate their use of olive oil by country‐of‐origin, with Spain, Italy, and Greece being important competing suppliers. Effects of demographics, product characteristics, and information sources impact the probability of buying olive oil by origin. Multinomial logit models are estimated and used to show the gains (or loses), and point to the important role of promotions to Spain's olive oil. The importance of these variables are ranked for each country and Odds Ratios are used to compare the relatives gains among the major suppliers. [EconLit citations: Q130, Q180]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 393–406, 2003.