Market Segmentation Using Intrinsic Product Attributes: Evidence From the Tunisian Olive Oil Market

Abstract

Market segmentation using consumer preferences is important for the marketing strategy. For staple foods, like olive oil in the Mediterranean region, intrinsic attributes of the product lead these preferences and should prevail in determining consumer groups. In this paper, we apply conjoint analysis and clustering methods to identify olive oil consumer segments in the Tunisian market. A survey was carried out among 274 consumers who were required to blind taste of samples and give scores for 12 different samples of Tunisian Extra Virgin Olive Oil (EVOO). Results revealed three differentiated segments of consumers; 43.8% of consumers prefer strongly flavored olive oil with deep green color while 38.9% support light yellow olive oil with lower flavor. These preferences are described by age, income category, and consumption frequency. Our results indicate that in countries where olive oil is a traditional food ingredient, the marketing strategy must focus on the product’s intrinsic attributes to better target customers.

Keywords:

• Cluster
• conjoint analysis
• consumer preferences
• multinomial logit
• olive oil
• Tunisia

JEL CODE:

• C38
• Q13