A Hedonic Analysis of Processed Tomato Prices Using Italian Regional Markets Data

Area of Science:

• Agricultural Economics
• Food Marketing
• Consumer Behavior

Background:

• The Italian processed tomato market, historically strong, has declined since the early 2000s.
• Intense price competition characterizes the market, traditionally focused on low-price products.
• Producers are seeking product differentiation strategies to improve profit margins.

Purpose of the Study:

• To estimate the implicit prices of various attributes in Italian processed tomato products.
• To identify key features that drive consumer value and producer differentiation.
• To inform effective product differentiation strategies for the Italian processed tomato industry.

Main Methods:

• Utilized sales data from Italian processed tomatoes across multiple retail stores.
• Employed a hedonic price model to quantify the value of product attributes.
• Analyzed market data to determine implicit prices for specific product features.

Main Results:

• Protected Designation of Origin (PDO) significantly increases product value.
• Organic certification is a highly valued attribute by consumers.
• Tomato variety indication and flavoring also contribute positively to implicit prices.
• These attributes are key drivers for consumers seeking higher quality processed tomatoes.

Conclusions:

• Product differentiation strategies should focus on enhancing territorial links (PDO) and environmental sustainability (organic certification).
• Highlighting organoleptic features (flavoring, tomato variety) can effectively differentiate products.
• These strategies can help producers escape price competition and achieve higher margins.