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september · december 2008 · esic market

Perceived quality as a antecedent for buying intention of the olive oilfrom bajo Aragon with protecteddesignation of originEspejel-Blanco1, Joel; Fandos-Herrera*, Carmina (2008). “Perceived quality as a antecedent forbuying intention of the olive oil from bajo Aragon with protected designation of origin”. Esic-Market, 131, pp. 231-251.

Joel Espejel-Blanco and Carmina Fandos-HerreraDepartment of Economics and Business Management. University of Zaragoza

AbstractThis paper aims to analyse the relationship between the perceived quality of anagro-food product with Protected Designation of Origin (PDO) as a criterionfor loyalty and buying intention of the Aragonese consumers, being a key fac-tor that the attainment of this PDO is recent. To this end, a clear distinction isestablished between quality perceived through intrinsic and extrinsic attributes.To demonstrate the causal relationship between the variables mentioned, anempirical study was conducted with Aragonese consumers of olive oil withPDO. The methodology we used was the structural equations model. Theresults show that what influences consumer loyalty and buying intention isexclusively quality measured through the intrinsic attributes. These results dis-play the particular significance of intrinsic attributes such as colour, flavour,form and appearance in the marketing and success of PDO products. Howe-ver, results such as place of origin or the image of a traditional product do nothave the influence expected. This may be explained by the short time that thisDesignation of Origin has been running, some six years, and so consumers arenot aware of the links required to consolidate the image of this PDO.

Keywords: Quality, intrinsic attributes, extrinsic attributes, loyalty, buyingintentions, protected designation of origin.

JEL Code: M21, M30, M31.

(*) Contact author: [email protected]. Postal adress: Gran Vía,nº 2, Zaragoza, 50005.Telephone: +34 976 761782.(1) The authors are gra-teful for the financialsupport provided by theMinistry of Science andTechnology (SEC2005-4972; PM-039/2006),the Government of Ara-gon (S-46) and the San-tander Cetranl HispanoBank.


perceived quality as a antecedent for buying intention of the olive oil from bajo aragon with protected designation of origin

1. IntroductionUnder marketing point of view, the analysis of customers is going througha process in constant evolution. Their available information is increasinglybetter in quality and quantity, so they are becoming more demandingwhen buying certain products, the previous thing has supposed an evolu-tion in their buying habits (Rodríguez del Bosque, Collado and Herrero,2005; Ruiz and Sanz, 2007). In the same line, they are able to pay a hig-her price for products that they consider as better quality.

These changing needs are linked to new habits and values of peopleabout the configuration of their preferences, for instance, food securityand health, as they consider fundamental that products are certified andguaranteed by Official Certifying Bodies. Besides, the concept of quality istied to a big complexity due to constant changes in customers needs,among others.

The producers of traditional food are aware about the need of carryingout new proposals in order to achieve and create value. Traditional foodproducts can achieve competitive advantages by using quality, product dif-ferentiation and branding policy as marketing strategies. The practice ofusing Protected Designations of Origin (PDO) as common, generic orumbrella brands has spread ever wider in Europe, because they allow pro-ducers to exploit natural and human factors as will as geographical originand local production methods. The proof of this is that the number ofPDOs, Protected Geographical Indications (GPIs) and Traditional Specia-lity Guaranteed (TSGs) based on the quality systems established by theEuropean Union has increased year by year (there are currently over 500),together with the number of firms and products covered (Fandos y Fla-vián, 2006).

The main aim of this paper is to analyse if higher perceived quality,measured by intrinsic and extrinsic attributes, in “Protected Designationof Origin” food products, is linked to higher loyalty and buying intentionfor aragonese consumers, supposing in this way a key factor the fact thatthis Protected Designation of Origin is only been used six years and can

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be seen as “young” certification by the market. The product chosen hasbeen olive oil from Bajo Aragon with PDO.

2. Perceived quality, loyalty and buying intentionIn the specialised literature the concept of quality has been analysed fromthe perspective of the products (Rao and Monroe, 1989; Rose, 1990;Chang and Kinnucan, 1991; Sjolander, 1992; Showers and Showers,1993; Archer and Wesolowsky, 1996; Issanchou, 1996; Waller and Ahire,1996; Chao, 1999; Kroll et al., 1999; Wang et al., 2003); the services(Parasuraman et al., 1985; 1988; 1991; 1993; 1994; Bolton and Drew,1991a; Cronin and Taylor, 1992; 1994; Sweeney et al., 1997; Robinson,1999; Zeithaml, 2000; Furrer et al., 2000; Brady and Cronin, 2001; Coxand Dale, 2001; Zeithaml et al., 2002; Díaz, 2005); and, the business andinformation management (González and González, 2006).

Thus, the concept of quality may be analysed from two different pers-pectives: objective quality and perceived quality (Brunsø et al., 2005). Thefirst concept refers to the technical, measurable and verifiable nature ofproducts, processes and quality control procedures; subjective or percei-ved quality refers to value judgements or perceptions of quality by the con-sumer.

Thus, Olson and Jacoby (1972), Szybillo and Jacoby (1974), Zeithaml(1988), Oude Ophuis and Van Trijp (1995) and Steenkamp (1997) feel itis relevant to classify the concept of perceived quality into two groups offactors that enable the consumer to evaluate products: intrinsic attributesand extrinsic attributes.

Intrinsic attributes are related to the physical aspects of the product,such as colour, flavour, shape and appearance; extrinsic attributes are rela-ted to the non-physical attributes of the product, such as brand, qualitycertificate, price, country or place of origin, the shop, packaging and pro-duction information (Bernués et al., 2003).

The concept of loyalty is the behaviour pattern of customer preferencefor a particular brand/product from a selection of similar brands/products

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over a period of time that influences decision-making evaluation process(Jacoby and Kyner, 1973; Jacoby and Chesnut, 1978).

These authors suggest analysing loyalty based on two analysis pers-pectives: behavioural and attitudinal. From the behavioural perspective,Dick and Basu (1994) define customer loyalty as the relationship betweenrelative attitutde and repurchase behaviour. According to de Ruyter et al.(1998), early customer loyalty studies focussed on the behavioural pers-pective and have recently centred on the attitudinal factor.

Thus, from the attitudinal perspective, Oliver (1997, 1999) defines cus-tomer loyalty and proposes a loyalty development model, with four mainphases: cognitive, affective, conative and action. Yi and La (2004) suggestthat loyalty (behavioural and attitudinal) measurements provide insightsinto the nature of loyal customers. Loyal customers also tend to display spe-cial preferences, commitment, positive word of mouth commentary, a lowrate of change to competitive brands and a willingness to pay top prices.

The concept of buying intention has been used in the specialist marke-ting literature as a measurement of prediction of a subsequent or successi-ve purchase behaviour (Morwitz and Schmittlein, 1992; Grewal et al.,1998).

Thus, in psychology, the Theory of Reasoned Action states that thebest predictor of behaviour is intention (Fishbein and Ajzen, 1975). Infact, intention is predicted through attitudes to behaviour and subjectivenorms.

In the marketing context, Notani (1987) claims that the prediction ofconsumer purchasing is based on this reasoning. Furthermore, for a com-plete representation of consumers’ purchase behaviour, their attitudes,preferences, motivations and profitability perceptions need to be conside-red.

Similarly, it is fair to say that buying intention is a future projection ofthe consumer’s behaviour that will significantly help to shape his attitudes.Thus, if we analyse the basic components of the attitudes model proposedby Assael (1995), it is clear that attitudes are actually developed as a result

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of the combination of three basic elements that are associated with theconsumer’s beliefs, emotions and forecast actions: cognitive, affective andconative or behavioural.

Specifically when talking about buying intention, this concept reflectsthe behaviour the consumer is likely to adopt in his most immediate pur-chase decisions (e.g. what product or brand he will be buying next, etc.).Thus attitudes are developed over time through a process of learning andare marked by family influences, membership (actual and aspirational) ofsocial groups, information received, experience and character.

2.1. Causal relationship between perceived quality, loyalty and buyingintention

Firstly, with regard to the influence that intrinsic attributes may have onconsumers’ perceptions and purchase behaviour, it should be said that theperception of quality is a complex process that begins with the acquisitionand classification of signals that are associated with the intrinsic attribu-tes, such as the product’s appearance, colour, flavour or presentation.However, it should be pointed out that some of these attributes cannot beproperly perceived by the individual until the product has been consumed(e.g. flavour and smell).

Thus, it would be fair to say that the level of perceived quality asso-ciated with the intrinsic attributes may rise on consumption and, as aresult, consumer loyalty and buying intention for a PDO food productmay be increased (Fandos and Flavián, 2006). In this respect, Olsen(2002) maintains that there is a strong relationship between consumers’perceived quality, satisfaction, loyalty and buying intention for foodstuffs.Thus, the following hypotheses are proposed:

H1: The perceived quality of the intrinsic attributes of a PDO product hasa positive and significant impact on consumer loyalty.

H2: The perceived quality of the intrinsic attributes of a PDO product hasa positive and significant impact on consumer buying intention.

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With regard to the possible influence that the perceived quality of theextrinsic attributes may have, it is worth noting that the perceived qualityof traditional food products is higher because the consumer recognisesthat the product was produced in a given region with its own specific geo-graphy and climate, tradition and know-how (Calvo, 2001).

Similarly, a competitive company should not be content with just offe-ring products and services to the market; it should make an effort to cre-ate value for the consumer. Therefore, the more distinctive and harder toimitate a company’s product is – as a result of its greater intangibility – themore likely the company is to create loyalty among its customers (Bigné etal., 2000).

Furthermore, other companies strive to exceed customers’ expectationsof quality in order to produce high levels of satisfaction and thus loyaltyand buying intention (Stanton et al., 2004). In this respect, the extrinsicattributes of a PDO food product, such as place of origin, the image of anatural product or greater know-how associated with the production cen-tre are all distinctive symbolic factors that are hard to imitate because oftheir unique nature.

Erickson et al. (1984) maintain that image variables might be thebrand, price, celebrity endorsement or region of origin. In particular, the-re has been a review of the importance attached to the place of origin inbuying intention decisions with products such as fruit and vegetables(Tootelian and Segale, 2004); what influence price and brand with regardto the country of origin have on the evaluation and buying intention offoodstuffs (Ahmed et al., 2004); and consumers’ perception of the effectof the country of origin on the buying intention for luxury or convenien-ce products for public or private consumption (Piron, 2000).

It is thus likely that the perception of quality associated with symbolicfactors such as the image of the product, the region of origin and so onwill have a positive influence on consumer loyalty and buying intentionswith PDO products (Fandos and Flavián, 2006). Hence, we may formula-te the following hypotheses:

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H3: The perceived quality of the extrinsic attributes of a PDO product hasa positive and significant impact on consumer loyalty.

H4: The perceived quality of the extrinsic attributes of a PDO product hasa positive and significant impact on consumer buying intention.

To study the relationship between consumer loyalty and buying inten-tion, we need to consider the numerous marketing studies (Gardner, 1985;Westbrook, 1987; Westbrook and Oliver, 1991, Allen et al., 1992) that rela-te consumers’ attitudes to their buying behaviour. Loyalty is defined as anattitude when it involves positive affects and feelings toward the product.

It thus seems likely that consumers will attach greater importance tothe perception of quality if the role of designations of origin as collectivebrands that seek to differentiate highly specialised products is undersco-red. Consequently, it would seem reasonable to suppose that the commit-ment to repeat the purchase of a preferred product due to the feelings andaffects formed as a result of this perception of quality will have a clearlypositive influence on the consumer’s predisposition to repeat the purchase(Olsen, 2002, Fandos and Flavián, 2006). Hence, we may propose thefollowing hypothesis:

H5: Consumer loyalty toward a PDO product has a positive and signifi-cant effect on the consumer’s buying intentions.

3. MethodologyIn order to test the above hypotheses, we have performed a data-gatheringexercise involving a series of actions. Firstly, a group dynamic was carriedout to learn the opinions of a small number of consumers and establish abasis for the development of the scales used to quantify the concepts ofperceived quality of intrinsic and extrinsic attributes, loyalty and buyingintention. In order to achieve a better fit, the scales developed were thenpresented to various external marketing specialists with expert knowledgeof the issues associated with PDO food products for their opinion.

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The information was gathered by a group of previously-prepared inter-viewers, through a personal interview using a closed-answer structuredquestionnaire. The interviews were carried out at the entrances/exits ofshopping malls and specialist food shops, and subjects were asked aboutconsumption of the specific product.

Specifically, the consumer was asked to indicate his/her level of agree-ment or disagreement with a series of statements based on a 7-point Likertscale. In particular, information was gathered on perception of quality,concepts such as flavour, colour, aroma, appearance and acidity level forthe intrinsic attributes, and concepts such as place of origin, traditionalproduct image, loyalty and intention to purchase Bajo Aragon olive oil forthe extrinsic attributes. Finally, information was gathered on frequency ofpurchase, varieties of olive oil usually bought and more detailed informa-tion on purchasing behaviour and sociodemographic characteristics.

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Geographic scope • Main cities of Autonomous Community • of Aragon

Universe • Consumers of olive oil with PDO

Methodology • Personal interviews based on a structured • questionnaire

Sampling procedure • Convenience

Sample size • 223 valid interviews

Sample error • ± 6.69 %

Confidence level • 95 %; p = q = 0.5

Date of fieldwork • May 2004

Table 1. Technical Conditions

Source: Own elaboration.



After the completion of the fieldwork, a screening process was perfor-med to obtain 223 valid questionnaires. The technical conditions of thestudy are given in Table 1. The analytical process to refine the scales andobtain measurement instruments to quantify the aspects under analysiswas structured in a series of stages, which will be examined in the next sec-tion of this paper.

4. ResultsThe analytic process carried out to refine the scales was structured in sta-ges, as follows. In the first place, an exploratory analysis was performedto test the reliability and unidimensionality of the subscales. The analysiswas carried out using Cronbach’s Alpha, providing satisfactory levels ofreliability in all cases without the need to eliminate any of the indicators2.Similarly, the initial analyses of unidimensionality provided satisfactoryresults in all cases, reflecting the existence of a single dimension in each ofthe sub-scales used without the need to eliminate any indicator3.

The second step consisted of a confirmatory reliability analysis, whichwas carried out using EQS version 5.7b statistical software. We opted forthe Maximum Robust Verisimilitude Method of estimation. This processrequired developing various confirmatory models in line with the metho-dology proposed by Hair et al. (1999) based on the three criteria establis-hed by Jöreskog and Sörbom (1993)4. This process resulted in the succes-sive elimination of various indicators from the majority of the scales usedin the analysis. In addition, we calculated the composite reliability coeffi-cient as Del Barrio and Luque (2000) recommend, as well as the AVE coef-ficient for each of the proposed scales. The values obtained were accepta-ble (see Table 2).

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(2) Specifically, theresults of the CronbachAlpha test for the differentdimensions and sub-dimensions forming partof the model was asfollows: perceived quality0.90, loyalty 0.89 andbuying intention 0.95.The results of the Cron-bach Alpha test for thetwo sub-dimensionsmaking up the perceivedquality scale were: 0.91in the sub-dimensionreferring to intrinsic attri-butes and 0.87 in thesub-dimension referringto extrinsic attributes.(3) In particular, thevariance explained by thedifferent dimensions was:perceived quality (72%for the sub-dimensionreflecting intrinsic attri-butes and 61% for thesub-dimension reflectingextrinsic attributes),loyalty 87.57% andbuying intention 75.53%.(4) In order to ensurecompliance with the weakconvergence condition,Steenkamp and Van Trijp(1991) suggest analysingthe significance of thefactorial regression coef-ficients in the indicators



The third and final step consisted of a process of refinement for thesubsequent analysis of internal validity. Specifically, this analysis requiresconformance with the properties of reliability, content validity and cons-truct validity (Flavián and Lozano, 2003). Reliability was confirmed on asatisfactory basis using various analyses, as indicated above. The exhaus-tive prior review of the bibliography and the refinement of the scales byvarious experts ensured that a satisfactory result was obtained for contentreliability. Finally, verification of construct validity required testing forconvergent validity and discriminatory validity in the various sub-scalesmaking up each of the scales considered in the study.

The correlations of the scales analysed were calculated in order to esta-blish convergent validity. The results confirm that the various dimensionsare significantly correlated, confirming convergent validity (see Table 2).

The discriminatory validity of the dimensions was confirmed on thebasis of the data reflected in Table 2. When the confidence intervals bet-ween each pair of dimensions were calculated, a score of “1” was obtai-ned in each case falling outside these intervals. Consequently, all of thedimensions considered in the study measure concepts that are clearly dis-tinct from each other. Discriminatory validity was also confirmed by cal-culating χ2 differences between the proposed model and each of the sixnew models, in order to establish whether they are significantly different

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Correlations ConfidenceInterval

Diferences χ2 AVE FCC

QInt-BuyInt 0.71* (0.12; -0.05) 602 (df=72; p<0.01) QInt 0.65 0.92QInt- QExt 0.92* (0.06; -0.02) 105 (df=72; p<0.01) QExt 0.67 0.86QInt- Loyalty 0.62* (0.11; -0.06) 421 (df=72; p<0.01) Loyalty 0.75 0.90BuyInt -Loyalty 0.79* (0.16; -0.07) 560 (df=72; p<0.01) BuyInt 0.68 0.86BuyInt-QExt 0.63* (0.12; -0.05) 255 (df=72; p=0.01)Loyalty-QExt 0.89* (0.13; -0.05) 149 (df=72; p<0.01)

Table 2. AVE and Compound Realiability: Convergent and Discriminatory Validity

Note. “*” Coefficients are significant at a level of 0.01.Source: Own elaboration

and their correspondinglatent variables. This wasdone revising the value ofthe student t (T-value >1.96). In addition, thoseindicators that do notmeet the strong conver-gence conditions (Steen-kamp and Van Trijp,1991) were also elimina-ted when the standardi-sed coefficients (l) werelower than 0.5 (Hilde-brant, 1987). As a thirdcriterion, we consideredthe elimination of thoseindicators that did notreach a minimumstrength in the relevantlinear relationship, mea-sured via the observedR2, requiring a minimumscore of 0.3 (Blesa,2000).



(Baggozi and Yi, 1998; Del Barrio and Luque, 2000). As shown in Table2, the six comparisons indicate that the proposed model is significantlydifferent in each of the new models. Consequently, the discriminatory vali-dity of the scales forming the proposed models is assured.

Figure 1 shows the results obtained in the relationships addressed inthe research, as well as goodness of fit within the recommended levels.

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Goodness of Fit Measures: BBNFI= 0.94; IFI= 0.96; CFI= 0.95; GFI= 0.85; AGFI= 0.97; RMSEA=0.046; Normed 2= 3.34

Figure 1. Shows the results obtained in the relationships addressed in the research, as wellas goodness of fit within the recommended levels

Note. “*” Coefficients are significant at a level of 0.01.Source: Own elaboration

Thus, perceived quality through the intrinsic attributes had the expec-ted impact on loyalty and buying intention displayed by consumers, asshown by the significance and sign of the model parameters; thus there isevidence to back hypotheses H1 and H2. Similarly, H5 would be suppor-



ted, as it has been observed that greater levels of loyalty have a notableeffect on the consumer’s buying intention. However, it was observed thatthe relationship established between extrinsic attributes and consumerloyalty and buying intention was not significant, and so we find no evi-dence to support hypotheses H3 and H4.

In view of these results, we can stress the relevance of the extrinsicattributes for this type of product. Thus, the influence of the extrinsicattributes on loyalty and buying intention is eclipsed by the influence ofthe intrinsic attributes on both variables.

5. ConclusionsIn this research paper it can be certified that one of the main reasons thatmake typical products from a certain place so successful in based on the linkproducts-place of origin. This place of origin is seen as a source of differentialassets such as: ingredients, nutritional value, tradition, place of origin gua-ranteed, system of production and sensorial and individual product values.

The main aim of this paper has been to analyse the relationship bet-ween perceived quality of a food product (olive oil with PDO assignationin this case), taking specially into account the two aspects of this variable,the so called, intrinsic and extrinsic attributes, with loyalty shown by cus-tomers, as well as the influence of this loyalty with buying intentions. Thisanalysis was framed by a recently created PDO, as important factor forpurchasing process for consumers in Aragon, region of Spain.

Concretely, the results obtained with this analysis have shown a clearlysignificative and positive influence of the level of perceived quality linkedto intrinsic attributes, like colour, taste and smell, about customers’ loyaltyand about this loyalty on buying intention.

On the other hand, we found no evidence that extrinsic attributes arelinked to loyalty. A justification for these results can be found in the levelof knowledge or familiarity that customers have about this new PDO, sin-ce that the associations merged with the image may be not consolidated incustomers mind.

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These results are very interesting and can derive important implicationswhen developing strategies destined there is necessary to develop lastingrelations with the consumers of this kind of food products (Cambra andPolo, 2006). Thus, in can be underlined that PDO should strengthen theperceived quality of intrinsic attributes in order to achieve higher consu-mer loyalty, emphasizing the organoleptic factors like colour, taste andsmell, and so gain higher repurchase intention.

Also, the most important implication is the importance for managersto recognise that extrinsic attributes are the assets that should receive big-ger attention. This means to empower the perception of quality associatedto symbolic factors such as product image and place of origin, in order toinfluence positively the satisfaction toward certain product and finally thecustomer’s loyalty and buying intention.

Thus, the sector should emphasise the design of optimal promotionand communication strategies, and so achieve a stronger PDO image. Theaim would be to communicate the information related to place of origin,culture, tradition, environmental factors and so to get a higher acceptationand success for products. All this would achieve a higher perceived qua-lity, and influence higher levels of satisfaction, loyalty and buying inten-tion of consumer.

Likewise, the results obtained allowed to show how producers thatwant to get sustainable competitive advantages should not just launchproducts to the market but to make an effort to create value in a specificway for each consumer. As a result, the more rare and distinctive a pro-duct is the higher odds to get loyal consumers and fulfil quality levels ithas.

Finally, it could be pointed out that some limitations should be takeninto account for future research lines. First, the geographic field it tookplace, that make desirable to contrast the results in other influence places,and with other kinds of PDO with similar characteristics. At last, we couldstart with the point of view of variables like loyalty and buying intentionare not the only variables that make up customer behaviour, so it would

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be necessary to add others such as the satisfaction, trust, commitment,perceived risk, willingness to pay a premium price or moderating varia-bles, like involvement or familiarity and experience and so be able tofollow a more global and complete research about consumer behaviour.

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