Understanding Consumer Segments: Market Preferences of Urban Olive Consumers in Iraq

Abstract

The Iraqi olive industry faces substantial changes due to the government's ambitious efforts to promote the expansion of olive cultivation. Despite this growth, the market for olive products remains underexplored, particularly from a consumer behavior perspective. This study aims to identify distinct consumer segments within Iraq’s urban olive market by examining the behavioral, demographic, and psychographic characteristics that differentiate these groups. A questionnaire capturing these characteristics was administered to 250 olive consumers across three major regions. The principal component analysis together with cluster analysis were utilized to analyze the data. Principal component analysis identified two factors, grouping olive consumers into Loyal Local Olive Enthusiasts and Price-Conscious Olive Oil Consumers. Cluster analysis yielded three segments: Health-Focused Table Olive Consumers, Value-Seeking Olive Oil Consumers, and Trusting Local Olive Consumers. The identified segments differ from each other regarding their product choices, their price awareness, and their commitment to domestic products. The research results offer producers and policymakers specific guidance to create marketing approaches that meet consumer needs while promoting sustainable growth of Iraq's olive industry