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- Author or Editor: Vanessa Shonkwiler x
Over the past decade, pecans (Carya illinoinensis) have experienced slow to stagnant growth as other nuts see continual growth. Given demand, producers and retailers are needing to finding new ways to market pecans. Using a conjoint experiment with market segmentation, the market for several value-added pecan products (e.g., cinnamon sugar, chocolate-covered, salted and roasted, pralines, and plain roasted) were assessed. Three to four segments within the market were found depending on product size. For a 1.5-oz product, there are three segments (Budget Traditional, Sugar Origin, and Sugar High) that value product attributes differently. The Budget Traditional values plain roasted pecans and has the largest negative reaction to higher prices. The Sugar Origin segment values pralines and chocolate-covered pecans while also valuing Oklahoma- and Texas-produced pecans. The Sugar High segment has a positive preference for chocolate-covered, and pralines and a disdain for cinnamon sugar, salted and roasted, and plain roasted. Examining the 8-oz package size, there are four market segments. The Budget Traditional and Sugar High are similar to the 1.5-oz package size; however, the 8-oz market also has a Price Sensitive segment that highly values low prices as well as a Cinnamon Hater segment that does not like cinnamon sugar pecans. Demographics and past purchasing are key factors for explaining how a consumer is likely to be grouped into segments. Age (i.e., generation) and whether a consumer had purchased nuts within the past year were important indicators across package size.
Labeling strategies are often discussed in the context of local food purchase. Substantial research has been undertaken to discern buyers’ preferences for different labeling strategies associated with a production practice or a geographic location. Some studies have also emphasized the substitution or complementarity effects that may occur across these different labels. Using a large choice experiment with 1820 respondents across six US southern states, this research evaluates buyers’ preferences for co-labeling strategies, focusing on the association of a production practice and certifications (USDA Organic and Certified Naturally Grown) alongside six different production locations, ranging from local to imported sources. We focus on pint baskets of cherry tomatoes, chosen due to their popularity among purchasers of fresh produce. Based on the results provided by a Bayesian Mixed Logit model, we derived the respondent-specific posterior distribution of the partworths associated with each production location and regressed each of those against demographic indicators. Our findings highlight that most buyers substitute between USDA Organic and Certified Naturally Grown (CNG), and a minority consistently opt for the same production practice option. In addition, we underscore that price, or an indication of origin predominantly guides nearly half of buyers’ choices. We find that the premium for CNG is slightly superior to the organic one. Last, older respondents and respondents with a higher degree of education value produce grown within their state over neighboring states and more distant origins.