Pecan preferences associated with mid-west nut buyers

Abstract

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.