Consumer demand heterogeneity and valuation of value-added pulse products: a case of precooked beans in Uganda

Abstract

Abstract Background This study investigated consumer demand heterogeneity and valuation of a processed bean product—“precooked beans” with substantially reduced cooking time. Common bean is the most important source of protein for low- and middle-income households in Uganda. Its consumption is, however, constrained by long cooking time, high cooking energy and water requirements. As consumption dynamics change due to a rapid expansion of urban populations, rising incomes and high costs of energy, demand for fast-cooking processed foods is rising. An affordable, on-the-shelf bean product that requires less time, fuel and water to cook is thus inevitable. Methods A choice experiment was used to elicit consumer choices and willingness to pay for precooked beans. Data used were collected from 558 households from urban, peri-urban and rural parts of central Uganda and analyzed using a latent class model which is suitable when consumer preferences for product attributes are heterogeneous. Results Study results revealed three homogeneous consumer segments with one accounting for 44.3% comprising precooked bean enthusiasts. Consumers derive high utility from a processed bean product with improved nutrition quality, reduced cooking time and hence save water and fuel. The demand for the processed bean is driven by cost saving and preference for convenience, which are reflected in willingness to pay a premium to consume it. Heterogeneity in attribute demand is explained by sex and education of the respondents, volumes of beans consumed, location and sufficiency in own bean supply. Conclusions Our findings suggest that exploring avenues for nutritionally enhancing while optimizing processing protocols to make precooked beans affordable will increase consumer demand. These results have implications for market targeting, product design and pricing of precooked beans.

Keywords

• Precooked beans
• Preference heterogeneity
• Choice experiment
• Latent class model
• Uganda