Aquaculture America 2023

February 23 - 26, 2023

New Orleans, Louisiana USA

IDENTIFICATION AND CHARACTERIZATION OF SEAFOOD CONSUMER CLUSTERS PRE- AND POST-PANDEMIC

Shraddha Hegde*, Carole Engle, Jonathan van Senten, and Madan Dey

Department of Rangeland, Wildlife and Fisheries Management

Texas A&M University

College Station, TX 77840

shraddha@tamu.edu

 



The global COVID-19 pandemic has caused several changes in consumer behavior and preferences for various products in the market including seafood. This study identifies some of the changes in consumer behavior between 2019 and 2020 through a combination of cluster analysis and a multinomial logistic regression to compare the pre and post pandemic consumer survey data collected across 20 major seafood markets in the U.S. Factor Analysis of Mixed Data (FAMD) technique in R software was employed on the survey data to identify most important consumer demographic factors that contribute to the variation in the data. K-means clusters were then formed based on the identified factors. This was followed by a multinomial logistic regression with K-means cluster as the dependent variable and the attribute preferences of consumers for seafood consumed at restaurants as the explanatory variables to understand the attribute preferences of various clusters pre- and post- pandemic. Important demographic factors identified through FAMD for 2019 and 2020 were age, education, household size, number of persons aged above 12 years in the household, ethnicity, household income, and annual expenditure on seafood purchase. Although the principal factors identified for 2019 and 2020 survey responses were the same, there were differences in the resulting k-means clusters for the two years. While six clusters were identified for 2019 through gap statistics, the optimal number of clusters for 2020 were 10. Given that most of the demographic characteristics, except for income and expenditure, remained the same for individual respondents in 2019 and 2020, the variations in clustering can be attributed to changes in household income and seafood expenditure before and after pandemic. Clusters in both 2019 and 2020 exhibited some typical characteristics such as higher seafood expenditures associated with higher income, higher education levels and/or larger household size. On the other hand, clusters with lower seafood expenditures were associated with lower income groups with lesser education and/or higher age groups (50-70 years). A multinomial regression analysis on clusters showed that, in 2019, the highest seafood consuming cluster with an average annual expenditure of $6,045 considered taste, texture, nutritional quality, and U.S. farmed as the important attributes preferred for seafood consumed at restaurants. Similar clusters of people who, on average spent $11,881 on seafood in 2020 placed less importance to texture of the fish but considered price along with nutritional quality and U.S. farmed fish as important attributes for restaurant consumption of seafood. Although seafood prices did not increase in 2020, growing consumer price consciousness can be explained from fears of an economic downturn and potential loss of income. These results provide important insights into changes in consumer behavior with respect to seafood that can guide U.S. seafood industries to develop effective marketing strategies in the post-pandemic U.S. economy.