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What will the U.S. look like in 2050?

U.S. Population Projections: 2005–2050 - What will the U.S. look like in 2050?

U.S. Population Projections: 2005–2050 – What will the U.S. look like in 2050?

U.S. Population Projections: 2005–2050

What will the U.S. look like in 2050? Population and Immigration

Between 2005 and 2050, the nation’s population will increase to 438 million from 296 million, a rise of 142 million people that represents growth of 48%.

Immigrants who arrive after 2005, and their U.S.-born descendants, account for 82% of the projected national population increase during the 2005–2050 period.

Of  the 117 additional people attributable to the effect of new immigration, 67 million will be the immigrants themselves and 50 million will be their U.S.-born children and grandchildren

The nation’s foreign-born population, 36 million in 2005, is projected to rise to 81 million in 2050, growth of 129%.

In 2050, nearly one in five Americans (19%) will be an immigrant, compared with one in eight now (12% in 2005).

• The foreign-born share of the nation’s population will exceed historic highs sometime between 2020 and 2025, when it reaches 15%. The historic peak share was 14.7% in 1910 and 14.8% in 1890.

• Births in the United States will play a growing role in Hispanic and Asian population growth, so a diminishing proportion of both groups will be foreign-born.

What will the U.S. look like in 2050? Racial and Ethnic Groups

• The Hispanic population, 42 million in 2005, will rise to 128 million in 2050, tripling in size. Latinos will be 29% of the population, compared with 14% in 2005. Latinos will account for 60% of the nation’s population growth from 2005 to 2050.

• The black population, 38 million in 2005, will grow to 59 million in 2050, a rise of 56%. In 2050, the nation’s population will be 13.4% black, compared with 12.8% in 2005.

• The Asian population, 14 million in 2005, will grow to 41 million in 2050, nearly tripling in size. In 2050, the nation’s population will be 9% Asian, compared with 5% in 2005. Most Asians in the United States were foreign born in 2005 (58%), but by 2050, fewer than half (47%) will be.

• The white, non-Hispanic population, 199 million in 2005, will grow to 207 million in 2050, a 4% increase. In 2050, 47% of the U.S. population will be non-Hispanic white, compared with 67% in 2005.

What will the U.S. look like in 2050? Age Groups

• The working-age population—adults ages 18 to 64—will reach 255 million in 2050, up from 186 million in 2005. This segment will grow more slowly over the projection period (37%) than the overall population. Future immigrants and their descendants will account for all growth in this group.

• Among working-age adults, the foreign-born share, 15% in 2005, will rise to 23% in 2050. The Hispanic share, 14% in 2005, will increase to 31% in 2050. The non-Hispanic white share, 68% in 2005, will decline to 45% in 2050.

• The nation’s population of children ages 17 and younger will rise to 102 million in 2050, up from 73 million in 2005. The child population will grow more slowly in future decades (39%) than will the overall population. Future immigrants and their descendants will account for all growth in this population segment.

• Among children, the share who are immigrants or who have an immigrant parent will rise to 34% in 2050 from 23% in 2005. The share of children who are Hispanic, 20% in 2005, will rise to 35% in 2050. Non-Hispanic whites, who make up 59% of today’s children, will be 40% of children in 2050.

• The nation’s elderly population— people ages 65 and older—will grow to 81 million in 2050, up from 37 million in 2005. This group will grow more rapidly than the overall population, so its share will increase to 19% in 2050, from 12% in 2005. Immigration will account for only a small part of that growth.

• The dependency ratio—the number of people of working age, compared with the number of young and elderly—will rise sharply, mainly because of growth in the elderly population. There were 59 children and elderly people per 100 adults of working age in 2005. That will rise to 72 dependents per 100 adults of working age in 2050.

What will the U.S. look like in 2050? Alternative Projection Scenarios

• Under a lower-immigration scenario, the total population would rise to 384 million, the foreign-born share would stabilize at 13% and the Hispanic share would go up to 26% in 2050.

• Under a higher-immigration scenario, the total population would rise to 496 million, the foreign-born share would rise to 23% and the Hispanic share would go up to 32% in 2050.

• Under a lower- or higher-immigration scenario, the dependency ratio would range from 75 dependents per 100 people of working age to 69 dependents per 100 people of working age. Both of these ratios are well above the current value of 59 dependents per 100 people of working age.

Estimates of the Unauthorized Immigrant Population 2010 - Pew Hispanic
Let's talk about Salvadorans
Have you heard about Cubans?
What are Puerto Ricans like?
Accessing of social networking sites or blogs also saw significant growth, increasing 2.6 percentage points to 20.8 percent of mobile subscribers.

Source: Pew Research Center – 2008

What will the U.S. look like in 2050?

U.S. Population Projections: 2005–2050 - What will the U.S. look like in 2050?

U.S. Population Projections: 2005–2050 – What will the U.S. look like in 2050?

U.S. Population Projections: 2005–2050

What will the U.S. look like in 2050? Population and Immigration

Between 2005 and 2050, the nation’s population will increase to 438 million from 296 million, a rise of 142 million people that represents growth of 48%.

Immigrants who arrive after 2005, and their U.S.-born descendants, account for 82% of the projected national population increase during the 2005–2050 period.

Of  the 117 additional people attributable to the effect of new immigration, 67 million will be the immigrants themselves and 50 million will be their U.S.-born children and grandchildren

The nation’s foreign-born population, 36 million in 2005, is projected to rise to 81 million in 2050, growth of 129%.

In 2050, nearly one in five Americans (19%) will be an immigrant, compared with one in eight now (12% in 2005).

• The foreign-born share of the nation’s population will exceed historic highs sometime between 2020 and 2025, when it reaches 15%. The historic peak share was 14.7% in 1910 and 14.8% in 1890.

• Births in the United States will play a growing role in Hispanic and Asian population growth, so a diminishing proportion of both groups will be foreign-born.

What will the U.S. look like in 2050? Racial and Ethnic Groups

• The Hispanic population, 42 million in 2005, will rise to 128 million in 2050, tripling in size. Latinos will be 29% of the population, compared with 14% in 2005. Latinos will account for 60% of the nation’s population growth from 2005 to 2050.

• The black population, 38 million in 2005, will grow to 59 million in 2050, a rise of 56%. In 2050, the nation’s population will be 13.4% black, compared with 12.8% in 2005.

• The Asian population, 14 million in 2005, will grow to 41 million in 2050, nearly tripling in size. In 2050, the nation’s population will be 9% Asian, compared with 5% in 2005. Most Asians in the United States were foreign born in 2005 (58%), but by 2050, fewer than half (47%) will be.

• The white, non-Hispanic population, 199 million in 2005, will grow to 207 million in 2050, a 4% increase. In 2050, 47% of the U.S. population will be non-Hispanic white, compared with 67% in 2005.

What will the U.S. look like in 2050? Age Groups

• The working-age population—adults ages 18 to 64—will reach 255 million in 2050, up from 186 million in 2005. This segment will grow more slowly over the projection period (37%) than the overall population. Future immigrants and their descendants will account for all growth in this group.

• Among working-age adults, the foreign-born share, 15% in 2005, will rise to 23% in 2050. The Hispanic share, 14% in 2005, will increase to 31% in 2050. The non-Hispanic white share, 68% in 2005, will decline to 45% in 2050.

• The nation’s population of children ages 17 and younger will rise to 102 million in 2050, up from 73 million in 2005. The child population will grow more slowly in future decades (39%) than will the overall population. Future immigrants and their descendants will account for all growth in this population segment.

• Among children, the share who are immigrants or who have an immigrant parent will rise to 34% in 2050 from 23% in 2005. The share of children who are Hispanic, 20% in 2005, will rise to 35% in 2050. Non-Hispanic whites, who make up 59% of today’s children, will be 40% of children in 2050.

• The nation’s elderly population— people ages 65 and older—will grow to 81 million in 2050, up from 37 million in 2005. This group will grow more rapidly than the overall population, so its share will increase to 19% in 2050, from 12% in 2005. Immigration will account for only a small part of that growth.

• The dependency ratio—the number of people of working age, compared with the number of young and elderly—will rise sharply, mainly because of growth in the elderly population. There were 59 children and elderly people per 100 adults of working age in 2005. That will rise to 72 dependents per 100 adults of working age in 2050.

What will the U.S. look like in 2050? Alternative Projection Scenarios

• Under a lower-immigration scenario, the total population would rise to 384 million, the foreign-born share would stabilize at 13% and the Hispanic share would go up to 26% in 2050.

• Under a higher-immigration scenario, the total population would rise to 496 million, the foreign-born share would rise to 23% and the Hispanic share would go up to 32% in 2050.

• Under a lower- or higher-immigration scenario, the dependency ratio would range from 75 dependents per 100 people of working age to 69 dependents per 100 people of working age. Both of these ratios are well above the current value of 59 dependents per 100 people of working age.

Estimates of the Unauthorized Immigrant Population 2010 - Pew Hispanic
Let's talk about Salvadorans
Have you heard about Cubans?
What are Puerto Ricans like?
Accessing of social networking sites or blogs also saw significant growth, increasing 2.6 percentage points to 20.8 percent of mobile subscribers.

Source: Pew Research Center – 2008

The Younger, Hipper Hispanic

The younger, hipper Hispanic target is most likely native-born in the US and differs greatly in their consumer behavior from older/immigrant Hispanics – they speak English fluently and tend to be familiar with main-stream American culture and have similar buying habits to whites, AA and other non-Hispanics.

The Younger, Hipper Hispanic

The Younger, Hipper Hispanic

Young blacks and Hispanic college graduates are reviving cities.  They live in funky row houses and apartments in old neighborhoods that have been spruced up.  They’re part of the ‘Bohemian Mix,’ a cluster that has a substantial percentage of blacks and Hispanics.  It’s the most affluent of the racially and ethnically diverse groups.  Bohemians socialize across racial lines, jog, shop at Banana Republic, read Vanity Fair, watch Friends and drive Audis.

Of note regarding youth in general: “Youth Digerati” (as opposed to the old nickname “Youth Literati”), an ethnically mixed group, is the most affluent urban cluster.  Young Digerati tend to live in fashionable neighborhoods and are now more affluent than “Money & Brains” – older professional couples who have few children and own homes in upscale city neighborhoods.
Source: TIA

Profile of Hispanics Online

Profile of Hispanics Online

Profile of Hispanics Online

Hispanics are entering cyberspace more quickly than other ethnic groups – Internet use jumped 7.4 percent in 2004 after an 8 percent spurt in 2003.  The typical Hispanic-American Internet user is age 28, slightly more likely to be male and unmarried, according to a study by the Association of Hispanic Advertising Agencies.  Half of all Hispanic-American Internet users are Spanish-language dominant, meaning that they speak Spanish at home more than English (Preparer’s Note: this could be attributed to their family-oriented lifestyle and may not necessarily affect the way younger Hispanics use the Internet).

This particular study found that the profile of Hispanics Online is:
• Hispanics spend almost 5-1/2 hours online weekly

• 71 percent of their usage is from a home computer

• 75% use the Internet for email

• 60% to get news

• 54% to listen to music

• 43% to chat

A March 2004 study by AOL/Roper ASW shows that 14 million Hispanics in the US are online. While this is already an impressive number, the growth rate is even more impressive. About 20% of online Hispanics had connected their households to the Internet less than six months earlier. More than half who were not yet online expected to connect within the next two years.  The more Latinos connect online, the less time they spend with other Spanish media, such as print or TV. Marketers will increasingly want to reflect this shift in media consumption in their advertising budgets.

Uncovered Facts About Online Hispanic Women and their Media Usage
Elianne Ramos is the principal and CEO of Speak Hispanic Communications and vice-chair of Communications and PR for LATISM.
never lose your sense of wonder
Social sites eclipse e-mail use

Source: TIA

Today’s Hispanic Consumer

When targeting the multicultural market, race and ethnicity are becoming less important than education, income, home ownership, age and lifestyles.  Hispanics, African-Americans and Asian-Americans are moving to middle-class suburbs and prosperous neighborhoods, and are identified more by their lifestyles and spending habits than by their ancestry.

Today's Hispanic Consumer - Hispanic Marketing Basics

Today’s Hispanic Consumer – Hispanic Marketing Basics

The composition of the Hispanic population is shifting.  Hispanics now account for 13.7% of the total population.  The “new dynamics” of the Hispanic market hinge on the emerging second and third generations, native- and foreign-born differences, and broad geographic growth.

According to a Census Bureau report released in June 2004, an estimated 39.8 million Latinos live in the U.S., an increase of almost 13% since the 2000 Census. It projects Hispanics will increase their ranks by 188% to 102.6 million—or roughly one-quarter of the population—by 2050.  Hispanics will count for nearly one out of every five U.S. residents by 2012 if current growth rates continue.

The Hispanic Consumer now constitutes the largest minority group in the United States, according to the U.S. Census Bureau, comprising 13 percent of the population, or 39 million people. Moreover, their buying power has nearly tripled, from $222 billion in 1990 to $653 billion in 2003, according to a University of Georgia report.

The spending power of the U.S. Hispanic Consumer is also increasing.  The median income of Hispanic households rose 20 percent from $27,977 to $33,565 between 1996 and 2001, while the median for all U.S. households climbed just 6 percent.

“Whether a Latino household wants to buy a lawn mower has less to do with their ethnicity than if they happen to be homeowners,” says Michael Mancini of Claritas. The two great forces, age and diversity, have rendered the traditional marketing categories irrelevant in many cases.

One of the most common mistakes advertising executives make when marketing to a Hispanic consumer is assuming that the U.S. Hispanic population is homogeneous.
Source: TIA

Hispanic Consumer Shopping Behavior Insights

As National Hispanic Heritage Month is underway to recognize the impact of Hispanic culture in the United States, the Nielsen Company provides insight into the shopping behavior of Hispanic consumers, a collective buying power of nearly $1 trillion.

Hispanic Consumer Shopping Behavior Insights

Hispanic Consumer Shopping Behavior Insights

“It is critical for retailers and marketers to understand the wide range of factors driving Hispanic consumers’ shopping behavior,” said Tim Kregor, president, Nielsen Consumer Panel Services. “By understanding what Hispanic consumers are buying, where they’re buying it, how they’re buying it and why, retailers and marketers can adapt product offerings and promotions to ultimately better satisfy this rapidly growing and diverse consumer segment.”

Hispanic Consumer Shopping Behavior Insights on Brand Loyalty

Nielsen Homescan research across multiple product categories shows that as Hispanics become more acculturated, there is less evidence of brand loyalty. For example, select brand/flavors of carbonated soft drinks shows that 33 percent of English language-only/preferred Hispanics met their needs with a particular cola, while nearly 70 percent of Spanish language-preferred homes fulfilled their carbonated beverage requirements with the identical brand. Similar trends were noted for other categories, such as laundry detergent, cereal, toothpaste and beer. In this example, language serves as the primary measure of determining acculturation level, which influences Hispanic consumers’ brand loyalty and shopping habits.

“When it comes to brand loyalty and the Hispanic consumer, the key learning for marketers is understanding the importance of building a brand relationship during the initial stages of acculturation and maintaining this connection as Hispanics’ integration to American life increases,” said Kregor.

Hispanic Consumer Shopping Behavior Insights: A Touch of Home

Nielsen finds there is a preference among Hispanics to shop at stores that resonate with the sights, sounds, smells and sensibilities of their homeland. This sense of nostalgia helps create an important connection with the Hispanic consumer. Retailers can create a familiar sense of community and comfort zone for consumers through product assortment, importing specialty lines and stocking items with bilingual packaging, hiring bilingual employees, posting bilingual signage and distributing bilingual coupons.

Hispanic Consumer Shopping Behavior Insights: Shopping a Family Affair

For Hispanic consumers, shopping can be a family affair, an outing for all ages from abuelos (grandparents) to ninos (children). Retailers wanting to attract the attention of the Hispanic consumer would benefit from creating a family-friendly atmosphere, such as balloons and providing rest areas for seniors. And, while respect is a fundamental of customer relations across the board, there is a certain reverence extended to elders within the Hispanic culture that should be reflected in staff dealings with older shoppers. “This can be as simple as offering an arm to an unsteady patron navigating the aisle, or selecting hard-to-reach items for their cart.”

Hispanic Consumer Shopping Behavior Insights: Staying Connected

In addition to maintaining tight-knit family units and neighborhoods, many Hispanics make a concerted effort to keep in touch with those living in their homelands. According to Scarborough Research, a service of The Nielsen Company, Hispanics of all language preference are heavy users of phone service, 95 percent more likely than the average consumer to have spent $100 on long distance, and 18 percent more likely to have rung up a cell phone bill of $150 or more during the last month. Searching for a more favorable deal, Hispanic consumers are more likely to plan on switching cellular providers during the next year, and 11 percent more likely to use a prepaid cellular plan.

When it comes to Internet purchases, Scarborough Research finds that roughly 25 percent of Hispanic Internet users purchased airline tickets, books and clothing/accessories online in the past year, with six percent spending more than $2,500 online during that time.

Hispanic Consumer Shopping Behavior Insights: Media Views

Between 2000 and 2007, Nielsen Media Research estimates the number of Hispanic TV households expanded by one-third, from 8.7 million to 11.6 million. Concurrently, all demographic groups decreased slightly for Hispanics, except adults ages 18 and up, which increased slightly. While cable and pay cable gained popularity among Hispanic viewers, VCR ownership slipped.

TV usage habits parallel that of the average household, with Hispanic homes tuning in 58 hours and 39 seconds per week, slightly more than the 57 hours and 39 seconds of the composite finding. Hispanics scored lower on viewing per TV households as well, for every measure except children ages 2 – 11, who watched a mere one minute more than the composite result per week.
Source: Hispanic PR Wire

Emerging U.S. Hispanic Market Brimming with Opportunity

The rapid expansion of Hispanics into American suburbs presents sizable opportunities for marketers who understand the rich cultural diversity and purchasing attitudes of this segment, according to the latest Consumer Dynamics study from Acxiom® Corporation.

The study, titled “Getting Into the Market Share Race With the Emerging Hispburbanite Market,” taps into the explosive growth centered in 10 markets.

Emerging U.S. Hispanic Market:

  • Charlotte, NC
  • Nashville-Davidson, TN
  • Raleigh, NC
  • Memphis, TN
  • Greensboro, NC
  • Little Rock, AR
  • Indianapolis, IN
  • Birmingham, AL
  • Minneapolis, MN
  • Aurora, CO

The study reveals:

  • Hispanic suburban expansion is projected to continue.
  • The Hispanic market encompasses four distinct Hispburbanite groups.
  • Marketers have above average growth opportunities in areas with high concentrations of Hispanics.
  • Marketers should segment this culturally diverse group for maximum marketing impact.

The study shows Hispburbanites differ from Hispanics living in the main port-of-entry cities of New York, Los Angeles and Miami as they tend to be younger, more acculturated, single and wealthier. They tend to fall into four distinct groups:

  • Upstarts and Upbringing – Made up of some of the younger Hispanic households, this is the most acculturated of all groups. They primarily speak English away from home and are a mix of singles and recently married couples, some with young children.
  • Trendy Traditions – A somewhat younger mix, this group is mostly single and childless. Though slightly less acculturated than Upstarts and Upbringing, this group prefers American name brands and brand-name bargains.
  • Recent Arrivals –The least acculturated of all groups, these households more frequently comprise immigrants who have resided less than 10 years in the United States. They prefer to speak Spanish at home and away, and are primarily single renters with low to middle incomes.
  • White Picket Fences – A married and single mix of adults with above-average income makes up this group. Often owning their own homes, these households are more comfortable with financial institutions than other groups and are building net worth. This group is primarily English speaking and while they do save, their incomes allow for plentiful shopping, especially for jewelry and business clothing.

Overall, Hispburbanites tend to be mostly second- and third-generation Hispanics with increasing consumer buying power. “This market represents tremendous opportunity for companies across industries,” said the Acxiom’s senior manager for analytic, geospatial and segmentation products. “Segmentation allows marketers to target initiatives that encompass cultural preferences based on the characteristics of the defined consumer groups.

“Intelligent marketing decisions will maximize results, greatly improving return on marketing dollars spent,”  he added. “At a time when marketers are under intense scrutiny to produce measurable results, this study provides invaluable consumer insights.”

Source: Acxiom

Bilingual Hispanics Media Use

When Hispanics turn on their televisions over half of them are tuning into an English language show. Read how Bilingual Hispanics live with ease in both worlds.

According to a recent Ipsos U.S. Hispanic Omnibus study, U.S. Hispanics, regardless of whether their language preference at home is English (43%), or Spanish (52%), are turning to either language to meet their needs. When Hispanics turn on their televisions over half of them are tuning into an English language program.

Younger viewers are not the dominating presence in front of the English language small screen. Hispanics, aged 18-34, are actually less likely (54%) than older Hispanics, aged 55+, to prefer English language television (61%). And:

  • 52% of Hispanics aged 35-54  prefer English language television.
  • 45% percent of Hispanics with children in the household say that they prefer Spanish language television.
  • 63% of Hispanic households without children are highly likely to prefer English television
  • 80% of College educated Hispanics prefer English language television

Mixing languages does not complicate the lives of United States Bilingual Hispanics who are living with ease in both worlds – one that is in English and the other that is in Spanish, concludes the report.

The person playing that Spanish beats music on radio is most likely to be a Hispanic female (51%), as they are more likely than Hispanic males (38%) to tune into Spanish radio. Among radio preferences overall, Hispanics are practically split as 49% stated that they listen to English language radio while 45% percent listen to Spanish language radio.

  • Hispanics aged 55+ are more likely to prefer radio in English than in Spanish (56% vs. 38%)
  • Among those 35-54, half (50%) prefer radio in English.
  • Hispanics, aged 18-34, are practically split among preference as 46% prefer English and 47% prefer Spanish radio.
  • 55% of all Hispanics said that their language preference for the Internet is English.
  • 39% of Hispanics age 18-34 prefer Spanish language internet sites
  • 42% of Hispanic females prefer Spanish when surfing the web compared to just twenty nine percent (29%) of Hispanic men

53% of Hispanics read the news and they are looking for information in both languages:

  • 53% in English to find out the current affairs in their local U.S. city
  • 33% in Spanish to follow up with the news in their home country
  • 44% read Spanish newspapers that cover news in their community in the United States. 57%, with an annual household income under $50,000, do so

Cynthia Pelayo, Ipsos senior research manager, says “… many US Hispanics continue to speak primarily Spanish, among their peers, family and friends, to watch television in Spanish and to be involved in cultural community events that are mostly conducted in Spanish.”

She goes on to note that their innate skill to utilize either language is an advantage in functioning in US institutions while preserving their Hispanic heritage.

Bilingual Advertising Campaign Pepsi Next
Hispanic Acculturation Process
I am a Wise Latina Too!
When it comes to a kid's television-viewing habits, the mom's language can matter.

With a sample of this size, notes the report, the results are considered accurate within ± 3.1 percentage points, 19 times out of 20, of what they would have been had the entire population adult homeowners in the U.S. been polled. These data were weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau.
Source: Jack Loechner – http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=100359&passFuseAction=PublicationsSearch.showSearchReslts&art_searched=hispanic&page_number=0

Consumer purchases are influenced by Product Placement, Sampling, and Word-of-Mouth

Consumer purchases are influenced by Product Placement, Sampling, and Word-of-Mouth Collectively and this varies by product category and consumer group.

Product Placement, Sampling, and Word-of-Mouth Collectively Influence Consumer Purchases

According to BIGresearch’s Simultaneous Media Survey (SIMM12), the effectiveness of product placements* varies by product category and consumer group. Consumers indicate product placements have the most influence on their grocery purchases with 14.8% saying so, up from 13.0% one year ago. Electronics and apparel round out the top three categories most influenced by product placements.

As marketers search for ways to increase marketing ROI, product placements are a viable option, says the report, particularly when targeting specific ethnic groups. African American, Hispanic and Asian consumers are more likely to be influenced to buy electronics, grocery and apparel from product placements*.

Influence of Product Placement On Purchases by Product Category & Ethnic Group (% of Respondents)

  • All
  • Grocery
  • Electronics
  • Apparel
  • Home Improvement
  • Eating Out
  • All
  • 14.8%
  • 13.2%
  • 11.5%
  • 7.9%
  • 7.6%
  • White / Caucasian
  • 14.6%
  • 11.5%
  • 10.4%
  • 7.1%
  • 6.8%
  • African American
  • 16.9%
  • 20.2%
  • 15.0%
  • 11.2%
  • 10.3%
  • Asian
  • 15.3%
  • 18.0%
  • 17.0%
  • 10.2%
  • 10.0%
  • Hispanic
  • 16.7%
  • 18.3%
  • 16.9%
  • 9.9%
  • 10.3%

Source: BIGresearch, October 2008

Gary Drenik, President & CEO of BIGreserch, concludes “Though the use of product placements is growing… today’s savvy consumers… recognize when advertisers are trying to manipulate them… when executed effectively, product placements can… create highly influential word of mouth among specific consumer groups.”

45.8% of Caucasian, and 44.0% of Asian consumers, indicate their purchases are influenced by word of mouth**. 41.1% of African American consumers say the same when it comes to grocery. Dining out purchases appear to be most affected by word of mouth**.

Influence of Word of Mouth On Purchases by Product Category & Ethnic Group (% of Respondents)

  • All
  • Eating Out
  • Electronics
  • Grocery
  • Home Improvement
  • Apparel
  • All
  • 52.9%
  • 44.4%
  • 40.7%
  • 35.2%
  • 34.3%
  • White /Caucasian
  • 56.2%
  • 45.8%
  • 41.5%
  • 37.2%
  • 33.3%
  • African American
  • 45.8%
  • 42.2%
  • 41.1%
  • 29.3%
  • 38.6%
  • Asian
  • 43.5%
  • 44.0%
  • 37.0%
  • 31.8%
  • 37.2%
  • Hispanic
  • 44.1%
  • 40.6%
  • 39.1%
  • 31.6%
  • 37.5%

Source: BIGresearch SIMM12, October 2008

And, while placement and word of mouth** impact future purchases, sampling*** can create an almost immediate impulse purchase. According to the Product Sampling Study by Arbitron, sampling successfully reaches 70 million consumers every quarter, and one-third of customers who try a sample will buy the sampled product in the same shopping trip, and 58% of those surveyed reported that they would buy the product again.

In the study, consumers were grouped into three categories:

  • “Acquisitions” are those who were new to the sampled product
  • “Conversions” are those who had heard of the product but had never bought it
  • “Retentions” are those who had previously purchased the product

Consumer Purchases are Influenced by Key Factors

While 85% of the Retentions and 60% of the Conversions said they would purchase the sampled product in the future, sampled products encouraged 47% of the Acquisitions, those who had never heard of the product before, to purchase the product again.

Carol Edwards, Senior Vice President, Sales, Out-of-Home Media, says “… this study enforced that the sampling approach is both effective in making new customers aware of products, while also establishing a firmer identity with those consumers who have considered the product before.”

Highlights of the study:

  • 28% of those surveyed reported that they have been offered product samples within the past three months
  • 64% of those surveyed claimed they had accepted product samples. 66% of the customers characterized as Acquisitions accepted samples, as well as 63% of the Conversions, and 63% of the Retentions
  • 35% of those surveyed claimed they purchased the sampled product on the same day. 26% of the Acquisitions bought the product right away, as well as 19% of the Conversions, and 31% of the Retentions
  • 24% of those surveyed claimed that a sampled product had specifically replaced an item that they had planned on buying. 20% of the Acquisitions were planning to make the switch, as well as 33% of the Conversions, and 18% of the Retentions.

* Product placement, or embedded marketing, is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the good or service is featured. Product placement became common in the 1980s.

** Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication (literally words from the mouth), but now includes any type of human communication, such as face to face, telephone, email, and text messaging.

*** Sampling isa method of encouraging product trial where consumers are offered samples, typically free-of-charge. See also:Accidental Sample, Convenience Sampling.
Source: Wikipedia & Jack Loechner

Census Facts on Hispanics of Mexican origin

29.2 million

Number of U.S. residents Hispanics of Mexican origin in 2007. These residents constituted 10 percent of the nation’s total population and 64 percent of the Hispanic population.

18.25 million

Number of Hispanics of Mexican origin who lived either in California (10.97 million) or Texas (7.28 million). People of Mexican origin made up more than one-quarter of the residents of these two states.

25.8

Median age of people in the United States of Mexican descent. This compares with 36.7 years for the population as a whole.

609,000

Number of Mexican-Americans who are U.S. military veterans.

1.3 million

Number of people of Mexican descent 25 and older with a bachelor’s degree or higher. This includes about 362,000 who have a graduate degree.

37%

Among households where a householder was Hispanic of Mexican origin, the percentage of married-couple families with own children younger than 18. For all households, the corresponding percentage was 21 percent.
Source: U.S. Census Bureau

Understanding Hispanic Market Segmentation – Part I

Let’s talk segmentation – Part I

by Claudia Goffan  CEO of Target Latino
Graphics by Jim Perez

Hispanic Market Segmentation:

The reasons behind the use of acculturation levels in Hispanic Marketing. Hispanic Market segments and projected size by Claudia Goffan, CEO of Target Latino.

Why levels of acculturation?

  • In the 1900’s European immigrants would force their children to forget about the customs of the “old world” and “just be” Americans – this was a process of assimilation
  • To acculturate means to incorporate or acquire a new culture without foregoing another one
  • Hispanics do not “assimilate”, they “acculturate”. They do not let go of customs and/or language

Facts about Hispanic Market Segmentation

Hispanic Market Segmentation

Hispanic Market Segmentation

The three segments by Acculturation Levels

  • Non-Acculturated: Persons that only navigate within the Latino culture. Most of them have recently immigrated to the U.S. and prefer to speak Spanish
  • Acculturated: Persons born in the U.S. of Hispanic descent. They prefer to speak English and can navigate into the Latino culture
  • Semi-Acculturated: People that can navigate in both cultures.

What factors get them from one segment to the next?

  • Fully-Acculturated: Hispanics are proud of their culture and parents will tend to teach their U.S.-born children the customs of their ancestors
  • Non-Acculturated: Hispanics born outside of the U.S. can only navigate from non-acculturation to semi-acculturation. The speed at which this will take place depends on these three major factors:
    –Time
    –Education
    –Socio economic status in country of origin

How fast will the market acculturate?

The speed at which this will take place depends on these three major factors:

  • Time: the longer they live in the US, the longer they are exposed to a new culture and are able to incorporate it into their everyday lives
  • Education: the higher their education level, the easier the understanding of another culture will be
  • Socio economic status in country of origin: the higher the socio economic status they enjoyed in their country of origin, the higher the likelihood that they have been exposed to other cultures, thus enabling a faster and smoother transition

Here are some examples of acculturation levels and speed:

  • My brother was born in Buenos Aires, Argentina -30 years old at the time-, highly educated -a lawyer-, seasoned international traveler and with 6 years of English studies from the London Cultural Institute under his belt. He was visiting me in Los Angeles.
    On the second day of his visit, I arrived home to find him holding a box of sugar and laughing so hard he was in tears. He kept on saying, “soy un sudaca (I am so third world).” I didn’t understand what he was talking about at first, so I waited for him to calm down. When he did, he explained to me that he had ripped the top of the box open in order to reach the sugar at which time he realized that there was a pouring spout on its side.As you can see, it took him just a few minutes to “acculturate”, that is, to learn to navigate in the American culture (at least a little bit).
  • A friend of mine took a little longer to acculturate. She is also very well educated -a dentist- and a world traveler, but is older than my brother and understands very little English. Apparently she had bought a brand of laundry detergent at the supermarket to wash a sweatshirt I had given her. After washing it, she remarked that the sweatshirt was of low quality, because it had faded so badly. I was puzzled, but soon forgot about it.When she returned back to her country, she left the “detergent” with me. I immediately noticed that it wasn’t detergent at all, it was “bleach.” She had mistaken a product type for a brand. No wonder the blue sweatshirt had faded.In order to acculturate she had to be told about her mistake. You can bet she never did that again.
  • Latino banks spend more than a year teaching its underserved Hispanic customers how to use the ATM machines. The reason is that most of their customers have never used one. The bank is acculturating them into American society.

Differentiating Characteristics between segments – Hispanic Market Segmentation

Hispanic Market Segment Characteristics

Hispanic Market Size

  • Population: 42.7 million as of July 1, 2005 or 14 percent of the nation’s total population. (This estimate does not include the 3.9 million residents of Puerto Rico.)
  • 102.6 million – The projected Hispanic population as of July 1, 2050 or 24 percent of the nation’s total population on that date.
    -Source: Census data
  • We need to be aware that in this market there is about a 40% to 50% undercount

Hispanic Market Size by Acculturation Levels Segment

Hispanic Market Segments Size

Hispanic Market Segments Size

By Havi Goffan, CEO of Target Latino

https://www.targetlatino.com/

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here's the thing #SethGodin #Quote

here’s the thing #SethGodin #Quote