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Emerging U.S. Hispanic Market Brimming with Opportunity

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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

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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.

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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

Emerging U.S. Hispanic Market Brimming with Opportunity

/in /by

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

/in /by

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.

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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

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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

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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

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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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