Communication Behaviors in the Multicultural Marketplace

In 2011 with our national online data set we summed the number of hours per week that different cultural groups spend on different communication activities in English and in another language. These included:

●     Listening to CD’s

●     Listening to the radio

●     Listening to MP’3’s on any device including an iPod or mobile phone

●     Listening to music on television

●     Using social media like Facebook or Twitter

●     Listening to Internet radio like Pandora or Last.fm

●     Talking with friends

While these are not all the communication activities a person can engage in, the list should be a good indicator of overall communication activities by different cultural groups. The graph below reports the total number of hours per week reported in the average by each of the cultural groups in English and in another language. Clearly, the other language used would be almost universally Spanish in the case of Hispanics.

Average Sum of Diverse Communication Behaviors

The results are quite striking. Hispanics in general spend more time per week in the communication activities measured, and those Latinos who answered in Spanish (HS) reported spending more than 60 hours in media and communication per week, almost double the amount of time than non-Hispanic Whites (NHW). What is particularly salient is that the amount of time Latinos who prefer Spanish engage in English language communication is almost the same as non-Hispanic Whites. These Latinos are on “double communication duty.”

It is also important to emphasize that while Hispanics who prefer Spanish spend at least half of their time with English media and communication activities, they still spend the other half with English language communications. So it is not one language that is dominant for these online consumers, they split their communication world in two.

Hispanics who prefer English (HE) spend about 25% of their time with Spanish language media and communication, and they are the second most communicative group of all, with more than 50 hours per week. The third most communicative group is that of African Americans (AA) with about 43 hours per week, followed by Asians (A) with about 38 hours per week. Non-Hispanic Whites reported the least amount of time per week engaged in communication activities. A next posting will break down each of the activities. Here, however, the striking overall differences in amounts deserve some discussion.

The sheer amount of time spent on communication by Latinos in general should be of interest to marketers as these consumers should be especially available to receive commercial messages. We have known for some time that Hispanics are more welcoming of marketing messages, but this analysis substantiates the amazing communication openness of Hispanic consumers.

Further, marketers that produce entertainment content should find here substantiation of the enormous potential of this Latino audience. Social media use and personal interactions not only serve for the reinforcement of social ties but they also spread the word about marketing efforts.

In this case as in others we have reported earlier, we find that Hispanics and minorities in general tend to be more communicative than their non-Hispanic White counterparts. This should give some food for thought to marketers who think that their future still resides in the so called “general market.”

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. Melanie Courtright, previously with DMS Insights championed this effort. She is now with Research Now and continues to support our research. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

Multicultural Marketing Communication Certificate at FSU

This Spring the Center for Hispanic Marketing Communication at Florida State University started offering a Graduate certificate that can be completed online by almost anyone with an undergraduate degree, anywhere in the country or the world. The full description of the Certificate can be read by clicking HERE. The graduate courses that compose the certificate are:

ADV 5415 Hispanic Marketing Communication- This course looks at the largest and fastest growing minority in the US and examines appropriate ways to culturally connect with them. Offered in the Spring Online

ADV 5605 Account Planning- Enables students to obtain cultural insights from consumers across different cultures and segments – Offered online during the Summer

ADV 5416 Multicultural Marketing Communication- Reviews cultural differences and similarities and provides the context for research projects to better understand the consumer communication and behavior of these emerging groups – Offered online in the Fall.

MMC 6469 Diffusion of Innovations- This course is an examination of various theoretical and practical issues pertaining to communication's roles in the diffusion of innovations across cultures- Currently only available in the classroom during the Summer, but since the Certificate allows for a course substitution, remote students can take a course in their own location in the classroom or online from another institution of higher learning upon approval of the administrator of the certificate.

For information about enrolling to the above online courses please contact Charlotte Suffront-Garcia at CSouffrontGarcia@campus.fsu.edu.

This is an exciting development and we invite inquiries and applications to the individual courses and the Certificate program.

We also started an undergraduate version of the certificate for those who have not completed an undergraduate degree.  You can see the description of the Undergraduate Multicultural Marketing Communication by clicking HERE.

Multicultural Marketing and the Super Bowl 2012

Marketers seem to be missing the ball. Madison Avenue and its chronic lack of cultural awareness and representation are evident in the 2012 Super Bowl ads. Blacks and Hispanics can only be seen in the background and as factory or service workers of some type. An online car seller shows a Black buyer a a main character, and a car ad shows a couple of Inuits as main characters, other than that it looks like non-Hispanic Whites own the show along with multiple dogs and polar bears.

Listen, I love non-Hispanic Whites, dogs, polar bears, and most other interesting and cute characters.  That is not the issue.  The issue is that minorities are about 40% of the total population in the US and they are almost invisible and stereotyped in the most prominent ad event in the United States. And I am not asking for fair representation. That is not the issue either.  I am advocating for business sense. How can emerging minorities identify with brands if they are not seen associated with them? And, how can they be compelled if the cultural values of these minorities are not represented?

As I was enjoying the Super Bowl ads it came to mind how our industry is still incredibly naive about what is driving the economy and innovation in this great Country. Emerging minorities are driving technology adoption and have larger families. I am mystified as to how can advertising firms miss the changing cultural environment of the US.  I thought I would share my surprise.

Multicultural Consumer Spending on Entertainment

With our national online data collected in 2011, students in the graduate Multicultural Marketing Communication course and I measured some key indicators of entertainment spending in the multicultural marketplace. We have known that Hispanics and other emerging minorities tend to watch more movies in theaters and also rent more to watch at home than non-Hispanic Whites[1] . We have not known much about overall entertainment spending, videogame and music spending, however. Below I explore some of the trends available as reflected in our data.

Overall spending on entertainment on a typical month is lead by Hispanics who prefer to communicate in Spanish followed by Asians and by Hispanics who prefer English.  African Americans and non-Hispanic Whites, while also spending substantially on entertainment, are less likely to spend $50 or more per month. The following graph shows the percentage of people in each cultural group that indicate spending $50 or more on entertainment in a typical month.

These tendencies tell marketers some of the story of where entertainment spending is likely to come from in the future. Looking at average expenditures instead of percentages of people spending more than $50 changes the picture a bit as seen in the following chart.

Here the reader can see that in the average Hispanics in general spend between $10 and $20 dollars more on entertainment in a typical month. This chart also highlights how sensitive the data is to different representations since in the average African Americans are closer to Hispanics in their spending than when looking at percentages of individuals. Still the consistent trend is that there are cultural groups leading with their wallets and they need to be taken seriously in future planning.

We also looked at expenditures in music purchases, and here the trend is for Latinos to lead even more dramatically as seen in the chart below:

To further substantiate these trends we asked consumers to tell us about the number of concerts they attend during a year:

Concert going follows a similar pattern to that of entertainment in general.  Given the popularity of video games these days we also asked about video game expenditures:

Not surprisingly emerging minorities overindex in comparison with non-Hispanic Whites in regards to video game expenditures in the average. This may not be too surprising because of the inherent youth of emerging minorities in the US.

The data we have collected since 2006, every year, has shown similar patterns. The consistency is quite impressive and it is hard to dismiss. Despite economic adversity Latinos, and in some cases, others continue to spend on what is important to them. Music, events, and the enjoyment of everyday life is precisely part of what is important to survive in the good and the bad times. There are cultural tendencies that marketers need to better understand. It is not just the superficial apparent differences among ethnic groups but the deep beliefs they hold dear and on which they are willing to spend their hard earned money. I suggest that marketing executives should take a serious look at where their budget priorities are in order to enhance the bottom line of their companies. That is by prioritizing their merchandizing and communications to address the preferences of those who lead in the multicultural marketplace.

The data for this study was collected during March 2011. The online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights, a uSamp Company, managed and graciously contributed the sample and data collection. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

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[1] See “Hispanic Marketing: Connecting with the New Latino Consumer” by Felipe and Betty Ann Korzenny, published by Routledge, 2011, page 314.

Dialogue: Uniqueness of Marketing to Latinos in the US

I would like to have this post be a dialogue to build knowledge on what is unique about marketing to US Hispanics.

Please post comments in response to the following question:

In your opinion, what are unique factors about marketing to Latinos in the US?

Music: MP3s and CDs in the Multicultural Marketplace

Are ethnic groups in the US society equally acquiring MP3s and physical CDs, or are there differences in their rate of adoption? That was a question we asked in the FSU’s Multicultural Marketing Study conducted in collaboration with DMS Insights the Spring of 2011.

We phrased the survey questions “How often do you do each of the following?” and the response options were “Never,” “Sometimes,” and “Very Often,” for each of purchasing MP3s online and purchasing physical CDs.

 At first I aggregated “Sometimes” and “Very Often” for both products and the results show an increasing tendency of the use of MP3s purchased online for African Americans, Asians, Hispanics who prefer English, and Hispanics who prefer Spanish, with the latter 3 groups showing a stronger tendency for MP3s to catch up to CD’s.

The differences in the purchase of physical CDs among these groups are not as dramatic as the differences for MP3s. Clearly, CDs are an established and declining category while MP3s are a growing innovation. Then I compared the differences for only the “Very Often” category.

This analysis is more striking because it shows that Hispanics who prefer English appear to be the most aggressive ethnic group replacing CDs. This seems like a historical innovation breakthrough. Non-Hispanic Whites are also more actively replacing CDs but their overall levels of purchase are lower. Hispanics who prefer Spanish are at parity in their “Very Often” purchase of MP3s and CDs, and given the trend they may soon follow the pattern of their English preferred counterparts.

 What these findings point to is a continuous trend on the part of emerging minorities to innovate to a larger extent than the established non-Hispanic White majority. This musical category, however is quite interesting since music is so central to the lives of minorities in reinforcing their ethnic ties.

These trends lead me to ponder why companies like Apple and Amazon do not pay more attention to the tastes and interests of these minorities since they are the ones innovating precisely at the core of their business. Why are they not advertising more with an emphasis on ethnic music and with messages directly related to the cultures of central to their selves? Perhaps, as usual, change comes very slowly, and I wonder, when will they realize who their core customers are?

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

The Multicultural Opportunity of Internet Radio

We have known for a long time that listening to radio is a favorite activity of Hispanics and African Americans. In particular, listening to the radio has a long tradition in Latin America where radio is the town crier and the central point of communities where people find lost items, find jobs, get announcements, news, etc. Clearly also, music is a great part of the tradition of listening to the radio. I have been curious as to whether or not Internet radio has continued that tradition or not.

In our Spring 2011 Multicultural Marketing study at Florida State University with the support of DMS Insights, we asked consumers of different cultural backgrounds to tell us “In an average week about how many hours do you spend listening to Internet radio like Pandora or Last.fm in English” and also “in another language.” At first we recoded the data so we could simply know who listens and who doesn't in either English or another language.

We found that those consumers who are online are listening to Internet radio to a surprising extent, and the groups most likely to listen are those that I suspected would. In English, African Americans and Hispanics who prefer to communicate in English are the most avid listeners. But when it comes to listening in another language the picture is interesting if not surprising.

Those who are more likely to use a language besides English seem to have some attachment to Internet radio in their native language. Hispanics who prefer Spanish are particularly keener on listening to Internet radio in Spanish. And remember, that besides Pandora, Last.fm, and others, there are radio outlets like Batanga.com that specialize in Spanish language and Latin music.
While we cannot directly add those who listen in Spanish with those who listen in another language because there is an overlap, it is interesting to notice that there is a noticeable predilection for Internet Radio among emerging minorities. I then added up the average number of hours per week of radio listened over the Internet for English and other languages. The results of actual time spent are remarkable.

Online Latinos who prefer Spanish spend almost six hours per week listening to Internet radio, compared with about four hours for Hispanics who prefer English and African Americans. Asians spend about two and a half hours, and non-Hispanic Whites spend the least amount of time in this endeavor.

To me the implications for marketers are clear.

Internet radio as an emerging medium and a promising advertising vehicle, is being favored by Hispanics and emerging minorities to a larger extent than by the shrinking non-Hispanic White population. Using this medium to promote both music and commercial messages seems like a no-brainer, particularly when attempting to get the favor of the consumer groups that are leading the new digital era.

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

CDTV.net Interview about "Hispanic Marketing: Connecting with the New Latino Consumer"

On August 26 CDTV.net Financial News interviewed me about our new book "Hispanic Marketing: Connecting with the New Latino Consumer." Click here to listen to the interview.

For a special offer from the publisher click here

Online Courses on Multicultural and Hispanic Marketing Communication

Starting the last week in August The Florida State University will offer for the first time, online, a course on Multicultural Marketing Communication. It is available to anyone interested in continuing education or just for the sake of learning. Students in academic programs can get academic credit and those not in academic programs get a certificate of completion. The course is asynchronous, so students can participate when they have the time. Click here for more details.

Also starting the last week in August is our well known online course on Hispanic Marketing Communication now using our new book "Hispanic Marketing: Connecting with the New Latino Consumer." This course is also available to anyone interested. Click here for further details.

We have also added to our online course rotation Account Planning in the Summer. For inquiries about any of our courses and to register please contact: Inquiries@campus.fsu.edu

Older Latinos: An Underestimated Marketing Opportunity

I have been thinking that for the last 20 years the marketing industry keeps talking about Hispanic youth as the promised land of opportunity. No question that Latinos are fundamentally characterized by their youth because their median age is 10 years younger than that of the overall US population. Still, there are older Latinos, and surprisingly they are a fast growing subpopulation of people 50 and over in the United States. That is not hard to understand since everyone ages and Hispanics are the fastest growing cultural group in the United States.

The cult of youth among marketers is understandable, but looking at some data from the Florida State University DMS Insights Multicultural Marketing Research Project of 2011 suggests that there is ample opportunity to capitalize on 50+ Latinos because their aspirations are high.

For example, among those who are online who do not currently have a blog, one can see that those who prefer to communicate in Spanish are more likely than anyone else to say they are planning to have a blog within the next year, and those 50+ are the most ambitious in this respect than anyone else in their age group.

% Plan to have a blog within the next year

Another example is the aspiration to have a smart phone. 50+ Latinos who prefer to communicate in Spanish are more likely than anyone else to say they are planning to have a smart phone within the next year.

% Plan to have a Smart-Phone within next year

Marketers should listen to these aspirations. While they may be overly optimistic, they are worthy of closer examination. These older Hispanics are likely to be very interested in furthering their communication with others and marketers should facilitate this aspiration. Now, the reason why Hispanics who prefer English are less aspirational according to these charts is because they already have these technologies (see prior blog postings). Now it is the turn of their Spanish speaking counterparts.

It seems to me that the idea of concentrating only on Latino youth may be obscuring the important opportunity of listening to the needs and aspirations of more mature Hispanics. They can be a gold mine for those who understand their views, opinions, and product interests.
The interesting thing about the explosion of Latino growth in the US is that youth always results in older age. This is something worth remembering.

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.