multiculturalism: catching up with the future of marketing by felipe korzenny, ph.d., director,...

Multiculturalism:Catching up With the Future of Marketing

By Felipe Korzenny, Ph.D., Director, Center for Hispanic Marketing Communication,

Florida State University

(650) 274 3700 Felipe@Korzenny.com

© 2008 Felipe Korzenny

Agenda The meaning of multiculturalism Demographic similarities and differences The multicultural marketing equation

Media Exposure Technology Ownership Purchase Influencers Online Activities Attitudes

Select cultural tendencies Insights for positioning

Multicultural? Am I multicultural?

A passing trend?

An eventual melting pot?

Multicultural Perspectives

Multiple Identities Living Together… Or A New Identity Based on Diversity

Multicultural Perspectives Those resulting from “mixed” marriages? According to the Current Population Survey

2008, 5,188,000 people in the US come from two or more races… less than 2% of the population

Not very likely… just think about Hispanics… Mestizo is at the core of many heritages from Latin America… plus many probably do not declare multiple races

Is being multicultural equivalent to multiracial?

Multicultural Perspectives One essential element that minorities in the

United States share is their experience of “being different.”

Not being from there or from here… “ni soy de aquí, ni soy de allá”

The common experience of marginalization, and then emergence, shapes unique characteristics of the cultures that compose the multicultural marketplace

The non-Hispanic White segment, used to being the “mainstream” is becoming marginalized and that creates a defensive reaction

Demographic Differences and Similarities

Current Population Survey 2008

AgeAverage

% Ages 0 - 17

Disability/Health Problem Limiting Work

Educational AttainmentNo High-School

Diploma

Bachelor’s or Higher

Average Family Income in 2007

Buying Power

Source: Selig Center, University of Georgia, 2007

Household Income of 40K + in 2007

Family Size

4 Persons or More

Health Insurance Coverage in 2007

Employer Health Insurance 2007

Medicaid in 2007

Hispanic Race

Husband – Wife Families

Foreign Born

Not a Citizen (do not confuse with illegal)

23

Report Series:The Multicultural Marketing Equation

Download Reports from: http://hmc.comm.fsu.edu

2007 - 2008 Data

© 2008 Felipe Korzenny

Topics: Media Exposure Technology Ownership Purchase Influencers Online Activities Attitudes

Methods Online data collection In 2007, sample sources were expanded from 2006 to include a segment of

respondents that would answer the questionnaire in Spanish.

The sample of those other cultural groups answering in English, respondents were originally sampled via the Opinion Place online "river" methodology.  This method has also been referred to as "RDD for the web" as it uses broadcast promotional intercepts to generate a flow of respondents to the Opinion Place site.  Respondents are screened and assigned to surveys in real-time, and are not considered registered panelists since most do not return to the site for ongoing survey participation.

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Methods (continued)

For the sample of those answering in Spanish, respondents were invited from Tu Opinión Latina, a bilingual online Hispanic panel.

Fieldwork was executed from March 7 - 27, 2007. Respondents were required to be 18 years of age or older. The actual number of completes per quota group is as follows:

n=513 Non-Hispanic Whites n=493 Hispanic (English version) n=428 Hispanic (Spanish version) n=564 African Americans n=502 Asians

Each respondent received a small incentive for completing the survey.

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English Speaking Segment Spanish Speaking Segment

Average survey length 22 minutes 31 minutes

Response rate 28% 20%

Completion rate 79% 82%

Income

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HE HS NHW AA A

32.00% 12.30% 28.50% 18.60% 45.40%

Have a Household with Income of $80 K or Higher

Age (average)

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Considering that all were 18 and older

Media Exposure of those online

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Television

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Radio

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Newspapers

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Magazines

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Internet Including e-mail

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Cell-phone

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Cell-phone Hours by Age

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CD’s

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Mp3

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Electronic Games

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Cell-phone/Other Uses

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Satellite Radio

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Music on TV

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Technology owned by those online

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Have a Blog

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Have a Blog by Age

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Have a Website

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Social Networking Sites

I use social networking sites to express myself

Social Networking SitesI use social networking sites to stay connected to my culture

Have a Podcast

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Have Cell Phone with Camera

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Have Cell Phone with MP3 Player

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Have High-Speed Internet Access

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Have Wi-Fi/Wireless Internet Access

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Have a Digital Photo Camera

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Have a Digital Video Camera

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Have Satellite Radio

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Have Satellite TV

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Have an MP3 Player

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Purchase influencers of those online

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Influence of the Internet

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How important are each of the following in influencing the products you buy

All p< .001

Influence of the Internet

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How important are each of the following in influencing the products you buy

All p< .001

Influence of the Internet

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How important are each of the following in influencing the products you buy

All p< .001

Online activities

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Online Activities Daily

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At Least Twice a Week Online Activities

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Attitudes of those online

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Ads

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Brands

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Brands

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Taboos

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Cultural Homophily

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Tradition

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Money

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Success

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Education

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Sharing

I always try to buy things I can share with my spouse/partner

Assorted Specific Tendencies

African Americans

Wish: That companies and marketers build

relationships To be seen more than low-income individuals To purchase products that are in accordance

with their value system Spirituality Strong group cohesiveness

To see advertising that relates to their lifestyle.

African Americans:

Value respect

Tend to feel that brands ensure quality and predictability

Emphasis on community

Resent a low-income stereotype

“A shared complexion does not equal a shared culture”

Asian Americans Confucianism- System of Subordination of the son to the

father, younger to the elder, wife to the husband, and subject to the throne High emphasis is placed on elderly people Strict conservatism which makes the adoption of

innovations a slow process Less likely to use novelty products

Brand-Consciousness Prefer buying Asian goods and high quality products Preference for well-known companies and brands

Not as comfortable being identified as individuals Products should emphasize benefits to many family

members in different generations instead of one person

Tend to identify with country of origin Term “Asian American” may not be accepted

Asian Americans Brand-Consciousness

Prefer buying Asian goods and high quality products Preference for well-known companies and brands

Not as comfortable being identified as individuals Products should emphasize benefits to many family members

in different generations instead of one person Tend to identify with country of origin

Term “Asian American” may not be accepted Money management is important

Emphasize value of products Special promotions might encourage purchases

Highest use of credit cards and financial services than any other group Sophisticated consumers

Hispanics

Acculturation makes a difference Country of origin “orgullo” Objective culture and Subjective culture Culture Identification

Hispanics

Word of mouth Older family members rely on younger

members to inform Very brand loyal Low income, high purchase rate in specific

categories Present oriented… fatalism

Hispanics

Segmentation increasingly complicated by language proficiency and family composition

Media choices are more complex Bilingual marketing Speak to the culture Careful with translations

What should be done next

Do qualitative research to understand how to connect with different cultural groups regarding the meaning of: Divorce Accidents Home purchases Contracts Immigration Conflict Litigation vs. mediation, etc.

Multiculturalism:Catching up With the Future of Marketing

By Felipe Korzenny, Ph.D., Director, Center for Hispanic Marketing Communication,

Florida State University

(650) 274 3700 Felipe@Korzenny.com

© 2008 Felipe Korzenny