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The Influence of Ethnic Identity on Consumer Behaviour

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On the 11th of January 2011, leading research firms Cheskin Added Value and The Futures Company unveiled new findings on how the rise in ethnic diversity in the USA is leading to shifts in traditional views of racial and cultural identity roles.

Edelman, the world’s largest independent public relations firm hosted and moderated an event, panel discussion and Q&A where the new research was announced.

For more information, contact Stephen Palacios at Cheskin Added Value (spalacios@cheskin.com)

Published in: Self Improvement, Business
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The Influence of Ethnic Identity on Consumer Behaviour

  1. 1. WELCOMES YOU to A CONVERSATION on how the rise in ETHNIC IDENTITY is SHIFTING BEHAVIOR in the U.S. CONSUMER MARKET
  2. 2. CULTURAL OPENNESS: A Metric for Tracking Increasing Multiculturalism
  3. 3. AGENDA KEY TAKEAWAYS CULTURAL OPENNESS DEFINED STUDY RESULTS IMPLICATIONS EXISTING EXAMPLES
  4. 4. KEY TAKEAWAYS • The rise in ethnic identity in the Census shows the demographic reality, but there is an important attitudinal dimension that Marketers need to understand – Influential consumers are changing their traditional views of racial and ethnic identity roles, and are seeking greater engagement in ethnic identities other than their own • Understanding cultural openness within U.S. consumers provides marketers the possibility to be relevant deeply and broadly; – By tapping into a cultural identity truth, it will resonant deeply with consumers of that cultural identity and has the strong potential to appeal broadly with certain consumers outside of that cultural identity. – Finding a specific ethnic consumer “truth” that carries a universal truth is the marketing home run 5
  5. 5. NEW MAINSTREAM VALUE PROPOSITIONS ARE EVERYWHERE 6
  6. 6. KEY TAKEAWAYS • With few exceptions, marketing infrastructure is not currently set up to understand or execute against ethnic identity’s rise in U.S. consumer attitudes – McDonald’s has institutionalized it, General Mills, Pepsi, and Time Warner are moving in this direction – New metrics/measures are needed – Cultural depth, especially ethnic identity depth is increasing in its relevance in marketing • Multicultural marketing doesn’t go away – In some cases, multicultural marketing becomes a leader in a more holistic branding campaign – In most instances, multicultural marketing can be more complementary in overall marketing effort 7
  7. 7. A SOCIETY WITH MANY LARGE RACIAL/ETHNIC GROUPS IS NOT NECESSARILY A INTRACULTURAL SOCIETY Between 2000 and 2010, 80% of all population growth came from Hispanics, African Americans and Asians, which Hispanics representing 52% of that growth alone.* *Source: Geoscape 2010 8
  8. 8. LARGE POPULATION SIZE CREATES IMPACT, NOT NECESSARILY INFLUENCE A Jewish bread product with impact A Jewish bread product with influence 9
  9. 9. CULTURAL OPENNESS DEFINED Cultural Openness is the degree to which the historic boundaries between ethnic and racial groups are perceived as being highly porous and easily crossed. Such porousness allows people to navigate without self- consciousness and social constraint within and across different cultural groups, absorbing the elements that work within their preferred lifestyle but not necessarily at the cost of pride and participation in their native culture. 10
  10. 10. THE 5 MAIN STAGES OF CULTURAL OPENNESS 1 2 3 4 5 Intercultural Acknowledge and Personally recognize Actively pursue and Organically and influence is a understand the and appreciate the immerse oneself in non-self source of concern, benefits of benefits of inter-cultural consciously and people who are intercultural intercultural experiences and navigate within different are eyed influences within influences in their situations. and across with distrust. society. own lives. multiple cultural group boundaries. 11
  11. 11. MULTICULTURAL MARKETING STUDY METHODOLOGY Respondent Recruitment Process: • Phone-study participants were recruited using a random-digit-dial (RDD) sampling technique and were placed into their appropriate self-selected multicultural sample group, while web participants were recruited from select web panels. • To achieve the full sample of African-American respondents, we used a geographically enhanced RDD sampling technique that targeted high-density African-American census tracts. The remaining Hispanic respondents were recruited via a Hispanic surname sample list. Two-phase data collection process: • 20- to 30-minute telephone and Web interviews in respondent’s language of choice • 60- to 75-minute survey that was self-administered and returned via mail or the Internet, also in their language of choice The total numbers of participants ages 16+ who completed both phases of the study: • 1,620 African Americans • 1,645 Hispanics • 3,001 Non-Hispanic Whites • The study includes 937 cell-phone only respondents. 12
  12. 12. STAGE 1 Intercultural influence is a source of concern, and people who are different are eyed with distrust. “One of the best things about America is the cultural diversity you find here.” Total Disagree: 20% (Gen Pop - 2010) “I feel I must maintain some sort of allegiance to people with similar ethnic roots to my own because when things get bad, those are the only people you can count on.” Total Agree: 32% (Gen Pop - 2005) “I am uncomfortable with the changing ethnic makeup of this country.” Total Agree: 45% (Gen Pop - 2008) 13
  13. 13. STAGE 2 Acknowledge and understand the benefits of intercultural influences within society “I appreciate the growing influence of other cultures 83% 77% 64% on many of the products we use.” African Hispanics Non-Hispanic Americans Whites “I appreciate the influence that other cultures are 78% 77% 62% having on the American way of life.” African Hispanics Non-Hispanic Americans Whites “Cultural diversity is necessary for progress in our society.” Total Agree: 58% (US Gen Pop from Global Monitor - 2010) 14
  14. 14. STAGE 3 Personally recognize and appreciate the benefits of intercultural influences in their own lives “I have learned many new things from people whose 82% 77% 69% race or ethnicity differs from my own.” African Hispanics Non-Hispanic Americans Whites n/a 64% 80% “I know a Black person I consider a friend.” African Hispanics Non-Hispanic Americans Whites 58% n/a 66% “I know a Hispanic person I consider a friend.” African Hispanics Non-Hispanic Americans Whites 15
  15. 15. STAGE 4 Actively pursue and immerse oneself in inter-cultural experiences and situations “I am always looking for different cultural experiences 68% 61% 48% and influences that will broaden my horizons.” African Hispanics Non-Hispanic Americans Whites “My taste in food, music, media and entertainment 48% 42% 34% have changed as a result of having friends outside my African Hispanics Non-Hispanic race/ethnicity.” (among those with friends outside of Americans Whites their race/ethnicity) 47% 30% 32% “Someone in your extended family is from a different race or ethnicity.” African Hispanics Non-Hispanic Americans Whites 16
  16. 16. STAGE 5 Organically and non-self consciously navigate within and across multiple cultural group boundaries “Someone in your immediate family is from a different 29% 23% 14% race or ethnicity.” African Hispanics Non-Hispanic Americans Whites “Less than half of my closest friends are of the same 34% 36% 23% cultural or ethnic background as I am.” (MMS 2007) African Hispanics Non-Hispanic Americans Whites 27% 37% 23% “I see myself as a citizen of the world more so than as a citizen of the United States.” African Hispanics Non-Hispanic Americans Whites 17
  17. 17. YOUNGER, BUT NOT ONLY THE YOUNG Mean Age 45 46 44 41 40 Ethnicity Indices Non-Hispanic Whites High High Avg Low Low Hispanics Low Avg Avg High High African Americans Low Low Avg High High Education Indices High School or Less Avg Avg Avg Avg Low Some College Avg Avg Avg Avg Avg College Graduate or more Low Low Avg Avg High Mean Income 65K 64K 68K 69K 72K 18
  18. 18. THEIR HERITAGE OF ORIGIN REMAINS IMPORTANT AND VALUED “Feel highly connected to my heritage.” 41% 47% 49% 58% 51% (Top 3 box on an 11 point connected scale) “I would like to participate in more 60% 67% 72% 82% 79% activities that celebrate my cultural heritage.” “I feel a need to preserve my family’s 46% 58% 67% 78% 77% cultural traditions.” 19
  19. 19. MORE RESPONSIVE TO INCLUSIVE VERSUS TARGETED ADVERTISING Degree to which the following types of advertising persuade you to buy or try a new product: Ads that show people of my race or 20% 16% 20% 25% 21% ethnicity (Top 3 box on a 7 point persuades me scale among Non-Hispanic Whites) Degree to which the following types of advertising persuade you to buy or try a new product: Ads that show the many different cultures and kinds of people in the US (Top 3 box 13% 18% 26% 36% 34% on a 7 point persuades me scale among Non-Hispanic Whites) I find that I often have a hard time relating to a brand’s spokesperson if that person is not of my race or ethnicity.” (Forced choice versus the opposite sentiment among Non-Hispanic Whites) 28% 16% 5% 6% 3% 20
  20. 20. CONDUITS FOR NEW IDEAS AND CULTURAL INFLUENCES “I am usually one of the first people in my 35% 43% 53% 70% 72% group of friends to accept new ideas or try new things.” “I like taking the risk of being one of the first people to try a new product or 30% 38% 41% 55% 57% service.” “African Americans are a good group to look to when you want to know about...” (among Non-Hispanic Whites) How to rally people around a community issue 7% 14% 17% 22% 28% How to be spiritually fulfilled 6% 9% 13% 18% 21% New Music 5% 9% 12% 17% 15% 21
  21. 21. GENERAL MARKETING IMPLICATIONS • Consumers with high levels of cultural openness are less likely to be put off by marketing that is not specifically designed with their particular ethnic group’s sensibilities in mind or that references cultural touch points that are not a part of their culture or ethnicity of origin • At this point in time, consumers with high levels of cultural openness are the conduit through which cross cultural influence flows from one ethnic consumer segment to another • In order to assess accurately the pace and current status of the movement towards intraculturalism both in society at large and among their target consumers, marketers need to measure and track cultural openness or run the risk of prematurely abandoning (or holding on too long to) targeted ethnic outreach marketing strategies. 22
  22. 22. PHASE 2 RESEARCH GOALS (INITIAL RESULTS EXPECTED MAY 2011) • Consumers with high levels of cultural openness are less likely to be put off by marketing that is not specifically designed with their particular ethnic group’s sensibilities in mind or that references cultural touch points that are not a part of their culture or ethnicity of origin • Officially size, benchmark and begin tracking the Cultural Openness stage segments by ethnicity within the US 16+ consumer population • Produce richer stage profiles that include more depth of information around demo- and psycho-graphics as well as media habits, shopping behavior, and responsiveness to various marketing strategies • Develop a cultural openness short form that clients can incorporate into their own custom research • Build consulting platforms based on Cultural Openness that will help our clients enhance their: o Marketing/Advertising Strategy o Media Buying o Brand Positioning o Product Innovation 23 o Customer Service
  23. 23. EXAMPLE: Kia Soul Michelle Wie 24
  24. 24. EXAMPLE: DJ Hero Mix2Gether 25
  25. 25. EXAMPLE: AT&T MOBILE 26
  26. 26. PANEL DISCUSSION
  27. 27. DISTINGUISHED PANELISTS FRANK COOPER MICHELLE EBANKS ROBERTO SURO SVP and Chief Consumer President, Professor of Journalism and Engagement Officer, PepsiCo Essence Communications Public Policy, Managing director of Thank You. the Annenberg Innovation Lab, University of Southern California 28
  28. 28. THANK YOU for participating and CONTINUING the conversation…

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