Multicultural marketing report

APPLIED RESEARCH PROJECT
ON
MULTICULTURAL MARKETING INDEX (MMI)
Submitted in partial fulfilment of the requirement of
Global Master of Business Administration (GMBA)
CONTEMPORARY MARKETING MANAGEMENT
SEMESTER 2
PERIOD OF STUDY – Jan 2014 to April 2014
Submitted By: Under the guidance of:
Prajakta Talathi (GSEP13CMM031) Name: Paul Howe
Manish Barapatre (GSEP13CMM028) Designation: Professor
Avinash Singh (GSEP13CMM023)

ARP – Multicultural Marketing Index 2014
S P Jain School of Global Management, Sydney Page 1
ACKNOWLEDGEMENT
We take this opportunity to express our gratitude and regards towards our
Academic mentor Professor Paul Howe for his continuous guidance,
encouragement and constant monitoring throughout the research. Blessings help
and guidance provided by him helped us to conduct the research smoothly.
We also take this opportunity to express our deep sense of gratitude toward our
corporate mentor Mansi Saxena, Strategy and Insight Manager, MultiConnexions
and Sheba, Owner MultiConnexions. Their valuable inputs & involvement at each
stage of the project proved as great help to us.
I am obliged to Mr Srinivas Phani for showing faith in us & providing opportunity to
work with MultiConnexions.
Last but not least, we thank almighty, our parents and friends for their support &
encouragement!
Sincerely:
Prajakta Talathi (GSEP13CMM031)
Manish Barapatre (GSEP13CMM028)
Avinash Singh (GSEP13CMM023)

DECLARATION
We hereby declare that the matter included in this ARP report entitled
“MULTICULTURAL MARKETING INDEX (MMI)”, is the result of study and interviews
carried out by us. We further declare that this is our original work and has not been
published anywhere before.
This Project Work has been carried out for the sole purpose of submission in partial
fulfilment of Semester Two of Global Master of Business Administration (GMBA) at S P
Jain School of Global Management, Sydney.
The above is true to the best of our knowledge and understanding.
We have read, understood and signed the code of Ethics.

COPYRIGHT ASSIGNMENT
FOR THE GOOD AND VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged, the Project team ARP-MAP, hereby irrevocably transfers and assigns
to S P Jain School of Global Management (“Assignee”), located at Dubai,
Singapore, Sydney, its successors and assigns, in perpetuity, all right (whether now
known or hereinafter invented), title, and interest, throughout the world, including
any copyrights and renewals or extensions thereto, in MULTICULTURAL MARKETING
INDEX (MMI).
IN WITNESS THEREOF, Assignor has duly executed this agreement.
Date:
Project Team:
Manish Barapatre (GSEP13CMM028) (Sign) ---------------------------
Avinash Singh (GSEP13CMM023) (Sign) ---------------------------
Prajakta Talathi (GSEP13CMM031) (Sign) ---------------------------
Project Mentor
Name: Professor Paul Howe
Signature:

Abstract
This report focuses on identifying the parameters influencing the buying decision of consumers. It
also helps in determining the effectiveness of ethnic ads against mainstream ads. Finally based on
the analysis of the above two findings, a Multicultural Marketing Index is created. Relevant analysis
of secondary research is done and an effective Primary research is conducted to achieve the
objectives of the report. Using the Multicultural Marketing Index, a proper progression of how to
influence, market and advertise effectively to the ethnic market will be discussed.
This report will aid marketers and advertisers on how to better understand and target the ethnic
audiences market. Lastly, it proves that “Every aspect of business makes an equal impact on the end
consumers. No component is big or small and you cannot ignore anything”

Table of Contents
Abstract...................................................................................................................................................4
Executive Summary...............................................................................................................................11
Introduction ..........................................................................................................................................12
Background ...........................................................................................................................................12
Problem, Objective, Hypothesis and Scope..........................................................................................12
Problem.............................................................................................................................................12
Objective...........................................................................................................................................12
Hypothesis.........................................................................................................................................13
Hypothesis 1:.................................................................................................................................13
Hypothesis 2:.................................................................................................................................13
Hypothesis 3:.................................................................................................................................13
Scope.................................................................................................................................................13
Proposed Approach ..............................................................................................................................14
Multicultural Marketing Index..............................................................................................................15
Research Methodology.........................................................................................................................16
Deductive or Top-Down Approach ...................................................................................................16
Secondary Research..........................................................................................................................18
Primary Research..............................................................................................................................19
Secondary Research..............................................................................................................................19
Purpose .............................................................................................................................................20
Multicultural Marketing....................................................................................................................20
Need for Multicultural Ads ...............................................................................................................21
History of Migration in Australia.......................................................................................................22
Nineteenth Century and Gold Rush..............................................................................................22
White Australian Policy.................................................................................................................22
Post-War European Migration......................................................................................................22
Relaxing White Australia Policy ....................................................................................................22
Migrants in Australia.....................................................................................................................22
Immigration Trends...........................................................................................................................25
Geographic Distribution................................................................................................................25
Language Spoken at Home ...........................................................................................................26

Demography......................................................................................................................................27
Literature Review..............................................................................................................................28
Multicultural Marketing in Australia: Synergy in Diversity...........................................................28
Diaspora Marketing.......................................................................................................................29
Hofstede Model ............................................................................................................................30
Primary Research..................................................................................................................................31
Unstructured Research .....................................................................................................................31
Face-to-Face Interviews................................................................................................................31
Focused Group Discussion ............................................................................................................33
Pilot Testing...................................................................................................................................34
Identification of Parameters.............................................................................................................34
Prestige / Status............................................................................................................................36
Price Sensitivity.............................................................................................................................37
Aesthetics......................................................................................................................................37
Social Collectivism / Individualism................................................................................................38
Influence of Mother Tongue.........................................................................................................38
Mainstream Media Penetration ...................................................................................................39
Masculinity/ Femininity ................................................................................................................39
Media Channel Reach ...................................................................................................................40
Surveys..............................................................................................................................................40
Online Survey................................................................................................................................40
Personal Survey for Ad Effectiveness............................................................................................41
Expert Interview................................................................................................................................41
Delphi Method..............................................................................................................................41
Data Interpretation and Analysis..........................................................................................................41
Analysis of Ad Effectiveness..............................................................................................................41
Hypothesis Testing........................................................................................................................41
Sampling Plan................................................................................................................................42
Quantitative Technique ................................................................................................................42
Hypothesis Testing for Indian Community....................................................................................43
Hypothesis Testing for Chinese Community.................................................................................46
Interpretations..................................................................................................................................49
Indian Community.........................................................................................................................49

Chinese Community......................................................................................................................50
Analysis to Create Multicultural Marketing Index............................................................................50
Sampling Plan................................................................................................................................50
Sample Statistics ...........................................................................................................................50
Structured Online Survey Design ..................................................................................................52
Test and Refine the Survey ...........................................................................................................52
Parameter Grading for Communities............................................................................................52
Industry Weightage using Delphi Method....................................................................................53
Application of Suitable Framework...............................................................................................54
Calculating Company Score...........................................................................................................54
Correlation Analysis ......................................................................................................................55
Conclusion.............................................................................................................................................58
Recommendations............................................................................................................................59
Industry Weightage.......................................................................................................................59
Focused Group Discussion ............................................................................................................59
Product or Company Rating..........................................................................................................59
Strategic Impact and Implications of Recommendations.................................................................59
Limitations ........................................................................................................................................59
Number of Response.....................................................................................................................59
Diversity in the Sample .................................................................................................................59
Time Constraint.............................................................................................................................59
Media Reach Grading....................................................................................................................60
Future Scope.....................................................................................................................................60
Include more Responses to Survey...............................................................................................60
Include More Ethnicity to Index....................................................................................................60
Application to Industry..................................................................................................................60
Post Advertisement Sales Effectiveness .......................................................................................60
Annexure...............................................................................................................................................61
APPENDIX A1: ARP Meeting Log Format...........................................................................................61
Internal Mentor.............................................................................................................................61
External Mentor............................................................................................................................63
APPENDIX A2 – ARP Mandatory Information Form..........................................................................64
APPENDIX A3 - ARP Mid-Review Form..............................................................................................66

APPENDIX A4 – S P JAIN NDA Format ...............................................................................................68
APPENDIX A5 – S P JAIN Code of Ethics ............................................................................................69
APPENDIX A6 - ARP MOM Format ....................................................................................................71
APPENDIX A7a - Student Introduction..............................................................................................73
APPENDIX A7b - Client Introduction.................................................................................................73
APPENDIX A8 - Resumé ....................................................................................................................74
APPENDIX A9 - Timelines ..................................................................................................................77
APPENDIX A10 - Questionnaire and Transcripts...............................................................................77
FGD Questionnaire and Structure of Interview ............................................................................77
Pilot Survey ...................................................................................................................................79
Online Survey Questionnaire........................................................................................................82
Ad Effectiveness Survey Questionnaire ........................................................................................83
APPENDIX A11 - Safe Assign Report..................................................................................................91
Bibliography ..........................................................................................................................................92

Table of Figures
Figure 1: Objectives on the Research Project.......................................................................................13
Figure 2: Proposed Approach ...............................................................................................................14
Figure 3: Deductive Research ...............................................................................................................17
Figure 4: Deductive Research for the project MMI ..............................................................................17
Figure 5: Secondary Research...............................................................................................................18
Figure 6: Primary Research...................................................................................................................19
Figure 7: Research Method...................................................................................................................19
Figure 8: Immigration Trend in Australia..............................................................................................25
Figure 9: China Born Geographic Distribution......................................................................................26
Figure 10: India Born Geographic Distribution .....................................................................................26
Figure 11: Three Components of Multicultural Marketing...................................................................29
Figure 12: Diaspora Marketing .............................................................................................................29
Figure 13: Global Advertising Research - Understanding Cultural Values of Consumers.....................30
Figure 14: Ads Comparison...................................................................................................................32
Figure 15: Attributes of Focussed Group Discussion............................................................................33
Figure 16: Parameters identified by unstructured research.................................................................35
Figure 17: Parameters identified ..........................................................................................................35
Figure 18: Parameters identified for research......................................................................................36
Figure 19: Status ...................................................................................................................................36
Figure 20: Price Sensitivity....................................................................................................................37
Figure 21: Aesthetics.............................................................................................................................37
Figure 22: Social Collectivism / Individualism.......................................................................................38
Figure 23: Why learn a language?.........................................................................................................39
Figure 24: Various media channels.......................................................................................................39
Figure 25: Masculinity/ Femininity .......................................................................................................39
Figure 26: Various media channels.......................................................................................................40
Figure 27: Analysis to Create Multicultural Marketing Index...............................................................50
Figure 28: Raod MAP to Sucess - Student Information.........................................................................73
Figure 29: Snapshot of Schedule...........................................................................................................77
Figure 30: Best preferred ad out of English mainstream, English Ethnic, Chinese Ethnic....................84
Figure 31: To Test English mainstream Vs English Ethnic ad effectiveness..........................................85
Figure 32: Test English Ethnic Vs Chinese Ethnic ad effectiveness.......................................................86
Figure 33: Best preferred ad out of English mainstream, English Ethnic, Hindi Ethnic ........................88
Figure 34: Test English mainstream Vs English Ethnic ad effectiveness...............................................89
Figure 35: Test English Ethnic Vs Hindi Ethnic ad effectiveness ...........................................................90
Figure 36: Screenshot of SafeAssign Report.........................................................................................91

Table of Graphs
Graph 1: FOREIGN BORN AS A PERCENTAGE OF THE POPULATION IN SELECTED OECD NATIONS -
2010(a)..................................................................................................................................................23
Graph 2: MIGRANTS IN AUSTRALIA BY COUNTRY OF BIRTH (a) - 2001 AND 2011...............................24
Graph 3: MEDIAN LENGTH OF RESIDENCE IN AUSTRALIA BY COUNTRY OF BIRTH – 2011 ..................24
Graph 4: The immigration trend of Chinese and Indian origin people in Australia..............................25
Graph 5: China Born Language Spoken at Home..................................................................................27
Graph 6: India Born Language Spoken at Home...................................................................................27
Graph 7: Demography of Indian Community Sample...........................................................................43
Graph 8: Responses for Hypothesis 1...................................................................................................44
Graph 9: Responses for Hypothesis 2...................................................................................................45
Graph 10: Responses for Hypothesis 3.................................................................................................46
Graph 11: Demography of Indian Community Sample.........................................................................46
Graph 15: Graphs showing sample Chinese respondents ....................................................................51
Graph 16 Graphs showing sample Indian respondents........................................................................52
Graph 17: Graph for Price Sensitivity Vs Years Lived in Australia.........................................................55
Graph 18: Price Sensitivity Vs Income Level .........................................................................................56
Graph 19: Income Level Vs Prestige......................................................................................................57
Graph 20: Income Level Distribution of Sample Collected of Indian Community................................57
Graph 21: Income Level Distribution of Sample Collected of Chinese Community .............................58
Table of Tables
Table 1: Growth of Australian Migrants ...............................................................................................23
Table 2: Demographic Fact Summary...................................................................................................27
Table 3: Calculations for Hypothesis 1..................................................................................................43
Table 9: Ratings for Ethnic Group and Australian Community.............................................................53
Table 10: Final Weighted for Ethnic Groups.........................................................................................53
Table 11: Industry Weightage...............................................................................................................54
Table 12: Final Reference Score............................................................................................................54
Table 13: Parameter Coding .................................................................................................................83

Executive Summary
This report consists of research conducted to achieve 3 objectives which are:
 To evaluate the impact of ethnic advertisement versus mainstream advertisement
 To identify the psychographic parameters that influence consumer’s buying decisions
 To create an Index/Framework which maps different communities based on psychographic
parameters
In the time of rapid globalization mobility of people across the globe has increased drastically.
People from one country are moving to different countries in search of better employment, quality
of life, etc. These small bunches of people are known as Diaspora. Australia, because of its quality of
life, income level, education standards, etc. is one of the preferred destinations for people from
different part to come and live here. Australian population include people from almost every parts of
world i.e. South Asian, Indian, Middle-Eastern European etc. In the due course of time these
Diaspora have come up as a big market segments for different companies. These people buy
products and services in Australia to fulfil their needs and wants. But the factors that play role in
buying decision for any person varies to a large extent form one community to other.
It becomes a big challenge for marketers to find out important buying influencer for these Diaspora,
so that they can target them with focused marketing and advertisement strategy. As of now
advertisements have been developed keeping in mind only local population and these
advertisements are known as mainstream advertisements. But now marketers are trying to target
the ethnic groups with advertisement that directly address them and such advertisements are
known as Ethnic advertisements.
This report tries to first evaluate the whether Ethnic advertisements are effective or not against
mainstream advertisement. Findings suggest that ethnic advertisements are far more effective
against mainstream advertisements and hence influence the buying decision of ethnic community.
This report summarizes different parameters or factors that play an important role in buying
decision of the ethnic community. Intensity of influence of these parameters varies from one
community to other. Hence these parameters were rated (quantitative) for different community. So
each parameter is rated against mainstream population i.e. Australian to develop MULTICULTURAL
MARKETING INDEX (MMI). MMI basically maps different community against mainstream
community based on ratings given to different parameters. Marketers can apply MMI to different
industry to find out parameters that need to be considered while formulating marketing strategy or
advertisement for a particular community.
As said by Albert Einstein, “The whole of science is nothing more than a refinement of everyday
thinking.” The same is true for Multicultural Marketing; it is nothing more than refinement of
everyday marketing. Hence to conclude it can rightly be said that, “Every aspect of business makes
an equal impact on the end consumers. No component is big or small and you cannot ignore
anything!”

Introduction
This report focuses on identifying the parameters influencing the buying decision of consumers. It
also helps in determining the effectiveness of ethnic ads against mainstream ads. Finally based on
the analysis of the above two findings, a Multicultural Marketing Index is created.
Relevant analysis of secondary research is done and an effective Primary research is conducted to
achieve the objectives of the report. Using the Multicultural Marketing Index, a proper progression
of how to influence, market and advertise effectively to the ethnic market will be discussed.
This report will aid marketers and advertisers on how to better understand and target the ethnic
audiences market.
Background
Ever since marketing era began after the production and selling periods, different strategies of
marketing were followed. The early days started with mass marketing followed by target and
segmentation marketing. Initially markets were segmented by Geography, Demography and
Psychography. But then, globalization, liberalization and free trade saw comfortable migration of
people. Ethnic minorities started growing: in numbers and stature and the demand for ethnic
products increased. This necessitated Marketers to have a fresh look at the way markets have to be
segmented.
Marketing is a business essential by which organizations and companies strive to generate activity
around their personal products and services in order for their specific audience to buy into them.
Creating strategies and discovering channels to reach consumers are the main objectives for
marketers (Boggs, 2011).
The biggest challenge before Marketers was whether they should start looking at multicultural
markets and multicultural products or should they stick to traditional segmentation and producing
mainstream products hoping that the ethnic minorities will start following mainstream practices?
Problem, Objective, Hypothesis and Scope
Problem
Organizations today fail to understand the importance of multicultural marketing in improving their
sales. With the consumer base of local population getting saturated, it is the need of the hour to
target the ethnic population residing in Australia.
Objective
The engagement of SP Jain School of Global Management is to help MultiConnexions:

Figure 1: Objectives on the Research Project
Hypothesis
Hypothesis 1:
H1: Ethnic community living in Australia do not necessarily connect equally with mainstream ads and
ethnic ads
H0: Ethnic community living in Australia connects equally with mainstream and ethnic ads
Hypothesis 2:
H1: Ethnic community living in Australia do not necessarily connect equally with mainstream and
English ethnic ads
H0: Ethnic community living in Australia connect equally with multicultural ads
Hypothesis 3:
H1: Ethnic community living in Australia do not connect equally with English Tran created Ads and
Regional Language Tran created Ads
H0: Ethnic community living in Australia connect equally with English Tran created Ads and Regional
Language Tran created Ads
Scope
Considering the timelines and feasibility of the research, following is the scope of the project:
 Community selected for analysis: Indian and Chinese
 Industry selected for Analysis: Telecom and Automobile
 Location: Various locations like Parramatta, Chinatown, etc. in Sydney
1
• To evaluate the impact of ethnic advertisement versus mainstream
advertisement on the consumers
2a
• To identify the psychographic parameters that influence people’s
buying decisions related to a product or service of any particular
industry
2b
• To create an Index/Framework which maps different communities
based on psychographic parameters

Proposed Approach
Identification of an index is a positivist/post-positivist paradigm. Hence, quantitative research which
involved collection of data and conversion of data into numerical form was performed. Some
statistical calculations were done and concrete conclusions were drawn. But the motive behind
identification of an index was to help organizations use this index to gauge multicultural adaption
capability and accordingly implement strategies which will help them connect to their customers.
Determining the “connecting with customers based on their emotions and culture” parameter can
be achieved using the social constructivist paradigm. Hence, qualitative research which comprised
recording and analysing the human behaviour, experience and emotions was performed. This helped
in gaining a richer understanding of specific target customers and not forming a generalized
perspective about the customers.
In order to achieve the desired results, it was necessary to consider both quantitative as well as
qualitative bases of the objective. Hence, in the project a hybrid and more pragmatic approach was
followed so that the quantitative and qualitative aspects complemented each other.
The below approach was followed:
Figure 2: Proposed Approach
State the
Expectations
Conduct
Unstructured
Interviews
Conduct
Discussions
Identify
Parameters
Develop
Structured
Questionnaire
Determine
Multicultural
Marketing
Index

1. State the Expectations from the Research
- Identify the problem
- State the objective of the research
- Identify the scope and limitations of the research
2. Conduct Unstructured Interviews
- Conduct several unstructured interviews with the chosen community to find out
relevant parameters
- Analyse the responses and identify qualitative parameters
3. Conduct Discussions
- Discuss with MultiConnexions and SP Jain Mentor regarding the outcomes of
unstructured interview
- Discuss in detail with few members of the chosen community to identify the
influencing factors & buying behaviour for the chosen industry
4. Identify Parameters
- On the basis of unstructured interviews and focused discussions, identify broad level
parameters influencing the chosen community
- Objective of unstructured interviews is to help identify parameters in an
advertisements which influences the buying decision of the customers
5. Develop Structured Questionnaire
- A structured questionnaire prepared for the survey is based on below
characteristics:
i. Various ads (mixture of mainstream ad and ethnic ad)
ii. Coded questions pertaining to mainstream ads and ethnic ads pertaining to
the chosen industry
iii. Questions will be focused around central objective, more close-ended and
will be clear, unambiguous, logical, unbiased, comprehensible and non-
repetitive
- Identify variables related to the chosen industry from the survey response for
further analysis and calculations
6. Determine the Multicultural Marketing Index
- Analyse the parameters/variables
- Allocate weightage to each parameter
- Perform calculations and draw down logical conclusions
- Determine the Multicultural Marketing Index
Multicultural Marketing Index
Quite often, lack of sophisticated market research aimed at assessing ethnic minority preferences is
lacking, and there is little awareness of whether or not ethnic consumers do require the same goods
and services as the native population. In the absence of good market intelligence, myths and

stereotypes that the native population have about ethnic cultures can act as a barrier (Burton,
2003).
Due to the multicultural consumer code and switches in culture, companies’ need to understand
that “You can‘t speak with consumers in just one voice, or expect to reach groups at various life
stages with the same messages” (Boggs, 2011). Also, generational differences impact how marketing
messages are received (Carter & Mashable, 2011).
To aid marketers in targeting the ethnic audience, Multicultural Marketing Index (MMI) can be used.
MMI is a generic framework for mapping different ethnic communities based on cultural and
psychographic traits that can be applied to different industry segments for:
 Assessing industry’s reach to their target community
 Calculating level of connection with their target community
 Analysing impact of advertisement on the buying decisions of the consumer
In short, MMI will help in forgoing Stereotyping of consumers and help in concentrating on Making a
Connection!
Research Methodology
Research Methodology is defined as “The strategy, plan of action, process or design lying behind the
choice and use of particular methods and linking the choice and use of methods to the desired
outcomes (Crotty, 1998).”
Deductive or Top-Down Approach
In Deductive Research, there is a beginning statement called Premise and the research is conducted
to check if the premise is true. Here generic information is narrowed down to specific ones. A
hypothesis is created and observations and data are collected. Some calculations are performed
which lead to the confirmation of premise.
Premise
Premise is a statement which is assumed to be true. If the premise is false then the whole research
will be based on false claims.
The premise used for this research was “Ethnic communities connect more with ethnic ads than with
mainstream ads”.
Theory
Theory is studied to research the subject, to understand the concept and meaning and to discover
keys terms required for research (University of Bradford).
Literatures were reviewed and discussions were made about the premise. Literatures or previous
studies referred were:
 Case Study – Diaspora Marketing by Harvard Business Review
 Journal Article – Multicultural Marketing in Australia by Synergy in Diversity

 Journal Article – The Hofstede Model
Figure 3: Deductive Research
Source: (Saleem, 2008)
Discussions with Subject Experts and general public i.e. potential consumers were made to develop
the hypothesis.
Figure 4: Deductive Research for the project MMI
Hypothesis
Hypothesis is an educated guess which finds out relation between the variables (Camarinha-Matos,
2012). Hypothesis is a rationale (Singh, 2006) based on which the research is conducted.
Hypothesis was formulated for the chosen Ethnic Communities which are Indian and Chinese.
Additionally the purpose and objective of the study was stated.

Observation
Observation is to study the different variables by using Qualitative and Quantitative Tools. Based on
the observations and findings, the hypothesis is tested.
Hybrid approach for observation was done. Data was collected using primary and secondary
research. Different methods used for the observation were:
 Qualitative
o Focus Group Discussions
o Face-to-face Interview
 Quantitative
o Online Survey
o Ad Effectiveness Survey
Confirmation
Data collected by observations and other means is analysed and hypothesis is tested for correctness.
Data was analysed to come up with some findings and draw conclusions.
Secondary Research
Secondary Research is to study existing data from previously conducted researches. The secondary
research done was:
Figure 5: Secondary Research
Secondary
Research
Literature
Study
Ads and
Multicultural
Ads
Demography
and Culture of
Australia
Immigration
Trends
Different
Ethnic
Communities
and Cultures

Primary Research
Primary Research is to conduct a first-hand research i.e. to collect and investigate data by self.
Primary research was done using:
Figure 6: Primary Research
To summarize, the various methods used for research are:
Figure 7: Research Method
Secondary Research
The secondary research is done to find already known information and facts. Various authentic
sources have been used such as information available on census, other government run organisation
Primary
Research
Pilot Survey
Focused Group
Discussions
Face-to-Face
or Personal
Interviews
Expert
Interview
Online Surveys
Research
Method
Secondary
Reserch
Journals Websites Statistics
Primary
Research
Survey
Focus
Group
Interviews Observation

and media sources. The secondary research in following sections includes already existing facts and
summary of earlier researches. The following was studied as a part of secondary research:
Purpose
One out of every four Australian is born overseas – Doesn’t that ring a bell? The secondary research
is not only to understand but to discover cultural diversity of Australia. There are many factors that
lay foundation of the multicultural society of Australia. But it wasn’t so since the beginning.
Therefore while studying cultural values of ethnic groups living in Australia it becomes not just
important but necessary to peak into the history as well. Some of the questions that come into mind
are why and since when the percentage of overseas population, and specifically some ethnic groups,
is so high. Apart from its main objective which is analysing the demography and studying the cultural
trend, secondary research also provides insights for extracting important factors that influence
ethnic group’s buying behaviour for rapidly growing communities in present times.
The secondary research is directed to find answers to following objectives:
 Demography based on ethnic groups
 Current migration trends
 Reason for migration
 Prevalent trends and values of selected ethnic groups (Indian and Chinese)
 Contemporary situation in Australia
Multicultural Marketing
Multicultural marketing is an approach recognizing that different ethnic and cultural segments have
sufficiently different needs and wants to require targeted marketing activities, and that a mass
market approach is not refined enough for the diversity of the marketplace (Kotler & Keller, 2012).
At its most basic essence, Multiculturalism is defined as the ―harmonious co-existence of differing
groups in a pluralist society (Cashmore, 1996).
The cliché phrase of “Seeing is Believing!” can be rephrased as “Feeling is Truly Understanding!” The
market has a rich heritage that must be understood prior to developing marketing strategies to meet
the needs of different groups of consumers (Burton, 2003).
When trying to connect with ethnic consumers through ads or other promotional campaigns,
marketers must take into consideration factors of their behaviour. Product characteristics,
advertisement characteristics, and consumer characteristics all interact with one another and play a
role in the marketer’s decision to create a culturally embedded advertisement (Boggs, 2011).
The characteristics are:
Product Characteristics
Refers to whether the product is intended exclusively for a minority audience i.e. the targeting
audience. The consumption context and the consumers’ attitude towards product also affect the
target market (Boggs, 2011).

Advertisement Characteristics
Include the setting and delivery method of an ad, both of which can affect how audiences will
perceive the ad and therefore the product (Boggs, 2011).
Consumer Characteristics
Consider the characteristics of both targeted audience as well as the mainstream audience. These
include knowledge of the targeted audience, strength of ethnic community and situational ethnicity
characterized by identification and distinctiveness; also influence consumers’ reactions to ads
(Boggs, 2011).
A thorough analysis and proper usage of these characteristics can aid an advertiser in determining
the appropriate level of market entrenchment.
Need for Multicultural Ads
Multiculturalism, it is vital and essential to understand and interpret a culture of a certain target
population or group in order to communicate effectively and connect with them (Boggs, 2011).
The world is shrinking. Development in transportation and communication technology has made our
world smaller. People are shifting their bases and moving to places other than their place of origin in
order to live a better life. Even though people moved places, they never moved out of their cultural
confines. Culture is a set of values and beliefs which affects to way people think, behave and
perceive.
People from same ethnic background share common values, customs, language and other
psychographic attributes; said that ethnic communities respond to certain stimulus associated to
their culture more than other stimuli. “One Shoe doesn’t fit all!” Same message may mean different
to different people from different ethnic backgrounds. An excellent message in one community may
be offensive for some other community. That’s where ethnic advertisement comes into picture – to
communicate and to influence ethnic audience and their buying behaviour. Multicultural marketing
is a conventional approach that pays attentions to cultural values and nuances.
As per a claim by SBS radio in 2007, ethnic communities in Australia altogether had a spending
power of $ 58 billion, which is hard to ignore, lies untapped by mainstream marketers across
Australia's significant multicultural population. And with the migration trends in Australia this
spending power is growing. Ethnic media has been on marketers agenda since long time but never
took a centre stage alongside mainstream media. Multicultural became a catchphrase in 1090s. Only
a few sectors such as banks, telecommunications companies and the government have
conventionally used its potential to reach out to ethnic population (B&T - Australia's leading title for
the advertising, marketing, media and PR industries, 2007). The leading examples have been set by
the Australian broadcasting commission, NSW State Department of fair trading, SBS Radio and TV
Channel, National Australian Bank, Advance Bank, Westpac bank, Optus. But the trend is changing.
With the growing number of migrants in last decade, majority are in professional occupation and
have good spending power, FMCG and automobile industry are also tempted to address ethnic
segments of market.

By using ethnically targeted advertisements, companies can communicate to members of the
targeted community that the advertised product is intended exclusively for them (Boggs, 2011).
Ethnic minorities also have high brand loyalty and are likely to buy and recommend products based
on corporate sponsorship of their own groups (Wyatt, Gelb, & Geiger-Onet, 2008).
History of Migration in Australia
Nineteenth Century and Gold Rush
In 1788 Australia’s aboriginal population was 400,000 when the European settlements began. Early
migrants were British and Irish. Migration led to growth in population making the diversity in
Australia rich and interesting. Moreover discovery of gold rush in 1851 attracted people from across
the world. Majority were from Britain and Ireland followed by rest of the Europe, largely from
Germany and then followed by China and the United States (James Jupp, Kate Walsh).
White Australian Policy
At the beginning of the twentieth century, immigration was controlled by Commonwealth. It passed
the Immigration Restriction Act, other referred as White Australian Policy. Despite of comparatively
large Chinese population in Australia, this act banned Asian immigrants to enter Australia for next
fifty years. Another act, Island Labourer Act deported the outsiders who already were in Australia.
People from Europe were still acceptable but at the start of both the world wars the acceptable
Europeans – Germans, Italians and Hungarians were banned and classified as “enemy aliens” (James
Jupp, Kate Walsh).
Post-War European Migration
Post World War 2, Australian government realised lack of people in Australia could become a threat
and it decided to increase the population in Australia. This scheme attracted a large number of
people from Europe, majority of them were from Italy, Germany and Greece. Hence there exists a
third generation of these ethnic groups in Australia (James Jupp, Kate Walsh).
Relaxing White Australia Policy
In 1950s, Australian government started relaxing the immigration policy and by 1956 non-European
people were allowed for permanent residency. In 1973, new Labour government abolished all relic
of ethnic discrimination and declared Australia as ‘multicultural’ society where all ethnic groups
were equally welcomed. This resulted in growing influx of people from China, South Africa and India
(James Jupp, Kate Walsh).
The Department of Immigration and Border Protection mentions “The Department of Immigration
and Border Protection have facilitated the permanent migration of more than seven million people
since its establishment in 1945. The contribution of migrants to Australian society, culture and
prosperity has been an important factor in shaping our nation (Australian Department of
Immigration and Border Protection, 2013).”
Migrants in Australia
According to 2011 Census, there were 5.3 million migrants in Australia. This means 26% of Australian
residents were born outside Australia. As compared to other western nations migrant population is
relatively large in Australia. Looking at the proportion of the population of other countries, Australia

has a larger migrant population than New Zealand (23%), Canada (21%), the United States of
America (13%) and the United Kingdom (13%). Out of the OECD (Organisation for Economic Co-
operation and Development) nations, only Luxemburg (42%), Israel (31%) and Switzerland (28%)
have larger proportionate migrant populations (Australian Bureau of Statistics, 2014).
Graph 1: FOREIGN BORN AS A PERCENTAGE OF THE POPULATION IN SELECTED OECD NATIONS - 2010(a)
Source: (OECD Factbook 2013, 2013)and (Australian Bureau of Statistics, 2014)
Origin of Australian Migrants
As mentioned earlier, migrants from United Kingdom are the highest contributor to Australia’s
migrant population. According to Census 2011, there were 1.1 million UK-born migrants followed by
0.48 million migrants from New Zealand, China as third and India as fourth largest migrant
population in Australia. The interesting fact is that population from UK has remained as is since 2001
with a very little change in numbers whereas India-Born and China-born migrants have rapidly grown
since 2001 to 2011, 200% (India-born) and 123% (China-born) respectively (Australian Bureau of
Statistics, 2014).
2011 2001 % Change
China 318969 142780 123%
India 295362 95452 209%
Table 1: Growth of Australian Migrants
Source: (Indian migrants top permanent settlers, 2013)
According to The Australian (newspaper), Indians migrants are now top permanent settlers leaving
behind Chinese on second spot; therefore these two ethnic groups become very important part of
Australia’s culturally diverse demography (Indian migrants top permanent settlers, 2013).

Graph 2: MIGRANTS IN AUSTRALIA BY COUNTRY OF BIRTH (a) - 2001 AND 2011
Top 15 countries of birth of overseas-born Australian residents (Australian Bureau of Statistics, 2014)
Duration of Stay in Australia based on Place of Origin of Migrants
Median length of residence of migrants in Australia predominantly differs based on country of birth.
It is as high as 53 years for people born in Netherlands and 37 years for people born in UK. For China
and India born residents the median age is comparatively very low i.e. 8 years and 5 years
respectively (Australian Bureau of Statistics, 2014). This shows that migration from China and India is
a recent phenomenon. These communities are growing at a significant rate therefore it becomes
very important for businesses in Australia not to ignore them.
Graph 3: MEDIAN LENGTH OF RESIDENCE IN AUSTRALIA BY COUNTRY OF BIRTH – 2011
Source: (Australian Bureau of Statistics, 2014)
2011
Population in ’000s
100
200
300
400
500
600
700
800
900
1000
5 10 15 20 25 30 35 40 45 50 55
Median Length of residence in years

Immigration Trends
This research addresses two communities – Chinese and Indian. Recent development in migration
trends show that Indians were the top migrant population in Australia in year 2011-2012.
Figure 8: Immigration Trend in Australia
Source: (The Australian News, 2012)
Following chart shows the immigration trend of Chinese and Indian origin people in Australia:
Graph 4: The immigration trend of Chinese and Indian origin people in Australia
Geographic Distribution
Geographical distribution of Chinese and Indian ethnic communities residing in Australia is as
follows:
0
50,000
1,00,000
1,50,000
2,00,000
2,50,000
3,00,000
3,50,000
Before…
1941-1950
1951-1960
1961-1970
1971-1980
1981-1990
1991-2000
2001-2005
2006
2007
2008
2009
2010
Indian
Chinese

China Born
Figure 9: China Born Geographic Distribution
Sources: (Australian Government - Department of Social Services, 2011)
Indian Born
Figure 10: India Born Geographic Distribution
Sources: (Australian Government - Department of Social Services, 2011)
Language Spoken at Home
Marketing is about creating, communicating, delivering and exchanging the offerings value to
customers (Kotler & Keller, 2012). When it comes to communicating with ethnic communities,
language spoken at home plays an important role. In order to understand the cultural value, nuances
and influencers of ethnic group/customer segment it is very important to know how they
communicate amongst themselves as this helps them in comprehending the message better.
Following chart shows main languages spoken at home by China-born and India-born people in
Australia:

China Born
Graph 5: China Born Language Spoken at Home
Source: (Australian Government - Department of Social Services, 2011)
India Born
Graph 6: India Born Language Spoken at Home
Source: (Australian Government - Department of Social Services, 2011)
Demography
The below table contains the demographic summary of Chinese and Indian community present in
Australia:
Chinese Indian Overall
Population 403,193 208,488 23,412,282
% of total population 1.72% 0.9% 100%
Median Age 35 31 37
Median Individual Weekly Income $328 $663 $577
Language Spoken at home other
than English Language
96.7% 88.7% --
Proficient in Speaking English 67.1% 93.3% --
Table 2: Demographic Fact Summary

It can be seen from the statistics that median individual weekly income of an Indian is almost double
that of a Chinese Individual. The reason can be either the genuine difference in income levels or
Indians opting more for tax saving options than the Chinese. Moreover, it can also be noted that
these communities have their median income at par with the rest of the population residing in
Australia. This shows the Marginal Propensity to Consume (MPC) is high amongst the ethnic groups.
It can also be observed that Chinese are more comfortable in communicating using their regional
language. Hence it is an opportunity for marketers to use this for their advantage and create
multicultural rather ethnic (trans-creational) ads to cater to these markets.
Literature Review
Multicultural Marketing in Australia: Synergy in Diversity
Source: Journal of International Marketing, Multicultural Marketing in Australia – Synergy in
Diversity, 1999 (Wilkinson & Cheng, 1999)
The article written by Ian F. Wilkinson and Constant Cheng provides a framework for analysing
multicultural marketing in Australia based on three factors namely:
 Multicultural Market in Australia
 International Market
 Multicultural Resources Available in Australia
This article refers to many award winning cases to illustrate different ways by which opportunities
can arise because of multicultural mix of population and how these can be addressed.
Article evaluates the migration trends of different communities present in Australia. A mass of
European migrants primarily from United Kingdom came in until 1970. Today white Australian
population is dominated largely by people migrated from United Kingdom; it consists of 25% of
people migrated from UK. There was an influx of Chinese in Australia till 1850 during the Gold Rush
Period but later this was curbed by the White Australian Policy. Australian Government realized the
potential threat due to low population and hence started gradually revoking the While Australian
Policy during 1950-1970s. It is only in last few decades that there have been an increasing number of
migrants from Asia who have added more diversity to the Australian population (Wilkinson & Cheng,
1999).
With increasing internationalization of world economy and use of internet, commerce is reaching
beyond national borders. That said competition is not just arising within national markets but also
from abroad. But this also gives an opportunity for businesses to build and master the art of
multicultural marketing to spread wings in high growth economies of world such as Asia-Pacific
(Wilkinson & Cheng, 1999).
Article evaluates the migration trends of different communities in to Australia. A wave of European
migrants primarily from United Kingdom came in until 1970. Today 25% of the white population in
Australia comprises of British migrants. There was an influx of Chinese people in Australia till 1850
during the Gold Rush Period which was later curbed by the White Australian policy. After gradually
revoking the While Australian policy during 1950-1970s it is only in last few decades or so there has

been increasing number of migrants from Asia has added more diversity multicultural makeup of
Australian population (Wilkinson & Cheng, 1999).
The framework suggests that multicultural markets of Australia (and other similar International
Markets) can utilise its Internal Multicultural Resources to launch and expand their businesses in the
International Markets. This means that Australia’s diversity provides a test market to gauge the
market potential and to grow their businesses accordingly.
Figure 11: Three Components of Multicultural Marketing
Although this framework is more theoretical, it provides a direction and states the importance of
ethnic marketing in a multicultural environment. The framework does not provide any applicable
model or applicable parameters for ethnic marketing communication.
Diaspora Marketing
Source: Harvard Business Review – The Globe, Diaspora Marketing, (Kumar & Jan-Benedict, 2013)
Figure 12: Diaspora Marketing
Source: (Kumar & Jan-Benedict, 2013)
Multicultural
Market Segment
International
Markets
Multicultural
Resources

Diaspora is a group of people residing in a country different from the country of their origin. The
country of origin is known as “Home Country” and the country where they are currently living is
known as “Host Country”. In the last few years, marketing to Diaspora has become increasingly
attractive owing to the inflation of Diaspora population. Since the year 2000 there has been a steep
growth of 42% in the number of first generation immigrants i.e. the number of first generation
immigrants across the world has grown from 150 million to 214 million (Diaspora Marketing, 2013).
Based on their affiliation with the host country products & desire to maintain home country identity
and characteristics, Diaspora is classified into four groups:
1. Assimilators:
People who prefer host country products
2. Marginals:
Do not worry about home or host country products. They are rational people who buy products
based on their performance & features
3. Biculturals:
They are group of people who buy home country product & diffuse the same to the host country
4. Ethnic Affirmers:
Strong followers of home country product
For the purpose of Diaspora marketing, the last two groups, Bicultural & Ethnic Affirmers, are most
preferred target.
Hofstede Model
Source: The Hofstede Model – Applications to Global Branding and Advertising Strategy and
Research –Geert Hofstede and Marieke de Mooij
Figure 13: Global Advertising Research - Understanding Cultural Values of Consumers
Source: (Hofstede & De'Mooij, 2010)

The study of culture for understanding global advertising results from the global-local dilemma:
whether to standardise advertising for efficiency reasons or to adapt to local habits and consumer
motives to be effective (Hofstede & De'Mooij, 2010).
Geert Hofstede's dimensional model of national culture has been applied to various areas of global
branding and advertising, and the underlying theories of consumer behaviour (Hofstede & De'Mooij,
2010).
The concepts of self, personality and identity in turn explain variations in branding strategy and
communications. Another area is information processing, including differences in perception and
categorisation that influence interpersonal and mass communication, and the working of advertising
(Hofstede & De'Mooij, 2010).
Cultural values are seen as an integrated part of the consumer's self, not as an environmental factor.
For developing effective advertising the consumer must be central. Cultural values define the self
and personality of consumers. Next we distinguish mental processes and social processes. Mental
processes are mostly internal processes, how people think, learn, perceive, categorise and process
information. Social processes are about how we relate to other people, including motivation and
emotions. Both processes affect interpersonal and mass communication (Hofstede & De'Mooij,
2010).
Cultural models help to analyse culture's consequences for the self and personality, mental and
social processes, and how these influence global advertising strategy (Hofstede & De'Mooij, 2010).
Primary Research
Unstructured Research
Face-to-Face Interviews
Interview is the primary data collection technique for gathering data is qualitative methodologies
(Schindler & Cooper, 2011). Interviews are basically used for Exploratory Data Research. A trained
moderator is required. Interview can be unstructured or semi-structured or structured.
Unstructured Interview
Unstructured Interview is basically an in-depth or a non-directive interview used to explore general
areas of research interest. Participants are allowed to talk freely about their beliefs, behaviours and
events in relation to area of the research. This type of interview is used mainly in for research used
to find deeper insights about the research topic.
In this research unstructured interviews were conducted to find out different parameters that
influences the buying decision of people. 15 people each from Indian and Chinese community were
interviewed at different location in Sydney.
Structured Interview
Structured Interview is where the participants are asked a series of questions which have some
limited responses. Respondents have to select from the given options. Structured interviews are
used for both qualitative and quantitative research.

In this research structured interviews were used to compare the effectiveness of mainstream
advertisements against Ethnic advertisements. Total 30 people from each Indian and Chinese
community were surveyed where they were asked to answer four question based on the different
mainstream and ethnic advertisements shown to them.
Figure 14: Ads Comparison
Interviews are useful in situations:
 Where Explanatory and Exploratory element in the research is to be identified
 To know the meanings which respondents ascribe to various phenomena
 To get accurate result via personal contacts
 Where control needs to be put on nature of those who supply input
 Where large number of question needs to be answered
 Where questions are open-ended and complex
 When changes need to be incorporated
The techniques used were (Schindler & Cooper, 2011):
 Word or Picture Association
 Thematic Test
 Imaginative Exercises
The unstructured interview conducted for this research had the following agenda:
 Introduce the Broad Issue
 Ask Demographic Information
 Ask Lifestyle related Questions
 Ask Product/Brand Usage/Purchase Questions
 Ask Attitudinal and Knowledge Questions
Mainstream
Advertisements
Ethnic
Advertisements
Questions to
compare
Mainstream and
Ethnic advertisement

 Articulate creative / ads related Questions
 Narrow down to the topic
 Conclude by identifying unstructured parameters
Question for the structured interview were developed after analysing the results of unstructured
interview. Please refer the Appendix for the questionnaire.
Focused Group Discussion
The Focus Group is a panel of people (usually made up of 6 to 10 participants), led by a trained
moderator, who meet for one or two hours. The facilitator or moderator uses group dynamics
principles to focus or guide the group in exchange of ideas, feelings and experiences on a specific
topic (Schindler & Cooper, 2011).
Figure 15: Attributes of Focussed Group Discussion
Source: (Chow, 2013)
The group composition is determined on the basis of the following parameters (Schiffman, O'Cass,
Paladino, D'Alessandro, & Bednall, 2010):
 Scope of the issue
 Distinct market segment
 Number of new ideas or insights
 Level of detail of information
 Level of geographic or ethnic distinctions
 Homogeneity of the group
FGDs are used (Schindler & Cooper, 2011):
 To obtain general background about the topic
 To prepare research questions
 To interpret previously obtained quantitative results
 To stimulate new ideas for the product
 To highlight areas of opportunities
 To diagnose problems
 To generate impressions and perceptions of brands and products
 To generate a level of understanding about influences
Group discussions best enable the exploration of surprise information and new ideas. The
theme and the agenda of the meeting is communicated to participant at the beginning of
the discussion by facilitator The group then works through the agenda while the facilitator
gains greater depth of understanding.

FGD needs to be audio or video recorded. Video recording is more difficult but it is more
useful. Prior permission from participants is required before recording any of the
discussions.
The main agenda for FGD within a group of Indian and Chinese community was:
 Find out the factors that influence the buying behaviour of the people in Indian and Chinese
community
 Look for the effectiveness of Mainstream Advertisement Vs Ethnic Advertisement
Group dynamics are commonly observed during the FGD with Indian and Chinese communities
because these communities are more influenced by the society and hence tend to state their
opinion based on the opinion of the group.
Please refer the Appendix for the structure of the FGD.
Pilot Testing
Pilot Test is conducted to detect weakness in design and instrumentation and to provide proxy data
for selection of a probability sample (Schindler & Cooper, 2011). Pilot testing is intended to reveal
errors in the design and improper control of extraneous or environmental conditions.
The respondents were mainly college professors, peers, students and randomly chosen local and
ethnic communities. The pilot testing helped in identifying:
 Participant Interest
 Meaning
 Question Transformation
 Continuity and Flow
 Question Sequence
 Instructions Required
 Variability
 Length and Timing
Based on this pilot test, surveys were designed for actual research purpose. Please refer the
Appendix for the Pilot Test questionnaire.
Identification of Parameters
Unstructured research which comprised of Interviews (Face-to-Face or Personal Interviews with the
consumer and Experts), Focussed Group Discussions and Pilot Survey led to identification of
parameters that influence the buying behaviour of a consumer. The parameters look into the
psychological, economical, anthropological and sociological aspects of consumer behaviour. It also
determines if advertisements are able to influence the buying decision on a consumer; if yes then do
ethnic ads influence the decision more or less or same is determined.
Unstructured research led to identification of following parameters:

Figure 16: Parameters identified by unstructured research
With the help of further studies and analysis of parameters, eight parameters were identified for the
research.
Figure 17: Parameters identified
Identification of Parameters
Literature
Study
Response
Analysis
Interviews

Eight parameters identified are:
Figure 18: Parameters identified for research
Prestige / Status
Prestige is defined as “The relative esteem accorded to an individual within a specific group or social
system (Schiffman, O'Cass, Paladino, D'Alessandro, & Bednall, 2010).” Status is frequently
conceptualised as “The relative rankings of members of each social class in terms of specific social
factors such as relative wealth (amount of economic assets), power (the degree of personal choice
or influence over others) and prestige (the degree of recognition received from others) (Schiffman,
O'Cass, Paladino, D'Alessandro, & Bednall, 2010).”
Figure 19: Status
Source: (The Status of Engagement, 2013)
For Marketing Research and Consumer Behaviour the demographic or socio-economic variables
considered are family income, occupational status, education etc. These expressions of status are
Prestige/ Status Price Sensitivity
Aesthetics
Social - Collectivism/
Individualism
Influence of
Mother Tongue
Mainstream
Media Penetration
Masculinity/ Femininity Channel Reach

used by marketers to measure the social class of the market and to target various market segments
(Schiffman, O'Cass, Paladino, D'Alessandro, & Bednall, 2010).
Price Sensitivity
Buying decision of consumers is mainly on the basis of price. Consumers rely on price as an indicator
for product quality. The Price/Quality relationship helps in determining the perceived value which is
often seen a trade-off between perceived benefits and perceived sacrifice (monetary and non-
monetary) (Schiffman, O'Cass, Paladino, D'Alessandro, & Bednall, 2010).
Figure 20: Price Sensitivity
Source: (Price Shoppers, 2014)
Marketer trades-off maximum current profit for high market share and for the hope of even greater
profits in the next stage because the opportunities for product differentiation and image
differentiation are low, service quality is comparable, and price sensitivity runs high (Kotler & Keller,
2012).
Aesthetics
Aesthetics is a branch of philosophy which deals with the nature of art, taste and beauty and also
with the appreciation and creation of beauty. Scientifically, it can be defined as the study of sensory
or sensory-emotional values, i.e. judgements of sentiments and tastes (Asemah, Edegoh, & Ogwo,
2013).
Figure 21: Aesthetics
Source: (Avida Aesthetic, 2013)

In advertising concept, aesthetics can be used to refer to a particular style or design. Some of the
aesthetic elements in ads are:
 Sound
 Music / Cohort
 Dance / Theme
 Characters
 Colour Scheme
 Appearance
 Order of Information
 Message Flow
Social Collectivism / Individualism
Reference Groups like family, friends, peers etc. have a heavy influence on the buying behaviour of a
consumer. Reference Group is defined as “All the groups that have a direct or indirect influence on a
person’s attitudes or behaviour (Kotler & Keller, 2012).”
A reference group can induce changes in the consumers’ attitudes and behaviour. When consumers
are primarily concerned with the acceptance or approval of others they like, or with whom they
identify themselves. Or who offer them status and other societal benefits, they are likely to adopt
their products, brands or other behavioural characteristics (Schiffman, O'Cass, Paladino,
D'Alessandro, & Bednall, 2010).
Figure 22: Social Collectivism / Individualism
Source: (e Converse, 2010)
Social person is likely to be persuaded by people with high credibility. On the other hand and
Individual person, may not believe in relations and hence believe in self attitude and behaviour.
Influence of Mother Tongue
A common observation is that people are more comfortable communicating in their native language.
Natives are able to comprehend messages in their native-regional language.

Figure 23: Why learn a language?
Source: (Best Language Website Index, 2014)
People tend to be influenced by ads in their native language and hence buy these products.
Marketers can make the best out of this.
Mainstream Media Penetration
Mainstream Media Penetration is used to check the influence of mainstream media on ethnic
communities. Communities prefer watching regional channels over mainstream channels.
Figure 24: Various media channels
Source: (EU Media Futures Forum, 2014)
Marketers can display ethnic trans-created ads on regional media channel to tap the ethnic
communities.
Masculinity/ Femininity
Masculinity is defined in terms of achievement and success; whereas femininity is caring for others
and quality of life. In masculine societies, performance and achievement are important; and
achievement must be demonstrated, so status brands or products such as jewellery are important to
show one's success (De Mooij & Hofstede, 2002).
Figure 25: Masculinity/ Femininity
Source: (Casper, 2014)

Marketers can determine the culture and use it for ads and promotions.
Media Channel Reach
Media channel reach indicates the extent of reach of community or regional channel/media. Some
communities find print media more comfortable, some find online more comfortable and some fine
regional TV channels more comfortable.
Figure 26: Various media channels
Source: (Avenue Right, 2014)
Marketers must identify the media reach and accordingly prepare their marketing mix.
Surveys
Survey is a measurement process using a highly structured interview; employs a measurement tool
called questionnaire, measurement instrument, or interview schedule (Schindler & Cooper, 2011).
Surveys are most widely used method for market research. Also, the survey questions should be
unambiguous and close-ended. The questions asked should be specific and pertaining to the topic.
Surveys are useful:
 To measure quantitative factors
 To measure specific data
 To study large sample size
To design the questionnaire for the survey the analysis outcomes form the FGD and interviews were
used.
Based on the research requirement, two kinds of surveys were conducted.
 Online Survey – for creation of MMI
 Personal Survey / Interview – for Ad effectiveness
Online Survey
Online survey was conducted to quantify the role of different psychographic factors in the buying
behavior of Indian and Chinese community. A survey questionnaire of 15 questions was designed
and responses were collected from over 150 respondents belonging to both Indian as well as
Chinese community. These surveys were create on Survey monkey and circulated to different target
audience through direct mails and mass communication.
Please refer the Appendix 10 for the Online Survey questionnaire.

Personal Survey for Ad Effectiveness
Personal or Face-to-face survey was conducted to compare the effectiveness of ethnic ads against
mainstream ads. The following factors were considered:
 Regional and mainstream themes
 Use of product
 Message depicted in the product
 Culture showcased
 Language
 Overall Connect
 Aesthetics
 Buying influencer /interest inducer
Expert Interview
In order to give weightage to the identified parameters based on the industry, expert opinion was
taken. For this the Delphi Method was adopted.
Delphi Method
The Delphi Method is a widely used and accepted method for gathering data from subject matter
experts. The technique is designed as a group communication process which aims to achieve a
convergence of opinion on a specific real-world issue and wider acceptance. This can be achieved by
taking a structured survey conducted on respondents within their domain of expertise.
Delphi Method is iterative in nature i.e. the responses can be taken in iteration so that respondents
get a chance to correct their previous responses. One of the main characteristic of this method is
“anonymity” which helps in eliminating biased opinion inclined towards influential expert (Hsu &
Sandford, 2007).
In this research the expert opinion was considered for two industries:
 Automobile
 Telecommunications
Data Interpretation and Analysis
Analysis of Ad Effectiveness
Analysis of the objective “To evaluate the impact of ethnic advertisement versus mainstream
advertisement” was done using the method of hypothesis testing.
Hypothesis Testing
To analyse the responses of the ad effectiveness survey, hypothesis testing was performed to test
the effectiveness of Mainstream ads against Ethnic ads.
Three hypotheses were designed each for Indian and Chinese community. Please refer the Appendix
for Ad Effectiveness Test Survey.

Hypothesis 1:
H1: Ethnic community living in Australia do not necessarily connect equally with mainstream ads and
ethnic ads
H0: Ethnic community living in Australia connects equally with mainstream and ethnic ads
Hypothesis 2:
H1: Ethnic community living in Australia do not necessarily connect equally with mainstream and
English ethnic ads
H0: Ethnic community living in Australia connect equally with multicultural ads
Hypothesis 3:
H1: Ethnic community living in Australia do not connect equally with English Tran created Ads and
Regional Language Tran created Ads
H0: Ethnic community living in Australia connect equally with English Tran created Ads and Regional
Language Tran created Ads
Sampling Plan
Sampling plan used in the research was:
Sample size of 30 for each community
 Indian – 30
 Chinese – 30
 Australia – 30
Location selected for personal survey and interviews
 Harris Park for Indian Community
 Chinatown for Chinese Community
 Burwood and UWS campus
Quantitative Technique
Chi Square Test was used for hypothesis testing. Chi Square Test is used to identify (Maben, 2011):
 If there is significant difference between observed and expected frequencies in different
categories
 Find out the magnitude of difference between observed and Expected difference
 Reason for the difference in the frequency i.e. sampling error or real difference
Test Requirements
 Quantitative data
 Independent observations
 One of more categories
 Sample size of at least 10
 Random sample without bias
 Data in form of frequency

Formula Used
Where
O: Observed frequency of each category
E: Expected Frequency of corresponding category
Df: degree of freedom i.e. (n-1) where n is the sample size
X: Chi
Hypothesis Testing for Indian Community
Demography of Sample
Graph 7: Demography of Indian Community Sample
Result for Hypothesis 1
Test was conducted to determine the most preferred ad out of English Mainstream ad, English
Trans-created ad and Hindi Translated ad.
The improvised hypothesis for Indian Community is:
Calculations
Table 3: Calculations for Hypothesis 1
•Mainstream ads, English Trans-created ads and Hindi translated ads
have same impact on Indian community in AustraliaH0
•Mainstream ads, English Trans-created ads and Hindi translated ads
do not have same impact on Indian community in AustraliaH1

Interpretation
Chi Calculated=(F0-Fe)^2/Fe = 2.6
Chi Critical= CHINV(probability, df) = 5.99
Chi-Calculated < Chi-Critical
Hence, H1 is not rejected
Chart
Graph 8: Responses for Hypothesis 1
Test was conducted to compare the effectiveness of message and aesthetics of English Mainstream
Ads and English Trans-created Ads
Calculations
0
2
4
6
8
10
12
14
English Mainstream English Transcreated Hindi Transcreated
Responses for Hypothesis 1
•English Mainstream and English Trans-created Ads have same
impact on Indian community in AustraliaH0
•English Mainstream and English Trans-created Ads do not have
same impact on Indian community in AustraliaH1

Interpretation
Chi Calculated > Chi Critical
Hence, H0 is rejected
Chart
Test was conducted to test the preference of language using English Trans-created Ads and Hindi
Trans-created Ads.
Calculations
8
22
0
5
10
15
20
25
English Mainstream English Transcreated
•English Trans-created Ads and Hindi Trans-created Ads have same
•English Trans-created Ads and Hindi Trans-created Ads do not have

Interpretations
Chi-Calculated > Chi-Critical
Hypothesis Testing for Chinese Community
Demography of Sample
Graph 11: Demography of Indian Community Sample
Test was conducted to determine the most preferred ad out of English Mainstream ad, English
Trans-created ad and Chinese Translated ad.
The improvised hypothesis for Chinese Community is:
14
13
2
0
2
4
6
8
10
12
14
16
English Transcreated Hindi Transcreated Both
Chart Title

Calculations
Interpretation
Chi-Calculated < Chi-Critical
Chart
Test was conducted to compare the effectiveness of message and aesthetics of English Mainstream
Ads and English Trans-created Ads
The improvised hypothesis for Chinese Community is:
•Mainstream ads, English Trans-created ads and Chinese translated
ads have same impact on Chinese community in AustraliaH0
•Mainstream ads, English Trans-created ads and Chinese translated
ads do not have same impact on Chinese community in AustraliaH1
3
7
20
0
5
10
15
20
25
Main stream English
Transcreated
Chinese
transcreated

Calculations
Interpretation
Chi Calculated > Chi Critical
Chart
Test was conducted to test the preference of language using English Trans-created Ads and Hindi
Trans-created Ads.
•English Mainstream and English Trans-created Ads have same
impact on Chinese community in AustraliaH0
•English Mainstream and English Trans-created Ads do not have
same impact on Chinese community in AustraliaH1
7
23
0
5
10
15
20
25
Main stream English Transcreated

Calculations
Interpretations
Chi-Calculated > Chi-Critical
Interpretations
Indian Community
 Indian community connects more with Ethnic Trans-created Ads over Mainstream ads
 Indian community prefers English Trans-created ads over mainstream ads
 Indian community connects almost equally with English Trans-created and Hindi Trans-created
ads
•English Trans-created Ads and Hindi Trans-created Ads have same
•English Trans-created Ads and Hindi Trans-created Ads do not have
5
22
3
0
5
10
15
20
25
English
Transcreated
Chinese
transcreated
Both

Chinese Community
 Chinese community connects more with Ethnic Trans-created Ads over Mainstream ads
 Chinese community prefers English Trans-created ads over mainstream ads
 Chinese community prefers Chinese Trans-created ads over English Trans-created ads
Analysis to Create Multicultural Marketing Index
Figure 27: Analysis to Create Multicultural Marketing Index
Sampling Plan
Sample size of 30 respondents from each of the following ethnic communities was surveyed.
 Australians, New Zealander & English/Scottish/Irish
 Indian Community
 Chinese Community
Sample Statistics
Chinese Respondents
Rating of Parameters
Data
Analysis
F2F
Survey
Online
Survey

Graph 15: Graphs showing sample Chinese respondents
Indian Respondents

Graph 16 Graphs showing sample Indian respondents
Structured Online Survey Design
For each of the parameter that was identified from qualitative survey a questionnaire was designed.
Each question had a parameter coded against it. Certain parameters were tested with a single
question whereas few parameters had more than one question mapped to it. In such cases each of
these questions were also given weightage based on its relative impact on the parameter. The
weightage was later used to calculate weighted averages.
Please refer the Appendix for the questionnaire.
Test and Refine the Survey
Once the online survey was designed it was tested for any anomalies and ambiguities by performing
a pilot survey with a test group. Respondents from the test group were asked for feedback. This
helped in eliminating any unintended flaws and ambiguities while creating the survey questionnaire.
Parameter Grading for Communities
Parameter grading is calculated from the weighted averages of the rating given by each respondent
in the sample. Following table lists the calculated weighted averages for Indian, Chinese and
Australians (basically it includes all English speaking respondents).

The ratings as per the responses received are:
# Parameter Grading
For Chinese
Grading
For Indian
Grading For
Australians
1 Prestige 4.50 4.36 6.50
2 Price Sensitivity 5.09 4.61 4.40
3 Aesthetics 4.50 4.68 5.18
4 Social Collectivism 4.40 4.33 4.8
5 Prevalence of mother tongue 3.88 3.48 --
6 Masculinity 3.55 3.89 5.16
7 Mainstream media penetration 2.78 3.21 --
8 Ethnic Channel Reach* 2.66 3.51 --
Table 9: Ratings for Ethnic Group and Australian Community
*This can be explained due to the high occurrence of print medium as a preferred choice amongst the Chinese
community – Since the questionnaire focused on TV channels, that might be the reason why this a lower grade
The questions asked in the survey were coded to each of the parameter. Each question was given
certain weightage. The final weighted grading is calculated by taking weighted averages.
Following table shows the calculations to reach on final weighted grading:
Coded
Parameters
Question
Weightage
Response
Averages
Weighted
Grading
Chinese Indian Chinese Indian
Masculinity 100% 3.55 3.89 3.55 3.89
Prestige 100% 4.50 4.36 4.50 4.36
Price Sensitivity Q1 50% 5.06 4.33 5.09 4.61
Price Sensitivity Q2 50% 5.13 4.88
Collectivism Q1 70% 4.31 4.03 4.40 4.33
Collectivism Q2 30% 4.59 5.03
Language Barrier 100% 3.88 3.48 3.88 3.48
Ethnic Channel reach 100% 2.78 3.21 2.78 3.21
Mainstream Channels 100% 2.66 3.51 2.66 3.51
Aesthetics 50% 4.06 4.55 4.50 4.68
Aesthetics 50% 4.94 4.82
Table 10: Final Weighted for Ethnic Groups
Industry Weightage using Delphi Method
In the scope of this research two industries are considered. The industry weightage for each
parameter is achieved using a Delphi method i.e. a structured survey responded by experts. The
industry weightage for each parameter is distributed from a total of 100 such a share of pie is being
distributed among each parameter. The sum of industry weightage of each parameter should add to
100 in total.
The table below shows the industry weightage for two industries.

# Parameter Industry
Telecom Services Automobile
1 Prestige 5 25
2 Price Sensitivity 40 20
3 Aesthetics 15 15
4 Social Collectivism 20 15
5 Prevalence of mother tongue 5 5
6 Masculinity 5 10
7 Mainstream media penetration 5 5
8 Ethnic Channel Reach 5 5
Table 11: Industry Weightage
Application of Suitable Framework
Reference MMI Score
The table below provides calculation of Final Reference Score for automobile industry as an example
for explaining the practical application. The formula for calculating the Final Reference Score is:
MMI (Final Reference Score) = ∑ (Industry Weightage x Ethnic Grading)
The table below shows the calculation of Multicultural Marketing index (MMI) that is the Final
Reference Score for automobile industry which should be used for comparing to the company that is
under evaluation.
#
Parameter
Industry
Weightage
(IW)
Ethnicity
Grading (EG)
Chinese
Automobile
MMI = IW * EG
1 Prestige 25 4.50 112.5
2 Price Sensitivity 20 5.09 101.8
3 Aesthetics 15 4.50 67.5
4 Social Collectivism 15 4.40 66
5 Prevalence of mother tongue 5 3.88 19.4
6 Masculinity 10 3.55 35.5
7 Mainstream media penetration 5 2.78 13.9
8 Ethnic Channel Reach 5 2.66 13.3
MMI (total) 429.9
Table 12: Final Reference Score
Calculating Company Score
When a marketer wants to calculate a company’s MMI score, following method should be followed:
 Calculate industry weightage for each parameter. The company score on each parameter
cannot exceed the industry weightage derived by the Delphi method
 Multiply company score of industry weightage of each parameter to its corresponding ethnic
grading
 Calculate the sum of product calculated above. This gives MMI score of company for a
specific community

MMI tells the marketer how well the company is addressing the ethnic community in consideration
and on which elements they need to put more emphasis.
Correlation Analysis
Data can tell you more than it is intended for if carefully thought and analysed. The data gathered
from quantitative survey was analysed to find correlation between certain parameters rating with
the demographic attributes. Following correlation analysis were done which could be interpreted
sensibly.
 Price Sensitivity Vs Years Lived in Australia
 Price Sensitivity Vs Income Level
 Income Level Vs Prestige
Price Sensitivity Vs Years Lived in Australia
Graph 17: Graph for Price Sensitivity Vs Years Lived in Australia
Year Bracket Legend in correlation chart:
 1 – 1 to 5 years
 2 – 5-15 years
 3 – more than 15 years
In both the correlations data for respondents who have spent less than a year in Australia has not
been considered for that reason correlation chart shows only three data points. This was due to
reasons:
 There were no respondent in Chinese dataset with less than one year bracket
 People who have spent less than one year in Australia may not have long-term plan to live
here and have different motives for spending

Multicultural marketing report

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