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Hispanic Shoppers More Likely to Switch Brands

September 17, 2010
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Acceptance of private label brands by family members is an important contributing factor in why Hispanic shoppers are more likely than the general public to switch brands, according to a shopper experience study currently underway by The Integer Group and M/A/R/C Research.

Acceptance of private label brands by family members is an important contributing factor in why Hispanic shoppers are more likely than the general public to switch brands, according to a shopper experience study currently underway by The Integer Group and M/A/R/C Research. Moreover, significantly more Hispanic shoppers perceive less difference in private and national brand product quality than general market shoppers. Surprisingly, this tendency is even more pronounced at income levels of more than $75,000.
 

On the other hand, many Hispanic shoppers that haven't been as affected by the economy as others stick with familiar brands despite having to occasionally buy them less often. "Of those Hispanic shoppers who reported no change in their shopping behavior this year, 67 percent said they stick with their brand of choice, even if another brand is cheaper," said Randy Wahl, executive vice president, M/A/R/C Research.

The shopper experience study also reveals Hispanic shoppers shifting shopping behaviors by season, in comparison to general market shoppers.
 
During June, September and November, Hispanic shoppers' primary shopping goals show a significant change in rank with the priority being more on "concern for family satisfaction" and "one-stop shopping" and less on "saving money." These months also coincide with significant shopping events: summer, back-to-school, and holiday shopping. The data suggests that general shoppers may hunt for back-to-school, summer or holiday sales, but Hispanic shoppers seek approval from family members before purchasing the cheapest item.
 
With the exception of the three major stocking-up events mentioned, saving money and convenience are usually the top shopping goals for Hispanic shoppers. They are more value-driven and less likely to use in-store tools than the general market. When it comes to shopping aids, Hispanics appear less responsive to in-store messaging than others with neither at-shelf nor in-store TV messaging being cited as tools that help make a purchasing decision. 
 
"Although many retailers and brands develop communication aimed at both the general and Hispanic markets, our research indicates that it's not necessarily reaching the Hispanic shopper," says Martin Ferro, senior planner for Velocidad, an integrated Hispanic promotional, retail and shopper marketing capability of The Integer Group. "Brands must be deep-rooted in the more meaningful insights that distinguish Hispanic communication from general market communication, especially during key shopping events."
 

Data for the study comes from a national survey conducted by Integer and M/A/R/C. Consumers are asked about shopping attitudes, shopping behaviors, and economic outlook.

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