Ethnic Marketing Research, Part 2: The Culture-Driven Purchase Journey

The U.S. is in the midst of a seismic cultural and demographic shift that is redefining what it means to be a “minority” population in America. Consider: By 2044, no single racial or ethnic group will lead the country in terms of its overall size. Currently, four states (Hawaii, California, New Mexico and Texas) and the District of Columbia have reached majority-minority status. In 2014, there were more than 20 million children under the age of 5 living in the U.S., and just over half (50.2%) of them were minorities, according to the U.S. Census.While our society is still debating what to call this new post-Millennial generation (“Gen Z,” “Generation Edge” and “Digital Natives” are among the top contenders), one thing is certain: Its majority-minority of multicultural consumers will remain the top prize for marketers, with a combined spending power that has catapulted from $661 billion in 1990 to $3.4 trillion in 2014, per Nielsen research.Despite the overwhelming appeal of this audience, most multicultural marketing today continues to focus on the differences between ethnic consumers and the general population. The problem with that approach, however, is that it is based upon the increasingly outdated assumption that Hispanics and other ethnic groups view themselves as existing outside the margins of mainstream America. “The U.S. Hispanic consumer is not the same person as the one we targeted 10 years ago. She is no longer living in a bubble,” says Monica Nadela, creative director/strategic planner at Geometry Global.Given the dramatic changes in the cultural landscape, brands and their agencies should replace the traditional demographic approach to multicultural marketing with a more contemporary behavior-based model, says John Burn, head of the multicultural marketing practice at Geometry Global. “Instead of trying to reach African-American moms or Hispanic males age 18 to 29, marketers should be thinking about the shopping behaviors that unify or distinguish these consumers,” he says.Geometry’s new research aims to bridge this gap. In its recently unveiled ethnic marketing study, the firm has developed the first-ever culturally sensitive path-to-purchase model. (For background and methodology, see “Where Culture Meets Shoppers” from the August 2015 issue of Shopper Marketing.) The fundamental idea behind the study is that marketers should tap into the behavioral commonalities of the different ethnic groups, while viewing their purchase journeys through a more sophisticated cultural lens. “There are certain points along the purchase journey at which the cultural drivers of behavior are dialed up,” explains Burn. “As a marketer, you need to know where those cultural hotspots are located – and how to activate differently at those points – in order to capture your audience.”The Ambicultural ShopperGeometry conducted its multi-tiered research project in three distinct phases, employing a range of analytical methods. In phase one, it used a questionnaire based on the original Geert Hofstede model to produce scores for the six cultural “dimensions” among U.S.-based Hispanics, African Americans, Asian Americans and Caucasian groups. In its phase two fieldwork, Geometry used video diaries and other ethnographic tools to begin to construct a purchase journey for each group in the mobile phone and good-for-you snacks categories.Those purchase journeys were completed in the final phase, based on the results of Geometry’s proprietary mapping tool, known as a Pathfinder. The various steps along the pathways, including highlights of the major areas of convergence and divergence for each group, have been compiled into the diagrams shown here.Geometry uses video diaries and other ethnographic tools to construct “purchase journeys” that are then presented in highly detailed diagrams such as this one, which shows the steps taken and influences on mobile shoppers. In this case, the diagram highlights major areas of convergence and divergence for different ethnic groups. (View full size image.)Using Geometry’s proprietary mapping tool known as “Pathfinder,” a purchase journey can also drill into specifics, such as this analysis of Hispanic shopping activity within the good-for-you snacks category. (View full size image.)Geometry’s research into the multicultural consumer reflects the evolution of an ambicultural shopper, one who moves fluidly in and out of his or her cultural, ethnic and American identities. “Assimilation is an irrelevant concept for these consumers, because they don’t view their ethnic identities as a trade-off or an either-or proposition,” says Burn. They possess a chameleon-like ability to adopt multiple cultural perspectives, thanks to an evolving list of influences that includes not only their cultural heritage but also their family, friends, peers, favorite celebrities and mainstream media.“In previous decades, foreign-born immigrants often tried to adapt in public to American culture, while at home they still held strong to their cultural values, although not necessarily to their language,” says Nadela. “Now, children of immigrants are exposed to different cultures while growing up in multi-racial, multi-ethnic households. Just like chameleons, they have superimposed layers underneath their skin that allow them to transform their colors and reflection system in response to external stimuli.”Culture Meets Marketing: Mobile PhonesThe key to applying the Pathfinder results is understanding when and how the cultural drivers of behavior are contributing to prominent areas of divergence along the purchase journey. Many of the behaviors that were observed and measured in the study will be familiar to marketers. However, the research adds an extra layer of understanding by linking shopping behaviors to cultural values (i.e., the dimensions) that are deeply ingrained and fluid, and often difficult to articulate on a conscious level, says Bridget Gilbert, research director at Geometry Global. “It’s about applying our knowledge of the dimensions to the observed behavior so that we can deliver on unmet needs.”In the mobile phone category, for example, Hispanic shoppers stood out among other ethnic groups for visiting stores in groups with an average of two to three people (a familiar behavior to those who study this demographic). They were less likely to look for deals, and when they did, it was primarily through conversations with friends and family on social media. These behaviors reflect a high level of Uncertainty Avoidance (i.e., the degree to which people can cope with ambiguity or unclear situations) and a decision-making process that is more Collectivist (i.e., group oriented) in nature than the other groups.As compared with Hispanic shoppers, Asian Americans have a shorter average purchase timeline and consult different sources in their product research. The Asian shopper is more likely to browse online at retailer or manufacturer websites, looking for technical details and consumer reviews, as well as deals. His journey also takes him to stores more frequently to examine phones in person; however, his store visit may be for “showrooming” only, as he is more likely than most other ethnic groups to purchase his phone online.Many of these behaviors are inextricably linked to the Asian population’s Long-Term Orientation (i.e., importance placed on hard work and investment in the future). “It’s about a desire for confidence in making the right choice and a pragmatism about how long the equipment will last,” says Burn.As they develop solutions in the wireless category, marketers may leverage these insights in various ways. Brands could adjust their pre-shop activation, for example, by using online sales and promotional offers to target Asian shoppers while intercepting social conversations among Hispanic shoppers. Companies could also adapt their sales operations and improve the overall in-store experience to reflect the different role of the store for those two groups – behaviors that are also rooted in the cultural dimensions, says Burn.“Manufacturers can train their staff to recognize that the Asian wireless shopper is often in the store to comparison shop – it’s part of their ingrained [LTO] approach to purchasing products – whereas the Latino customer is probably ready to close the deal,” he says. “The interaction with Latino shoppers should focus on ways to reduce their Uncertainty Avoidance at the point of sale.”Culture Meets Marketing: SnacksAs with the mobile findings, the Pathfinder results in the good-for-you snacks category revealed a number of areas along the path to purchase in which cultural influences play an important role. For example, snacks purchases were less likely to be planned events for Hispanic and Asian-American shoppers than for either Caucasians or African Americans. Both Hispanics and Asians are more likely to engage in impulse buying for immediate consumption, although the underlying motivation for their purchases may be quite different.For the Hispanic shopper, Collectivism pervades her purchase journey. This dimension explains several familiar behaviors that were validated in the study, including why she enjoys the shopping process and tends to make it more of an event than others. She is more likely to visit multiple stores in one outing and often shops with multiple members of her family; her children are particularly influential in her purchases. When choosing snacks, she often considers its kid-friendliness, as well as snacks that represent her culture so she can expose her children to their heritage. She also actively looks for snacking and meal inspiration in the form of recipes, ideas and tips throughout her purchase journey.For the Asian shopper, choosing the right snack is more about making healthy selections that fit into a positive work/life balance, which is endemic to a long-term orientation. He looks for flavorful and unique or different snacks, often seeking new items in the store, will even visit multiple stores based on the availability of these unique snacks. Although he enjoys this variety, he can sometimes get overwhelmed by the wide selection of snacking options and is less likely than other groups to enjoy shopping. The latter is partly a function of his relatively low level of Indulgence versus Restraint (i.e., he tends to indulge less and restrain more with regard to spending or trying new things) compared to those groups.Brands and retailers may counteract these restraint tendencies by appealing to his receptivity to promotional offers, says Gilbert. “Throughout his journey, the Asian shopper may be looking for a good deal on snacks,” she says. “He is more likely than the other groups to be motivated topurchase by finding a compelling offer on snacks, and may look at circular ads pre-store and compare prices in the store to find the best deal.”By contrast, African Americans (who have much higher IVR scores) enjoy searching for new or different snack options and are less likely to get overwhelmed by all of the available options. The typical African-American shopper does little pre-store planning, perhaps checking his budget or considering which store is most convenient to him, and is more likely to be triggered to purchase after seeing something in the store. “His journey becomes more active once he enters the store; he actively compares products at the shelf and searches for new items and deals,” notes Gilbert. “He can be reached with in-store POS alerting him to new snacks or snacks on sale.”Putting It All TogetherWhen marketers begin to apply the cultural dimensions toward their own specific strategies and tactics, they will find that certain culture-driven behaviors transcend category, brand or shopping channel. “There are some dimensions, such as Collectivism in Hispanics, that relate to shopping behaviors that are shared across a variety of categories,” says Burn. However, he notes, the Pathfinder research is always customized for a specific category and represents unique purchase-decision journeys. “For this research to provide real quantifiable, measurable value, it should be conducted on a category-by-category basis.”Marketers may view the consolidation of all the different purchase journeys (see diagrams) as a blueprint for shopper activation, says Nadela. “It’s a compass that shows a brand where they can tailor their efforts to different ethnic groups.” In the mobile phone study, for example, all the groups listed “Phone not working” as their number one purchase trigger, but displayed different degrees of specific shopping behaviors along the path to purchase. Thus, a solution built around that core message might activate differently in the pre- and post-shop phases.“Depending on the business objective, you could create a program in which customers can change their phone every ‘x’ months when their phones start to have problems, or perhaps implement a service program that covers any type of repair or replacement,” explains Nadela. “Using Pathfinder allows the marketer to create a set of tactics, let’s say, that drive shoppers to carrier/brand websites. Knowing the Asian divergence toward visiting tech sites will inform that part of the program. So once you have your big idea, then the purchase-decision journey tells you where culture is dialed up and the brand will get the most benefit from that tactic.”The same kind of application at the brand awareness level could be used to create more culturally nuanced advertising. Rather than simply ask which media markets to enter or how to literally translate an ad into Spanish, marketers can adopt the language of dimensions in developing richer content that appeals to a more ethnically diverse audience.Take the recent TV commercial for Sprint’s new wireless plan starring David Beckham, which is airing in Hispanic markets using the identical storyline in Spanish. Knowing how Hispanic consumers shop collectively, Nadela says the entertaining spot could have added an extra layer of understanding of Hispanic viewers by using the supporting actors as shopping cohorts, versus simply fans of Beckham. “There could be more interaction with the sales employees that contain specific soccer references to leverage Hispanics’ intimate connection to the sport,” she says.The above example speaks to the core of Geometry’s thesis: If marketers begin the creative process armed with culturally specific insights, the results will resonate more deeply with general audiences and the desired ethnic groups. “We have to get to a point where brand/shopper planners know they’re going to reach both,” says Nadela. “Only when the central ideas of your creative briefs are rooted in, or inspired by, an ethnic insight will your tactics truly connect with the multicultural consumer.” NOTE: Part one, which appeared in the August 2015 issue of Shopper Marketing magazine, introduced this first-ever culturally sensitive path-to-purchase model. The research is based on the “cultural value dimensions” and other concepts pioneered and presented in the the book, “Cultures and Organizations: Software of the Mind,” by Geert Hofstede, Gertjan Hofstede and Michael Minkov.John Burn, head of cross-cultural shopper practice at Geometry Global, will discuss this cross-cultural value framework during a 2015 Shopper Marketing Conference & Expo seminar titled “Tired of Safe Multicultural Marketing?” at 8 a.m. on Thursday, Oct. 15. Attendees will learn how culture impacts attitudes and behaviors on the path to purchase, discover points of convergence and divergence in shopper culture among Caucasians, Hispanic, African Americans and Asians, and explore ways to better understand shopper behavior around the world. For more info, visit http://shoppermarketexpo.com/session/tired-safe-multicultural-marketing or contact john.burn@geometry.comAbout the SponsorGeometry Global is an award-winning, multi-practice marketing agency that influences people’s buying behavior with transformative creative solutions informed by rich data and sharp insights. Using cutting edge insight tools to map and analyze people’s “purchase-decision journeys,” the agency develops programs that drive conversion and measurably impact client business.Bravo is the largest and most successful full-service Hispanic marketing and multicultural agency. Bravo partners with clients, their sales organizations and retail partners to create smart, creative and effective shopper marketing programs that will help clients fully capitalize on the Hispanic market, today’s Latina shopper and constantly evolving trade/retail environments.

Ethnic Marketing Research, Part 2: The Culture-Driven Purchase Journey

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