Hispanic coupon usage: The impact of strong and weak ethnic identification

Abstract

The fragmentation of mass markets and its economic importance has dramatically increased the need to better target and understand ethnic markets. This article argues that the strength of ethnic identification, which measures the strength to which a person feels tied to the culture of origin, is a key variable in understanding the impact of ethnicity on responses to marketing mixes. The major hypothesis driving this study therefore states that, when the strength of ethnic identification is high, the ethnic consumer will respond to marketing the way their parents' culture does. This study analyzes Hispanic consumers and demonstrates that Weak Hispanic identifiers are quite different from Strong Hispanic identifiers in their coupon usage, and that Weak Hispanic identifiers are more like the dominant culture. Specifically, this study shows that cultural reasons may overshadow economic reasons in explaining coupon usage and brand loyalty.

The acculturation of middle income Hispanic households

“…Hence, it is likely that the social groups that consumers identify will influence their beliefs that in turn guide their behavior such as fashion they wear, restaurants they choose or the brands they buy. The effects of the strength of identification have been explored in consumer behavior studies involving shopping behavior, coupon use, and loyalty (Deshpande and Hoyer 1986;Cherian 1992 and1994;Webster 1997). …”

“…Brand loyalty is probably the consumer behavior that has been researched most among Hispanic consumers (Saegert et al 1985;Petroshius, Newell and Ross 1995;Deshpande, Hoyer, and Donthu 1986;Donthu, and Cherian 1994;Williams and Mulhern 1994); however, the findings of the different studies are contradictory. One set of researchers state that Hispanics are more brand loyal compared to Anglos, and that these differences are significant also when comparing Hispanic acculturation groups (Deshpande, Hoyer, and Donthu 1986;Donthu, and Cherian 1992;Donthu, and Cherian 1994), and other studies suggest that Hispanics are not significantly more loyal than the rest of the population and that they are more price sensitive compared to Anglos (Saegert et al 1985;Williams and Mulhern 1994;Brown 2004).…”

“…One set of researchers state that Hispanics are more brand loyal compared to Anglos, and that these differences are significant also when comparing Hispanic acculturation groups (Deshpande, Hoyer, and Donthu 1986;Donthu, and Cherian 1992;Donthu, and Cherian 1994), and other studies suggest that Hispanics are not significantly more loyal than the rest of the population and that they are more price sensitive compared to Anglos (Saegert et al 1985;Williams and Mulhern 1994;Brown 2004). In addition to brand loyalty, the literature has suggested that Hispanic consumers are more brand-conscious and seek prestigious and high quality brands (Deshpande, Hoyer, and Donthu 1986;Donthu and Cherian 1994).…”

“…As pointed out in the introduction, consumer behavior research has successfully associated ethnic identification and language preferences to certain consumer behaviors like brand loyalty, coupon use, advertising, and information search behavior (e.g., Deshpande et al1986;Nicholls and Roslow 1996;Petroshius, Newell, and Ross 1995;Webster 1992;Donthu and Cherian 1994). For example, Donthu and Cherian (1994) There is also evidence that language is an effective predictor of consumer behavior (Webster 1991(Webster , 1992(Webster , 1994(Webster and 1997Petroshius, Newell, and Ross 1995;Nicholls and Roslow 1996;Korgaonkar, Karson, and Lund 2000).…”

“…For example, Donthu and Cherian (1994) There is also evidence that language is an effective predictor of consumer behavior (Webster 1991(Webster , 1992(Webster , 1994(Webster and 1997Petroshius, Newell, and Ross 1995;Nicholls and Roslow 1996;Korgaonkar, Karson, and Lund 2000). Social scientists' concept of value is closely related to a principle, a standard, or a belief, that determines individuals' motivation, a course of action that ultimately influences their behavior.…”