Language is only one factor

Editor’s note: Martha C. Rivera is senior research associate - Hispanic research at Doyle Research Associates, Chicago.

Believe it or not, not everybody knows that a large portion of the Hispanic consumers living in the U.S. only speak Spanish. I recently received a request for a research proposal to evaluate some TV commercials. Upon asking the caller (a fellow research professional) what language the ads were made in, she sounded somewhat surprised and responded that she assumed they were in English. She was further surprised when I explained that the language used in the ads would be the key to determining the language to use in the research. She excitedly responded, “It never occurred to me that it was so important. Let me check with my client!”

Unfortunately this is not an isolated or uncommon incident, but rather a reflection of the confusion generated by the huge increase in interest in the Hispanic consumer market since 2001, when some startling figures, such as the fact that there were 36 million Hispanics living in the U.S., started being revealed. There are now an estimated 41 million Hispanics, and they will account for $1 trillion in buying power by the year 2010! As a result, virtually every major U.S. company is advertising products to Hispanics, is developing new products for them, or is looking for niche markets within the Hispanic community.

Hence, it has become imperative for U.S. marketers to learn more about and increase the volume of research among Hispanic consumers. It has also become increasingly complicated, because Hispanic consumer research needs to be designed and conducted using significantly different criteria than those used for American general-market research. American consumer companies and research suppliers need to educate and immerse themselves in the Hispanic culture and learn how to navigate through the confusing mix of misinformation and myths surrounding the Hispanic consumer. In this article I discuss some of the most relevant factors involved in planning Hispanic qualitative research studies.

Segmentation

Just as in research conducted within the general market, Hispanic respondents need to be recruited and segmented according to key demographic and product usage criteria, e.g., gender, age, household income, etc. However, additional critical criteria must be factored into the study’s design.

Household composition and gender roles: While the percentage of Hispanic households in the U.S. consisting of husband, wife and children under age 18 is greater than the national average1 - 39.4 percent versus 23.4 percent - some patterns related to who does what within the Hispanic home, and who is the main user or purchase decision maker, can be totally unexpected. For instance, we have found that first-generation Hispanic wives are the primary decision makers and shoppers for food and groceries, while their husbands will compare prices in the store and often will have the final say on purchase decisions related to some household products such as cleaners. Hence, the decision of interviewing the husband, the wife, or both, may follow rules that are quite different from those used among U.S. general-market consumers.

Age: The difference in average age between first- and second-generation Hispanic consumers is significant2. While the largest percentage of first-generation Hispanics falls within the 25-to-55-year age range, the largest percentage of second-generation Hispanics is from 0 to 35 years. However, while the first generation represents a larger percentage of the U.S. Hispanic market than does the second generation (40 percent versus 28 percent, respectively3), its buying power is significantly lower ($350 median weekly wage for first-generation vs. $450 for second-generation4 ). Another key variable in looking at Hispanics’ ages and their relation to buying power is their school dropout rate. While these rates are higher for Hispanics than for any other U.S. consumer group, research has suggested that this is because Hispanic teenagers start holding full-time jobs earlier than most other U.S. teens, thus acquiring buying power at a younger age. These statistics underscore the fact that U.S. companies must view the age of Hispanic consumers much differently than the general market when conducting research and in identifying viable targets for their brands.

Household income: This is another key variable that requires special consideration when researching Hispanic consumers. Due to the fact that Hispanic teens and young adults tend to live at home longer and often start earning regular incomes earlier, and because, unlike other ethnic groups, several generations of Hispanic families tend to live under the same roof sharing collective expenses, annual household income has to be viewed differently from that of most other American households, i.e., greater percentage of collective versus individual income. For instance, an annual household income of $40,000 earned by only one person living in a general-market home suggests a living standard and a level of buying power that differs greatly from the living standard and buying power of a Hispanic family with the same annual income but with three or more people contributing to it.

Product or brand consumption: Properly defining product consumption criteria and identifying a brand’s main competitors may be a difficult task, because of the differences in consumption patterns between Hispanics and general-market consumers. As an example, I’ve found that most general-market customers regularly want to specifically eat chicken when they visit chicken restaurants. Hispanic customers are more often motivated by searching for nutritional substitutes of the homemade family meal, and consequently consider pizza and Chinese food as valid options. Hence, chicken restaurants are natural competitors for general-market customers, while pizza and Chinese restaurants should be considered as valid competitors within the Hispanic marketplace.

Acculturation level: Acculturation is one of the more difficult aspects to grasp while segmenting Hispanic consumers. It determines at what point any consumer of Hispanic origin can be validly considered as the correct target for either Hispanic or non-Hispanic marketing initiatives. Today, this problem is called “first- versus second-generation” and can be concisely expressed by the question: At what point can I expect a particular Hispanic group to follow the consumption patterns (preferences, habits, etc.) of the general market versus the Hispanic market?

Acculturated consumers are those who predominantly reflect general-market consumption patterns, the unacculturated reflect mostly Hispanic patterns, while bicultural consumers reflect both. It is acknowledged that acculturated and unacculturated are the ends of a continuum, while infinite types of bicultural consumers can be found in between. Over the years, segmentation of participants in a research study according to their level of acculturation has followed one of two dominant trends:

  1. Until some years ago, the marketing initiatives focusing on Hispanics were almost exclusively restricted to the production of ad campaigns in Spanish. Thus, the preferred spoken language and the amount of time in contact with Spanish media became the critical variables for discriminating between unacculturated (Spanish-speaking) and acculturated (English-speaking) consumers.
  2. More recently, it has been recognized that these criteria oversimplify the issue of acculturation and are not a sufficient determinant to discriminate between acculturated and unacculturated Hispanic respondents. Hence the questions of where the Hispanic person was born, and, if foreign-born, how long he/she has lived in the U.S., have lately been included as a third valid criteria. More specifically, first-, second-, and third-generation Hispanics are defined as follows:
  • A first-generation Hispanic (unacculturated) consumer is the first member of any family to come to the U.S. He/she exhibits preferences and habits that reflect the “pure” culture of his/her original country, therefore communicating predominantly in Spanish, and being the primary consumer of products “calling” to his/her Hispanic culture. Some types of research studies that should include first-generation Hispanics are:

— evaluation of Spanish-language advertising;

— evaluation of ethnic food products;

— immersion into Hispanic consumption for virtually any type of product;

— identification of niche markets for products originally targeted to general-market consumers;

— non-profit research studies;

— when answering the key question: Do I really need to develop a specific Hispanic strategy for my product?

  • Second-generation Hispanic (bicultural) consumers are the children of first-generation immigrants. They were born in the U.S. and were raised within both cultures. Some researchers include in this group foreign-born individuals who have lived in the U.S. for more than 20 years. Yet no significant studies have been conducted that explore cultural differences among Hispanics living in the U.S. for 20 or more years. It is accepted that second-generation Hispanic consumers reflect the best of each culture, thus becoming the ideal target for some products marketed to the Spanish-speaking culture, and for others targeting the English-speaking culture.

Different levels of bilingual ability are also found among second-generation Hispanics. While most of them clearly understand Spanish, their academic (reading and writing) and conversational skills are stronger in English. Some types of research studies that should include second-generation Hispanic consumers are:

— evaluation of products or services targeted to a more “modern,” and likely better-educated, Hispanic consumer, such as technology and financial services;

— evaluation of products or services that originally were targeted to Hispanic consumers but are looking for niche markets within the general market or vice versa;

— whenever the key question is: Do I really need to develop a specific Hispanic strategy for my product?

  • Third-generation Hispanic (acculturated) consumers are the grandchildren of first-generation immigrants. They were born and educated in the U.S. and fully reflect its culture, thus they are considered general-market consumers. Unless a specific sociological comparison is intended, or the product is very specific, there are no viable reasons to include third-generation Hispanics as participants in Hispanic research studies.

Original country: The question as to which is the original country of an Hispanic consumer (his or her country or that of his or her ancestors) plays a role in segmentation decisions related to some types of studies while it is irrelevant for some others. To begin with, the question is critical for:

  • Food-related studies: Food habits and taste preferences are some of the more impervious cultural traits, along with language and traditions. While merging with different cultures, immigrants can be easily impacted by some of the expressions of the new culture, such as daily routines and attitudes. However, enjoyment of some tastes, textures, ingredients, etc., remains intact and is unknowingly transmitted across several generations. Since the U.S. Hispanic population includes individuals coming from different Latin American countries5, satisfying inter-country food preferences is an objective that requires consumer research studies be as discriminative as possible. In addition, learning each particular food habit may lead to the identification of new and unexpected opportunities even for U.S. general-market consumers. For example, spinach quesadillas, which are well-accepted in U.S. markets these days, were never an original Mexican recipe, but the result of U.S. Mexican housewives’ efforts to replace epalote (a special Mexican herb that is seldom found in U.S. supermarkets) with an ingredient that was available in the U.S., and produced an appearance and taste similar to that of the original herb.
  • Spanish-language ads: Segmentation of Hispanic respondents (to evaluate ads, usage instructions, and all other types of communications in the Spanish language) must include participants from various Spanish-speaking countries of origin. It will prevent issues associated with:

— Differences in language usage among Hispanics coming from different original countries, because colloquial expressions commonly used by some Hispanic consumers can seem unintelligible, have different connotations or may even be insulting to others.

— Accent: Hispanic audiences dislike listening to ads with an accent or poor diction, just as English-speaking audiences do. English-speaking advertisers and client companies are regularly able to detect pitfalls in English but not in Spanish. Some expressions, accentuations and cadences of the Spanish language, as it is spoken in some Latin American countries, identify social classes and educational levels, while others are neutral and well-accepted by most Hispanic audiences.

Markets

Some types of products are only accepted by Hispanics coming from specific Latin American countries, while others are accepted equally well among all Hispanic consumers. In addition, specific cities can offer bigger business opportunities for some Hispanic marketing initiatives than for others, due to household size (CGP, for instance) or growth rates of the Hispanic population. In addition, some markets are more cost-effective for cross-cultural studies involving both Hispanic and non-Hispanic populations. Tables 1-4 may help in making decisions related to markets when planning qualitative Hispanic research studies.

Language

Although the dominant language of the targeted respondents may seem to be the obvious choice, language selection should never be assumed. For example, some Hispanic respondents, both first- and second-generation, are bilingual yet show varied levels of competence in either language. Others may have a dominant language for some situations and a different one for others (e.g., home versus work), and some first-generation individuals are not able to communicate in English at all. The following general guidelines will help in addressing this question:

  • Spanish language: First-generation Hispanics may show different levels of ability to communicate in English, ranging from “not a single word” to “English is my second language.” However, Spanish is the first-generation consumer’s native language and consequently they are most comfortable with it. In addition, Spanish is a much richer language than English, and by asking first-generation Hispanic respondents to communicate in English, their ability to express their deepest thoughts and feelings can be challenged, perhaps leading to the loss of invaluable marketing insights and learning about cultural traits underlying their consumption preferences. Therefore, Spanish is always the best option when interviewing first-generation Hispanic respondents.
  • English language: Research studies involving second-generation Hispanics should be conducted either in their preferred language (generally English), or in the language that represents the most cost-effective solution. Client companies might prefer that this segment speak English because translation services can represent a significant added expense, and many marketing executives feel more comfortable if they can listen to respondents speak in their own tongue without an interpreter. Consequently, using English for research studies including second-generation Hispanics seems to be the most reasonable decision.

However, the fact that language is not only a means to communicate, but also the expression of the culture, challenges this view. I have heard second-generation respondents expressing very different values and motivations when speaking in English versus in Spanish about the same product. In addition, it seems logical to think that when U.S. companies conduct research targeted to Hispanic consumers, they expect to hear the Hispanic voice of the respondent, i.e., the one that expresses and thinks in Spanish, thus Spanish cannot be automatically disregarded. A careful analysis of each particular situation should support decisions on the language to be used, while screening questionnaires play a critical role when determining a second-generation respondent’s real fluency and comfort while participating in research studies in either language.

  • Bilingual focus groups: In the past, there was a trend to conduct bilingual focus groups, where both English-speaking and Spanish-speaking respondents would meet. Although this practice may represent budgeting advantages, it introduces serious biases impacting the research findings. Among others, it compromises the ability of the respondents to speak to each other, which opposes the intrinsic nature of focus groups. Focus groups have never been meant to encompass a series of questions to which each participant should respond individually, but a dynamic exchange of experiences and opinions regarding a selected topic. The exchanges and interactions among respondents, as facilitated by the moderator, should produce synergistic insights, i.e., insights that are more productive and richer than the simple sum of each individual’s contributions. Leading consumers to “say more” about their own motivations and behaviors as triggered by other respondents’ comments is the essence of the focus group that is blocked when participants cannot freely speak to each other due to language barriers.

Method

As with general-market research, decisions related to methodologies or techniques for a Hispanic research study depend primarily upon its objectives. Other key factors include target demographics, timing, budget and availability of the materials to be evaluated.

There are, however, two methodologies that I always consider as the first choice for U.S. client companies: ethnographic research and face-to-face focus groups. These methods offer the following advantages for better understanding the Hispanic consumer:

  • Ethnographic (observational) research (visiting Hispanic consumers in their homes, accompanying them on shopping trips, watching them cook, etc.) immerses the client in the real life of the Hispanic consumer. Firsthand learning of how, where, with which tools, etc., the Hispanic person buys or consumes a product will help develop understanding of the culture that is otherwise unattainable. Also, taking pictures of actual Hispanic environments enriches the imagery of the communication targeted to Hispanics. Marketing and communication ideas resulting from immersion into the Hispanic world will surely reflect what has been subconsciously learned while interacting with them in their real, daily lives.
  • Focus groups: Clients attending face-to-face focus groups will observe real, live Hispanic consumers, and will monitor the interactions that take place when they are discussing critical issues related to their products and business, thus obtaining consumer insights that are richer than what is attained by reading written reports or analyzing secondhand impressions. The observer will be able to listen for himself/herself to all verbatims and observe all non-verbal clues to develop a familiarity with the Hispanic culture that will help him/her accurately interpret research findings.

Both of these methods also represent a unique opportunity for U.S. client-company executives to become comfortable with thinking about the Hispanic consumer. The Hispanic individual will no longer be represented by a series of statistics and figures but will have acquired an emotional meaning (through voices, faces, names, emotions) that will lead to progressive proficiency in the understanding of Hispanic consumption patterns. Knowledge about them will accumulate, thus making both methods very cost-effective in the long run.

Careful consideration

Ultimately, planning Hispanic research is a process that requires careful consideration of each particular circumstance and research objective. Just like in any general-market research project, there are no universal formulas that can be automatically applied. Many large companies that have learned of criteria unique to the Hispanic marketplace from making costly errors can say today that extra analyses and considerations, due to the lack of familiarity with the Hispanic consumer, are always in order.

References

1 U.S. Census Bureau, estimates in 2004.

2 U.S. Census Bureau, estimates in 2004.

3 The Pew Hispanic Center: “The Rise of Second Generation,” October, 2003.

4 U.S. Census Bureau: “Hispanics: A People in Motion,” June, 2005.

5 At least three regional Hispanic subgroups can be identified: Mexicans, accounting for 63 percent of the U.S. Hispanic population, Caribbean, mainly Puerto Rican, Cuban and Dominican (24 percent), and South American (13 percent). Depending on the type of food, some producers may want to concentrate mainly on the Mexican Hispanic group, while for some others a wider range would work better.

6 Scarborough USA, DMA, 2004, cited by Arbitron’s “Hispanic Consumer Buying Power.”

7 U.S. Census Bureau 2000, basic counting.

8 U.S. Census Bureau 2000, basic counting.

9 Source: Scarborough USA, DMA, September 27, 2005.