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

Abstract

AbstractThe 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.