Self-referencing and optimal distinctiveness theory: The theoretical underpinnings to US multicultural marketing

Abstract

This paper revisits in-culture marketing, a model that has served as the strategic backbone to Hispanic marketing in the USA for more than three decades. Although popular and useful, in-culture marketing lacks a theoretical foundation and empirical validation. To help brands do a better job of engaging with an increasingly multicultural population, this paper introduces two theories rooted in social psychology: self-referencing, which has been shown to drive advertising effectiveness when information is linked to the self, and (2) optimal distinctiveness theory, which helps explain social identity and how people come to define themselves in terms of their social group memberships. At a time when the US population is becoming increasingly multicultural, this paper advances a conceptual fourquadrant model designed to improve marketing effectiveness for leading corporations. The paper argues that the US advertising industry bears the responsibility to develop and promote new strategic approaches that help leading brands grow — even if it means challenging today’s business models and disrupting the status quo.