Minority Consumers Research Articles

Standardization or adaptation? Ethnic marketing strategies through the eyes of practitioners and consumers in Flanders

Considering the growing interest of marketers to communicate with ethnic minority groups in an increasingly more diverse society and the limited empirical work on ethnic minorities as consumers, this study aims to explore the way in which ethnic marketing practices are perceived by both practitioners and ethnic minority consumers in Flanders. By means of structured in-depth interviews the opportunities and limitations of ethnic marketing in a small, though multi-ethnic, society are evaluated. On the one hand, the study shows that young adults with ethnic origins feel particularly positive about their recognition and inclusion as a ‘new’ target group in the market. On the other, both practitioners and ethnic minority consumers articulate their reservations about the economic benefits, the social impact and desirability of adjustments in advertising messages in order to target ethnic minority consumers.

Demarketing, Minorities, and National Attachment

This study addresses two important global trends: protection of public goods, specifically the environment, and the emergence of multiethnic societies with influential minority groups. The study tests the effect of a government proenvironmental demarketing campaign on the deconsumption behavior of minority groups and the majority population. It suggests that minority consumers use consumption or deconsumption to manifest their social identity, beliefs, and goals as minorities in relation to the majority and that their motivation to respond positively to a government's demarketing campaign is shaped by their national attachment levels. The study was conducted in Jerusalem, Israel, and involved a large data set (N = 66,272) containing household-level data on actual behavior of consumers. The studied groups invovled the majority of non-ultra-Orthodox Jews and three minority groups: Israeli Arabs, ultra-Orthodox Jews, and Jewish Russian immigrants. The findings show that in a proenvironmental context, government demarketing is more effective on the majority group than on any of the three minority groups. In addition, minority groups with lower national attachment levels respond more negatively to the demarketing effort. However, higher education levels lead to a more positive response across the majority and minority groups. A central implication of the findings is related to the benefits derived from demarketing for different consumer groups (majorities versus minorities based on religion, ethnicity, and immigration status). The findings also provide a benchmark for demarketing efforts in an environmental context. Finally, they suggest that policy makers and marketers should consider using demarketing more to complement regulatory and economic tools.

CONSUMING AUTHENTICITY

Alternative consumption practices often lead to the creation of entrepreneurial spaces like restaurants and bars, and to the resurgence of farmers’ markets, offering urban consumers a safe and comfortable place to ‘perform’ difference from mainstream norms. These spaces fabricate an aura of authenticity based on the history of the area or the back story of their products, and capitalize on the tastes of their young, alternative clientele. This vision gradually attracts media attention and a broader consumer base, followed by larger stores and real estate developers, leading to hip neighborhoods with luxury housing, aka gentrification. Whether the specific discourse of consumption is based on distinction or inclusion, alternative consumers are not so innocent agents of change. Their desire for alternative foods, both gourmet and organic, and for ‘middle class’ shopping areas encourages a dynamic of urban redevelopment that displaces working-class and ethnic minority consumers.

A theory-based measure of acculturation: The shortened cultural life style inventory

This paper describes a model of acculturation for classifying minority consumers into distinct categories depending on their attitudes and behaviors toward their minority culture and toward the majority culture. These categories are assimilation, segregation, and integration. The model differs from previous models of acculturation in consumer research in that it does not assume a linear progression toward assimilation. The acculturation categories identified by the model can be used to segment minority markets. A reduced version of a previous scale based on that acculturation model is developed and validated in two empirical studies in a consumer research setting. Our scale can be used by managers to segment minority populations.

Course Innovation: “Diverse Consumers: Race, Ethnicity, Religion, Social Class, and Gender”

The goal of the innovative undergraduate course, “Diverse Consumers: Race, Ethnicity, Religion, Social Class, and Gender,” was to enable students to discover the consumer behavior outcomes of diversity by observing it directly in “Discovery Walk” assignments that took them to neighborhoods where minority consumers live, work, and shop. It addressed the problem of integrating diversity into the marketing curriculum by means of a seminar designed to focus specifically on diversity outcomes. Observational methodology was taught to allow students to experience marketplace outcomes on their own, thus gaining enhanced knowledge in an exciting and memorable way.

How Social Insecurity and the Social Meaning of Advertising Reinforce Minority Consumers' Preference for National Brands

This study compares social insecurity among members of racial/ethnic subcultures within U.S. society to that same characteristic among ethnic majorities and likewise compares minority vs. majority choices of nationally advertised brands over their private label counterparts. The study, building on the preference of ethnic minorities for national brands found by Dhar and Hoch (1997), tests the overall idea that the social meaning of such brands, derived at least in part from advertising, plays a role. Data from a simulated shopping exercise are employed to test the influence of status insecurity and of minority ethnicity/race on preference for nationally advertised brands, with positive results.

Imperfect Competition in Auto Lending: Subjective Markup, Racial Disparity, and Class Action Litigation

While the market for auto lending at first appears to be highly competitive, many consumers lack the ability to obtain accurate information about price. In many markets, uninformed consumers can “free ride” off the knowledge of informed consumers. Auto lending, however, differs from traditional markets because price is not transparent and ultimately depends upon both the credit worthiness of the individual borrower and the details of the auto loan (term length, payment-to-income ratio, etc.). Auto dealers in this market act as agents of both consumers (identifying suitable auto lenders) and lenders (identifying prospective borrowers). Given the asymmetric information in the market, prices paid by consumers for auto loans vary widely even after controlling for factors such as credit worthiness. While the majority of auto loans are written without any markup, some consumers are charged thousands of dollars in addition to the risk-based interest rate. For example, the top 5% of customers account for over 40% of dealer markup from auto lending. While charging different prices to different consumers is not illegal, one of the apparent consequences in auto lending is that minority consumers – African-Americans and Hispanics in particular – have systematically been charged a higher markup on auto loans than White borrowers. It is this fact – coupled with federal laws outlawing discrimination in credit markets – that led to a series of lawsuits against auto lending institutions. This paper reviews the theory and evidence of subjective markups on auto loans and examines how class action litigation has changed the auto lending market.

Fortification of selected foodstuffs with folic acid in the UK: consumer research carried out to inform policy recommendations

The UK Food Standards Agency Board identified four options to increase folate intake in women of reproductive age in order to reduce the risk of neural tube defect (NTD) affected pregnancies; these ranged from continuing with current policy, to mandatory fortification of bread or flour with folic acid. In order to appraise these options, the agency carried out a consultation, and also commissioned four pieces of research. This paper provides detailed information about two of the research studies, which used qualitative research approaches to gather consumer evidence. Study 1: This was carried out with people from a wide range of demographic backgrounds. A 'reconvened group' methodology was used, with five groups convened twice, in five geographical locations. In addition paired, in depth face-to-face interviews were conducted with female black and ethnic minority consumers. Study 2: This was carried out with young mothers living in deprived communities. The approach used for this study was in depth face-to-face interviews (n = 24). In addition, discussions were held in seven friendship groups. Study 1: only a minority of participants knew about a link between spina bifida and folic acid, and these tended to be women with young families. After the provision of some information about the causes and impacts of NTDs, the majority were in favour of action to tackle the issue. Support for mandatory fortification increased considerably during the study, and at the final discussion, this option was most preferred. Study 2: In this group, there was a fatalistic approach to pregnancy and to health. The women were less likely to change established habits if this required effort, money or doing something unfamiliar. They tended to actively avoid thinking about risks, by rationalizing them. Mandatory fortification was preferred by the majority of respondents. In this research, mandatory fortification was the preferred option. There were outstanding concerns about risk, and the maintenance of consumer choice, which would need to be addressed in policy recommendations.

Explaining Mental Health Treatment Disparities: Ethnic and Cultural Differences in Family Involvement

In a large, representative sample of persons receiving public mental health treatment, we examined whether ethnic minority consumers were more likely than white consumers to live with their families and to receive family support. We then evaluated whether differences observed in family involvement explained treatment disparities observed in outpatient and inpatient mental health services. Results indicated that Asian American and Latino consumers, especially, were considerably more likely than white consumers to live with family members and to receive family support. Ethnocultural differences in living with family did explain treatment intensity disparities whether or not consumers described themselves as dependent on family support. The results support the hypothesis that cultural differences in family involvement and support play a role in explaining mental health treatment disparities.

Imperfect Competition in Auto Lending: Subjective Markup, Racial Disparity, and Class Action Litigation

While the market for auto lending at first appears to be highly competitive, many consumers lack the ability to obtain accurate information about price. In many markets, uninformed consumers can free ride off the knowledge of informed consumers. However, the market for auto lending differs from traditional markets because price ultimately depends upon both the credit worthiness of the individual borrower and the details of the auto loan (e.g. term length, payment-to-income ratio, etc.). Auto dealers in this market act as agents of both consumers (identifying suitable auto lenders for them) and auto lenders (identifying prospective borrowers). Given the asymmetric information about prices facing consumers, this market has been characterized by a wide disparity in the prices paid by consumers. This disparity comes about through a mechanism whereby auto dealers are quoted a risk-based interest rate from the lender and are then authorized to subjectively mark up this rate and charge what the market will bear. While the majority of auto loans are written without any markup, some consumers are charged thousands of dollars in addition to the risk-based interest rate. While charging different prices to different consumers is not illegal, one of the apparent consequences in auto lending is that minority consumers - African-Americans and Hispanics in particular - have systematically been charged a higher markup on auto loans than White borrowers. It is this fact - coupled with federal laws outlawing discrimination in credit markets - that led to a series of lawsuits against auto lending institutions. This paper reviews the theory and evidence of subjective markups on auto loans and examines how class action litigation has changed the auto lending market.

Minority Models in Advertisements in Magazines Popular with Minorities

Previous research has studied minority representation in advertising in mainstream media but has not looked at media popular with minority consumers. This content analysis compares advertisements in magazines with the highest concentration of readers from the three largest minority groups with ads in the highest-selling consumer magazines targeting the population as a whole. Each ethnic group had its highest representation in ads in magazines popular with the group. However, levels of this representation differed significantly by targeted group, being highest for African Americans and lowest for Asian Americans.

Minority Status, Consumer Outcomes, and Service Inputs in Four States

Data from the Center for Outcome Analysis were subjected to independent secondary analysis involving comparisons by ethnic group of eight indicators of service quality for users of adult developmental disability services in four states. Ethnic group membership had very limited or no association with the consumer outcomes and service inputs evaluated. Where significant ethnic group differences were found, they were small, and there was no consistent pattern of a particular ethnic group doing better. These findings may relate to the substantial influence of developmental disability services in the lives of service recipients and to the effect of disability itself, in that adaptive behavior was strongly related to most consumer outcomes.

Use of tobacco retailer inspections to reduce tobacco sales to youth: do inspections increase retailer compliance?

AbstractPublic health efforts to prevent tobacco use among young people have typically attempted to change individual behaviour. More recently, it has become evident that macro‐level behaviour change strategies which impact on the wider social environment are more effective in changing behaviour. In most states, retailer compliance laws restrict the sale and distribution of tobacco products to minor consumers. Indiana's Tobacco Retailer Inspection Program (TRIP), a state government programme, was established to put environmental controls in place by restricting youth access to tobacco products. TRIP involved conducting random, unannounced tobacco retailer outlet inspections, with violators being fined, and compliant retailers rewarded. This study examines the associations among retailer inspections, retailer compliance and access to tobacco by youthful consumers. Inspection data from 2001 to 2003 were analysed using chi‐square statistics and analysis of variance. Findings indicate that randomly selected retail outlet inspections are associated with increased sales restrictions to youth. The researchers conclude that strong tobacco sales regulations and enforcement will reduce illegal sales of tobacco products to minors.

Interstate Wine Shipments and E-Commerce

I am an economist, appearing on this panel as an individual at the request of FTC staff. I own a small vineyard in Napa Valley, California, have sold grapes to large and small wineries, and am familiar with the positions taken by many of the people in the wine industry regarding the opportunities and limitations surrounding direct sales of wine to consumers. My intention, however, is to speak here as an advocate for consumers rather than as an advocate for the wine business. My work as a professional economist concentrates primarily on consumer behavior, with applications in marketing, health, and the environment. I do not have a specialty in the economics of the wine industry. I am the E. Morris Cox Professor of Economics at the University of California, Berkeley, and have served as President of the Econometrics Society and as vice-president of the American Economics Association. In 2000, I won the Nobel Prize in Economics for my work on consumer choice behavior.In common with most economists, I believe that consumers benefit from free markets operated with the minimum government regulation required for consumer protection. The history of government regulation of markets is littered with examples of restrictions, ostensibly adopted on behalf of consumers, that instead protect concentrated economic interests at the consumers' expense. The restrictions on direct purchase of premium wines and their interstate shipment that have been adopted by a number of States are, I believe, another example of abuse of the regulatory process to protect concentrated economic interests, going far beyond the minimum regulations needed to maintain the integrity of State taxation and to protect minor consumers.

Can English Language Media Connect with Ethnic Audiences? Ethnic Minorities' Media Use and Representation Perceptions

<h3>ABSTRACT</h3> With the size of ethnic minority groups expanding and their disposable income increasing, the consumption landscape and media environment are constantly evolving. It is important for advertisers to understand how ethnic minority group members feel about being targeted by current multicultural marketing communication practices and if English language media for the general market are still a good way to reach these consumers. Past research has often employed a content analysis technique to gauge instances of ethnic minority representation in advertising. However, a void exists in the literature with respect to examining how ethnic minorities actually feel about tactics and messages directed at them. Therefore a cross-cultural survey of adults in three ethnic groups in the United States was carried out to examine these attitudes and also to assess current media use patterns. The results suggest that English broadcast media are still a good way to reach people across the various groups. The study further reveals that attitudes toward the frequency and accuracy of these groups as portrayed in advertisements are somewhat different from the negative viewpoints historically found in the literature. In fact, the results suggest that today9s advertisements are not considered inadequate or inaccurate by many and that efforts toward targeting ethnic minorities are potentially welcomed. However, a bi-modal distribution across several representation issues indicates that advertisers must still be cautious in the minds of some ethnic minority consumers. Implications for advertisers and media planners are discussed as well as suggestions for future research.

Chicano Lite

This article is an ethnography of working-class, Mexican-American consumer patterns on the US-Mexico border. Through a study of locally-owned grocery stores, family parties and fast-food restaurants in El Paso, Texas, I examine the double-edged nature of border consumerism. Minority consumers, such as Mexican-Americans, often modify mainstream consumer products and processes to suit their own needs and values. The resultant consumer styles embody a considerable degree of creativity, contradiction and hybridity, especially for immigrant minorities. I show how, despite their subordinated class and status positions in US society, Mexican-Americans create spaces of resistant cultural meaning within consumer spheres normally treated as generically (Anglo-) American. I conclude that US consumer culture is both a source of self-fulfilment and a means through which Mexican-Americans become further enmeshed in a system of vastly unequal political and economic power.

Partnering with the Community

ABSTRACT The Women's Health Network for Minority Consumer Health Outreach (WHN) facilitates access to culturally and linguistically appropriate consumer health information. WHN is a partnership of the Virginia Commonwealth University (VCU) Health System, the VCU Libraries Tompkins-McCaw Library for the Health Sciences, VCU School of Nursing, REACH (consortium of health providers), and the Virginia Hispanic Chamber of Commerce. Computers were placed in five community locations where staff were trained to search for and evaluate health Web sites and use appropriate resources (e.g., MedlinePlus). Products included a Web site, health education lectures, and promotional exhibits at various community events. A community group regularly advises program directors.

Minority response to ethnically similar models in advertisements: an application of accommodation theory

This study applies socio-linguistic accommodation theory to explain the effects of using ethnically similar models on a minority consumer's response to ads. It identifies two factors that moderate the consumer's response—the consumer's perception about the advertiser's cultural sensitivity and the consumer's strength of ethnic identification. Hypotheses are tested using an experimental design with data collected from 204 Asian–Americans. Results indicate that among Asian–American consumers who perceive the advertiser to be culturally sensitive, the response (attitude toward the ad, brand and company, and intention to buy) is favorable, whereas among those who do not, the response is not favorable. However, there are no significant effects of the minority consumers' strength of ethnic identification on their response. This finding is interesting when contrasted with the effects of strength of ethnic identification found with Hispanics and blacks. Managerial implications and suggestions for future research are offered.

Playing to win: an explorative study of marketing strategies of small ethnic retail entrepreneurs in the UK

The paper is based on an explorative study of small ethnic retail entrepreneurs and their target consumers in the UK. The paper argues that the ethnic entrepreneurs engage in a number of marketing practices that reveal their competency, innovation and networking abilities to successfully compete in a competitive context. In doing so, the paper highlights the ambivalent nature of marketing practices followed by ethnic entrepreneurs revealing their role as bicultural mediators seeking to facilitate negotiations of multiple identities by their multi-ethnic consumers. The paper discusses implications for marketers of mainstream brands who are interested in targeting ethnic minority consumers.

Who Benefits Whom in Local Television Markets?

Urban economists have recently devoted substantial attention to exploring the production-side benefits of cities.1 The consumption-side benefits of agglomeration have received far less attention.2 Separately, empirical studies of entry in industrial organization tend to use geographic markets as observations. These studies, such as Bresnahan and Reiss, make use of the relationship between market size and the number of firms operating to draw inferences about the effects of entry on pricing behavior.3 These studies show, incidentally, that larger markets tend to have more firms. When consumption data are available, studies often show that in larger markets, a higher fraction of the population consumes a product in the industry being studied. Other studies have begun to document the relationship between market size and the distribution of product qualities offered.4 Although they were not originally directed at urban economists, these studies' results may be of interest to urban economics. They show empirically [End Page 257] that when production carries substantial fixed costs, larger markets can offer more, more varied, and sometimes higher-quality products. Ensuing broader product options can increase consumer welfare by offering more types of consumers options they prefer; and product variety can draw a higher share of residents to consumption. In this sense people can benefit one another, by agglomeration into local product markets, in their capacity as fellow product consumers. But consumers need not benefit one another equally. A final strand of recent industrial economic research of possible interest to urban economists asks "who benefits whom" in differentiated product markets. This research examines the relationship between the distribution of product-preferring consumers in the market and the mix of products offered. Using local media markets as examples, this strand documents that consumers will benefit one another only to the extent that they bring forth products that also appeal to others, which, in turn, will occur only if they share similar preferences. Again, this research uses geographic markets as a means of observing multiple markets. In so doing, however, the work documents results of possible importance for urban economics by showing starkly different within-group and across-group distribution of agglomeration benefits through product markets. This paper continues this line by examining effects of white and minority consumers on each other in local television markets. Blacks and whites (and Hispanics and non-Hispanics) have substantially different preferences in media products. The radio formats attracting two-thirds of black listeners collectively attract less than 5 percent of white listeners.5 In markets with two daily papers, black readership tends to be heavily concentrated in only one of them.6 Local markets with larger black populations have more black-targeted radio stations and daily papers that cater more heavily to black consumers' tastes. Moreover, blacks are more likely to consume local radio and daily newspaper products in markets with more heavily black populations. As a consequence, blacks and whites are better off, in their capacity as local media consumers, as their markets have larger black and white populations, respectively. The scope for these sorts of effects to operate in markets is larger, the higher fixed costs are relative to market size. This is why black and white [End Page 258] consumers affect one another more significantly in daily newspaper markets, which have only a handful of products per market, than in local radio markets, averaging twenty-five stations per market. Unlike daily papers and radio, which are predominantly local media, television is a mixed local-national medium. Much programming, including network prime time and almost all cable channels, is uniform across place. However, outside of prime time, local broadcast stations, including both independent stations and affiliates of networks (such as ABC, CBS, or Fox), determine much of their programming locally. The latter set of programming decisions allows a mechanism for television consumers to affect their fellow local residents. Yet, given widespread availability of a large number of specialized national cable (and satellite) channels...