First ever U.S. Latinas Shopping Habits Study. Jackie Bird, CEO of Redbean Society
in New York and David Morse, CEO of New American Dimensions in California jointly announced the launch of a new study that will answer many marketers’ questions about the factors that drive shopping behavior among Latina women. The study is the first of its kind to evaluate the cultural and behavioral dynamics that influence shopping in the fastest growing consumer market segment in the U.S. today, the Hispanic market. This market is expected to represent at least $1.3 Trillion in buying power by 2013.
Latina women over-index their non-Hispanic counterparts in key shopping criteria such as frequency of shopping where Hispanics shop 20% more often, their average ticket purchase is 37% higher and they are 50% more likely to visit a secondary store, among many others.
While many research companies have conducted numerous research about shopping habits in the U.S. Hispanic market, this is the first time that we will have category-specific shopping behavior that will allow marketers to quantitatively measure the psychographic and cultural factors that influence brand choice. Further, through this research we expect to probe and validate at least four shopper archetypes among Latina women: Bargain Seekers, Impulsive Buyers, Planners and Convenience Seekers. The comprehensive study will interview a representative sample of 1,200 Latina women via telephone and personal intercepts combined. Based on key results and quantitative segmentation data, a series of focus group sessions will be conducted, in three of the largest Hispanic markets, Los Angeles, Houston and New York, to gather more in-depth insights into the shopping behavior for these segments.
“In today’s constrained economic environment shopping behavior has very quickly changed. We see much more coordinated and effective competition from private label brands and a tougher shopping environment in which consumers are much more in control due to the influences of social media and online activity. Old tried-and-true marketing and communications models are being challenged by consumers and trade sectors alike. We felt the space was open and the moment ripe for an initiative such as the Latina Shopper Study to help marketers navigate the waters among this most important shopper segment”, said Jackie Bird.
In order to make this study viable, Redbean Society and New American Dimensions joined forces to contribute their intellectual capital to generating the study and sought sponsorships from key marketers to cover fieldwork and other out of pocket costs. The Latina Shopper Study is sponsored by various major companies, including Pepsico, Sara Lee Corporation and VISA. General category data will be generated for the Food & Beverage, Financial Services, Personal Care and Apparel product categories. In addition to the broad-based data that will be made available to the general public, sponsors will derive category and brand-specific proprietary information based on their own additions to the questionnaire. All other data generated by the study is proprietary to sponsors, Redbean Society and New American Dimensions.
The general section of the study will analyze demographic data, psychographic values and lifestyles among Latina shoppers across these four product categories, producing key segmentations by level of acculturation and other significant criteria on attitudes toward shopping and brands. Further, this study will take acculturation measurement to a new level. In addition to the standard three questions normally used to determine acculturation, the Latina Shopper Study will add other segmentation variables that will measure the level of cultural influences held by Latina women.
In closing, David Morse added, “We got very excited with this initiative when Redbean came to us with it because there are many ‘firsts’ here. As one of the most prominent research companies in the field, we’ve worked with many clients across product and retail sectors and we have felt their pain as it relates to how the economic downturn has impacted their consumer businesses. By focusing on what drives shopping behavior among Latina women, the study will now allow marketers in these categories to strategize for their customer activation initiatives and develop stronger, more relevant shopper marketing and branding strategies to win in the U.S. Hispanic market.”
Fieldwork for the Latina Shopper Study has begun and topline reports are expected by early fall. “David and I thank our sponsors for making this study viable and for the trust they have placed in us in this endeavor”, Bird concluded