Table of Contents
Executive Summary
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- Half of Hispanics fall in brand loyal segments
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- Figure 1: Hispanic brand loyalty segments, October 2015
- The issues
- Hispanics value functional aspects in brands
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- Figure 2: Brand loyalty association, October 2015
- Meeting expectations is key
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- Figure 3: Brand loyalty drivers, October 2015
- Brand loyalty breakers
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- Figure 4: Switching triggers, October 2015
- The opportunities
- If life gives you lemons, make lemonade
- Knowing me, knowing you
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- Figure 5: Hispanics’ perception of brand names – Well-known vs less-known, October 2015
- Finding partners in Hispanic consumers
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- Figure 6: Hispanics’ brand advocacy – Telling others, October 2015
- What it means
The Market – What You Need to Know
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- Hispanics approach brand loyalty in five ways
- Brand loyalty may not be affordable to all
- Larger households impact family dynamics
- Hispanics compare prices online
The Hispanic Market and Brand Loyalty
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- Brand loyalty segmentation
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- Figure 7: Hispanic brand loyalty segments, October 2015
- Gained Loyalists (33%)
- Characteristics
- Opportunities
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- Figure 8: Profile of Hispanic Gained Loyalists, October 2015
- Traditional Loyalists (20%)
- Characteristics
- Opportunities
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- Figure 9: Profile of Hispanic Traditional Loyalists, October 2015
- Value Consumers (15%)
- Characteristics
- Opportunities
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- Figure 10: Profile of Hispanic Value Consumers, October 2015
- Occasional Consumers (16%)
- Characteristics
- Opportunities
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- Figure 11: Profile of Hispanic Occasional Consumers, October 2015
- Distrustful Consumers (16%)
- Characteristics
- Opportunities
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- Figure 12: Profile of Hispanic Distrustful Consumers, October 2015
Market Factors
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- Improving labor market gives Hispanics the confidence to afford loyalty
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- Figure 13: Hispanic unemployment, January 2007-June 2015
- Money issues can affect brand loyalty
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- Figure 14: Median household income for households headed by Hispanics, by age of householder, 2014
- Hispanics live in larger households
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- Figure 15: Average household size and average number of adults and children in households, by race and Hispanic origin, 2014
- Hispanic market becoming more bicultural
- The internet is making Hispanics price savvy
Key Themes – What You Need to Know
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- Putting brand loyalty in the context of your category
- Different challenges depending on where brand is
- The market is poised to become more fragmented
Category Studies in What’s Working
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- Imported beer through the brand loyalty lens
- Cars through the brand loyalty lens
- Ready-to-eat cookies through the brand loyalty lens
- Shampoo through the brand loyalty lens
What’s Challenging?
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- Current positioning defines some of the challenges brands face
What’s Next?
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- An increasingly fragmented market
The Consumer – What You Need to Know
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- Affordable + Dependable + Trustworthy = Quality
- Loyalty is built on the basis of customer satisfaction
- Unmet expectations erode brand loyalty
- Brand availability may guide where Hispanics shop
- Brand names don’t mean much without personal experience
- Financial constraints can put pressure on brand loyalty
What Brand Loyalty Means to Hispanics
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- Affordability, dependability, and trustworthiness feed quality perception
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- Figure 16: Brand loyalty association, October 2015
- Household income influences the definition of quality
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- Figure 17: Brand loyalty association, by level of acculturation, October 2015
- Looking beyond core factors
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- Figure 18: Brand loyalty association, by level of acculturation, October 2015
Brand Loyalty Drivers
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- Loyalty driven by satisfied expectations
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- Figure 19: Brand loyalty drivers, October 2015
- Hispanic women are more pragmatic about loyalty
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- Figure 20: Brand loyalty drivers, by age and gender, October 2015
- Unacculturated and bicultural Hispanics more open to look beyond the actual product
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- Figure 21: Brand loyalty drivers, by age and gender, October 2015
Switching Triggers
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- It’s all about expectations
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- Figure 22: Switching triggers, October 2015
- Older Hispanics less forgiving about changes in quality
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- Figure 23: Switching triggers, by gender and age, October 2015
- Not every misstep is a mortal sin
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- Figure 24: Switching triggers, by Hispanic brand loyalty segments, October 2015
How Brand Loyal are Hispanics?
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- Hispanics tend to know the brands they want
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- Figure 25: Share of brand loyalty – summary of means, October 2015
- The importance of brand varies among Hispanic brand loyalty segments
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- Figure 26: Share of brand loyalty – Summary of means, by Hispanic brand loyalty segments, October 2015
Hispanics’ Perception of Brand Names
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- Well-known brands don’t always mean better quality
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- Figure 27: Hispanics’ perception of brand names – Well-known vs less-known, October 2015
- Unacculturated Hispanics more open to see less-known brand names positively
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- Figure 28: Hispanics’ perception of brand names – Well-known vs less-known, by level of acculturation, October 2015
- Hispanic Gained Loyalists more impressed with well-known brand names
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- Figure 29: Hispanics’ perception of brand names – Well-known vs less-known, by Hispanic brand loyalty segments, October 2015
- Value is a function of price and quality
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- Figure 30: Hispanics’ perception of brand names – Brand name vs price, October 2015
- Financial constraints can trump brand loyalty
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- Figure 31: Hispanics’ perception of brand names – Brand name vs price, by household income, October 2015
- Brand name is important for Hispanic Gained Loyalists
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- Figure 32: Hispanics’ perception of brand names – Brand name vs price, by Hispanic brand loyalty segments, October 2015
- Trust is built over time
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- Figure 33: Hispanics’ brand trust – Older brands vs new brands, October 2015
- New brands more trusted by less acculturated Hispanics
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- Figure 34: Hispanics’ brand trust – Older brands vs new brands, by level of acculturation, October 2015
Finding Brands that Hispanics Like
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- Brand availability prompts Hispanics to shop at multiple stores
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- Figure 35: Hispanics’ attitudes toward brands – Brands and stores, October 2015
- Higher household incomes allow Hispanics to shop for the brands they want
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- Figure 36: Hispanics’ attitudes toward brands – Brands and stores, by household income, October 2015
- Hispanics know where to find the brands they want
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- Figure 37: Hispanics’ attitudes toward brands – Ease of finding brands, October 2015
Factors Influencing Brand Selection
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- Hispanics underestimate the influence of their families on their purchases
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- Figure 38: Factors influencing brand selection – Family influence, October 2015
- Larger families are more democratic
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- Figure 39: Factors influencing brand selection – Family influence, October 2015
- Not all sales are created equal
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- Figure 40: Factors influencing brand selection – Sales, October 2015
- Attitudes toward sales do not differ by household income
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- Figure 41: Factors influencing brand selection – Sales, by household income, October 2015
- Coupons and promotions can move Hispanics to action
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- Figure 42: Factors influencing brand selection – Coupons and promotions, October 2015
- Coupons and promotions more appealing to women
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- Figure 43: Factors influencing brand selection – Coupons and promotions, by gender and age, October 2015
Brand Advocacy
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- Hispanics vocal about brands they like
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- Figure 44: Hispanics’ brand advocacy – Telling others, October 2015
- More affluent Hispanics talk more
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- Figure 45: Hispanics’ brand advocacy – Telling others, by household income, October 2015
- Hispanics as brand advocates
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- Figure 46: Hispanics’ brand advocacy – Buying brands for others, October 2015
- Hispanics promote brands they like as an appreciation to others
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- Figure 47: Hispanics’ brand advocacy – Buying brands for other, by level of acculturation, October 2015
Appendix: Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- A note on acculturation
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