Reference Groups and their Influence in Marketing to Hispanics.

Who one believes himself or herself to be and what reference group the individual feels comfortable using are important factors when making purchasing decisions. As with any group, this concept is important when marketing to U.S. Hispanics.

Understanding cultural identification as a way of effective marketing can present a dilemma though. In order to understand this, questions must be asked and research must be done; however, pinpointing cultural identity may be hindered based on the questions being asked and the person asking those questions. Beyond this complication, “different reference groups may have different saliency in different circumstances” (Korzenny & Korzenny, 2005, p. 63). Understanding these conditions yet coming up with effective advertising is the job of marketers today.

The term “Hispanic,” in itself, is a source of controversy and debate. Although 53% of Hispanics do not have a preference between “Hispanic” or “Latino,” according to the 2002 National Survey of Latinos, almost half of the population has preferences (Korzenny, 2005). When interviewing students to better understand Hispanic identity, this held true. One interviewee, a Cuban male, preferred to be described as “Latino,” and was very passionate about the reasoning behind this preference. “Latino is representative of Latin America, and this is what we chose to be called,” he stated (personal communication, September 17, 2007). The other participant, a Mexican-American who has lived in the United States since birth, preferred “Hispanic” even though she pointed out the origins of this word comes from the U.S. Census Bureau.

Beyond this broad label, Hispanics have a great sense of identity with their country of origin (Korzenny, 2005). Even though one interviewee was born in the U.S., she identified as Mexican. Depending on how the question was presented, the male interviewee admitted that his answer would be different. If someone asked where he was from, he would likely respond “Miami.” However, if the question was asked in Spanish, he would reply, “Cuba” (personal communication, September 17, 2007). This could be the result of many factors including discomfort or assumed prejudices as presented by Korzenny (2005).

In regards to reference groups used by each participant, purchasing advice came primarily from other Hispanics, with family and friends being the first groups acknowledged. Word of mouth from these reference groups heavily impacts the decision being made, whether it was a small purchase or a large one. In some purchases, primary and secondary reference groups may exist. The consumer who has lived in the U.S. throughout her life still uses her family as her primary reference group, but the consumer who immigrated to the U.S. stated that the Hispanic reference group expanded after two or three years of being in the U.S. He noted that after the first few years of experiencing American mainstream marketing, immigrants are more aware of the items offered in the market and know what they like.
One interviewee, in particular, sited an instance in which marketing towards Hispanics influenced purchasing. A car commercial, which aired in Spanish, raised the interest of her father and resulted in the purchase of a Chevrolet Tahoe. This purchase might have been made as a result of the specialized marketing or it might have been the result of perceived status of sports utility vehicles in the U.S. SUVs are a symbol of success because of their cost in comparison to most cars, and Hispanics value the American presentation of success (Korzenny, 2005). After purchasing the car, her father was looked to as a model, and several other families purchased this model as a result of his recommendations. This example parallels one given in the reading. After the first purchase was made and perceived as a good choice, this provided confidence that the “resulting experience [would] be similarly good” for the additional consumers (Korzenny, 2005, p. 63).

Based on interviews with two college students, Hispanic reference groups were trusted more when considering quality of products. Both interviewees identified that the importance of quality as a main concern when making purchases, and quality has been shown as a significant insight into Hispanic culture. If a product is seen as having low quality by one member of the group, others are not likely to purchase that item. This is not always a luxury that can be afforded by recent immigrants, but once an individual, or family in many cases, has the funds to purchase higher quality products, this becomes a priority. The concept of quality over price, which was expressed by the students, parallels the cultural insight shown in the case study of Macy’s West in the book Hispanic Marketing: A Cultural Perspective (Korzenny & Korzenny, 2005).

While the influence of American mainstream culture should not be discounted as a reference for Hispanic consumers, the cultural identity based on family and community seems to provide a stronger voice in purchasing. If two items represent a same success level in American mainstream culture, the decision between the two might be made based on Hispanic reference groups. In other words, Anglo ideals of success sometimes supplement the information provided by Hispanic reference groups.

By Jessica Harpole
Multicultural Marketing Communication
Student
Center for Hispanic Marketing Communication
Florida State University