Hispanics show strong reconnection to Heritage.

Hispanic and African American consumers are reconnecting with their roots more so now than at any other time in the past, according to the Yankelovich MONITOR Multicultural Marketing Study 2006 released today from marketing consultancy Yankelovich Inc. For Hispanics, this strong reconnection means growing the bi-cultural segment of the marketplace; for African Americans, it means creating a new Black renaissance.

This year’s study also revealed that trust in government and other institutions declined over the past year for African Americans while it remained positive for Hispanics. Yet, both groups still have strong trust in brands.

The study was developed in collaboration with Burrell Communications, the nation’s leading agency specializing in African American and urban markets, and Dr. Felipe Korzenny, professor and director of the Center for Hispanic Marketing Communication at Florida State University. Now in its third year, the study is the first of its kind to examine consumer behaviors and attitudes and offer comparative and contrasting views of the African American, U.S. Hispanic and Non-Hispanic White markets.

“The ability to reach African American and Hispanic consumers in a way that truly strikes a cord and connects with their deep-seated cultural values and beliefs is critical,” said Sonya Suarez-Hammond, Director of Multicultural Marketing Insights at Yankelovich. “Brands must show that they understand the ethnic consumer by crafting culturally appropriate and targeted messaging that speaks directly to them.”

Connection to the Past

More than ever before, both Hispanics and African Americans place great emphasis on keeping culture alive and staying connected to heritage,

— 67% of African Americans and 71% of Hispanics (versus 43% of Non-Hispanic Whites) say, “My roots and heritage are more important to me today than they were just five years ago.”

— 56% of Hispanics and 59% of African Americans (versus 22% of Non-Hispanic Whites) say, they “make a great effort to become more connected with my heritage.”

— 85% of Hispanics say they “consider myself to be Hispanic first, American second or consider myself to be both American and Hispanic equally.”

Among Hispanics, a stronger than ever re-connection to Hispanic roots is driving retro-acculturation and contributing to a larger bi-cultural and bilingual segment of the U.S. Hispanic population, Suarez-Hammond said. African Americans are also reconnecting to their heritage through a new Black renaissance — they are stepping back to take inventory of their lives and retooling how they live in many ways.

“The strong connection and/or reconnection to heritage being observed among African Americans suggest marketers need to pay specific attention to the individual cultures. Marketers need to re-examine how to re-engage with African American consumers and how to best support consumer empowerment,” said McGhee Williams Osse, Co-CEO of Burrell Communications.

Trust and Connection to Brands

According to the study, trust levels in government and institutions declined over the past year for African Americans, as feelings of discrimination remain high. Just over 80% of African Americans said they feel “more and more ignored by the U.S. government.” For Hispanics, trust issues differ between foreign-born and U.S.-born Hispanics. For example, 36% of foreign-born Hispanics versus 15% of U.S.-born Hispanics said that “more and more, I feel like this country does not want me here.”

Yet, despite the recent immigration debates and other stories that have influenced trust and comfort, both ethnic groups maintain high trust in brands, especially name brands:

— 58% of Hispanics and 55% of African American (versus 41% of Non-Hispanic Whites) say, “It is risky to buy a brand you are not familiar with.”

— When asked the likelihood of doing the following activities if your family suddenly found itself with less money: Only 42% of African Americans and 40% of Hispanics (versus 62% of Non-Hispanic Whites) say they would “buy private label and generic brands.”

“Marketers must find and reach out to African American and Hispanic consumers at a time and place where they are willing to receive a brand’s message,” said Suarez-Hammond. “Understanding the sources of influencers, the communication preferences and the media perceptions of the ethnic consumer is crucial to successful behavior change.”

Family and Community Come First

Also more so now than at any other time in the past, Hispanic and African American consumers place significant importance on family for decision-making purposes and support.

According to the study, both Hispanics and African Americans seek their nuclear and extended families’ advice, guidance and support in most matters. In fact, nearly half of all Hispanics and African Americans said that “when it comes to important things in my life, I almost always seek the opinion of my extended family members,” compared to 33% of Non-Hispanic Whites. Almost two-thirds (60%) of Hispanics (compared to 45% of African Americans and 48% of Non-Hispanics Whites) say, “In my family, we discuss everyday things together before making a decision.”

“U.S. Hispanics strongly gravitate towards their family and social networks. Their identity is defined by the group. Still, we find that they also strive for a sense of individuality. It appears that for Hispanics, the social group defines individuality,” said Dr. Korzenny.

Nearly half of African Americans (42%) and 35% of Hispanics say, “I believe my children will take care of me when I am older, so I don’t need to worry about having enough savings and investments to support myself in that stage of my life,” compared to just 21% of Non-Hispanics Whites.

However, African Americans and Hispanics display varying dynamics with respect to extended family member interactions, community orientation and spiritual beliefs. For example, collectivism is expressed differently by the various groups:

— Collectivism is mostly about family dynamics for the Hispanic population–it is about putting the good of the family before the needs of the individual.

— For African Americans collectivism is more community and neighborhood oriented.

— For Non-Hispanic Whites it is about like-minded people banding together to reach a specific goal–but once the goal is met, the collective ends. Collectivism in this context is more issue-based and episodic in nature.