How Identity Affects Hispanic Marketing.
September 13, 2005
How Hispanics identify themselves, use reference groups, and perceive labels have many implications in marketing. Why is it important that you as a marketer understand these? The relationship between them has an impact on Hispanic consumer behavior and purchasing decisions.
According to the Hispanic Market Handbook, most of the business community prefers to use the label “Hispanic” to identify the Spanish-speaking segment of the U.S. market. However, some say the newer term “Latino” may someday replace “Hispanic.” Some find the word “Hispanic” very offensive. People like Sandra Cisneros, blame the use of the term on the government, specifically the Reagan administration. She believes that this label groups Spanish-speaking people all into one group, therefore erasing their individual cultures.
Hispanic is defined as the term that is “often used to refer collectively to all Spanish-speakers. It specifically connotates a lineage or cultural heritage related to Spain.” Latino is defined as the term “used to refer to people originating from, or having a heritage related to, Latin America, in recognition of the fact that this set of people is actually a superset of many nationalities.” Some identify more with the Latino/Latina label as was found by focus groups conducted by Latina magazine. It is important to note that these labels do not apply to many groups of Spanish speaking people including the millions of Native Americans who inhabit the region. Therefore, many Hispanics find that they do not identify with either of these labels. It has been found that Hispanics prefer to be called by a more descriptive label of their cultural heritage than “Hispanic.” A recent study called Latino Voices, found that Hispanics overwhelmingly preferred to identify themselves by their country of origin, such as Guatemalan.
So why is this so important to marketers? Some Hispanics are offended by the terms Hispanic and Latino. So, when marketing to them it is important to be careful with these terms. However, more vital than focusing on a label for your target market is focusing how your target market identifies themselves. Because how you try to reach your target market will ultimately affect the behavior of the market towards your company, brand or product.
According to Hispanic Marketing-A Cultural Perspective, “humans, as social beings, generally identify with groups they belong to, and sometimes groups they do not belong to.” So, how does this effect Hispanic consumer behavior? It is first important to note that an individual does not hold the same cultural identity or relate to the same reference or aspirational group for every decision or activity. For example, when a Colombian woman wants advice on the best way to prepare her favorite Colombian dish, she probably would go to her Colombian-born mother who has been cooking this dish for years. However, if she wants advice on the latest fashions to wear to work, she may prefer to go to her coworkers whose style and careers she admires. So, when trying to decode the consumer behavior of Hispanics, it is important to note that individuals look to different reference or aspirational groups for advice with each different product category.
Jim Forrest, PhD of Synovate defines acculturation as “the process by which a person learns or accommodates to a new culture.” This occurs in a three step process including observing, reacting and adjusting to the new culture. The level of acculturation a person has attained greatly influences their choice of reference groups. For example, a Colombian just moving to the United States would affiliate himself more with other Colombians and not so much with other U.S. cultural groups. This as association is based on similarity or homophily. This explains why Hispanics often associate themselves and feel more comfortable with other Hispanics. However, a U.S. born teenager who is Hispanic would be more likely to look to classmates and other peers who are not necessarily Colombian to affiliate himself with. However, it depends on what advice this teen is looking for. He would most likely go to his parents when deciding which car insurance to buy, but look to his friends for music preferences. As you can see, this group affiliation will in turn affect how the person sees products and brands in the marketplace and ultimately what they buy.
The social learning of an individual is based on the people they admire. Thus, Hispanics just coming to the country wanting to pursue the “American dream,” will emulate the behavior and attitudes of people they believe have reached that goal. This is what is called an aspirational or success group. These two influences usually mix to form a large part of the consumer behavior of Hispanics. For example, a Hispanic man may see the CEO of his company drive a BMW and in turn want to buy one. However, the features he gets on the vehicle or the financing advice may come from someone in his Hispanic reference group.
It is important not to get so caught up in labels that you forget how the Hispanic market you are targeting identifies themselves. Also, finding the reference groups your market identifies with is essential. Remember that people are influenced both by association (homophily) and success models. Finding the mix your target market identifies with is the key to decoding your target market’s consumer behavior mannerisms and purchasing behaviors.
By Angela Henry
Master’s Candidate, Integrated Marketing Communications
Florida State University
Student in the Hispanic Marketing Communication Program at Florida State University
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