Mobile Phones and the Multicultural Consumer - US

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2010 - 69 Pages


Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Sources

Consumer survey data

Advertising

Abbreviations and terms

Abbreviations

SIM

SNCS

Terms

EXECUTIVE SUMMARY

Growth of minority spending power outpaces Whites

Lower incomes and poor credit history drive no-contract and prepaid plans

International calling is a strong driver for less acculturated segments

Black respondents more passionate about mobile technology

Black and Hispanic respondents spend more on monthly wireless bills

Black and Asian respondents keen on advanced phones and mobile internet

T-Mobile finds greater share among Spanish-dominant Hispanics

Spanish-language households are more price sensitive and less satisfied

African-American advertising is both aspirational and inspirational

Spanish-language advertising ranges from relatable to romantic

BACKGROUND FACTORS

Minority purchasing power is growing faster

African Americans

Asian Americans

Hispanics

Figure 1: Buying power, by race/Hispanic origin, 2000-14

Younger adult generations more ethnically diverse

Figure 2: U.S. population age groups, by race/Hispanic origin, 2004-14

Hispanics and Asians more likely to live in larger households

Figure 3: Average household size, by Hispanic origin/race of householder, 2001 and 2008

MULTICULTURAL DRIVERS

Prepaid and no-contract strategies target Blacks and Hispanics

International calling is a strong consideration for Hispanics and Asians

Prepaid calling cards

International calling through the carrier

Internet-based services

Figure 4: International calling on a cell phone, by race/Hispanic origin, November-December 2009

Multicultural differences go beyond age correlations

White respondents more likely to remain with current provider

Black and Asian respondents more likely to embrace advanced mobile services

Black respondents integrate cell phone in their lives to a greater degree

Figure 5: General attitudes toward cell phones, by age and race/Hispanic origin, November 2008-June 2009

CELL PHONE OWNERSHIP

Racial/Hispanic origin differences driven by household income and culture

Figure 6: Cell phone ownership and types of service plans, by race/Hispanic origin, November 2008-June 2009

Prepaid and no-contract plans more popular among Blacks and Hispanics regardless of income

Figure 7: Cell phone ownership and types of service plans, by race/Hispanic origin and household income, November 2008-June 2009

Figure 8: Cell phone ownership and types of service plans, by race/Hispanic origin and household income, November 2008-June 2009

WIRELESS CARRIER BRANDS

Carrier rankings reflect importance of no-contract and targeted marketing for multicultural respondents

Figure 9: Popularity of wireless carriers, by race/Hispanic origin, November 2008-June 2009

CELL PHONE SPENDING AND LOYALTY

Black and Hispanic respondents show higher willingness to spend but lower carrier loyalty

Figure 10: Average cell phone spending and time with carrier, by race/Hispanic origin, November 2008-June 2009

ADVANCED CELL PHONE FEATURES

Blacks and Asians more likely to use advanced features

Asians and Hispanics look for ways to call internationally

Figure 11: Usage of advanced cell phone features, by race/Hispanic origin, November-December 2009

Higher usage by Black respondents seen among older respondents as well

Figure 12: Usage of advanced cell phone features, by race/Hispanic origin and age, November-December 2009

MOBILE INTERNET BROWSING

Asian respondents may be earlier adopters of newer features

Figure 13: Uses of the internet via cell phone, by race/Hispanic origin, November-December 2009

Black and Hispanic respondents are more willing to pay for mobile internet

Figure 14: Attitudes toward internet browsing via cell phone, by race/Hispanic origin, November-December 2009

Minority women more likely to check email and compare prices with their phones

Figure 15: Attitudes toward internet browsing via cell phone, by race/Hispanic origin and gender, November- December 2009

Figure 16: Uses of the internet via cell phone, by race/Hispanic origin and gender, November-December 2009

ATTITUDES TOWARD CELL PHONES

Black and Asian respondents more likely to want bigger screens

Figure 17: Attitudes toward cell phones, by race/Hispanic origin, November-December 2009

Black and Asian respondents more likely to cite advanced handset functions as important

Figure 18: Importance of cell phone characteristics, by race/Hispanic origin, November-December 2009

ATTITUDES TOWARD WIRELESS CARRIERS

Black and Asian respondents are more willing to switch for the right phone

Figure 19: Attitudes toward wireless carriers, by race/Hispanic origin, November-December 2009

Black and Asian respondents more concerned with internet speed

Figure 20: Importance of wireless carrier characteristics, by race/Hispanic origin, November-December 2009

SPANISH-LANGUAGE HOUSEHOLDS

Spanish-leaning respondents less likely to own cell phones and contract plans

Figure 21: Cell phone ownership and types of service plans among Hispanics, by language spoken in the home,

November 2008-June 2009

T-Mobile leads among Spanish-leaning Hispanics

Figure 22: Cell phone ownership and types of service plans among Hispanics, by language spoken in the home,

November 2008-June 2009

International calling with prepaid card is critical feature for Spanish-speaking respondents

Figure 23: Usage of advanced cell phone features, by language spoken in the home, November-December 2009

Spanish-only respondents get worst reception at home

Figure 24: Attitudes toward wireless carriers, by language spoken in the home, November-December 2009

Spanish-only respondents are least likely to be happy with their phone

Figure 25: Attitudes toward cell phones, by language spoken in the home, November-December 2009

HISPANIC TELEVISION ADVERTISING

T-Mobile leads among Spanish-dominant Hispanics despite lower advertising spending

Figure 26: Advertising expenditure of major wireless carriers in Hispanic media, 2008

T-Mobile’s leading share comes from relatable marketing

Figure 27: T-Mobile: Hispanic Employee Comes Home (Spanish language), July 2009

Figure 28: T-Mobile: Preparing for Dubai (Spanish language), March 2009

Sprint ads target different Hispanic segments with primary service and Boost prepaid

Figure 29: Sprint—Three Smartphones (Spanish language), November 2009

Figure 30: Boost Mobile—No Abuse (Spanish language), August 2009

U.S. Cellular runs inspiration ads in Spanish

Figure 31: U.S. Cellular—Texting in the City (Spanish language), October 2009

AFRICAN-AMERICAN TELEVISION ADVERTISING

Black consumers targeted with music and aspirational messaging

Figure 32: Boost Mobile—Where You At, November 2007

Minority spokespersons carry both broad and specific appeal

U.S. MULTICULTURAL POPULATION

Key points

U.S. POPULATION BY RACE/HISPANIC ORIGIN

Figure 33: Population, by race/Hispanic origin, 1970-2020

Figure 34: Asian, Black, and Hispanic populations, 1970-2020

Figure 35: Population, by race and Hispanic origin, 2004-14

U.S. POPULATION BY AGE AND RACE/HISPANIC ORIGIN

Figure 36: Total U.S. population, by age, 2004-14

Hispanic population by age

Figure 37: U.S. Hispanic population, by age, 2004-14

Black population by age

Figure 38: U.S., Black population, by age, 2004-14

Asian population by age

Figure 39: U.S. Asian population, by age, 2004-14

GEOGRAPHIC DISTRIBUTION

Hispanic geographic concentration

Figure 40: Graph: Hispanic population, by region, 2007

Figure 41: Hispanic population in top five states, by country of origin, 2006

States with greatest Hispanic population growth

Figure 42: Hispanic population, states with greatest percentage increase, 2000-06

African American geographic concentration

Figure 43: Black geographic concentration, by region, 2007

Black population by state

Figure 44: States with largest Black population, 2008

Figure 45: States with the highest share of Black residents, 2008

Asian geographic concentration

Figure 46: Asian geographic concentration, by region, 2008

Asian population by state

Figure 47: Top 10 states, by total Asian population and percentage of state total population, 2008

APPENDIX: OTHER USEFUL CONSUMER TABLES

Mobile handset brands

Figure 48: Cell phone brands, by race/Hispanic origin, November 2008-June 2009

Advanced cell phone features

Figure 49: Lack of interest in advanced cell phone features, by race/Hispanic origin, November-December 2009. 53

Attitudes toward wireless carriers

Figure 50: Attitudes toward wireless carriers, by race/Hispanic origin and gender, November-December 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

Effective marketing to multicultural consumers requires more specific targeting beyond simple racial or ethnic classifications. Broad racial/Hispanic origin demographics can be divided into sub-segments, based on factors such as household income and level of acculturation (e.g. primary language). Understanding the habits and needs of each sub-segment can lead to a higher level of connection with multicultural consumers and help avoid unforeseen alienation of potential customers with undesirable stereotypes.

The African-American demographic spends more on average on wireless services and shows higher enthusiasm for advanced mobile features. However, spending habits and preferences may vary with income level and age.

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