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Hispanics and Brand Loyalty - US - December 2015

Hispanics and Brand Loyalty - US - December 2015

"The foundation for brand loyalty is very clear among Hispanics; it is based mainly on functional aspects of the brand such as quality as well as affordability, dependability, and trust. When targeting Hispanics, brands also need to be aware that brand loyalty can be fragile."

- Juan Ruiz, Director of Hispanic Insights

This report looks at the following areas:

Hispanics value functional aspects in brands
Meeting expectations is key
Brand loyalty breakers


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Half of Hispanics fall in brand loyal segments
Figure 1: Hispanic brand loyalty segments, October 2015
The issues
Figure 2: Brand loyalty association, October 2015
Figure 3: Brand loyalty drivers, October 2015
Figure 4: Switching triggers, October 2015
The opportunities
Figure 5: Hispanics’ perception of brand names – Well-known vs less-known, October 2015
Figure 6: Hispanics’ brand advocacy – Telling others, October 2015
What it means
THE MARKET
What you need to know
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
Brand loyalty segmentation
Figure 7: Hispanic brand loyalty segments, October 2015
Gained Loyalists (33%)
Figure 8: Profile of Hispanic Gained Loyalists, October 2015
Traditional Loyalists (20%)
Figure 9: Profile of Hispanic Traditional Loyalists, October 2015
Value Consumers (15%)
Figure 10: Profile of Hispanic Value Consumers, October 2015
Occasional Consumers (16%)
Figure 11: Profile of Hispanic Occasional Consumers, October 2015
Figure 12: Profile of Hispanic Distrustful Consumers, October 2015
Market factors
Improving labor market gives Hispanics the confidence to afford loyalty
Figure 13: Hispanic unemployment, January 2007-June 2015
Money issues can affect brand loyalty
Figure 14: Median household income for households headed by Hispanics, by age of householder, 2014
Hispanics live in larger households
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
Putting brand loyalty in the context of your category
Different challenges depending on where brand is
The market is poised to become more fragmented
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?
Current positioning defines some of the challenges brands face
What’s next?
An increasingly fragmented market
THE CONSUMER
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
Affordability, dependability, and trustworthiness feed quality perception
Figure 16: Brand loyalty association, October 2015
Household income influences the definition of quality
Figure 17: Brand loyalty association, by level of acculturation, October 2015
Looking beyond core factors
Figure 18: Brand loyalty association, by level of acculturation, October 2015
Brand loyalty drivers
Loyalty driven by satisfied expectations
Figure 19: Brand loyalty drivers, October 2015
Hispanic women are more pragmatic about loyalty
Figure 20: Brand loyalty drivers, by age and gender, October 2015
Unacculturated and bicultural Hispanics more open to look beyond the actual product
Figure 21: Brand loyalty drivers, by age and gender, October 2015
Switching triggers
It’s all about expectations
Figure 22: Switching triggers, October 2015
Older Hispanics less forgiving about changes in quality
Figure 23: Switching triggers, by gender and age, October 2015
Not every misstep is a mortal sin
Figure 24: Switching triggers, by Hispanic brand loyalty segments, October 2015
How brand loyal are hispanics?
Hispanics tend to know the brands they want
Figure 25: Share of brand loyalty – summary of means, October 2015
The importance of brand varies among Hispanic brand loyalty segments
Figure 26: Share of brand loyalty – Summary of means, by Hispanic brand loyalty segments, October 2015
Hispanics’ perception of brand names
Well-known brands don’t always mean better quality
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
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
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
Figure 30: Hispanics’ perception of brand names – Brand name vs price, October 2015
Financial constraints can trump brand loyalty
Figure 31: Hispanics’ perception of brand names – Brand name vs price, by household income, October 2015
Brand name is important for Hispanic Gained Loyalists
Figure 32: Hispanics’ perception of brand names – Brand name vs price, by Hispanic brand loyalty segments, October 2015
Trust is built over time
Figure 33: Hispanics’ brand trust – Older brands vs new brands, October 2015
New brands more trusted by less acculturated Hispanics
Figure 34: Hispanics’ brand trust – Older brands vs new brands, by level of acculturation, October 2015
Finding brands that hispanics like
Brand availability prompts Hispanics to shop at multiple stores
Figure 35: Hispanics’ attitudes toward brands – Brands and stores, October 2015
Higher household incomes allow Hispanics to shop for the brands they want
Figure 36: Hispanics’ attitudes toward brands – Brands and stores, by household income, October 2015
Hispanics know where to find the brands they want
Figure 37: Hispanics’ attitudes toward brands – Ease of finding brands, October 2015
Factors influencing brand selection
Hispanics underestimate the influence of their families on their purchases
Figure 38: Factors influencing brand selection – Family influence, October 2015
Larger families are more democratic
Figure 39: Factors influencing brand selection – Family influence, October 2015
Not all sales are created equal
Figure 40: Factors influencing brand selection – Sales, October 2015
Attitudes toward sales do not differ by household income
Figure 41: Factors influencing brand selection – Sales, by household income, October 2015
Coupons and promotions can move Hispanics to action
Figure 42: Factors influencing brand selection – Coupons and promotions, October 2015
Coupons and promotions more appealing to women
Figure 43: Factors influencing brand selection – Coupons and promotions, by gender and age, October 2015
Brand advocacy
Hispanics vocal about brands they like
Figure 44: Hispanics’ brand advocacy – Telling others, October 2015
More affluent Hispanics talk more
Figure 45: Hispanics’ brand advocacy – Telling others, by household income, October 2015
Hispanics as brand advocates
Figure 46: Hispanics’ brand advocacy – Buying brands for others, October 2015
Hispanics promote brands they like as an appreciation to others
Figure 47: Hispanics’ brand advocacy – Buying brands for other, by level of acculturation, October 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
A note on acculturation
RESEARCH METHODOLOGY
US Multicultural Methodology
Consumer research
Trade research
Statistical Forecasting

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