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HISPANIC CROSS CHANNEL SHOPPER CLOSE-UP STUDY

Meyers Research Center’s New Syndicated Research Program

According to the U.S. Census Bureau, the Hispanic population represents 16% of total U.S. population and increased by 15.2 million between 2000 and 2010, accounting for over ½ of the 27.3 million increase in the total population of the United States.  Between 2000 and 2010, the Hispanic population grew by 43%, which was four times the growth in the total population at 10%.  By 2050, it is estimated that Hispanics will account for 29% of the population of the United States.

Retailers and marketers have been reacting to the opportunities presented by this growing target audience (implementing Hispanic shopper-marketing programs, expanding the availability of Hispanic brands/brands from shopper’s home country, establishing retail outlets to cater to the needs of this segment).  However, there remains a scarcity of information to help retailers and marketers understand the Hispanic shopper.

To this end, Meyers Research Center (MRC) launched the first wave of the Hispanic Shopper Close-Up Study at the end of last year.  This research provided valuable shopper insights into Hispanic consumers’ shopping behaviors, attitudes and decision-making patterns across 8 key retail outlets including Supermarkets, Hispanic Supermarkets, Mass Merchandisers, Warehouse Clubs, Drug Stores, Dollar Stores, Convenience Stores and Bodegas.

Highlights: General Shopping Behaviors

Where do they shop (shopped by half or more respondents)

  • Acculturated/Bicultural:  Mass Merchandisers, Supermarket, Drug store
  • Unacculturated:  Mass Merchandisers, Dollar Stores, Drug Stores, Hispanic Supermarkets
  • Non-Hispanics:  Mass Merchandisers, Supermarkets, Drug Stores

Shopping Frequency (# Of Channels Shopped Once a Week or More Often)

  • Acculturated Hispanics report fewer channels shopped vs. lesser acculturated Hispanics

Changes in Shopper Frequency Past 12 months

  • Hispanics report net increases over the past year in frequency of shopping most channels including: supermarkets, Hispanic supermarkets, mass merchandisers, dollar stores, c-stores and bodegas.  However, a net decrease has been reported for warehouse clubs and there has been no change in frequency of shopping in drug stores.

Highlights: Characteristics of a Recent Visit 

Key Store Selection Criteria

  • Hispanic shoppers choose a store primarily based on convenient location.  EDLP is more critical to acculturated Hispanics vs. other Hispanic segments.  No real differences identified for Hispanics vs. Non-Hispanics.

Planning the Store Visit

  • Planning is a key characteristic of Hispanic shopping behavior, with higher levels taking place for warehouse club and supermarket visits.  Across all channels, c-store and bodega visits are somewhat more spur of the moment.
  • Planning the store visit typically includes making a shopping list.  Other pre-store visit preparations include, clipping coupons and checking the store circular.

Most Common Trip Type

  • Across all channels, most shopping trips are routine stock up (particularly warehouse clubs) or quick trips to pick up a few essentials (particularly dollar stores).

Differences in Total Ring

  • Hispanic shoppers spend the most per visit in warehouse clubs ($145 on average), followed by mass merchandisers ($91 on average).  Transactions in c-stores, dollar stores and drug stores are smallest (roughly $25 to $30).
    • Unacculturated Hispanics typically spend the most each shopping trip but shop less frequently. Acculturated Hispanics spend the least each shopping trip but shop more frequently.

Means of Payment

  • Debit/Credit cards are most often by more acculturated Hispanics.  Unacculturated Hispanics are likely to use cash.

Lowering Prices at Checkout

  • Acculturated and Bi-Cultural Hispanics are highly engaged with store loyalty programs.
  • Coupons are most used by Bi-Cultural Hispanics and less by Unacculturated Hispanics.

Highlights: Product Purchase Decisions 

Level of Store Brand and Hispanic Brand Purchasing

  • Store brand purchasing is quite high across all channels and more common among acculturated Hispanics.
  • Hispanics will switch to a store brand if the name brand is not available and there is no perceived difference in quality.  This mostly occurs for food, snacks, beverages and household items.
  • Purchase of Hispanic brands and/or brands from the shopper’s home country occurs most with Bi-Cultural and Unacculturated Hispanics.

Level of Awareness for In-Store Promotions/Special Merchandising

  • Hispanic shoppers are highly aware of in-store activities for products purchased.  Greater recall is noticed among Bi-Cultural and Unacculturated Hispanics.

Impulse Purchasing

  • Hispanics show high impulse purchasing across all channels.  This is especially apparent among unacculturated Hispanic shoppers.
    • Price/promotion is a common trigger of impulse purchasing among Bi-Cultural and Unacculturated Hispanic shoppers.  Overall, price/promotion is revealed as a common trigger by most Hispanics compared to non-Hispanics.
    • Unacculturated Hispanic shoppers mention, just seeing a product in the store will trigger a specific need (for self, friend or family member) and ultimately the impulse to buy.

For More Information About This Study or To Purchase a General Comprehensive Report, Contact:

George E. Brown II

GBrown@meyersresearch.com

Jeff Friedlaender

JFriedlaender@meyersresearch.com

Frances Glick

FGlick@meyersresearch.com  

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