Nielsen Releases Data on Hispanic Consumers’ Shopping Behavior

September 25, 2007

This article is included in these additional categories:

Retail & E-Commerce | Telecom | Television

On the occasion of National Hispanic Heritage Month, The Nielsen Company released data regarding the the shopping behavior of Hispanic consumers, whose collective buying power totals nearly $1 trillion, it said.

As Hispanics become more acculturated (as measured by language preference), there is less evidence of brand loyalty, according to Nielsen Homescan research across multiple product categories. For example:

  • In the case of select brand/flavors of carbonated soft drinks, 33 percent of English-only/preferred Hispanics met their needs with a particular cola.
  • Nearly 70 percent of Spanish-preferred homes fulfilled their carbonated beverage requirements with the identical brand.
  • Similar trends were noted for other categories, such as laundry detergent, cereal, toothpaste and beer.

“When it comes to brand loyalty and the Hispanic consumer, the key learning for marketers is understanding the importance of building a brand relationship during the initial stages of acculturation and maintaining this connection as Hispanics’ integration to American life increases,” said Tim Kregor, president, Nielsen Consumer Panel Services.

Other insights imparted by Nielsen’s research:

  • Nielsen finds there is a preference among Hispanics to shop at stores that resonate with the sights, sounds, smells and sensibilities of their homeland – and retailers would benefit byt stocking items with bilingual packaging, hiring bilingual employees, posting bilingual signage and distributing bilingual coupons.
  • For Hispanic consumers, shopping can be a family affair, an outing for all ages, from grandparents to children – and retailers would benefit from creating a family-friendly atmosphere.
  • Many Hispanics make a concerted effort to keep in touch with those living in their homelands:
    • Hispanics of all language preference are heavy users of phone service – 95% more likely than the average consumer to have spent $100 on long distance, according to Nielsen’s Scarborough Research.
    • They are also 18% more likely to have rung up a cell phone bill of $150 or more during the previous month.
    • Searching for a more favorable deal, Hispanic consumers are more likely to plan on switching cellular providers during the next year, and 11% more likely to use a prepaid cellular plan.
  • Roughly 25% of Hispanic internet users purchased airline tickets, books and clothing/accessories online in the past year, with 6% spending more than $2,500 online during that time, according to Scarborough Research.
  • Between 2000 and 2007, the number of Hispanic TV households expanded by one-third, from 8.7 million to 11.6 million, Nielsen Media Research estimates.
  • All demographic groups decreased slightly for Hispanics between 2000 and 2007, except adults ages 18 and up, which increased slightly.
  • While cable and pay cable gained popularity among Hispanic viewers between 2000 and 2007, VCR ownership slipped.
  • TV usage habits parallel that of the average US household, with Hispanic homes tuning in 58 hours and 39 seconds per week, slightly more than the 57 hours and 39 seconds of the composite finding.
  • Hispanics scored lower on viewing per TV households as well, for every measure except children ages 2-11, who watched a mere one minute more than the composite result per week.

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