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NSHP Survey Reveals Hispanic Professionals Shopping Styles

According to a NSHP online survey conducted during the Summer of 2007, the majority of Hispanic professionals tend to care about the relationship between price and quality when they go shopping. In terms of demographic characteristics, 61% of our respondents live in the South or West and almost 90% of respondents are under 50 years old. As expected, over 60% of the Hispanic professionals who answered our survey have an income of $45,000 or higher and are homeowners.

Market researchers classify consumers and create market segments by identifying four key areas: Shopping motivation, criteria, patterns and purchase behavior. According to research reports, Hispanics often go shopping because of their need to make a purchase rather than fulfill a social void. Studies also claim that Hispanic consumers choose where to shop based on the quality and the variety of merchandise, that is, stores they can relate to and carry the brands that they know. Experts have also noted that Hispanics are more likely to plan their purchases and shop with others rather than individually.

With the rise of the Hispanic middle class and the overall growth in population and buying power, those interested in reaching this profitable group of consumers would fail to do so under current strategies. In fact, Mulhern and Williams, professors at Penn State University, state that "retailers should not assume that descriptions of shopping behavior from individual self-reports translate into aggregate purchasing patterns in retail market areas."

This statement rings truth when comparing the results of a survey with a diverse group such as Hispanics whose shopping preferences undoubtedly vary across income, national origin, language preferences, family size, and region of the country. For these reasons, our survey sought to attain more information about a specific segment of the Hispanic population. In turn, our results should be interpreted with caution as they mostly pertain to Hispanic professionals who are in their prime age, have a medium to high income, and are homeowners.

So why do Hispanic professionals care about relationship between price and quality?

As one young Latina from the Midwest responded, "many times you get what you pay for." Whether this implies questionable discounted merchandise or the notion that if it is expensive, it must be good, she continues with, "I’m always looking out for sale prices and discount coupons on good quality items."

It seems Hispanic consumers rather not sacrifice quality for price. Another respondent from the South said, "I always search for quality and price never one or the other, especially when purchasing large items like washer, dryer, computer, printers, etc."

Besides the relationship between price and quality, almost a third of the respondents to our survey claimed that comparing prices in different establishments is an important factor when making a purchase. If we consider only this particular group, some interesting demographic patterns emerge.

Language Matters

Hispanic professionals who mostly speak Spanish at home are more likely to care about the relationship between price and quality, while those who are bilingual tend to compare prices between establishments. Significant differences in shopping behavior disappear among survey respondents who mostly speak English at home.

If we look at language of preference as a weak indicator of generational status we might be able to explain these differences. We can infer that those who are first generation and mostly speak Spanish are more likely to shop at Hispanic stores, and less like to compare different retailers. Bilingual respondents on the other hand are probably venturing beyond the Hispanic business district, and are more comparative in their shopping.

A first-generation, 54 year-old Latina gives us a good example of this life-course perspective. “When I was young, and had just started working, I could not have my fill of clothes, shoes, jewelry, all about me. Once, I got married, my priorities changed from me to the household purchases.”

When asked why the relationship between price and quality is so important to her, she replied, "I like to get my money’s worth." However, at this point in her life, she tends to be more careful in her shopping. She reveals, "I usually stop and ask myself these couple of questions, ‘Do I need it?’ and the second question: ‘How many hours of work do I have to invest to purchase the item?’ Having the answers to those questions, usually determines if I buy it or not."

Location, Location, Location

Besides language preference, there were some marked regional differences among survey results. Hispanic professionals from the South and West tend to pay attention to price and quality when they go shopping, while those in the Northeast and Midwest are more concerned about comparing different localities. In fact, statistical analyzes revealed that region was the only significant predictor of shopping behavior unlike age, income, or homeownership status. This was not surprising since income and age varied with region.

As discussed, Hispanic professionals make their purchase decisions by carefully observing the relationship between price and quality. This process varies by language of preference and place of residence. Besides observing how Hispanic professionals make choices, retailers should also make note of how Hispanic professionals describe themselves as consumers and what products they are more likely to purchase. That will be the subject of our next installment.

By Roger Knight for NSHP.org
Research Analyst
Institute for Latino Studies at University of Notre Dame
Based on NSHP Survey about Hispanic Spending Habits

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With 25,000+ members, the National Society for Hispanic Professionals is the top US networking association for Hispanic professionals. It's free to join and this is a great place for you to connect with new people who share your interests, BUT it's not for selling or promoting your business. Join us today and ask here if in doubt about our policy.

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With 25,000+ members, the National Society for Hispanic Professionals is the top US networking association for Hispanic professionals.



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