Cambridge, Mass., January 23, 2006 - To understand the technology purchase decisions of the largest and one of the fastest-growing ethnic groups in the US, Forrester Research, Inc. (Nasdaq: FORR) reveals three essential factors that influence how the Hispanic-American market buys and uses technology. Based on its first survey of 3,000 US Hispanic households, Forrester found that Hispanics embrace technology but prefer portable communication and music devices over PCs, home theaters, and video game systems. While fewer Hispanics are online compared to non-Hispanics, those who do go online are more likely than other groups to engage in entertainment activities like listening to Internet radio or downloading music and movies.
Based on the survey results, Forrester concluded that the Hispanic-American market — with $575 billion dollars in spending power — is more likely to consider buying technology that is culturally relevant, accommodates both Spanish and English, and is affordable.
"Given these preferences and behaviors among Hispanic Americans, companies would be smart to consider a three-pronged approach to tap into to this sizable market," said Tamara Barber, researcher, Forrester Research. "Ideally, technology marketers, retailers, and manufacturers will fine-tune their marketing messages, cater to language differences, and when appropriate, offer low-price alternatives. All three recommendations should be employed to successfully engage the Hispanic customer." For example, businesses should:
* Reach out to the Hispanic market with messages that resonate with their culture, such as the importance of family or the enjoyment of Latin artists in movies, music, and other media.
* Accommodate Hispanics who cite Spanish as their primary language by providing Web sites, salespeople, signage, and instructions in Spanish.
* Focus on products that attract the cost-conscious Hispanic consumer, such as generic versions of big-ticket items and entry-level products.
In other findings, Forrester's data clearly defines the difference in online behavior between Hispanic Americans and other groups:
* Forty-one percent of Hispanics visit music sites, versus 18 percent of non-Hispanics.
* Sixty-one percent of Hispanics use email compared with 97 percent of non-Hispanics.
* Twenty-three percent of Hispanics said they watch Internet video, versus only 17 percent of other American consumers.
More details on Hispanic-American technology adoption patterns can be found in the Forrester report "Three Keys To Unlock The Hispanic Market," which is available to WholeView 2™ clients and can be found at www.forrester.com.
Begun in fall 2005, the Hispanic-American Technology Adoption Study will conduct three surveys annually of 3,000 Hispanic Americans per study for a total of 9,000 completed surveys each year. The study, conducted in Spanish or English according to each respondent's preference, focuses on how Hispanic consumers consider, buy, and use technology and technology-enabled services from online banking and shopping to device ownership and TV and gaming activities. The Hispanic-American Technology Adoption Study is the latest addition to Forrester's Consumer Technology Adoption Studies, which cover consumers who represent nearly 70 percent of the world's GDP. For more information, visit www.forrester.com.
Forrester Research (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice about technology's impact on business and consumers. For 22 years, Forrester has been a thought leader and trusted advisor, helping global clients lead in their markets through its research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.
Source: Forrester Research