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Hispanics and Brand Loyalty - US - December 2015

Published By :

Mintel

Published Date : Dec 2015

Category :

Lifestyle

No. of Pages : N/A

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.

Table of Content

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
Hispanics value functional aspects in brands
Figure 2: Brand loyalty association, October 2015
Meeting expectations is key
Figure 3: Brand loyalty drivers, October 2015
Brand loyalty breakers
Figure 4: Switching triggers, October 2015
The opportunities
If life gives you lemons, make lemonade
Knowing me, knowing you
Figure 5: Hispanics’ perception of brand names – Well-known vs less-known, October 2015
Finding partners in Hispanic consumers
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%)
Characteristics
Opportunities
Figure 8: Profile of Hispanic Gained Loyalists, October 2015
Traditional Loyalists (20%)
Characteristics
Opportunities
Figure 9: Profile of Hispanic Traditional Loyalists, October 2015
Value Consumers (15%)
Characteristics
Opportunities
Figure 10: Profile of Hispanic Value Consumers, October 2015
Occasional Consumers (16%)
Characteristics
Opportunities
Figure 11: Profile of Hispanic Occasional Consumers, October 2015
Distrustful Consumers (16%)
Characteristics
Opportunities
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

Category Studies in What’s Working

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 – What You Need to Know

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
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
A note on acculturation

List of Table

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