State of Business Magazine, Spring 2007, Ethics in the Balance
  vol. XIX no. 1

Spring 2007 contents
Dean's Letter
Rajeev Reports
Media watch
In Brief
To The Point
State of Business 
				    Information








The Latinization of America

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Despite these general similarities, Donthu says that too many companies make the mistake of treating Hispanic consumers as a monolith when in actuality all Hispanics are not necessarily the same. “First, their attitudes and behavior differ based on their country of origin – Mexicans are very different from Cubans; Puerto Ricans are very different from Brazilians.” Another distinguishing characteristic is the degree to which they identify with their Latin roots. According to Donthu, how strongly they identify with their Latin heritage can influence their buying patterns.

“Those who identify more strongly with their roots tend to be more brand loyal, as external perceptions are very important to them,” said Donthu. Those same external concerns translate to coupon usage. “They don’t like to use coupons because it’s seen as a handout, and they are very proud and want the world to know that they can stand on their own.” However, Hispanics who have a weaker ethnic identification see nothing wrong with using coupons. “They are much more assimilated,” said Donthu. “Their attitudes and behaviors are more closely aligned with typical Anglo consumers.”

Interestingly, Donthu says that there is a generational boomerang effect, where first- and third-generation Hispanics tend to identify strongly with their ethnicity, while second-generation Hispanics have a weaker ethnic identification.

This is particularly important for advertisers who are most interested in the coveted 18–34-year-old demographic and the group credited with driving what has been dubbed the “Latinization of America.” Ugly Betty is just one example of the influence this group has cast on America’s mainstream. And according to Donthu, if the Hispanics continue to make strides and increase their consumer buying power, advertisers will continue to target this growing market.

“Things are changing in the U.S.,” said Donthu. “What once was a big melting pot of people from different backgrounds looking to assimilate, to form one face of America, has now become more of a salad bowl where different ingredients or people from different backgrounds come together to make one salad, yet each retains their own characteristics.”

Naveen Donthu specializes in marketing research methodology and models, comparative and outdoor advertising, brand equity, Hispanic consumer research, cross-cultural issues, customer satisfaction research, and e-consumer behavior. He has published more than 50 articles in journals and has consulted for many national and international companies. His professional affiliations include American Marketing Association and Institute for Operations Research and Management Sciences.

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