© Synovate 2011

Synovate Diversity:

Every 30 seconds, a Latino turns 18 in

America…….

• June 10th, 2011

• Presenter:

– Jane Edwards-Hall

© Synovate 2011

• Why we need to pay attention

• Insights – Media

Consumption

• Insights – Shopper Behavior

• What to consider when

conducting Diversity research

• Diversity and Customer

Experience Management

What will be covered today?

© Synovate 2011

Diversity

Populations:

Why we Need to

Pay Attention

© Synovate 2011

• Largest multicultural group with 50.5

million. That is larger than the

population of Canada (33.9 million)

• The Hispanic market is growing. Just

since 2000, we have seen this

population grow by 43%, now

representing almost 16.3% of the total

U.S. population

• The Hispanic market is varied

– New immigrants as well as multi-

generational families

– Different levels of Spanish-language

usage

– Mix of 22 different countries of

Hispanic heritage

The U.S. Hispanic Market –

Latest Data

© Synovate 2011

• But that‟s not all

• Hispanics, African-Americans, and

Asian-Americans are projected to

represent at least 55% of the total

U.S. population in 2050.

This combined group is

projected to grow to

approximately 40% in the next

nine years.

© Synovate 2011

2010 Census results show Hispanic growth

exceeded projections across the U.S.

• Over half of the Hispanic population in the United States

reside in just three states: California, Texas, and Florida.

• The Hispanic population grew more dramatically than

expected in states with smaller and newer immigrant

populations in the past decade:

– Hispanics contributed 72% of all minority growth in Illinois.

– Hispanics are growing eight times faster than non-Hispanics(63.5%

vs. 7.5%) in Oregon and accounted for 43% of overall growth in the

state.

– In Oklahoma, Hispanics accounted for nearly 51% of the overall state

population growth.

Source: U.S. Census Bureau

© Synovate 2011

• Number of U.S. born Hispanics is

growing, out pacing immigration

• More youths are entering the

consumer market

.”..This is not your abuela's Latino

community of two decades ago. A

new generation has emerged, with

a new Latino DNA, and marketers

who fail to decode it will struggle to

survive." - Geoscape American Marketscape DataStream

Series 2011

But most importantly…the

Hispanic market is changing

© Synovate 2011

What‟s Really Driving the Population

Growth?

OMG, r u

serious?! :)

© Synovate 2011

Kids/Youth Are Contributing To The Overall

Growth Of Multicultural Populations

Asian-Americans are

a bit older, but still young

• 26% of Asian-Americans are

under 18 years of age

• Median age of Asian-

Americans is 33 years

African-Americans

are also young

• 31% are under the age of

18

• Median age of African-

Americans is 30 years

Hispanics are

the youngest group

• Median age of Hispanics is

only 27 years

• 34% of Hispanics are under

the age of 18

vs. 25% of Total Population under 18 (Median Age is 36 Years)

© Synovate 2011

There's a good chance America will eventually

look like San Antonio

• “Demographically, this Texas city is a glimpse into the American future — a

majority Latino community, where English is the language of choice.

• Like Latinos across the United States, San Antonio's Latinos are trying to

figure out their place in mainstream American life.” - NPR, December 12, 2010

Julian Castro, mayor of San

Antonio is young, photogenic,

well-educated, and barely

speaks Spanish.

© Synovate 2011

Diversity: Media

Insights

© Synovate 2011

Media Usage by Ethnicity

Source: Synovate 2010 U.S. Diversity Markets Report

Percent Consuming Media by Race/Ethnic Group – Adults (18+)

© Synovate 2011

Hispanic Media Usage by Language Spoken

at Home

Percent Consuming Media – Adults (18+)

Note: Spanish-dominant: Speak Spanish only or mostly at home; Bilingual: Speak Spanish and English equally

at home; English-dominant: Speak English only or mostly at home

Source: Synovate 2010 U.S. Diversity Markets Report

© Synovate 2011

Hispanics – Language in Which Media is

Consumed

Percent Consuming Media Type by Language – Hispanic Adults (18+)

Source: Synovate 2010 U.S. Diversity Markets Report

© Synovate 2011

Diversity:

Shopper

Insights

© Synovate 2011

Shopper Behavior Year-on-Year

© Synovate 2011

Most Recent Shopping Trip

© Synovate 2011

Hispanic Shopping Styles

Hispanic shoppers are less likely to be fully

focused on brand regardless of price

considerations (Preference Planners). Hispanic

shoppers are more price and promotion

conscious than General Market shoppers in four

categories: Condiments (137 index),

Dishwashing Liquid (125), Pet Food (136), and

Toothpaste (148). When shopping for 10 of the

12 categories (the exceptions being

Condiments and Laundry Detergent), Hispanic

shoppers may be open to influences at the

shelf, as the proportion of shoppers classified

as Explorers is significantly above the General

Market results.

While this Synovate study covered

CPGs, we could assume that the same

would be true in shopping for high-ticket

items

Source: Synovate Diversity Shopper Insights report 2010

© Synovate 2011

Diversity: Why is

a Different

Approach to CE

Management

Important?

© Synovate 2011

Why Is This Important?

In a down or stagnant economy customer experience

is crucial for current and future business success. This

is particularly true for the Hispanic consumer who

cherishes personal contact and general customer

experience. Customer experience has a high

correlation with brand loyalty. Hispanics, particularly

Spanish-dominant Hispanics over-index in brand

loyalty.

Portada Magazine, April 2010

Spanish-speaking

consumers would buy

significantly more

products/services from

companies that make it

easy to communicate in

Spanish.

Language Line Services

While many firms on our list may say they value

the Hispanic market, most fail to provide good

customer experience. Amazon.com, and Barnes

& Noble are the exceptions, with the highest

CxPi scores; financial services firms have the

lowest scores.

Forrester CxPi 2010

© Synovate 2011

And, More Importantly, Synovate‟s Point of

View ……

With an increasing need to build CE

programs that deliver sales and profit

back to the business, there is an

increasing need to distinguish between

just “claimed loyalty” and true drivers

of choice that make a difference.

We know that drivers are very different

across our varying Diversity groups

and, so, why create a CE management

strategy that delivers a “one-size-fits-

all” and assumes „general market‟

drivers across all groups?

It‟s time to

Incorporate an

Acculturation

model

Into all initiatives,

Including VoC and

Mystery Shopping

© Synovate 2011

What to consider when conducting

Diversity research

© Synovate 2011

Diversity Research Considerations

• Methodologies: Phone, In-person, Online?

• Question Styles: The “Sí” Factor

• Cultural Relevance: “American “or “sensitive” concepts

• Comprehension Levels: Varies by acculturation level and socio-economic

status

• Accurate Translations: Must convey both the meaning and sense of the

question

© Synovate 2011

• Telephone is generally the best

representation of ethnic populations and the

most cost effective with an interview less

than 20 minutes with no visual stimuli.

– Listed surname, high density random digit dial

(RDD), hybrids, client lists, as well as panelists

(English-speaking) from Synovate‟s panel for

telephone studies.

• 30% of Hispanics and 25% of African-

Americans are cell phone only households,

according to the CDC.

– Currently, it is not possible to target specific

ethnicities with cell phone sample but county

level exchanges can be targeted in higher

density ethnic areas.

Telephone Methodology

© Synovate 2011

“At Home” Internet Access Growing for

Hispanics

• Online penetration at home varies from a high of 70% of Mostly Acculturated

consumers to 38% of Unacculturated Hispanics.

• Although Internet penetration continues to grow, online panels are generally not

representative of ethnic consumers. We suggest “mixed recruiting” to obtain rep

samples.

Source: Synovate 2010 U.S. Diversity Markets Report Base: Adults 18+

Non-traditional panel sources, such

as Spanish-speaking recruited

Hispanics, are growing in popularity.

These samples tend to skew

towards „bilingual‟ respondents, so

check language counts when

bidding.

© Synovate 2011

At Least 7 Out Of 10

Adults Have Some

Internet Access (from

anywhere)

Source: Synovate U.S. Diversity Markets Report

Base: Adults 18+

© Synovate 2011

In-Person Methodology

• Intercepts, pre-recruits, and central location

tests in malls or other high traffic areas are an

excellent method for ethnic online surveys

using CAPI (computer assisted personal

interviewing) for interviews to find harder to

reach populations, interview lengths longer

than 20 minutes, and visual or taste tests.

• Synovate also has the capability for in-store

interviews for at-the-moment purchase

behavior and Mystery Shopping.

• Synovate has ongoing business

arrangements with field suppliers across the

country and has successfully conducted in-

person ethnic interviews in these types of

venues for many years.

© Synovate 2011

Question Styles, Cultural Relevance, and

Comprehension Levels

• The “Sí” Factor

- Culture has an impact on how respondents use rating scales. Hispanics gravitate toward

always giving higher ratings while others tend to give lower ratings, frustrating attempts

to compare results across ethnic groups.

- Different techniques are available to help minimize scale bias.

• Cultural relevance

- Many ethnic consumers do not have the depth of experience with many U.S. brands nor

are used to lengthy questionnaires which must be taken into account when designing a

research survey.

- Care must be taken with assumptions about generally known “American” concepts,

particularly among foreign born/less acculturated.

- Sensitive topics (e.g. immigration status, income) should be recognized.

• Literacy and education levels are lower (though increasing) than those of General

Market overall

- Pilot testing is recommended for language and questionnaire length that may diminish

quality of the response.

© Synovate 2011

Accurate Translations

• Translations must accurately convey both the meaning and the sense of the question.…

− Literal translation does not guarantee the same meaning.

− Use experts who adapt English-language questionnaire.

− The translator must assess whether phrases are actually English-language idioms or slang and, as

such, do not have the same meaning or sense in Spanish – then find a Spanish phrase which

works.

• Ideally, questionnaires should be back edited and reviewed by research staff who

understand the multicultural culture, consumer language and survey language.

© Synovate 2011

What types of

Diversity

Questions Should

we Include?

© Synovate 2011

Aside from „typical‟ demographics such as

age, gender and income, we suggest:

• Self-identified ethnicity and/or race

• Place of birth/country of origin

• Length of time lived in the U.S.

• Generation (parents and grandparents place

of birth)

• Language spoken at home and outside of

the home

• Acculturation level using (Synovate‟s)

Proprietary Algorithm

© Synovate 2011

% of Hispanics born

outside the U.S. is

decreasing which is

creating a new generation

of Hispanics

• Majority of Hispanics are Foreign-Born which creates a very different

marketing and economic environment

– Traditional values, importance of family, respect for elders, reluctance to

accept humor at expense of others

– Don‟t want to “stand out”, willing to make sacrifices for a better life for

children

U.S. vs. Foreign-Born Hispanics

© Synovate 2011

The % of Spanish-dominant adults

is slowly decreasing as U.S. born

children enter adulthood

Source: Synovate 2010 U.S. Diversity Markets Report

Spanish is mostly spoken

at home by Hispanic

adults

Spanish only/

mostly

English only/

mostly

Spanish and

English equally

© Synovate 2011

First, it is important to understand what

acculturation is:

• It is the process by which a person learns or

accommodates to a new culture.

– Observing new “host” culture

– Reacting to “host” culture

– Adapting to ”host” culture to order to better

function within it

• Can be Dynamic or Passive (Conscious Effort vs.

“Rubbing Off”)

• Acculturation DOES NOT REQUIRE a person to

abandon all aspects of their home culture.

How do I know when to use (Synovate‟s)

Acculturation Model?

© Synovate 2011

• Life events begin to shape acculturation level such as:

– Employment status

– Household establishment

– Family formation

– Education and exposure to attitudes and values different than their own

Push and Pull Factors Affect Acculturation

For example…the Internet provides Hispanics with an accessible medium

for keeping in touch with their families back home and news from their

country of origin.

This continued contact with family and media from their country of

origin exerts “pressure” to keep their culture.

© Synovate 2011

Synovate Diversity‟s Acculturation Model

• Our model uses several predictors of

acculturation, including country of birth,

years lived in the U.S., and social

network.

• Using this framework, our acculturation

model segments the 18+ Hispanic

market into 3 groups:

– One small “Acculturated group” (9%)

– One very large (non-descript) “Partially

Acculturated group” (68%)

– One “Unacculturated group” (23%)

Note: We do not use language spoken

at home as many models do.

© Synovate 2011

• Acculturation requires adaptation which places anxiety or stress on an

individual. These stresses affect rate of acculturation and resulting

consumer behavior.

– Attempts to “fit into new culture”

– Attempts to “preserve the home-country connections”

Synovate adds “cultural tension” to enhance

understanding

LOW CULTURAL TENSION HIGH CULTURAL TENSION

Feelings of being discriminated

against • Low • High

Family ties • U.S.-based • Home country

Tradition • Consider themselves less traditional • Maintain traditions

Interactions • Seek interactions with non-

Hispanics

• Feel uncomfortable interacting with

non-Hispanics

Communication points

• Positive aspects of life in U.S.

• Family and friends in U.S.

• Positive experiences of life in U.S.

• Country of origin and family back

home

• Uniqueness of Hispanics in U.S.

• Nostalgia for past and home country

© Synovate 2011

By overlaying Tension onto our Standard

Acculturation Model, we can more fully

describe “Partially Acculturateds” and

“Unacculturateds”

• Mostly Acculturated (9%)

• Partially Acculturated (68%)

- American Latinos (28%) - low cultural

tension

- New Latinos (23%) - medium cultural

tension,

- Traditionals (17%) - high cultural

tension

• Unacculturated (23%)

- Unacculturated Stable (17%) - low

cultural tension

- Unacculturated Traditionals (6%) -

medium to high cultural tension

© Synovate 2011

Latest demographic and category

trends

• We have been following trends in the

multicultural populations for more than

30 years.

• With this knowledge, we provide

multicultural insights and strategic

consulting to help our clients make

better business decisions.

• We publish several syndicated studies

which solidify our expertise in the U.S.

Diversity Markets

The U.S. Diversity

Markets Reports

HispanicLink

TeleNación

© Synovate 2011

We are still selling the

2010 U.S. Diversity

Markets Report • Premier one-stop resource for the

Diversity market

• Published every other year

• Trusted and used by Fortune 500

clients since 1980

– Detailed population estimates (by

DMA, by Age, by Gender)

– Proprietary characteristics data,

including language, media,

acculturation, shopping behavior

• Now discounted at $1,599

through your account

representative or by visiting: http://www.synovate.com/insights/public

ations/reports/diversity/

© Synovate 2011

…and the U.S. Diversity

Shopper Insights Report

• The Diversity Shopper Insights Report

examines the Shopping Styles and Path

to Purchase through the lens of the ethnic

shopper.

• Using its proprietary Shopping Styles

Segmentation, Synovate compares

category shopping styles among

Hispanics vs. African-Americans vs. the

General Market:

– Carbonated Soft Drinks, Coffee/Tea,

Condiments, Crackers, Salted Snacks,

Breakfast Cereal, Pet Food

– Hair Care, Internal Analgesics,

Dishwashing Liquid, Toothpaste,

Laundry Detergent

• Now discounted for $399…what a deal!

42

Introducing HispanicLink Joint Partnership with SymphonyIRI Group

Hispanic Survey

• Survey compares the shopping preferences

and motivational drivers of behavior among

More Acculturated and Less Acculturated

Hispanics (vs. Non-Hispanics)

• Topics include: Cooking, Eating, Drinking,

Health, Marketing & Media Influencers, &

Impact of Economy

• N=1800 interviews fielded in Dec. 2010 and

Jan. 2011

Hispanic Shopping Basket

• Trended Hispanic Shopping Basket uncovers

the actual purchasing habits of Hispanic

consumers on IRI‟s panel; to pinpoint greatest

opportunities by Retail channel

Cost:

• Hispanic Survey & Shopping Basket: $35,000

• Survey only: $25,000

• Shopping Basket only: $15,000

© Synovate 2011

TeleNación – Hispanic Omnibus

• Monthly Telephone Hispanic Omnibus CATI studies offering shared

cost opportunities

• Top 10 Hispanic markets or National Rep Sample (other markets

added on custom basis)

• Client can have surveys in one or more of Top 10 U.S. Hispanic

markets

• As migration has increased, Hispanic penetration into more and more

markets throughout the country, some clients prefer national

information

• Fielded monthly beginning on the last Tuesday of the month.

TeleNación Markets

• Los Angeles

• New York

• Houston

• Miami

• Chicago

TeleNación

• San Francisco/San Jose

• Dallas/Ft. Worth

• San Antonio

• Phoenix

• McAllen/Brownsville

© Synovate 2011

Customized Customer Experience and

Mystery Shopping Research

• Using our Synovate

Acculturation model we are

able to design best-in-class

approaches for you to manage

your CE research and

management strategies

• Examples of recent programs

include:

– State Government Mystery

Shopping programs

– A national financial services

provider

© Synovate 2010

Questions/Preguntas?

Thank you!

• Contact: Jane Edwards-Hall

jane.edwards-

hall@synovate.com

• Denise Sharp

denise.sharp@synovate.com