Hispanic Buying Patterns

Hispanics represent the largest racial/ethnic subculture in the United States in terms of population and spending power. About 50 percent of Hispanics in the United States are immigrants, and the majority are under the age of 25. Research on Hispanic buying practices has uncovered several consistent patterns:

1. Hispanics are quality and brand conscious. They are willing to pay a premium
price for premium quality and are often brand loyal.
2. Hispanics prefer buying American-made products, especially those offered by
firms that cater to Hispanic needs.
3. Hispanic buying preferences are strongly influenced by family and peers.
4. Hispanics consider advertising a credible product information source, and U.S.
firms spend more than $3 billion annually on advertising to Hispanics.
5. Convenience is not an important product attribute to Hispanic homemakers with
respect to food preparation or consumption, nor is low caffeine in coffee and
soft drinks, low fat in dairy products, and low cholesterol in packaged foods.

Despite some consistent buying patterns, marketing to Hispanics has proven to be
a challenge for two reasons. First, the Hispanic subculture is diverse and composed
of Mexicans, Puerto Ricans, Cubans, and others of Central and South American
ancestry. Cultural differences among these nationalities often affect product preferences.
For example, Campbell Soup Company sells its Casera line of soups, beans,
and sauces using different recipes to appeal to Puerto Ricans on the East Coast and
Mexicans in the Southwest. Second, a language barrier exists, and commercial messages
are frequently misinterpreted when translated into Spanish. Volkswagen
learned this lesson when the Spanish translation of its “Driver’s Wanted” slogan suggested
“chauffeurs wanted.” The Spanish slogan is now Agarra calle, a slang expression
that can be loosely translated as “let’s hit the road.”Sensitivity to the unique needs of Hispanics by firms has paid huge dividends.
For example, Metropolitan Life Insurance is the largest insurer of Hispanics. Goya
Foods dominates the market for ethnic food products sold to Hispanics. Best Foods’
Mazola Corn Oil captures two-thirds of the Hispanic market for this product category.
Time, Inc., has more than 400,000 subscribers to its People en Espanol.