Servicing the Multicultural Homebuyer

Oscar Gonzales Copyright 2013

Servicing the Multicultural Homebuyer


Introductions


THIS IS NOT AN EXERCISE IN
DIVERSITY!


It’s About Business Development

Multicultural Marketing is about economics and profitability.

The customer segment we traditionally left to someone else
that required more guidance might now be our economic
lifeboat.

That economic lifeboat is the
“Multicultural Consumer”


Session Goals and Objectives

• The course is designed to educate real estate professionals on the language and
cultural nuances of the multicultural consumer.

• The course provides the real estate professional with the tools to assist the
multicultural consumer understand the U.S. home buying process while keeping
the real estate professional within the confines of fair housing laws.


Profile of Realtors & Homebuyers

• Median age of a Realtor is 56 • Largest share of homebuyers
years old are 25-34 years old; Median
age overall is 45 years old
• 57% are female
• 37% are first-time
• 75% of Realtors have real homebuyers
estate as their only
occupation • 21 % are single females; 12%
are single males
• 9% of Realtors are foreign
born • 15% of first-time home buyers
are foreign born; 7% are
repeat


Profile of Realtors & Homebuyers

• 56% of Realtors have a smart • 88% of homebuyers used the
phone with wireless internet internet to search for a home
and email access
• 89% used a real estate agent
• 91% of information on the or broker
website is the members own
listings • 30% of buyers used print
newspaper ads to find info on
• Almost 1/2 of members are homes for sale
using social media.
• 2% of buyers found the home
• Realtors spend a median of they purchased using print
$250 to maintain their ads
websites


U.S. Population by Race

Year U.S. White Black Asian Hispanic Other

2011 312,211,832 198,274,006 38,047,665 14,677,490 52,141,065 9,071,606

2016 326,157,434 203,590,818 39,443,305 15,531,613 59,225,877 8,365,821

% Change 4.47% 2.68% 3.67% 5.82% 13.59% -7.78%

U.S. Census 2012


U.S. Foreign Born Population


U.S. Population Projections
2008 - 2050

Percent of Total Population 2008-2050

90.00

80.00

70.00

60.00
White
50.00 Black

40.00 Asian
Hispanic
30.00

20.00

10.00

0.00
2008 2010 2015 2020 2025 2030 2035 2040 2045 2050

12


U.S. Median Income by Race

Year U.S. White Black Asian Hispanic
2011 50,289 52,488 36,780 60,415 39,646

2016 50,832 53,107 36,573 61,010 39,834

% Change 1.08% 1.18% -0.56% .98% 0.47

U.S. Census 2012


Multicultural Buying Power

Source: University of Georgia Selig Center


Immigrants and Boomers

In his book, Immigrants and Boomers, author and noted demographer Dowell Myers describes
how each of these two powerful demographic influencers may hold the keys to resolving the
problems presented by the other.
Myers argues that during the Myers and other demographers
demographic transition, the new believe that immigration can help to
prospect of diminished skills in the supply some of the workers needed to
future workforce and a reduced support the rising number of seniors
middle class could undermine the and to replace them in the labor force
continued growth in home prices. as they retire and can help
compensate for the smaller number of
Retirees will transition from being net younger adults who are likely to buy
taxpayers to net recipients of health homes from the increasing number of
and pension benefits, and they will be older Americans.
supported by a smaller workforce that
is struggling to meet its own needs. New arrivals alone can offset about
one-quarter of the increase in the
Seniors are also net home sellers and senior ratio.
Myers believes there will be 67%
more people in the selling age relative
to the younger adults who are likely to
be buyers.


Texas Demographic
Analysis


Texas Population
2011 - 2016


Texas Foreign Born Population


Texas Housing Tenure – Owner
Occupied


Texas Housing Tenure – Renter
Occupied


Hispanic Acculturation Segments

Americanizado
• Hispanics in this segment are typically English dominant (nearly no Spanish); born in US and often 3rd+
generation; has few Hispanic cultural practices.

Nueva Latina
• Hispanics in this segment are typically English preferred (some Spanish); born in U.S. and typically 2nd
generation; some Hispanic cultural practices and often “retro-acculturate”.

Bi-Cultural Hispanics
• Hispanics in this segment are typically bilingual (equal or nearly); immigrated as child or young adult; has
many Hispanic cultural practices

Hispano
• Hispanics in this segment are typically Spanish preferred (some English); immigrated as adult and in U.S. 10+
years; pre-dominant Hispanic cultural practices.

Latinoamericana
• Hispanics in this segment are typically Spanish dominant (nearly no English); recently immigrated as adult (less
than 10 years ago); primarily Hispanic cultural practices and identifies with home country more so than U.S.
Hispanic.


Asian Acculturation Segments

Very Westernized Asians
• Asian population categorized as AA1 (Very Westernized Asians)

Bi-Cultural Westernized Asians
• Asian population categorized as AA2 (Bi-Cultural Westernized Asians)

Bi-Cultural Asians
• Asian population categorized as AA3 (Bi-Cultural Asians)

Bi-Cultural Asian-Identity
• Asian population categorized as AA4 (Bi-Cultural Asian-Identity Asians)

Very Asian-Identity
• Asian population categorized as AA5 (Very Asian-Identity Asians)


Exercise: Stereotype Brainstorm

Discuss your reactions to what you have heard:
Write stereotypes or generalizations you have heard
•How did you feel about using stereotypes?
•How did you feel about those used to describe members
for each culture assigned to your group. The
of your group?
•Do they apply to everyone in a group? Are they fair? be positive or
stereotype or generalization can
negative.
If there is little diversity in the area, discuss with other
groups: religious, disabled, wealthy, older persons, as well as
men, women and real estate professionals.

Discuss how people distinguish themselves from others in
their own groups. (i.e.,Real estate agents).


Assumptions, Stereotypes and Biases

People make generalizations as a way of coping with
the confusing details of experience. Generalizations
are useful and necessary, as long as they remain
guidelines and do not turn into rules.

24


The Role of Culture

Culture is a set of learned
behaviors, beliefs, attitudes, values, and ideals that are shared by
a particular society or population.

Culture impacts how we think, feel, and more importantly, how
we look at the world and is the most basic cause of a person’s
wants and behavior.
25


Cultural Summaries

• Recent immigrants are influenced more by their
traditions and customs than second or third
generation immigrants who are accustomed to living
and doing business in the U.S.

• If you are working with multicultural homebuyers,
their cultural practices and customs are likely to
influence home buying decisions and affect the
overall transaction.

26


Exercise:
???? Spoken Here

What languages are spoken in your community?

Have you noticed an increase or decrease in different
languages spoken in your community?

How many different languages are spoken in your
office?

How do you feel when others speak a different
language around you?

28


“Low” Vs. “High”

High Context Low Context
Prevalent in: Prevalent in:
Asia United States
Russia Canada
Middle East Northern Europe
Latin America
Southern Europe
Nonverbal communication is important. Precise verbal agreements are important.

A contract is the basis of a relationship. A contract is binding and exists apart from a personal
relationship.

Time is fluid, and schedules tend to be flexible. Time is treated as a commodity, and schedules are carefully
observed.

Formality, face-saving communication, and relationships are There is a preference for informality and direct
valued. A slower pace is needed to build relationships. communication. Results are valued. Accustomed to a fast
pace of doing business.

Observe punctuality.


Language
Bilingualism - an interesting phenomenon

• Perfect fluent English-speakers suddenly shift
into fluent Spanish or Chinese

• An individual’s connection to their
language can tell a lot about
individuals level of assimilation and
acculturation.


Tips on What Language to Use

• Be sensitive to how they reply to your first words.
– If they answer in Chinese, Vietnamese, or Spanish or heavily accented
or broken English, ask them if they would prefer to speak in that
language.

– If you are bilingual, move into their respective language.

– If you are not, assure them that you will guide them to the appropriate
person and or department.


Additional tips for working with
non-English speakers

• CHILL-LAX Often times, when we are dealing with non-
English speakers, we become tense, irritable, and tend to
raise our voices, as if by increasing the volume of what we
are saying will help.

• In speaking with non-English speakers, be
sparse, simple and straightforward.

• Do not use jargon, slang or colloquialisms.


Reading Non-Verbal Signs

According to most communication specialists, 80% to 90% of a
culture is reflected in nonverbal messages. These include:
• Eye movement
• Facial gestures
• Hand, leg, and body gestures as well as body orientation and
posture
• Use of distance and touching
• Tone of voice
• Cultural contexting.

Are there any universals of body language? There are,
but they are generally very subtle.


Business Norms and Etiquette

Beyond using proper etiquette, which you use in the course of
business, it is important to project positive attitudes toward
multiculturalism, as well as adjust to the other person’s need for
high or low context communication.

34


Orientation to the Hispanic Culture


We are often asked what is the best,
most appropriate and respectful name
to use describing this population:

• Latino (a)?
• Hispanic ?
• Chicano (a)?
• Mexican-American
• Cuban-American
• Puerto Rican
• Dominican
• etc….


The simple answer is that it depends on to whom you are talking.

Individuals choose to state their ethnic identification in many different
ways:
- Sometimes geographically / by national origin and
- Sometimes politically (Chicanos).

• Good rule of thumb – ask your client which terms they
prefer.


Valid Hispanic Generalizations

Personalism, Passion and Loyalty

1. “Personalismo” roughly translated means “personalism.”
“Personalismo” communicates the profound emphasis that
Latino culture places on the subjective experience and quality
of the person-to-person interaction.

• Latinos are socialized to place great emphasis on this aspect of human
interaction. When serving Latino clientele, it is very important to be
cognizant of the quality of your interactions.



2. “Pasión” means passion.
• Latino culture is known to facilitate the free expression of emotions in certain
contexts. One of these contexts is where the quality of inter-personal interactions
indicates that the individual with whom you are dealing is “safe” and non-
rejecting.

3. “Lealtad” means loyalty.
• Once an individual has proven himself via his/her “personalismo” and the client
has invested the relationship with “pasión” (passion), loyalty follows.

4. “Sharing”
• It is often difficult for Westerners, raised in an environment that is focused on the
individual, to understand this significance.

• A historian might relate it to the tribal life of the indigenous peoples of Latin
America, many of whom lived in communal situations where the needs of the
group took precedence over the needs of the individual.



5. The Role of Shame – “¿Qué Dirán?” (“What will they
say?”)
• One of the results of living in a culture that places a
great deal of emphasis on the group is the significance
of shame.

• Fear of shame: Immigrants and those not fluent in
English from cultures where shame plays an important
role are particularly sensitive to humiliation and
appearing foolish.



Family Unity
In Latin America, however, the definition of the family conveys more
of a sense of inclusion.

The “extended family” is considered more important and proximate.
Uncles, aunts, cousins, godparents (padrino, madrina), compadres and
comadres (best friends) all are invested with a sense of belonging and
obligation to the core group.



Family Unity
Parent-Child Relationship
• Children are highly prized and considered a blessing from God.

• Children are an integral part of the family.
There are some aspects of child-rearing that receive less
emphasis in Hispanic vs. non-Hispanic families such as toilet
training and weaning from nursing.

• This aspect of the culture is important for your work in real estate in
that members of the extended family may serve as sources of
information and referral.


Trust to the Latino

• All else being equal (i.e., if they have not had previous negative
experience or heard of others’ negative experiences), they will
approach an unknown type of business relationship with a trusting
attitude.

• However, if that trust is violated, it is not easy to win it back.


Orientation to the Asian Culture


Asian Languages

• Chinese is now the second most prevalent
foreign language spoken in U.S.
households after Spanish.

• In California, five of the top 10 languages
spoken are Asian and Chinese is now the
third most common language spoken in
New York City.


Valid Generalizations
Family-Oriented

• Great emphasis is placed on strong family
relationships.

• It is common for parents to make a generous
down payment or purchase a house for their
children.

• It is also not uncommon to find women in
charge of household finances.


A child in an Asian household normally learns or is exposed to the
following values:

• Achievement and success
• Activity and involvement
• Efficiency and practicality
• Progress
• Material comfort
• Humanitarianism
• Youthfulness
• Fitness and health


Every group or society in Asia has its indigenous
culture, and cultural influences which may vary greatly
from country to country, or even neighborhood to
neighborhood.

For example: White is usually associated with death in
many Asian cultures. However it is regarded as purity
and cleanliness in Western countries.


Communication

• Similarity to other Asian cultures

• “Yes” doesn’t mean “Yes”

• “Maybe” means “No”

• You will never hear “No”

• Avoid embarrassing self and others


Non-Confrontational Nature
• While there are exceptions, most Asian Americans are
conservative and reserved by nature.

• When an issue occurs, they will not disagree openly in an effort
to save face and respect the other party.

• Although generally non-confrontational, Asians won’t hesitate to
voice their opinion when necessary.


Church or Philosophy

• Strong sense of faith

• Catholics

• Baptist

• Buddhist


Orientation to the African-American Culture


Family
African-American families share many
features with other ethnic families including:

– Approaches to marriage

– Family formation

– Gender roles

– Parenting styles


Historical and Cultural
Influences

Characteristics of family include:
– Tightly extended family units.

– Matrilineal organization of family.

– Family as clan organization can be seen as the
predecessor to the extended family structure of modern
African-American communities.

– Grandparents, especially grandmothers, play a crucial
role in the maintenance of the African-American family.


Cultural Influences

• Spirituality

• Mutual support

• Ethnic identity

• Adaptive extended family structures

• Church as offering both ideological and
instrumental support


Multicultural groups are known
for:
• Close space perception

• High context communication and avoiding the “Intimidator” Factor

• More oriented towards “being” in relationships than “becoming” one

• Flexible about time vs. rigidity

• Likely to place a premium on flexibility in relationships

• More comfortable with close personal contact than traditional Western culture

• Avoidant of direct eye contact in certain situations

• Freer with physical expression


Multicultural Marketing


Approaches to Multicultural
Marketing and Outreach


Multicultural Marketing

Marketing to multicultural consumers requires a media neutral planning approach.
Marketers can no longer assume that multicultural marketing is done only in ethnic
language media or using only conventional media.

Marketing to the Hispanic Homebuyer


DO YOUR RESEARCH!!!

Volkswagen
Ad Offends Latinos
March 18, 2006

In 2006 Volkswagen put up its new billboards for the sporty car with the slogan
"Turbo-Cojones".

In English, the word is used as a catch-all term for daring, but in Spanish, it is
an impolite way of saying "testicles."

Volkswagen's intent was to pitch the sporty, fast car to young, bilingual
Latinos, but it backfired.


The Decision Making Process

• Females, extended family and trusted friends often play a role
in the home buying decision.

• Males typically play the role of provider, and in negotiations
they will usually take control.

• The female, albeit often behind the scenes, plays the important
role of home administrator.

• Since fulfilling their children’s needs is very important to
Hispanics, understand that kids are also your clients.

• When it comes to their decision about purchasing a home,
single parent families will often look to their extended family
for help.


Emerging Opportunities

• Marketers attempting to meet the needs of the Hispanic
community should keep in mind the role language plays in
establishing trust and motivating purchase intent.

LANGUAGE…
Spanish is a way of life for Hispanics


Television, the Most Widely Used Ad
Medium, is Even more Important in
the Hispanic Market

Avg. # Hours Per Week Spent
with Each Medium

Non- Hispanic
Hispanic Hispanic Index
TV 25.90 17.81 143
Radio 16.57 14.75 112
Magazine 3.35 3.74 90
Newspaper 4.29 5.04 85

Source: Market Segment Research & Consulting, “The MSR&C Ethnic Market Report”


Radio

• Radio is an excellent, local medium for reaching Spanish
speakers, depending on the objectives of your initiative. It can
serve as a more intimate complement to wider campaigns as
well as give attention to other local grassroots advertising.


Print

• Be aware of the limitations of print advertising in reaching the
Hispanic market.

• Tailor content to the reading levels of your target audience.

• Be mindful of newspapers and magazines
that are actually relevant to the cultural
needs of the Hispanic homebuyer.


Print

• Distribution has been another major obstacle to readership. It is
sometimes very difficult to find Hispanic or Spanish language
magazines or newspapers in major outlets, with the exception of
stores in areas of high Hispanic concentration.


Print

• In spite of all of these challenges, marketers should start to
invest in print. The more interesting and appealing print
outlets are, the more Hispanics will pay attention to them.

Remember that the Hispanic culture is more oral than
literate and that your investment may take longer to
generate a return.


E-merging Opportunities -
Hispanics

• The Internet makes it possible for Hispanic consumers to learn
about news in their countries of origin via web sites.

• The Internet makes the need to assimilate much less pressing
than ever before.

• Biculturalism is the most likely Hispanic trend. Hispanics can
increasingly navigate between the two cultures and behave in
way relevant to them.


State Farm

Marketing to the Asian Consumer


Asian Buying Power

While Asians number less than many
other population segments, their
economic power and potential bottom
line impact in many product categories
and brands is disproportionately large.


Advertising in the Various Mediums -
Asian

• Print
– Dominant media vehicle. Primary
source of news and information.

– The major publications among Asian-
Americans have a diverse editorial
focus, reflecting the various
geographic origins of the community.
• (i.e., Mainland China, Hong Kong,
Vietnam, Pakistan, India, Korean,
etc..)


Asian

• Print

– Most are published weekly or monthly, with
only a few published daily.

– For some Asian groups the majority of the
publications are “in-culture” but printed in
English, reflecting the high English language
competency within some Asian cultures.


Asian

• Television
– Asian language television programming is growing rapidly and is
available through satellite, local cable, as well as UHF.

– Asian television features locally produced programming as well as the
latest news/entertainment content from Asia.

– California is the most developed of the Asian broadcast markets.


Asian

• Radio
– A number of programs and stations available in each major geographic
market. In most major markets radio programming is available in the
multiple languages (i.e., Mandarin, Cantonese, Vietnamese, etc..)

– Availability of Asian radio has been growing rapidly within the last 5-10
years.

– National and local media is available in top Asian DMA’s (i.e., Los
Angeles, New York, San Francisco, Houston, Seattle, Atlanta, etc..)


Advertising in the Various
Mediums – Asian-American

Internet Usage

• Among Asian-Americans surveyed, nearly 90% of
respondents were online and 70% visit ethnic
websites/portals.

• More than half the respondents shop online, which
has doubled from last year.

• Asian Indians and Chinese spend the most hours on
the Internet and young Asian Americans between the
ages of 25 and 34 are the heaviest Internet users.


Marketing to the African-American Consumer


Advertising in the Various Mediums –
African American

• African-American consumers are continually seen as “monolithic” that
can be addressed through mainstream.

• Little if any research has explored African-American perceptions of
advertising.

• The most effective communications to the African American market
are campaigns that highlight:
– Family
– Community strength
– Culture
(Source: New America Media 2005; Black Enterprise 2009)


African American

• African American consumers:
– Are more receptive to advertising than White non-Hispanic consumers.

– African-Americans found advertising more meaningful when it featured
African-American models.

– They are more satisfied with the “informational” value of advertising than
White non-Hispanic consumers.

(Source: New America Media 2009 Black Enterprise 2009)


African American

• Print
– African-Americans read daily newspapers and
magazines (mostly weeklies) on average.

– Print media reaches only ¼ of the African-
American population.



African American

• Television
– African-Americans watch about 5 more hours of
television per week than their White non-Hispanic
counterparts.

– African-Americans are more susceptible to
media’s effects because they often use television
as a source of guidance.

– Unfortunately, much of the research focuses on
effects of television on African-Americans, and
little address advertising or attitudes toward
advertising.


African American

• Radio
– A substantial majority of African American adults listen to ethnic radio
stations on a regular basis.

– African-Americans that are 40 years of age or older and those with annual
incomes of over $40,000 listen to ethnic radio more often than the younger
and less affluent.



Overall Best Points of Contact

In deciding to prospect in the Multicultural market, you need to
look for your points of contact:
• Immediate family
• Friends
• Neighbors
• Church (Catholic, Protestant, Evangelical)
• Doctors
• Dentists
• Chiropractors
• Teachers
• Attorneys (e.g., immigration)
• Bankers
• Retailers (furniture store, children’s baby clothes, auto dealers, car parts)
• Services (mechanics, gardeners, house-keepers, contractors, painters, dry
cleaners)


Three Fundamental Strategies

Over time, organizations in the real estate industry that have been successful in tapping
into this consumer base have utilized three fundamental strategies:

• Understand and evaluate the demographics of their local market

• Develop appropriate products and modified service delivery

• Measure and evaluate outcomes


Be Patient!

Understand that the language, cultural and differing
business practices can take time to overcome…….and

Don’t be afraid to ask
for help.

REALLY!


Multicultural Facts

For those of you who watch what you eat, it's a relief to finally know
the truth about all those conflicting nutritional studies.


Multicultural Facts

1. The Japanese eat very little fat and suffer fewer heart attacks than Americans.

2. The Mexicans eat a lot of fat and suffer fewer heart attacks than Americans.

3. The Chinese drink very little red wine and suffer fewer heart attacks than
Americans.

4. The Italians drink a lot of red wine and suffer fewer heart attacks than Americans.

5. The Germans drink a lot of beer, eat lots of sausages and fats and suffer fewer
heart attacks than Americans.


Multicultural Munching

SPEAKING ENGLISH IS
CONCLUSION:
Eat and drink what you like………
APPARENTLY
WHAT KILLS YOU!!

Servicing the Multicultural Homebuyer

Servicing the Multicultural Homebuyer

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