Hispanic Shoppers: How Trip Drivers and the Path to Purchase Have Evolved. Over the past year and a half, we here at The Checkout have noticed many interesting trends among Hispanic shoppers. This special report delves into Hispanic shoppers and how trip drivers and their path to purchase have evolved. For example, through our research we learned that price takes on a very different role for Hispanic shoppers when shopping for their family. For the Hispanic Shopper, June, September and November are the three points when their main shopping goals change in rank. These months coincide with major stocking-up events: summer vacation, back-to school and holiday shopping. During these three periods, they become more concerned with satisfying the needs and expectations of other family members and less concerned with expense. For more on this seasonality trend and other Hispanic shopper insights, click here to download the The Checkout - Issue 5.10.

1. the
inside the in-store experience
ISSUE 5.10 | HISPANIC SHOPPERS
IN THIS ISSUE
Hispanic Shoppers: How Trip Drivers and
the Path to Purchase Have Evolved
• Fewer Hispanic shoppers perceive difference in
product quality between brand name and private label
than the general market.
• Hispanics’ shopping goals flip-flop based on the
shopping season.
• Price takes on a very different role in shopping for the
family.
This issue of The Checkout examines the Hispanic
shopper and how this audience’s path to purchase has
evolved. Though practical Hispanic shoppers continue
to be more value-driven than the general-market
shopper, they also are adopting a new level of
sophistication where traditional in-store shopping aids
are proving to be less and less effective in reaching this
audience. Given these conflicting changes in behav-
ior, what does the future have in store for retailers and
brands communicating with Hispanic shoppers?
**For the purposes of this issue of The Checkout, Hispanics are U.S. adults who
identified themselves as Hispanics as part of the larger research project. Surveys
were conducted in English, in monthly waves in 2009-10.
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2. page
Shopping Goals Flip-Flop by Season.
Hispanics Heavy-Up on Value
Tightening budgets, lowered consumer sentiment, and an unsure economic future have resulted
in a shift in shopping behaviors from performance (quality and shopping experience) to
conservation of resources (time and money), accompanied by changing expectations.
Though contradictory, saving money and convenience are the top shopping goals for Hispanic
shoppers. Retailers (dollar stores and discount/mass) and brands (private label and value plays)
that focus on lower prices and/or use heavy value messaging will be better positioned to face
page
this challenging selling environment.
Price Takes on a Very
Different Role in Shopping
When It’s for the Family
Seasonally, June, September
and November are the three
points when the top primary
shopping goals change in rank.
During these three periods,
the primary shopper becomes
more concerned with satisfying
the needs and
expectations of other
family members, as well as
increased convenience, and is
less concerned with expense.
These variations coincide with
the major stocking-up events: summer vacation, back-to school time and holiday shopping.
During these times, the Hispanic shopper shows a significantly higher concern for family
satisfaction and one-stop shopping (and less on saving money) than general-market shoppers
do.
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3. page
Switching It Up
The Leaky Bucket
Hispanic shoppers are more likely than the general public to switch brands, a pattern that looks
to continue into the near term. A contributing factor to the higher propensity to switch is the
acceptance by family members of private-label brands in the household.
Though the general market is gradually trending toward sticking with tried-and-true brand
names, Hispanic shoppers are becoming more comfortable with switching brands. The question
remains whether shoppers will return to their familiar brands given an economic recovery or if
their switching behavior will become the new status quo.
Trading Down or Moving Out
In addition to switching brands
more often, Hispanic
shoppers are also buying fewer
and cheaper goods. The silver
lining is that some Hispanic
shoppers are sticking with fa-
miliar brands despite having to
occasionally buy less often, and,
when they do switch, they often
choose store brands.
For Hispanics, have store brands
become the new reality? While
the number of general-market
shoppers switching to store
brands seems to have reached
a plateau, Hispanic shoppers
show few signs of slowing their hunt for better bargains and report that the best
bargains come from store brands.
Store brands continue to gain strength with shoppers and their families. Though most shoppers
continue to consider name brands as offering greater variety and innovation (at a higher cost),
among Hispanics, that figure is much smaller. Significantly more Hispanic shoppers perceive less
difference in product quality, and their families are becoming more used to having store brands
in the shopping basket. Surprisingly, this is even more pronounced at higher income levels
($75,000+).
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4. page
Show Me the Money...Off
Shoring Up the Private-Label Defense
The good news for national brands is that of those Hispanic shoppers reporting no change in their
shopping behavior, two-thirds (67%) stick with their brand of choice, indicating that there are those
who are not willing to compromise on brand choice even at a lower cost.
67%
There were significant drops in the number of shoppers across all ethnic groups who reported that
they always consider trust in their name brand, sale prices, and coupons as reasons they do not
buy store brands, potentially alluding to the growing strength of private-label products. The overall
Of those Hispanics reporting
no change in their shopping ranking for the top five reasons shoppers gave for not buying store-brand alternatives remained
behavior will stick with their
brand of choice. relatively consistent throughout 2009, with brand often being on sale, trust in the brand, and
satisfaction with the regular price making up the top three. However, unlike Hispanic shoppers,
general-market shoppers are less likely to switch from their name brands due to the different variety
of product available.
Looking for Savings
• Coupon usage by Hispanic shoppers
grew dramatically throughout 2009
• Information on value is nice, but it had
better come with a discount incentive
• Female Hispanic shoppers in particu-
lar rely on all types of
coupons and shopper cards
Since the beginning of 2009, shoppers
in general appear to be relying more on
coupons, both those from the manufac-
turer and the store, while shopping for groceries. At the same time, consumers have indicated that
they are less likely to use traditional in-store shopping aids, such as directional signs. The practical
Hispanic shopper continues to be more value-driven than the general-market shopper and exhibits
a greater reliance on money-saving discounts. Older Hispanic shoppers are more likely to use circu-
lars from in-store or newspapers for deals.
Increase in Shopper Stability
The 2009 shopping year was characterized by continuous fluctuation across shopper values (price,
value, family and quality) and trip type (restock, one-bag, grab-and-go and leisure). However, we
are now starting to see some stability in terms of the key attributes when making a purchase. Price
played a big role in 2009 and is still a leading factor but has decreased as the key driver. The gap
between price and convenience has decreased significantly and is lower vs. a year ago, which is a
sign that shoppers are feeling more secure with the economic situation and returning to previous
shopping behaviors.
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5. page
In-Store Messaging, Out of Mind for
Hispanics
The New Sophisticated Shopper
Shoppers overall appear to be growing in sophistication and becoming increasingly involved in the
decision-making process. While most Hispanic shoppers still indicate that they are price-sensitive, they
are exhibiting significant changes in shopping behavior, with fewer shoppers going straight to sales items
or to their favorite brands, indicating that they are making more of their decisions at shelf.
Decision-making between name and store brands encompasses a variety of price considerations,
including comparing on-shelf prices and checking sales and coupons before buying. Their shopping
sophistication appears to be further
increasing. Despite high awareness
levels, when it comes to making a
purchase decision, shoppers
reported that they are less influenced
by sales features (such as end caps)
or asking associates for product
opinions.
Shopping Aids
When it comes to shopping aids,
Hispanics appear less responsive to
in-store messaging than non-
Hispanics. Specifically, neither
messaging at shelf or in-store TV
were cited as tools that help
Hispanics make a purchasing
decision. Many retailers and brands
develop communication aimed at
both the general and Hispanic markets, so this begs the question, is there a larger issue with irrelevant
messaging at retail? In order to reach Hispanic shoppers effectively, brands and retailers must be rooted
in deeper, more meaningful insights that distinguish Hispanic from general-market communication.
What This All Means
The U.S. Hispanic shopper is evolving and adapting, requiring more creativity and engagement from
retailers and brands. Couple with the fact this audience is showing signs of the economic stresses which
have dramatically affected the general market. To adapt, they more easily slide between brands and
private label as well as drop out of some categories altogether. Retaining Hispanic shoppers requires
brands to better understand where the opportunities to connect with them are and are not. Example: the
seasonal variable is essential as it presents windows where Hispanics are less price-sensitive and more
family-focused. This allows brands to connect with this audience on a more personal level and facilitate
enduring relationships, which could then lead to decreasing brand-switching and increasing loyalty.
Issue 5.10 powered by The Integer Group ® and M/A/R/C ® Research

6. pag e
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The Checkout is based on a nationally representative survey of
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