OVERVIEW

Research Background

People consume brands and products every day to accomplish various goals, such as using a mobile app to listen to music or ordering food delivery. However, what if two competing brands offer similar functionality and utilitarian values? In this case, how would users make their decisions in selecting one brand rather than the other? Would the cultural meanings of these brands play a role in this user decision-making process?

Research Questions

Focusing on how Hispanic users choose brands based on their cultural meanings, two research questions were raised:

• Do Hispanic users perceive certain brands as embodying “Hispanicness” (the brand is perceived to be associated with Hispanic culture) and other brands as reflecting “Americanness” (the brand is perceived to be associated with American culture)?

• Would highly acculturated Hispanic users prefer brands of “Americanness” and less acculturated Hispanics prefer brands of “Hispanicness?”

Target User

Hispanic adults in the U.S.

Research Method

To answer the research questions, three research projects were conducted, including two focus groups in project 1, two surveys in project 2, and one experiment in project 3.

PROJECT 1

Reason for Selecting the Focus Group Method

Focus groups are particularly instructive for exploring answers to “how” and “why” questions. For the purpose of understanding not only what brands are perceived to symbolize “Americanness” versus “Hispanicness,” but also the reasons behind such perceptions, focus groups were deemed appropriate for this project. Moreover, focus groups were used to take advantage of the group dynamics that allow for richer group discussions on brands’ cultural meanings and to capture the diverse experiences and stories of Hispanic communities.

Research Participants

Focus group participants were local Hispanics recruited via online platforms such as Craigslist.

Research Process

The two focus groups were conducted in a professional focus group room at a university located in a metropolitan area well known for its multiculturalism, and particularly for the blending of American and Hispanic cultures. The first focus group had 8 participants and the second had 9. Each focus group was recorded and lasted for about an hour. The moderator of both focus groups was a bilingual Hispanic graduate student who was fluent in English and Spanish, and familiar with both American and Hispanic cultures.

Research Findings

A total of 32 pairs of Hispanic and American brands emerged from the focus group discussions. Each pair had two brands that were considered to carry similar utilitarian values but vary in their cultural connotations. For example, Budweiser beer and Tecate beer were viewed as highly similar in product features, but Budweiser represented “Americanness,” while Tecate was linked to “Hispanicness.”

PROJECT 2

Reason for Selecting the Survey Method

After the first project was completed, the next step was to establish the significant associations between brands and their cultural identities and to quantitatively evaluate whether the cultural meaning of a brand would influence users’ brand preferences. Therefore, the survey method was appropriate for project 2.

Research Participants

Project 2 consisted of a pilot survey and the main survey. Survey respondents were recruited from a national consumer panel sustained by a marketing research company, including 43 Hispanic users in the pilot survey and 873 Hispanic users in the main survey.

Research Process

The survey data were collected online, and the survey questionnaire was hosted on Qualtrics. The questionnaire was first written in English. It was later translated into Spanish by a bilingual Hispanic business professional and then translated back into English by a bilingual Hispanic professor to ensure translation equivalency. When survey respondents answered the questionnaire, they selected the version (either English or Spanish) that they preferred.

Research Findings

The purpose of the pilot survey was to validate the 32 pairs of brands generated from the focus groups regarding their “Hispanicness” and “Americanness.” Significant statistical differences were found for 19 pairs, which were then used in the main survey. In the main survey, participants’ orientations toward American and Hispanic cultures were measured. Furthermore, their brand preferences were tested in a hypothetical setting (for example, “If you were to buy nine beers at one time, how many of each brand would you buy to reflect your relative preference for each brand, assuming these are the only brands available and they are priced equally? I would buy ___ Tecate and ___ Budweiser”). The results showed that users who were highly orientated to Hispanic culture were more likely to choose a Hispanic brand rather than an American brand in a pick-one-out-of-two scenario. It was the opposite for users who were more orientated to American culture, who showed a clear purchase preference for American brands rather than Hispanic ones.

PROJECT 3

Reason for Selecting the Experimental Method

The experimental research method was adopted in project 3 to test the robustness of project 2 findings in a realistic setting (instead of a hypothetical setting).

Research Participants

The experiment was conducted in a research lab at the same university as project 1. A total of 123 Hispanic users took part in this experiment, who were recruited through flyers posted on online platforms such as Craigslist and on the university campus.

Research Process

Two pairs of competing brands (Abuelita vs. Swiss Miss, and Navarro vs. CVS) were used in the experiment to test users’ brand preferences. Experiment participants first responded to a questionnaire that measured their cultural orientations. Then, they were presented with a pair of gifts on a random basis and asked to pick one to take home: either a box of Abuelita or a box of Swiss Miss hot chocolate mix; or a $5 Navarro gift card or a $5 CVS gift card.

Research Findings

The experimental results showed that 56.3% of participants chose the Hispanic brand (Abuelita) when offered a box of hot chocolate mix, while only 16.3% selected the Hispanic brand (Navarro) when offered a $5 gift card.

DELIVERABLES

Actionable Implications

Summarizing the results from all three projects, a brand can be perceived as being strongly associated with a particular culture. In a hypothetical setting, this perception significantly influences user preference. However, in a realistic setting, the accessibility of a brand may outweigh the influence of brand culture perception. For example, there was a larger number of CVS stores than Navarro stores in the area where project 3 was conducted. Since experimental participants had to physically visit a store to redeem the gift card, it is likely that most of them picked the American brand (CVS) over the Hispanic alternative (Navarro) because it was more accessible. From a product design perspective, these research findings indicate the importance of targeting users who share cultural values with the corporation while keeping the product accessibility high.

Research Publication

Cong Li, Wan-Hsiu Sunny Tsai, and Gonzalo Soruco (2013), “Perceived ‘Hispanicness’ versus ‘Americanness’: A study of brand ethnicity with Hispanic consumers,” International Journal of Advertising, 32(3), 443-465.