A comparative analysis of shopping behavior in Hispanic and non-Hispanic market areas

Abstract

Many retailers target shoppers belonging to ethnic minorities, particularly Hispanics. Most often, ethnic oriented retailing involves specialized marketing efforts in retail stores located in market areas with high concentrations of ethnic consumers. Previous research, through respondent self-reports, has attempted to determine how Hispanic shopping behavior differs from that of other customer groups. However, past studies have not investigated actual purchase behavior in stores located in ethnically concentrated market areas. Drawing on past research, we develop and test several hypothesis about shopping behavior in Hispanic market areas. Results show that shoppers in Hispanic trading areas are comparable to shoppers in non-Hispanic areas with respect to direct price responsiveness and brand substitution. However, we find that store brand purchasing is more prevalent in market areas with high concentrations of Hispanics.