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Annual Asian American Consumer Behavior Study Reveals Key Findings In Retail, Automobile, Insurance And Telecom Industries
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Long Beach, California (May 7, 2007) / DiversityBusiness.com /-- The third annual Consumer Research Study conducted by interTrend's Knowledge Center reveals relevant findings and insightful views into brand loyalty, lifestyle habits, purchase drivers, as well as media consumption of Asian Americans. This year's study increased the sample size to include the Asian Indian segment as well as added questions relating to cell phone usage to gain insights into the U.S. Asian telecom market. The findings will lay a foundation that will present not only the significant potential for marketers to enter this market, but also the fact that this market can no longer be ignored in the multicultural marketing strategies of Fortune 500 companies.
The study surveyed 1,380 Asians including Chinese, Vietnamese, Korean, Filipino and Asian Indian sub-segments, both in-language and in English, nation-wide across four major DMAs to examine their consumer behavior patterns and attitudes in various industry categories. The 2006 findings demonstrate that Asian Americans are highly receptive to culturally relevant messaging and targeted marketing.
interTrend's Knowledge Center is committed to conducting this study annually so marketers can take away key data and have a platform to build their business case and ultimately reap the success from entering this market. With an estimated $454 billion buying power in 2007, it is important that marketers not only realize the potential in the Asian American market, but also the specific insights and opportunities this study presents.
Internet Usage
The findings reveal that the Internet plays a critical role in the life of Asian Americans with nearly ninety percent (90%) of respondents online and seventy percent (70%) visiting ethnic websites/portals. In fact, more than half the respondents shop online, which has doubled from last year. Web surfing online also moved up from 8th in ranking in 2005 to 5th in 2006. 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. The average online shopping expenditure in the last 12 months is $138. The average online spending amongst the Vietnamese segment increased dramatically from an average of $180 in 2005 to $230 in 2006. The top products purchased online amongst Asian Americans remains as apparel and books.
Media Consumption
The study also examines media consumption amongst Asian Americans. The study revealed that eighty percent (80%) of the respondents consume ethnic media with print having the highest penetration followed by TV and radio. The study also revealed that Asians prefer to be reached and targeted through in-language advertising. Only seventeen percent (17%) of the respondents prefer English only advertising with the majority preferring either in-language or bi-lingual advertisements.
Brand Preference and Consumer Behavior in Industry Specific Categories
Retail
According to the study, Asian Americans shop frequently at department stores with nearly one third frequenting department stores at least 1 to 3 times a week.
Automotive
The findings also show that Japanese auto brands are a top choice among the respondents with Toyota and Honda having the highest ownership. Among the sub-segments, Asian Indians and Koreans have the highest purchase intention among all other groups.
Insurance
The study found that Asian Americans have the highest product ownership rate for auto insurance followed by health insurance and life insurance. Price and reputation are the top criteria for selecting an insurance company.
Wireless/Telecom
The study also gauges purchase factors when choosing a wireless phone service provider. The findings illustrate that the quality of local and national coverage were the top criteria in their purchase decision. Other top features stated by respondents included text messaging/SMS capability.
Need for Culturally Relevant Marketing
"Marketers are increasingly committed to capitalizing on the Asian American consumer market opportunity," explains Tanya Raukko, Director of Strategic Planning at interTrend Communications. "There is definitely a hunger to understand this segment's distinct preferences and our goal for the study was to be able to offer marketers relevant data, insights and valid entry points to help them build their business case."
"Asian American consumers continue to grow and evolve as a significant market segment. The interTrend Knowledge Center was created to better understand and track changes in Asian American consumption behavior so that marketers can establish more effective relationships with Asian American consumers," explains Julia Huang, President and CEO of interTrend Communications. "With this knowledge and understanding, marketers can maximize their market share and ROI in this consumer segment. This is a strategic investment that we are making for our clients."
About the Knowledge Center Study
The results and findings of this 2006 study were represented by a sample size of 1,380 Asian Pacific Islander Americans. The sample collected was based upon segment population densities across four major DMAs and respondents included Chinese, Vietnamese, Korean, Filipino and Asian Indian Americans 18 or older in age. Interviews were conducted one-on-one, both in-language and in English, by phone. In early 2004, interTrend launched a unique division, known as the "Knowledge Center," which deploys and houses a complex synergy of qualitative and quantitative research data analysis, consumer insights, and diverse consulting expertise in various industries. interTrend's Knowledge Center is a pioneer in monitoring, assessing, and applying specific behavioral market trends of Asian Americans toward specific targeted marketing strategies.
About interTrend Communications, Inc.
interTrend Communications, Inc. is a leading full-service marketing agency targeting the Asian American segments such as Chinese, Japanese, Korean, Vietnamese, Asian Indian, and Filipino. With a proven track record, interTrend has successfully helped Fortune 1000 clients nurture and establish brand leadership positions in this emerging market through an integrated mix of advertising, public relations, promotions, events and interactive strategies via various in-language media outlets.
interTrend delivers excellence to clients, working as marketing partners. Today, long-term partnerships have been established with Toyota Motor Company, JCPenney, State Farm Insurance, Western Union, AT&T, Northwest Airlines, Southern California Gas Company, San Diego Gas & Electric, Nestlé and The Walt Disney Company.
Contact:
Dorothy Parikh
interTrend Communications, Inc.
Tel: (562) 733-1780
Email: Dorothy@intertrend.com
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