New DMA Study: Hispanics Would not Mind to Receive More Direct Mail

The Direct Marketing Association (DMA) announced the release of its market research on US Hispanic consumers' attitudes and purchasing habits via direct marketing channels. Reaching The US Hispanic Market: Consumer Attitudes and Buying Behavior Report, produced in conjunction with The DMA Directo Council for Hispanic Marketing, demonstrates the many positive aspects about Hispanic consumers' experiences with buying direct.

"With more than 49 million Americans of Hispanic descent, the United States is now the world's fifth-largest Spanish-speaking country," said Anna Chernis, senior research manager, DMA. "Census projections indicate that in 30 years, more than 25 percent of the American population will be of Hispanic descent. The report includes the most recent data on the Hispanic market to help direct marketers make the best of new opportunities in this growing market segment."

A nationwide sample of Hispanics, in which 10,000 records were used, was the basis for the study. Quotas were set for 70 percent of respondents to be direct response buyers and/or donors and 30 percent non-buyers. 1,116 respondents (788 direct buyers/donors and 328 non-buyers) completed interviews for the analysis.

Of those 788 individuals who made purchases from mail, catalog, online, telephone, or DRTV offers or who made donations, 36 percent purchased through more than one channel.

Report Highlights:

Language Preference

·In 2004, approximately 70 percent of interviews were conducted in Spanish. In 2006, this figure decreased to about 44 percent, indicating an overall trend toward greater acculturation.

·Just 18 percent of respondents spoke only English or preferred English in 2004, while in 2006 this percentage nearly doubled to 34 percent.

·In 2006, 77 percent of respondents who made purchases in response to television marketing did so in response to a commercial or infomercial in English.

·Hispanics are using online resources more than ever, and even those who prefer Spanish use English to surf the Web.

Direct Ordering Trends

·Credit card ownership has increased among Hispanic consumers, and so has the usage of credit cards as a payment method when shopping from home (53 percent in 2004 vs. 63 percent in 2006).

·Compared to all US buyers, Hispanics place more orders by phone (49 percent vs. 33 percent).

·In 2006, 51 percent of Hispanic buyers had more than one major credit card – up from 41 percent in 2004.

Response to Mail Marketing

·Hispanics show more tolerance towards received advertising mail, compared with the total US population.

·Close to half of all the respondents (49 percent in 2004 vs. 42 percent in 2006) vs. 38 percent of the total US population, said they either received "just the right amount" of advertising mail or that they wouldn't mind receiving more.

Reasons for Shopping Direct

·Almost half of all Hispanics cite "convenience of shopping from home" as a reason for making direct purchases.

·Significantly, convenience was most frequently cited by Hispanics making online purchases (63 percent), followed by those purchasing from television (56 percent) and catalog (54 percent).

·More than a quarter of respondents said that "discounted and reduced prices" were important incentives to shop from home or office.

·"Time saved" was the third top ranked reason given in 2004-noted by 25 percent, increasing to 35 percent in 2006.

Non-Buyer Responses

The DMA's research also targeted Hispanic consumers who do not purchase products or services through direct marketing channels. Of those 328 respondents, the majority (68 percent) cited two main reasons for not buying:

·More than a third (39 percent in 2006 vs. 21 percent in 2004) indicated that they were "not interested in items advertised."

·Slightly fewer (29 percent in 2006 vs. 37 percent in 2004) stated that they "preferred to see and touch items."