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TRUST IS PARAMOUNT IN STORE SELECTION TO HISPANIC SHOPPERS

December 11th, 2008

TNS Hispanic Shopper 360 Survey Reveals New Insights Into Purchase Decisions of Hispanic Shoppers

(New York, December 11, 2008) – TNS, a leading market information group announced today the results of its Hispanic Shopper 360 study.   According to the report Hispanics are avid shoppers, unhurried browsers and rate trust as a key driver for store selection.  In addition in-store promotions and advertising are much more likely to influence Hispanic shoppers’ purchase decisions than the average shopper.

24 percent of Hispanics cite trust as key store selection criteria, compared to just 17 percent of the total non-Hispanic shopper population, reinforcing the importance of building stronger brand relationships.  “The Hispanic population are avid shoppers driven by both family size and interest but needs to feel comfortable, welcome and completely trust their store,” says Emil Morales, TNS Executive Vice President & General Manager Centers of Excellence.  “Trips to the store for Hispanic consumers are about more than just availability of goods, it is also largely about service and the store experience. This sense of trust is a key reason that community based stores (bodegas and supermercados) are successful despite limited selections and often charging higher prices.”

In-store Influences
Hispanic shoppers are browsers and they are unlikely to rush hurriedly through a store. Only 16% of Hispanics found “getting in and out quickly” important compared to 39% of total non-Hispanic shoppers.  Hispanics are not avid users of coupons acquired outside of the store, but once in-store, their more leisurely shopping habits make them considerably more aware of and open to in-store displays, discounts and other tactics to drive purchases.  

Although they tend to know the brands of products they are going to buy before shopping, Hispanic shoppers are open-minded and often their final purchase is heavily influenced by in-store promotions:
•    34 percent of Hispanics versus only 14 percent of total shoppers are influenced by in-store ads and coupons
•    34 percent of Hispanic shoppers claim to be influenced by in-store price reduction compared to 22 percent for total shoppers
•    Hispanic shoppers rank coupon redemption lower in their list of lifestyle attributes than total shoppers (ranking 74 versus 26, Hispanic versus total shoppers)
•    Hispanics are much more likely to know which brands of products they are going to buy before shopping (ranking 3 versus 22, Hispanic versus total shoppers)

Channels Visited
Hispanic shoppers shop at more channels than the total shopper population and tend to favor Mass Merchandisers and Drug Stores.  Convenience stores are big, particularly with Hispanic males.  Dollar Stores and Supercenters are frequented less by the Hispanic population than the average shopper. However when we examined data at more local levels we saw significant positive preferences for Supercenters in Texas and Southeastern Florida.
 
Hispanic grocery shopping habits also show strong cultural preferences.  Hispanics rank, “buying more fresh food than packaged goods” at 6 versus 21 for the general population.  They also show a preference for cooking. “Cooking is a great source of satisfaction for me,” ranks at 5 versus 20 for Hispanic shoppers versus total population, which shows increased opportunity for brands specializing in “authentic” ready-to-cook meals, or meals that are focused on healthy and fresh alternatives, said Morales.”

Hispanic Shopper 360
Hispanic Shopper 360 survey; 1,500 central location interviews conducted in Spanish and English between October and November 2007.  .


About TNS   

TNS is a global market information and insight group.

Its strategic goal is to be recognized as the global leader in delivering value-added information and insights that help its clients make more effective business decisions.

TNS delivers innovative thinking and excellent service across a network of 80 countries.  Working in partnership with clients, TNS provides high-quality information, analysis and insight that improve understanding of consumer behavior.

TNS is the world’s leading provider of customized services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management, Retail & Shopper and Customer Intelligence.  TNS is a major supplier of consumer panel, media intelligence and audience measurement services.

TNS is the sixth sense of business. For more information, visit www.tns-us.com.

The Kantar Group

The Kantar Group is one of the world’s largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies – including the recently acquired TNS – the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community.  Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle.  The group’s services are employed by over half of the Fortune Top 500 companies.  The Kantar Group is a wholly-owned subsidiary of WPP Group plc.  For further information, please visit www.kantargrouptns.com.


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