Hispanics have become an influential and desirable market due to their population growth rate and their purchasing power potential. The estimated purchasing power of Hispanics this year was estimated at $704 billion. This purchasing power represents substantial opportunity for marketers, especially for those depending on sales growth.
Corporations are changing their sales and distribution strategies in order to specifically target this market segment. According to the Direct Marketing Association (DMA), the paper catalog is still the largest revenue generator; 50% of sales among all channels used by companies that sell goods to consumers and businesses from a remote location.
L.L. Bean has been a traditional catalog/online seller among the U.S. general market. They now seek to extend their market by penetrating the Hispanic sub-segment. DMA research suggests there is a consistent growth in the Hispanic market segment. However, reaching the Hispanic market segment has its challenges. L.L. Bean needs to decide whether to send their catalog to Hispanic households in English or Spanish. Therefore, they need to determine Hispanic consumers’ language preferences when shopping at a distance, (via mail, telemarketing, catalog, online) in an effort to improve direct selling specially catered for the Hispanic market segment. To address this issue, L.L. Bean hired a marketing research company to provide the information needed to make the decision.
In order to describe the language preferences of Hispanics a sample of 400 Hispanic consumers was randomly selected from a phone data bank; surveys were conducted by telephone in English or Spanish according to the respondents’ preferences. The researchers included following variable in the survey: Catalog Language Preference (1 = English, 2 = Spanish).
Follow Up Questions
The researchers included the following question in the survey:
QA) What language do you prefer in the following contexts? Select the number that best represents your answer.
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