Hispanics have become an influential and desirable market due to their population growth r
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
- Which of the following statements describes the decision facing L.L. Bean?
- a.Determine if Hispanic households prefer catalogs in English
- b.Increase their market share by penetrating the Hispanic sub-segment
- c.Improve the direct selling experience among Hispanics
- d. Decide if they should send their catalog to Hispanic households in English or Spanish
- Which of the following is a complete research objective for the research conducted for L.L. Bean?
- a.Determine if consumers prefer catalogs in Spanish
- b.Determine the average number of consumers that prefer English
- c.Determine the percent of Hispanic consumers that prefer to read catalogs in Spanish with a dual choice (English/Spanish) response scale
- d.Determine the average number of consumers that are likely to buy from an L.L. Bean Catalog
- 3) Which of the following hypotheses can be tested with the data that was collected?
- a. The average number of consumers that prefer catalogs in Spanish is large
- b. The average number of consumers that prefer catalogs in English is large
- c. The percent of Hispanics that are likely to buy from an L.L. Bean Catalog is higher than 30%
- d. The percent of Hispanics that prefer to read catalogs in Spanish is equal or higher than 30%
- 4) Which type of research design/s did the research company use to describe the language preferences among bilingual Hispanics?
- d. a and b
- 5) The sample that was collected was?
- a.Non-representative of the whole population.
- b. Convenient
- c. Probabilistic
- d. Non-probabilistic
- 6) The research method employed was ___________ in nature.
- a. Qualitative
- b. Quantitative
- c. Secondary
- d. a and b
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.