Neleen Leslie Florida State University culture’s influence on brand loyalty AMONG culturally diverse consumers in the United states Neleen Leslie Florida State University

Background On April 1, 2010 there were 308.7 million people living in the United States. 64%- Non- Hispanic Whites 34.2%- Major minority groups Hispanics represented over half of the total population growth. This trend will continue: The Hispanic and Asian populations are expected to more than double between 2000 and 2050 Non- Hispanic whites are expected to decrease as a percentage of the total population

Minorities will soon represent more than 1/2 of the U.S. population What does this mean? Minorities will soon represent more than 1/2 of the U.S. population

Background Key Terms: Ethnicity Culture Individualism vs. Collectivism Masculinity vs. Femininity (Proneness to) Brand Loyalty

Background Ethnic group identification is based on more than physical characteristics. Culture (shared values, meanings) forms the core of ethnicities. Culture regulates all behavior and shapes consumer decision making Brunso & Grunert (1998) found differences in purchasing behavior in people from different countries.

IDV vs. COLL Individualism is the extent to which one looks after him or herself and immediate family only, and want to be different from others. EAs were found to be both more individualistic (valuing personal independence more), and less collectivistic (feeling duty to in-groups less) than others (Oyserman, Coon & Kemmelmeir, 2002).

IDV vs. COLL Collectivism is the extent to which people belong to groups and value loyalty to each other. People from from Asian cultures are likely to be more collectivist ( Hsu, 2011; Morse, 2009) Hispanic culture stresses conformity (Korzenny & Korzenny, 2005) African Americans are thought to be more NHW (Okoro, Carden & Marshall, 2008)

MAS vs. FEM Masculinity is the extent to which achievement and success are highly valued; gender roles are clearly defined. Communication styles of males and females will differ in these cultures. Nonverbal communication may also be utilized more by specific gender group Femininity is the extent to which caring for others and quality of life are highly valued Young African Americans use material possessions to display status and achievement to others (Fisher, 1996).

In the Literature Brand name purchase is related to collectivism Well known brands show social status and “rightful place” Brand name items are used as status symbols in masculine cultures and are used to signify success and achievement. African Americans consume brands to feel accomplishment and to show achievement Substitute achievable status symbols for ones they have not yet achieved

In the Literature Brand loyalty is important to business because it boosts profitability Pareto principle Cultural influences have been seen in the purchase behavior of adolescents from different ethnicities: African American and Hispanic adolescents displayed brand loyal tendencies. Lam (2007) found: Significant correlations between Individualism vs. Collectivism and brand loyalty

Why This Topic? While it has been established that cultural differences exist between ethnic groups in the US, specific cultural dimensions associated with these groups have not yet been studied. Looking at cultural dimensions may provide insights into cultural influences on consumers’ relationship with brands. Since culture is a key determinant if consumer behavior, I believe that there is a direct link between cultural dimensions and brand loyalty.

The Hypotheses H1: Ethnic groups that are more collectivist will display higher levels of brand loyalty H2: Ethnic groups that are more masculine will display higher levels of brand loyalty H3: Ethnic groups that are both masculine and collectivist will display the highest levels of brand loyalty.

Data Collection The data for this study was collected in an online survey conducted by DMS Insights A random sample of respondents was selected based on their demographic characteristics and invited to participate the survey based on quota requirements. IDV vs. COLL & MAS vs. FEM (Dorfman & Howell, 1988; Robertson & Hoffman, 2000; Lam, 2007) measured on 5 point Likert-type scale 0 (Completely Disagree) to 5 (Completely Agree)

Data Collection

Preliminary Regression Analyses Brand Loyalty MAS .155 (p<.001) COLL .352 (p<.001) Gender .051 (p<.01)

Tests of Linearity COLL: F=6.008; p<.05 MAS: F=4.274; p<.05 Most notable deviations for AA. R2=1%

Adjusted Mean Ranks Individualism vs. Collectivism 1st: API (.141) 2nd: HS (.101) 3rd: AA (.043) 4th: HE (.023) 5th: HS(-.265) Masculinity vs. Femininity 1st: API (.189) 2nd: HE (.091) 3rd: AA (.038) 4th: HS (-.043) 5th: NHW (-.260)

Brand Loyalty ANCOVA Rankings 1st: AA (.179) 2nd: HS (.018) 3rd: API (-.009) 4th: HE (-.018) 5th: NHW(-.138)

Brand Loyalty AA> CAUC (.317) AA>HE (.197) AA>API ( .188) Post Hoc Analysis Brand Loyalty AA> CAUC (.317) AA>HE (.197) AA>API ( .188)

Discussion Cultural dimensions are significant predictors of brand loyalty Ethnic groups in the U.S. differ significantly on these cultural dimensions Education and gender are also significant predictors of these cultural dimensions and brand loyalty. Males more collectivist? However, cultural dimensions cannot be used to differentiate brand loyalty among ethnic groups COLL: 3 of 5 ethnic groups maintained their rankings MAS: Only NHW maintained their ranking

Questions? Email: Website: http://hmc.comm.fsu.edu