March 10, 2005 | Issue 29

Editor's Note

	MR Perspectives is a twice-monthly newsletter that provides perspectives on market research topics of interest, best practices tips, emerging trends, quick case studies, and other useful information. Subscribe View Past Issues

Events

	March 13-15, 2005 Tokyo Asia Pacific Conference The World Association of Opinion and Marketing Research Professionals will hold its Asia Pacific Conference on “Integrating Consumer Insights Into Decision Making” at the Radisson Miyako Hotel in Tokyo.

	March 14-16, 2005 Marina Del Ray, Calif. Applied Research Methods The American Marketing Association will host classes in Applied Research Methods for mid-level marketing researchers at the Marriott in Marina Del Ray, California.

More Events

	March 15-16, 2005 Madison, Wisc. Marketing Research Boot Camp The American Marketing Association will host a Marketing Research Boot Camp at the Sheraton Madison in Madison, Wisconsin. March 17-18, 2005 San Antonio Marketing Boot Camp The American Marketing Association will host a Marketing Boot Camp at the St. Anthony Hotel, A Wyndham Historic Hotel in San Antonio, Texas. March 21-22, 2005 San Francisco Customer Reference Programs The American Marketing Association will host a conference on Customer Reference Programs at the San Francisco Marriott Hotel in San Francisco, California.

Segment Hispanic Respondents

Conducting market research effectively among the Hispanic population takes a little effort because simply translating an English language survey into Spanish isn’t going to cut it.

When designing research methodology, the savvy researcher must take into account the differences between the numerous ethnic groups found today in the United States. Therefore, to survey the Spanish-language population, the best thing to do is to segment the Hispanic market.

This is not as easy as it sounds. First, to understand how comfortable Hispanics feel living in the United States we must understand how Hispanics think and feel about their culture by evaluating respondents’ level of acculturation. That means we must measure just how much they have modified their Hispanic culture by adapting or borrowing the traits of the American culture. The acculturation of Hispanic respondents can vary widely, from those who only speak Spanish and interact with Spanish-speakers, to those respondents who are Hispanic, but do not speak Spanish.

Various techniques exist to evaluate acculturation levels, but the most widely used method assesses the respondent’s comfort level speaking English and Spanish in a variety of work and social situations. This enables the researcher to develop a methodology that will allow respondents to determine whether they want to complete the survey in English and Spanish, as well as providing some key insights that may only apply to specific Hispanics segments.

Depending on how in-depth the segmentation analysis, more comprehensive acculturation indexing scenarios can be devised. The index could include various factors such as assessing the respondents comfort watching and reading Spanish and English media, length of time in the United States, foreign born versus U.S.-born Hispanics, and assessing respondents’ level of immersion in Hispanic and U.S. cultures.

One practical implication of taking a segmented approach to the market research survey process is its impact on survey design. Even language and terminology may need to be tailored to individual Hispanic segments. In large studies where results are segmented not only among Hispanic respondents but other ethnic groups, care must be taken in reporting overall results in addition to results from the various segments, and in comparing results from the segments to each other.

Indeed, there is a multitude of factors to consider, and we could create quite a laundry list of factors. Suffice it to say that your research would be more robust if you address the differences between the general U.S. population and the Hispanic population. Also, allowing for more in-depth Hispanic segmentation will help market researchers develop more compelling insights that will help address their market research objectives more effectively.

Truth in Advertising Important To Avoid Embarrassment

Marketing researchers can learn an interesting lesson from a situation reported in a recent article in Forbes Magazine. Geico, the auto insurance giant owned by Warren Buffett’s Berkshire-Hathaway, has spent millions building its brand and promoting its “97 percent customer satisfaction” rating. But the company refused to produce data supporting its claim, nor will it disclose how it came up with this number, saying its research is “highly confidential.” Forbes analyzed Geico’s annual report and found the company in fact had a 25 percent annual churn rate, calling into serious question the validity of 97 percent satisfaction claim.

As consumers, we all have a responsibility to be skeptical about research results promoted in advertising that appear to be too good to be true. Researchers have many different ways of defining a “satisfied customer.” Furthermore, unless the margin of error is known and the exact pool of respondents made available, the results of any research can be called into question. Research results also can be skewed by leading questions or poor methodology, among other common errors.

For companies advertising claims based on research findings, the ramifications are clear. Make sure every public claim can be supported by reliable data, or risk suffering severe damage to the credibility of the brand, or worse. While misleading claims based on poor research could lead to new customers, it also could lead to embarrassment or even litigation.