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LOS ANGELES - Hispanic households in Los Angeles, home to the largest population of Hispanics in the United States, are much less likely to belong to a grocery store frequent shopper program than non-Hispanics, according to new research from ACNielsen U.S., an operating unit of ACNielsen, a VNU Company. The research results were presented today during the ACNielsen Category Masters client conference attended by executives from over 500 consumer packaged goods companies.
The findings come from ACNielsen's exclusive 1,500-household Homescan LA Hispanic Panel. Using language preference as an indicator of acculturation, households where Spanish is the only or preferred language are deemed to be "less acculturated;" those that utilize both Spanish and English are "bilingual;" and those for whom English is the language of choice are "more acculturated." The panel is representative of the Los Angeles market where the largest segment of the city's population (55 percent) consists of less acculturated households. Bilingual households represent 33 percent of the Hispanic population; 12 percent are more acculturated.
The differences in frequent shopper program participation rates are especially pronounced among less acculturated Hispanic households. Only 52 percent of such households belong to a frequent shopper program, compared to 90 percent of non-Hispanic households. Among more acculturated Hispanic households, 75 percent belong to a grocery store frequent shopper program.
Ken Greenberg, vice president, marketing, ACNielsen Homescan, said, "If grocery retailers are going to succeed with this vitally important demographic group, they need to focus their efforts on attracting the less acculturated Hispanics to their frequent shopper programs. Not only are they the largest segment of the Hispanic population, but our research shows that they also have a tendency to concentrate their purchases in a smaller number of stores than more acculturated Hispanics. Having them participate in a frequent shopper program would further solidify their loyalty as they and their future generations acculturate."
Among other findings:
-- Of Hispanic households that belong to a frequent shopper program, less acculturated households are more likely to belong to just one program (37 percent vs. just 15 percent for more acculturated households);
-- Less acculturated Hispanics are more likely to describe the frequent shopper program they belong to as "valuable" or "very valuable" (77 percent vs. 66 percent for more acculturated Hispanics and 70 percent for non-Hispanics);
-- The number one reason for not belonging to a frequent shopper program across all respondents was simply that the store where they shop does not offer one.