Targeting the Best Hispanic Customer - An AHAA-AARP Generatonal-Cultural Study / Originally presented at the AHAA Annual Conference on April 30, 2013 Where are tomorrow’s true growth opportunities? A presentation and panel discussion serves up a first look at groundbreaking research commissioned and directed by AHAA and funded in part by AARP. This first-ever in-depth study of all Latino Generational Segments – a multi-sourced, integrated analysis conducted with Scarborough/MRI – is packed with compelling insights and implications: *How are psychographics and purchase habits changing across Latino Millennials, GenXers, and Younger/Older Boomers? *Do different generations show different levels of acculturation? *What generational similarities and differences exist between Hispanics and non-Hispanics? *What categories represent new, dynamic Generational & Acculturation opportunities?

1. 1
Targeting the Best Hispanic Customer:
An AHAA and AARP
Generational and Cultural Orientation Study
THE NOT SO HIDDEN VALUE IN GENERATIONAL TRENDS

2. From 2000-2010, Hispanics Grew Faster
than the Total Population, Regardless of Age
2
Source: U.S. Decennial Census 2000-2010

3. Financial: Home Ownership
Total Gen Y Gen X Boomers
Q: Own or rent residence (HHLD):Own 3
Home ownership incidence almost doubles between Latino
Boomers v Latino Millennials
1.6x More likely to own
a Home v. H Mill
Cultural Orientation Highlights by Generation
Home Owners Cultural Orientation skews Hispanic &
Bicultural
3

4. Financial: Mutual Funds
Total Gen Y Gen X Boomers
Q: Investments household has (HHLD):
Mutual Funds 4
Mutual funds incidence doubles among Latino Boomers v
Latino Millennials
2x More likely to have
Mutual Funds v. H Mill
Cultural Orientation Highlights by Generation
MF holders’ Cultural Orientation skews Anglo Oriented
among Millennials and fairly balanced between Anglo
& Bilingual Oriented among Xers & Boomers
4

5. Travel: Foreign Trips
Total Gen Y Gen X Boomers
Q: Any trip outside continental U.S. past 3 years:
Total foreign trips
5
Hispanics are more likely to travel abroad than NH
Latino Boomer generation 22% more likely than Latino
Millennials.
40% More likely to
v. NH Boomers
26% More likely to
travel abroad v. NH
Most
Likely
Buyer
Cultural Orientation Highlights by Generation
Hispanic foreign travelers’ Cultural Orientation
skews somewhat Bicultural Oriented across all
generational segments yet most Hispanic Oriented
among Xers
5

6. Tech/Entertainment:
Smartphone buyers
Total Gen Y Gen X Boomers
Q: Items/services HHLD plans to buy in next 12 months (HHLD):
Smartphone (BlackBerry, Droid, iPhone, etc.)
6
Millennials are more likely to buy a new smartphone.
15% More likely to
buy v. NH
Most
Likely
Buyer
Cultural Orientation Highlights by Generation
Hispanics Smartphone buyers’ Cultural Orientation is
fairly Bicultural Oriented among Millennials & Boomers v
Anglo Oriented among Xers
2x More likely to
buy v. H Boomers
6

7. Tech/Entertainment: Movies
Total Gen Y Gen X Boomers
Q: Movies - when usually seen at a theater past 12 months: Opening weekend
7
Hispanics prefer to go to movie theatres on opening weekend.
Millennials are twice as likely as Boomers.
84% More likely to
attend v. NH
Most
Likely
Buyer
40% More likely
to attend v. NH Y
Cultural Orientation Highlights by Generation
Hispanics heavy movie goers’ Cultural Orientation skew
more Bicultural Oriented across Millennials and Xers but
evenly balanced between Anglo & Bilingual Oriented
among Boomers
7

8. Key Take Aways
8
Source: U.S. Decennial Census 2000-2010
• Taking a generational perspective helps uncover “best” Hispanic
customer
• Cultural orientation differences become apparent at the category level
• Hispanics vary by cultural orientation, suggesting that a cultural
“one-size-fits-all” marketing approach needs to expand / change
• Marketers should explore differences within Hispanics to grow their
business