Final report. nguyen ngoc anh.01.07.2013

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DOCTORATE IN CO-ASSOCIATION BETWEEN
TELECOM ECOLE DE MANAGEMENT & UNIVERSITY EVRY VAL D’ESSONNE
Speciality: Management Science
Doctoral school: Science of Society
Presented by
Ms. Ngoc Anh NGUYEN
To obtain the degree of
DOCTOR OF MANAGEMENT SCIENCE OF TELECOM ECOLE DE MANAGEMENT
Defended on 03/07/2013 in front of the jury including:
Director of thesis: Mrs. Chantal AMMI
Professor, HDR, Télécom Ecole de Management
Reporters: Mr. Van Cuong LE
Research Director Emeritus of the National Center for Scientific
Research (CNRS)
Professor emeritus, HDR, Paris School of Economics
Mr. Duc Khuong NGUYEN
Deputy Director for Research
Professor, HDR, Ipag Business School
Examinators: Mr. Denis DARPY
Professor of Universities, Paris Dauphine University
Mr. Thiery MATHE
Responsible for the study and research on consumption, Research
Center for Study and Observation of Living Condition (CREDOC)
Doctor in sociology, Paris-Descartes University
Thesis n° 2013TEMA0002
Ethnic identity, socialization factors and
their impacts on ethnic consumption behavior and
ethnic food consumption in France

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Telecom Ecole de Management and Université d'Evry-Val-d'Essonne do not intend to give any
approval or disapproval to the opinions expressed in this thesis. These opinions should be
considered the author’s own point of view.

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ACKNOWLEDGEMENT
First and foremost, I would like to express my sincerest gratitude to my supervisor,
Professor Chantal AMMI, for her valuable guidance and advice. Her availability, enthusiasm
and carefulness in making comments, as well as her continuous encouragement inspired me
much to complete the thesis.
In addition, I would like to send my sincere thanks to all the members of my jury. My
great thanks are sent to the reporters, Mr Cuong LE VAN and Mr. Duc Khuong NGUYEN, for
their detailed comments. Also, it is my privilege to express my warm regards to the
examinators, Mr. Denis DARPY and Mr. Thierry MATHE for the kindness and support.
I would like to take this opportunity to thank to all the participants for helping me with
data collection while implementing the project entitled “Ethnic Identity, Socialization Factors
and their Impacts on Ethnic Consumption Behavior and Ethnic Food Consumption in France”,
including the respondents and the experts.
Last but not least, an honorable mention goes to my parents, my husband, my son, other
family members and my friends for their understanding and supports. Without helps of the
particular mentioned above, I would face many difficulties while doing this thesis.

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ABSTRACT
As a country with biggest number of immigrants in Europe, France has been so far
known with its multiple ethnic populations, in which the ethnic minority represents a viable and
untapped market segment. As a result, ethnic marketing has been developed correspondingly by
several market agents who would like either to pursue new market segment or strive to cover
the whole market while taking into account of growing multi-ethnic reality in France.
The objective of this research is to measure ethnic identity of ethnic population in
France, their socialization factors, their ethnic consumption behavior in general and their ethnic
food consumption in particular, as well as to determine the influences of these factors. Applying
a hypothetico-deductive approach, both theoretical and empirical investigations are conducted
to serve the mentioned objective.
The first part is a literature review, helpful in developing a conceptual model of ethnic
identity, socialization factors and their impacts on ethnic consumption behavior and ethnic food
consumption. It includes the social identity theory [Henry Taifeil & John C. Tuner, 1970];
identity development theory which consists of theory on ego identity [Erik Erikson, 1986] and
empirical researches on personal identity [Marcia, 1980] and ethnic identity development
[Phinney & Ong, 2007]; theory on culture, sub-culture, counter-culture, acculturation; as well
as in depth knowledge on ethnicity, ethnic identity, and ethnic marketing.
Whereas empirical part involves data collection, processing and analysis, which serve
the purpose of verifying not only variables of the conceptual model, but also the hypotheses on
the relationships between them.
The results of the survey on ethnic population in France have confirmed these
hypotheses. They are useful in terms of theoretical contribution, as well as from the point of
management since they help highlighting some strategies for ethnic marketing in associated
with ethnic identity, ethnic consumption behavior and ethnic food consumption.
Key words: ethnic identity, socialization factor, ethnic consumption behavior, ethnic food
consumption

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RESUME
Avec le plus grand et le plus diversifié nombre d’immigrants et d’étrangers en Europe,
la France représente un segment de marché viable et inexploité. Le marketing ethnique, élaboré
par plusieurs acteurs du marché, a pour objectif de développer de nouveaux segments de
marché, ou de couvrir l’ensemble du marché en tenant compte de la croissance multi-ethnnique
en réalité.
L’objectif de notre travail est de mesurer l’identité ethnique de la population ethnique en
France, leurs facteurs de socialisation, leur comportement de consommation ethnique en
général, et leur consommation d’aliments ethniques en particulier, ainsi que de déterminer les
influences de ces facteurs. Cette recherche s’inscrit dans une démarche hypothético-déductive
et est structurée en deux parties théorique et empirique pour servir l’objectif visé.
La première partie est consacrée à l’analyse du contexte général, à la revue de la
littérature et à l’élaboration d’un modèle conceptuel de l’identité ethnique, des facteurs de
socialisation et de leurs impacts sur les comportements de consommation ethnique et sur la
consommation d’aliments ethniques. Seront analysées la théorie de l’identité sociale [Henry
Taifeil & John C. Tuner 1970], la théorie du développement de l'identité qui se compose de la
théorie de l'ego identité [Erik Erikson 1986] et des recherches empiriques sur l'identité
personnelle [Marcia, 1980] et le développement de l'identité ethnique [ Phinney et Ong, 2007] ;
la théorie de la culture, sous-culture, contre-culture, acculturation, ainsi qu'une connaissance
approfondie de l'ethnicité, l'identité ethnique et le marketing ethnique.
La partie empirique sera consacrée à la collecte, le traitement et l’analyse de données,
qui serviront à vérifier non seulement les variables du modèle conceptuel, mais aussi les
hypothèses des relations entre elles.
Les résultats de notre étude sur la population ethnique en France ont confirmé nos
hypothèses de manière générale. Ils sont utiles en termes de contribution théorique et
managériale car ils aident à mettre en évidence quelques stratégies pour le marketing ethnique
associé à l'identité ethnique, les comportements de consommation ethnique et la consommation
d'aliments ethniques.
Mots clés: identité ethnique, facteur de socialisation, les comportements de consommation
ethnique, la consommation d'aliments ethniques

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TABLE OF CONTENTS
ACKNOWLEDGEMENT...................................................................................................... 2
ABSTRACT............................................................................................................................ 3
RESUME................................................................................................................................. 4
TABLE OF CONTENTS........................................................................................................ 5
LIST OF FIGURE................................................................................................................ 10
LIST OF TABLE.................................................................................................................. 12
INTRODUCTION ................................................................................................................ 14
Managerial context of the research..................................................................................14
Theoretical context of the research..................................................................................15
Rationale and objective of the research ...........................................................................17
Research structure............................................................................................................18
PART I.................................................................................................................................. 20
ETHNICITY, ETHNIC IDENTITY, AND.......................................................................... 20
ETHNIC MARKETING ...................................................................................................... 20
CHAPTER I......................................................................................................................21
CONTEXT OF THE RESEARCH ..................................................................................21
Introduction ..................................................................................................................22
I. Ethnic marketing development in world-wide situation..........................................23
I.1. Countries with ethnic diversity..............................................................................23
I.1.1. United States of America................................................................................23
I.1.2. Canada ...........................................................................................................27
I.1.3. Australia.........................................................................................................30
I.2. Ethnic products and services worldwide................................................................32
I.2.1. Banking sector ...............................................................................................33
I.2.2. Food sector.....................................................................................................34
I.2.3. Cosmetic sector..............................................................................................36
I.3. Ethical issues ........................................................................................................39
I.3.1. Ethnic marketing may cause discrimination and might be the reason for social
separation................................................................................................................39
I.3.2. Ethnic market segment is not easily defined, usually costly and time consuming
……………………………………………………………………………………….41
I.3.3. Ethnic marketing: integrating but not melting.................................................43
II. Ethnic diversity and ethnic marketing in France ...................................................45
II.1. Ethnic population in France .................................................................................45
II.1.1. Categories and estimated number of ethnic population in France...................45
II.1.2. Statistic on ethnic population in France.........................................................46
II.2. Development of ethnic marketing or alternative ones...........................................57
II.2.1. From alternative manner of ethnic marketing ................................................57
II.2.2. To authentic ethnic marketing.......................................................................59
II.3. What restraint the existence and development of ethnic marketing in France?......65
III.3.1. Legal obstacle..............................................................................................65
II.3.2.Taboo of ethnic marketing in France..............................................................66
Conclusion.....................................................................................................................67
CHAPTER II ....................................................................................................................68
THEORETICAL BACKGROUND .................................................................................68
Introduction ..................................................................................................................69

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I. Social identity theory.................................................................................................70
I.1. Social identity theory- a familiar concept ..............................................................70
I.2. Principals of social identity theory ........................................................................72
I.2.1. Self categorization and social categorization ..................................................72
I.2.2. Social comparison..........................................................................................73
I.2.3. Social identification........................................................................................73
I.2.4. Collective self esteem and self enhancement ..................................................75
I.3. Social identity theory vs. identity theory ...............................................................76
I.3.1. Difference ......................................................................................................77
I.3.2. Similarity .......................................................................................................78
I.4. Link between ethnicity and social identity, social identity theory and ethnic
marketing....................................................................................................................81
II. Theory of identity development...............................................................................83
II.1. Ego identity by Erik Erikson- Core concept of identity development theory.........83
II.1.1. Ego ...............................................................................................................83
II.1.2. Stages of life.................................................................................................84
II.1.3. Ego-identity status ........................................................................................86
II.2. Personal identity formation by James Marcia.......................................................87
II.2.1. Identity formation .........................................................................................87
II.2.2. Identity status................................................................................................87
II.3. Identity development process by Phinney J. S. and Ong A.D. ..............................89
III. Culture, subculture and counterculture ................................................................90
III.1. Culture ...............................................................................................................90
III.1.1. Origin and concept.......................................................................................90
III.1.2. Culture and its components..........................................................................92
III.1.3. Cultural characteristic..................................................................................94
III.1.4. Acculturation...............................................................................................97
III.2. Subculture ........................................................................................................103
III.2.1. Basic concept of subculture .......................................................................103
III.2.2. Importance of subculture in marketing.......................................................105
III.2.3. Ethnic subculture.......................................................................................106
III.3. Counterculture..................................................................................................109
III.4. Culture and consumption behavior in academic research ..................................110
III.4.1. Culture and consumption behavior.............................................................111
III.4.2. Cultural approaches in marketing...............................................................113
IV. Ethnic related issues and ethnic marketing .........................................................115
IV.1. Definitions of some principal concepts.............................................................116
IV.1.1. Ethnicity, community, race and tribe .........................................................116
IV.1.2. National identity, race identity and ethnic identity .....................................123
IV.2. Ethnic marketing..............................................................................................125
IV.2.1. Origin of ethnic marketing.........................................................................125
IV.2.2. Definition of ethnic marketing...................................................................126
IV.2.3. Factors of ethnic marketing .......................................................................130
IV.2.4. Effective ethnic marketing strategies .........................................................136
IV.3. Ethnic marketing in comparison with tribal marketing......................................138
IV.3.1. General concept of tribal marketing...........................................................138
IV.3.2. Key rules of tribal marketing .....................................................................141
IV.3.3. Important factors of tribal marketing .........................................................144
IV.3.4. Step to design tribal marketing strategy .....................................................147
IV.3.5. Tribal marketing practice...........................................................................148
IV.3.6. Tribal marketing vs. ethnic marketing........................................................150
IV.4. Ethnic marketing in comparison with community marketing ............................150

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IV.4.1. What is community marketing? .................................................................150
IV.4.2. Community marketing tools ......................................................................153
IV.4.3. What makes community marketing different?............................................155
IV.4.4. Community marketing as a larger concept and practice of ethnic marketing158
IV.5. Ethnic identity and ethnic consumption in academic research...........................158
IV.5.1. Ethnic identity research .............................................................................158
IV.5.2. Ethnic consumption behavior research.......................................................160
Conclusion...................................................................................................................161
CHAPTER 3................................................................................................................163
CONCEPTUAL MODEL AND..................................................................................163
RESEARCH HYPOTHESIS......................................................................................163
Introduction ................................................................................................................164
I. Conceptual model of the research...........................................................................165
I.1. Formulation of conceptual model........................................................................165
I.2. Constructs and measuring items..........................................................................168
I.2.1. Ethnic identity..............................................................................................168
I.2.2. Parental orientations.....................................................................................170
I.2.3. Ethnicfriendship orientation .........................................................................171
I.2.4. Other group orientation ................................................................................172
I.2.5. Situational orientation ..................................................................................173
I.2.6. Ethnic consumption behavior .......................................................................174
I.2.7 . Ethnic food consumption.............................................................................175
I.2.8. Moderator variables......................................................................................177
II. Hypotheses of the research ....................................................................................183
II.1. Factors influencing ethnic identity .....................................................................183
II.1.1. Parental orientations....................................................................................184
II.1.2. Ethnic friendship orientations......................................................................185
II.1.3. Other group orientations..............................................................................186
II.1.4. Situational factor.........................................................................................187
II.2. Factors influencing ethnic consumption behavior...............................................188
II.2.2. Friendship orientation .................................................................................190
II.2.3. Ethnic identity.............................................................................................191
II.3. Factors influencing ethnic food consumption.....................................................192
II.3.1. Situational factor.........................................................................................193
II.3.2. Ethnic identity.............................................................................................194
II.4. Factor influencing ethnic friendship socialization ..............................................195
II.4.2. Situational orientations................................................................................195
II.5. Interaction effects ..............................................................................................196
Conclusion...................................................................................................................197
PART II............................................................................................................................... 199
EXPERIMENTAL RESEARCH ....................................................................................... 199
Introduction ....................................................................................................................200
CHAPTER 4 ...................................................................................................................201
EPISTEMOLOGY AND ................................................................................................201
METHODOLOGY OF THE RESEARCH....................................................................201
Introduction ................................................................................................................202
I. Epistemological position and methodological approach........................................203
I.1. Epistemology......................................................................................................203
I.1.1. Positivism versus constructivism..................................................................203
I.1.2. Choice and justification of epistemology......................................................204

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I.1.3. Design of the research..................................................................................206
I.2. Methodological approach....................................................................................209
I.2.1. Quantitative versus qualitative approach.......................................................209
I.2.2. Measuring instrument- Online questionnaire ................................................211
I.2.3. Sampling approach.......................................................................................212
II. Churchill paradigm- Methodology to develop and validate variables and
constructs ....................................................................................................................217
II.1. Presentation of Churchill paradigm....................................................................217
II.2. Procedure to valid variables and constructs........................................................219
II.2.1. Definition of conceptual domain of construct..............................................220
II.2.2. Exploratory phase .......................................................................................220
II.2.3. Confirmatory phase.....................................................................................226
III. Methodology to verify the conceptual model and hypotheses.............................230
III.1. Structural equation modeling method ...............................................................230
III.2. Principal issues in structural equation modeling................................................231
III.3. Choice of statistic software for structural equation modeling ............................234
Conclusion...................................................................................................................237
CHAPTER 5 ...................................................................................................................240
RESEARCH RESULTS .................................................................................................240
Introduction ................................................................................................................241
I. Analysis of samples..................................................................................................242
I.1. Distribution of respondents by ethnic origin........................................................243
I.2. Distribution of respondents by nationality...........................................................244
I.3. Distribution of respondents by gender.................................................................245
I.4. Distribution of respondents by language..............................................................247
I.5. Distribution of respondents by religion................................................................248
I.6. Distribution of respondents by age ......................................................................250
I.7. Distribution of respondents by profession ...........................................................252
I.8. Distribution of respondents by time of residence in France..................................254
II. Factor analysis .......................................................................................................256
II.1. Parental Orientation towards Ethnicity...............................................................257
II.2. Parental Orientation towards Integration in French society.................................258
II.3. Ethnic Friendship Orientation............................................................................259
II.4. Out-group Orientation........................................................................................260
II.5. Situational Orientation.......................................................................................261
II.6. Ethnic Identity...................................................................................................262
II.7. Ethnic Consumption Behavior ...........................................................................263
II.8. Ethnic Food Consumption .................................................................................264
III. Hypothesis validation ...........................................................................................267
III.1. Analysis of constructs’ direct relation with global samples ...............................270
III.1.1. Effect on ethnic identity.............................................................................270
III.1.2. Effect on ethnic consumption behavior ......................................................271
III.1.3. Effect on ethnic food consumption.............................................................272
III.1.4. Effect on the socialization with ethnic friends............................................273
III.2. Analysis of the effect of moderator variables....................................................275
III.2.1. Effect of the gender ...................................................................................278
III.2.2. Effect of the age.........................................................................................279
III.2.3. Effect of profession....................................................................................279
III.2.4. Effect of residence time in France..............................................................280
III.3. Comparison of the result between PLS and AMOS with global sample ............281
IV. Analysis of main ethnic groups ............................................................................284
IV.1. Factor analysis .................................................................................................284

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IV.2. Testing model and hypothesis...........................................................................284
V. Discussion of findings.............................................................................................286
V.1. With global sample............................................................................................286
V.1.1. Effect on ethnic identity..............................................................................286
V.1.2. Effect on ethnic consumption behavior .......................................................288
V.1.3. Effect on ethnic food consumption..............................................................289
V.1.4. Effect on the socialization with ethnic friends.............................................290
V.2. Similarity and difference across ethnic groups...................................................290
V.2.1. Parental role................................................................................................290
V.2.2. Ethnic friends’ role .....................................................................................291
V.2.3. Out-group’s role .........................................................................................291
V.2.4. Situation’s role............................................................................................291
V.2.5. Ethnic identity’s role...................................................................................292
Conclusion...................................................................................................................293
CONCLUSION ...............................................................................................................294
I. Synthesis of the research.....................................................................................294
II. Contribution of the research .................................................................................296
II.1. Theoretical contribution.....................................................................................296
II.2. Managerial and professional contribution...........................................................297
III. Limit of the research ............................................................................................300
IV. Perspectives...........................................................................................................301
REFERENCE ..................................................................................................................... 304
ANNEX ............................................................................................................................... 336

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LIST OF FIGURE
Figure1: The American population age by ethnicity ................................................................24
Figure 2: Population of France in 2008 ...................................................................................51
Figure 3: Age pyramid of immigrant population in France......................................................54
Figure 4: Ethnic food market in France...................................................................................59
Figure 5: Concept of social identity theory..............................................................................70
Figure 6: Comparison of identity theory versus social identity theory .....................................80
Figure 7: Erikson’s epigenetic diagram ...................................................................................85
Figure 8: Ethnic identity formation process.............................................................................89
Figure 9: Immigrant's acculturation process and its link to ethnic marketing...........................98
Figure 10: Example of subcultures based on ethnicity, language and nationality in France....107
Figure 11: Cultural factors influencing consumer behavior and marketing strategy ............... 112
Figure 12: Ethnic marketing as a component of identity marketing and its principles............129
Figure 14: Steps to define effective ethnic marketing strategies.............................................138
Figure 15: Tribal marketing design steps...............................................................................147
Figure 16: Important factors of tribal marketing approach.....................................................149
Figure 17: Factors of community affecting community marketing.........................................152
Figure 18: Proposed model of ethnic identity, socialization factors and their impacts on ethnic
consumption behavior and ethnic food consumption.............................................................166
Figure 19: Hypothetico-deductive research process...............................................................207
Figure 20: Processus of web-based questionnaire diffusion...................................................212
Figure 21: Churchill paradigm- Suggested procedure for developing better measures ...........219
Figure 22: Factor analysis steps described by Rietveld & Van Hout (1993:239) ....................229
Figure 23: Classification global sample according to ethnic origin........................................243
Figure 24: Classification of global sample according to nationality.......................................244
Figure 25: Distribution of respondents according to nationality and ethnicity........................245
Figure 26: Classification of global sample according to gender.............................................245
Figure 27: Classification of global sample according to gender and ethnicity........................246
Figure 28: Classification of global sample according to language spoken..............................247
Figure 29: Classification of global sample according to language daily spoken and ethnicity 248
Figure 30: Classification of global sample according to religion practised ............................249
Figure 31: Classification of global sample according to religion practiced ............................250
Figure 32: Classification of global sample according to age..................................................251

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Figure 33: Classification of global sample according to age and ethnicity.............................252
Figure 34: Classification of global sample according to profession .......................................253
Figure 35: Classification of global sample according to profession and ethnicity ..................254
Figure 36: Classification of global sample according to time staying or living in France.......255
Figure 37: Classification of global sample according to time staying or living in France and
ethnicity................................................................................................................................256
Figure 38: Conceptual model................................................................................................268
Figure 39: Validation of hypotheses 1, 2, 3, 4, and 5 .............................................................271
Figure 40: Validation of hypotheses 6, 7 and 8......................................................................272
Figure 41: Validation of hypotheses 9 and 10........................................................................273
Figure 42: Validation of hypotheses 11 and 12 .....................................................................273
Figure 43: Validation of the model with global sample..........................................................275
Figure 44: Moderator variables'effect…………………………………………………………277

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LIST OF TABLE
Table 1: Population by race for the United States of America in 2000 and 2010 ......................24
Table 2: Buying Power of ethnic consumers in the United State of America............................25
Table 3: American consumers’ expenditures in 2009...............................................................26
Table 4: Ethnic origin in Canada.............................................................................................27
Table 5: Visible minoritythnic population in Canada...............................................................29
Table 6: People groups according to ethnicity in France in 2011 .............................................48
Table 7: Population of France Metropolitan from 2005 to 2008...............................................50
Table 8: Acquisitions of French citizenship during the period of 2005 to 2010........................51
Table 9: Immigrants in France by nationalities in 2007 and 2008 ............................................52
Table 10: Foreigners in France by nationalities in 2007...........................................................53
Table 11: Housing situation of households in France...............................................................55
Table 12: Synthesis of research on ethnic identity, ethnic affiliation and situational ethnicity..97
Table 13: Synthesis of research on acculturation of ethnic groups .........................................100
Table 14: Behavior of different ethnic groups in the United State of America........................108
Table 15: A comparison of tribe, ethnicity and community....................................................122
Table 16: Synthesis of constructs measuring ethnic identity..................................................159
Table 17: Ethnic identity perspectives in consumer research .................................................160
Table 18: Synthesis of constructs and measurements used in conceptual model.....................180
Table 19: Hypotheses on moderators’ effect..........................................................................196
Table 20: Synthesis of hypothesis .........................................................................................197
Table 21: Main strengths and limitations of qualitative and quantitative approaches .............210
Table 22: Origin of foreigners and immigrants in France.......................................................216
Table 23: Profile of persons taking part in experience survey................................................222
Table 24: Constructs and measuring items purified and retained after the pretest...................224
Table 25: Comparison of LISREL and PLS methods.............................................................236
Table 26: Heuristics for construct validity and model validity in the research........................237
Table 27: Profiles of the respondents.....................................................................................242
Table 28: Factor analysis for the construct of Parental Orientation towards Ethnicity............258
Table 29: Factor analysis for the construct of Parental Orientation towards Integration in French
society..................................................................................................................................259
Table 30: Factor analysis for the construct of Ethnic Friendship Orientation .........................260
Table 31: Factor analysis for the construct of Other Group Orientation .................................261

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Table 32: Factor analysis for the construct of Situational Orientation....................................262
Table 33: Factor analysis for the construct Ethnic Identity ....................................................263
Table 34: Factor analysis for the construct of Ethnic Consumption Behavior ........................263
Table 35: Factor analysis of Ethnic Food Consumption........................................................265
Table 36: Factor analysis with global samples.......................................................................267
Table 37: Quality indices for justification of research model.................................................269
Table 38: Hypotheses related to factors influencing ethnic identity .......................................271
Table 39: Hypotheses related to factors influencing ethnic consumption behaviors ...............272
Table 42: Validation of hypothesese in the model for global sample with LISREL................274
Table 43: Hypotheses on moderators’ effects.........................................................................277
Table 44: Effect of gender.....................................................................................................278
Table 45: Effect of age..........................................................................................................279
Table 46: Effect of profession ...............................................................................................280
Table 47: Effect of length residing in France.........................................................................280
Table 48: Validation of effect of four moderator variables gender, age, profession and time of
residence in France...............................................................................................................281
Table 49: Comparison of hypothesis testing with LISREL and PLS ......................................283
Table 50: Testing hypotheses on three ethnic groups .............................................................285

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INTRODUCTION
Managerial context of the research
In such developed and culturally diverse economies as the United State of America,
United Kingdom, Canada, France, and Australia, etc. different minority ethnic groups co-exist
with the mainstream one, and there are interactions between their cultures with the host one,
that is why market segmentation based on criterion of ethnicity would be increasingly crucial
[O’Guinn, T., Imperia G. and MacAdams, E., 1987].
For years now, ethnicity has been considered as important factor affecting marketing,
together with cultural differences, it is the base to understand customers and design marketing
strategies responding to their needs, demands and interest. Ethnic marketing has been regarded
as a label used by the marketers all over the world to identify a globalization trend that a "one
size fits all" model will not work for every business anymore. Instead, segmentation of different
groups of customers as well as customized products and services according to these different
groups evidently bring both clients and product/service providers more benefit, and as a result
gain their loyalty and market fragment.
From the side of businessmen, ethnic minority groups are evaluated as gold ores waiting
to be mined thanks to their easy accessibility and increasing buying power and because the
mainstream market becomes so oversaturated. If digging correctly, then at least entrepreneurs
could get benefits in four aspects: (i) in profit, (ii) in loyalty from ethnic customers who are
usually underserved in host culture, (ii) in lifetime value of ethnic audiences; and (iv) in lower
competitiveness compared with the mainstream one since it is under-penetrated market.
Nevertheless, well identifying group of ethnic customers and satisfying their needs remains the
key to a successful ethnic marketing strategy and business.
From the side of ethnic consumers, ethnic focused businesses help them satisfy their
concrete needs and demands that they cannot find in the mainstream market. Positively, this
allows them to integrate in their living environment without melting or losing their own identity
and typically valuable ethnical and cultural characteristics.
If the United Nations of America has long time known as either a « melting pot », it is
recently called with new name "salad bowl". It is because of ethnic diversification which
derives from immigration flow. In fact, immigration at national and international levels now

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transforms each country to a "salad bowl" in different sizes and levels, depending on the
diversity of ethnicities, cultures, religions, and depending on the changes in socio-demographic
structure of each nation. As a result, the market has to take into account new demands and
behaviors of different groups of customer regarding their basic demand (education, health,
food, clothes) and others (communication, beauty, transportation, etc), originating a new
marketing approach: ethnic marketing.
It is found that ethnic marketing is an important aspect of lifestyle marketing which
allows a company tailoring its products and services towards the customer's lifestyles. It is a
precision marketing involving in-depth consumer knowledge. First, it must know who the
customers are by demographic and consumer behavior profile. Second, it takes advantages of
their cultural media and events to communicate with customers. Last but not least, it must
design and implement ethnic strategies by selection of sales staffs, products and services,
distribution channels, promotion periods, so on so forth to meet their needs and desires.
In France, it is estimated that over 12 million people belong to ethnic communities,
representing more than 20% of the total population, of which about 6 million from Northern
Africa; “3.5” million from Antillais, Domtom and other African countries; 1 million from Asia;
and 2 million from other European countries [Tréguer and Segati, 2005: 216]. This number
continues to grow over years. Such high number of ethnic populations shows great potentiality
of ethnic consumption. Ethnic marketing can be therefore effective in the French multicultural
environment, because ethnic marketing in France is big, is growing, is concentrated, and is
profitable with high purchasing power. However, despite of big ethnic populations, ethnic
marketing has been underdeveloped in France.
The purpose of this research is to clarify current situation of ethnic population, ethnic
identity, and ethnic consumption behavior in general and in the sector of food in particular in
this multi-ethnic and multi-cultural country. Through this lens, hopefully the situation of ethnic
marketing in France is better described.
Theoretical context of the research
Dealing theoretical context of the research on ethnic identity, ethnic consumption
behavior, and ethnic food consumption, much theoretical knowledge involves, for example
theories on social identity, ethnic identity, identity development, culture, sub-culture,
acculturation, ethnicity, tribe, community, ethnic marketing, as well as academic research on
these topics up to now.

16
Theoretical foundation of the research includes three main theories. Firstly, the social
identity theory, developed by Henri Taifeil and John C. Tuner, depicts both conceptualization
and measurement of ethnic identity. Through this, some principal elements helpful to design
relevant ethnic marketing strategies are highlighted, including (i) common identity and behavior
of an ethnic group; (ii) the level of ethnicity; (iii) the level of membership of an ethnic person
towards a particular ethnic group, and (iv) negative factors that may influence ethnic members,
such as prejudice, stereotypes, discrimination... All these factors serve the purpose of
understanding the self and the group of a particular ethnic population. However, this theory is
limited in understanding why and how ethnic identity derives. Therefore, it is essential to take
an in-depth analysis on the process of ethnic identity development and cultural intervention
during the formation of ethnic identity through the lens of ethnic identity development theory
and the one on culture.
Secondly, the identity development theory is reviewed so that ethnic identity could be
understood as a developmental process. This involves not only the psychological study on ego
identity model of Erik Erikson (1986), but also empirical study on personal identity conducted
by James Marcia (1980). Combining ego identity process and personal identity development,
Phinney et al. propose a particular process for ethnic identity formation. According to these
authors, the two principal processes include exploration and commitment that influence at
different stages of ethnic identity formation, from childhood, to adolescence and young
adulthood, then finally adulthood. In fact, the authors share the same idea with Marcia (1980)
when using four statuses of personal identity in the ethnic identity formation process: (i)
identity diffusion or unclear identity; (ii) foreclosure or commitment to identity; (iii)
moratorium or exploring identity; and (iv) achieved identity or clear identity. Also, they agree
with Erikson (1968) that adolescence and young adulthood mark the dramatic developmental
changes in terms of identity. Accordingly, starting with the assumption that individuals are
unclear in terms of their personal identity at childhood, the ethnic identity of individuals is
formulated gradually, either to foreclosure, meaning commitment without exploration, or
moratorium, meaning merely exploration. Finally, their ethnic identity becomes clearer thanks
to the joint process of exploration, then commitment to the identity chosen [Phinney J. S. and
Ong A.D., 2007]. However, this final status could be either stable or not, in case of unstable, it
continues to explore for identity purpose [Phinney, 2006].
Lastly, theory on culture, sub-culture, counter-culture, acculturation, etc. and their
influences on ethnic identity and marketing are presented as each ethnic group hold their own
cultures, and differs each other according to time and context. Furthermore, as ethnic marketing

17
takes all cultural factors mentioned above into play, it starts by "recognizing culture as the
frame and the essence driving contemporary business". Then, it "discovers the hidden
predominant values and beliefs supported by an in-depth underlying world located at the heart
our cultural roots", where «products are charged with symbolic meanings" and market agents
(consumers, customers, clients, entrepreneurs, employees, competitors, distributors...)
[Dagoberto Paramo Morales, 2005]. In this section, comprehensive studies on culture are
provided. Especially in the theory of culture, subculture, acculturation and the transmission of
culture among different social agents are put on focus.
In addition, literature review also provides an in-depth study on ethnic related issues and
ethnic marketing which aims at defining not only basic concepts of ethnicity and ethnic identity
but also differences between ethnicity versus tribe, race, community; ethnic identity versus
national identity, race identity; and ethnic marketing versus community and tribal marketing.
On each theoretical section, a review of researches on ethnic identity, socialization factors, their
relationship with consumption behavior and food consumption is synthesized which shows
fruitful results in developed countries with ethnic diversity, such as the United States of
America, Canada, the United Kingdom, Germany, Australia… but little research on this topic in
France, especially in ethnic marketing perspective and quantitative method.
The literature review is useful in making a solid theoretical foundation for the study on
ethnic identity, socialization factors and their impacts on ethnic consumption behavior and
ethnic food consumption in France. Based on this, an empirical study is conducted on 450
ethnic individuals from 17 to 70 years old, rather equal in terms of gender, with diversity in
terms of professions, living in France from short time to very long time, and with different
ethnic origins but mainly belonging to Northern African, Sub-Saharan African and Eastern
Asian groups.
Rationale and objective of the research
The study is designed to examine the conceptualization and measurement of ethnic
identity as a multidimensional and dynamic construct. It also aims at discovering the degree to
which ethnic identity and other socialization factors influence ethnic consumption behavior in
general, and ethnic food consumption in particular of different ethnic groups in France.
Five research questions are defined as the followings:
1- Who are representatives of ethnic population in France that closely associated to the
consumption of ethnic products in general and ethnic food in particular?

18
2- What are influent factors determining the ethnic friendship socialization of ethnic
population?
3- What are the factors contributing to form ethnic identity and to what extent do they
influence ethnic identity?
4- Which are the factors that have the most influence on ethnic consumption behavior?
5- What motivate ethnic individuals towards the consumption of ethnic food?
Research structure
The research is divided into two parts. The first concentrates on context, theoretical
background and academic research on ethnicity, ethnic identity and ethnic marketing, that the
conceptual model and hypotheses of the research are grounded. The second include empirical
study which presents epistemology and methodology, research results, discussion and
perspectives of the research. Each part consists of two chapters.
Chapter one starts providing general context of ethnic related issues, at world wide level
in general and particularly in France. As can be seen, France is among countries with long
history of immigration. Therefore, this country has a diversity of ethnicity and cultures. As
Anne Sengès reveals, after the United State of America, the United Kingdom has applied ethnic
marketing, the same things happen to German and Nederland. However, in Europe, France
continues to resist with the ethnic temptation. Due to its special characteristics, ethnic
marketing has been very weakly developed, or changed in other kinds of variations, or
alternatives. This section is supposed to discuss ethnic related issue in France, for instance
ethnic population, ethnic products and suppliers, etc... It also attempts to understand what
restraint the existence or development of ethnical issues within the territory of this nation.
For the second chapter, it deals with theoretical background, including (i) social identity
theory, developed by Henri Taifeil and John C. Tuner, depicts both conceptualization and
measurement of ethnic identity; (ii) identity development theory which involves not only the
psychological study on ego identity model of Erik Erikson (1986), but also empirical study on
personal identity conducted by James Marcia (1980) and on ethnic identity formation done by
Phinney et al. (1992); (iii) theory on culture and its influences on ethnic identity and marketing;
(iv) clarification of basic concepts concerning ethnicity, ethnic identity, and ethnic marketing.
All of these theoretical backgrounds serve the purpose of developing conceptual model and
hypotheses. Therefore, at the end of this chapter, conceptual models with concrete latent

19
variables, manifest variables, and moderator variables together with hypotheses on relationships
among these variables are discussed in detail.
The third chapter concerns epistemology and methodology to conduct the research. For
epistemology, the research applies positivism and hypothetic deductive approach. For
methodology to conduct empirical study, it employs quantitative approach, online
questionnaire, and convenience sampling method. Last but not least, while Churchill paradigm
is considered as methodology to develop and validate variables, structural equation modeling
method is taken in use to verify conceptual model and hypotheses.
The last chapter presents research results, which involves not only the analysis of
sample, factor analysis but also hypothesis validation. For better understanding of the sub-
group, analysis of main ethnic groups taking part in the survey is done. It ends up with
discussion of findings with global sample, as well as across ethnic groups.
Finally, contribution of the research, its limitations and perspectives are mentioned in
conclusion.

20
PART I
ETHNICITY, ETHNIC IDENTITY, AND
ETHNIC MARKETING

21
CHAPTER I
CONTEXT OF THE RESEARCH

22
Introduction
Before tackling the issues of ethnic marketing in the French society, it is vital to understand
the general situation of ethnic marketing development in the world. First and foremost, since
mentioning ethnic marketing, rather it is the concern of developed countries with vast diversity
of ethnicity as consequent of immigration. Therefore, some remarkable countries with their
multiple ethnic populations are supposed to be discussed. In addition, an overview of ethnic
products and services in different sectors, including finance and banking, telecommunication,
food, cosmetics, technology, media and communication, hospitality, health, so on so forth…
existing in this global village are presented in the second section. The purpose of this chapter is
that through the lens of international view, ethnic related issues are provoked and understood in
all-sided manner.

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I. Ethnic marketing development in world-wide situation
I.1. Countries with ethnic diversity
In fact, every country is already embedded with ethnic diversity. However, in this
modern society, the globalization and international movement make the earth become just a
small global village where all countries become more and more multiethnic and multicultural. It
is certain that this is still on the move merging population, changing socio-demographic
structure in every country. However, developed nations are the most concerned with this issue
due to huge immigration.
I.1.1. United States of America
If we take the United State of America (USA) as the biggest one touching by this issue,
it is easy to recognize ethnic diversity in this country, which has constituted of immigrants and
their descendants. According to the Joshua Project- A ministry of the U.S. Center for World
Mission, the population of more than 313 million in the US is classified into 365 ethnic groups,
which belong to five main ethnic groups: the Caucasian or the White, the African American, the
Hispanic American, the Asian American and the Indian American with such primary religions
as Christianity, Islam, Hinduism, Buddism and other ethnic religions.
As can be seen in the below table, there is a moderate changes in the socio-demographic
of the US during the period of 2000 to 2010. Within an increase of more than 27 million (or
9.7%) in the national population, 43.3% is due to the increase of Asian in American society,
whereas the native Hawaiian and other Pacific Islander, American Indian and Alaska Native
represents, and the African American represent 35.4%, 35.4% and 18.4% respectively. A big
proportion for this increase can be explained by the increase of those of two or more races,
meaning the one mixed with ethnicity: 32%.
In addition, it should be noted that despite of the increase in population, the “White”
does not remain its 75% of the total population as in 2000; alternatively, they represent 72.4%
of the total population in 2010. Furthermore, it is easy to see a rapid change in the population of
the Asian American when instead of representing 3.6% of the total population in 2000; it now
changes to account for 4.8%. The increase in ethnic population between 2000 and 2010 shows
the importance of this group in the US society, besides the mainstream population.

24
Table 1: Population by race for the United States of America in 2000 and 2010
Race Year 2000 Year 2010 Change from 2000 to
2010
Number % of total
population
Number % of total
population
Number % of total
population
One race 274,595,678 97.6 299 736 465 97.1 25 140 787 9.2
White 211,460,626 75.1 223,553,265 72.4 12,092,639 5.7
Black or African
American
34,658,190 12.3 38,929,319 12.6 4,271,129 12.3
American Idian
and Alska Native
2,475,956 0.9 2,932,248 0.9 456,292 18.4
Asian 10,242,998 3.6 14,674,252 4.8 4,431,254 43.3
Native Hawaiian
and other Pacific
Islander
398,835 0.1 540,013 0.2 141,178 35.4
Some other race 15,359,073 5.5 19,107,368 6.2 3,748,295 24.4
Two or more
races
6,826,228 2.4 9,009,073 2.9 2,182,845 32.0
Total population 281,421,906 100 308,745,538 100 27,323,632 9.7
Source: U.S. Census Bureau
Then, if taking into account the population by age and ethnicity, it is easy to recognize
that the ethnic minorities represent a high proportion of younger population in the US society.
According to the synthesis 2011 of Nielsen Company, these ethnic populations may have
different perspectives and behavior, compared to the mainstream population, which should be
aware by the marketer and producers, especially in their design of marketing strategies and
product development to satisfy the requirements of these target groups.
Figure1: The American population age by ethnicity

25
Moreover, the buying power of these ethnic consumers has a dramatic change over the
years, which affirm their potential consumption. As illustrated in the table of buying power of
ethnic consumers in the United States of America over the years, it is seen that the buying
power of each ethnic consumer group nearly double after each ten years. However, the Hispanic
population shows its great purchasing power when it is estimated to be the leader of all ethnic
group, in 2013 with 1,386.2 billion dollars. The second important ethnic group in American
society is African American group when its buying power follows with estimated 1,239.5
billion dollars.
Table 2: Buying Power of ethnic consumers in the United State of America
Ethnic population group 1990
(in billion $)
2000
(in billion $)
2008
(in billion $)
2013 (estimated)
(in billion $)
African American 318.1 590.2 913.1 1,239.5
Hispanics 211.9 489.5 961.0 1,386.2
Asian American 116.5 268.9 509.1 752.3
Total 645.5 1348.6
Source: A portrait of black America on the eve of 2010 census
A closer look at the buying power of ethnic and minority populations, including African
Americans, Asian Americans and Hispanics, is all it takes to persuade advertisers to jump into
ethnic market. Let's see the U.S consumers’ expenditures in 2009 as an example.
Although the Asian American is positioned at low level of buying power as indicated
the table below, their annual consumption per person is at the peak of more than 56,000 dollars,
compared to any other ethnic group. Like other ethnic groups, housing, transformation and food
are among items the most consumed, but, it should be noted that these expenditure is higher for
the Asian American, compared to other ethnic groups. Higher income can partly explain their
higher expenditure. Nevertheless, the expenditure per items shows the budget that each ethnic
group spends in their living. Together with the average income of these groups, the marketers
can understand better the financial and living conditions of each group to design appropriate
products and services if they take any of these ethnic groups as target consumers.

26
Table 3: American consumers’ expenditures in 2009
2009, all
consumer
units
Race
Hispanic origin or
Latino
White and all other races
and Asian Black or
African
American
Hispanic
Non-
Hispanic
Total
White and
all other
races
Asian
..Income before
taxes 62 857 65 405 64 898 76 633 44 397 49 930 64 591
..Income after
taxes 60 753 63 113 62 663 73 107 43 654 49 185 62 305
Average annual
expenditures
(dollars) 49 067 50 957 50 723 56 308 35 311 41 981 50 015
..Food 6 372 6 622 6 585 7 565 4 524 6 094 6 409
..Alcoholic
beverages 435 466 471 350 201 267 457
..Housing 16 895 17 362 17 224 20 395 13 503 15 983 17 016
..Apparel and
services 1 725 1 721 1 704 2 150 1 755 2 002 1 689
..Transportation 7 658 7 983 7 950 8 784 5 302 7 156 7 725
..Health care 3 126 3 314 3 351 2 498 1 763 1 568 3 335
..Entertainment 2 693 2 869 2 894 2 270 1 404 1 664 2 829
..Personal care
products and
services 596 603 606 557 536 532 604
..Reading 110 118 119 111 46 36 119
..Education 1 068 1 134 1 080 2 327 591 707 1 116
..Tobacco products
and smoking
supplies 380 400 413 122 230 182 406
..Miscellaneous 816 843 853 611 626 544 853
..Cash
contributions 1 723 1 784 1 799 1 452 1 280 1 015 1 818
..Personal
insurance and
pensions 5 471 5 736 5 674 7 117 3 550 4 230 5 638
Source: U.S. Census Bureau
It is certain that the rise in ethnic identity is shifting behavior in the U.S. consumer
market. Consequently there is a necessity in knowing and understanding representatives of
different ethnic groups in American society, as well as know how to connect with them as they
are not the mainstream but represent the new main stream in this society. Acknowledging
ethnic diversification, more and more companies see "ethnicity" as natural but vital factor and
decide to focus their marketing strategies on the immigrants and their descendants with
different origins and ethnicities, which makes the United States of America known as the
birthplace of ethnic marketing so far.

27
I.1.2. Canada
The population born outside Canada increases recently despite the fact that 83.8% of the
population in this country is Canadian-born. Today, this country has over 100 various ethnic
groups, most of whom have retained their respective languages and cultures and the Canadian
government’s policy of multiculturalism encourages them to preserve their distinctive heritage
and also share that with Canada’s remaining population.
Canada consists of primarily two founding ethnic communities: the British and the
French. British Canadians have mostly exercised dominance over Canada. However the French
Canadians were only less successful in maintaining their distinctive culture and language
mostly in the Quebec region. During the 1960s, the French minority population put pressure on
the government to avoid French culture and language from being overthrown by the English
society. As a response, the government of Canada took on its shoulder the responsibility of
devising ways to prevent discrimination against different ethnic groups. Other Canadian ethnic
groups are Germans, Ukrainians, Italians, Chinese, Dutch, Indians, Aboriginals, Jewish,
Moroccans, African Americans, South Asians, Latin Americans, Greek, Arab.
Table 4: Ethnic origin in Canada
Ethnic origin Population (in person)
Total - Ethnic origin(1)
31,241,030
British Isles origins 11,098,610
French origins 5,000,350
Aboriginal origins 1,678,235
Other North American origins 10,408,735
Caribbean origins 578,695
Latin, Central and South American origins 360,235
European origins 9,919,790
African origins 421,185
Arab origins 470,580
Maghrebi origins 94,445
West Asian origins 302,555
South Asian origins 1,316,770
East and Southeast Asian origins 2,212,340
Oceania origins 58,500
(1): The sum of the ethnic groups in this table is greater than the total population count because a person may report more than
one ethnic origin in the census
Source: Statistics Canada, 2006 Census of Population
To better understand the socio-demographic situation of the country, the Canadian
government also collects statistics related to ethnic origin or cultural origin of its population, in
which ethnic or cultural origin refers to the ethnic or cultural groups to which the respondent's
ancestors belong, meaning their ethnic roots or ancestral background of the population. It

28
should not be confused with citizenship or nationality. Accordingly, this society includes 110
population groups with the following origins:
• British Isles origins: English, Irish, Scottish, Welsh
• French origins: Acadian, French
• Aboriginal origins: Inuit, Métis, North American Indian
• North American origins: American, Canadian, Newfoundlander, Québécois...
• Caribbean origins: Antiguan, Bahamian, Bermudan, Carib, Cuban, Dominican,
Grenadian, Guyanese; Haitian, Jamaican, Kittitian/Nevisian, Martinique, Puerto Rican,
St. Lucian, Trinidadian/Tobagonian, Vincentian/Grenadinian, West Indian, Caribbean
• Latin/Central/South American origins: Argentinean, Belizean, Bolivian, Brazilian,
Central/South American Indian, Chilean, Colombian, Costa Rican, Ecuadorian,
Guatemalan, Hispanic, Honduran, Maya, Mexican, Nicaraguan, Panamanian,
Paraguayan, Perivian, Salvadorean, Uruguayan, Venezuelan
• European origins: Weasten European Origins (Austrian, Belgian, Dutch, Flemish,
Frisian, German, Luxembourger, Swiss) Northern European Origins (Danish, Finish,
Icelandic, Norwegian, Swedish, Scandinavian), Eastern European Origins
(Byulorussian, Czech, Czechoslovakian, Estonian, Hungarian, Latvian, Lithuanian,
Polish, Romanian, Russian, Slovak, Ukrainian), Southern European Origins (Albanian,
Bosnian, Bulgarian, Croatian, Cypriot, Greek, Italian, Kosovar, Macedonian, Maltese,
Montenegrin…
• African origins: Afrikaner, Akan, Amhara, Angolan, Ashanti, Bantu, Sub-Saharan
African, Burundian, Cameroonian, Congolese, Eritrean, Ethiopian, Ghanaian, Guinean,
Ivorian, Kenyan, Nigerian, Rwandan, Senegalese, Somali, Sudanese, Tanzanian, South,
etc.
• Arab origins: Egyptian, Iraqi, Jordanian, Kuwaiti, Lebanese, Libyan
• Maghrebi origins: Algerian, Berber, Moroccan, Tunisian, etc.
• West Asian origins: Afgan, Armenian, Assyrian, Azerbaijani, Georgian, Iranian, Israeli,
Kurd, Pashtun, Tatar, Turk, etc.
• South Asian origins: Bangladeshi, Bengali, East Indian, Goan, Gujarati, Kashmiri,
Nepali, Pakistani, Punjabi, Sinhalese, Sri Lankan, Tamil, etc.

29
• East and Southest Asian origins: Burmese, Cambodian, Chinese, Filipino, Indonesian,
Japanese, Korean, Laotien, Malaysian, Singaporean, Taiwanese, Thai, Tibertan,
Vietnamese…
• Oceani orgins: Australian, New Zealander, Pacific Islands origins (Fijian, Hawaiian,
Maori, Polynesian, Samoan…)
Among ethnic population in Canada, some are considered as visible minority population
due to their big number of population, for example the South Asian, Chinese, Sub-Saharan
African, Latin American, so on so forth. This can be seen clearer in the following table
Table 5: Visible minoritythnic population in Canada
Population (in person)
Total Population 31,241,030
Total visible minority population(1)
5,068,095
South Asian(2)
1,262,865
Chinese 1,216,565
Sub-Saharan African 783,795
Filipino 410,700
Latin American 304,245
Arab 265,550
Southeast Asian(3)
239,935
West Asian(4)
156,695
Korean 141,890
Japanese 81,300
Multiple visible minority(5)
133,120
Visible minority (not included elsewhere)(6)
71,420
Not a visible minority(7)
26,172,940
(1): The Employment Equity Act of Canada defines visible minorities as “persons; other than Aboriginal peoples, who are non-
Caucasian in race or non-white in colour”.
(2)For example, Est Indian, Pakistani, Sri Lankan, etc.
(3) For example, Vietnamese, Cambodian, Malaysian, Laotien, etc.
(4) For example Iranian, Afghan, etc
(5) Those belonging to more than one visible minority group
(6)For example Guyanese, West Indian, Kurd, Tibertan, Polynesian, Pacific Islander
(7) Aboriginal people and those not considered to be members of a visible minority group
Source: Statistics Canada, 2006 Census of Population
There is une diversity of ethnic population in Canada according to generations.
Principally, there are three groups of generations for ethnic people. The first generation
includes those born outside Canada. For the most part, these are people who are now, or have
ever been, landed immigrants in Canada. However, a small number of them are born outside
Canada to parents who are Canadian citizens by birth. In addition, the first generation includes
people who are non-permanent residents, who come from another country living in Canada on
work or study permits or as refugee claimants, and any family members living with them in

30
Canada. Meanwhile the second generation represents persons born inside Canada with at least
one parent born outside Canada and the third generation includes persons born inside Canada
with both parent born inside Canada [Canada, 2006 Census of Population].
According to the population census of Canada in 2006, the visible minority groups has
higher unemployment rate compared to the invisible minority groups. Among ethnic groups,
those with the highest unemployment rate include Arab (13%), Sub-saharan African and West
Asian (10.7%), Latin American (9%), South Asian (8.6%), Southese Asian and Korean(8.5%),
and Chinese (7.5%).
I.1.3. Australia
With 143 ethnic groups in its approximately 23 million populations, nowadays Australia
acknowledges a high proportion of ethnic people: 40% of its population was born oversea or
having at least one parent born oversea. These ethnic people mainly include those speaking
Chinese, Italian, Greek, Arabic and Vietnamese at home. They are defined by the Department
of Immigration and Multicultural Affairs thanks to what they call "minimum core set"-
consisting of such variables as country of birth of person, main language other than English
spoken at home, proficiency in spoken English and indigenous status; and "standard set"
covering "minimum core set" and other variables, for example ancestry, country of birth of their
parents, first language spoken, language spoken at home, religious affiliation and year of arrival
in Australia. Like the United States of America, the migrants and their descendants have much
contributed to the constitution of Australia country. Therefore, ethnic activities and business are
much respected here.
It is necessary to mention the Ethnic Business Awards-one of the longest Australian
business awards, created by the founder Joshepth Assaf since its inception in 1988, for the main
objective of celebrating the success of migrant contribution to Australian business and the
economy. Initially hosted and sponsored by the National Australia Bank, now it has got much
sponsorship from Singapore Airlines, Telstra, Gulf Air, Emirates and MBF along with
Government Departments such as the Department of Industry, Tourism and Resources,
Austrade and Centrelink as well as, enormous support from various media outlets, providing the
awards with national and international exposure, namely SBS Television, Australian Network,
Aurora Community Channel, El Telegraph (Arabic), The Sydney Korean Herald, Chieu Duong
Vietnamese Daily, Sing Tao Daily Chinese Newspaper, Indian Link, Neos Kosmos (Greek) and
1688 Chinese Newspaper Group. Up to now, Ethnic Business Awards include Business Migrant

31
Awards, Ethnic Media Awards, the Arts, Women in Business and Initative Award as
recognition of Australians from diverse cultural and ethnic backgrounds, who have followed
and realized their dreams successfully despite of hardship and difficulties1
.
For example, in 2011, more than 700 nominations from 57 different countries of origin
participated in Ethnic Business Awards. Finally, a migrant named Peter Puljich, who has built
accommodation for thousands of Australian baby boomers became winner of the top prize at
the 23rd
Ethnic Business Awards for the Medium to Larde Business Category. Arriving from
Croatia with little money and English language proficiency, he has set up his own company
Living Gems since 1982 and has developed some of the nation’s largest and most successful
residential villages and resorts. In the same year, Micropace Pty Ltd-led by former refugee,
Michael Cejnar, who arrived in Australia with limited English proficiency- received the
Australian Ethnic Business Award in recognition of small business but excellence and
contribution to society achieved by a first generation immigrant to Australia. In fact, Mr Cejnar
became a heart surgeon and developed a specialist heart device to help save lives while his
company is a leader in cardiac stimulator sales in the US and worldwide, with stimulators based
in over 2000 electrophysiology laboratories in over 45 countries. Micropace prides itself in the
highest quality ergonomic product design, manufacture and support. In addition, Complete
Workwear Services Pty Ltd. - an Indigenous owned and managed laundry and dry cleaning
business- is the Indigenous in Business Category Winner within the Ethnic Business Awards.
Starting the business with no asset, the company now becomes specialists in the niche of the
Airline Industry with only 40 employees, who work hard every day to wash, dry, iron, fold and
package items, and tries to provide fast and flawless service to its customers base with airlines
operating from Tullamarine and Essendon Airport such as Air New Zealand, Emirates, Cathay
Pacific, V Australia, China Airlines, China Eastern Airlines, Emirates Airlines, Korean Air,
Qantas, Philippine Airlines, Singapore Airlines, Shanghai Airlines, Thai Airways, Vietnam
Airlines. In fact, this awards received much support, not only from the sponsors and partners,
but also the Australian government and its people as it recognizes of the contribution of
Australia’s diverse people in driving business and prosperity to transform their experience and
spirits of enterprises into the nation's fortune, those from the first inhabitants to more recent
waves of migrants choosing this great land to settle.
However, not only business set up by different ethnic people are respected, but also
ethnic population considered as the customers are highly evaluated when products and services
1
Source: http://www.ethnicbusinessawards.com

32
designed to serve specifically different cultural and ethnic population are developed and
focused.
I.2. Ethnic products and services worldwide
At international level, it is seen that there is a rapid change in socio-demographics since
the world become a global village, where people move around to find their better opportunities,
and integrate in local life while trying to keep their own culture and value. This can be
illustrated with a big migration from the Middle East, Asia and Africa to Europe, or from
Europe, Africa, Philippine, India and Pakistan to Gulf countries of the Middle East. As for
African countries rich in mineral, it is easy to see a big flow of Chinese or Indian.
Within a country, this can be seen from the example of the United States of America
where a huge population of American Hispanics, African American and Asian American settle
down. Another illustration from Europe is France, one of the countries with big immigration
from every corner of the world, especially French-speaking countries from Africa, Asia and a
large number of Arabs. Similarly, the socio-demographic changes within a nation when ethnic
minorities can be found moving from rural to urban area for growth opportunities while a
certain ethnos of the country can move to rural area for different reasons.
As a result, a market often includes different ethnic groups of consumers. For marketing,
this means that the purchasing power of different ethnic groups does not remain the same and
that someone born and living in their mother land does not have the same needs and tastes like
the one with the same origin but growing or living in other countries.
Given these movements, it is believed that standardized marketing approaches that
ignore the differences in culture, symbol and practice of different client groups within a single
national economy are unlikely to effectively reach ethnic groups with a strong sense of identity.
It is even less appropriate to ignore these groups of consumers, especial when their purchasing
power is increasing dramatically. Instead, the companies need to customize their products and
services for different groups of people as well as to find strategic marketing plan to serve their
diversified clients and to gain customers as markets fragment. It is also anticipated that the
more a group of customers is cared for, the more this group engages with the brand and the
customized products or services. For these reasons, ethnic marketing has been applied in
different fields, showing its strong perspectives in bringing adapted products to ethnic
customers as well as prompt solutions to improve client managements. For example, it can be
seen in financial, food, beauty, housing, textile, communication, touristic products and services,

33
etc. targeted to particular ethnic consumers in such multicultural countries as the US, Canada,
Australia, German, France, UK, etc, and even in emerging countries like China, India, and
some Latin American countries, etc. The main objective of this section is to present some ethnic
products or cases, regarded as examples or application of ethnic marketing in different fields.
I.2.1. Banking sector
This can be firstly shown in the banking sector in the USA where the banks use ethnic
banking to identify their main ethnic groups of customers. As indicated Kuehner Hebert.K., the
growth of East West Bank in the US is among those thanks to their focus on ethnic Chinese
and Koreans. Targeting at first the Chinese American in Southern California, from the 70s to
the 90s, the bank conducted a traditional savings and loan business by making predominantly
long-term, single family residential and commercial and multifamily real estate loans. Now it
also provides loans for commercial, construction, and residential real estate projects and for the
financing of international trade for companies primarily in California. Not only products have
been designed to meet the demand of these customers, for example low cost pass book savings,
money market deposit, and credit for real estate and business, but also the banking services
have been adapted to better serve these clients, for instance trilingual branch systems where
Mandarin, Cantonese and English can be spoken to facilitate their clients [Kuehner Hebert, K.
2003].
With the Bank of America, it has a long history of commitment to immigrants of diverse
ethnic origins, their development, growth, and well-being in the United State of America. It has
been successful in penetrating the ethnic remittance market by innovating its remittance
products like SafeSend in May 2002, which at first targeted exclusively the Hispanic population
in five states: Texas, California, Arizona, New Mexico and Nevada based on their increasing
and growing importance of the remittance industry. Then the product also drives towards the
prominent ethnic groups of Filipinos and Vietnamese. Beside remittance, it was also one of the
pioneer in providing Hispanics loans, checking and mortgage products.
Targeting Hispanic population in America, the Bank of America has been lauching its
largest brand and product advertising campaign exclusively focusing Hispanic consumer, for
instance, it has included the tagline in Spanish "Creemos en Ti", meaning "We believe in you"
on television, radio and its print advertisement, signifying its commitement to healping
Hispanic consumers realize their financial dreams. Particularly with the product SafeSend, it
partnered with Lopez Negret Communications, a Houston-based, Hispanic owned and operated

34
agency specializing in Hispanic marketing to develop its advertising campaign. Accordingly, a
Mexican Consulate Identification Program has lauched, in which the bank accept the Mexican
Consulate Identity card on a nationwide basis. This "Matricula Consular" card has allowed
more Hispanic to open new accounts and cash checks. Furthermore, in its systems, the bank
facilitates its customers with bilingual staffs, who can communicate target ethnic minority
groups either in their native language or English. All its collateral materials, from brochure to
television, print and radio advertising have been created and developed directly in Spanish,
rather than translating from English into Spanish. Therefore, by using message directly to
Hispanic individuals and designing products and services specifically to help customers to
achieve their financial dreams, the bank has demonstrated an deep understanding and respect
for their specific cultural needs and preferences2
.
More and more banks in the US have applied ethnic marketing in their strategy. As
indicated Shanmuganathan.P et al., "While a number of US banks have already become
experienced and well-positioned in this market, other more generic banks are identifying the
need to be more informed and responsive to the needs of their substantial base of ethnic
customers and to those who are not yet banking customers" [Shanmuganathan.P et al., 2004].
I.2.2. Food sector
In food sector, it is inevitable to mention McDonald in the United States, one of the
pioneers in ethnic marketing as a fast food chain. In such a culturally diverse country, the
marketers of McDonalds have been refocusing the way they promote their products to
consumers with ethnic marketing, meaning using a marketing mix reflecting the attitudes,
values and preference of ethnic Americans. It has shown its forefront of this new wave in the
US by developing menu items and advertising schemes gleaned from ethnic favour, taste and
preference, catering to the ultra-diverse population in this country, rather than focusing on only
its traditional middle class Caucasian. According to this, the likes and dislike, unique taste,
cultural identity and preference of ethnic consumers such as African American, Asian, and
Hispanic have been taken into thorough consideration to turn into marketing campaigns,
making it a market power and potential advertising perspective.
For example, the very first products that Neil Golden, McDonald's U.S. chief marketing
officer and his team developed aiming at Hispanics population in the U.S. West in the 1990s
was "Fiesta Menu," which included guacamole and spicy beef tortas. This products brought
2
Source: Bank of America http://mediaroom.bankofamerica.com/phoenix.zhtml?c=234503&p=irol-newsarticle&ID=1406282

35
much success for the team when it was sold very well in not only Hispanic neighborhoods but
also in the areas of white people like Orange County and Laguna Beach- California, and got
positive feedback and appreciation from target consumers at that time3
.
The second examples of ethnic products include McCafé coffee and espresso beverage
presented in this fast food chain in the US in 2009 with sweet, and indulgent represent taste
preference of the African American, as a result are the products geared towards African
American. Furthermore, the advertisement for coffee drinks of
McDonalds also emphasized in the indulgent aspect of such sweet
drinks as mochas.
Also, its recent introduction of fruit combination, known
as McDonalds’ smoothies and snack wraps reflects the taste
preference of ethnic focus groups. This kind of products was
developed based on the tastes and preference of African
Americans, Hispanics, and Asians. Together with the launch of these products in its menu and
advertisement campaign, McDonald not merely orients its products towards ethnic minorities,
but also aims at encouraging middle- class Causasians to consumes them as frequent as hip-hop
and rock’n’ roll4
.
In addition, as Dearborn, Michigan, is known as the second area with high density of the
Arabians, after the Middle East; and that most of them are Muslim, McDonalds has decided to
offer them with Halal chicken nuggets since September 2000. With this kind of product, the
Muslim community could have chance sharing the popular restaurant with other Americans,
and note McDonalds as their favourite one, instead of worrying about non-Halal food or
possible contamination from cooking oil used for meat products. The success of this item
stimulated McDonalds to offer the same thing in the second restaurant in Michigan Avenue,
where Halal McNugget usually accounted for 65% of the order of chicken nuggets, and then in
its third restaurant at Ford Road. The version of Halal McNugget continued to inspire many
other McDonalds’ restaurants, including the one in Autralia and the United Kingdom 5
.
However, this success mainly relied on the word of mouth of the Muslim population because
McDonalds did not want to communicate it [Nestorovic.C., 2009:51].
Then, it is clear that McDonalds spends much marketing efforts towards a broader
spectrum of ethnicities.
3
Source: http://www.businessweek.com/magazine/content/10_29/b4187022876832.htm
4
Source: http://www.businessweek.com/magazine/content/10_29/b4187022876832.htm
5
Source : http://islam.about.com/od/dietarylaw/a/halalmcd.htm
Source : http://www.mcdonalds.com

36
In general, ethnocentricity and food neo-phobia have shown its great importance in
influencing the decision to consume ethnic foods [Dena M. Camarena et al., 2011]. Hence,
ethnic marketing can find its crucial role in the systems of retailing markets like supermarkets
and traditional ones, or in such fast food chain as KFC, Mc Donald's and Quick. Nonetheless, it
seems at infant stage in restaurants considered as irrespective of ethnocentricity or neo-phobia,
because the purpose of restaurants with ethnic food is to attract clients with specialities from
other corners of the world, to differentiate themselves to various restaurants and to bring the
different taste to their customers.
I.2.3. Cosmetic sector
Cosmetic sector can be seen as a dedicated example for ethnic marketing due to its close
attachment to ethnicity. Although there are many critical towards ethnic marketing, it remains
extremely important in cosmetics due to the fact that people of different ethnicity are physically
different.
Mr. Nicolas Boulander- Responsible of the pole Lux, Mode and Beauty at Eurostaff
assesses that today all major cosmetic groups are well positioned on conventional cosmetic
products so the market becomes saturated. Nevertheless, ethnic cosmetic is a dynamic market
where these giants are poorly positioned, therefore, become niche potential, especially for large
groups. The reasons is that on one hand, ethnic beauty opens them an opportunity to growth
with the customers who have been neglected, and not yet been the subject for research and
development in cosmetics. On the other hand, it brings them a breath of fresh air to capture the
market of population with less difficulty6
.
L'Oréal Softsheen-Carson
L'Oréal is considered as one of the leading in ethnic cosmetic. In order to penetrate this
market, since 1998 it has bought American enterprises namely Softsheen and Carson, both of
which specialize in ethnic hair, and then merged to form Soft Sheen- Carson, occupied
American ethnic hair market, targeting non-Caucasian women. The principle of Softsheen-
Carson is to “help people of color celebrate their unique, highly individual looks and styles with
confidence and flair through the most innovative products specially designed for their needs”7
.
6
Source: Journal du Net http://www.journaldunet.com/economie/tendances/beaute-ethnique/2.shtml
7
Source: Softsheen-Carson website http://www.softsheen-carson.com/_us/_en/about-us/index.aspx

37
Over 100 years, Softsheen- Carson have
continued providing specific products targeted
color communities, for example its first hair
color product named “Dark & Lovely” launched
and formulated specifically for African American
women in 1972, its first no-lye relaxer allowing
women to relax their hair at home later in 1978,
its Carefree Curl launched in 1979 offering
consumers curls and sheen which have made a
major market phenomenon that propelled the
health and beauty market for African Americans
into a $1 billion category, and its first body
perm for black hair named "Wave Nouveau"
launched in 1987. In addition to these products, it is necessary to mention others like Optimum
Care, Roots of Nature, Let's Jam, Beautiful Begining, Sportin'Wave, Optimum Oil Therapy, etc.
as successful products helping their consumers of color define and express beauty on their own
terms. Today, Softsheen-Carson offers a diversity of hair care products, from hair color, relaxer,
styling, permanent wave, maintenance for women and men to relaxer and hair care products for
kids and those for men 'grooming.
Later in 2002, l'Oréal created a new subsidiary, producing hair care products for black
and mixed women in Europe. Its target customers are not merely black and mixed women, but
also Latin and other diversities. This can be seen in its muses of ethnic products such as
Beyoncé, Kelly Rowland, Eva Longoria and Penelope Cruz.
Since 2004, every year, Softsheen Carson has organized “My Style My Way Tours”
bringing the brand to many cities where its stylists have been available at the parkings of
retailing shops to provide information of their products to the customers. Besides, several
events of this kind have been organized, like free hair diagnostic, counseling, distribution of
samples, allowing Softsheen-Carson educating their consumers at the same time entertaining
them. Especially in 2006, by sponsoring the film "A Journey Through Black Hair'itage" with
Essence magazine, Softsheen-Carson brought audiences a history with cultural significance of
African American hair and its trends over the past ten years. What is more , the company offer
in its kit Optimum Care relax a short version of the film as if showing its interest in the value
and culture of its consumers 'life and contribute to preserve their identity reflected in their hair
with the slogan "My Style My Life".
Source : http://www.softsheen-carson.com/

38
IMAN
Beside the giant corporation L'Oréal, the case
of IMAN Cosmetics, Skincare and Fragrances, a
beauty company can be discussed in this section
because it created the first cosmetics, skin care
collection, beauty advice and make overtips with
IMAN brand designed especially for all women with
color skin in 1994.
Iman, the Somali- American entrepreneur
worked as the founder and CEO of IMAN Cosmetics,
Skincare and Fragrances has become a pioneer in the
field of ethnic cosmetics when deciding to make up
this top cosmetic lines in the world for three main
reasons: (i) Firstly, she saw that the face of beauty has changed when such stars as Halle Berry,
Jennifer Lopez and Lucy Liu, etc. have become the most celebrated women in Hollywood; (ii)
Secondly, she was inspired by her two careers as a world class supermodel with much success
in the fashion world, known as a muse for fashion designers including Yves. St. Laurent,
Versace, Calvin Klein and Donna Karan and then as a founder and CEO of IMAN cosmetics;
and (iii) Most importantly, it derives from her particular awareness of the difficulties of women
with skin colors in their make-up and skin care. As a result, she becomes entrepreneurs
delivering a new approach to global makeup and skin care by launching the concept "Beauty of
Color"- revolutionizing the way of thinking of women with skin of color towards beauty, by
categorizing people according only to ethnicity, and by publishing the first beauty and make up
book entitled "The beauty of color: The Ultimate Beauty Guide for Skin of Color (Putnam
Penguin 2005), which is considered as manual addressing skin tones from across the spectrum
Latina, Black, Asian, Indian, Native American, Mediterranean, and Middle Eastern, as well as
multiple ethnicities.
The philosophy of IMAN brand is that women with skin of color represent many races,
cultures and ethnicities, so IMAN cosmetics, skincare and fragrances products and services are
designed specifically for ethnic women for example African American, Asian, Latina and
multi-cultural women with skin tones in a myriad of shades. The products and services are
firstly based on Iman's experience mixing her own formulation for make up and use Iman as the
commercial face of the company. Accordingly, it offers them skincare and cosmetics including
16 foundation shades, variant choices that they have never had, regardless their skin tone. Iman
Source : http/www.imancosmetics.com/

39
now has its distribution channels in the United States, Canada, Belgium, France, Norway,
Sweden, Switzerland, the Neitherlands, United Kingdom, Gabon, Nigeria, West Indies and
Zambia. This prestige brand is also available at mass retailers including Target, Wal-Mart,
Walgreens and Duane Reade8
.
In addition to these three presented sector, many other sectors should be mentioned here
as examples of ethnic products, such as telecommunication, media and communication,
technology, building and construction, education, fashion and textile, so on so forth. This shows
the popularity and increasing importance of ethnic marketing and commerce in a multicultural
environment throughout the world.
I.3. Ethical issues
However, there are many critics related to ethnic marketing that need to be discussed.
The purpose of this section is to present ethnical issues concerning this particular marketing
approach.
I.3.1. Ethnic marketing may cause discrimination and might be the reason for social
separation
Firstly, as Kotler et al. mentions, the notion of what is good is quite abstract, because it
may change from one minority ethnic group to another, like it may change from one country to
another [Kotler et al., 1998]. That is why discrimination may derive because it touches the
“don’t” and taboos of some cultures and religions.
Chantal Ammi lists some of vivid illustrations as due to carelessness, the condescension
in advertisement message can be understood as contempt. For example, the Miss Asia was
forbidden in the Great Britain because of Indian women’s oppose, who believed that this event
degraded their women and community. Another example is that effort of the campaign
preventing the SIDA seriously failed in Muslim community for the simple reason that it is
against the principles of this religion [Chantal Ammi, 2005, p.56]. Also, advertisements of pork
based products and wine not allowed in Muslim, therefore, it can be considered as blasphemy in
such societies.
Similarly, ethnic stereotype can be the reason for racist attitude and cultural difference
reinforcement. Stereotype in ethnic marketing happens when an ethnic group is assumed to
8
Source: the website of IMAN Cosmetics, Skincare and Fragrances (http://www.imancosmetics.com/)

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