Getting started in Asian-American market research

Now that you have decided to take the plunge into Asian-American market research, you are ready to find answers to key questions that will impact how you decide to move forward. There are many aspects of the Asian-American segment that marketers find difficult to understand and may use as an excuse to avoid researching this segment. Here are answers to some of the basic questions commonly asked by marketers who are ready to make a commitment to researching Asian-American consumers but don’t know quite where to start. Let’s assume you are planning to conduct focus groups to test ideas for a new campaign targeted to Asian-Americans. The first question you might ask yourself is:

1. Which Asian group(s) should we target?

Who is your target audience? If you want to target the Chinese, for example, there are still other factors to consider: newer immigrants or more assimilated, older versus younger, English speakers versus Mandarin or Cantonese speakers. Consider the cultural aspects of your product, too. Is there anything about the product that makes it more (or less) appealing to a specific Asian segment? Will factors such as geography, language, religion, income, or education disqualify any segment from consideration?

Regardless of these factors, it is unwise to combine Asians of all backgrounds into one pan-Asian focus group. While there are traits common to all Asian segments, it is more important to understand the uniqueness of each group. Respondents will feel more comfortable expressing their feelings with a group of Asians from their same cultural heritage. You should segment your research to devote separate focus groups to each Asian group.

If targeting all Asian groups is impractical or cost-prohibitive, one option is to focus on the “core” Asian segment consisting of Chinese, Filipinos, Koreans, Japanese, Vietnamese and Asian Indians. These six segments represent about 85 percent of the total Asian-American population. Another option is to start with one or two of the largest segments. Chinese and Filipinos are the two largest Asian-American groups, each with an estimated population of about two million. These two groups combined account for approximately 40 percent of all Asian-Americans. These segments have both existed in the U.S. for generations and often are more assimilated to American life than other Asian segments.

2. How are the various Asian groups really different, other than language?

One major mistake marketers make is to lump all Asians into the same category and assume that all Asians are alike. It is important to recognize that the Asian market is more heterogeneous than any other ethnic segment. Every Asian group has its own distinct culture, values and language. Ultimately this level of diversity leads to distinct differences in purchase behavior, as illustrated in these brief characterizations of key groups.

• Chinese: Price-sensitive and will often base a purchase decision on price. Recognize good value for the money. Careful and thorough, information-intensive, scrutinizing shoppers. Value quality and well-established brands. Suspicious, distrustful of monopolistic firms. Purchase decisions are made by the husband, but the wife has considerable influence in day-to-day money management.
• Japanese: As shoppers, they are analytical, rationally driven, and practical in nature. Accustomed to good service in Japan. Prefer dealing with large rather than small companies. Value corporate history. Purchase decisions are made by the husband, but the wife has considerable influence in day-to-day money management.
• Koreans: Not as price-sensitive as some Asians, but will often base a purchase decision on price. Emotional and impulsive in nature. Extremely brand loyal. Value quality and well-established brand names. Prefer dealing with Korean sales personnel. Quite frustrated if a company does not target them as aggressively as the competition. Strongly male-dominant in terms of purchase decisions.
• Filipinos: Price-sensitive, but not as demanding on quality. Influenced by ads with nostalgic or emotional themes. Value the relationship between vendor and customer, and expect rewards for loyalty. Purchase decisions made jointly by both spouses.
• Vietnamese: Husband is ultimate decision-maker for big-ticket items. Both spouses discuss how to allocate household income, but wife is given a budget to manage the home and purchase household items.
• Asian Indians: Among recent immigrants, both spouses tend to share in financial and purchasing decisions. Otherwise, these decisions tend to be strongly male-dominated.

Recent immigrants from Korea, Taiwan and Hong Kong and other more developed Asian countries differ significantly from other immigrant groups. They arrive in the U.S. with money in their pockets, after having sold a home or business, and usually start a small business, becoming solid citizens who are willing, eager, and able to buy American goods and services. They are typically more educated and urban than the recent Southeast Asian immigrants, who are likely to be provincial, rural and less affluent.

Assimilated Asian-Americans, comprised mostly of Japanese, Chinese and Filipinos, often consider themselves first Americans, then (if at all) Asian. They are familiar with American customs, language and media, and have acquired some Western values and habits.

3. Can we use a pan-Asian approach to save money, or should we develop a separate strategy for each segment?

It is possible, and sometimes advisable, to create an advertising or marketing campaign that focuses on themes common to all Asian groups. Asian-Americans, while diverse, do share some common traits that can be useful to marketers. Asians share a strong family orientation, value security, education and hard work, and often place quality above price when shopping. Asians are also very achievement-oriented and have a high degree of pride in their culture.

Market research can determine if there are enough similarities in the expectations of Asian customers so that your product or ad can serve all Asian groups, or whether unique designs or programs are required for each Asian group. If there are common attributes that can be characterized as pan-Asian, this can impact product development, marketing and advertising costs.

4. Which market(s) should we choose?

Asian-Americans tend to cluster in distinct metropolitan areas, so choosing markets for your research is a simpler decision. Asian-Americans are a significant presence in metropolitan areas such as Los Angeles, San Francisco, New York, Honolulu, San Diego and Chicago. The following list provides the top metropolitan areas where each Asian group has the highest population concentration.

• Chinese: Los Angeles, New York, San Francisco, Oakland, San Jose.
• Koreans: Los Angeles, New York, Washington, D.C., Orange County (Calif.), Chicago.
• Japanese: Honolulu, Los Angeles, Orange County, San Jose, New York.
• Filipinos: Los Angeles, Honolulu, San Diego, San Francisco, Oakland.
• Asian Indians: New York, Chicago, Los Angeles, Houston, Washington, D.C.
• Vietnamese: Orange County, Los Angeles, San Jose, Houston, Washington, D.C.

When conducting focus groups among several Asian segments, Los Angeles is a logical choice because there are large populations of all six of the core Asian segments. The San Francisco-Oakland-San Jose DMA has the largest Chinese and second largest Vietnamese populations in the U.S., as well as a substantial concentration of Filipinos. New York can be an effective alternative for Chinese, Japanese, Koreans and Asian Indians, but Vietnamese and Filipinos are not well represented there.

It is not necessary to choose two or more markets to provide geographic diversity to the research. Research shows that Asian immigrants in California are not radically different than Asian immigrants in New York, for example.

5. If we are researching the Chinese, should we conduct the research in Mandarin or Cantonese, or both?

Differences among the Chinese are more likely to arise based on country of origin rather than language per se. Chinese-speaking immigrants come from many countries besides mainland China, such as Hong Kong, Taiwan, Singapore, and the Philippines. In choosing your markets for Chinese research, language is only one of several factors which may impact how your product is perceived or purchased.

Recent immigrants from Taiwan and Hong Kong are usually better educated and wealthier than their counterparts from mainland China, so their purchase behavior, values, and ways of thinking tend to be very different because of these demographic factors. Assimilated Chinese-Americans and recent immigrants from Hong Kong and Taiwan are more similar to Americans in terms of making financial and purchase decisions. In contrast, recent immigrants from mainland China are more likely to adhere to the decision process of their traditionally male-dominated society. Factors such as these should be considered in developing your Chinese research plan.

Many ethnic marketers divide the Chinese segment into at least three groups based on language and place of origin. This categorization is especially important if there is a need to create language-based appeals for your campaign. These three groups are:

However, this categorization is not totally strict, since the Mandarin and Cantonese dialects may be spoken by Chinese from any of these places of origin. If you are considering conducting research among the Chinese, and budgets are tight, focusing only on Mandarin-speaking Chinese can be a practical approach, since they represent the majority.

6. Should we conduct the research in English or in the appropriate Asian language(s)?

This decision depends on whether you are targeting new immigrants or more assimilated Asians. As a general rule, however, conducting focus groups in the appropriate Asian languages is advisable. While this is a more expensive approach, your research findings will be more representative of the Asian segment as a whole. Many Asian-Americans are not fluent in English and prefer to speak and receive communications in their native language. Nearly all foreign-born Asian-Americans prefer to speak their native language at home, and many of those who learn English say they do not speak English very well. Since the majority of Asian-Americans are foreign-born, they are thus most likely to retain their native language preference. Even immigrant Asians who speak and read English prefer to converse in their native language, if given the choice.

7. How do we go about finding and choosing a multicultural research partner?

First, set your research goals and clarify your information objectives. This will help organize your thoughts before you prepare your RFP and contact any suppliers. Next, obtain lists of research firms specializing in multicultural, in-language research from resources such as:

• The Ethnic Research Directory, published annually in the April issue of Quirk’s, and also available online at their Web site (www.quirks.com).
• The Source Book of Multicultural Experts, published annually by Multicultural Marketing Resources, Inc.
• The GreenBook Directory of Marketing Research Companies and Services, published annually by the New York Chapter of the American Marketing Association.

Contact several prospective firms and prepare a list of questions to ask them, such as:

• How long have you been conducting multicultural/Asian-American research?
• Which language segments/ethnic groups do you offer?
• What services do you provide: moderators, recruiting, interviewers, translators, interpreters, report writing, project management, etc.?
• Are these services provided in-house or are they subcontracted? If subcontracted, inquire about the nature and length of the relationship.
• Will cultural insights be offered and cultural differences be highlighted in the report?
• Are biographical profiles available for key personnel, including moderators?

Also, ask for a client list and a list of references. And make sure references are for the same languages/segments you are interested in.

After you have had the opportunity to talk with the firms, and with the references they have provided, send them your RFP. Be sure to include the following information:

• number of groups/interviews to be completed per segment/city;
• preferred sample source (list, recruiter’s database, community contacts, etc.) and screening criteria;
• targeted Asian groups;
• targeted markets;
• expectations for analysis and report - length, format, topline and/or full report, verbatim quotes, transcripts, etc.;
• timing; and
• budget.

If possible, give each firm an adequate amount of time to prepare their bids — at least five business days. It can take longer to provide a multicultural market research bid than for the general market due to the complexity of contacting and organizing resources in multiple markets and language segments. Keep in mind that costs will be higher and timing may be longer compared to the general market due to a number of factors:

• In-language moderators are generally more expensive than their mainstream counterparts.
• Recruiting is more expensive and time-consuming because recruiters typically use different community-based contacts and networking, as they can’t rely on focus group facility databases like those used in the general market.
• More respondents must be recruited for each group, and incentives may also be higher, than for general market groups, to ensure good show rates for Asians who are unaccustomed to American research practices.
• There are also extra expenses for translating screeners, hiring interpreters and in-language hostesses, and renting equipment for the interpreter to record the English translations.

In choosing your research partner, look beyond price and focus on their approach to your research plan, their knowledge and experience with the targeted segments, recommendations that show cultural perspective and insight, and positive endorsements from their references.

If you are new to conducting market research in the Asian-American segment, it pays to ask a few questions and educate yourself. Although it may seem intimidating to a marketer researching Asian-Americans for the first time, there is great potential for reward and a wealth of knowledge to be gained by increasing your understanding of this growing and affluent segment.