Marketing Teams Failing to Provide Multicultural Marketing Initiatives

Surprisingly only 55% of CEO’s believe in the importance of multicultural marketing initiatives. Both CEO’s and Executive boards have failed to fund any efforts towards marketing for their non-white consumers.

Although Hispanic consumers may hold $1.5 trillion in buying power, half of U.S. marketers have failed to establish multicultural marketing initiatives within their organizations, according to a new report.

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Millennials, Millennials, Millennials…

Millennials in the workforce have been juxtaposed as brilliant, innovative, lazy and entitled all in the same sentence. In a recent Forbes article, it weighs the pros and cons of this generation that brands target the most. Millennials set trends are social media whizzes.

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Race, Tattoos in Advertising Affect What Consumers Buy

When deciding whether to make an online purchase, skin color matters to some consumers, new research finds.

A study recently published in the Economic Journal of the Royal Economic Society discovered that online shoppers are less likely to purchase a product if a black person or someone with a tattoo is selling it.

As part of the study, researchers conducted a yearlong experiment selling iPods in about 1,200 online classified ads placed in more than 300 locales throughout the United States, ranging from small towns to major cities. They tested for racial bias among buyers by featuring photographs of the Apple iPod — all of which were silver, 8GB “current models” of the iPod nano digital media player, described as new in an unopened box, and for sale because the seller did not need it — held by a man’s hand that was black, white or white with a wrist tattoo.

The experiment found that black sellers did worse than white sellers on a variety of metrics. Specifically, black sellers received 13% fewer responses, 18% fewer offers, and offers that were 11% to 12% lower. The results were similar in magnitude to those associated with a white seller’s display of a tattoo.

Researchers also found that buyers corresponding with a black seller also behave in ways suggesting they trust the seller less. They were 17% less likely to include their names, 44% less likely to agree to a proposed delivery by mail and 56% more likely to express concern about making a long-distance payment.

“We were really struck to find as much racial discrimination as we did,” said University of Virginia professor Jennifer Doleac, a co-author of the study.

While the researchers weren’t made aware of the potential buyer’s race, Doleac said they did know the racial makeups of the local area where they placed the ad, which varied across the country. She said on average, they found that black sellers did better in areas where a larger share of the local population was black, which suggests that buyers might have a preference for own-race sellers.

Researchers also discovered that black sellers do worst in markets with high property-crime rates and more racially segregated housing, suggesting that at least part of the explanation is “statistical discrimination” — that is, where race is used as a proxy for unobservable negative characteristics, such as the potential danger involved in the transaction, or the possibility that the iPod may be stolen — rather than simply “taste-based” discrimination.

“Buyers might not be trying to avoid buying from black sellers, per se, but are trying to avoid something else that they think is correlated with race: traveling to a dangerous neighborhood, buying stolen goods, etc,” Doleac told BusinessNewsDaily. “This suggests that providing more information (e.g. central meeting places, purchase guarantees) could reduce racial disparities in outcomes.”

The study was co-authored by Luke C.D. Stein, an assistant professor of finance at Arizona State University.

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Why Big Business Supports Affirmative Action

Race-based affirmative action has been a controversial topic since the phrase was first used in an executive order signed by John Kennedy in 1961, but in the past few weeks it’s appeared in more headlines than usual, thanks to the recently decided Supreme Court case Fisher v. University of Texas. SCOTUS refused to make a definitive ruling on the legality of preferential admissions based on race, instead sending the case back to a lower court for further review. However, one group has made their stance on affirmative action clear. Joining numerous major universities, a coalition of over fifty major corporations, including General Electric, Xerox, and General Mills, petitioned the court to uphold race-based affirmative action programs. In this blog post, we explore why these businesses believe the diversity is good for the bottom line.
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Black Enterprise Takes 35% Advertising Hit

We’ve shared some articles highlighting the black community wanting to see more of a presence in the publishing space but is a reason that it’s been so difficult is because advertising in some of the top black magazines is declining? Black Enterprise took a 35% drop for the first quarter and Jet took a 32% dip. Another thing to note, publications like People en Espanol had an advertising increase of over 21%. Read More

Study: Facebook ‘Likes’ Serve as Personality Test [VIDEO]

Oddly enough we saw this article yesterday and were prepared to share with you today and right before posting it we came across a video discussing the same study. The study says that by looking at what people ‘Like’ on Facebook you can predict their personalities. Watching the video the one person speaking on it sort of states the obvious so we’re not sure how much we’d look to trust everything they predict. Saying that a person is likely homosexual for ‘liking” something on gay marriage sounds cliche. The idea of brands being able to target their consumer based off of personality is the more interesting news here, however the idea that ‘experts’ believe they can pinpoint your personality via Facebook likes is not to be overlooked or underestimated. Hit the jump to see the clip as well as read the article and give us your thoughts about this new study. Read More

Magazine Ads Shape Men’s Perspective of Women via Clutch Magazine

We did our piece “Perception of Beauty” to highlight the changing face of women in the mainstream, mostly Hollywood. This evolution has lead to a range of diversity starting to show it’s face however it’s not perfect. On the other side of minority, diverse and/or exotic women becoming a highlight in TV and Film, these types of women are being used in brand ads. Of course the women are used as something to get the men’s attention and promote a product but how does this affect a man’s overall perception of a woman? Hit the jump to see some of the negative implications.

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