FORE SCHOOL OF MANAGEMENT

Mini Project
On

Asian American Consumer Behavior

Group 5

Submitted to Prof
Anupam Narula

Mehul Pahuja (08329)

Praful Garg (08334)
Sarabjeet Singh (08341)
Shashank Singhal (08345)
Tijeel Kumar Tarun (08352)
Unnati Saraswat(08353)

Certificate
This is to certify that Group 5 Members Mr./Ms. Mehul Pahuja(08329), Praful
Garg(08334), Sarabjeet Singh(08334), Shashank Singhal(08345), Tijeel Kumar
Tarun(08352), Unnati Saraswat(08353) have completed their mini project report
entitled Asian American Consumer Behavior towards part fulfillment of the
requirements for the award of the Post Graduate Diploma in Management (FMG23/IMG-8) 2014-2016. This Mini Report on Consumer Behavior is the result of their
own work and to the best of my knowledge no part of it has earlier comprised any
other report, monograph, dissertation or book. This project was carried out under my
overall supervision.

Date:
Place:
----------------------------------Prof. Anupam Narula
Internal Faculty Guide

Acknowledgement
We would like to thank all the people who have helped us directly or indirectly in
completion of this mini project successfully. We are highly indebted to our project
guide, Prof. Anupam Narula, FORE School of Management, New Delhi, without
whose guidance, we would not have been able to complete this project successfully.
We would like to thank him for his continuous support and guidance. His
encouraging words motivated us to move towards achievement of objectives and
work harder to complete the project successfully.
Group 5
Mehul Pahuja (08329)
Praful Garg (08334)
Sarabjeet Singh (08341)
Shashank Singhal (08345)
Tijeel Kumar Tarun (08352)
Unnati Saraswat(08353)

Executive Summary

The report covers all the aspects of Asian Americans that form large part of American
population. The report discusses the demographic characteristics of Asian
Americans such as income, age and educational qualification that are very important
from marketing point of view.
The report includes how Asian American interacts amongst each other and with
Native Americans. It gives useful insights about their subculture, their beliefs, and
values and how their culture influences their decision-making.
We have tried to cover how Asian Americans have embraced the emerging media.
The media consumption habits of Asian Americans helps marketers to recognize
which medium they should use for advertising their products. It is interesting to know
that Asian Americans are using web and smartphones more than Native Americans.
In the last section of report we have tried to cover the shopping behavior of Asian
Americans that covers on which product they spend more, what factors are important
for them and are they brand loyal or not.
The report covers various aspects of Asian Americans and gives marketers an
opportunity to make their strategy accordingly.

Contents
Introduction.................................................................................................5
Objectives....................................................................................................6
Methodology................................................................................................7
Chapter1: Literature Review........................................................................8
Chapter2: Demographic Analysis of Asian Americans...............................12
2.1 Incomedistribution of Asian Americans....................................................13
2.2 Population distribution by age................................................................13
2.3 Top countries of origin for US Asian immigrants........................................14
2.4 Asian Americanswith higher education degrees........................................14
2.5 Asian Americans distribution in various states of United States...................15
Chapter3: Inter group relations.................................................................17
Chapter 4: Media Consumption Habits of Asian Americans.......................20
4.1 Redefining Consumption of Media..........................................................20
4.2 Importance of in-language media............................................................20
4.3 Multi-Platform Lifestyle..........................................................................22
4.4 From Mobility to Connectivity.................................................................23
4.5 Ads Appeal with Value...........................................................................24
4.6 Opportunities and Takeaways................................................................25
Chapter 5:Shopping Behaviour..................................................................26
5.1 Buying Power: Large and Growing..........................................................26
5.2 Key Purchase Categories......................................................................26
5.3 Less Planning, More Decisions Made At Store Level.................................26
5.4 Insights on Shopping Behavior...............................................................28
Conclusion..................................................................................................29
References..................................................................................................30

Introduction
In 1965, the Asian-American share of the U.S. population stood at less than 1
percenthaving been held down by a centurys worth of exclusionary policies
explicitly based on race. That was the yearat the height of the civil rights
movement and in the heat of a roaring economythat the U.S. government opened
the gates to immigration from all parts of the world, Asia included. The effect has
been transformative for the nation and for Asian Americans. Today they make up
nearly 6% of the U.S. population. And in an economy that increasingly relies on
highly skilled workers, they are the best-educated, highest-income, fastest-growing
race group in the country

There are now over 18.3 million Asians in America, making Asian Americans as a
group the fastest growing minority population in the U.S. While it's true that, as a
group, Asian Americans have the highest median incomes among ethnic groups in
the U.S., actual median incomes vary wildly among Asian American subgroups. Also
interesting is the finding that most Asian Americans don't think of themselves as
"Asian American." Rather, they identify with their country of origin (they identified
themselves as Chinese American, Vietnamese American, etc., as opposed to the
generic "Asian American"). Thus, it is not only inaccurate to subscribe to myths about
"Asian Americans" as a homogenous group, but doing so can lead to the
implementation of harmful policies in American communities as a whole. The
many differences among Asian American subgroups is all the more reason to gain a
fuller understanding of how Asian Americans are integrating with and developing in
the larger American context

Objectives
1. To study Demographic characteristics of Asian Americans
2. To study intergroup relations among Asian Americans
3. To Study Media Consumption habits of Asian Americans
4. To study Shopping behavior of Asian Americans

Methodology
Methodology is generally a guideline for solving a problem, with specific components
such as phases, tasks, methods, techniques and tools. A documented process for
management of projects that contains procedures, definitions and explanations of
techniques used to collect, store, analyze and present information as part of a
research process in a given discipline.

We have done a secondary research on Asian Americas. We have used a survey

conducted by Pew Research Center to examine the various aspects of Asian
Americans.

Chapter 1: Literature Review

According to the paper Effects of Asian-Americans Ethnicity and Acculturation
on Personal Inuences written by Youn-Kyung Kim and Jikyeong Kang inJournal
of Current Issues and Research in Advertising in 2001, Asian-Americans' attractive
characteristicsthe fastest-growing and the most affluent group in the U.S., and
their geographic concentrationurge marketers to reassess the viability of the Asian
market and to emphasize the importance of developing advertising strategies
specifically targeted to this ethnic market. This study examined whether susceptibility
to personal influences of three Asian-American consumer groups (Chinese,
Japanese, and Koreans) varies by ethnicity and acculturation. Results showed that
ethnicity affected personal influences and, further, that these personal influences
differ, depending on the level of acculturation. The results of this study reveal the
clear message that AsianAmerican groups, even when considering only three of
the top five Asian-American populations, differ in their susceptibility to personal
inuences by ethnicity and acculturation level. Each Chinese, Japanese, and Korean
immigrant exhibits significant differences in terms of how much he or she is
susceptible to reference group inuences. In addition, results of the current study
confirmed acculturation as an important factor to considerwhen implementing
interpersonal inuences with Asian-American consumers.
The paper Marketing Communication Strategies and Consumer Financial
Decision Making: The Role of National Culture by J. Andrew Petersen, Tarun
Kushwaha, & V. Kumar published in Journal of Marketing (2015) states that
Consumers frequently make important financial decisions that have short- and longterm impacts on their welfare. The authors expect that these financial decisions are a
function of consumers past experiences and interactions with a financial services
firm as well as consumers long-term priorities (e.g., national culture). They
determine how three cultural dimensions (long-term orientation, uncertainty
avoidance, and (masculinity) and marketing communication type (promotion focused
vs. prevention focused) affect three key consumer financial decisions: (1) savings
rate, (2) use of credit, and (3) spending pattern. To do so, they empirically test both
the direct effect of national culture on consumer financial decision making and its
moderating effect on the link between a firms marketing efforts and consumer
8

financial decision making. Drawing on regulatory focus theory, the authors develop
and empirically test their hypotheses using a customer database from a multinational
financial services firm based in the United Arab Emirates, with customers originating
from 34 countries. They find that national culture directly affects consumer financial
decision making and moderates the impact of marketing efforts by the financial
services firm, which suggests that financial services firms should account for national
culture when managing customers.
Asian-Americans in Focus an article published in Marketing News by Christine
Birkner gives an insight into the growing importance of the Asian americans as a
consumer group. At 18.2 million members in 2012 and expected to reach 20.9 million
in 2017, the Asian-American population is the fastest-growing multicultural segment
in the United Statesand one of the wealthiest and best-educated, too. Yet many
marketers continue to tailor the majority of their multicultural marketing efforts to
other consumer groups. The Asian-American audience has increased 51% since
2000 and grew at double-digit rates in 49 out of 50 states in 2012, according to New
York-based Nielsen Co. Asian-American buying power has risen 523% since 1990 to
$718.4 billion in 2012 and is expected to top $1 trillion by 2017. Almost 40% of all
Asian-Americans can be found in three designated market areasLos Angeles, New
York and San Franciscoand Asian-Americans skew younger than the total U.S.
population, averaging 41 years old vs. 45 years, according to Nielsen. As with any
consumer group, there are significant cultural differences within the segment,
experts say. The group is made up of multiple ethnicities and languages. Chinese
represent the largest group at 23%, followed by Filipinos at 19% and Asian-Indians
at 18%. Seventy-four percent of Asian-American adults were born abroad and of
those consumers, about half report that they speak English very well and half say
that they dont, according to Pew data. Next to Spanish, Chinese is the most widely
spoken non-English language in this country. More than 78% of Korean-Americans
speak Korean on a daily basis, says Rey Lozano, vice president of marketing at
Plan C Agency, a New York and Los Angeles-based marketing agency focusing on
Asian-Americans. Marketers need to make sure their marketing and advertising
efforts are in-language and in-culture. If youre targeting a Chinese- American, it
would be very different from targeting a Korean-American or a Filipino-American. In
fact, according to the Pew Research Center, the Asian-American label doesnt
9

resonate with most Asian- Americans. Sixty-two percent most describe themselves
by their countries of origin, 19% describe themselves as Asian-American or
Asian, while 14% simply call themselves American. While the Asian-American
market is composed of multiple subgroups and languages, there are common values
within the group that marketers can focus on, including consumers interest in
savings, education and long-term planning, and a respect for elders, community and
family, says Eloisa Hubilla, director of strategic planning at IW Group Inc.
The article Asian-Americans published in License in 2005 differentiates between
the consumption pattern of Asian-Americans as a subculture against other cultures
present in the USA. In internet usage the Pew Internet & American Life survey found
that approximately 70 percent of Asian-American Internet users go online everyday,
compared to 58 percent of online whites, and that nearly 40 percent of AsianAmericans who go online spend two or more hours on the Internet. In Income and
Spending According to the Packaged Facts report, the mean income of Asian
Americans ages 15 and older was 9 percent higher than that of the population as a
whole. In 2000, Asian household income averaged $70,221 and was 14.7 percent
higher than that of non-Hispanic white household income, the report notes. "More
than one-third of Asian households (34.8 percent) have incomes of $75,000 or
more," the report says. Asian- Americans, however, are less likely to shop frequendy
for food on a fill-in basis, and they are not habitual users of cenrs-off coupons."
Asian-Americans are more likely than non-Hispanic whites to own handheld video
games, DVD players, camcorders, video cameras, and multiple VCRs, according to
Simmons Market Research Bureau, as noted in the Packaged Facts report. They
also have a higher propensity to own or lease cell phones.
According to data published in 2001 hy the Travel Industry Association of America,
while Asian-Americans spend $635 on an averse trip, Hispanics spend $540,
African-Americans $407, and Americans as a whole $438. In Retail Trends
According to Look-Look,Inc., one of the latest trends for Asian-American youth is to
customize car lights and reflectors. "Some of the more car-crazy youth install clear or
white head and taillights, and paint over their reflectors to coordinate with the colors
of their cars." And while young Asian-Americans have always held culture and
tradition in the highest regard, the site says, they also love their hip-hop and
surfwear. "Even the youngest Asian-American teens have started to fuse traditional
10

Japanese fashion such as a kimono with a new pair of Converse hightops. While
baskethall, snowboarding, and video games rule, karaoke and mah-jon^ are just as
popular," the site adds.

11

Chapter 2: Demographic Analysis of Asian Americans

Asian Americans are the highest-income, best-educated and fastest-growing racial
group in the U.S, with Asians now making up the largest share of recent immigrants.
Asian Americans are a distinctive group, and the population is by no means a
monolith. It is made up of immigrants or their descendants from dozens of countries
in the Far East, Southeast Asia and the Indian subcontinent, each with a unique
history, culture, language and pathway to America. While these groups share much
in common, they also have a range of differences in their demographic
characteristics.
Currently at nearly 19 million, the Asian American population continues to experience
the highest growth rate of any multicultural segment

Growth Rate, 2000 2013

12

2.1 Incomedistribution of Asian Americans

The income of Asian American households soared by 97% from 2000 to 2013, and
they continue to earn more than overall U.S. households. Asian American
households grew by 61% between 2000 and 2013.
2.2 Population distribution by age

2013 US population distribution by age

13

Asian Americans have many prime years ahead for working and earning.
Additionally, 32% of Asian Americans 6% higher than the overall population --are in
the key 25-44 age demographic, when consumer habits are being established and
their needs are growing with marriage and family.

2.3 Top countries of origin for US Asian immigrants

Cumulative number of immigrants by year, millions

Immigration is fueling the Asian American demographic surge, and since 2009, the
majority of immigrants to the U.S. have come from Asia rather than Latin America.
Three out of four Asian American adults are immigrants. While they encompass
dozens of countries, languages, and socioeconomic characteristics, they also share
cultural values and immigrant characteristics that bind them as a consumer group.

2.4 Asian Americanswith higher education degrees

Some of the more recent Asian immigrants are arriving with high earning and
spending power due to immigration policies that have favored high-tech and

14

specialized workers. Forty-nine percent of Asian immigrants hold a bachelors

degree or higher, nearly the same rate as Asians born in the United States.

Percentage of Asian Americans (25+) with a bachelors degree or higher

75% Asians make up about three-quarters of New Visas for highly skilled workers.
61% of recent Asian immigrants ages 25 to 64 have a college degree.

2.5 Asian Americans distribution in various states of United States

The influence of Asian Americans is expanding well beyond their historical hubs of
the West Coast and New York City. Asian American population boosts of more than
200% were shown in the counties of 12 states, including Texas, Florida, Georgia,
Minnesota, Ohio, Nevada, and Arizona. The Western states still claim two-thirds of
Filipino Americans and 71% of Japanese Americans; however, other Asian ethnicities
are much more dispersed. The Northeast, not the West, is home to the largest
number of Indian Americans, 31%. The South is now home to large proportions of
Asian American groups: 23% of Koreans, 29% of Indians, and 32% of
Vietnamese.66 But while Asian Americans are moving throughout the country, most
continue to congregate in metropolitan areas.

15

Asian American population in 49 out of 50 states grew at least 33 % over the

past decade.

16

Chapter 3: Inter group relations

Asian Americans report a generally positive set of attitudes and experiences on a
wide range of measures that track how they interact with other racial and ethnic
groups.
Do Asian Americans get along with other racial and ethnic groups?
According to a survey by PEW Research Centre
Research survey asked respondents to rate how well members of their Asian
group (such as Vietnamese Americans, Korean Americans) get along with each
of four groups: whites, blacks, Hispanics and Asian Americans from different
countries.
Asian Americans are positive about relations with whites and other U.S. Asian
groups. They are less positive about relations with Hispanics and most negative
about relations with blacks.
Around 26% of Asian Americans say their Asian country of origin group gets
along very well with whites, 61% say their group gets along pretty well and 9%
say their group gets along not too or not at all well. Relations across U.S.
Asian groups are seen in similar terms: around 24% say their group gets
along very well with Asian Americans from different countries, 59% say pretty well
and 11% say not too well or not at all well.
Intergroup relations with Hispanics are a bit less positive. Majority of Asian
Americans (56%) see their group and Hispanics as getting along pretty well while
roughly equal proportions see relations more positively (16%) or more negatively
(19%) than that. Relations with blacks are considered the most negative of the
set. A plurality (48%) of Asian Americans says their group gets along with blacks
pretty well, 15% say very well, and about three-in-ten (28%) say not too well or
not at all well. U.S born Asians tend to give more positive assessments than the
foreign born about the relationship between their country of origin group and
other racial and ethnic groups. For example, 31% of native-born Asian Americans
say their country of origin group gets along very well with whites, compared with
25% of foreign-born Asian Americans who say the same.

17

Getting Along across Group Boundaries, by Nativity

The Research survey among whites, blacks and Hispanics in the general public
asked a similar set of questions. A majority of whites and blacks in the general public
consider their racial group as getting along pretty well with the other racial group
(either blacks or whites, respectively).56 Among those who dont say pretty well,
the balance of opinion is slightly more negative than more positive for both whites
assessment of their relationship with blacks and blacks assessment of their
relationship with whites.
Hispanics views of relations with both whites and blacks are more negative,
however. Among Hispanics, two-in-ten say their ethnic group gets along very well
with whites, 36% say the two groups get along pretty well, and four-in-ten (41%) say
the two groups get along not too well or not at all well.

18

A sizable minority of Hispanics is negative in their assessments of relations within

the Latino community. About a fifth (22%) say Hispanics from different countries get
along very well, four-in-ten (40%) say pretty well and 35% say Hispanics from
different countries get along not too well or not at all well. By comparison, Asian
Americans are more upbeat in their assessments of relations across Asian groups.

Comparisons with the General Public

19

Chapter 4: Media Consumption Habits of Asian

Americans
4.1 Redefining Consumption of Media
Asian Americans continue to lead the charge as pioneers in the digital world,
adopting technology faster than any other group. With higher rates of smartphone
usage, online video consumption, and internet connectivity, Asian Americans are
redefining the way they watch, listen, and interact. The Asian American population
has a lower median age and tends to be early adopters of technology. In fact, many
Asian American immigrants are arriving here already well-versed in the latest digital
trends. In many Asian countries, consumers have leapfrogged over desktops and
traditional landlines in favor of smartphones and tablets, which offer mobility and
convenience and do not require sophisticated infrastructure. Asian American
smartphone penetration at 75% is higher than the penetration rate in China at 71%
and the U.S. population as a whole at 60%. About 45% of Chinese have tablets, just
slightly above the percentage of Asian American households (42%) and significantly
higher than total U.S. households (25 %). As influencers, they are 15% more likely
than the general population to say that they will recommend technology and
electronics that they like to others. For marketers, understanding how Asian
Americans leverage technology is a peek into future trends. Asian Americans are
more than twice as likely as the general population to say that they want to buy the
latest technology regardless of price. At the same time, technology offers an
affordable solution for some of their needs. For many who are immigrants,
smartphones

with

overseas

calling

plans

and

tablets

and

laptops

with

videoconferencing have made communicating with family members and friends

abroad much easier.

4.2 Importance of in-language media

Recognizing that much of the conventional research on Asian Americans online
behavior has been centered on English-dominant Asians, Nielsen is increasing
efforts to lead the industry on the recruitment of in-language dominant Asians. This is
to provide a more comprehensive view of the dynamics and media consumption
20

behaviors of this important segment and the role of in-language media in the Asian
American household. Although the majority of Asian-Americans say that they speak
English well, marketers and advertisers cannot ignore the role in-language media
plays in the Asian American community. In fact, in the Los Angeles designated
marked area (DMA) alone, there are 33 free Asian over-the-air television
broadcasters, indicating the strong demand for in-language television. Likewise,
there are over 150 Asian satellite channels nationwide. International as well as U.S.based in-language television channels, video-streaming, and in-language websites
are ways that Asian Americans keep in touch with news and information from their
country of origin. In-language advertisements reach not only Asian Americans who
are in-language speakers, but also those who use English as their dominant
language. In Los Angeles, only 43% of Korean and Chinese Americans who primarily
speak English said they prefer English when watching television. According to a
recent Nielsen Scarborough Custom Study, the most watched station among Los
Angeles Chinese and Koreans regardless of their language preferences is KSCI, an
in-language station. While Asian Americans are tech savvy, many still use traditional
media such as TV, radio, and print to get culturally relevant entertainment and
information.

4.3 Multi-Platform Lifestyle

21

While traditional TV viewing still dominates as the medium with the most time spent,
Asian Americans are watching more videos and using the internet more than ever
before. They spend an average of 12 hours and 23 minutes a month watching videos
on the internet twice as much time as the general population. Their viewing jumped
19% from 2012, with adults ages 18-34 as the most frequent viewers. At least once a
week, Asian Americans are 2.5 times more likely to download a movie from a
website. Asian Americans also have higher rates than the general population of
video-viewing with their laptops or desktops (81% v. 72%), tablets (43% v. 32%), and
mobile phones (35% v. 26%). Asian Americans spend more time viewing streamed
content than live video content. Forty per cent of their time is spent streaming videos
on their internet-connected TV, compared to 33% for the total population. For those
who own internet-to-TV players, the comparison of streaming rates is 51% v. 42%.

Various platforms offer options for people to view content on demand; moreover,
online and streaming options are also offering free or low cost content for Asian
Americans that isnt as widely available on TV, particularly culturally relevant and inlanguage programming. Nielsen insights show that more Asian Americans than the
total population use YouTube (64% v. 55%) and Hulu (32% v. 29%) while fewer Asian
22

Americans subscribe to Netflix (61% v. 68%) . Many Asian Americans also visit inlanguage website portals and are more likely to use services with the most culturally
relevant, in-language offerings. 59% of Los Angeles in-language Chinese or
Koreans, visited in language sites in the past month. These same sites were also
visited by 48% of English dominant Chinese and Koreans. A Nielsen Scarborough
study indicates that in Los Angeles, residents of Chinese or Korean heritage who are
in-language dominant are 36% more likely to watch movies on the internet than the
general population and also index 132 and 135 for watching dramas and evening
local news, respectively, on traditional television. Chinese and Korean-Americans
who are English language dominant, however, watch internet movies at the same
rate as the general population.

4.4 From Mobility to Connectivity

From teenagers to seniors, smartphone penetration is higher among Asian
Americans than the overall population. In using their phones, Asian Americans have
the highest rates of any ethnicity for mobile video (33%), email (65%), and mobile
internet (72%). They also show significantly higher rates than non-Hispanic whites
for picture downloads (39% v. 25%) and music downloads (22% v. 13%). Despite
their high usage, Asian Americans have lower average phone bills than any other
group. They shop around for the best plans and reflect an average of $59 in billed
revenue per subscriber per month, compared to $65 for non-Hispanic whites. Asian
Americans are just as comfortable with shopping on mobile devices as the total U.S.
population. Eighty-five per cent of Asian Americans who own smartphones and
tablets reported using these two types of devices to do mobile shopping, in line with
the total population (87%). Owning a smartphone and a tablet is the most common
combination for Asian Americans with 29% of these device owners reporting this
cross-device ownership. Tablets are the preferred device to use while watching
television. During this multitasking, they prefer to look up general information related
to the program being viewed on TV via tablets rather than smartphones. However
smartphones are the preferred device to use for checking emails.

23

4.5 Ads Appeal with Value

Because Asian Americans are such avid consumers of media, marketers have a
variety of ways to reach them. To connect more meaningfully with the broadest
section of Asian Americans, messages should leverage cultural values. As valueconscious consumers, ads that feature product information and utility resonate well
among Asian Americans, more so than any other ethnic group. Specifically, ads that
highlight product features are 2.3 times more effective among Asian Americans than
the average ad among Asian audiences. That preference for practicality is seen in
the attitude of Asian Americans toward ads on their mobile devices, where they are
spending more of their viewing time. Fifty-one per cent of Asian Americans say
24

theyre receptive of advertising on tablets or phones if it means they can access

content for free, and 35% prefer ads that contain geographically relevant information.
Familiarity also breeds clicks for Asian Americans, as 35% said they would be willing
to click on an ad about a brand they already know. Many Asian Americans are
seeking out culturally specific programming, as seen in the growth of Asian media
outlets, most of them in-language (grew 1115% from 1999 to 2010). Similarly,
culturally relevant themes are important in advertising; ads featuring culturally
relevant situations and characters make up 65% of top ads among Asian Americans.

4.6 Opportunities and Takeaways

Asian Americans are digital pioneers. They adopt technology faster than any
other group and have higher rates of smartphone usage, online video

consumption, and internet connectivity.

While TV is still the dominant form of media for Asian American consumers,

marketers should recognize the growing importance of cross-platform media.

With advertising, Asian Americans prefer information and utility. To appeal to
Asian American consumers, marketers can leverage relevant technology to
deliver information and deals for their products and services, marketing

directly to the Asian American consumer.

Culturally relevant themes are important in advertising for Asian Americans.
Ads featuring culturally relevant situations and characters make up 65% of top
ads among Asian Americans.

25

Chapter 5: Shopping Behaviour

5.1 Buying Power: Large and Growing
If Asian Americans were a country, they would represent the 18th largest economy in
the world, providing a tremendous domestic growth opportunity. Buying power in this
demographic is expected to top $1 trillion by 2017. Asian Americans have a median
household income of $63,400 compared with the general population's $49,600, and
are 54% more likely to earn incomes in excess of $100,000.
5.2 Key Purchase Categories
Key Purchase Categories Asian Americans spend substantially more on fresh
produce and healthy foods. In many Asian countries, the common diet is based on
fruits, vegetables and grains. Rice is the centerpiece of most meals and unlike
Western cuisine; meat is used for accent and flavor, typically as a side dish. Asian
American households over index on baby products such as baby food and diapers.
Although Asian American and Non-Hispanic White fertility rates are similar, Asian
Americans skew younger and are more likely to be at a stage in life where they are
raising young children

5.3 Less Planning, More Decisions Made At Store Level

Less Planning, More Decisions Made at Store Level Asian Americans are less likely
than their White counterparts to plan their grocery purchases as evidenced by the
fact that they are less likely to use a shopping list and clip coupons. Once in the
store, however, the purchase decision process may be swayed by product
assortment, signage and deals. In fact, almost one third of Asian American grocery
dollars are spent on deals versus one-quarter of non-Hispanic White dollars (32% vs.
26%). Studies have shown that when coupons are in-language or inserted in Asian
newspapers, there is a much higher redemption rate.

26

Frequent Shoppers as Asian Americans acculturate, embracing traditions to stay

connected to their culture and food is an underlying current. Asian Americans offset
lower basket size in grocery stores with more frequent store visits. The tendency to
buy fresh produce accounts for shopping more often. Also, with larger household
sizes than Whites, Asian Americans are more likely to frequent warehouse clubs.
The attractiveness of the Asian American market has long spurred interest by key
players in the financial, telecom and automotive fields. In more recent years, spirits
manufacturers along with pharmaceuticals, quick-service restaurant and travel &
leisure companies have taken notice and implemented Asian American marketing
plans. Ethnic-focused retail chains have sprouted in correlation to Asian American
population growth and now offer items such as daikon radish, rice cookers and duck
feet that appeal not only to Asian Americans but also to a growing gourmet clientele
With many decisions made in-store, manufacturers need to develop a strong
connection with Asian Americans at the retail level. Retailers need to attract Asian
27

Americans with items such as fresh produce, healthy choices and products for
growing families. Offering value is paramount as many Asian American shoppers buy
on the deal. Consider how to integrate technology into the in-store experience. The
emergence and growth of tablet technology is revolutionizing the retail experience
and providing new experiences for consumers. Integrate tablets into retail point-ofsale and loyalty card systems to provide recipe ideas, cross-purchase suggestions,
and health & beauty tips.

5.4 Insights on Shopping Behavior

1. Asian-Americans are leaders when it comes to technology, mobile and social
media usage. They also watch and download more movies than any other ethnic
segment. With a 70% Smartphone penetration, Asian Americans also have the
highest usage of any group. Although all consumers prefer the Android operating
system, Asians have a higher preference for the Apple IPhone than the total U.S.
population.
2. Asian-American households spend 70% more than their average share on skincare preparation products and 25% more on fragrances. Asian Americans are also
highly loyal to brands and will spend more to guarantee they are of high-quality
reputation and value.
3. Asian Americans are selective shoppers and will spend more on foods that
support a long-standing tradition of holistic well-being. Asian Americans are 31%
more likely than average to buy organic foods and are 23% more likely to evaluate
the nutrition of products.

Conclusion
With the ever-increasing influence of the Asian American population in the U.S., it is
important for marketers to take a closer look at this valuable market segment. By
tapping into the fastest growing demographic with the highest purchasing power per
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capita, there is an opportunity to offset the decline in growth of the non-Hispanic

White population. Marketers need to have a strong understanding of the dynamics
within the Asian American market and an appreciation for both the common cultural
themes as well as the unique diversities. Couple this with an understanding of the
rate of technology adoption and multiple platform usage for a better picture of this
consumer segment. Steady immigration accentuates the need to understand that
Asian American consumer preferences for categories and brands are influenced by
homeland experiences. The large foreign-born population also indicates the
necessity for a sustainable media industry that caters to Asian linguistic needs and
cultural nuances. Traditional media, grassroots events, out-of-home advertising,
social media, online video and smartphones represent part of the vast number of
growing touch points used by brands to deliver marketing messages and engage
Asian American consumers. The key is keeping abreast of the trends to anticipate
where the market is headed. By cultivating a deeper understanding of Asian
Americans, marketers can tap into this attractive, expanding opportunity that is likely
to reward those who have closely analyzed the behavior of this consumer.

References
(2005). Asian-Americans. License.
Birkner, C. (2013). Asian-Americans in Focus. Marketing News.

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 J. Andrew Peterson, T. K. (2015). Marketing Communication Strategies and

Consumer Financial Decision Making: The Role of National Culture. Journal
of Marketing.
Kang, Y.-K. K. (2001). Effects of Asian-Americans Ethnicity and Acculturation
on Personal Inuences. Journal of Current Issues and Research in
Advertising
The Rise of Asian Americans(2013). Report generated by Pew Research
Center, Washington DC

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