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Black Gold: a History of the African-American Elite Market Segment

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Black Gold: a History of the African-American Elite Market Segment CHARM 2007 Black Gold: A History of the African-American Elite Market Segment Blaine J. Branchik, Quinnipiac University, Hamden, CT, USA Judy Foster Davis, Eastern Michigan University, USA relationship to marketing activities concerning this sector. A di stinct and significant African-American elite Particular attention will be directed at key areas of market segment began its growth prior to the U.S. Civil consumption including education, housing, apparel, War, flourished as a result of two World Wars, and has automobiles, entertainment and leisure (including vacation continued its expansion to the extent that today the segment homes), and financial products. An understanding of the is comprised of three sub-segments. This market is distinct history of this segment could have applications to both from other African-American groups and from the marketers, historians, and ethnographers. Of particular white elite in terms of products and services bought and interest to marketers is the use of historical patterns to sold. This distinction results from this group’s isolation and predict future ones. By understanding the historic trajectory lack of opportunities through the Civil Rights era and of the African-American market, marketing researchers will importance placed on such factors as ancestry and better be able to predict the growth of newly-developing affiliation within this group. This paper presents a five- market segments in the U.S. such as various Hispanic and phase periodization of the African-American elite market Asian sub-segments. Further, by understanding buyer and segment, linking its development to key historic events and seller patterns during these historic periods, practitioners eras. It concludes by proposing three product and service will be able to foresee new product/service categories that classes differing in the extent of their appeal to the African- may be of interest to this large market segment. American elite versus the white elite segment and/or the broader African-American market. DEFINITIONS AND CONTEXT INTRODUCTION There are a variety of characteristics which may delineate African-Americans as “elite.” While traditional The African-American consumer market is considered definitions of social class focus on income, educational large and lucrative. Estimated annual expenditures grew attainment, and occupational prestige, broader descriptions from $316.5 billion in 1990 to $645.9 billion in 2002. They of elite African-Americans also recognize lineage and are expected to increase to $852.8 billion by 2007 (Wellner association as variables. As educational and economic 2003). While considerable scholarly effort has been opportunities became more accessible to African-Americans directed at African-Americans who live under substandard in the more than 100 years following the Civil War, the economic conditions, far less attention has been directed at number of blacks regarded as affluent has increased affluent blacks. Over half of black married couples earn considerably. Affluent African-Americans have also been $50,000 or more, making upper-class black households an referred to as elites, aristocrats, bourgeoisie, black society interesting area of study. Although there has been some and upper-class. Landry (1987, 228) a sociologist, has media coverage of these upper-class African-American argued that from a Marxian perspective, African-Americans households, few in-depth studies of the elite as a market lack a true upper class, given a general lack of ownership of segment have been completed. This is a significant capital and the means of production. Therefore, perceptions oversight, since a distinctive elite group of African- of a black elite group are often viewed relative to the Americans has existed since colonial times and spending socioeconomic position of all African-Americans, and power of this group developed and began its growth during involve not only economic class distinctions, but subjective reconstruction following the Civil War. observations of social status as well. Exhibit 1 provides estimates of the population of African-American elites from PURPOSE 1800 through the present day. Interestingly, a long-standing social schism exists between members of the upper echelon black elites and the larger, more pedestrian black middle The objective of this project is to study and periodize class groups (Anderson and Massey 2001, 413; Gatewood the history of the African-American elite market segment, with an emphasis on key historical drivers and their 36 CHARM 2007 EXHIBIT 1 Estimate of African-American elite market segment 1800-present Year Population (est.) Description Source 1800 108,000 “Free Negroes” Hughes 1995 http://www.census.gov 1860 160,000 Mulatto non-slaves Landry 1987 1910 250,000 Blacks in professional occupations Frazier 1957 (2.5% of black population) http://www.census.gov 1945 640,000 5% of black population upper-class Drake and Cayton 1945 http://www.census.gov 1967 212,000 HH Households with incomes over $50,000 O’Hare 1989 700,000 people (per Census 3.3 ave nationally per household in ’67) http://www.census.gov 1987 2.0 million Live in households with incomes over $50,000 O’Hare 1989 2002 3.7 million Affluent African-Americans Unnamed 2002 2000, 9; Massey et. al. 2003, 142). This schism has often events/eras as bookends for each period. The researcher gone undetected by members of other societal groups, who then analyzes the activities that both buyers and sellers were tend to see affluent African-Americans as a homogeneous undertaking within each period with an eye toward targeted group. Moreover, there is considerable debate within the product and services. Finally, the researcher finds examples African-American community as to who should be included of those products or services that can be used to prove the among the African-American “elite” (Graham 1999, 1). existence of a market segment within that group over a Sociologists indicate that the makeup of black elites has period of time changed over time, with earlier generations of black elites supplemented and sometimes supplanted by affluent The African-American Elite Market African-Americans with different characteristics. Scholars who have studied affluent African-Americans typically Segment make distinctions between the “old black middle class,” “old black society” or “old black families” and “new” The African-American elite market segment can be members of the black middle class (Landry 1987; Massey periodized into five periods or phases. Those phases, and Denton 1993, 39). This paper takes a broad view of historical drivers, and associated marketing activities are affluent blacks and suggests that a multiplicity of well-off summarized in Exhibit 3, below, and elaborated in this African-Americans evolved over time. Included in this section. paper are discussions as to how these groups developed and the implications for marketing practices. Phase I: Oppressed, pre-1865-1915 Methodology Freedom, ancestry, literacy, skills and property ownership laid the foundation for the development of the The authors use an adaptation of a previously- African-American elite. The genesis of the black elite can published four-step framework (see Exhibit 2) for analyzing be traced to the pre-Civil War period. As early as 1651, market segment histories (Branchik 2002) to organize this there were small numbers of free black planters in the effort. This method first undertakes a historical chronology colonies, some of whom owned black slaves and white of the group of interest – in this case upper-class African- indentured servants (Hughes, et al., 1985 52). By 1800, Americans – with special focus on factors that may hold among the black population of about one million, implications for marketers (such as income, growth, approximately 10% were free. “Free Negroes of means” government programs, trends). Within that chronology, the typically had been born free, had purchased their freedom, researcher looks for ongoing, evolutionary demographic, or were granted manumission by slave owners (Hughes, et. geographic or psychographic factors (such as regular al., 52). Some were former house slaves, often the mulatto population growth) and key, revolutionary events that had offspring of slave women and their masters. The light skin profound impacts on the group. A key revolutionary event and smooth hair texture of these mixed-race individuals for the African-American market, for example, was the mass afforded them special privileges in society relative to other south to north migration of African-Americans during blacks. By 1850, more than one-third of free blacks were World War I. Using those revolutionary events, the history mulattoes, compared with only one-tenth of slaves (Landry is then divided into phases or periods with the key 1987, 24). At the start of the Civil War, census records 37 CHARM 2007 Exhibit 2 Market Segment Periodization Method 1. Historical summary of group of interest 2. Buyer 3. Seller 4. Products/ Services Activities Activities a. Chronology b. Evolutionary c. Key developments revolutionary eras or events Summarize history Note gradual, Summarize Listing of Listing of activities Examples of of group of interest ongoing historic or common buyer of sellers relative to product/service demographic societal forces activities buyers during given offerings resulting from developments that act as performed by phase buyer-seller interaction that span historical segment of during given phase history “bookends” for interest during
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