Hispanic Research Inc. Turning marketers into Latin lovers - www.hispanicresearch.com

Capabilities Presentation

Prepared for:

June 13, 2010

1 Springfield Rd., East Brunswick, NJ 08816 - Tel. (732) 613-0060 - Fax (732) 613-8612 - Email: [email protected] Hispanic Research Inc.

Table of Contents Services...... 3 Qualifications...... 3 Partial Client List (Food & Beverage)...... 4 Consultants Qualifications...... 4 Recommendations from Ricardo's LinkedIn Profile ...... 5 Understanding Hispanics...... 6 Latinos Communicate at a Spiritual Level...... 8 Non-Verbal Latino Communication & Social Networking...... 10 Validity Concerns in Hispanic Survey Research...... 13 U.S. Hispanic Market - Qualitative Research Practices and Suggestions...... 17

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Services

Qualitative Research http://www.hispanicresearch.com/qualitative-research

Quantitative Research http://www.hispanicresearch.com/quantitative-research

Secondary Research http://www.hispanicresearch.com/secondary-research

Online Research http://www.hispanicresearch.com/online-research

International http://www.hispanicresearch.com/international

Consulting Services http://www.hispanicresearch.com/consulting

Translation & Interpreting http://www.hispanicresearch.com/translation-and-interpreting

Public Speaking http://www.hispanicresearch.com/public-speaking

Qualifications

Hispanic Research Inc. stands as an industry leader in both qualitative and quantitative Hispanic research. We are experts on the subject. Since 1982 we have interviewed thousands of U.S. Latinos on almost every subject imaginable. We know the Latino mindset; we have studied the background that shapes almost every Latino decision.

Our experience in the research industry is also very extensive. We are extremely involved in industry organizations like the Marketing Research Association, the American Marketing Association (AMA), and the Qualitative Research Consultants Association (QRCA). Ricardo López has presented at the last two national MRA national conferences and at the last QRCA national conference and two reginoal AMA events. He is again scheduled to speak this year at the QRCA conference and the Fall MRA conference. He expresses his opinions on the Latino market through regular article submissions to our blog, www.LatinoOpinion.com, and is often quoted in industry publications. We are attaching to this document three recent published articles that exemplify our experience in the Hispanic research arena.

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Partial Client List (Food & Beverage)

• Anheuser-Busch Inc. • Becks Beer • Brown Forman • Carbonell Olive Oil • Chick'Fil-A • Coca Cola • Dr. Pepper • Frito Lay • Gallo Family Vineyards • Hormel • Masterfoods USA (M & M ) • McDonald's • • Pernod Ricard USA • Pueblo Supermarkets • Samuel Adams • Seagram's • Tyson Foods • United Distillers • Wakefern Food Corporation (Shop Rite) • Wendy's

Consultants Qualifications

Ricardo López and Otto Rodriguez would both be directly involved in servicing this research project.

Ricardo A. López President

Mr. López has been studying the U.S. Hispanic market for over 25 years. He is often quoted as a Hispanic market expert in business and consumer publications. Some of these publications include QRCA Views, Quirks, Advertising Age, Marketing News, MRA Alert, as well as many national and local newspapers. Mr López understands the complexity of the U.S. Hispanic community. His own Hispanic heritage includes Venezuela, Cuba, , Costa Rica, and Spain. He has also worked extensively in Mexico, for the government of Spain and is fluent in both English and Spanish.

Mr. López started his career on the quantitative side and continues to make inroads in quantitative research. In 2007 he presented at an MRA conference on how to conduct survey research among Latinos and has developed several models to improve Hispanic survey validity.

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Mr. López is also very well versed in qualitative research; he is past President of the Qualitative Research Consultants Association (QRCA) and conducts hundreds of individual and group interviews every year. He is a well-respected member of his hometown in New Jersey and is highly regarded in the marketing research community. He received both a BS and a BA degree in Marketing and Mass Communications from King’s College and an MBA in Marketing Research from Syracuse University.

Otto Rodriguez Vice President

Otto J. Rodriguez joined Hispanic Research Inc. as a research consultant in 1999. Based on his remarkable accomplishments, expertise and proven track record, he was promoted to vice president in 2001. Otto also manages the operations conducted out of the Miami, Florida satellite office, which serves a variety of domestic and international clients. Otto brings a wealth of multifaceted talents to the marketing research arena. Before becoming a research consultant, he worked in the financial service and insurance industry. Otto has a degree in Business Administration from Miami Dade College, has been a licensed Life, Health and Variable Annuities / Insurance sales representative, a series 6 licensed agent for the National Association of Securities Dealers (NASD), current member of the Qualitative Research Consultants Association (QRCA), and is affiliated with a variety of industry and civic organizations in his hometown of Miami, Florida.

Recommendations from Ricardo's LinkedIn Profile

• “Ricardo is an expert in his field and I encourage anyone needing research or consulting on the Latino market to speak to him. If you work with Ricardo, you will not be disappointed. He's insightful, extremely knowledgeable and great to work with.” Andy Borinstein, Executive Director at Time Inc.

• “Ricardo and I share membership in the QRCA and know each other via its forum and having worked together on an early version of the forum committee. He is a keen insight into the association and his contributions are always sound. I consider him the go-to-guy on any question I might have regarding the Latino community, but that is only one part of his professional abilities.” Barry Deutsch , Principal Owner , DeutschConsult

• “Ricardo is a keen observer, great team skills, knows his stuff in depth, and an all around good guy.” Bill Hammer , Owner , Hammer Marketing Resources

• “Ricardo Lopez and Otto Rodriguez at Hispanic Research, Inc. are the gold standard when it comes to any kind of Hispanic consumer studies - interviews, focus groups, ethnography, in- homes, intercepts, etc. They work closely with you to understand the purpose of the research and tailor the work and target interviews appropriately. Their breadth of understanding of the diversity within the Hispanic market is outstanding, from country of origin to acculturation and class / income. As a result, they are able to help you focus your studies directly where you can realize the most value. I have worked with them many times and recommend them without reservation.” Alex Ulanov, Senior Principal at The Boston Consulting Group, Inc. (BCG)

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• “Have worked with Ricardo on a wide range of subjects--from beverages to teens to financial solutions to end of life care. Ricardo is a quick study regardless of topic and quickly and easily joins the research and marketing teams contributing an enriched set of marketing insights. Gladly recommend him.” Greg Rathjen, Owner, marketecture

• “Ricardo is a business consultant with deep, wide knowledge of the Hispanic market and the years of expertise to make any project a success. He is an excellent teacher of all this related to Hispanic marketing and is also a consummate professional. He is an asset to any project you can think of. Take the time to tap into his excellent expertise!” Lori Hamilton, Owner, Prosperity Productions, and What If Productions

• “When I require a Spanish speaking research partner for a project, there is never hesitation in my choice of Ricardo Lopez. In all circumstances where I have worked with Ricardo, my client has given positive feedback on his demeanor, professionalism, skills and warm, friendly personality. My company specializes in healthcare which requires a certain degress of technical acumen and command of a unique language. Ricardo has always been a quick study who is prepared for his work, regardless of industry. I highly recommend Ricardo as a Qualitative Research Consultant." Kendall W. Gay, Principal, Kendall Gay Consulting, Inc. - Qualitative Healthcare Research

• “Ricardo has helped on on multiple projects. We rely on his expertise in multiple areas. He is a top rate bi-lingual focus group moderator and an expert in the US Hispanic consumer. We value his service and expertise. In our business, repeated use of a service provider is endorsement enough. We will continue to use Ricardo and Hispanic Research Inc. as the opportunities present themselves.” Tom Hinze - Market Research Director at DHC

• “Ricardo Lopez is an intelligent, intuitive moderator who can make respondents feel completely at ease.” Shifra Lipson , Owner , Shifra Lipson, Spanish Inte

• “Ricardo has deep knowledge of his subject area, and has associates that help bring your project to fruition effectively and efficiently. As a supplier of market research services, this is a great asset.” George A. Wachtel, President, Audience Research & Analysis

• “No better choice when you need an expert in the Hispanic market.” Kevin Lonnie, President, KL Communications

For more information on our company background, services, and qualifications, please visit our website at www.hispanicresearch.com.

Understanding Hispanics

The U.S. Hispanic market is extremely complex. As a group, it represents 44.3 million individuals (2006 American Community Survey)- 64% of which are of Mexican origin. The Mexican segment is very diverse; including Hispanics that have been in this country for over 7 generations, and many who just immigrated recently. There are at least 19 other Latino country sub-groups and there is very little in common among many of these

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subgroups. Even language can drastically vary. Geography (even within the state of California), age, and acculturation can further muddle image.

It is often difficult to adequately conduct quantitative research with Latinos because they tend to be extremely agreeable. Hispanics are more likely than the general population to answer questions in a positive light while hiding their true feelings about the issue. This tendency to "be nice" is culturally based. Qualitative research is usually more effective than other methodologies in breaking this cultural barrier for two main reasons: 1) Latinos are more likely to use non-verbal cues in communicating, and 2) Trained moderators can easily read the true feeling behind the Latino answers. For more information on issues that can arise in quantitative research please refer to the article Validity Concerns in Hispanic Survey Research, which is included in the appendices. Hispanic Research Inc. has developed ways to ensure that our quantitative research avoids the validity concerns mentioned in the article. For more information see http://www.hispanicresearch.com/services/quantitative-research.

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Latinos Communicate at a Spiritual Level

(From: LatinoOpinion.com)

There is something peculiar about Latino interactions. Our communication goes much further than what is simply verbalized by the spoken words. We prefer to connect at an emotional, or at what I prefer to call a spiritual level. In my work interviewing Latinos I have witnessed this peculiarity in a consistent basis. Latinos generally feel more comfortable dealing with people when there is an established emotional bond among them. Yes, I know, almost everyone does; but Latinos are different in that they seek this emotional connection in almost every daily interaction. The connection with the person is almost more crucial that the verbal communication itself.

Perhaps my point is best described through examples. Have you ever been to a Latino or neighborhood store? A large supermarket chain in the northeast hired me once to understand why Latinos shop at what they considered to be low quality stores. “We do not get it,” my client said; “we are loosing customers to a store that is not very clean, is totally disorganized, carries very little variety of merchandise, and is more expensive than ours on almost everything!” I visited the Latino store in question and interviewed many of its customer. Their loyalty to the store had little to do with the merchandise they carried or the price point of the products offered; they shopped there because they felt at ease interacting with the employees. Here is a typical customer comment.

“I like coming here because I can talk to the butcher about his family; and the cashier knows who I am. The employees care about me and I care about them. In other places they try to rush you through the check out and do not care to chit-chat. If I am dealing with people, I like to feel like I know them.”

On another project a large insurance company wanted to understand the importance of having Latino sales representatives. They were of the opinion that the most important aspect in selling their services were the details of the plan and their pricing structure. They had translated their brochure into Spanish and were disappointed in the Hispanic receptivity. In talking to their customers and agents over several focus group interviews I, once again, came across the importance of connecting at an emotional level.

“I do not care to read the details of the plan or for the salesperson to give me a dissertation about the benefits. I prefer to deal with a Latino agent because they are more likely to understand what I want. My current agent knows me and my family well and he cares to ask how we are doing. I trust him personally, so I trust that what he recommends is good for me.

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A friend at work once convinced me to meet with an agent who had a very structured sales presentation; I did not trust him at all.”

A good friend of mine who is not Latino once told me the story of how his company, a liquor company, went about securing a merger with a Mexican brandy manufacturer. A team from the American company was sent to Mexico to finalize the details of the deal with the owner of the Mexican company. Their task was to convince the Mexican owner of the viability of the deal. They were prepared with all their financial backup, analytical charts, reports, and their laptop computers. They were picked up at the airport by an employee of the Mexican company who took them, to their surprise, to the private residence of the company owner. The were greeted there by the owner, a few employees, and the owner’s family. They ate, drank and shared stories with the Mexican family until someone from the American team asked when they were scheduled to discuss business. At that point the owner of the Mexican company said, “I just needed to know you better, they deal is sealed. You can work out the details with my people in the morning.”

All of these examples point out the importance that Latinos place on communicating using something that goes beyond words and facts. In Latino interactions we pay a lot of attention to how we feel about the person we are communicating with and rely heavily on visual, tactual, and other non-verbal cues. Touching, kissing, hugging, storytelling, tangents, and verbalizing feelings are all important components in Latino interactions. Through our unstructured style of telling stories and going on tangents we get to learn about each other. We seem to unconsciously monitor how the other person reacts and pay close attention to how we feel about those reactions. We use exaggerated non-verbal and verbal expressions to communicate feelings because we know how crucial it is to connect at the emotional level. I find that Hispanics do this even if they are not consciously aware of doing it.

In researching Latinos one has to be keenly aware of how Latinos interact and how they prefer to communicate. Not surprisingly, qualitative research works very well with Latinos because it lends itself to our peculiar communication style. Online research, however, is often problematic- not necessarily because Latinos are not online; but rather because the methodology currently relies on very structured text questionnaires and ignores the other important communication components. In a future posting I’ll touch on how Latinos are bringing their unique communication style to the online world and how it is indeed possible to build online spiritual interactions.

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Non-Verbal Latino Communication & Social Networking

(From: LatinoOpinion.com)

I have written before about how Latinos prefer to interact at an emotional or spiritual level. Achieving this heightened level of communication means going further than the articulation of words and connecting by relying on information that transcends the spoken language. Is this communication preference limited to Hispanic consumers? Of course not. And it does not apply to all Latinos either; but I am a market researcher, and we are in the business of generalization. My contention is that Hispanics in the U.S. are more likely than non-Hispanic consumers to rely on non-verbal communication and gut feelings in almost every interpersonal encounter. In a prior post I gave some examples of this phenomenon. Here I would like to expand on the subject and explore how this communication style works in the digital world of social networking.

Let’s start by looking into how Hispanics gain this emotional connection. One thing that Latinos overly rely on to gain a better understanding of one another is the use of non- verbal communication cues. The cues include facial expressions, hand and body movement, physical touch, voice pitch, voice sounds (not the articulation of the words), physical appearance, emotional appearance (like teary eyes), and even smell. I did not realize how often I used non-verbal cues to communicate until I started dating a non- Hispanic girl who once asked me why I smacked my lips and made other sounds to convey my feelings, instead of simply expressing them verbally. As I have said in prior articles, Latinos are very emotional creatures; but that does not mean that the emotions are always verbalized. From the loud moaning of a man who who just stubbed his toe, to the exaggerated screams of a mother whose child just took his first step, Latinos excel in the use of sound and facial expressions to convey emotion.

Many of you will know that Latinos are also keen on physical connection. Hugs and kisses are normal in everyday interactions. It is normal for Latino men to greet females with a kiss; even if they do not know each other well. Men also hug each other as a sign of affection. In fact, a very common closing for a business letter in Latino correspondence is “un abrazo” or “a hug.” In interviewing Latinos I sometimes use touch to communicate that I understand and care about what they have to say. Simple gestures like a hand on the shoulder or a handshake are effective. In some instances when a respondent became very emotional I have offered a hug. I don’t know that I have ever used touch in non-Hispanic interviewing. While it may be easy to understand the

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importance of using physical touch in Latino interactions, you may have more difficulty conceptualizing the role that smell plays in the communication.

Okay, I think we can agree that if a person reeks with body odor, the smell will undoubtedly affect his or her personal interactions! But BO aside, odor is used extensively by Latinos in communicating. Many Hispanics use perfume or cologne to convey their personality; an the smell of a particular brand of perfume becomes a part of who they are. Sometimes the smell is used to convey how much they care about their family. When my daughter Marina came home my mother was at our house with a basket of goodies. Among them was a bottle of “Violet Water,” a cologne that Cubans like to use on babies. My mother explained to my wife (who is not Hispanic) how good it was to use this fragrance because it conveys that you care about your baby. Latinos also use fragrances in other areas to communicate something about them. Colgate Palmolive, for example, has a very successful line of cleaning products called Fabuloso. Most Latinas know that Fabuloso is not a very good cleaner; but they also agree that cleaning is not the main purpose of that product. They buy it because in the Latino culture the smell of products like Fabuloso is extremely important in conveying how a woman takes care of her house and her family. The same holds true for the laundry products they use. The clothing needs to have a particular fragrance. Undoubtedly, the sense of smell is very much a part of the Latino communication process.

Body and hand movement is also extremely important. Many Latinos find it necessary to move their hands in order to communicate effectively. I find myself using hand movements even when I talk on the phone and nobody sees me! I have said many times that if you tie my hands I am unable to speak. Voice pitch and volume is also used extensively among Latinos. This sometimes varies by Latino country of origin. Cubans, for example, are culturally very loud in their communication. In everyday social gatherings Cubans are accustomed to raising their voice to get the group’s attention and are perfectly at ease with all of them talking at the same time. When I moderate focus groups in Miami I have to warn clients about this unique social preference because I need to allow it to happen (to an extend) in order for the communication to flow “normally.”

Given the propensity for Latinos to use non-verbal communication that goes far beyond what can be communicated through text; how do Latinos manage to engage effectively in social networking? The interesting thing is that Hispanics are very fond of social networks like Facebook and MySpace an the Latino communication in those networks is thriving! Why? Because these networks have been successful in digitally emulating non- text communication through the use of photographs, music, recorded voice, video, chat, digital gifts, quizzes, news, status updates, group affiliations, games, personal information, links, and hundreds of add-on applications that often reveal the more personal or emotional side of the user. These “gimmicks” that we reject in business communication are very much a part of what social networking is all about. In some Latino specific networks like MiGente members often set their own color scheme and background music for their profile. All of this contributes to the “personal appearance” of the user and can be compared to the importance of clothing styles or makeup in personal interactions.

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Communication on the Internet has moved far beyond the simple emoticons used in text email interactions. Even business networks like LinkedIn can now incorporate visual presentation documents in the member’s profile and applications like Tripit, reading list, and embedded WordPress blogs (this blog is on my profile). The ways we can now interact online fit very well with the Latino communication preferences. Unfortunately, marketing research has not yet taken full advantage of these new methods of communicating. With the possible exception of some online qualitative research and online research communities that include Facebook style social networks, most of the research that is currently conducted online continues to be static text (read as boring) questionnaires with complicated grids, numeric scales, and unappealing business formatting. This type of research communication, as you can surmise from my writing, does not work very well with Latinos.

Why are we not using visually appealing backgrounds, photographs, sound, and video in online marketing research? In training websites we often see a video of a person who explains what you are looking at on the screen and asks questions. Wouldn’t it be great to have research questionnaires “administered” by a videotaped individual? How about a truly administered survey through a webcam? The technology today even allows us to voice-record open ended responses. When online marketing research catches on with the technology that networks like Facebook use to engage their members, then Latinos will feel more at home in completing an online survey. But in the meantime I may have to continue recommending other methodologies over online for Hispanic research work.

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Validity Concerns in Hispanic Survey Research

This article was published in the Marketing Research Association's magazine, Alert! To access the published version of the article click here.

By: Ricardo A. López - President, Hispanic Research Inc.

By now everyone has heard about the growth of the U.S. Hispanic population, and many companies are now including Latinos in their research plans. The research industry has eagerly responded with an unprecedented number of companies offering Hispanic research services. This is a positive development. When I started suggesting the inclusion of Latinos in general market research in the mid 80s my clients thought I was crazy; and I probably was, because there were very limited options back then for appropriately fielding a Latino survey. Things have changed! Or… have they? Today almost every big player (and many smaller ones) claims to have the ability to conduct Hispanic market research. The problem is that research companies are surveying Latinos using the same “proven” process that has been established to be successful and appropriate for general market studies. There is ample evidence, however, that conducting research with Latinos using this “proven” approach is yielding invalid research data. This article explores the reasons behind the Latino research validity problems and suggests ways to improve Hispanic data collection.

In order to understand how Latinos respond to surveys we need to appreciate the cultural differences between Hispanics and non-Hispanics. A lot can be said regarding the fact that the “Hispanic community” is really a U.S. marketing invention that was fueled by our industry’s eagerness to classify individuals who did not fit well into our standard classification categories. After all, Hispanics come from as many as 20 different countries of origin and include individuals of every race (Hispanic is not a race – see my blog entry Let's stop Segmenting People by Race). However, there is no denying that most Latinos share a common language as well as certain cultural characteristics and values that unite them as a group; and many Hispanics in this country have come to identify themselves with –their– “Hispanic community.” These commonalities are what set Latinos apart as a market segment and make them different from non- Hispanics. Let us take a closer look at the Hispanic/non-Hispanic differences and why they affect data collection methods and data validity.

Many Hispanics are new immigrants who were born outside of the U.S. and are not as familiar with opinion polls and survey research. Opinion research is such a big part of our American society that we take it for granted that respondents know about surveys and polls; but in most of Latin America consumers are not as exposed to marketing research as we are in the U.S. Many Latinos approach survey questions as if it were an academic exam or a government form because this is their only frame of reference. In that mindset, the Latino respondent struggles to come up with the correct answers to the survey questions. Logically, giving the wrong answer always has negative ramifications when completing tests or government forms. In researching Latinos, especially unacculturated new immigrants, great care must be taken in explaining the research process.

Not being familiar with surveys has other consequences as well. Again, in our industry’s American mentality we take many things for granted. For example, we assume that people are familiar with the concept of a number scale. When asked to rate something on a scale of 1 to 10, many new Latino immigrants will select either 1 or 10 because they do not know that they are allowed to use numbers in between. Education also plays an important role in the respondent’s ability to complete a complicated survey instrument; and U.S. Latinos as a group have a lower educational level than non-Hispanics. Another factor that creates confusion in Spanish language surveys is the language used in the Spanish translation. Very often researchers purposely instruct translators to translate a survey verbatim because it has to be exactly the same as the English version to avoid interpretation errors. The problem is that this

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always yields a very awkward and confusing question narrative that often results in more significant data errors. Some words are even impossible to translate because they do not exist in Spanish. The word “parent” is a good example. In Spanish we say either “mother” or “father” and do not have a word for “parent.” Other language concerns include differences in some of the Spanish words used to describe the same object depending on the Latino country of origin; but these concerns are not as important as the overall survey communication approach.

Hispanics generally communicate differently from how non-Hispanics interact. Latinos usually prefer a more informal/emotional communication approach. In interacting with each other Latinos strive to connect at an emotional level before any exchange of information takes place. This tendency transcends all communication topics. Even in commerce, Latin Americans often do business by befriending each other first, and then work out the details after the deal is practically sealed. Latino communication relies heavily on non-verbal gestures, tangents, and storytelling. Hispanics connect with each other by avoiding structure. The communication thrives when it takes place in a typical Latino laid-back setting; and only then do Latinos feel comfortable in expressing their true feelings and opinions. A rigid structure brings out again the feeling of governmental or academia communication. As can be surmised, the way Latinos prefer to interact is the antithesis of how quantitative research communication is normally structured.

Cultural issues are also significant contributors to Hispanic research error biases. The Latino tendency to “be nice” in answering survey questions is culturally based. Once a Hispanic respondent agrees to the research interview, he or she usually feels compelled to do his or her best to be respectful to the interviewer and to not offend the sponsor by giving negative opinions. The Latino behavior when it comes to propriety and respect can be significantly different to that of non-Hispanics. Hispanics place a lot of weight on teaching their children the value of respect; and they often engage in respect-induced cultural rituals that would seem ridiculous to non-Hispanics. The popular crossover phrase “mi casa es su casa” (my house is your house) is a prime example of this attitude. It is not unusual for Latinos to introduce themselves to a stranger by adding the words “a servant” after their name. From a research standpoint this cultural affinity results in Latino respondents working very hard to answer the questions according to what they think the interviewer or research sponsor wants to hear. The issue is greatly compounded when Latinos are receiving an incentive honorarium for their responses because they then feel even more compelled to “be nice.”

The science of statistics dictates that in order to avoid errors in the data, all questions need to be asked to all survey respondents in exactly the same manner without any deviation or interviewer interpretation. Field companies take great care in training interviewers to only repeat the question if it was not understood by the respondent and to take only a response that exactly matches one of the alternative answers given in the survey. Rephrasing and interpretation is not considered appropriate. When conducting Hispanic quantitative research this practice can be extremely frustrating to the Latino respondent and often results in serious validity issues that dwarf the interviewer bias errors that we are trying to control. The problem is so pervasive that it affects the majority of all Latino surveys being conducted. Here is a typical scenario that one may witness when monitoring a Latino survey.

INTERVIEWER: Which of the following would you say is your favorite color? Is it white, green, blue, yellow, or red?

RESPONDENT: Oh that’s a good question! I think my preference comes from when I was a little girl. I remember that my grandfather use to take us out every Saturday for ice cream in his bright red truck. I have such good memories of how that truck would shine in the sun! It really makes me feel good about the color.

INTERVIEWER: Then, which of the following would you say is your favorite color? Is it white, green, blue, yellow, or red?

RESPONDENT: Well… just as I said before.

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INTERVIEWER: Ok, is it white, green, blue, yellow, or red?

RESPONDENT: Blue?

INTERVIEWER: Is that your answer?

RESPONDENT: Yes, I guess…

What happened here? The Hispanic respondent was communicating in a typical Latino fashion using tangents and storytelling. She thought she was being perfectly clear in her response and did not understand why the interviewer refused to take her answer. She could only guess that the interviewer was hinting that her answer may not be what they want to hear. She changed the answer in order to please the interviewer. The frustration felt by the respondent in this interaction would have also affected the rest of the survey.

Some survey research methodologies are more effective than others in obtaining the Latino opinion. As you can gather by now, the more personal the interaction, the more effective the survey is in engaging Hispanic respondents. This means that in-person administered interviews generally work the best; followed by interviewer-administered phone interviews. Computer administered phone interviews and self-administered online surveys are not as effective because they are considered impersonal and “too structured” for the way most Latinos prefer to communicate. Self administered paper surveys are by far at the end of the effectiveness spectrum and should be avoided when interviewing un-acculturated Hispanics.

There are many other issues that affect the effectiveness of Hispanic market data collection. Here are a few other areas of concern:

• Sampling accuracy often suffers because of the Latino tendency to live in households with many family members, their transitional or legal status, and their propensity for not having a phone registered in their name. Many sample companies do not have a good representation of un- acculturated Latinos. • Demographics that are commonly collected in general market surveys do not necessarily have the same connotation when interviewing Hispanics. Income, for example, is usually problematic because many have difficulty understanding the concept of household income. They often live in large households that not only house what we would consider the immediate family, but also other family members like aunts, uncles, cousins, and grandparents. Not only do respondents not know what their other family members make, the whole concept of household income becomes meaningless for comparison purposes. Income is also not a good measure of Latino social status because many highly educated new immigrants have disproportionably low income levels, and others with very low education may earn high incomes in demanding blue collar jobs. • Many companies translate open ended responses and then code those responses in English. This practice results in significant coding errors. Coding should be conducted in Spanish and then the codes can be translated into English. • Homework, diaries, and other heavily structured or complicated exercises do not work well with Latinos and should be avoided.

While the research industry has responded to the demand for Hispanic research data collection, it has failed to do its homework and is acting on the assumption that the industry’s “proven” research practices also apply to Latino survey research; but yet, they do not. As an industry we have the responsibility to adapt the research process in order to improve Latino data validity. A basic understanding of the Latino culture is necessary to effectively conduct research with Hispanics. We must adapt our approach and not act blindly thinking that we can merely translate a questionnaire, use a Spanish speaking interviewer, and achieve good results.

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STEPS TO IMPROVE LATINO DATA COLLECTION

• Understand that Latinos communicate differently and that their cultural background affects the way they respond to a survey. Having Hispanic staff managers that understand the Latino culture helps in avoiding the pitfalls of working under false assumptions and misconceptions. • Allow interviewers to communicate in a Latino style. Brief them on the purpose of the research so that they can prevent the introduction of interviewer bias while allowing for Latino storytelling and interviewer interpretation. Build the extra time required into the cost structure. • In the questionnaire design, take some time to explain up-front the importance of total honesty in their responses and how “being nice” means giving negative responses, if warranted. Design instruments that use simple ordinary language, and avoid complicated scales, grids, or responses that require percentage summation. Also avoid complicated homework assignments or structured diaries. • For Spanish surveys the questionnaire should be either written in Spanish first (if the interviews will be conducted only in Spanish) or translated by a research professional who understands the importance of maintaining the same meaning while making it flow correctly. Do not insist on a verbatim translation that can result in more detrimental data errors because of language misunderstanding. • Use Spanish speaking coders to code Spanish open-ended responses. • Test the questionnaire thoroughly with Latino respondents and monitor closely to identify potential cultural issues that may be affecting the Latino responses.

1 Springfield Rd., East Brunswick, NJ 08816 - Tel. (732) 613-0060 - Fax (732) 613-8612 - Email: [email protected] Page 16 • QUALITATIVE TOOLBOX •

U.S. HISPANIC MARKET — Qualitative Research Practices & Suggestions

B Y R ICARDO A NTONIO LóPEZ Chair, QRCA Latino SIG • [email protected]

has been over a year since the formation of the QRCA Latino SIG, the first official Special Interest Group of the QRCA. The idea of forming an alliance It of Latino qualitative research consultants had been tossed around for years. Part of the motivation came from the desire of U.S. consultants to collaborate Despite popular with each other on ways to effectively conduct research among U.S. Hispanics. belief, Hispanic is not a race. This is probably the single most critical misconception that can significantly affect a research project.

44 QRCA VIEWS SPRING 2008 www.qrca.org Conducting research with Latinos in the U.S. validity concerns in screening respondents for entails having competencies that are not generally qualitative research studies. gained through general market research experience. Not surprisingly, one of the main objectives of Research Design and Methodology the Latino SIG is to educate researchers on how In designing a Latino research study, it is important to conduct research with Hispanics in the U.S. to select the right markets because market differ- This article outlines a series of practices and ences can be quite drastic in the Hispanic commun- suggestions that can serve as a guide for any ity. Besides the usual geographic differences, there researcher venturing into this complex American are often significant differences in acculturation market segment. levels, education, number of years in the U.S. and the Latino country of origin. It is therefore generally Dealing with U.S. Hispanic unadvisable to conduct research in only one Idiosyncrasies and Misconceptions market and then use it to infer the opinions of The U.S. Hispanic market is not a homogeneous the Hispanic market as a whole. group of consumers; rather, it is a very fragmented This is especially the case with a market like and multifaceted tapestry of Latino backgrounds Miami, which, while remaining a very important that include as many as 20 countries of origin, Latino city, is completely different from other many levels of acculturation, geographic differences, cities with large Hispanic populations. The U.S. educational and income disparities, language Census Bureau provides detailed information on variations and many different ethnic and racial all U.S. Hispanic markets through its website: influences. To do research with Latinos, the QRC www.census.gov. must have a basic understanding of the Hispanic Here are some of suggestions that can help at market and must set aside preconceived notions the design and methodology stage: that may apply only to a particular segment of • In deciding the makeup of focus groups, it is the Latino community. preferable to avoid very disparate levels of Marketers sometimes carry with them many education and/or broad age ranges. If partic- misconceptions regarding the Hispanic market ipants are not screened accordingly, it is not that can greatly affect a research project. These unusual to end up recruiting a participant misconceptions are sometimes even present in with a 4th-grade education and another one Latino marketers who know little about Latino with a Ph.D. Mixed-gender groups can also cities or segments other than their own. As a be problematic in certain situations where result, the job of the QRC often goes beyond there are clear Latino social tenets on male moderating and consulting and into the realm versus female behavior. of education and sociology. • It is extremely important to pay attention to One question that always pops up is the appro- language proficiency at the design stage. A priateness of using the term “Latino” versus the group session with “bilingual” participants term “Hispanic.” Which one is the correct term? where some speak very little English and The answer is both. The terms “Latino” and others speak very little Spanish does not work “Hispanic” are used synonymously in business well. Even more difficult is a Spanish-language and are both generally accepted when referring group that includes some bilingual participants to the U.S. Latino community. However, in the who switch back and forth from English to Latino consumer’s perspective, the term “Latino” Spanish and other participants who do not is often preferred, as it is the correct Spanish speak English at all. word to define people who come from Latin • In designing the interviewing guide, avoid America. “Hispanic” as a term is rarely used in the tendency to include questions for every Latin America, and it sounds odd in Spanish. possible information need. This tendency is Despite popular belief, Hispanic is not a race. very prevalent in Hispanic research because This is probably the single most critical miscon- companies have more limited budgets for ception that can significantly affect a research Latino research studies or have never con- project. The term should never be used in con- ducted Hispanic research before. junction with race categories like “Black” or • Consider focus groups on Saturdays. Many “Caucasian.” Not only is it technically incorrect Latinos have difficulty attending a session to use the term as a race category, but it also during the workweek because of transportation creates confusion among research respondents and childcare issues. because some Latinos have come to believe that • Written exercises can present problems in their race is “Hispanic,” while others vehemently conducting Hispanic research because of low oppose selecting “Hispanic” as their race. education levels and illiteracy among Latinos. Misunderstanding of this issue can lead serious In addition, some second-generation Latinos

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who prefer to speak Spanish cannot read or involved in the research process by giving the write appropriately in Spanish because they client the opportunity to effectively observe were never offered the opportunity to learn a live interview. This is especially significant Spanish in school (as it is not a required part in Latino research where clients are often new of the curriculum in most U.S. schools). to the market and can greatly benefit from • Structured homework exercises like diaries firsthand involvement. It is difficult including or complicated assignments are usually clients in nontraditional venues, however, ineffective with Hispanics because Latinos because of the need for an interpreter. prefer an approach that is more informal/ • Methodologies that allow interviewing Latinos less structured. in their own environment, like in-home inter- • Latino respondents often react better to less views and ethnographies, work very well structured/less formal methodologies that because they help avoid the feeling of do not require entering a corporate office inadequacy that is often experienced by building and sitting around a conference Latinos in the more structured corporate table. This is especially important in trying (institutional, in their mind) research facility. to enlist the opinion of illegal immigrants who fear deportation. If using a traditional Latino Recruitment facility is necessary, a living-room-style Recruiters hired to field Hispanic market studies setup can help transcend the corporate should be experienced in recruiting Latinos. They boardroom image. need to understand how to relate to the respondents • While conducting research at nontraditional and how to employ Latino communication skills. setups can greatly assist in making Latinos These skills often include a more informal/ feel comfortable, the QRC needs to take into personal recruitment approach. Experienced Latino account the importance of having the client recruiters understand the importance of being

46 QRCA VIEWS SPRING 2008 www.qrca.org CONTINUED U.S. Hispanic Market

respectful, kind and reassuring. They allow have difficulty understanding the concept res-pondents to be honest, and their recruitment of household income. It is also not a good approach minimizes the Latino tendency to say measure of social status because many highly (just to “be nice”) that they can come to the educated new immigrants have dispropor- interview and then fail to show up. tionably low income levels, and others with Just having one Spanish-speaking recruiter does very low education may earn high incomes not make a facility capable of recruiting Latinos: in demanding blue-collar jobs. the recruiter must be qualified in Hispanic recruit- • If writing exercises cannot be avoided, the ment. Here are some suggestions in the area of screener should inform the prospective par- recruitment: ticipants that reading and writing in the • Respondents recruited to participate in language of the group will be required. This Spanish-language interviews should be gives people who have difficulty with reading recruited in Spanish. and writing the opportunity to opt out • The screener should be developed by taking without embarrassment. into account the cultural nuances of the Latino • Latinos are notorious for being late, and some community. It is generally agreed, for example, of that reputation is well deserved. The practice that asking the respondents to identify their of holding a raffle for an additional cash incen- race is problematic at best because there is a tive among people arriving on time (usually lot of confusion regarding race. Instead, it is 15-30 minutes before the group) works very better to have the respondents identify them- well with Latinos and helps improve show rate. selves as Latino and to then ask other questions to determine their acculturation level, number Facility and Other Fieldwork Issues of years in the U.S., language preference, etc. Using an experienced Hispanic market recruiter Income is usually problematic because many and understanding the cultural issues that can

QUALITATIVE RESEARCH CONSULTANTS ASSOCIATION 47 U.S. Hispanic Market CONTINUED

affect recruitment are crucial. Many qualitative differences are not dialects of the language. This research facilities understand the importance of is another common misconception. While the use using a professional Latino recruiter, and they of the Spanish language can vary from country handle their Hispanic recruitment needs by subcon- to country, it all follows the regulations of the tracting their Latino recruitment services. Spanish Royal Academy and is taught uniformly Offering Hispanic qualitative field services, in all Spanish-speaking countries. however, goes beyond recruitment; there are many There are, however, a few other languages other facility and fieldwork issues that must be spoken in Latin America (e.g., the native Maya taken into account. Here are some suggestions: languages spoken in parts of Guatemala), and • When working with Hispanic mothers, it is the people who speak these languages are not sometimes advisable to provide childcare generally included in U.S. Hispanic research. One service at the facility. The facility should be very important segment that is generally excluded prepared to handle participants who show are the people from Brazil because they speak up with their children. Portuguese. Research with Portuguese speakers in the U.S. is always conducted separately from Methodologies that allow that of the Hispanic segment and necessitates a QRC who is fluent in the language. interviewing Latinos in their Conducting research with Hispanics “in language” results in yet another set of issues own environment, like in-home that a researcher must take into account: interviews and ethnographies, • The researcher should plan on having all materials translated (concept statements, work very well because they pre-group exercises, storyboards, etc.) if the methodology includes Spanish-dominant help avoid the feeling of interviews. The moderator or interpreter inadequacy that is often should not be expected to translate materials before the groups or on the fly. experienced by Latinos in the • For in-language groups, hire a qualified/ experienced simultaneous interpreter. The more structured corporate job of the QRC is often dependent on the (institutional, in their mind) competency of the interpreter because the client grasps only what the interpreter is research facility. able to translate. Interpreters must be capable of translating continuous conversation • Providing transportation to and from the streams. Professional interpreters with facility significantly increases the show rate experience in other fields that allow for and helps include participants that would a pause for translation (e.g., court be otherwise unable to attend. interpreters) may have difficulty handling • It is extremely advisable to insist on a bilingual continuous conversation. Good qualitative host for welcoming and re-screening Spanish- research interpreters know how to read dominant participants. A friendly and talkative nonverbal cues and use nuances and Hispanic host or hostess can also make par- emotions as they interpret the language. ticipants feel comfortable from the get-go by This is extremely important in conveying making them feel welcomed and by treating Latino opinions that very often include them as houseguests. more meaning than what is simply being • Latino participants are often not familiar with verbalized. Being able to catch the emotions the office layouts in corporate-type buildings and feelings behind a statement can make and find themselves intimidated when trying an enormous difference. to find the research facility. In these cases, it • Strongly advise against the client tendency to helps tremendously to have a bilingual host invite a Spanish-speaking company employee to or hostess in the lobby area and to post signs serve as a back-room translator. Just speaking in both languages directing the respondents the language does not mean that you are able to the facility. to translate a conversation. • Interpreters that are excellent translating from Language and Interpreter English to Spanish may not be competent While people from different Latino countries translating from Spanish to English. The speak with different accents and sometimes use reverse is also true. Check that the interpreter different words when referring to familiar things, is competent working in the desired flow of there is primarily one Spanish language, and the the translation.

48 QRCA VIEWS SPRING 2008 www.qrca.org CONTINUED U.S. Hispanic Market

• Instruct the client on the importance of not interrupting the interpreter or asking questions that can disrupt the communication flow. • Ensure that the facility can provide the interpreter equipment if an interpreter is needed. The equipment should include, at the very minimum, a headset for the interpreter and a way of recording the language translation. Optimal equipment includes headsets for everyone in the viewing room and the ability to choose the language (room language versus interpreter’s voice). Check that someone in the facility knows how to use the equip- ment and can fix unexpected equipment problems before and during the interviews.

Moderating Latinos The language, country of origin and accent of the QRC usually do not pose a problem in moderating Latinos with different background characteristics. As long as the QRC can speak Spanish correctly and is somewhat familiar with the most common colloquial words used in Mexico and the Caribbean Latino countries, he or she can effectively facilitate a Latino interview. However, in moderating Latino groups, it is important for the QRC to be an experienced research professional who is able to establish an “emotional Latino connection.”

QUALITATIVE RESEARCH CONSULTANTS ASSOCIATION 49 U.S. Hispanic Market CONTINUED

Hispanics generally interact at an emotional level. it is crucial for the moderator to avoid being In order to open up and share, they need to feel perceived as having a higher status or authority. connected with the interviewer. This connection is High-fashion clothing, expensive jewelry, a not always easy to achieve with traditional qual- bigger chair or other status symbols should itative research approaches. Many Latino QRCs be avoided if at all possible. find themselves sharing their own personal stories • Latinos are generally less familiar than non- in order to establish a strong emotional connection. Hispanics with marketing and opinion research. Many also work very hard to bring themselves to It is beneficial to briefly educate the respondents the level of the respondent in order to deal with on the value of their opinions. This gives par- cultural class barriers. ticipants permission to be honest and to think Here are some suggestions in moderating Latinos: more broadly when providing their feedback. • Treat the respondents as if they were guests in • Interviewing techniques that require a lot of your house. Every QRC has his or her own style in-depth probing like laddering can be difficult of making respondents feel comfortable, but it with Latinos who are not accustomed to is important to relate “in culture,” which (for communicating in such a structured linear Latinos) is at a more emotional level. It may be fashion. Free association, mind mapping and helpful to allow them to eat during the groups other less linear techniques are more in line or to offer drinks and/or snacks as if you were with the Latino tendency to communicate entertaining. Some experienced Latino QRCs through tangents and storytelling. like to greet participants by shaking hands at the • Simple projective techniques like describing a door and thanking them for coming. brand as if it were a car or an animal can be • Some Latinos have a tendency to be overly effective in drawing opinions from the less respectful when communicating with individuals educated Latinos who have difficulty artic- who are perceived to have a higher socio- ulating. However, more complicated projectives economic status. In moderating Latino groups, that involve visualization can be very difficult to conduct among Latinos. Hispanics often have diffi- culty “playing the game” and cannot visualize beyond the physical attributes of the product or brand. • Moderating Latinos invariably involves allowing for tangents and storytelling. The client must be aware of the need for the QRC to allow the communication to flow in a Latino style. The guide in a Latino group rarely flows in the linear/structured fashion in which it was designed. • Experienced Latino QRCs are also adept in reading body language/nonverbal and emotional cues from the participants and at translating this learning by repeating what was heard for confirmation or through the analysis and report. • Latino communication often involves informal joking and poking fun. An experienced QRC can use humor and “chispa” (Latino wit) to his or her advantage as a way of warming up a group.

50 QRCA VIEWS SPRING 2008 www.qrca.org Summary In closing, it is important to emphasize that these practices and suggestions are not rigid tenets to follow in conducting U.S. Hispanic qualitative research, and they are not intended as an industry code of conduct. Every QRC has his or her own style and approach, and there are many ways of achieving the same excellent results. The infor- mation contained in this article came largely from an online discussion with many members of the QRCA Latino SIG. The goal of the QRCA Latino SIG is to ensure that the issues covered in this article are taken into account when conducting research with U.S. Latinos.

Thanks to the all members of the QRCA Latino SIG: Jennifer Abad; Isabel Aneyba, MBA; Guy C. Antonioli II; Farnaz Badie; Cris A. Bain- Borrego; Elisabeth Beristan- Moreiras; Marta F. Bethart; Marco Cabrera Medaglia, MA; Enrique F. Castillo, Ph.D.; Enrique Domingo MBA; Gloria Dupre; Ricardo Escobedo V; Jackeline Fernandez, MBA; Rose Marie G. Fontana, Ph.D.; Linda Greenberg, Ph.D.; Eve Halterman, MBA; Felipe Korzenny, Ph.D., MA; Nancy H. Lang, MBA; Louise A. Lhullier, Ph.D.; Claudia M. Liemann; Ricardo A López; James M. Loretta; Maritza E. Matheus; Julie A. Medalis; Francesca Moscatelli, MA; Nhora B. Murphy; Beatriz Noriega Antonioli; Diva Maria T. Oliveira; Belkist Padilla; Lilian Pagan; Maria L. Parra; Angela Paura; Charlene R. Perea; Patricia Perea; Horacio Segal; Dana B. Slaughter; Timm R. Sweeney; Elba Valle; Astrid Velazquez; Adriana Waterston; Iris Yim; Martha G. Zipper.