ThinkNow Research - Hispanic Consumer Sentiment Study 2014

Hispanic Consumer Sentiment2014

Survey Background and Methodology

1. Summary of Key Findings

2. Survey Results

Household Financial Situation

Major Purchase Activity

U.S. Economic Outlook

3. Appendix

Contents

2

Research Methodology

3

Method: Online survey programmed and hosted by ThinkNow

Sample size:• Hispanics: n=500 (2013 and 2014)• Non-Hispanics: n=300 (2014 only)

Screening criteria: • Age 18-64

Sample quotas:

• Age bracket• Gender balance• Region• Primary language spoken at home (Hispanics only)Weighting applied to balance 2014 samples to U.S. Census data with respect to age, gender and region.

Test areas / cities: Nationwide

2014 Fieldwork dates: 1/2/14 – 1/15/14

Survey margin of error:At the 95% confidence interval: 2014 Hispanic sample (n=500) +/- 4.7%2014 Non-Hispanic sample (n=300) +/- 5.7%

Key Findings 1

Compared to last year, the economic situation and outlook among U.S. Hispanics shows improvement and/or greater stability going into 2014.

70% of Hispanics indicate their household finances have stayed the same or improved in the past year, up from 65% last year.

A significantly higher share of Hispanic consumers indicate plans to purchase a new smartphone this year compared to a year ago.

This year Hispanics are more likely than they were a year ago to expect both their own household finances and the overall U.S. economy will be “about the same as last year” rather than notably improving or declining.

Compared to non-Hispanics, Hispanic consumers express greater optimism about the economy and their own household finances.

Hispanics are significantly less likely than non-Hispanics to indicate their household financial situation worsened during 2013.

Hispanics are significantly more likely than non-Hispanics to report purchasing a home or condominium in the past 12 months and are also more likely to have plans to purchase a home or condominium in the next 12 months.

Key Findings

5

The desire for better gas mileage will be an important factor in new car and truck purchases for both Hispanics and non-Hispanics alike.

35% of Hispanics report plans to purchase a new car or truck in the next 12 months. Of these, 85% say getting better fuel economy is at least part of their motivation for purchasing.

Likewise, 35% of non-Hispanics report plans to purchase a new car or truck in the next 12 months, with 86% of these buyers reporting better fuel economy is at least part of their motivation for purchasing.

Availability of jobs and rising prices are the macroeconomic issues of greatest concern to both Hispanics and non-Hispanics alike.

A small, but growing share of Hispanics say the housing market is the economic issue that they are most concerned about.

While it is still the second most important concern to Hispanics, the survey finds that Hispanics are less concerned about rising prices than their non-Hispanic peers.

Key Findings

6

Survey Results 2

7

Recent Trend in Household Finances

Q: Thinking of all of the sources of income that contribute to your household, compared to this same time last year would you say your household financial situation has: Base: All respondents. indicates statistically significant differences (95% confidence)

Hispanics are reporting greater stability in their finances this year compared to last year. Hispanics are less likely than non-Hispanics to report a recent worsening of their finances.

8

29%

46%

21%

4%

1%

27%

53%

16%

2% 2%

0%

10%

20%

30%

40%

50%

60%

Improved Stayed thesame

Worsened Not sure Prefer tonot answer

Household Financial Situation Has…

Trends Among U.S. Hispanics

2012-13 2013-14

27%

53%

16%

2% 2%

31%

44%

23%

2%0%

0%

10%

20%

30%

40%

50%

60%

Improved Stayed thesame

Worsened Not sure Prefer tonot answer

Household Financial Situation Has…

Current Wave Comparison

Hispanics non-Hispanics

Outlook for Household Finances

Q: Thinking of your own personal and your family finances for 2014, which of the following would you say best describes your feelings towards this upcoming year? Base: All respondents. indicates statistically significant differences (95% confidence)

Hispanics are somewhat less optimistic about 2014 than they were a year ago about 2013, but the outlook of Hispanics and non-Hispanics for 2014 is not significantly different.

9

51%

28%

9% 10%

2%

46%

34%

9% 10%

1%

0%

10%

20%

30%

40%

50%

60%

better thanlast year

about thesame aslast year

worse thanlast year

Not sure Prefer tonot answer

I think my personal finances will be…


2012-13 2013-14

46%

34%

9% 10%

1%

42%

36%

13%

9%

0%0%

10%

20%

30%

40%

50%

60%

better than2013

about thesame as

2013

worse than2013


I think my personal finances will be…



Recent Purchases

Q: Thinking about major purchases that people might buy for themselves or their family, have you purchased any of the following in the past 12 months?Base: All respondents. indicates statistically significant differences (95% confidence)

Hispanics are slightly less likely than they were a year ago to report recent technology purchases, but are more likely than non-Hispanics to have purchased a new home.

10

28%

23%

24%

22%

13%

7%

12%

24%

20%

19%

18%

15%

10%

9%

0% 5% 10% 15% 20% 25% 30%

Smartphone with Internet suchas an iPhone, Android or

Samsung Galaxy, etc.

New tablet such as an iPad,Galaxy Tab, Kindle Fire, etc.

New computer or laptop

New home electronics such as aflat screen TV, home theater

system or game console

Large kitchen appliance such asa refrigerator, stove or a

washer/dryer

Home, condominium

Brand new car or truck


2012-13 2013-14

24%

20%

19%

18%

15%

10%

9%

26%

18%

25%

21%

15%

4%

9%

0% 5% 10% 15% 20% 25% 30%








washer/dryer

Home, condominium




Purchases Planned for Next 12 Months

Q: Thinking about major purchases that people might buy for themselves or their family, are you planning to purchase any of the following in the next 12 months?Base: All respondents. indicates statistically significant differences (95% confidence)

More Hispanics have plans to purchase smartphone in 2014 than was the case a year ago and Hispanics are more likely than non-Hispanics to have plans to buy a home or condo.

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33%

32%

35%

33%

32%

22%

21%

40%

36%

36%

35%

34%

26%

19%

0% 10% 20% 30% 40% 50%









washer/dryer

Home, condominium


2012-13 2013-14

40%

36%

36%

35%

34%

26%

19%

38%

43%

38%

35%

41%

26%

12%

0% 10% 20% 30% 40% 50%









washer/dryer

Home, condominium



New Car/Truck Purchases

Q: Was your decision to purchase a brand new car or truck motivated in whole or in part by the desire to get a car that gets better gas mileage?Base: Respondents who recently purchased or are planning to purchase a brand vehicle. No statistically significant differences (95% confidence)

The desire for better gas mileage is at least a partial motivating factor for more than 80% of Hispanics and non-Hispanics planning to purchase a vehicle in 2014.

12

77%

21%

2%

47%

34%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes, in whole Yes, in part No, gas mileagewas not an

important factor

Recent Vehicle Purchase

Was decision motivated by a desire for better gas mileage?

Hispanics

non-Hispanics*

42% 43%

15%

36%

50%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes, in whole Yes, in part No, gas mileage isnot an important

factor

Vehicle Planning to Purchase in 2014

Is decision motivated by a desire for better gas mileage?

Hispanics

non-Hispanics

* Sample size n=28. Statistical testing not valid.

Outlook for U.S. Economy

Q: Thinking about the U.S. economy in general, which of the following would you say best describes your feelings about where things are headed over the next year? Base: All respondents. indicates statistically significant differences (95% confidence)

Hispanics are significantly more optimistic than non-Hispanics about the U.S. economy in 2014.

13

41%

25%

18%

14%

2%

37%38%

14%

9%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

better thanlast year

about thesame as last

year

worse thanlast year


I think the economy this coming year will be…


2012-13 2013-14

37%38%

14%

9%

1%

27%

34%

28%

12%

0%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

better than2013

about thesame as

2013

worse than2013


I think the economy in 2014 will be…



Economic Issues of Concern to Hispanics

Q: If you were to rank the following economic issues in our economy as a whole where "1" is the issue you are currently most concerned about and "5" equals the one you are least concerned about, how would you rank the following? Base: Hispanic respondents.

Availability of jobs and rising prices are the economic issues of greatest concern to Hispanics.

14

35%

29%

17%

11%

9%

25%

28%

18%

13%

16%

15%

19%

24%

20%

21%

15%

12%

20%

23%

28%

9%

12%

21%

33%

24%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Availability of jobs

Rising prices

National budget deficit

Housing market

Financial markets

Rank of Economic Issues Among U.S. Hispanics, January 2014

1 - Issue most concerned about 2 3 4 5 - Issue least concerned about

Economic Issue of Greatest Concern

Q: If you were to rank the following economic issues in our economy as a whole where "1" is the issue you are currently most concerned about and "5" equals the one you are least concerned about, how would you rank the following? Base: All respondents. indicates statistically significant differences (95% confidence)

Availability of jobs and rising prices are also the economic issues of greatest concern to non-Hispanics. The housing market is of growing concern to some Hispanics.

15

34%

33%

17%

7%

9%

35%

29%

17%

11%

9%

0% 10% 20% 30% 40%


Rising prices


Housing market

Financial markets


2012-13 2013-14

35%

29%

17%

11%

9%

39%

38%

13%

3%

7%

0% 10% 20% 30% 40% 50%


Rising prices


Housing market

Financial markets



Appendix: 2014 Sample Profile 3

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Sample Profile

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MetricHispanics

n=500

Non-Hispanics

n=300 MetricHispanics

n=500

Non-Hispanics

n=300

Male 51% 49% Born in the U.S. 74% 92%

Female 49% 51% Moved here 26% 8%

Average years living in U.S. 30 39

Age:

18 to 24 20% 15% Household Income:

25 to 34 27% 20% Less than $10,000 7% 4%

35 to 44 24% 20% $10,000 to less than $20,000 10% 13%

45 to 54 18% 23% $20,000 to less than $30,000 14% 12%

55 to 64 11% 21% $30,000 to less than $40,000 11% 14%

Mean age 37 41 $40,000 to less than $50,000 7% 9%

Median age 35 41 $50,000 to less than $60,000 11% 16%

$60,000 to less than $70,000 7% 7%

Census Region: $70,000 to less than $80,000 5% 6%

Northeast 14% 19% $80,000 to less than $100,000 14% 4%

Midwest 9% 24% $100,000 or more 9% 8%

South 36% 37% Prefer not to state 3% 6%

West 40% 20% Average income ($000) $61 $55

Median income ($000) $48 $44

Sample Profile

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MetricHispanics

n=500

Non-Hispanics


n=500

Non-Hispanics

n=300

Marital Status: Educational Attainment:

Married 52% 45% Grade school 1% -

Single 28% 33% Some high school 6% 5%

Separated/divorced 9% 13% High school graduate 20% 27%

Living with partner 8% 6% Some College, but no degree 25% 27%

Widowed 2% 2% Trade or technical school 4% 5%

Prefer not to answer <1% 1% Graduated from 2-year College 9% 11%

Graduated from 4-5 year College 29% 18%

Average household size 3.2 3.0 Post Graduate Degree 5% 7%

Average years 14 14

No children <18 present 43% 56%

Any children <18 present 57% 44% Employment Status:

Employed (net) 64% 57%

Ages of children:^ n=304 n=129 Work full-time 48% 35%

Under age 6 42% 41% Work part-time 12% 14%

Ages 6 to 12 46% 45% Self-employed/business owner 5% 8%

Ages 13 to 17 37% 41% Full-time Homemaker 10% 10%

Retired 5% 6%

Own home 58% 56% Student, not employed 6% 6%

Rent home 40% 43% Currently unemployed 11% 14%

Do not know/ refused 2% 1% Unable to work/Disabled 3% 7%

^ Among respondents with children

Sample Profile

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MetricHispanics


n=500

Cultural Identification: Language Spoken at Home:

Much closer to Hispanic/Latino Culture 18% Spanish only 8%

Somewhat closer to Hispanic/Latino 20% Spanish mostly 24%

Equally close to both cultures 33% Spanish and English equally 28%

Somewhat closer to U.S. Culture 10% English mostly 17%

Much closer to U.S. Culture 18% English only 24%

Survey completed in Spanish: 17%

Overall Media Language Preference:

Spanish only 3% Hispanic Origin:

Spanish mostly 9% Mexican 33%

Spanish and English equally 37% Mexican American 32%

English mostly 21% Puerto Rican 17%

English only 30% Cuban 8%

South American 8%

Acculturation: Central American 5%

Low Acculturation 10% Dominican 4%

Medium Acculturation 59%

High Acculturation 31%

CONTACTINFO:

2100 W. Magnolia Blvd. Suite A-BBurbank, CA 91506Main Phone: 877-200-2710

Mario X. Carrasco, M.A. 818-843-0220 [email protected]

Roy Eduardo Kokoyachuk, MBA818-843-0220 [email protected]

ThinkNow Research - Hispanic Consumer Sentiment Study 2014

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