Hispanic Omnibus: Wave 6 2013

Using Scales in Hispanic Survey Research

Presented by:

Research Methodology

2

ThinkNow Research conducts an Omnibus survey of Hispanic consumers several times per year. The quantitative survey is made available in both English and Spanish with respondents recruited from a research panel.

Survey Qualification Criteria:

Age 18+

Describe themselves as Hispanic or Latino.

For this research exercise, the Hispanic Omnibus was augmented with a Control of non-Hispanic U.S adult residents.

To insure a consistent and representative sample of U.S. Hispanic adults in each wave of the Omnibus, quotas are set with respect to:

Gender

Age

Region

Language normally spoken at home.

The Omnibus survey completed in July 2013 is a sample of 775 Hispanic consumers, including 300 who speak Spanish primarily, 300 who are bilingual and 175 who speak English primarily.

Survey margin of error: +/- 3.5% at the 95% confidence interval.

Research Design

3

To better understand how questionnaire design influences ratings of importance, consumers were asked a short series of questions about what is important to them when shopping in a retail store.

Research Design

4

First, the sample was divided randomly into two groups.

Group A was asked to rate five factors on a traditional five point Likert scale ranging from “not at all important” to “very important.”

Group B was asked to rate the same factors using a two-step approach. First, respondents rated each item as either “important,” “unimportant” or “neither important nor unimportant.” Second, respondents were asked to differentiate “important” into “very important” or “somewhat important” and “unimportant” into “somewhat unimportant” and “not at all important.”

Group A and Group B responses are then compared.

Lastly, respondents were asked to rank the same five factors using a short series of simple questions asking them to pick the “most important” or “least important” factor from a list, yielding a rank assignment for each factor.

Executive Summary

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Key Research Findings

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The two-step branched Likert scale yields results closer to what is achieved through a ranking exercise.

Using the traditional Likert scale, one would conclude that low prices are the least important factor among the five rated among Hispanic consumers. However, the two-step rating sequence and the forced rank sequence of questions would lead to the conclusion that quality merchandise is the most important factor followed closely by low prices.

For non-Hispanic consumers the two-step rating sequence also yields results more consistent with a ranking question, although the risk of reaching a substantially different conclusion is not as severe as appears to be the case among Hispanic consumers.

Survey Results: Rated Importance by Question Design

7

8

Ranked Importance: Non-Hispanic

Quality Items and Low Prices ranked as the Top 2 most important factors for Non-Hispanic retail shoppers.

29%

37%

13%

10%

9%

64%

60%

31%

23%

22%

Quality items

Low prices

Wide selection

Customer Service

Store cleanliness

Non-Hispanic Ranked Preference

Most Important 2nd 3rd 4th Least important Top 2 Box

Scale Comparisons: Non-Hispanics

9 Q: When shopping at a physical store, how important to you are each of the following factors? / Q: Please tell us which of the following factors you consider to be most important to you personally. Base: n=404 non-Hispanics

79%

71%

66%

68%

58%

89%

89%

86%

85%

80%

Quality items

Low prices

Wide selection

Customer Service

Store cleanliness

Branched Likert Scale

29%

37%

13%

10%

9%

64%

60%

31%

23%

22%

Quality items

Low prices

Wide selection

Customer Service

Store cleanliness

Ranked Preference

Most Important 2nd Top 2 Box

63%

53%

60%

56%

53%

88%

87%

85%

85%

83%

Quality items

Wide selection

Low prices

Customer Service

Store cleanliness

Likert Scale

Very (5) Somewhat (4) Top 2 Box

Straight Likert scales can produce distorted relationships among attributes

#2

#5

#2

#5

#3

#5

Branching Likert Scales yields results that maintain the same relationships among measured attributes as rankers

28%

27%

18%

16%

11%

55%

48%

37%

36%

25%

Quality items

Low prices

Wide selection

Store cleanliness

Customer Service

Hispanic Ranked Preference

Most Important 2nd most important 3rd most important 4th most important Least important Top 2 Box

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Ranked Importance: Hispanic

Q: Please tell us which of the following factors you consider to be most important to you personally. Q: Of the remaining factors, which is least important / more important than the others / less important? Base: All Hispanic respondents (n=775).

Hispanics also ranked Quality, Price and Selection as their Top 3 retail factors.

Store Cleanliness rises from the 5th position to nearly tying for 3rd.

Scale Comparisons: Hispanics

11 Q: When shopping at a physical store, how important to you are each of the following factors? / Q: Please tell us which of the following factors you consider to be most important to you personally. Base: n=775 Hispanics

75%

68%

63%

65%

62%

85%

82%

81%

78%

75%

Quality items

Low prices

Wide selection

Store cleanliness

Customer Service

Branched Likert Scale

64%

51%

62%

57%

48%

84%

83%

82%

82%

75%

Quality items

Wide selection

Store cleanliness

Customer Service

Low prices

Likert Scale

Very (5) Somewhat (4) Top 2 Box

#2

#5

28%

27%

18%

16%

11%

55%

48%

37%

36%

25%

Quality items

Low prices

Wide selection

Store cleanliness

Customer Service

Ranked Preference

Most Important 2nd Top 2 Box

#2

#4

#4

#4

Straight Likert scales can produce distorted relationships among attributes

Hispanics rate attributes differently, however, branching Likert Scales yields results that maintain the same relationships among measured attributes as rankers

Appendix: Sample Profile

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Sample Profile

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Metric Hispanics

n=775

Non-Hispanic

n=404 Metric Hispanics

n=775

Non-Hispanic

n=404

Male 50% 48% Region:

Female 50% 52% New England 2% 4%

Middle Atlantic 11% 13%

Age: East North Central 8% 15%

18 to 24 37% 30% West North Central 2% 7%

25 to 34 35% 24% South Atlantic 16% 20%

35 to 44 15% 16% East South Central 2% 6%

45 to 54 7% 14% West South Central 19% 11%

55 to 64 5% 11% Mountain 10% 7%

65 or older 2% 4% Pacific 30% 17%

Mean age 31 36

Median age 29 33 Hispanic Origin:

Mexican American 36% N/A

Language Spoken at Home: Mexican 32% N/A

Spanish only 8% - Puerto Rican 15% N/A

Spanish mostly 30% - Cuban 9% N/A

Spanish and English equally 39% - South American 8% N/A

English mostly 12% - Central American 7% N/A

English only 10% 100% Dominican 5% N/A

Survey completed in Spanish:

19% N/A

Sample Profile

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Metric Hispanics

n=775

Non-Hispanic

n=404 Metric Hispanics

n=775

Non-Hispanic

n=404

Marital Status: Educational Attainment:

Married 44% 35% None 1% 0%

Single 40% 43% Grade school 2% 0%

Living with partner 7% 9% Some high school 5% 8%

Separated/divorced 6% 11% High school graduate 22% 25%

Widowed 2% 1% Some College, but no degree 22% 26%

Prefer not to answer 2% 1% Trade or technical school 4% 6%

Graduated 2-year College 12% 11%

Average household size 3.5 2.9 Graduated 4-5 year College 25% 18%

Post Graduate Degree 8% 7%

No children <18 present 40% 63%

Any children < 18 present 60% 37% Employment Status:

Employed (net) 69% 56%

Born in the U.S. 72% 95% Work full-time 47% 37%

Moved here 28% 5% Work part-time 17% 12%

Average years in the U.S. 24 35 Self-employed/owner 5% 7%

Full-time Homemaker 6% 8%

Retired 3% 8%

Student, not employed 11% 9%

Currently unemployed 8% 10%

Unable to work/Disabled 2% 8%

Sample Profile

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Metric Hispanics

n=775

Non-Hispanic

n=404 Metric Hispanics

n=775

Non-Hispanic

n=404

Cultural Identification: Household Income:

Much closer to Hispanic/Latino 29% 1% Less than $10,000 7% 7%

Somewhat closer to Hispanic/Latino 20% 0% $10,000 to less than $20,000 10% 7%

Equally close to both cultures 34% 6% $20,000 to less than $30,000 13% 15%

Somewhat closer to U.S. Culture 8% 10% $30,000 to less than $40,000 12% 11%

Much closer to U.S. Culture 9% 82% $40,000 to less than $50,000 11% 10%

$50,000 to less than $60,000 10% 14%

Overall Media Language Preference: $60,000 to less than $70,000 5% 8%

Spanish only 5% 0% $70,000 to less than $80,000 6% 5%

Spanish mostly 17% 0% $80,000 to less than $100,000 8% 6%

Spanish and English equally 41% 2% $100,000 or more 13% 8%

English mostly 21% 8% Prefer not to state 6% 8%

English only 17% 89% Mean $64k $57k

Median $44k $46K

Acculturation:

Low Acculturation 15% N/A

Medium Acculturation 70% N/A

High Acculturation 15% N/A

CONTACT INFO:

2100 W. Magnolia Blvd. Suite A-B Burbank, CA 91506 Main Phone: 877-200-2710 Mario X. Carrasco, M.A. 818-843-0220 x101 mario@thinknowresearch.com Roy Eduardo Kokoyachuk, MBA 818-843-0220 x102 roy@thinknowresearch.com

Scale Comparisons

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64%

51%

62%

57%

48%

84%

83%

82%

82%

75%

Quality items

Wide selection

Store cleanliness

Customer Service

Low prices

Likert Scale

Very (5) 4 3 2 Not at all (1) Important/Top 2 Box

Q: When shopping at a physical store, how important to you are each of the following factors? / Q: Please tell us which of the following factors you consider to be most important to you personally. Base: All respondents (n=775 Hispanics, n=404 non-Hispanics).

75%

68%

63%

65%

62%

85%

82%

81%

78%

75%

Quality items

Low prices

Wide selection

Store cleanliness

Customer Service

Branch Sequence

28%

27%

18%

16%

11%

55%

48%

37%

36%

25%

Quality items

Low prices

Wide selection

Store cleanliness

Customer Service

Ranked Preference

Most Important 2nd 3rd 4th Least important Top 2 Box

Hispanics Non-Hispanics

63%

53%

60%

56%

53%

88%

87%

85%

85%

83%

Quality items

Wide selection

Low prices

Customer Service

Store cleanliness

Likert Scale

Very (5) 4 3 2 Not at all (1) Important/Top 2 Box

79%

71%

66%

68%

58%

89%

89%

86%

85%

80%

Quality items

Low prices

Wide selection

Customer Service

Store cleanliness

Branch Sequence

29%

37%

13%

10%

9%

64%

60%

31%

23%

22%

Quality items

Low prices

Wide selection

Customer Service

Store cleanliness

Ranked Preference

Most Important 2nd 3rd 4th Least important Top 2 Box