Servicing the Multicultural Homebuyer

Servicing the Multicultural Homebuyer

Oscar Gonzales Copyright 2013

Introductions


Oscar Gonzales Copyright 2013Oscar Gonzales Copyright 2013

THIS IS NOT AN EXERCISE IN DIVERSITY!


It’s About Business Development

Multicultural Marketing is about economics and profitability.

The customer segment we traditionally left to someone else that required more guidance might now be our economic lifeboat.

That economic lifeboat is the “Multicultural Consumer”


Session Goals and Objectives

• The course is designed to educate real estate professionals on the language and cultural nuances of the multicultural consumer.

• The course provides the real estate professional with the tools to assist the multicultural consumer understand the U.S. home buying process while keeping the real estate professional within the confines of fair housing laws.


Profile of Realtors & Homebuyers



• Median age of a Realtor is 56 years old

• 57% are female

• 75% of Realtors have real estate as their only occupation

• 9% of Realtors are foreign born

• Largest share of homebuyers are 25-34 years old; Median age overall is 45 years old

• 37% are first-time homebuyers

• 21 % are single females; 12% are single males

• 15% of first-time home buyers are foreign born; 7% are repeat


• 56% of Realtors have a smart phone with wireless internet and email access

• 91% of information on the website is the members own listings

• Almost 1/2 of members are using social media.

• Realtors spend a median of $250 to maintain their websites

• 88% of homebuyers used the internet to search for a home

• 89% used a real estate agent or broker

• 30% of buyers used print newspaper ads to find info on homes for sale

• 2% of buyers found the home they purchased using print ads


Population Trends


U.S. Population by Race

2016 326,157,434 203,590,818 39,443,305 15,531,613 59,225,877 8,365,821

% Change 4.47% 2.68% 3.67% 5.82% 13.59% -7.78%

Year U.S. White Black Asian Hispanic Other

2011 312,211,832 198,274,006 38,047,665 14,677,490 52,141,065 9,071,606

U.S. Census 2012


U.S. Foreign Born Population


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U.S. Population Projections 2008 - 2050

Percent of Total Population 2008-2050

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

2008 2010 2015 2020 2025 2030 2035 2040 2045 2050

White

Black

Asian

Hispanic


U.S. Median Income by Race

Year U.S. White Black Asian Hispanic

2011 50,289 52,488 36,780 60,415 39,646

U.S. Census 2012

2016 50,832 53,107 36,573 61,010 39,834

% Change 1.08% 1.18% -0.56% .98% 0.47


Multicultural Buying Power

Source: University of Georgia Selig Center


Immigrants and Boomers

In his book, Immigrants and Boomers, author and noted demographer Dowell Myers describeshow each of these two powerful demographic influencers may hold the keys to resolving the problems presented by the other.

Myers argues that during the demographic transition, the new prospect of diminished skills in the future workforce and a reduced middle class could undermine the continued growth in home prices.

Retirees will transition from being net taxpayers to net recipients of health and pension benefits, and they will be supported by a smaller workforce that is struggling to meet its own needs.

Seniors are also net home sellers and Myers believes there will be 67% more people in the selling age relative to the younger adults who are likely to be buyers.

Myers and other demographers believe that immigration can help to

supply some of the workers needed to support the rising number of seniors

and to replace them in the labor force as they retire and can help

compensate for the smaller number of younger adults who are likely to buy

homes from the increasing number of older Americans.

New arrivals alone can offset about one-quarter of the increase in the

senior ratio.


Texas Demographic Analysis


Texas Population2011 - 2016


Texas Foreign Born Population


Texas Housing Tenure – Owner Occupied


Texas Housing Tenure – Renter Occupied


Hispanic Acculturation Segments

Americanizado • Hispanics in this segment are typically English dominant (nearly no Spanish); born in US and often 3rd+

generation; has few Hispanic cultural practices.

Nueva Latina• Hispanics in this segment are typically English preferred (some Spanish); born in U.S. and typically 2nd

generation; some Hispanic cultural practices and often “retro-acculturate”.

Bi-Cultural Hispanics• Hispanics in this segment are typically bilingual (equal or nearly); immigrated as child or young adult; has

many Hispanic cultural practices

Hispano• Hispanics in this segment are typically Spanish preferred (some English); immigrated as adult and in U.S. 10+

years; pre-dominant Hispanic cultural practices.

Latinoamericana• Hispanics in this segment are typically Spanish dominant (nearly no English); recently immigrated as adult

(less than 10 years ago); primarily Hispanic cultural practices and identifies with home country more so than U.S. Hispanic.


Asian Acculturation Segments

Very Westernized Asians• Asian population categorized as AA1 (Very Westernized Asians)

Bi-Cultural Westernized Asians• Asian population categorized as AA2 (Bi-Cultural Westernized Asians)

Bi-Cultural Asians• Asian population categorized as AA3 (Bi-Cultural Asians)

Bi-Cultural Asian-Identity• Asian population categorized as AA4 (Bi-Cultural Asian-Identity Asians)

Very Asian-Identity• Asian population categorized as AA5 (Very Asian-Identity Asians)


Exercise: Stereotype Brainstorm

Discuss your reactions to what you have heard:• How did you feel about using stereotypes? • How did you feel about those used to describe members

of your group? • Do they apply to everyone in a group? Are they fair?

If there is little diversity in the area, discuss with other groups: religious, disabled, wealthy, older persons, as well as men, women and real estate professionals. Discuss how people distinguish themselves from others in their own groups. (i.e.,Real estate agents).

Write stereotypes or generalizations you have heard for each culture assigned to your group. The stereotype or generalization can be positive or

negative.


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Assumptions, Stereotypes and Biases

People make generalizations as a way of coping with the confusing details of experience. Generalizations are useful and necessary, as long as they remain guidelines and do not turn into rules.


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The Role of Culture

Culture is a set of learned behaviors, beliefs, attitudes, values, and ideals that are shared by a particular society or population.

Culture impacts how we think, feel, and more importantly, how we look at the world and is the most basic cause of a person’s wants and behavior.


Cultural Summaries

• Recent immigrants are influenced more by their traditions and customs than second or third generation immigrants who are accustomed to living and doing business in the U.S.

• If you are working with multicultural homebuyers, their cultural practices and customs are likely to influence home buying decisions and affect the overall transaction.

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Communication


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Exercise: ???? Spoken Here

What languages are spoken in your community? Have you noticed an increase or decrease in different languages spoken in your community? How many different languages are spoken in your office? How do you feel when others speak a different language around you?


“Low” Vs. “High”

High Context Low ContextPrevalent in: Asia Russia Middle East Latin America Southern Europe

Prevalent in: United States Canada Northern Europe

Nonverbal communication is important. Precise verbal agreements are important.

A contract is the basis of a relationship. A contract is binding and exists apart from a personal relationship.

Time is fluid, and schedules tend to be flexible. Time is treated as a commodity, and schedules are carefully observed.

Formality, face-saving communication, and relationships arevalued. A slower pace is needed to build relationships.

There is a preference for informality and direct communication. Results are valued. Accustomed to a fast pace of doing business.

Observe punctuality.


LanguageBilingualism - an interesting phenomenon

• Perfect fluent English-speakers suddenly shift into fluent Spanish or Chinese

• An individual’s connection to their language can tell a lot about individuals level of assimilation and acculturation.


• Be sensitive to how they reply to your first words. – If they answer in Chinese, Vietnamese, or Spanish or heavily accented

or broken English, ask them if they would prefer to speak in that language.

– If you are bilingual, move into their respective language.

– If you are not, assure them that you will guide them to the appropriate person and or department.

Tips on What Language to Use


• CHILL-LAX Often times, when we are dealing with non-English speakers, we become tense, irritable, and tend to raise our voices, as if by increasing the volume of what we are saying will help.

• In speaking with non-English speakers, be sparse, simple and straightforward.

• Do not use jargon, slang or colloquialisms.

Additional tips for working with non-English speakers


According to most communication specialists, 80% to 90% of a culture is reflected in nonverbal messages. These include: • Eye movement• Facial gestures• Hand, leg, and body gestures as well as body orientation and

posture • Use of distance and touching• Tone of voice• Cultural contexting.

Are there any universals of body language? There are, but they are generally very subtle.

Reading Non-Verbal Signs


Business Norms and Etiquette

Beyond using proper etiquette, which you use in the course ofbusiness, it is important to project positive attitudes toward multiculturalism, as well as adjust to the other person’s need for high or low context communication.

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Orientation to the Hispanic Culture


• Latino (a)?• Hispanic ?• Chicano (a)?• Mexican-American• Cuban-American• Puerto Rican• Dominican• etc….

We are often asked what is the best, most appropriate and respectful name to use describing this population:


The simple answer is that it depends on to whom you are talking.

Individuals choose to state their ethnic identification in many different ways:

- Sometimes geographically / by national origin and - Sometimes politically (Chicanos).

• Good rule of thumb – ask your client which terms they prefer.

Answer:


Personalism, Passion and Loyalty

1. “Personalismo” roughly translated means “personalism.” “Personalismo” communicates the profound emphasis that Latino culture places on the subjective experience and quality of the person-to-person interaction.

• Latinos are socialized to place great emphasis on this aspect of human interaction. When serving Latino clientele, it is very important to be cognizant of the quality of your interactions.

Valid Hispanic Generalizations


2. “Pasión” means passion. • Latino culture is known to facilitate the free expression of emotions in certain

contexts. One of these contexts is where the quality of inter-personal interactions indicates that the individual with whom you are dealing is “safe” and non-rejecting.

3. “Lealtad” means loyalty. • Once an individual has proven himself via his/her “personalismo” and the client

has invested the relationship with “pasión” (passion), loyalty follows.

4. “Sharing”• It is often difficult for Westerners, raised in an environment that is focused on the

individual, to understand this significance.

• A historian might relate it to the tribal life of the indigenous peoples of Latin America, many of whom lived in communal situations where the needs of the group took precedence over the needs of the individual.



5. The Role of Shame – “¿Qué Dirán?” (“What will they say?”)• One of the results of living in a culture that places a

great deal of emphasis on the group is the significance of shame.

• Fear of shame: Immigrants and those not fluent in English from cultures where shame plays an important role are particularly sensitive to humiliation and appearing foolish.



Family Unity

In Latin America, however, the definition of the family conveys more of a sense of inclusion.

The “extended family” is considered more important and proximate. Uncles, aunts, cousins, godparents (padrino, madrina), compadres and comadres (best friends) all are invested with a sense of belonging and obligation to the core group.



Family Unity

Parent-Child Relationship• Children are highly prized and considered a blessing from God.

• Children are an integral part of the family.There are some aspects of child-rearing that receive less emphasis in Hispanic vs. non-Hispanic families such as toilet training and weaning from nursing. • This aspect of the culture is important for your work in real

estate in that members of the extended family may serve as sources of information and referral.



Trust to the Latino

• All else being equal (i.e., if they have not had previous negative experience or heard of others’ negative experiences), they will approach an unknown type of business relationship with a trusting attitude.

• However, if that trust is violated, it is not easy to win it back.


Orientation to the Asian Culture


Asian Languages

• Chinese is now the second most prevalent foreign language spoken in U.S. households after Spanish.

• In California, five of the top 10 languages spoken are Asian and Chinese is now the third most common language spoken in New York City.


Valid Generalizations

Family-Oriented

• Great emphasis is placed on strong family relationships.

• It is common for parents to make a generous down payment or purchase a house for their children.

• It is also not uncommon to find women in charge of household finances.



A child in an Asian household normally learns or is exposed to the following values:

• Achievement and success• Activity and involvement• Efficiency and practicality• Progress• Material comfort• Humanitarianism• Youthfulness• Fitness and health



Every group or society in Asia has its indigenous culture, and cultural influences which may vary greatly from country to country, or even neighborhood to neighborhood.

For example: White is usually associated with death in many Asian cultures. However it is regarded as purity and cleanliness in Western countries.


• Similarity to other Asian cultures

• “Yes” doesn’t mean “Yes”

• “Maybe” means “No”

• You will never hear “No”

• Avoid embarrassing self and others

Communication


• While there are exceptions, most Asian Americans are conservative and reserved by nature.

• When an issue occurs, they will not disagree openly in an effort to save face and respect the other party.

• Although generally non-confrontational, Asians won’t hesitate to voice their opinion when necessary.

Non-Confrontational Nature


• Strong sense of faith

• Catholics

• Baptist

• Buddhist

Church or Philosophy


Orientation to the African-American Culture


Family

African-American families share manyfeatures with other ethnic families including:

– Approaches to marriage

– Family formation

– Gender roles

– Parenting styles


Historical and Cultural Influences

Characteristics of family include:– Tightly extended family units.

– Matrilineal organization of family.

– Family as clan organization can be seen as the predecessor to the extended family structure of modern African-American communities.

– Grandparents, especially grandmothers, play a crucial role in the maintenance of the African-American family.


Cultural Influences

• Spirituality

• Mutual support

• Ethnic identity

• Adaptive extended family structures

• Church as offering both ideological and instrumental support


Multicultural groups are known for:• Close space perception

• High context communication and avoiding the “Intimidator” Factor

• More oriented towards “being” in relationships than “becoming” one

• Flexible about time vs. rigidity

• Likely to place a premium on flexibility in relationships

• More comfortable with close personal contact than traditional Western culture

• Avoidant of direct eye contact in certain situations

• Freer with physical expression


Multicultural Marketing


Approaches to Multicultural Marketing and Outreach


Multicultural Marketing

Marketing to multicultural consumers requires a media neutral planning approach. Marketers can no longer assume that multicultural marketing is done only in ethnic language media or using only conventional media.

Marketing to the Hispanic Homebuyer


DO YOUR RESEARCH!!!

Volkswagen Ad Offends LatinosMarch 18, 2006

In 2006 Volkswagen put up its new billboards for the sporty car with the slogan "Turbo-Cojones".

In English, the word is used as a catch-all term for daring, but in Spanish, it is an impolite way of saying "testicles."

Volkswagen's intent was to pitch the sporty, fast car to young, bilingual Latinos, but it backfired.

http://www.diversityinc.com/members/20478print.cfm


• Females, extended family and trusted friends often play a role in the home buying decision.

• Males typically play the role of provider, and in negotiations

they will usually take control.

• The female, albeit often behind the scenes, plays the important role of home administrator.

• Since fulfilling their children’s needs is very important to Hispanics, understand that kids are also your clients.

• When it comes to their decision about purchasing a home, single parent families will often look to their extended family for help.

The Decision Making Process


Emerging Opportunities

• Marketers attempting to meet the needs of the Hispanic community should keep in mind the role language plays in establishing trust and motivating purchase intent.

LANGUAGE…Spanish is a way of life for Hispanics


Non- HispanicHispanic Hispanic Index

TV 25.90 17.81 143Radio 16.57 14.75 112Magazine 3.35 3.74 90Newspaper 4.29 5.04 85

Avg. # Hours Per Week Spentwith Each Medium

Television, the Most Widely Used Ad Medium, is Even more Important in the Hispanic Market

Source: Market Segment Research & Consulting, “The MSR&C Ethnic Market Report”


Radio

• Radio is an excellent, local medium for reaching Spanish speakers, depending on the objectives of your initiative. It can serve as a more intimate complement to wider campaigns as well as give attention to other local grassroots advertising.


Print

• Be aware of the limitations of print advertising in reaching the Hispanic market.

• Tailor content to the reading levels of your target audience.

• Be mindful of newspapers and magazines that are actually relevant to the cultural needs of the Hispanic homebuyer.


Print

• Distribution has been another major obstacle to readership. It is sometimes very difficult to find Hispanic or Spanish language magazines or newspapers in major outlets, with the exception of stores in areas of high Hispanic concentration.


Print

• In spite of all of these challenges, marketers should start to invest in print. The more interesting and appealing print outlets are, the more Hispanics will pay attention to them.

Remember that the Hispanic culture is more oral than literate and that your investment may take longer to

generate a return.


E-merging Opportunities - Hispanics

• The Internet makes it possible for Hispanic consumers to learn about news in their countries of origin via web sites.

• The Internet makes the need to assimilate much less pressing than ever before.

• Biculturalism is the most likely Hispanic trend. Hispanics can increasingly navigate between the two cultures and behave in way relevant to them.


State Farm

Marketing to the Asian Consumer


Asian Buying Power

While Asians number less than many other population segments, their

economic power and potential bottom line impact in many product categories and brands is disproportionately large.


Advertising in the Various Mediums - Asian

• Print– Dominant media vehicle. Primary

source of news and information.

– The major publications among Asian-Americans have a diverse editorial focus, reflecting the various geographic origins of the community.

• (i.e., Mainland China, Hong Kong, Vietnam, Pakistan, India, Korean, etc..)



• Print

– Most are published weekly or monthly, with only a few published daily.

– For some Asian groups the majority of the publications are “in-culture” but printed in English, reflecting the high English language competency within some Asian cultures.



• Television– Asian language television programming is growing rapidly and is

available through satellite, local cable, as well as UHF.

– Asian television features locally produced programming as well as the latest news/entertainment content from Asia.

– California is the most developed of the Asian broadcast markets.



• Radio– A number of programs and stations available in each major geographic

market. In most major markets radio programming is available in the multiple languages (i.e., Mandarin, Cantonese, Vietnamese, etc..)

– Availability of Asian radio has been growing rapidly within the last 5-10 years.

– National and local media is available in top Asian DMA’s (i.e., Los Angeles, New York, San Francisco, Houston, Seattle, Atlanta, etc..)


Advertising in the Various Mediums – Asian-American

Internet Usage

• Among Asian-Americans surveyed, nearly 90% of respondents were online and 70% visit ethnic websites/portals.

• More than half the respondents shop online, which has doubled from last year.

• Asian Indians and Chinese spend the most hours on the Internet and young Asian Americans between the ages of 25 and 34 are the heaviest Internet users.


Marketing to the African-American Consumer


Advertising in the Various Mediums – African American

• African-American consumers are continually seen as “monolithic” that can be addressed through mainstream.

• Little if any research has explored African-American perceptions of advertising.

• The most effective communications to the African American market are campaigns that highlight:– Family– Community strength– Culture

(Source: New America Media 2005; Black Enterprise 2009)



• African American consumers:– Are more receptive to advertising than White non-Hispanic consumers.

– African-Americans found advertising more meaningful when it featured African-American models.

– They are more satisfied with the “informational” value of advertising than White non-Hispanic consumers.

(Source: New America Media 2009 Black Enterprise 2009)



• Print– African-Americans read daily newspapers

and magazines (mostly weeklies) on average.

– Print media reaches only ¼ of the African-American population.




• Television– African-Americans watch about 5 more hours of

television per week than their White non-Hispanic counterparts.

– African-Americans are more susceptible to media’s effects because they often use television as a source of guidance.

– Unfortunately, much of the research focuses on effects of television on African-Americans, and little address advertising or attitudes toward advertising.




• Radio– A substantial majority of African American adults listen to ethnic radio

stations on a regular basis.

– African-Americans that are 40 years of age or older and those with annual incomes of over $40,000 listen to ethnic radio more often than the younger and less affluent.



In deciding to prospect in the Multicultural market, you need to look for your points of contact:• Immediate family• Friends• Neighbors• Church (Catholic, Protestant, Evangelical)• Doctors• Dentists• Chiropractors• Teachers• Attorneys (e.g., immigration)• Bankers• Retailers (furniture store, children’s baby clothes, auto dealers, car parts)• Services (mechanics, gardeners, house-keepers, contractors, painters, dry

cleaners)

Overall Best Points of Contact


Three Fundamental Strategies

Over time, organizations in the real estate industry that have been successful in tapping into this consumer base have utilized three fundamental strategies:

• Understand and evaluate the demographics of their local market • Develop appropriate products and modified service delivery

• Measure and evaluate outcomes



Understand that the language, cultural and differing business practices can take time to overcome…….and

Be Patient!

Don’t be afraid to ask for help.

REALLY!


Multicultural Facts

For those of you who watch what you eat, it's a relief to finally know the truth about all those conflicting nutritional studies.


Multicultural Facts

2. The Mexicans eat a lot of fat and suffer fewer heart attacks than Americans.

1. The Japanese eat very little fat and suffer fewer heart attacks than Americans.

3. The Chinese drink very little red wine and suffer fewer heart attacks than Americans.

4. The Italians drink a lot of red wine and suffer fewer heart attacks than Americans.

5. The Germans drink a lot of beer, eat lots of sausages and fats and suffer fewer heart attacks than Americans.


Multicultural Munching

CONCLUSION: Eat and drink what you like………SPEAKING ENGLISH IS

APPARENTLY WHAT KILLS YOU!!

Servicing the Multicultural Homebuyer

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