According to a recent survey, it is seen that multicultural consumers are still positive about their future in spite of the increase in debt amount over the globe. An estimated figure of 27% of African-Americans and 26% of the Hispanics has witnessed a huge increase in the debt over the past few years. In spite of knowing that they have to pay off debt, the multicultural consumers are feeling optimistic about their future.
This optimistic feeling depends on human financial behavior and to better understand such financial behavior among the multicultural consumers in the US, a research was conducted over telephone. The survey included nearly 4000 men and women of age 18 and above which also included above 1000 general market respondents, 900 African Americans and 2000 Hispanics.
As the increase in the debt amount, ethnic consumers are lagging behind the general market population when it comes to owning financial investment accounts, insurance, mortgage and credit cards. The general population is far ahead of the multicultural consumers in owning financial products. For instance, 8 out of 10 African-Americans and 63% of the Hispanics currently own a checking account while 93% of the general population already owns such accounts in various banks. 74% of the general population has opened retirement accounts with their employers, most commonly IRA or 401 k accounts. Here too, the multicultural consumers are lagging behind as 52% of African-Americans and 34% of the Hispanics are aware of such employer sponsored retirement accounts.
Moreover, one third of African Americans and Hispanics claim that they are living from paycheck to paycheck which amounts to 22%. An eminent spokesperson of a research group has said that the challenging economy may have been difficult for everyone but it is particularly hitting hard on the multi cultural consumers.
In spite of the increased debt and lack of initiative to pay off debt, lower financial product usage and low unemployment levels among the multicultural consumers, many of them are looking towards the future with a sense of optimism. When asked whether or not their economic situation will improve in the near future, more than half of African-Americans and 42% of the Hispanics earnestly felt that their situation would improve undoubtedly.
Reasons for this optimism about the future:
The first reason for this kind of positive attitude towards their future could be the election of Barack Obama as the American President and the Democratic Party continuing to make an effort to gain the favor of the Hispanics by addressing issues such as immigration reform. The history and the culture of America may also be a deciding factor behind such behavior of multicultural consumers. Both the African Americans and the Hispanics had to overcome adversity in several different manners.
The purchasing power of the multicultural consumers if combined will be almost two trillion dollars in the year 2010. The marketers view this as a great opportunity to tap this optimism and channel it into successful marketing for products targeted to multicultural consumers.
The marketers have intensely recognized the growing importance of this diverse market and using the culturally appropriate communications to address the current sentiments can go a long way to bridge the gap of financial product usage among the multicultural consumers.
