Companies that engage multicultural communities can reap huge rewards when it comes to consumer purchasing and brand loyalty, according to data from Yankelovich Monitor Multicultural Study 2010.
The study finds that Latino and Black consumers rate the importance of a company's presence in the community through corporate social responsibility and cause-related marketing programs as more significant in their buying decisions than do non-Latino whites.
About one-third of Latino and Black consumers almost always choose brands because they come from companies that support causes they believe in, compared with just 1 in 5 non-Latino whites, the study finds.
Latino and Black consumers also expect companies to champion their causes and stand up for issues that affect their communities to a greater degree.
According to the study, 79 percent of Latino respondents and 84 percent of Black respondents agreed with the statement "companies that make sincere efforts to be part of the Hispanic/African-American community deserve my loyalty."
Additionally, 62 percent of Latino respondents and 68 percent of Black respondents agreed that very few brands and companies genuinely care about the state of their communities.
"The results present excellent opportunities to those businesses looking to increase their brand reputation and sales," says Esther Novak, founder and CEO of VanguardComm, a public-relations firm with a specialty in corporate social responsibility and cause-related marketing. VanguardComm announced the study. "If you want to establish long-lasting relationships with Latino and Black consumers and businesses, you need to show that you understand and support their causes and community needs."