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Black Consumers and Brand Loyalty - US - December 2015

"Black consumers are very brand conscious and typically use some of the same trusted brands that their parents used. While cost plays a role in the brands they buy, they aren’t willing to give up quality and brand name for the lowest price. As a result, they tend to be very brand loyal."
- Tonya Roberts, Multicultural Analyst

This report discusses the following key topics:

  • Emotional connection is often missing from brand messaging
  • Bad experiences are deeper than poor quality, higher prices – How Blacks are treated counts

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • There’s a slice of the brand loyalty pie for everyone, it depends on brand’s strategy
          • Figure 1: Brand loyalty segments, September 2015
        • The issues
          • Emotional connection is often missing from brand messaging
            • Figure 2: Word association with brand loyalty – Word cloud, September 2015
          • Bad experiences are deeper than poor quality, higher prices – how Blacks are treated counts
            • Figure 3: Top five things that trigger Blacks to switch brands, September 2015
          • The opportunities
            • Engage Blacks in brand ambassador opportunities, they like sharing successes
              • Figure 4: Brand loyalty drivers – Promoter, September 2015
              • Figure 5: Brand loyalty drivers – Purchase for others, September 2015
            • Deeply rooted, culturally connected, and making an impact – can brands keep up?
                • Figure 6: Black advertising receptivity segments, by brand loyalty segments, May 2014/September 2015
              • What it means
              • The Market – What You Need to Know

                • Population and buying power is growing faster than that of Whites
                  • Brands need evangelists to sing their praises
                    • Different strategies and messaging needed to attract diversity of segments
                    • The Size of the Prize

                      • Growing faster than Whites in population and buying power
                        • Black households outnumber other multicultural groups, most headed by women
                          • Figure 7: Number of households in US, by race/Hispanic origin of householder, January 2015
                      • Brand Loyalty Segments

                        • Different marketing messages required to reach each segment
                          • Figure 8: Brand loyalty segments, September 2015
                        • Ambassadors
                          • Figure 9: Psychographic overview of the Ambassadors segment, September 2015
                        • Devoted Penny Pinchers
                          • Figure 10: Psychographic overview of the Devoted Penny Pinchers segment, September 2015
                        • Savvy Brand Seekers
                          • Figure 11: Psychographic overview of the Savvy Brand Seekers segment, September 2015
                      • Market Perspective

                        • Black men are an untapped market, low-hanging fruit
                          • Word of mouth speaks volumes
                            • Momma knows best
                              • Still the forgotten generation: Generation X
                                • Figure 12: Reasons for brand loyalty, by generation, September 2015
                            • Key Players – What You Need to Know

                              • Blacks want to be engaged with brands, either events or promotions
                                • Brands can tap into loyalty segments for the right fit
                                • What’s Working?

                                  • Brand integrations and exclusive offers
                                    • Figure 13: Chase Sapphire cardholder promotion, 2015
                                    • Figure 14: Chase Freedom cardholder promotion, 2015
                                  • Gift card promotions
                                    • Figure 15: Target gift card promotions, 2015
                                  • Experiential VIP rewards
                                  • What’s Struggling?

                                    • Private labels struggle to get their labels not so private
                                      • The total market approach, Blacks still powerful piece of the pie
                                      • What’s Next?

                                        • More experiences…VIP events, sneak peeks, exclusive offers
                                          • Brands highlighting ethical practices
                                          • The Consumer – What You Need to Know

                                            • The vast majority of Blacks are brand loyal and brand conscious
                                              • Price is a key driver, but not at the sacrifice of quality and trust
                                                • Blacks expect brands to court them, make them feel appreciated
                                                • Share of Brand Loyalty

                                                    • Six out of 10 times, Blacks know what’s going in the cart before they even go to the store
                                                      • Figure 16: Share of brand loyalty (mean % of purchases based on brand influence), September 2015
                                                    • Brand loyalty stronger among older generations
                                                      • Figure 17: Share of brand loyalty (mean % of purchases based on brand influence), by generation, September 2015
                                                    • Hook, line, and sinker: Reeling in the Ambassador segment means catching the big fish
                                                      • Figure 18: Share of brand loyalty (mean % of purchases based on brand influence), by brand loyalty segments, September 2015
                                                  • The DNA of Brand Loyalty

                                                      • Rational factors still drive loyalty, but emotional factors weigh in
                                                        • Figure 19: Word association with brand loyalty – Word cloud, September 2015
                                                      • Blacks seek products that are good for family, those they grew up with
                                                        • Figure 20: Word association with brand loyalty, September 2015
                                                      • Men more driven by brands they grew up on and attractiveness
                                                          • Figure 21: Word association with brand loyalty, by gender, September 2015
                                                        • Young Blacks drawn to attractive, friendly, compassionate brands
                                                          • Figure 22: Word association with brand loyalty, by age, September 2015
                                                        • Nearly 8 in 10 Ambassadors choose brands for emotional reasons
                                                          • Figure 23: Word association with brand loyalty, by brand loyalty segments, September 2015
                                                      • Brand Loyalty Drivers

                                                          • Customer service makes or breaks the deal – trumps trust and reliability
                                                              • Figure 24: Brand loyalty reasons and related switching triggers, September 2015
                                                            • Majority willing to pay more for their favorite brands – unless they raise their prices without notice
                                                              • Figure 25: Impact of price on brand loyalty, September 2015
                                                            • Getting to know Blacks is half the battle to boost brand loyalty
                                                              • Figure 26: Impact of personal relevance on brand loyalty, September 2015
                                                            • Major differences among loyalty segments in what drives brand loyalty
                                                                • Figure 27: Brand loyalty drivers, by brand loyalty segment, September 2015
                                                            • Switching Triggers

                                                                • Poor quality and service likely to impact trust, key reasons to switch
                                                                  • Figure 28: Reasons for switching brands, September 2015
                                                                • Women more likely to pull the switch due to poor quality, unreliability
                                                                  • Figure 29: Impact of quality and reliability on switching brands, by gender, September 2015
                                                                • Price isn’t everything, but some switch for better value
                                                                  • Figure 30: Impact of price, convenience and ease of use on switching brands, by gender, September 2015
                                                                • Trust and credibility help to secure loyalty and appreciation
                                                                  • Figure 31: Impact of business practices on switching brands, by gender, September 2015
                                                                • Older Blacks are more sensitive to quality and reliability
                                                                  • Figure 32: Select reasons for switching brands, by age, September 2015
                                                                • Ambassadors least likely to switch due to higher prices
                                                                  • Figure 33: Reasons for switching brands, by brand loyalty segments, September 2015
                                                              • Brand Advocacy

                                                                  • Blacks are very brand name conscious, higher trust and quality perceptions
                                                                    • Figure 34: Attitudes toward brand names, September 2015
                                                                  • Devoted Penny Pinchers open to less-known brands as long as they have longevity
                                                                    • Figure 35: Attitudes toward brand names/older versus newer brands, by brand loyalty segments, September 2015
                                                                  • Devoted Penny Pinchers least likely to be brand advocates
                                                                    • Figure 36: Impact of word of mouth, September 2015
                                                                    • Figure 37: Importance of word of mouth, by brand loyalty segments, September 2015
                                                                  • Blacks spread the love, buy favorite brands for their circle to try
                                                                    • Figure 38: Brand advocacy – Purchase for others, September 2015
                                                                  • I buy – you try, Ambassadors segment takes brand advocacy up a notch
                                                                    • Figure 39: Brand advocacy – Purchase for others, by brand loyalty segments, September 2015
                                                                • Impact of Advertising and Promotions

                                                                    • Coupons highly effective among all loyalty segments
                                                                      • Figure 40: Impact of coupons on brand loyalty, September 2015
                                                                      • Figure 41: Impact of coupons on brand loyalty, by brand loyalty segments, September 2015
                                                                    • Sales don’t motivate Ambassadors to buy products
                                                                      • Figure 42: Impact of sales on buying habits, September 2015
                                                                      • Figure 43: Impact of sales on buying habits, by brand loyalty segments, September 2015
                                                                    • Targeted advertising…there’s more than meets the eye, it’s powerful!
                                                                      • Figure 44: Impact of community involvement on brand loyalty, by gender, September 2015 and May 2014
                                                                    • Blacks want to see people who look like them in ads, doing things they would do
                                                                      • Figure 45: Impact of targeted advertising on brand loyalty, by gender, September 2015 and May 2014
                                                                    • Cultural relevancy more important now more than ever before
                                                                      • Figure 46: Attitudes and receptivity to targeted advertising, by generation, May 2014
                                                                    • Beauty and personal care has higher ad recall and portray Blacks more positively
                                                                      • Figure 47: Ad recall and impact of targeted advertising, by industry, May 2014
                                                                  • Appendix – Data Sources and Abbreviations

                                                                    • Data sources
                                                                      • Consumer survey data
                                                                        • Consumer qualitative research
                                                                          • Direct marketing creative
                                                                            • Terms

                                                                            Companies Covered

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                                                                            Black Consumers and Brand Loyalty - US - December 2015

                                                                            US $3,995.00 (Excl.Tax)