A LATENT VARIABLE MODELING APPROACH TO UNDERSTANDING ATTITUDINAL AND BEHAVIORAL

ETHNIC IDENTITY IN HISPANIC CONSUMER BEHAVIOR: A STRUCTURED ABSTRACT

Ricardo Villarreal, University of San Francisco, USA

Shelley Blozis, University of California-Davis, USA

INTRODUCTION

Ethnic identity has been shown to play an important role in Hispanic consumer behavior research. The measurement and
statistical treatment of ethnic identity measures, however, have been mixed across studies. First, the operationalization of
ethnic identity has varied with some studies defining the construct by behaviors (e.g., language use) and others using
theoretically-based measures. Second, different research questions and statistical treatments of ethnic identity as a predictor
have been applied. Ethnic identity measures have, for instance, been used to create groups of self-identified Hispanics and
non-Hispanics so that comparisons in consumer behaviors could be done. Studies later relied on within-group comparisons of
behaviors between Hispanics reporting relatively high ethnic identity levels to those reporting relatively low levels. In these
examples, ethnic identity was essentially treated as a categorical variable. The present study uses structural equation
modeling to define ethnic identity by two latent, continuous dimensions and statistically treating them as such. Comparisons
to past approaches to the measurement and statistical analysis of ethnic identity suggest a latent variable modeling approach
may aid in understanding the relationship between ethnic identity and Hispanic consumer behavior. The goals of this study
are 1) to evaluate a single measure of ethnic identity as a predictor of HCB and 2) to compare results from the former to
predictions of HCB using distinct but related aspects of ethnic identity, namely attitudinal and behavioral.

Early studies on ethnic identity and Hispanic consumer behavior research (HCB) examined differences between U.S.
Hispanics and non-Hispanics (e.g., Delener and Nelankavil 1990; Deshpande et al. 1986; Deshpande and Stayman, 1994).
Differences were reported with regard to brand loyalty, attitude toward ad spokesperson, trustworthiness of business, and
media use. Other studies considered within-group differences in U.S. Hispanics with regard to ethnic identity and its
relationship with consumer behavior (Chattaraman, Lennon, and Rudd 2010; Rexha and Kingshott 2001; Torres and Briggs
2007; Villarreal, Blozis, and Jeong 2008; Villarreal, and Peterson 2008, 2009). These studies suggest differences between
relatively high and low Hispanic identifiers on behaviors including brand loyalty, attitude toward an ad and actor and coupon
use.

Using ethnic identity to study within-group differences in U.S. Hispanics has furthered understanding of how ethnic identity
may impact consumer behavior, thus helping marketers to integrate ethnic identity in the marketing and advertising context
for Hispanics. A review of this research, however, suggests a lack of consistency in how ethnic identity is defined. Ethnic
identity has been defined as self-identity (e.g., Kelly, Cornelio, Stanley, and Gonzalez 2010), engagement in cultural
behaviors (e.g., Lee, Fairhurst and Dillard 2002), language preference (e.g., Becerra and Korgaonkar 2010; Cleveland and
Chang 2009), and combinations of these (Kim and Arthur 2005). Other studies have used theoretically based measures of
ethnic identity (e.g., Appiah 2001, 2004; Chattaraman et al. 2010; Elias, Appiah, and Gong 2011; Torres and Briggs 2007;
Villarreal, and Peterson 2008, 2009; Xu, Shim, Lotz, and Almeida 2004). Thus, the role of ethnic identity in HCB research is
not clearly understood.

A second concern relates to the specific aspects of ethnic identity. That is, ethnic identity is often measured and analyzed as a
single dimension in HCB research, although psychology posits that ethnic identity is multi-dimensional (Phinney 1992).
Based on this multi-dimensional conceptualization, Phinney's (1992) Multigroup Ethnic Identity Measure (MEIM) contains
items reflecting attitudes (AEI) and behaviors (BEl) relating to ethnic identity. Indeed, a factor analysis (FA) of responses to
the MEIM has supported two underlying dimensions of ethnic identity in Hispanics (Dandy, Durkin, McEvoy, Barber, and
Houghton 2008; Pegg and Plybon 2005; Villarreal, 2004; Villarreal and Peterson, 2008, 2009; Villarreal et al. 2008). Use of
this common measure of ethnic identity to create a single score is inconsistent with theory but has nonetheless been applied in
HCB studies (e.g., Chattaraman and Lennon 2008; Torres and Briggs 2007).

Consumer behavior differences among Hispanics have been studied based on respondents' relative levels of ethnic identity.
Deshpande et al. (1986) and Donthu and Cherian (1992, 1994) found that Hispanics who reported relatively high ethnic
identity levels tended to be more brand loyal than Hispanics who reported relatively low ethnic identity levels. Deshpande et
al. (1986) found differences between Hispanics reporting high versus low ethnic identity levels with regard to attitudes
towards business and government institutions, use of Spanish-language media, brand loyalty, and preferences for prestige and

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ethnically advertised brands. Donthu and Cherian (1992) found that Hispanics reporting relatively high ethnic identity levels
used fewer coupons, were more brand loyal, and used Spanish language newspapers and magazines more often than
Hispanics with relatively low ethnic identity levels. Donthu and Cherian (1994) found that strongly identified Hispanics
preferred Hispanic vendors and low-involvement products compared to Hispanics with relatively low ethnic identity levels.
The study suggests that strongly identified Hispanics were driven less by economic value, more affected by ads, and more
brand loyal. Chattaraman et al. (2009) reported high ethnic identifiers preferred products with culturally relevant cures than
low ethnic identifiers. They also found differences between identity-based groups in relation to the effect of cultural primes
on brand choice, with differences between high and moderate ethnic identifiers differing from low ethnic identifies. In a
study of adolescent HCB, Villarreal et al. (2008) found that higher levels of AEI were related to more time spent using
Spanish-language print media. Those with relatively low levels of AEI tended to have a greater preference for being
advertised to in English and watching less English language TV, suggesting a difference in the effect of identity on print
versus TV media. Those reporting relatively low levels ofAEI tended to spend more hours in a seven-day period watching
English language TV.

Research Questions. The present study considers four research questions: R1) What is the direction and strength of the
relationships between a single dimension measure of ethnic identity and brand-related behaviors? R2) Are responses to the
MEIM best described by two dimensions, namely AEI and BEl? R3) What is the direction and strength of the relationships
between AEI and BEl and brand-related behaviors? R4) What best predicts HCB, a single dimension or the two defined by
AEI and BEl? Hypotheses. Based on previous research, we developed three hypotheses: individuals with relatively high
levels of ethnic identity will tend to H1) have high levels of brand-related behaviors (BRB) (Deshpande, Hoyer and Donthu
1986), H2) have a preference for being advertised to in Spanish (Delener & Neelankavil, 1990; Koslow, Shamdasani, &
Touchstone 1994), and H3) not have purchases influenced by children or a spouse or significant other (Ogden, 2005;
O'Guinn, Faber, & Imperia 1986; Webster 1994). Although there is no previous research on BEl and consumer behavior, we
hypothesize similar effects of BEl as those of AEI. Specifically, respondents with higher levels of BEl will have
correspondingly higher scores on measures of brand-related behaviors, preference for Spanish language advertising, and will
not have their purchase decisions influenced by children or a spouse or significant other.

METHODOLOGY
A sample of 762 Hispanic adults was recruited from the 9 U.S. Census regions, chosen. by random digit dialing and a
Hispanic surname list. Participants were recruited via telephone by professional bilingual interviewers. Individuals were
selected if they self-identified as Hispanic or had at least one parent of Hispanic or Spanish-language descent. No incentives
were given for participation. Interviews were conducted in Spanish or English based on a respondent's language choice and
took about 40 minutes to complete. The sample represented 89% of those contacted and qualified to participate.

Participants were between 18 and 85 years old (M = 37.6). Approximately 65% of the participants preferred to conduct the
survey in Spanish. About 48% of the respondents were female; most were married/living with a partner (54.2%), 31.9%
were single and never married, 11.0% were widowed, divorced, or separated, and 2.9% refused to state. Less than half
(46.5%) did not complete high school, 18.5% reported a high school diploma/GED, 15.1% completed some college or
attended trade school, 11.2% reported a college degree, 2.8% reported some post-graduate work, and 6% refused to report.
More than half (54.5%) reported a total household income of less than $50,000. Overall, the sample was representative the
U.S. Hispanic population in terms of country of origin and distribution across the 9 Census regions.

Measures

Ethnic Identity. Ethnic identity was measured using Phinney's (1992) MEIM. Of the 12 scale items described in Roberts et
al. (1999), we hypothesize 7 items to represent AEI and 5 items to represent BEl. Responses were measured by a 5-point
ordinal response scale scored from 1 (strongly disagree) to 5 (strongly agree) with higher scores indicating greater levels of
ethnic identity.

Outcome Measures. Participants responded to 11 brand-related behavior (BRB) items. The items included behaviors such as
buying the same brands as those purchased during childhood and being the first among friends to try new brands.
Additionally, respondents were asked two questions concerning preferences for advertisements in English and Spanish and
two questions relating to family influence on purchase decisions.

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