Recent Study Explores Food Perceptions and Shopping Habits of Asian Americans
LONG BEACH, CALIFORNIA (December 1, 2006) - A recent study conducted by interTrend Communications, Inc., a full service marketing agency targeting Asian Americans, shows that there is a strong opportunity for American packaged food companies to enter the Asian American market by understanding their perceptions and needs. The study employed ethnographic in-home interviews, ethnic store visits and quantitative surveys to gain a comprehensive understanding of their insights and behaviors toward packaged goods and brand loyalty. The surveys were conducted both in English and in-language in Los Angeles and Orange County amongst Chinese, Vietnamese, Korean, Filipino and Japanese consumers between 25 to 65 years old. The findings provided insightful information pertaining to consumers' tastes and food consumption, brand loyalty and preferences and behavior patterns for product trial and promotion effectiveness. "The objective of our survey was to understand Asian American consumer tastes and preferences towards packaged foods," states Tanya Raukko, Director of Strategic Planning at interTrend Communications. "By doing so, we were able to conclude that there are extremely high prospectives for American brands to invest and capitalize on the Asian American market."
Consumer Tastes and Food Consumption
According to the study, American foods consist of forty percent (40%) of Asian Americans' diet. Asians also have a high preference for their native foods as they prefer fresh ingredients and the familiar tastes of foods from their countries of origin. Korean Americans consume the least amount of American foods, while Japanese and Filipinos consumed the highest amounts due to higher acculturation rates amongst these two groups. The findings also showed that a significant percent of households also spend more than half of their grocery expenditure on American foods.
Brand Loyalty and Preference
Asian Americans also associated brand loyalty with brand experience. The more positive the experience with trial of the product and brand, the more likely that they would continue purchasing that particular brand in the future. "Generally speaking, I believe American brands have better quality control. You can expect their quality to be consistent, but this is not always the case with Asian branded foods." stated one consumer who was interviewed from the survey. In addition, certain Asian segments have an already established brand loyalty of certain food brands such as Nestle, Haagen-Dazs, and Campbell's because they are familiar with the brand and have previously used the brands products in their native countries.
Product Trials and Adoption Patterns
The findings also revealed that children play an important factor in introducing American foods into the household. Children are more inclined to try American foods due to their heightened exposure to American media and interaction with peers at school. Another indicator to adoption is the length of residency in the U.S. The longer Asian Americans have resided in the U.S., the more prone they are to consume American foods.
Health Concerns and Promotion Effectiveness
The study also revealed that Asian Americans have some negative perceptions about American foods. They perceive packaged foods to be more fattening and sweeter than Asian packaged or fresh foods. However if the packaging showed superior quality, flavor or health benefits, the consumers would be inclined to pay more for these products.
This is evident by the fact that over one third (31%) of consumers stated availability in an Asian flavor is a critical or significant factor influencing their food purchase decision. When examining price or promotion effectiveness, Asian consumers responded that free sampling and discounts offered by familiar brands are the most effective drivers in decision making.
Conclusion
The study was conducted by interTrend's Knowledge Center to demonstrate that American food brands have a compelling opportunity to expand their customer base by understanding the needs and sensibilities of the Asian American consumer.
"This study is first of its kind as it explores the grocery shopping experience amongst Asian Americans," states Julia Huang, CEO of interTrend Communications. "Marketers now have a foundation to begin building opportunities within this market and can easily make use of the key takeaways to create effective messages."
About the Knowledge Center and the Consumer Packaged Foods Study
The results of the 2006 Consumer Packaged Food study were represented by a sample surveying 325 Asians including Chinese, Vietnamese, Korean, Filipino, and Japanese ranging between 25 to 65 years in age. Interviews and quantitative studies were conducted in English and in-language through ethnographic in-home interviews, ethnic store manager interviews, and street surveys in Los Angeles and Orange County.
In early 2004, interTrend launched a unique division, known as the "
Knowledge Center," which deploys and houses a complex synergy of qualitative and quantitative research data analysis, consumer insights, and diverse consulting expertise in various industries. The Knowledge Center is a pioneer in monitoring, assessing, and applying specific behavioral market trends of Asian Americans toward specific targeted marketing strategies.
