Consumer Segments

Consumer, or market segments split potential customers into different groups to better position products and target advertising. Profiles of groups of buyers outline needs, wants, behavior, common characteristics, and potential consumer product and service choices.

Segmentation can help in understanding consumer responses to media and consumer product choices, in developing marketing plans, and assessing competitive media’s strengths and weaknesses effectively. Marketers can easily and effectively formulate and implement marketing programs by targeting segments that are key to their products.

Consumer Segment Presentations (PPT)

Ethnic Targeting and Buying Power

Hispanic, African-American and Asian target markets have made substantial gains in buying power* over the last decade. As these groups increase in number and purchasing power, their growing shares of the U.S. consumer market are drawing attention from all types and classes of advertisers and marketers.

Buying Power (billions of dollars)

    1990 2000 2009 2014
  African-American 318.1   590.2   910.4   1,136.8  
  Hispanic 211.9   489.5   951.0   1,330.4  
  Asian-American 116.5   268.9   978.4   696.5  
  Total 4,270.5   7,187.6   10,717.8   13,097.1  


Percentage Change in Buying Power

    1990-2009 1990-2014 2000-2009 2009-2014
  African-American 186.2   257.3   54.3   24.9  
  Hispanic 361.8   528.0   99.9   36.0  
  Asian-American 336.6   497.9   89.3   36.9  
  Total 151.0   206.7   49.1   22.2  


In 2014, African-Americans will account for 8.7% of all U.S. buying power, up from 7.4% in 1990. Compared to the total U.S., African-Americans spend more on:

  • Telephone Services
  • Electricity
  • Groceries
  • Children's Clothing


In 2014, Hispanics will account for 10.2% of all U.S. buying power, up from 5.0% in 1990. Compared to the total U.S., Hispanics spend more on:

  • Groceries
  • Telephone Services
  • Housing
  • Clothing


In 2014, Asians will account for 5.3% of all U.S. buying power, up from 2.7% in 1990. Compared to the average U.S. household, Asians spend more on:

  • Food
  • Housing
  • Furniture
  • Vehicle Purchases
     

Top States for African-American Buying Power

The ten largest African-American markets account for 61% of the African-American buying power.

 

Rank

State

Totals in Billions of Dollars
  1 New York $86  
  2 Texas 72  
  3 California 62  
  4 Georgia 61  
  5 Florida 61  
  6 Maryland 52  
  7 Illinois 45  
  8 North Carolina 41  
  9 Virginia 38  
  10 New Jersey 35  


Top States for Hispanic Buying Power

The ten states with the largest Hispanic markets account for 80% of the Hispanic buying power.

 

Rank

State

Totals in Billions of Dollars
  1 California $253  
  2 Texas 175  
  3 Florida 101  
  4 New York 76  
  5 Illinois 43  
  6 New Jersey 37  
  7 Arizona 31  
  8 Colorado 21  
  9 New Mexico 18  
  10 Georgia 15  


Top States for Asian Buying Power

The ten states with the largest Asian markets account for 75% of the Asian buying power.

 

Rank

State

Totals in Billions of Dollars
  1 California $163  
  2 New York 51  
  3 Texas 34  
  4 New Jersey 32  
  5 Illinois 23  
  6 Hawaii 22  
  7 Washington 17  
  8 Florida 15  
  9 Virginia 15  
  10 Massachusetts 13  

*Total personal income available after taxes for spending on goods and services (same as disposable personal income).

Source: University of Georgia Selig Center for Economic Growth, The Multicultural Economy 2009, Third Quarter 2009. Economic research from the Terry School of Business at the University of Georgia is published in third quarter and their estimates in part are based on data from the U.S. Bureau of Economic Analysis.

 

 

 
 
 

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