Tapping the Ethnic Housing Market
The Biggest opportunities and challenges that lenders and real estate faced through the three ethnicities surveyed, African American, English Hispanic and Spanish Hispanic, is the feeling of ownership among these segments that is between the 79 and 82% (Table A) of the population surveyed (Hawkins & Mothersbaugh, 2010), the lack of knowledge when buying a home, and lack of confidence in the process. Those three facts open opportunities to lenders and real estates to position their products, to better serve each segments needs and desires, trough the appropriate education to the each segment, a superior understanding of it life-style, and subculture structure. Overall Marketing Strategy
In order to formulate an operational Marketing strategy to the three ethnicities surveyed, African American, English Hispanic and Spanish Hispanic, each group would require a marketing team that understand, faced and identify the exclusive needs, knowledge and confidence over the home buying process that each group segment have. (Hawkins & Mothersbaugh, 2010) African American
The marketing strategy for African Americans would be to target their life-style since 82% of the population surveyed will buy a home based on the feeling of ownership and because 67% (Hawkins & Mothersbaugh, 2010) of the population have always dream with buying a home and thinks that renting is not good. Also, according with Table B on the book only 34% of the African American population surveyed understand that the buyer does not pay the professional fees of the real estate and only 36%, knows that housing lender is not require by law to give the best possible rate on loans. As it is shown in Table C the lower 23% (Hawkins & Mothersbaugh, 2010) of population understand the process and 25% of them believe the process is to complex. (Hawkins & Mothersbaugh, 2010) English Hispanic
Cited: Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer Behavior. MacGraw-Hill Irwin.
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