Kasia Kosticin
Ethnospendology: A Look into Ethnic Spend Profiles Across the Toronto CMA © 2011
Ethnic marketing is a growing form of advertising that can be highly effective in geographic regions where the ethnic presence is high. Through the use of basic demographic variables, and the creation of an ethnically based segmentation system by way of cluster analysis, this study looks into the spatial distribution of the top ethnic groups in the Toronto CMA. Expenditure profiles were determined for these groups using a total of 14 spend categories aggregated to five main groups. Findings show that significant differences do exist for all determined ethnic clusters at a minimum of 8 of the 14 spend categories examined. As well, income is shown to be correlated both positively and negatively to a number of spend variables. This paper demonstrates that ethnicity does play an important role in determining consumption patterns. Companies looking to enhance targeted advertising to the specific groups should take the spatial aspect of ethnic consumption into account to ensure that the products and services being offered are aligned with ethnic demand.