MINORITY BUYING POWER IN THE NEW CENTURY

(definitions and excerpts from The Multicultural Economy by Jeffrey M. Humphreys. Selig Center for Economic Growth, Terry College of Business. The University of Georgia , 2004)

DEFINITION OF BUYING POWER

“Simply defined, buying power is the total personal income of residents that is available, after taxes, for spending on goods and services—that is, the disposable personal income of the residents of a specified geographic area.”

BUYING POWER & MULTICULTURAL MARKETING

The Selig Center 's estimates and projections of buying power for 1990-2009 show that minorities—African Americans, Asians, Native Americans, and Hispanics—definitely share in this success, and together wield formidable economic clout.

As these groups increase in number and purchasing power, their growing shares of the U.S. consumer market draw avid attention from producers, retailers, and service providers alike.

“…differences in (buying power) and spending by race and/or ethnicity suggest that one general advertisement, product, or service geared for all consumers increasingly misses many potentially profitable market opportunities. As the U.S. consumer market becomes more diverse, advertising, products, and media must be tailored to each market segment.”

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