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Marketing Financial Services to the AfricanAmerican Consumer:
A COMPARATIVE ANALYSIS OF INVESTMENT PORTFOLIO COMPOSITION
Thomas H. Stevenson D. Anthony Plath
T
he importance of segmentation in the development of an effective marketing strategy is well established in the business literature. There are many bases used for market segmentation, but demographic factors such as age, occupation, income level, educational attainment, and race are frequently used to identify key markets. Race has become increasingly important as a segmentation variable because it has been shown that race can influence consumption patterns and because racial minorities have come to represent a larger and larger proportion of the U.S. population. The sheer numbers of the largest minority group, African-Americans, and the improving economic status of many of its members, make this racial minority especially attractive. Nevertheless, relatively few studies in the marketing and finance literature have profiled differences in financial asset portfolio holdings of black versus white households or examined how these differences affect the manner in which financial service providers tailor their marketing efforts to meet the needs of different racial groups. The purpose of this study is to profile racial differences in investment asset ownership patterns between black and white households, evaluating the extent to which this profile is consistent with information reported in other academic work that examines racial differences in wealth accumulation patterns and risk tolerance levels. (The terms "African-American" and "black" are used synonymously in this article because there is no clear preference for either term among members of this racial group).'
CALIFORNIA MANAGEMENT REVIEW
VOL 44, NO. 4
SUMMER 2002
39
Marketing Financial Services t o the African-American Consumer
Wealth Accumulation and the African-American Consumer
African-Americans are the largest racial...