D. Anthony Plath

Financial services and the African-American market: what every financial planner should know

Abstract African-American consumers differ markedly from their Caucasian counterparts in terms of financial product preferences, product research, and investment asset portfolio composition. This study examines some of the principal differences between African-American and Caucasian households in evaluating and purchasing investment assets and explores differences in asset holdings between the two racial groups. This information can help financial planners seeking to market to the African-American community better understand this community, tailor investment information for the unique needs of this community, and render more effective service to individuals and families that comprise this attractive and growing market segment.

Marketing financial services to Hispanic American consumers: a portfolio‐centric analysis

Purpose – To provide financial service marketers with information useful in targeting and marketing financial services to Hispanic American consumers.Design/methodology/approach – It profiles the changing demographics of the Hispanic American financial services market and, utilizing data from the Survey of Consumer Finances, tests three hypotheses to compare financial service consumption patterns of Hispanics with those of non‐Hispanic whites.Findings – The paper shows that the Hispanic American segment has grown in size and importance over the last decade, but that Hispanics differ markedly from their non‐Hispanic White counterparts in terms of financial product preferences and investment asset portfolio composition. Further, Hispanic Americans trail their non‐Hispanic White counterparts in terms of breadth and depth of financial holdings, particularly in the area of more risky but historically higher return asset categories.Research limitations/implications – This study examines the results of financial...

Using expert systems in industrial marketing

Abstract U.S. corporations will spend

Marketing Financial Services to the African-American Consumer: A Comparative Analysis of Investment Portfolio Composition

4 billion annually on expert systems in 1990. However, several obstacles have been encountered which have limited their use in industrial marketing. The purpose of this article is to present a balanced view of expert systems which not only illustrates potential benefits of these systems but also considers their pitfalls. After a review of the benefits and problems associated with expert systems implementation and use, several early efforts to use expert systems in industrial marketing are discussed. Finally, guidelines for the future development and practical use of expert systems by industrial marketers are presented.

Effective credit costs in retail financial markets: Leasing versus borrowing

This study profiles the changing demographics and unique consumption patterns of the African-American consumer segment of the financial services market. When it comes to the selection and purchase of financial products and services, African-American consumers differ markedly from their white counterparts. This is especially apparent in the case of relatively high-risk, high-return financial assets, resulting in a diminished rate of wealth accumulation over time in black households. This article offers suggestions to marketers seeking to render more effective service to this attractive and growing segment of the financial services marketplace. For example, promotional materials should reflect the key role of African-American women in determining household consumption patterns. Moreover, successful marketing to African-American households requires a strong educational component.

Financial services consumption behavior across Hispanic American consumers

Abstract This study examines reported credit cost information in the automobile sales market to determine if vehicle leasing really is cheaper than installment borrowing. In addition, the study evaluates the accuracy of credit cost data furnished to consumers by commercial banks, vehicle leasing firms, and automobile dealers to gauge whether any systematic differences exist in the accuracy of reported credit cost information. Results of the study suggest that the cost of leasing is significantly different from borrowing, yet neither financing alternative is unilaterally cheaper than the other. In addition, suppliers of credit in consumer finance markets routinely and significantly understate effective credit costs reported to consumers.