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Abstract

Major retailers and other marketers have long decided that ethnic-specific advertisements, which target the major ethnic groups in the US, are best to use in diverse markets as opposed to standardized ads, which are not tailored to any specific ethnic groups in the population. While standardized ads are more cost efficient, it is assumed that major ethnic groups in the populace are influenced more by ads that target them directly. However, these conclusions may be shifting due to the increasing levels of cosmopolitanism in young adult market segments. Cosmopolitanism, which sanctions a philosophical detachment from an individual's native culture and fosters identification with other cultures and customs, may be a potentially game-changing consideration for advertisers. This study looks at cosmopolitanism and its effect on attitudes toward ads, brands, and brand purchase intentions in multi-ethnic markets. Specifically, this study compares, across three different young adult US ethnic groups, the effects of multi-ethnic ads and ethnic-specific ads under various conditions of diversity. Data is tested via a structural equation model and results indicate that the answer to the conundrum of how to successfully advertise to shifting multi-ethnic markets (especially to the young adult demographic) may be to fully understand the target market's desire for diversity in the ad based on the direct, and indirect, influence of cosmopolitanism. Additional findings, limitations, and implications for research and practice are discussed.

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Abstract

Major retailers and other marketers have long decided that ethnic-specific advertisements, which target the major ethnic groups in the US, are best to use in diverse markets as opposed to standardized ads, which are not tailored to any specific ethnic groups in the population. While standardized ads are more cost efficient, it is assumed that major ethnic groups in the populace are influenced more by ads that target them directly. However, these conclusions may be shifting due to the increasing levels of cosmopolitanism in young adult market segments. Cosmopolitanism, which sanctions a philosophical detachment from an individual's native culture and fosters identification with other cultures and customs, may be a potentially game-changing consideration for advertisers. This study looks at cosmopolitanism and its effect on attitudes toward ads, brands, and brand purchase intentions in multi-ethnic markets. Specifically, this study compares, across three different young adult US ethnic groups, the effects of multi-ethnic ads and ethnic-specific ads under various conditions of diversity. Data is tested via a structural equation model and results indicate that the answer to the conundrum of how to successfully advertise to shifting multi-ethnic markets (especially to the young adult demographic) may be to fully understand the target market's desire for diversity in the ad based on the direct, and indirect, influence of cosmopolitanism. Additional findings, limitations, and implications for research and practice are discussed.

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