GLOBAL FINANCIAL SYSTEM ADVISOR
MARKETING STRATEGIS
Section 1: Foundation of the Study
The 2008 financial downfall had effects on retirement planning and
the revenue of retirement advisors (Ellen, Wiener, & Fitzgerald, 2012; Nejad
& O’Connor, 2016). Consequently, the financial downfall may have
contributed to declining revenue for financial advisors and the inadequate
retirement savings for minorities such as women and the African American,
Latin American, and Native American cultures (Butrica, Smith, & Iams,
2012; Potrich, Vieira, Coronel, & Filho, 2015). Financial advisors may not
have marketed successfully to a variety of populations to generate revenue to
sustain their businesses.
The purpose of this qualitative study was to explore how financial
advisors successfully marketed retirement planning services to minorities. In
Section 1, I discuss the background of the problem, the problem statement,
the nature of the study, the research question, the conceptual framework, and
operational definitions. To clarify the focus of this study, I provide the
assumptions, limitations, delimitations, the significance of the study, and the
literature review.
Background of the Problem
Financial advisors benefit from strategic marketing plans (Trahan,
Gitman, & Trevino, 2012). Financial advisors provide a business impact
along with a social impact by their clients benefiting from good retirement
plans. However, as financial advisors’ clients and the general population’s
financial literacy increased with access to web-based services, some
financial advisors have lost existing clientele (Han et al., 2016; Kiliyanni
& Sivaraman, 2016; Lachance, 2014; Trahan et al., 2012). Therefore, the
lack of effective strategies for marketing to new clients may reduce the
revenue of financial advising firms.
Inadequate retirement planning will reduce consumers’ future
spending power (Martin & Finke, 2014). Financial advisors and businesses
can benefit by providing their services to consumers who have sufficient
spending power. Consumers should understand the importance of successful
saving behaviors (Ellen et al., 2012; Opletalová, 2015). Financial advisors
with adequate marketing strategies can generate revenue when they gain
sales from consumers’ spending (Webster & Lusch, 2013).
Business owners, such as financial advisors, use of effective
marketing strategies affect society by influencing their customers to spend
money and to consider the longterm effects of their spending (see Webster &
Lusch, 2013). Consumers expect both intangible and tangible benefits from
purchasing products and services (Guesalaga et al.,
2016; Lin & Bennett, 2014; Nasution, Sembada, Miliani, Resti, & Prawono,
2014; Özsomer & Altaras, 2008). Business owners expect to benefit from
consumers purchasing products and services from them as well. Therefore,
businesses such as financial firms need to develop strong client relationships
by focusing on the qualitative side of their relationships and not just the
quantifiable side of their relationships (Cummings & James, 2014). The
purpose of this exploratory case study was to identify successful strategies
used for marketing to minorities.
Problem Statement
Competing with large corporations, independent financial advisors
may not be generating enough revenue for their firms’ sustainability (Snider,
2015). Entrepreneurs who invented web-based resources provide options for
consumers to process their financial planning strategies (Gupta, Khanna, &
Kim, 2014; Schulaka, 2015). The U.S. financial services and wealth advisor
industries generated approximately $35 billion in annual revenue, which
included 50 large companies producing over half of that revenue (First
Research, 2016). Therefore, financial advisors may be losing their clients to
webbased resources and larger companies. To increase revenue, financial
advisors need to perfect their marking strategies to all demographics of
populations. The general business problem is that some financial advisors do
not market their financial services effectively to sustain their companies. The
specific business problem is that some financial advisors lack strategies for
marketing retirement planning services to minorities effectively.
Purpose Statement
The purpose of this exploratory qualitative case study was to explore
the strategies some financial advisors use for marketing retirement planning
services to minorities effectively. The targeted participants consisted of
financial advisors who had at least 3 years of experience and had
successfully marketed to minorities in the midAtlantic region of the United
States. Financial advisors’ successful strategies for marketing to minorities
may lead to increased sales’ revenue for financial planning businesses.
Social change can result from exploring information for financial advisors to
implement effective strategies for marketing to minorities. The findings of
this study may lead to positive social change through minorities’
improvement in financial planning from the use of financial advisors’
services. Additionally, by learning strategies for marketing to all
populations, financial advisors may learn strategies to promote multicultural
sales awareness and increase revenue for their businesses.
Nature of the Study
The purpose of employing an exploratory case study was to
understand financial advisors’ perceptions and experiences of the strategies
that they implemented for marketing to minorities such as African American
women to improve their companies’ sustainability. Qualitative research with
empirical data is necessary for understanding the experiences of participants
(Denzin & Lincoln, 2011). Qualitative case studies entail data that tends not
to be generalizable and analyzed numerically; however, quantitative research
entails generalization and statistical analysis (Anderson, 2010; McCusker &
Gunaydin, 2015). Quantitative analysis is appropriate when the focus of the
study is objective numerical data quantified to demonstrate causality
(Anyan, 2013; McCusker & Gunaydin, 2015). A quantitative methodology
was not appropriate for this study because an examination of a business
process requires qualitative information such as experiences and decision-
making processes. Similarly, a mixed method study was not appropriate
because, in a mixed methodology, researchers use both numerical data and
rich textural data to explore the problem from multiple perspectives
(Anderson, 2010; McCusker &
Gunaydin, 2015).
A case study was appropriate to explore strategies with an in-depth
and comprehensive approach (see Yin, 2014). Researchers use a
phenomenological design to provide descriptions of lived experiences about
a phenomenon (Marshall & Rossman, 2016; Moustakas, 1994), and the
results from an ethnographic study provide in-depth details of research from
observations regarding the lives of participants in their homes, work, and
surrounding environments (Denzin & Lincoln, 2011; Yin, 2014).
Phenomenological and ethnographical designs went beyond the
comprehensive approach of the case study to address the purpose of the
study; therefore, they were not the designs of choice.
Research Question
The research question guides the method of study (Goodman, Gary, &
Wood, 2014; Stewart, Gapp, & Harwood, 2017). Researchers must employ a
research question to validate the identification of a worthy research problem
(Ellis & Levy, 2009). I explored an open-ended research question as a guide
to this study: What are the strategies some financial advisors use for
marketing retirement planning services effectively to minorities?
Interview Questions
1. What experiences do you have in marketing to a variety of
populations in the marketplace?
2. To which specific minority populations have you attracted
successfully as customers through your marketing strategies?
3. What populations do you plan to market to outside of your current
categories of populations?
4. What marketing tools do you perceive to be effective in selling
financial planning services?
5. What strategic tools do you implement for your marketing strategies
that would affect minorities?
6. What marketing strategies do you perceive to be effective in selling
financial planning services?
7. What financial impacts have you experienced from marketing
successfully and demographically to minorities for retirement
planning services?
8. What percentage of minorities contributes to your revenue?
9. What financial literacy tools do you find beneficial for financial
advisors and minorities to capture the sales of financial services’
products?
10. What other information would you add to our interview discussion of
financial advisors’ marketing strategies to a variety of populations?
Conceptual Framework
Arnould and Thompson (2005) developed consumer culture theory
(CCT) framework over a 20-year span, from 1985-2005, by compiling
perspectives. The basic premise of CCT is that marketing requires
knowledge of consumers’ spending and their identity (Arnould &
Thompson, 2005). CCT is relevant to strategies that financial advisors use
for marketing and selling retirement planning services to minorities because
it can help financial advisors to learn about the needs of diverse populations.
In alignment with CCT, business leaders may implement strategies for
marketing and influencing their prospects’ purchasing behaviors (Webster &
Lusch, 2013).
Operational Definitions
The financial and marketing terminologies in this study referred to
retirement and marketplace sales techniques based on the conceptual
framework in this study. Financial planning products are normally intangible
services (Nasution et al., 2014; Winchester & Huston, 2014). Therefore, I
provide clarity on relevant terms. The following definitions were key terms
that needed the understanding of adequate retirement preparedness and
strategies for marketing to minorities.
African American: For purposes of this study, African American men
and women are U.S. citizens of African American descent, over 18 years
old, who have at least one
African American birth parent of slavery descent (Commodore-Mensah,
Himmelfarb, Agyemang, & Sumner, 2015).
Adequate marketing strategies: Adequate marketing strategies denote
sales agents marketing effectively to heterogenic markets (Arnould &
Thompson, 2005).
Adequate retirement savings: Adequate retirement savings signify that
retirees saved enough money to sustain them throughout retirement and
maintain their standard of living (Weller, 2010).
Financial literacy: Financial literacy denotes people’s ability to
maintain their financial well-being from comprehension of basic economic
principles, financial risks, financial management, and access to financial
tools (Durodola, Fusch, & Tippins, 2017; Malone, Stewart, Wilson, &
Korsching, 2010; Nejad & O’Connor, 2016; Opletalová, 2015; Potrich et al.,
2015).
Financial well-being: Financial well-being is the state of financial
freedom to denote being free from worries (Brüggen, Hogreve, Holmlund,
Kabadayi, & Löfgren, 2017; Malone et al., 2010).
Marketing: Marketing is a strategy to appeal to consumers by
revealing valuable products or services to exchange for money (Webster &
Lusch, 2013).
Marketplace: Marketplace denotes the places where consumers are
searching to purchase products (Arnould & Thompson, 2005).
Assumptions, Limitations, and Delimitations
Assumptions
Assumptions in research are facts that do not have the support of
substantial evidence (Ellis & Levy, 2009). One assumption of this doctoral
research was that the financial advisors would answer interview questions
honestly and thoroughly when sharing their experiences with marketing
financial services. Because of financial advisors’ fiduciary responsibilities,
financial advisors did not disclose their clients’ confidential information.
However, I assumed that some financial advisors have marketed successfully
to a variety of populations and were willing to share their strategies.
Furthermore, I assumed that all participants’ primary language was
English, and they would comprehend interview questions. Another
assumption was that the participants were from diverse racial and gender
backgrounds. Another assumption was that financial advisors would want to
aid in furthering financial planning marketing research to increase their
revenue from an untapped segment of people.
Limitations
Limitations are the acceptance that the researchers provided valid
details of their study from resources that they do not control (Ellis & Levy,
2009). Dependence on the participants’ honesty and willingness to share
information about the phenomenon under this study possibly had limitations
on the results of the study. Additionally, I had to rely on the participants’
integrity and expertise. Another limitation was that I interviewed a small
sample of the financial advising population. Employees of banks and large
firms were not appropriate to participate in this study.
A potential weakness of the study was the inability to follow a cohort,
the participants in the study. Another weakness was the lack of retirement
studies regarding a variety of populations such as immigrants, racial
minorities, African Americans, Hispanic Americans, and Native Americans.
Though there are studies on retirement, researchers’ prior projections about
retirement preparedness may not have been reliable for this study because of
changes in the stock market and new governmental regulations. For instance,
the 2008 future projection for the financial planning industry revenue was to
increase to approximately $31.2 billion, but the 2008 economic recession
lead to a decrease in revenue (Trahan et al., 2012).
Delimitations
Delimitations are boundaries set by the researcher in the study to
inform the readers of what is and is not in the study (Ellis & Levy, 2009).
The scope of the study was limited to financial advisors who have marketed
in the mid-Atlantic region of the
United States. Financial advisors with 3 years or more experience qualified
to participate in this study. Additionally, I targeted financial advisors from
various business segments such as corporations and independent financial
advisors. I addressed financial advisors’ strategies for marketing retirement
planning services to minorities. However, my intentions were not to address
directly inadequate financial planning.
Significance of the Study
The findings in strategies for marketing to minorities may be of value
to businesses because business owners’ can gain knowledge from the impact
of corporate social responsibility on their revenue stream (see Gupta &
Pirsch, 2014; see Martin & Finke, 2014). Consequently, business owners can
create a social impact on their communities by supplying community
members with resources that are essential to living better in retirement
(Gupta & Pirsch, 2014). Members of the business community may learn the
value of marketing to heterogenic populations instead of marketing solely to
homogeneous populations (Arnould & Thompson, 2005; Guesalaga et al.,
2016). Furthermore, when a change in regulations or demographics occurs,
business owners have the inherent values of serving a diverse group of
customers.
Contribution to Business Practice
Financial advisors and marketing teams may use the results from this
study to increase their net earnings. In the past, financial advisors may not
have saturated the market of minorities, such as African American women
and immigrants. Financial advisors using effective marketing strategies may
influence minorities’ behaviors toward successful financial and retirement
planning strategies (Durodola et al., 2017). Therefore, financial advisors
might gain revenue, and other business owners can gain revenue from
minorities’ spending power.
The minority population has increased. By 2024, the U.S. population
will be more racially diverse than it was in 2017 (U.S. Census Bureau,
2018). Businesses are developing strategies to reach minorities. For financial
advisors to be effective to all demographics, financial advisors should stay
well-informed of the strategies necessary to gain some of the spending
power from minorities such as African American women and Latin
American women.
Implications for Social Change
When implementing findings from this research, financial advisors
might develop new strategies for corporate social responsibility toward a
new demographic. Moreover, financial advisors may provide social impact
by providing retirement strategies to more members of minority
communities. All populations require resources to gain financial literacy for
saving and investing (Durodola et al., 2017; Mauldin, Henager, Bowen, &
Cheang, 2016). With an increase in financial literacy, communities may
experience a reduction in poverty and impoverished senior citizens
(Durodola et al., 2017; Potrich et al., 2015). Therefore, businesses and
communities will benefit from sufficient cash flow. If financial advisors do
not develop innovative marketing strategies, financial advisors might have to
prepare for future declines in sales because some of their clients may turn to
self-help tools on the Internet (Lachance, 2014). From adequate planning,
financial advisors marketing to minorities may generate increases in income,
revenue, and retirement savings leading to reductions in poverty (Hudson &
Palmer, 2014).
A Review of the Professional and Academic Literature
The professional and academic literature review substantiated the
reason to study financial advisors’ strategies for marketing retirement
planning services to minorities such as African American women. The
foundation of this study was financial advisors’ insufficient strategies for
marketing to heterogenic groups and minorities with inadequate retirement
preparedness. Inadequate retirement savings denoted that retirees replace
less than 75% of their preretirement income (Butrica et al., 2012; Weller,
2010). The purpose of this qualitative exploratory case study was to analyze
strategies that successful financial advisors implemented for marketing
retirement planning services to minorities.
I reviewed research regarding strategies for marketing to segments of
minority populations. Additionally, I reviewed minorities’ reasons for
inadequate retirement preparedness. Reading to synthesize literature during a
professional literature review is beneficial to determine that a problem is
worthy to study (Ellis & Levy, 2009). To find sources for the literature
review, I searched in the Walden University and North Carolina State
University libraries for literature found on the traditional databases, such as
Business Source Complete, EBSCO Host, ProQuest, and Google Scholar. I
used the following search terms: Black, consumers, females, finance,
financial advisors, financial planners, financial literacy, financial services,
immigrants, retire, retiree, retirement, retirement planning, retirement
population, marketing, marketing theories, multicultural, multicultural
marketing, African American, Hispanic American, Native American,
retirement savings, spending power, and women.
I researched relevant articles on retirement studies dating back to
2008. I organized this literature review by the following topics: (a)
marketing theories, (b) creating customer satisfaction for various cultures,
(c) marketing and spending power, (d) decision-making toward retirement
savings, (e) debt reductions in retirement savings preparation, (f) Pension
Protection Act effects on retirement savings, (g) marketing to women, (h)
minorities’ retirement savings challenges, and (i) the impact of health
insurance and medical costs on retirement savings. In this literature review, I
have 90 sources including 77 (85%) peer-reviewed articles published within
the 5 years before the date of this study. The remaining 15% includes four
government references representing 3%, five seminal books representing
4%, and 8% representing peer reviewed articles, nonpeer-reviewed
references and websites.
Marketing Theories
To perform effective strategies for marketing to minorities such as
African American women and other cultures, financial advisors should
understand the financial thought patterns of various populations. The goal of
this study was to identify financial advisors’ strategies for marketing
financial planning services to minorities. The conceptual framework of this
study was CCT.
Behavioral economics theory. Minorities such as African American
women have many retirement savings’ challenges such as caregiving,
income disparity, lack of knowledge, and distressed behaviors derived from
poverty or not using financial planning services (Butrica et al., 2012). These
challenges affect some minorities’ decisions regarding retirement savings.
Adequate retirement savings equates to approximately 75% of preretirement
income (Weller, 2010). Inadequate savings means not saving enough
(Butrica et al., 2012; Weller, 2010). Therefore, it is important for people
from multiple demographics to overcome challenges to financial crises to be
able to save money for retirement (Nejad & O’Connor, 2016).
Based on behavioral economics (BE), people may unconsciously
decide not to save because of their immediate gratification to maintain their
current lifestyles (Gordon, 2011). Additionally, some might not save because
they immediately wish to spend their designated savings on a financial crisis.
For instance, during crises, some people figure out their spending decisions
based on their immediate needs. Outside of crises, some people make
decisions from their environmental factors such as the behaviors of their
peers, their lifestyle, their cultures, and their social networks (Ajzen, 2011;
Arnould & Thompson, 2005; Chung & Park, 2015; Ellen et al., 2012;
Gordon, 2011; Lachance, 2014; Petersen, Kushwaha, & Kumar, 2015).
People may try to save passively after spending down their money (Kim,
Franks, & Higgins, 2013). Therefore, immediate gratification affects the
behavior to save.
Regarding environmental factors, one of the premises of BE is that
people may allow the impact of their surroundings with preconceived
notions to influence their decisions (Gordon, 2011). The premise of BE’s
emphasis is a comparison of decisions from obtainable information such as
observations of peers, ease of decisions, time, and convenience of locations
(Gordon, 2011). Therefore, even investors can make irrational decisions
because of their experiences. People do not make rational decisions all the
time, even when they have the pertinent details (Etzoni, 2011; Gordon,
2011). Investors and financial advisors’ behaviors affect their financial
decisions because they might have determined their past decisions by using
other people’s experiences as models. For instance, if financial advisors do
not research heterogenic groups’ buying habits, they may determine their
marketing strategy from the experiences of veteran financial advisors who
have marketed to one homogenous group such as White Americans.
Consequently, financial advisors’ and minorities’ behaviors may change by
understanding pertinent information such as consumers’ cultural thinking
and financial planning.
Because some minorities are most likely to socialize within their
ethnic environment, gender, or socioeconomic status, some may not know of
anyone using financial advisor’s services. Populations from some
socioeconomic backgrounds do not have access to financial resources
(Kojola & Moen, 2016; Mauldin et al., 2016). However, financial resources
such as banks and financial literacy products are necessary for savings and
investments (Durodola et al., 2017; Potrich et al., 2015). Men and consumers
with high household incomes tend to purchase financial products (Anderson,
Baker, & Robinson, 2017; Cummings & James, 2014; Durodola et al., 2017;
Hermansson &Song, 2016; Malone et al., 2010; Taylor, Budescu, Gebre, &
Hodzic, 2014). Consequently, consumers with strong financial networks
tend to have financial literacy skills and resources (Chung & Park, 2015). To
market to minorities effectively, financial advisors should understand their
financial planning experiences.
Consumer culture theory. From the conceptual framework of this
study, marketers should reach their marketing goals by reviewing research to
identify financial advisors’ strategies for marketing to minorities effectively.
To promote a variety of populations’ sales, marketers must identify with
consumers’ consumptions in the marketplace (Cossío Silva, Revilla
Camacho, & Vega Vázquez, 2013). In their research,
Özsomer and Altaras (2008) supported Arnould and Thompson’s (2005)
compilation of theories to form CCT by researching global branding. CCT
entails a variety of perspectives from theories to assist with understanding
the relationship of consumers’ consumptions of products and services
relevant to their culture and their market (Arnould & Thompson, 2005). The
basic premise of CCT is that successful marketing requires knowledge of
consumers’ spending from heterogeneous groups of people.
Arnould and Thompson (2005) developed CCT framework over a 20-
year span from 1985-2005. Arnould and Thompson developed CCT from
their research on a variety of theories that they used to understand the
relationship of consumers’ consumptions of products and services relevant
to their culture and the market. Three of the perspectives in CCT relevant to
this research are (a) consumer identity theory, (b) cultural capital theory, and
(c) authenticity theory.
To build upon theory, marketers should apply sources from CCT’s
original researched components such as consumer identity theory, cultural
capital theory, and authenticity theory. According to consumer identity
theory and cultural capital theory, consumers want products that relate to and
identify with their lifestyles (Özsomer & Altaras, 2008). Marketers view
authenticity theory as an assessment of consumers’ perception of products
and services as iconic, indexical, or existential (Arnould & Thompson, 2005;
Özsomer & Altaras, 2008). Using authenticity theory, CCT embeds an
invitation for consumers to desire a specific product that is synonymous with
their lifestyle (Arnould & Thompson, 2005). Before adopting a change in
their lifestyle, consumers need to believe companies’ reasoning to create a
product. In return, consumers may see the demand for a product. To
understand consumers’ reasoning, marketers need to examine prior research
and theories.
When consumers see the value of a product, they might buy it
(Webster & Lusch, 2013). In this context, Özsomer and Altaras (2008)
argued that authenticity theory entails genuine company behavior and the
authenticity of products. Özsomer and Altaras found that marketers viewed
authenticity as an assessment of consumers’ perception of products and
services as iconic, indexical, or existential. Indexical authenticity is relative
to consumers believing that a product is the original; iconic authenticity is
relative to an imitation of the original (Özsomer & Altaras, 2008). In
contrast, existential authenticity is intangible and synonymous with
consumers’ expression and identity (Özsomer & Altaras, 2008). Consumers’
assessment of market authenticity is relative to their perception of their value
of businesses’ products to determine whether they should buy those
products. If businesses’ representatives are successful in proving
authenticity, consumers may purchase products and businesses can gain
revenue.
Regarding indexical authenticity, financial advisors must be original
in developing their relationships with their prospective clients. Even though
they may have a niche market, financial advisors should market with a
strategy that reaches all segments of a population. Consumers in diverse
populations in emerging markets expect business leaders to market the value
of their services before gaining sales (Guesalaga et al., 2016). Based on
segmentation theory, customers will have diverse needs for services (Cossío
Silva et al., 2013). Businesses’ representatives will have to market and sell
the value of their services before customers buy it (Cossío Silva et al., 2013;
Guesalaga et al., 2016; Webster & Lusch, 2013). Hence, financial advisors
should help their prospects to understand the value of financial planning
services because it is an intangible product. Customers may not value
intangible products as much as tangible products because they find it hard to
measure the benefits (Lin & Bennett, 2014; Winchester & Huston, 2014).
Financial advisors should exhibit indexical authenticity just as successful
businesses exhibit indexical authenticity. Various cultural populations assess
the desire for authenticity in diverse ways (Guesalaga et al., 2016).
Companies’ representatives, such as financial planning marketing firms,
should demonstrate that they recognize their customers’ culture and the
environment in purchasing services marketed to them (Arnould
&Thompson, 2005; Petersen et al., 2015). These representatives should not
expect ethnic groups to assimilate but recognize what appeals to those
groups. Companies’ representatives can engage with various ethnic groups
to build around generosity and contributions to their communities.
Some minority consumers may not deem financial advisors’ services as
necessary because financial advisors might not have approached them with
indexical authenticity.
In their research of consumer identity and cultural capital studies,
Arnould and Thompson (2005) found the need to understand consumers’
behavioral patterns toward product consumption. Marketers must understand
consumers’ culture to develop strategies for marketing to heterogenic
cultures (Arnould & Thompson, 2005; Cossío Silva et al., 2013; Petersen et
al., 2015). Additionally, Arnould and Thompson indicated that researchers
should study consumers’ culture and social environment heterogeneously.
Arnould and Thompson concluded that consumers are not passive actors and
that their behavior does not fit into concise categories as defined by some
marketing research. Furthermore, marketing researchers often cannot
accurately interpret purchasing habits due to cross-cultural differences
(Arnould & Thompson, 2005). Arnould and Thompson argued that
researchers from all disciplines should interpret consumers’ purchasing
habits across a complexity of cultures.
In a changing market, financial advisors should market to consumers
of all ethnicities to generate revenue. Traditionally, financial advisors market
to White Americans or those they consider having a high net worth, as most
financial advisors seek desirable clientele (Babiarz & Robb, 2014;
Hermansson & Song, 2016). Özsomer and Altaras (2008) argued that
companies’ representatives and marketers must understand consumers’
behavior, supply and demand sides, and the effect that various consumers’
cultures place on the success of their businesses. Marketers need to accept
that one theory could not be a sufficient model for understanding marketing
and branding globally (Arnould & Thompson, 2005; Özsomer & Altaras,
2008). Some marketers make their decisions from their cognitive research
and not just experimental research business models (Berends, Smits,
Reymen, & Podoynitsyna, 2016). Therefore, financial advisors should
understand the different marketing strategies to sell to all types of
populations.
As applied to this study, CCT entails theories that would enable
financial advisors to market to minorities by understanding their identity in
the marketplace. Financial planning marketers’ implementation of CCT may
help them to understand minorities’ reasons for not buying financial services
because the use of CCT provides an understanding of consumers’ identity
and consumption practices (Özsomer & Altaras, 2008). For example, some
African American women may not be in the market for financial advisors’
services. However, financial advisors who communicate their brand and
their corporate social responsibility may gain business from minorities
(Martin & Finke, 2014). If financial advisors promote their brand of
financial services as beneficial to minority communities, those populations
may understand the importance of purchasing financial planning products.
Furthermore, people need access to multiple resources like education and
access to financial institutions to understand the value of financial planning
services (Mauldin et al., 2016). Marketers and business leaders such as
financial advisors can gain additional revenue by knowing their clienteles’
triggers to buy products and services.
For companies to promote their brand of products, their
representatives should understand consumers’ expectations (Nasution et al.,
2014; Özsomer & Altaras, 2008). For instance, financial advisors may
generate revenue from the sale of their services by understanding how all
consumers spend their money. Marketing managers in the service industry
accomplish branding strategies via innovation and differentiation (Lassala,
Momparler, & Carmona, 2013; Nasution et al., 2014). Financial advisors
need to brand themselves as understanding the needs of their clients.
Accordingly, financial advisors should adapt marketing strategies that
encourage minorities to buy financial products.
To be successful in marketing to their clients, financial advisors need
to promote strategies to ensure that clients perceive the value of financial
planning services. Moreover, financial advisors must determine necessary
measures to build relational trust (Monti, Pelligra, Martignon, & Berg, 2014;
Lassala et al., 2013). Some people may trust their friends, family, and their
workplace associates more than they would trust financial advisors who may
not be in their network (Chung & Park, 2015). Some populations, such as
Generation Yers, may make their investing decisions by participating in
social and financial networks that include associates with high financial
literacy knowledge bases (Chung & Park, 2015).
People may be conservative in using financial products because of
their lack of trust in the financial services industry (Babiarz & Robb, 2014;
Calcagno, Giofré, & UrzìBrancati, 2017; Guesalaga et al., 2016; Monti et
al., 2014). Consequently, some Generation Yers chose to invest similarly to
how their financial networks invest versus advice from their employers’
401(k) resources (Chung & Park, 2015). People may need to perceive that
the benefits of financial planning services outweigh the financial costs of
using financial advisors (Cummings & James, 2014). Some populations may
decide to receive financial services, such as financial literacy products, by
using technology to reduce expenses instead of paying the cost of face-to-
face appointments (Lachance, 2014; Trahan et al., 2012).
Consumers can comparison shop for financial products with the
advice of representatives in the financial services industry (Calcagno et al.,
2017; Lassala et al., 2013; Monti et al., 2014). Therefore, the financial
services industry and business owners may benefit from selling services to a
variety of populations who may not see the necessity of purchasing financial
planning services and other unique products such as luxury cars. Hence,
financial advisors should understand minorities’ spending patterns and build
trust to promote changes in their behaviors.
When financial planning marketers integrate BE and theory of
planned behavior (TPB) with CCT, clients’ behavior could change to favor
financial advisors’ services. The premise of BE and TPB is that attitudes and
behaviors can change (Ajzen, 2011; Gordon, 2011). Özsomer and Altaras
(2008) suggested that CCT includes theories that assist companies with
identifying the concerns of their prospective clients through the
understanding of their cultures in specific geographical areas for branding
and the promotion of their products. When clients begin to relate to a
product that they normally do not purchase, they might buy the product.
Theory of planned behavior. TPB is another theory that researchers
use to address consumer behavior. Salespeople use sales and marketing
tactics to influence human behavior toward decision-making (Nasution et al.,
2014). Theorist Ajzen (2011) created TPB in 1985. Ajzen derived TPB from
reason action theory. Through TPB, Ajzen projected changes in human
behavior rendering three beliefs: behavioral, normative, and control.
Regarding behavior, Gordon (2011) analyzed the use of BE to
understand humans’ decision-making tactics. The premise of BE is that
humans unconsciously make decisions based on their surroundings with
preconceptions constructed into their thought and decision-making processes
(Gordon, 2011). Gordon’s research of BE supported Ajzen’s research
regarding TPB because sometimes humans allow innovative ideas to change
their preconceptions and affect their behavior. According to Ajzen’s TPB,
the changes in three beliefs, behavioral, normative and control affect human
behavior (Ajzen, 2011). TPB and BE are necessary to understand decision
making from a theoretical and a practical standpoint.
BE is relevant to attitudes, beliefs, opinions, and behaviors that
determine decisions. Therefore, Gordon’s (2011) research is significant to
the research of TPB and CCT in a conceptual framework. Gordon examined
the difference between the academic, theoretical practices in social sciences,
and commercial, qualitative research. Gordon argued that each decision a
person makes is new because of the influences from context and priorities,
such as who, how, when, and where. Hence, people’s decisions may not
always be predictable, but decision outcomes may be the result of situational
standpoints.
Marketers should understand the reason that minorities such as
underrepresented populations have no desire to buy products and services
from some businesses. Some minorities may unconsciously decide not to
save money for large purchases and retirement because of the immediate
gratification to maintain themselves in crisis and materialism. Gordon (2011)
emphasized that BE include comparisons of decisions from current
information available such as current observations of peers, ease of
decisions, time, and convenience of locations.
According to TPB, some decisions might change from companies’
representatives’ influence on consumers’ behavior (Ajzen, 2011). Marketers
need to relate to consumers’ behaviors (Cossío Silva et al., 2013).
Minorities’ behavioral changes toward saving for financial retirement by
forgoing instant gratification might occur from observing new financial
resources and strategies from financial advisors.
Creating Customer Satisfaction for Various Cultures
Successful businesses gain their fair share of the marketplace by
performing at their customers’ expectations. Kumar, Sharma, Shan, and
Rajan (2013) researched profitable customer loyalty (PCL) for multinational
companies. They made a distinction between standardization and adaptation.
In general, Western cultures accept the standardization approach (Kumar et
al., 2013). However, according to Kumar et al., foreign markets like Brazil,
Russia, India, China, and South Africa (BRICS) entail diverse cultures.
Kumar et al. proposed that businesses provide an adaptation strategy for
marketing to cultures that are non-Westernized. Whether businesses
implement a standardization approach or an adaptation strategy approach,
they need a reliable way to measure customer satisfaction (Lin & Bennett,
2014).
In promoting customer satisfaction, business owners who are
attempting to profit from any culture need to determine the best strategy to
reach various demographic groups (Özsomer & Altaras, 2008). Guesalaga et
al. (2016) argued that people from all cultures want respect regardless of
regional cultural differences. Businesses with good customer service ratings
may gain a fair share of the marketplace.
Customer loyalty contributes to the success of businesses. Kumar et
al. (2013) added their unique conceptual framework of establishing
profitable customer loyalty (PCL) to marketing research. Financial advisors
need to establish customer loyalty with their customers for referral business
and cross sales. Kumar et al. found that customer loyalty does not
automatically create a profit unless coupled with quality sales performance.
Businesses leaders need sustainability from profits. Businesses’
leaders use their sales performances’ skills to influence change in customers’
behavioral and attitudinal variables to maintain continual profits (Kumar et
al., 2013). As implied earlier, based on the premises of BE and TPB,
humans’ decisions are not constant because their behaviors may change
because of preconceived biases derived from their current environmental
effects (Ajzen, 2011; Gordon, 2011). Companies’ leaders foresee limitations,
such as geography and demography, to the strategies for successful
promotions toward customers’ satisfaction (Kumar et al., 2013). Kumar et al.
(2013) contributed to the strategies in marketing research because their
population consisted of various socioeconomic status and subcultures.
Financial advisors need marketing strategies to gain sufficient customers’
satisfaction by generating the behavior that promotes PCL.
Business leaders need to strive for better customer satisfaction for all
cultures (Guesalaga et al., 2016). Kumar’s et al. (2013) research was
relevant to financial advisors’ strategies for marketing to minorities because
some minorities, such as immigrants, are subcultures of the U.S. culture.
Therefore, financial advisors may not be marketing to minorities
successfully. For financial advisors to gain a share of various populations in
the marketplace and to help them plan for retirement, financial advisors need
to determine effective strategies for marketing to consumers, whom they
normally may not solicit.
Marketing and Spending Power
In the aspect of marketing, financial advisors may need to understand
the system of marketing because minorities’ adequate retirement planning
might affect their spending power and financial advisors’ revenue. The
growth of minority populations coincided with growth in spending power
(Poulis, Yamin, & Poulis, 2013). Financial advisors’ willingness to change
their marketing strategies to reach a variety of populations can benefit
financial advisors’ increases in sales from those populations’
purchasing power.
Regarding potential spending power, the baby boomer generation
includes approximately 78 million men and women (Okere, Latiff-Zaman, &
Maloney, 2008). Older adults are a sizeable portion of the U.S. population
(Bamberger & Bacharach, 2014). Moreover, older adults come from various
backgrounds and religions that may request socially responsible investing
(Beer, Estes, & Deshayes, 2014). Financial advisors may need to understand
their clients’ history before trying to make sales. Okere et al. (2008)
conducted a quantitative research study that added to existing literature
regarding baby boomers’ influence on socially responsible investing (SRI).
Okere et al. based their empirical research on data from the Federal Reserve
Board Survey of Consumer Finances regarding average annual expenditures
and consumer finance characteristics of different age groups. The data
consisted of cross-sectional time data sets for various age groups from 1984
to 2006 and approximately 78 million baby boomers from 1946 to 1964
(Okere et al., 2008). In this regard, the baby boomer generation has an
impact on society via their potential spending power.
The baby boomer generation consists of a variety of populations.
Okere et al. (2008) entailed in their data collection U.S. participants before
tax expenditures on education and retirement. Okere et al. argued that the
baby boomer generation has a large expenditure power, and they influenced
most of the investment savings toward retirement and pensions. Therefore,
minorities influence the sales revenue of business owners because they are a
percentage of the baby boomers.
Some in the baby boom generation may be financially literate, which
lead to a significant income for an adequate retirement fund. Okere et al.
(2008) concluded that the baby boom generation had more money and
education to contribute to a successful longterm retirement than those in the
study who were under 45 years old. The baby boomer generation’s spending
power has a significant impact on investing. The baby boomer generation is
the largest generation in generational cohorts (Butrica et al., 2012; Kojola &
Moen, 2016). Okere et al. did not delimit their study to any specific ethnic
groups. Conversely, baby boomers include unique and underrepresented
populations. However, Okere et al.’s research was relevant to add to the
knowledge of understanding various age groups in the baby boomer
populations. Okere et al. presented significant research to understanding
baby boomers’ consumption and spending power.
To market to the minorities within the baby boomer generations,
financial advisors may need to consider creative strategies versus the
traditional strategies such as advertising and direct marketing. Independent
financial advisors from Spain agreed that they experienced an increase in
business performances by implementing innovation (Lassala et al., 2013).
Innovative strategies include networking with other businesses, creating
innovative activities such as new ways of gathering knowledge and reducing
costs, and collaborating with other resources such as their supply chain, and
industry landscapes (Lassala et al., 2013; Webster & Lusch, 2013).
Regarding creative marketing strategies, professionals, consumers’ friends,
and family members are valuable resources that lead to financial advisors’
business referrals (Cummings & James, 2014). Chung and Park (2015)
argued that in investment decision making, financial literacy and social
networks complement each other. To market to minorities, financial advisors
may need to attend or create activities that involve minorities.
According to CCT, successful marketing requires an understanding of
consumers’ consumptions of products and services that are relevant to their
culture and market (Arnould & Thompson, 2005). Financial advisors can
gain knowledge and increase sales performances by identifying with various
segments within the minority populations. Additionally, financial advisors
can gain knowledge from collaboration such as sharing resources with from
business networks. By using these measures, financial advisors might
understand their customers.
For increases in sales growth, financial advisors should create
innovative ways for minorities to spend money for financial planning
services. The baby boomer generation includes minorities from all
socioeconomic groups, which include minority segments with large
spending power (Okere et al., 2008). Financial advisors will need to identify
with the culture of the group whom they are marketing (Arnould &
Thompson, 2005; Petersen et al., 2015). Additionally, financial advisors will
learn to be adaptable to new minority prospects from their innovations
(Lassala et al., 2013). Adaption and innovation in marketing are
requirements to gain leverage into spending power.
Ellen et al. (2012) explored the retirement savings financial crisis
during the economic downfall because citizens are saving less. Ellen et al.
found the necessity for the expansion of theories to complement theories on
citizens’ behaviors toward retirement savings. Marketers will need more
than one theory to understand multicultural marketing because minority
populations consist of many cultures (Poulis et al., 2013).
Financial professionals should apply theories to understand
individuals’ behaviors toward saving money. Most Americans rely
instinctively on several factors that influence retirement savings behavior
such as their savings behavioral traits, their life stages, and income levels
(Brüggen et al., 2017; Ellen et al., 2012). In their research, Ellen et al.
investigated future self-theory to complement behavioral theories of
retirement. Ellen et al. found that the participants’ view of the future enabled
them to understand the need for retirement saving to avoid financial crises in
the retirement phase of life. Adequate retirement preparedness required more
than education and knowledge; it requires the behavior to save for
retirement.
Decision-Making toward Retirement Savings
People’s savings behaviors affect their decision-making process about
financially preparing for retirement (Brüggen et al., 2017; Hermansson &
Song, 2016; Kim et al., 2013; Kim, Shin, Heath, Zhang, & Higgins, 2017).
Knoll (2010) argued that behaviors influence the reasoning for financial
preparation for retirement. Researchers have analyzed several schools of
thoughts regarding decision-making: TPB, traditional economic theory
(classic economic theory), and behavior economics theory (Ajzen, 2011;
Gordon, 2011; Knoll, 2010). People’s behaviors affect rational thinking.
Professional representatives may benefit from understanding decision-
making theories. Traditional economics theory operates under the
assumption that people use rational decision-making techniques to make
decisions when all the information necessary to plan is available (Knoll,
2010). Traditional economic theorists claim that consumers make rational
decisions from the presentation of the pertinent information (Knoll, 2010;
Lown, Kim, Gutter, & Hunt, 2015). In contrast, traditional economic theory
does not include the decision-makers’ internal and external environment
(Lown et al., 2015; Knoll, 2010). Therefore, professional sales
representatives should have a clear understanding of the pros and cons of
decision-making theories.
The proponents of BE and judgment and decision-making challenge
traditional economic theory because people do not make rational decisions
all the time, even when they have the pertinent details (Etzoni, 2011;
Gordon, 2011; Knoll, 2010). For example, even though minorities may have
a desire to save, some do not save because of their income statuses and life
challenges (Nejad & O’Connor, 2016). Financially literate people may not
always allow their financial knowledge to influence their financial decisions
(Durodola et al., 2017; ). Challenges such as low-income statuses and life
experiences are barriers to making strategic financial decisions for any
population
(Brüggen et al., 2017; Durodola et al., 2017; Mauldin et al., 2016; Nejad &
O’Connor, 2016). Likewise, people allow their cognitive abilities to
influence their behavioral thinking (Knoll, 2010). Financial educators can
encourage behaviors to resist barriers to financial sufficiency for retirement
savings goals (Winchester & Huston, 2014). Consequently, people can
benefit from financial literacy tools and services from financial advisors.
Instead of using rationality, some decision-makers allow their
environment to influence their decisions. The behavioral economist posits
that predictions of consumers’ decisions require the knowledge of their
internal and external surroundings (Ajzen, 2011;
Arnould & Thompson, 2005; Chung & Park, 2015; Ellen et al., 2012;
Gordon, 2011; Lachance, 2014; Knoll, 2010; Petersen, et al., 2015). To
assist minorities with their financial strategies for retirement, financial
advisors should think differently by viewing various populations’
environments to understand their behaviors toward saving. Consumers are
not robots; they are complex (Arnould & Thompson, 2005). Consumers’
spending habits should be understood to influence their decision-making
process (Durodola et al., 2017; Webster & Lusch, 2013). Marketers, such as
financial advisors, may need to consider consumers’ spending habits and
thought patterns before trying to sell them financial products. Likewise,
regarding savings, consumers’ intentions and behaviors may not always fall
into rational alignment (Knoll, 2010). For example, though minorities may
have a desire to save, some may be living or working in an environment that
does not influence saving. Moreover, some minorities may be living in
environments where people influence materialism and immediate
gratification, such as buying nice cars, clothes, and living beyond their
means. People relate to their social environment and may save or invest
accordingly (Chung & Park, 2015; Potrich et al., 2015). Therefore, people
allow their cognitive abilities to influence their behavioral thinking (Knoll,
2010). Minorities need financial advisors to provide financial literacy to
encourage behaviors to resist barriers to financial sufficiency for retirement
preparation.
U.S. citizens do not always make reasonable choices for retirement
because of their savings behaviors and the insufficient tools available to
make an informed decision. Knoll (2010) addressed information regarding
retirement savings habits from a sampling of the U.S. population. Knoll
provided recommendations to assist people with adequate retirement
preparation: financial saving incentives for employees, educational
retirement, and financial advisors. People may not have financial tools or
have supportive social financial networks. Therefore, financial advisors,
employers’ benefits personnel, and the government should understand the
necessity of providing educational tools to assist citizens with financial
preparation for retirement as well as convince them to save (Hogg, 2009).
Some financial tools are financial manuals, financial websites, and television
programs (Opletalová, 2015). Chung and Park (2015) argued that employers
need to provide their employees with avenues to build relationships with
financial advisors because employees may not have a strong financial social
network. Knoll (2010) argued that having the correct tools does not
necessarily mean that individuals would make the best decision.
Additionally, adequate financial literacy takes more than individual financial
knowledge (Calcagno et al., 2017; Durodola et al., 2017; Ellen et al., 2012;
Chung & Park, 2015). An informative and educational presentation for the
preretirees about retirement strategies should be necessary to improve their
retirement savings behavior because people may not have financial tools or
have a strong network.
Financial planning firms should market realistic choices to their
customers such as those in the multicultural demographics. Marketers who
promote their brands to specific targets, as well as their existing target, will
reach different segments of populations to increase their revenue (Gupta &
Pirsch, 2014; Poulis et al., 2013). Financial advisors may help customers in
all demographics by providing appropriate financial products that would
benefit them in their retirement.
Some demographic groups need simplicity in retirement education
rather than the overload of financial education (Cummings & James, 2014;
Nejad & O’Connor, 2016). Simplicity entails the term choice architecture.
The premise of choice architecture is that the wording or presentation style
of a sales pitch will sway consumers to favor the presenters’ offering
(Benartzi et al., 2017). Gordon found that custom presentations to multiple
demographics can influence decision-makers’ favorable decision.
If a service or product is beneficial, the presenters will not only gain
the new customers but will show corporate social responsibility that may
help decision-makers to overcome challenges of insufficient savings (Martin
& Finke, 2014). For example, retirees, who have no financial worries, might
pay their bills on time as well as have the purchasing power to buy products
from the marketplace. Business owners who market to an untapped segment
will benefit from sales to those untapped segments in the marketplace
(Gupta & Pirsch, 2014).
Community engagement is a type of corporate social responsibility
(Martin & Finke, 2014). For corporate leadership to generate revenue, they
need various marketing strategies that appeal to all populations. About
appealing to diverse markets, some financial advisors provide psychological
benefits (Cummings & James, 2014). If financial advisors help their
customers to envision a comfortable retirement, they might gain an increase
in revenue and help their consumers make realistic choices. Therefore,
financial advisors’ corporate social responsibility may generate revenue and
help communities with social, economic advancement.
Some decision-makers permit barriers to influence their decisions.
Some minorities derive their savings habits from barriers, not just from
negligence. Barriers may include immediate gratifications, depending on
someone else to care for senior citizens, and financial illiteracy such as
thinking that there is enough time to wait to save later in life (Hogg, 2009).
Based on results from judgment and decision-making and BE research,
Knoll (2010) suggested that people might not be economically rational
thinkers. For instance, people may make purchases for immediate
gratification instead of saving for long-term goals.
When information is not present for valid decision-making, cognitive
thinking takes precedence over traditional thinking theories (Knoll, 2010).
Cognitive thinking entails making decisions based on knowledge and
experience but without all of the facts. For example, when people believe
that social security benefits will pay all of their bills, they may not
understand the need to save for retirement. The lack of education regarding
economics and retirement savings benefits contributes to some behavioral
decisions regarding successful retirement preparation (Ellen et al., 2012;
Lachance, 2014; Malone et al., 2010; Potrich et al., 2015). For instance,
blue-collar workers might have less financial literacy than white-collar
workers may have. Populations from some socioeconomic background do
not have access to financial resources (Kojola & Moen, 2016; Mauldin et al.,
2016; Nejad & O’Connor, 2016). Poulis et al. (2013) found that
commonality formed ethnicity. Therefore, workers can learn to be
financially literate. All ethnic groups are required to overcome barriers to
saving for retirement by being financially literate and forgoing immediate
gratification.
As a corporate social responsibility, financial advisors and employers
need to provide sufficient financial literacy education to underserved groups
within the minority community. Minorities such as immigrants and ethnic
groups contribute to business revenue economically as well (Guesalaga,
Pierce, & Scaraboto, 2016). Willett (2008) recommended that employers
provide more adult education techniques to communicate to various
generations about retirement savings and retirement automatic enrollment
plans and to help them create worthy retirement goals. Even though
employers can now enroll employees automatically into retirement plans,
employees still hold a shared responsibility to become financially literate
and to contribute more money to retirement plans to reach comfortable
retirement goals (Hogg, 2009).
Preretirees should focus on their goal of saving money for retirement
by maintaining their financial savings strategy during poor economic times.
If preretirees receive sufficient retirement preparation information and forgo
immediate gratification, they may use the information to assist with retiring
comfortably (Hogg, 2009; Knoll, 2010; Willet, 2008). Financial advisors and
other financial institutions might encourage a sense of urgency to save by
revealing historical and economic facts of the stock market and the value of
saving early. For example, many people were unprepared for the 2008
economic downfall because they did not have enough savings to sustain
them in bad economic conditions (Butrica et al., 2012). Some people treated
their retirement plans as an emergency fund plan (Hogg, 2009). People who
shifted their retirement savings plan into an emergency fund shortened the
lifespan of their retirement funds (Hogg, 2009). Preretirees need to be
proactive and plan for the economic turmoil that may occur during the years
they are saving for their retirement fund because they may not have time to
recover from a financial crisis.
Another factor that affects adequate retirement financial decision-
making is a lack of knowledge regarding cultural and educational
backgrounds influencing decisions. Some minorities might have generated
their unprepared financial savings expectations from cultural beliefs. In
general, people make decisions from their preconceived biases generated
from their cultural beliefs and their environment (Arnould & Thompson,
2005; Ellen et al., 2012; Gordon, 2011; Potrich et al., 2015; Poulis et al.,
2013). To promote changes in consumers’ behaviors, marketing strategists
should use some results from marketing theories such as TPB and CCT
(Ajzen, 2011; Arnould & Thompson, 2005). Arnould and Thompson (2005)
argued that marketers must understand their demographics to persuade
consumers to purchase from the market. Poulis et al. (2013) found that
marketers should determine if a minority population will accept the culture
in which they live or their parents’ cultural origin. Some minorities who
change their financial behaviors by knowing adequate decision-making skills
can find assistance with overcoming barriers that hinder them from adequate
financial retirement preparation.
A different factor affecting saving behaviors is the appeal of
temporary satisfaction over long-term concerns (Butrica et al., 2012; Hogg,
2009; Knoll, 2010). For example, some people may purchase three cars for a
two-person household instead of saving for retirement. People make choices
that fulfill their immediate satisfactions instead of aiming for future goals
(Ellen et al., 2012; Hogg, 2009; Karamcheva & Sanzenbacher, 2014;
Willett, 2008). Hogg, and Hayhoe et al. (2012) and Willett found that some
people do not save for retirement because it did not generate immediate
gratification. To resist temporary gratification and save successfully for
retirement, people will need to create a financial planning strategy (Hogg,
2009). People require skills to learn behaviors of urgency and avoid instant
gratification. People need resources to create the knowledge necessary for
saving and investing (Mauldin et al., 2016; LaChance, 2014). For example,
people who envision a desirable retirement are more likely to maintain
rational savings practices.
U.S. citizens’ desire for a comfortable lifestyle is not the only factor
hindering their retirement savings. U.S. present and future economic ills also
affect adequate retirement planning. Lachance (2014) and Willett (2008)
argued rising healthcare costs, minimal social security, longer lifespan,
changes in the market, and changing retirement dates as factors contributing
to retirees’ failure to save adequately for retirement.
Regarding lifestyles, retirees face the impact of inflation, medical
expenses, and the reduction in social security benefits that will hinder their
adequate retirement savings preparation (Lachance, 2014). Retirees’ income
tends to be lower in retirement than income earned in their working years
(Butrica et al., 2012; Durodola et al., 2017). If not prepared, economic ills
affect adequate retirement preparedness for some citizens.
Most citizens are employees before the retirement phase of life.
Employees’ behaviors change based on financial literacy and the economic
landscape (Durodola et al., 2017; LaChance, 2014). Willett (2008) explored
employees’ behaviors toward variables regarding all financial considerations
necessary for a desirable retirement phase of life. Lachance (2014) found
that those variables such as economic ills contributed to elderly poverty.
Weller (2010) argued that savings decreased before the 2008 economic
pitfall because of changes in corporate retirement plans. Minorities need to
learn how to save against the odds of those challenging variables (Hogg,
2009; Nejad & O’Connor, 2016). External and internal situations, such as a
failing economy and financial illiteracy, affect employees’ ability to prepare
for adequate retirement.
People should have retirement savings goals to focus on their savings’
behaviors. People’s short- and long-term goals tend to influence their
behaviors (Han et al., 2016). Retirement savings behaviors of workers
change as they transition into distinct phases in their lives: early career, mid-
career, and late career (Durodola et al., 2017; Willett, 2008). Mauldin et al.
(2016), Hayhoe et al. (2012), and Webster and Lusch (2013) found that their
older research participants and their participants with graduate degrees
tended to save more than their younger and less educated participants did.
Seniors invest and save more than they did when they were younger (Kim et
al., 2013; Nejad & O’Connor, 2016). However, those investors tend to take
less risk as they age (Chang, Hunter, Qianqiu, & Saar, 2014). As some
peoples’ goals change because of their educational statuses and increases in
ages, their savings’ behaviors and financial literacy patterns change
(Durodola et al., 2017; Ellen et al., 2012; Han et al., 2016). People who
changed and saved early in life reaped the rewards of a successful retirement
(Knoll, 2010; Martin & Finke, 2014). Some changes can lead to large
outcomes.
In general, consumers need to change their consumption patterns for
sustainability (Durodola et al., 2017; Webster & Lusch, 2013). Hence, the
generation of retirees not prepared for retirement evolved from not changing
and adapting to life events and economic phases. When presented with
adequate financial literacy information, retirees should be financially
prepared.
Peoples’ knowledge of financial literacy might lead to the desire to
save money early in life. Saving early in life could add up to a lot later, even
for the low-income earners (Friedline & Rauktis, 2014; Martin & Finke,
2014). Saving early in life could prevent poverty and loss of assets
(Opletalová, 2015). People should implement their financial literacy
knowledge to make decisions toward preparing for adequate financial
savings.
Debt Reductions in Retirement Savings Preparation
Employees with excessive debt may not focus on retirement savings
goals. Knoll (2010) and Willett (2008) argued that people allow debt to be a
reason for not saving for retirement. Employees required real-life examples
to understand the concept of reducing unnecessary debt to save for
retirement (Opletalová, 2015). To understand retirement savings and the
reduction of debt, employees benefit from life skills application versus just
theoretical synopsis (Knoll, 2010; Willett, 2008). People need financial
literacy resources to learn how to save and invest (Mauldin et al., 2016;
Nejad & O’Connor, 2016; Opletalová, 2015). If employees explore real-life
examples and understand the application of financial tools, they might
attempt to reduce debt.
Employees with retirement savings goals should avoid having
excessive debt. Employees’ focus on their future may deter them from
acquiring some debt (Potrich et al., 2015). Successful retirement savings
choices involve having cash accumulation balances and the awareness of
desirable lifestyles in the retirement phase of life (Ellen et al., 2012; Knoll,
2010; Willett, 2008). Retirement savings encompass cash accumulation to
cover living locations, hobbies, medical needs, and various living expenses.
To reach financial goals, employees need to reduce and avoid excessive
debt.
To understand the reason for debt reduction, financial advisors should
explain the urgency to save and not procrastinate. Knoll (2010) and Willett
(2008) recommended the urgency of education to assist with improvement in
retirement savings behavior and enhance communication, counseling, and
policy-making. Additionally, people having adequate financial education can
increase their financial literacy which may lead to less debt (Durodola et al.,
2017). Hence, for an adequate retirement, some preretirees need to improve
their spending habits to reduce debt.
Pension Protection Act Effects on Retirement Savings
Preretirees should plan for adequate funding for retirement. The
percentage of employers providing defined benefits pension plans has
decreased (Butrica et al., 2012; Karamcheva & Sanzenbacher, 2014).
Regarding defined benefits pension plans, employers were responsible for
managing their employees’ retirement plans; however, a shift in managing
retirement savings responsibility occurred (Anderson et al., 2017; Calcagno
et al., 2017). Employees have the responsibility of saving and understanding
defined contributions (Hogg, 2009; Hudson & Palmer, 2014; Karamcheva &
Sanzenbacher, 2014; Martin & Finke, 2014; Weller, 2010).
The U.S. government implemented the Pension Protection Act of 2006
to assist employees with their contributions to their workplace retirement
plans. The Pension Protection Act of 2006 permitted employers to deduct
funds from their employees’ paycheck for automatic enrollments into their
employees 401(k) plans (Ellen et al., 2012; Hogg, 2009; Kim, Shin, Heath,
Zhang, & Higgins, 2017). In 2006, the employers’ provision of 401(k) plans
had increased from approximately 68% participation rate to around 91%
participation rate because of automatic enrollment (Hogg, 2009).
Employees may not retire sufficiently from automatic enrollment
because they may not contribute more than the default rate (Hogg, 2009).
Employees may need financial literacy education and discipline to take
advantage of 401(k) plans (Ellen et al., 2012; Hogg, 2009). The U.S.
government approved the default rate to allow employers to enroll a
percentage of their employees’ earnings automatically to a defined
contribution plan (Hogg, 2009). However, employees face more financial
risk exposures with defined contributions plans (Weller, 2010). Employees
require knowledge of responsible behaviors to learn how to save for
retirement without relying on a default rate for enrollment into a retirement
plan because the default rate is not an adequate amount of retirement
savings.
Marketing to Women
Women will need to see the importance of financial advisors’ services
because men and their adult children may not be around to help with funding
retirement. The population of unmarried women between the ages of 45-63
increased significantly by 10% from 1980 to 2009 (Lin & Brown, 2012).
Unmarried and widowed retirees suffer from financial disadvantages
because they do not have the benefit of spousal social security checks; these
retirees might have lower social security benefits (Butrica et al., 2012; Lin &
Brown, 2012; Sharma, 2015). Some newly widowed women may need
financial advisors to help them with managing their finances because they
may not be emotionally capable of managing their finances (Cummings &
James, 2014). While transitioning through life events, women may see the
importance of having relationships with financial advisors. Normally,
women are more risk-averse than men regarding retirement investing
(Brüggen et al., 2017; Gillen & Heath, 2017; Lown et al., 2015; Malone et
al., 2010). Financial advisors must ask appropriate questions to determine
the risk tolerance of their clients (Chang et al., 2014). Women fall behind
men in retirement savings (Taylor et al., 2014; Hogg, 2009; Potrich et al.,
2015). In several impoverished ethnic categories, such as African American
women and Hispanics, women are typically more impoverished at retirement
than men are at retirement (Brown, 2012; Department of Health & Human
Services, 2011; Taylor et al., 2014). However, both men and women make
immature decisions with their retirement contributions (Taylor et al., 2014).
Therefore, financial advisors must determine risk tolerance of all genders.
Traditionally, men made most of the financial decisions for their
homes (Malone et al., 2010). Some women sacrificed their time to care for
the elderly, children, and their homes (Hogg, 2009; Malone et al., 2010;
Potrich et al., 2015). Women need to learn early to save for themselves
before helping others later in life (Hogg, 2009). Even though some women
depend on men to save, women need to take part in the financial decision-
making process because they tend to live longer than men (Durodola et al.,
2017; Kiliyanni & Savaraman, 2016). Therefore, marketers should
understand women’s financial well-being to understand women and finance
(Potrich et al., 2015).
Conceptually, women, as well as men, require financial literacy to
make the best financial decisions that will produce a financially secured
future (Potrich et al., 2015). To understand decision-making in families,
Malone et al., 2010 created two family categories to discuss financial well-
being: traditional and nontraditional families. The traditional family entailed
husband and wife or husband, wife, and all children of the first marriages.
The nontraditional families consisted of divorcees, single-parent families,
stepfamilies, and cohabitation. Malone et al. defined financial well-being as
a state of financial freedom, free from worries. Financial wellness included
subjective and objective measures such as income and long-term care
insurance. Financial literacy, in comparison, included an individual’s ability
to understand confidently basic economics, risk, financial management, and
financial tools (Nejad & O’Connor, 2016; Potrich et al., 2015).
Marketers need to understand the difference between men and
women’s levels of financial literacy (Kiliyanni & Savaraman, 2016; Potrich
et al., 2015). Women tend to have less financial knowledge about financial
situations than men do (Durodola et al., 2017; Malone et al., 2010).
For consumers to desire to access available financial advice and tools
from institutions or financial advisors, the institutions need to build trust
with their consumers (Calcagno et al., 2017; Durodola et al., 2017; Monti et
al., 2014). Some consumers do not believe that they always get the best price
for the products or services they purchase (Hayhoe et al., 2012). Hence,
financial services representatives need to show qualitative and quantitative
value in their services (Cummings & James, 2014). As more women work to
contribute to household finances, they branch into consumers of financial
products (Kiliyanni & Sivaraman, 2016; Malone et al., 2010; Potrich et al.,
2015). Therefore, financial services representatives should implement
strategic plans to sell to women by building a relationship of trust.
Women allow their social environment, education, and income to
influence their perceptions of financial well-being (Malone et al., 2010). As
with behavior economics (BE), people’s surroundings affect their attitudes
toward decision-making (Gordon, 2011; Knoll, 2010; Lachance, 2014;
Poulis et al., 2013). Women have a pertinent role in financial decision-
making because of the increase in the percentages of women being the
dominant financial contributors to their households (Kiliyanni & Sivaraman,
2016; Potrich et al., 2015).
Even though Malone et al. (2010) noted their limitations to their
quantitative research, they added to the literature of women concerning
financial well-being and filled in some gaps. Their limitations of the study
were (a) did not research ethnics groups, (b) did not research women under
30 and over 65, (c) did not research household incomes below $40,000, and
(d) did not choose a population from various work backgrounds. However,
Malone et al. recommended the conduction of research in those areas.
Malone et al.’s (2010) findings denoted that women in nontraditional
families were probably more realistic about their financial well-being
because they suffered hardship from single parenting, divorce, and lower
financial literacy. Malone et al. found that age, marital status, children,
education, and income were determinants of women’s financial security. In
general, understanding the value of financial advisors’ services increases as
people age, income increases, and educational level increases (Hermansson
& Song, 2016). By knowing these determinants, financial marketers may
influence women’s financial decisions for them to have adequate financial
well-being.
Women depended on education, financial literacy, and high incomes
to determine their financial well-being. From these variations, women with
lower household incomes and less education tend to be more conservative
with financial planning for retirement than women with higher household
incomes and more education (Lachance, 2014;
Malone et al., 2010). Hence, Malone et al.’s (2010) research is relevant to a
study of financial advisors adequately marketing to minorities to assist them
with financial retirement planning because some segments of minorities
have these diverse socioeconomic statuses.
Minorities’ Retirement Savings Challenges
Minorities such as African American women and Hispanics retiring
without financial sustainability is a problem because they might lose
spending power that would benefit businesses. With economic downturns
and a lack of vision for retirement, many impoverished retirees live in the
United States (Potrich et al., 2015). Specifically, some segments of
minorities lack knowledge and the vision for sufficient retirement savings
behavior. As a result, they may suffer from disproportionate rates of poverty
(Lachance, 2014). The disparity of some minorities retiring poorer than their
majority counterparts retired can negatively affect businesses that depend on
these women’s purchasing power such as money to buy businesses’
products. Some retired populations cannot contribute to businesses’ growth
because they are not financially prepared and do not have sufficient income
to purchase goods from the market.
Financial advisors and business owners should endeavor to support
minorities with financial savings tools in part because they comprise a
substantial portion of the workforce. In 2010, African Americans, 16 years
and older, were the only cultural group to consist of more employed women,
54.3 %, than employed men in comparison to European American women at
46.3 % (U.S. Department of Labor, 2011). Additionally, women represented
50.8 % of the U.S. population (U.S. Census Bureau, 2018). Because women
represent a substantial portion of the U.S. population, it is imperative that
businesses’ management team, such as financial services’ staff, develop
marketing strategies to gain the attention of women from all ethnic
backgrounds. Females’ purchasing power influence business growth.
Therefore, decreases in income from retired minorities can affect the
revenue of businesses that market to them because of reductions in sales.
The 2008 recession led to job loss, inflation, and a decline in
retirement investment savings (Butrica et al., 2012). Job loss, inflation, and
declines in investing are factors that affected retirement savings (Potrich et
al., 2015; Durodola et al., 2017). For instance, African American women
experienced disproportionate gaps in steady careers and salaries; this
equated to larger periods of unemployment and lower salaries in comparison
to their White counterparts’ salaries (Taylor et al., 2014; Weller & Hanks,
2018). African American women’s unequal salary distribution may be due to
inexperience, job loss, caregiving, and unfair pay from discrimination
(Brown, 2012). Financial advisors’ expertise in goal settings and financial
literacy can help minorities to overcome some of the barriers that influence
negative behaviors toward savings.
U.S. citizens, such as minorities, can receive the knowledge for proper
savings behaviors from educational and other financial resources used to
assist with decisionmaking. People need streams of resources and knowledge
to save effectively (Ellen et al., 2012; Mauldin et al., 2016; Lachance, 2014).
Financial advisors can promote financial tools to minorities so that they can
avoid the ill effects of economic mishaps (Mauldin et al., 2016). Financial
tools include retirement calculators, seminars, literature, and individual
consultations. Financial advisors’ marketing successfully to minorities can
assist them in adjusting to sufficient changes in savings’ behaviors; these
behavioral changes can help with overcoming barriers that prevent adequate
retirement preparation.
Impact of Salary and Benefits on Retirement Savings
As early as 2009, 55% of 62 million U.S. women did not have an
employersponsored retirement plan (Malhotra & Witt, 2010). Women face
the challenges of low salaries and increased medical expenses. In general,
people who face barriers to resources may not have savings accounts
(Mauldin et al., 2016). Therefore, women who do not have enough income
to pay for healthcare benefits and suffer from illnesses might find it hard to
save for retirement because of medical bills and a low amount of savings.
Employment status, salaries, and social security. In addition to low
income, women had employment gaps in their careers. Fewer women had
pension plans than men had because women transitioned through life as
homemakers and caregivers to employee statuses late in their lives (Hogg,
2009; Malhotra & Witt, 2010). Women’s low salaries and a shift from
employers’ sponsoring pension plans may have contributed to inadequate
funds for retirement preparedness (Hogg, 2009). Consequently, the Social
Security Administration used earnings to determine the monetary amount of
social security benefits for beneficiaries. Small social security benefits and
no additional income contribute to inadequate retirement preparedness.
Social security retirement age. The social security full retirement
age has increased for citizens born 1960 and later (Butrica et al., 2012). To
receive higher social security benefits, some citizens may need to work
longer before filing for their social security benefits (Gillen & Heath, 2017;
Sharma, 2015). However, a cap on social security income occurs several
years after the full retirement age (Butrica et al., 2012). The factors that
would assist the labor force with working beyond age 65 were education,
health, and the type of employment (Gillen & Health, 2017; Kim et al.,
2013; Kim et al., 2017; Kojola & Moen, 2016). For example, African
American women’s medical health tends to be worse than their White male
and racial minority counterparts’ medical health.
Women tend to live longer than men live (Kiliyanni & Sivaraman, 2016).
However, women’s health may hinder them from working until the full
retirement age and working longer than men work.
Transition
In the problem statement, I emphasized that some financial advisors
may not have effective strategies for marketing and influencing minorities to
purchase financial services’ products. Financial advisors may benefit from
the revenue generated from sales to minorities. A case study is necessary for
exploring financial advisors’ experiences and perceptions of marketing
financial planning services to minorities. Furthermore, financial advisors can
increase their knowledge of marketing strategies by understanding the
premises of CCT and TPB.
Financial advisors’ marketing strategies should include perspectives
from theories such as CCT and TPB to attract minorities such as African
American women and immigrants. Once financial advisors implement these
theories into their strategies for attracting minorities, financial advisors may
influence minority populations’ purchasing behaviors toward buying
financial services’ products and gain new prospects. According to Babiarz
and Robb (2014) found that most Americans felt prepared for retirement by
using financial planning services. If either their clients or new prospects do
not understand the benefit of purchasing services and products, marketers
will need to assist with changing their behaviors by appealing to them
culturally (Arnould & Thompson, 2005; Poulis et al., 2013). Marketers, who
implement perspectives from marketing theories, may improve their
strategies to sell their services to consumers within multicultural
communities.
In a review of the professional and academic literature, I researched
marketing strategies, theories that exemplify cultural and behavioral
changes, the importance of change to affect decision-making, and retirement
planning. Additionally, I found that gender, race, and socioeconomic status
might affect adequate retirement planning. To gain revenue from sales to
minorities, financial advisors might benefit from understanding the savings
and investment behaviors of potential clients by gender, race, culture, and
socioeconomic status. By implementing the results from my qualitative
research financial advisors could improve the marketing strategies of
financial advisors to minorities.
In Section 2, I expand upon the details in Section 1. Section 2 includes
the description of the project: role of the researcher, participants, research
method and design, population and sampling, ethical research, data
collection instruments and technique, data analysis, and reliability and
validity. I discuss how I will gain access to the participants for the study as
well as how I maintained an ethical relationship throughout the study. I
expand on the research and design method, and nature of the study.
Additionally, I provide details of my ethical process, data analysis technique,
and reliability and validity. After Section 2, I complete Section 3 by
providing an overview of the study, presentation of my findings, applications
to professional practice, implications for social impact, recommendations for
action and further study, reflections, and a conclusion of the study.
Section 2: The Project
Section 2 provides a summary of the qualitative case study used in the
study. Section 2 opens with the purpose statement, details regarding the role
of the researcher, and explanation of the data collection instrument and
techniques, data organization, and data analysis techniques. Additionally,
Section 2 includes details regarding the role of the participants, research
method and design, and population and sampling. For the accuracy of the
findings and protection of the participants, Section 2 includes the specifics
for reliability and validity and the basis used for ethical research such as the
participants’ rights and consent forms.
Purpose Statement
The purpose of this exploratory qualitative case study was to explore
the marketing strategies some financial advisors use for marketing
retirement planning services to minorities effectively. The targeted
participants consisted of financial advisors who had at least 3 years of
experience and had successfully marketed to minorities in the mid-Atlantic
region of the United States. Financial advisors’ successful marketing
strategies to minorities may lead to increased sales’ revenue for financial
planning businesses. Social change can result from exploring information for
financial advisors to implement effective marketing strategies to minorities.
Financial advisors’ use of the findings of this study may lead to positive
social change through minorities’ improvement in financial planning from
the use of financial advisors’ services. Additionally, financial advisors may
learn marketing strategies to promote multicultural sales awareness and
increase sales for their businesses because of their marketing strategies to all
populations.
Role of the Researcher
In the data collection process, as the researcher, I discussed the
marketing strategies of financial advisors to minorities. A qualitative
researcher must understand the lived experiences of their participants
(Moustakas, 1994). Therefore, I attempted to understand the experiences of
financial advisors who market to minorities.
I am a North Carolina and Virginia licensed insurance agent with an
MBA. Through my organization, I provide annuities, life insurance, health
insurance, Medicare health plans, and long-term care insurance to my
clients. I connected to the financial planning industry by providing services
such as insurance plans that financial advisors might not provide to their
clients. Having insurance plans plays integral parts in preventing financial
losses from diminishing retirees’ money saved for their retirement lifestyles.
My research contributes to an increase in the understanding of
financial advisors’ marketing strategies used to gain the business of
minorities who might otherwise not use financial advisors’ services. My role
in this research was to be the instrument for data collection, select and
interview the participants, and process the data. To mitigate bias, I kept my
mind opened to the participants’ life experiences and not my experiences
based on recommendations from research (see Anyan, 2013; see Rubin &
Rubin, 2012; see Tufford & Newman, 2012). Additionally, I used bracketing
to mitigate biases and any preconceived ideas (see Tufford & Newman,
2012). I used open-ended questions to interview financial advisors as the
participants. Interviewees were free to communicate their answers to open-
ended questions (see Anyan, 2013). I did not nudge the participants to sway
the answers.
I collected multiple data types such as interviews, documents, and my
observations of the participants. The convergence of data is necessary for
credibility (Baxter & Jack, 2008). Qualitative research entails subjective
answers to research questions (Kojola & Moen, 2016; Marshall & Rossman,
2016; Tufford & Newman, 2012). The interviews of the participants in
research are data collection instruments (Anyan, 2013; Stewart, Gapp, &
Harwood, 2017). It is necessary to gain the experiences of research
participants in their natural environments (Marshall & Rossman, 2016). To
explore the participants’ lived experiences, I addressed the participants in
interviews within their natural settings such as their offices but not their
home offices. Exploring participants’ experiences in their natural settings is
important for understanding their lived experiences (Marshall & Rossman,
2016).
Participants had the option to opt out of the study. I informed the
participants of their ethical rights. I followed the Belmont Report ethical
guidelines to protect human rights (Department of Health, Education, and
Welfare, 1979). For confidentiality purposes, I concealed the participants’
identities by securing data in a locked file cabinet in a secured facility away
from my residence.
Participants
Seven financial advisors from private and public firms served as
participants in the study. I requested documentation from the participants to
collect data for a case study (see Baxter & Jack, 2008). I conducted
interviews with financial advisors who used strategies for marketing
retirement planning services to minorities effectively. The participants had at
least 3 years of financial planning experiences. As participants, the financial
advisors’ characteristics aligned with the overarching research question to
denote that they have marketing experiences. Experienced participants are
necessary to share experiences (Marshall & Rossman, 2016). I gained access
to financial advisors from association meetings, business clubs, client
referrals, prospective client referrals, financial advisors, social media outlets,
and small financial planning firms.
To assure ethical protection, these financial advisors reviewed and
signed consent forms. Moreover, I established good relationships with the
participants. I followed examples like Anyan (2013) and Thomson, Petty,
and Scholes (2014), who provided clarity and established good relationships
with their participants; these actions helped to show integrity in protecting
their participants’ right to privacy. I abided by full ethical protection and
rights to privacy practices by providing clarity and establishing good
relationships with the participants. Additionally, I coded the results from the
interviews to protect the rights and identities of the participants (Department
of Health, Education, and Welfare, 1979). As an added measure of
protection, I stored files in a secured facility that will be stored for 5 years.
Research Method and Design
I used a qualitative research method with an exploratory case study to
broaden the knowledge of financial advisors’ marketing strategies to
minorities. A qualitative case study permits researchers to conduct
interviews (Anyan, 2013). Additionally, while conducting qualitative
research interviews, researchers observe participants in their natural settings
(Marshall & Rossman, 2016). I interviewed five participants in their natural
settings. From this research, I gained subjective data from primary sources
versus objective data that would allow me to generalize the reasoning for
financial advisors’ marketing ineffectively to minorities.
Research Method
A qualitative case study method was necessary to understand financial
advisors’ marketing strategies to minorities such as African American
women. A qualitative study was appropriate to explore experiences, such as
marketing strategies, versus a quantitative study that entails testing
hypotheses (Baxter & Jack, 2008; McCusker & Gunaydin, 2015; Moustakas,
1994). Qualitative research with firsthand data is pertinent to understand
participants’ real-life experiences (Denzin & Lincoln, 2011). Qualitative
case study methods involve the triangulation of data from a variety of data
sources to comprehend the context of a phenomenon (Baxter & Jack, 2008;
Fusch & Ness, 2015). Two phenomena to understand were minorities not
using the services of financial advisors to reduce poverty and financial
advisors not marketing to minorities to access new revenue.
Qualitative research with empirical data is necessary for
understanding the experiences of participants (Denzin & Lincoln, 2011).
Researchers understand that qualitative research is subjective to the
participants and that quantitative data is objective to research (Anyan, 2013;
Barnham, 2015). Qualitative research entails subjective reasoning and a
method to understand research participants’ lived experiences (Tufford &
Newman, 2012), whereas quantitative research entails objective reasoning
(Anyan, 2013). An understanding of financial advisors’ experiences is
subjective; therefore, I used a qualitative approach.
Even though I triangulated data, which may be objective and
subjective, I did not conduct mixed methods research. Mixed methods
research entails numerical and textual data (Anderson, 2010). Regarding
objectivity, quantitative methods involve statistical analysis to test
hypotheses (Baxter & Jack, 2008; McCusker & Gunaydin, 2015; Moustakas,
1994). However, in this qualitative research, I sought to understand financial
advisors’ experiences in their marketing strategies to minorities rather than
examining the findings from hypotheses. Regarding subjectivity, in-depth
interviews and the triangulation of data are necessary for the reliability and
the validity of this study (Anderson, 2010; Fusch & Ness, 2015).
Research Design
The purpose of employing an exploratory case study was to
understand financial advisors’ perceptions and experiences of their
marketing strategies that they implemented to reach minorities such as
African American women to improve their companies’ sustainability.
Qualitative case studies entail nongeneralized data or non-analytical
numerical results (Anderson, 2010). From the results of the study, I
addressed the shortfalls of some financial advisors’ marketing strategies to
minorities.
Upon selecting a research design, researchers implement the research
questions to determine the correct research method (Ellis & Levy, 2009;
Yin, 2014). The research question guides the study (Baxter & Jack, 2008;
Goodman et al., 2014; Yin, 2014). One research question guided the study:
What are the strategies some financial advisors use for marketing retirement
planning services effectively to minorities? Open-ended interview questions
consisted of financial advisors’ experiences with marketing strategies,
gaining trust in minority markets to generate revenue, and their perceptions
of minorities’ experiences with retirement planning.
The study’s findings contribute to research with effective financial
marketing strategies to minorities. An exploratory case study was the
appropriate design to the research regarding effective financial marketing
strategies to minorities such as African American women. Researchers use
qualitative case studies to conduct rigorous exploratory research (Baxter &
Jack, 2008). In this exploratory case study, I identified financial advisors’
decision-making processes for marketing to minorities.
I explored financial advisors’ marketing experiences with minorities.
All forms of communication, including nonverbal, are important to
understanding the participants’ experiences (Onwuegbuzie, Leech, &
Collins, 2010; Rubin & Rubin, 2012). The participants shared relevant
information and documentation of their marketing strategies and
demographic information regarding their current clientele. Additionally, the
financial advisors shared that having a diverse clientele has an impact on
their revenue.
In this exploratory case study, I converged multiple data sources into
themes from interviews and the triangulation of documents from the
participants. In a case study, the convergence of multiple sources is pertinent
for an exploration of data (Baxter & Jack, 2008). The information that I
found in the themes developed from the interviews with the participants
helped to determine saturation. Data saturation occurs when themes relevant
to research is repetitive with no new information forthcoming (O’Reilly &
Parker, 2013; Palinkas et al., 2013).
Research regarding participants’ experiences is necessary to provide a
deeper understanding of a phenomenon (Moustakas, 1994). Additionally, a
qualitative case study with the research from multiple angles is beneficial in
validating context (Baxter & Jack, 2008; Fusch & Ness, 2015). A qualitative
approach led to understanding how financial advisors marketed successfully
to some populations not prepared financially for retirement. Some
experiences shared were financial advisors’ thought patterns toward
marketing strategies to minorities and minorities not obtaining the assistance
of financial advisors. In this study, I used an exploratory case study to make
sense of financial advisors’ ineffectiveness in marketing to minorities.
An exploratory case study was appropriate to understanding financial
advisors’ marketing strategies to minorities to maintain their companies’
sustainability. A case study was necessary to share the decision-making
processes from professional management teams (Baxter & Jack, 2008). A
qualitative case study is subjective and provides an understanding of
decision-making processes (Barnham, 2015; Kojola & Moen, 2016).
Additionally, an exploratory case study helped with the validity and the
reliability of data from multiple resources regarding an organization (Baxter
& Jack, 2008). Other qualitative designs, such as phenomenology or
ethnography, were not appropriate to analyze marketing strategies.
In contrast to case studies, a phenomenological study entails an
exploration of participants’ lived experiences in a phenomenon (Marshall &
Rossman, 2016; Moustakas, 1994). The results from an ethnographic study
provide in-depth details of research from observations regarding the lives of
participants in their homes, work, and surrounding environments (Denzin &
Lincoln, 2011; Gordon, 2011; Yin, 2014). In this study, I did not provide
results from a phenomenological study or observations as an ethnographer
provides because I only needed to identify the participants’ professional and
marketing experiences.
Population and Sampling
The targeted participants consisted of seven financial advisors who
have successfully marketed to minorities in the mid-Atlantic region of the
United States. To meet the criteria in selecting participants, I determined
when the participants started their financial advising careers, the minorities
populations that they marketed to, the strategic marketing tools
implemented, changes in their minority customer base, and revenue changes.
I selected the participants from the financial advisors’ population because
not all financial professionals consult on retirement planning. I gained access
to financial advisors from association meetings, business clubs, client
referrals, prospective client referrals, insurance companies, financial
advisors, social media outlets, my office suite, and small financial planning
firms.
To understand participants’ environments, I conducted most of the
interviews in the participants’ offices and collected approved data to support
some of their answers. In a qualitative study, researchers tend to conduct
interviews in participants’ natural environments (Marshall & Rossman,
2016). From this population, I implemented purposeful sampling to obtain
seven financial advisors with at least 3 years of experience.
From one participant, I obtained a purposeful snowball sampling of one
referral. I discovered that interviewing seven financial advisors was a guide
to the saturation of data for an understanding of financial advisors’
marketing strategies to minorities. Saturation occurs when repetitive
information is relevant to the research, and no additional information is
forthcoming (O’Reilly & Parker, 2013).
Upon reaching data saturation, I determined the final number of
participants from my purposeful sampling. Researchers will use the
information that they find in the themes developed from the participants’
interviews to determine data saturation (O’Reilly & Parker, 2013; Palinkas
et al., 2013). I implemented a purposeful sampling from the financial
advisors’ industry to meet the criteria of the research. I conducted the
interviews in most of the participants’ office to understand their
environments.
Ethical Research
After I received approval on my proposal and permission to interview from
Walden University’s Institutional Review Board (IRB), I began my process
to collect data. I presented consent forms to the participants. I interviewed
financial advisors who qualified to be participants of the research of
financial advisors’ marketing strategies to minorities. To assure ethical
protection, these financial advisors reviewed and signed consent forms.
I used the consent form as an invitation and agreement for
participation in the research. I informed the participants of their ethical
rights. Participants had the option to opt out of the study by contacting
Jonica Rowland, Dr. Leilani Endicott, Walden
University representative, or Walden University research participant
advocate line. For integrity, I provided clarity and maintained trustworthy
relationships throughout the study.
Anyan (2013) and Thomson et al. (2014) noted that providing clarity
and establishing good relationships with participants helped to establish
integrity in protecting their participants’ right to privacy. Therefore, I abided
by full ethical protection and rights to privacy practices. I followed the
Belmont report ethical guidelines to protect human rights (Department of
Health, Education, and Welfare, 1979). To protect each participants’
identity, I named them by a code, such as P1 and P2. For confidentiality
purposes, I concealed the participants’ identity by securing data in a locked
file cabinet in a secured facility away from my residence; after 5 years, I will
destroy the data.
Regarding incentives for participants’ participation, I provided no
incentives for participation. However, I offered the participants a two-page
summary of the conclusive results. Additionally, I offered the participants a
verbal presentation regarding the results of the study in a private meeting for
their participation.
To provide professional and ethical interviews, I maintained an
unbiased approach in the interviews by transcribing participants' responses
accurately to interview questions as stated. To learn of the participants’
experiences, researchers must conduct the interviews without preconceived
notions (Rubin & Rubin, 2012; Tufford & Newman, 2012). Hence, I did not
nudge to sway answers.
Data Collection Instruments
After IRB approval, I collected data. I was the primary data collector.
Researchers are the primary data collectors (Tufford & Newman, 2012; Yin,
2014). I conducted a qualitative case study of financial advisors’ marketing
strategies to minorities. Purposeful sampling is feasible for selecting
participants in a case study (Baxter & Jack, 2008; Palinkas et al., 2013). In
this qualitative case study, I conducted a purposeful snowball sampling
process by locating qualified participants through association meetings,
business clubs, client referrals, prospective client referrals, financial
advisors’ referrals, social media outlets, my office suite, and small financial
planning firms.
As a data collection instrument, I conducted semi-structured
interviews with seven participants to obtain primary data. Researchers use
interviews as research tools (Anyan, 2013; Stewart, Gapp, & Harwood,
2017). For secondary data, I used participants’ data and their companies’
documentation. For rigorous research, data may be collected from multiple
sources (Baxter & Jack, 2008; Palinkas et al., 2013).
I enhanced the reliability and validity of the data collection
instruments, such as interviews, by reviewing audios recordings and
implementing triangulation of data. Triangulation of multiple data sources is
necessary for the validity of research (Baxter & Jack, 2008; Fusch & Ness,
2015). Additionally, I followed a case study protocol (see Appendix A).
Researchers need to follow a protocol to implement the validity and
reliability of the study (Yin, 2014).
Data Collection Technique
Before collecting data from the participants, I presented a letter of
consent to allow them to understand their rights in the study. I included in
the letter of consent their rights to withdraw from the study at any time.
When the participants agreed by signing the consent form, I proceeded with
the case study protocol (see Appendix A).
Financial advisors were the participants in the study. I identified the
experiences of financial advisors’ marketing strategies to minorities by
asking open-ended questions and reviewing their business documents
regarding their current and potential clients’ demographic data. I continued
interviewing until I achieved data saturation. Data saturation occurs when no
new information emerges during the interviews, and no new theme emerges
from the data analysis of the interviews and data collection (O’Reilly &
Parker, 2013; Palinkas et al., 2013). When necessary, I followed up with the
participants for additional data. I offered member checking to the
participants in the study. However, the participants did not think member
checking was necessary because they provided clarity of their responses
during the interviews.
I conducted semistructured interviews as one of my data collection
methods. Interviews are a method of data collection (Anyan, 2013; Tufford
& Newman, 2012). To further the interview process of this case study, I
interviewed seven participants by asking all participants the same interview
questions. I interviewed until I reached data saturation, whereas no new
information emerged. As additional information, I determined if the
participants marketed to minorities, the categories of minorities, the strategic
tools implemented, and changes in their minority customer base.
To understand their environment, I conducted most of the interviews
in the participants’ offices and collected approved data to support their
answers. In a qualitative study, researchers tend to interview participants in
their natural environments (Marshall & Rossman, 2016). For an in-depth
qualitative case study, I allowed the participants to share their experiences
without steering answers to the interview questions. Mitigating bias and
avoiding nudging are important for valid research (Ayan, 2013;
Moustakas,1994; Yin, 2014).
During the semistructured interviews, I asked the open-ended
interview questions and transcribed the answers verbatim. For accuracy, I
allowed members to review transcripts of their interviews. When I followed
up with the participants for additional information, I offered the opportunity
for member checking. For validation purposes, allowing participants to
verify interpretations of their responses is a form of member checking for the
participants to validate their answers (Anyan, 2013; Baxter & Jack, 2008;
Birt, Scott, Cavers, Campbell, & Walter, 2016). When the participants
provided additional information, I transcribed it and signified that it was
additional information. Additionally, from the interviewed sessions, I
recorded observations of the participants’ body gestures and their
environment.
In qualitative case studies, the advantages of implementing interviews
in data collection techniques are (a) an understanding of the experiences of
the participants; (b) a clear in-depth study for validity, reliability, and
authenticity; and (c) an allowance of the participants to answer questions
openly (Baxter & Jack, 2008; Onwuegbuzie et al., 2010). The disadvantages
of interviews in a qualitative case study are that the interviewees (a) may not
complete the study, (b) may not provide all the pertinent data, or (c) might
not cooperate by disclosing truthful answers (Anyan, 2013; Tufford &
Newman, 2012). During the interviews, I remained unbiased to allow the
participants to answer the openended questions freely.
Because the purpose of the study was to determine how at least one
firm has marketed successfully to one or more segments of minorities, a
pilot study was not necessary (Almirol et al., 2016). I relied on
methodological triangulation of the data collection methods to complete my
research. Triangulation of multiple data sources is necessary for the validity
of research (Baxter & Jack, 2008; Denzin & Lincoln, 2011; Fusch & Ness,
2015). Regarding triangulation, I converged multiple data sources into
themes from the interviews and triangulated the data with documents from
the participants’ business data.
I used open-ended questions as a data collection technique for
interviews with the participants in their natural environments. Additionally, I
collected data from participants’ documented data of their current clients and
potential clients’ demographics. I found that the data collection methods in
the existing research of retirement preparedness to be consistent but limited
on research regarding financial advisors’ relationships with marketing
populations. In a case study’s data collection methods, a triangulation of data
from multiple sources such as interviews and participants’ business data is
essential to understanding a phenomenon (Baxter & Jack, 2008; Denzin &
Lincoln, 2011; Yin, 2014). The participants’ business data included
participants’ company data that measure business revenue, demographics,
and marketing sources.
Data Organization Technique
Data organization is important to qualitative research for reliability
and validity purposes. I kept track of data and emerging understandings via
research logs and labeling systems. Additionally, to protect the participants
and the integrity of the study, I secured files in a locked file cabinet at a
secured location to be stored for 5 years from the date of
Walden University’s doctoral committee approval of my study. The hard
copy files contained the data collected from the interviews, the protocol
checklist, the completed informed consent forms, and the transcripts.
For identity protection, I stored each coded participant’s electronic
data on a password-protected computer. After 5 years, I will destroy the data
collection. Additionally, for backup protection, I uploaded the electronic
data to a passwordprotected cloud like a Google Drive. I assigned codes to
the participants’ files to protect their identity.
I used Microsoft Office to organize and store the data. I did not record
any personal information. For identity protection, I coded the participants’
identities with labels such as P1and P2. and coded any corresponding
documents with codes such as P1D1 and P1D2. All electronic data will
remain in a password-protected electronic folder to ensure that the
participants’ identities are kept confidential; I will destroy the data after
5 years.
Data Analysis
The purpose of the qualitative case study was to identify financial
advisors’ marketing strategies to minorities to generate revenue for their
businesses. I used Yin’s (2014) five steps in data analysis: compiling,
disassembling, reassembling, interpretation, and conclusion. Following
completion of all audio-recorded interviews, I transcribed the interviews,
proofread the texts, and highlighted vital information. The initial reviews
provided the foundation for a more thorough review to separate quotes into
categories and themes using Nvivo Pro 11. I used Nvivo Pro 11 to follow
Yin’s five steps for data analysis. Anderson (2010) recommended that
researchers maintain an open mind while analyzing, comparing, and
explaining data. Therefore, the reduction of data into relevant quotes with
common themes allowed interpretation of the information presented by
participants.
I derived themes and strategies based on the participants’ responses to
the interview questions, explanations of their individual experiences, and
information garnered from the literature review (Anderson, 2010). Using
Nvivo Pro 11 permitted organization and storage of enormous amounts of
data. The software was useful in (a) creating codes, categorizing themes, and
strategies; (b) identifying, searching, and retrieving data; (c) making
comparisons and identifying variations; (e) mapping themes and strategies;
and (f) creating relevant tables (e.g., lists of keywords) and graphical models
or diagrams (Hutchison, Johnston, & Breckon, 2010).
I triangulated the interview data with the demographic data of the
participants’ clientele to understand the phenomenon of the study (see
Baxter & Jack, 2008). I implemented methodological triangulation of data to
complete my data analysis (see Fusch & Ness, 2015; see Jespersen &
Wallace, 2017). Additionally, I used data triangulation to converge data
from various sources to widen the understanding of the phenomenon and
experiences of the participants (see Baxter & Jack, 2008; see Fusch &
Ness, 2015; see Jespersen & Wallace, 2017).
The focus of this research was financial advisors’ marketing strategies
to minorities. The research question of this qualitative case study was what
are the strategies some financial advisors use for marketing retirement
planning services effectively to minorities? The interviews were
semistructured; the open-ended questions were as followed:
1. What experiences do you have in marketing to a variety of
populations in the marketplace?
2. To which specific minority population have you attracted
successfully as customers through your marketing strategies?
3. What populations do you plan to market to outside of your current
categories of populations?
4. What marketing tools do you perceive to be effective in selling
financial planning services?
5. What strategic tools do you implement for your marketing
strategies that would affect minorities?
6. What marketing strategies do you perceive to be effective in
selling financial planning services?
7. What financial impacts have you experienced from marketing
successfully and demographically to minorities for retirement
planning services?
8. What percentage of minorities contributes to your revenue?
9. What financial literacy tools do you find beneficial for financial
advisors and minorities to capture the sale of financial services’
products?
10. What other information would you add to our interview discussion
of financial advisors’ marketing strategies to a variety of
populations?
For validity and reliability purposes, I bracketed the data and relied on
audio recordings of the participants’ interviews. Bracketing mitigates biases
(Tufford & Newman, 2012). When qualitative researchers bracket their
interview sessions with their participants, they will attempt to leave out their
preconceived notions and prior experiences to explore the participants’
experiences for validation (Tufford & Newman, 2012). Therefore, I included
information relative to my study.
The qualitative researcher is the data instrument and the analyzer
(Stewart, Gapp, & Harwood, 2017; Tufford & Newman, 2012). Researchers
understand that qualitative research is subjective to the participants and that
quantitative data is objective to research (Anyan, 2013; Barnham, 2015).
Therefore, I am the data instrument and analyzer.
From the research data collected, I used Nvivo Pro 11 to analyze the
participants’ experiences and to detect themes and strategies. I used Nvivo
Pro 11 to explore patterns, themes, and strategies from the interviews.
Additionally, I determined data saturation from the patterns and themes.
Data saturation occurs when the results of the patterns and themes
continuously repeat, and no new data arises (O’Reilly & Parker, 2013;
Palinkas et al., 2013). I used Nvivo Pro 11 to determine data saturation or
the need to complete additional interviews with the existing participants.
I determined how the themes converged with the conceptual
framework of the study. The conceptual framework supports the study
(Baxter & Jack, 2008). The conceptual framework is CCT.
For reliability and validity of the study, I collected the participants’
company data as a source of evidence (Yin, 2014). The data consisted of the
participants’ companies’ records and other documentation that the
participants could disclose compliantly. Then, I analyzed the documents by
coding according to specific themes and strategies.
An analytical strategy is necessary to guide the research (Yin, 2013).
To analyze the research data, I combined the participants’ answers to the
interview questions, the study’s conceptual framework, and literature review
to form themes and patterns. In a case study research, themes and patterns
may explain the how and why of the phenomenon (Baxter & Jack, 2008;
Yin, 2014). Additionally, qualitative data from research may aid in
interpreting and analyzing the behavior of the participants (Palinkas et al.,
2013). Hence, I used data triangulation to support the validity of the research
(Baxter & Jack, 2008; Fusch & Ness, 2015; Yin, 2013).
Reliability and Validity
Reliability
Asking clear and unbiased questions determines the quality and
reliability of the data (Onwuegbuzie et al., 2010). Reliability and validity
require vigorous research and data source triangulation (Yin, 2013). I
established an interview protocol to have dependability (see Appendix A).
To assure dependability, I applied the same interview protocol with each
participant along with a rigorous procedure to maintain documentation of
observations, interviews, audio tapes, and triangulation of data. In
interviews, all forms of communications, such as body gestures, are
important to understanding the experiences and perceptions of the
participants (Onwuegbuzie et al., 2010; Rubin & Rubin, 2012).
Validity
To ensure a reliable and valid research, data triangulation using
multiple resources is necessary for the quality and the validity of the
research (Baxter & Jack, 2008; Denzin & Lincoln, 2011; Fusch & Ness,
2015). As a contribution to research, I enhanced transferability by
documenting multiple resources accurately for this study. Ellis and Levy
(2009) suggested that researchers could use data that may contribute to
qualitative research with a collection of data from qualitative resources
including interviews.
For credibility, I allowed the participants to view the transcript as a
transcript review. When I followed up for additional information, I extended
the opportunity for member checking for the participants to verify that I was
interpreting their responses as their desired interpretation. Member checking
is necessary for credible research (Baxter & Jack, 2008; Birt et al., 2016).
Triangulation is necessary for credible research as well (Baxter & Jack,
2008). To address confirmability, I obtained the sources of documented data
from reliable sources such as company data and compared it with other
reliable sources. Using multiple sources as a form of record audit will
provide quality data for the accuracy and justification of qualitative research
(Denzin & Lincoln, 2011; Yin, 2014). As data analysis display nonrecurrent
themes and research interviews contained no new data, I reached data
saturation in my qualitative study. Saturation may lead to reliability and
validity (O’Reilly & Parker, 2013).
Researchers observe the parameters such as resources for the study
(Yin, 2013). Therefore, I approached human subjects for study by knowing
the facts about them, by using a code of conduct, being ethical, developing
rapport, and building trust to gain permission to collect information during
the interviews (Department of Health, Education, and Welfare, 1979). A
good researcher would complete the study by exploring resources to assure
the reliability and the validity of the study.
Transition and Summary
The purpose of this case study was to identify financial advisors’
strategies for marketing retirement planning services to minorities. A
qualitative case study was necessary to be aware of marketing strategies that
financial advisors use to attract minority populations for the sales of
financial services. I used a methodological triangulation of data, including
interviews and research data. The results from this study may add to the
research of financial advisors’ marketing strategies to minorities such as
African American women.
In Section 3, I provide an overview of the study. Section 3 includes
the presentation of the findings, applications to professional practices,
implications for social change, recommendations for action and further
study, reflections, and a conclusion.
References follow Section 3.
Section 3: Application to Professional Practice and Implications for
Change
Introduction
The purpose of this exploratory qualitative case study was to explore
the strategies that some financial advisors used for marketing retirement
planning services to minorities effectively. The participants came from a
purposeful sample. The targeted participants consisted of experienced
financial advisors who have successfully marketed to minorities in the mid-
Atlantic region of the United States.
The conceptual framework of this study included CCT. The basic
premise of CCT is that marketing requires knowledge of consumers’
spending and their identity (Arnould & Thompson, 2005). The conceptual
framework aligned with the research question: What are the strategies some
financial advisors use for marketing retirement planning services effectively
to minorities? From the research question, I developed 10 interview
questions. The participants shared relevant information and documentation
of their marketing strategies and demographic information regarding their
current clientele. I triangulated the data derived from the interviews with
documentation provided by the participants.
The focus of this research was financial advisors’ marketing strategies
to minorities. The results of this study added to research by providing the
experiences that financial advisors had from their marketing strategies.
Section 3 covers the following topics: (a) presentation of the findings, (b)
applications to professional practice, (c) implications for social change, (d)
recommendations for action, (e) recommendations for further research, (f)
reflections, and (g) the conclusion.
Presentation of the Findings
The purpose of this qualitative case study was to explore the strategies
that some financial advisors used for marketing retirement planning services
to minorities effectively. Research participants consisted of financial
advisors in the mid-Atlantic region of the United States. I conducted
interviews with financial advisors of small business practices to understand
their marketing strategies to minorities. I used the following research
question to guide the study: What are the strategies some financial advisors
use for marketing retirement planning services effectively to minorities?
I used data collected from the participants’ interviews to understand
the strategies that some financial advisors used for marketing to minorities.
The participants provided me with limited amounts of their company data
that I needed to triangulate my interview data in detail. The financial
representatives must comply to financial services industry’s constraints from
government regulations due to the 2008 economic failures (Adrian, Covitz,
& Liang, 2015).
Financial advisors were reluctant to provide company data.
Furthermore, financial advisors do not ask clients for letters of
recommendation. However, I triangulated documents from resources that I
located via participants’ business websites, company websites, marketing
platforms, events that I attended, and materials posted in their offices. The
participants permitted me to interview them in their natural environments
where they normally meet with their clients. Gaining the experience of
research participants in their natural environments is important (Marshall &
Rossman, 2016), I conducted five of the interviews in the participants’
offices. I conducted the other two interviews at public restaurants.
Six of the seven participants allowed me to audio record the
interviews. The participants answered 10 open-ended questions during the
interviews (see Appendix B). Five of the seven interviews lasted
approximately 30 minutes. Regarding the one unrecorded interview, I
repeated the responses back to the participant and asked additional questions
for clarity. One of the interviews lasted approximately 45 minutes. One of
the interviews lasted approximately 15 minutes. For the validity of the
results, I asked the participants to clarify their answers by reviewing their
responses. After my data analysis, I offered member checking. In case of
audio failure, I wrote detailed notes of participants’ answers. Later, I listened
to the audio recordings to capture voice intonations and words I missed
while writing their answers to the interview questions.
The conceptual framework for the study was CCT. The basic premise
of CCT was that marketing requires knowledge of consumers’ spending and
their identity (Arnould & Thompson, 2005). Using CCT assisted me in
understanding how to apply field research to my study. I used CCT to
understand strategies and to explore the financial advisors’ perceptions and
experiences in marketing to minorities. Case study research was appropriate
for exploring strategies with an in-depth and comprehensive approach (see
Yin, 2014). While using CCT as my conceptual framework, I was able to
explore the marketing strategies that financial advisors implemented for
marketing to minorities effectively.
I used semistructured interviews and included open-ended questions to
capture the experiences of seven participants. I transcribed the interviews
from the six audio recordings and my handwritten responses from those six
participants. One participant did not allow audio recording. Therefore, I
relied on my handwritten responses from the participant. I reviewed and
organized the data; then I imported the data into the Nvivo
Pro 11. After analyzing the data, I discovered emergent themes and
strategies (see Table 1). The emergent themes regarding marketing strategies
included (a) building a referral system, (b) hosting events, (c) implementing
community involvement, (d) knowing minorities’ behavioral language, (e)
providing financial literacy tools, and (f) maintaining effective marketing
strategies.
The findings of the six themes supported the perspectives of CCT, the
conceptual framework of the research. Arnould and Thompson (2005)
developed CCT from their research of a variety of theories that they used to
understand the relationship of consumers’ consumptions of products and
services relevant to their culture and the market. Three of the perspectives in
CCT relevant to this research are (a) consumer identity theory, (b) cultural
capital theory, and (c) authenticity theory.
According to consumer identity theory and cultural capital theory,
consumers want products that relate to and identify with their lifestyles
(Özsomer & Altaras, 2008). From the perspectives of consumer identity and
cultural capital theories, Arnould and Thompson (2005) found the need to
understand consumers’ behavioral patterns toward product consumption.
Marketers must comprehend consumers’ cultures to develop marketing
strategies to be able to sell to heterogenic cultures (Arnould & Thompson,
2005; Cossío Silva et al., 2013; Petersen et al., 2015).
From the perspective of authenticity theory, in CCT, an invitation
exists for consumers to desire a product that is synonymous with their
lifestyle (Arnould & Thompson, 2005). Before adopting a change in their
lifestyle, consumers need to believe financial advisors’ reasoning to market
financial planning services to them. Authenticity theory is about consumers
believing in the indexical authenticity of the originality of a product or
service (Özsomer & Altaras, 2008). Therefore, financial advisors should
gain consumers’ interests for financial services by authenticating a
relationship of sincerity and trustworthiness (Calcagno et al., 2017; Monti et
al., 2014). For example, P1 said, “I build on the foundation of trust because
of the intimate questions. Financial relationships are built on trust.”
The first interview question allowed me to probe the financial
advisors’ industry experiences such as their licenses and educational
background. The participants have their college degrees; securities licenses;
and life, Medicare supplement, and long-term care insurance licenses.
Although a college degree was not a requirement for participation in the
research, financial advisors must have their licenses to practice in their
industry. Additionally, to take part in this study, financial advisors needed at
least 3 years of financial advising experience. The participants’ years in the
financial advising industry ranged from 7 to 25 years. The participants had
limited calendar space for the interviews. However, the participants allowed
me to gauge and understand their marketing experiences in their industry.
Emergent Theme 1: Building a Referral System
Theme 1 revealed that financial advisors should have a referral system
to maintain a continuous flow of loyal customers. For example, P2 revealed,
“Referrals or just developing close enough relationships with your clients
that they be willing just to hand your name off when some things come up is
the best.” Financial advisors have to understand their market to gain
referrals. One perspective of CCT is that consumers must believe that
services are authentic (Özsomer & Altaras, 2008). Financial advisors should
demonstrate that they have their prospective customers’ best interests as a
priority. As a measure to gain referrals, P2 argued, “You got to meet those
people first, and you can get the referrals.” All participants had a customer
referral system that they generated to keep a continuous flow of loyal
customers.
The participants built their referral systems by inviting prospective
clients to events such as financial educational seminars, educating their team
of professionals, and providing excellent customer service. Usually,
participants promoted the marketing of their events through posters
displayed in their offices, flyers passed out at community and networking
events, and on eventbrite.com or other invitational platforms. Regarding
implementation of the referral system, P6 explained, “That means my
strategies are just to get referrals [sic]. So, if I am talking to a three, I got to
help him to refer me to the 10.” Financial advisors look for desirable
clientele as well (Babiarz and Robb, 2014). For referrals and building
relationships, P6 used qualification levels to rank niche clients for financial
advisors. The participants built their referral system from the relationships
with their team of professionals and loyal customers. P4 said, “There is no
marketing strategy in place other than they share my name with their friends
and relatives. It is a referral system.”
Financial advisors need to build customer loyalty for referral business
and cross sales. P2 acknowledged, “I think if you can equip them with the
right not necessarily material but just them having a good understanding of
what you do and to talk to a client about it.” According to CCT, to enter a
heterogenic market, businesses need some knowledge of three perspectives:
(a) consumer identity theory, (b) cultural capital theory, and (c) authenticity
theory (Arnould & Thompson, 2005).
According to consumer identity theory and cultural capital theory,
consumers want products that relate to and identify with their lifestyles
(Özsomer & Altaras, 2008). Financial advisors should relate to their
customers by understanding their needs. Regarding authenticity theory,
marketers view this theory as an assessment of consumers’ perception of
products and services (Arnould & Thompson, 2005; Özsomer & Altaras,
2008). A challenge in relating to prospective customers is that some
consumers do not believe that they always get the best price for the products
or services they purchase (Hayhoe et al., 2012). Financial advisors need to
convince consumers of the value of their services. Marketing is a strategy to
appeal to consumers by revealing valuable products or services to exchange
for money (Webster & Lusch, 2013). Therefore, financial advisors should
identify with their customers by proving authenticity and identifying with
their lifestyles.
Satisfied customers may be loyal customers, and customer loyalty is
necessary for an adequate referral system. Kumar et al. (2013) found that
customer loyalty does not automatically create a profit unless coupled with
quality sales performance. Quality sales performance relies on business
leaders’ knowledge of their customers’ expectations
(Guesalaga et al., 2016). Understanding consumers’ identity is a necessity
(Arnould & Thompson, 2005). P1 explained, “Clients have to know you and
trust you. I build on the foundation of trust because of the intimate
questions.” Additionally, customer loyalty contributes to the success of
businesses.
Building a referral system and gaining loyal customers may require
more than a traditional approach. Business leaders of financial advising
firms may need to market to a variety of populations versus the standard
approach of reaching the White male. Business leaders cannot rely on a
standardization approach toward different demographic and psychographic
populations (Guesalaga et al., 2016; Kumar et al., 2013). An adaptation
strategy to reach various populations may increase customer loyalty (Kumar
et al., 2013). Hence, a standard approach to a diverse population may not be
feasible. The way for financial advisors to enter new consumers’ markets is
through introductions by loyal customers or professional associates.
A challenge to building relationships is that some consumers do not
believe that they always get the best price for the products or services they
purchase (Hayhoe et al., 2012). Consumers want validation from reputable
resources. Financial advisors need to convince consumers of the value of
their services. Marketing is a strategy to appeal to consumers by revealing
valuable products or services to exchange for money (Webster & Lusch,
2013).
To build a sustainable referral system, financial advisors should ask
for assistance from their loyal customers and their professional associates;
creating this collaborative team is similar to having a marketing team. P2
explained, “I offer that from day one is finding those people like your CPA,
and then your attorney; and it might take a few to see who clicks with you.”
P2 continued, “I have a CPA and an attorney that I have been using for the
last 5 years and they are 100% loyal to me, and I am 100% loyal to them.” A
collaborative team of professionals and customers can help to convince
consumers of the value of the financial services that they need to purchase.
Business representatives will have to sell the value of their services before
customers will buy them (Cossío Silva et al., 2013; Guesalaga et al., 2016;
Webster & Lusch, 2013). Hence, financial advisors should help the
prospects understand the value of financial planning services.
To help diverse populations understand the value of financial planning
services, financial advisors should build quality relationships. Financial
advisors need to develop strong client relationships by focusing on the
qualitative side of their relationships and not just the quantifiable side of
their relationships (Cummings & James, 2014). According to P2 and P7,
financial advisors build their team of professionals, the centers of influence,
from several industries, such as attorneys, accountants, and CPAs.
Immigrants and minorities tend to depend on their circles of influence for
referrals as well. For instance, immigrants in Canada depend on their circle
of influence to provide information for them to settle down (Durodola et al.,
2017). According to segmentation theory, customers have diverse needs for
services (Cossío Silva et al., 2013). Therefore, the need to build a team of
professionals from diverse populations and business industries to maintain a
referral system is necessary to meet new clients.
Several of the participants called the professionals in their referral
systems centers of influence. The professionals in the centers of influence
count on each other for referrals. Financial advisors should educate their
centers of influence about the types of clients they need. Five of the
participants (P2, P3, P4, P5, & P7) explained that as their referral system
becomes diverse, customers and centers of influence refer minorities. P2
remarked, “But at that rate, I think your center of influence will pretty much
be the only sales force you would ever need.” However, financial advisors
would need to educate their centers of influences. According to P7,
“Advisors must educate their centers of influence regarding a financial
advisors’ responsibilities.” P7 continued by saying, “It’s simply a matter of
building a network of referral resources.” Building a network of referral
sources is important for a sustainable customer base (Cummings & James,
2014).
If clients educate consumers of financial advisors’ responsibilities,
clients and prospects might provide referrals even if they are not a client or
purchased all of the services that they need. P6 said, “If a prospect is not a
client, the prospect would know a referral who needs the services of a
financial advisor.” Out of their goodwill, financial advisors may offer
financial literacy help to those who may not be able to afford their services.
P5 said, “Sometimes all I do is help them with a budget or something; there
is no money there to do anything.” However, P6 said, “Everyone knows
what I consider a 10, 10 being the perfect client. So, if I am talking to a
three, I got to help him to refer me to the 10.” Therefore, according to CCT,
showing authenticity may help businesses enter the heterogenic marketplace
(Arnould & Thompson, 2005). Financial advisors’ collaboration with
consumers and professionals may lead them to a continuous flow of
referrals.
Emergent Theme 2: Hosting Events
Hosting events is an avenue that some financial advisors use to
acquire new customers and referrals. P2 argued, When you first get started,
you have to do something you can’t just sit and twiddle your thumbs and
wait for the phone to ring. You have to be out there doing something to
reach people. It’s the nature of the beast. The events that the participants
held consisted of seminars or luncheons that covered financial literacy topics
such as social security awareness and long-term care planning that would
draw potential clients to their events. Financial literacy is beneficial in
understanding the need for financial products and services (Durodola et al.,
2017). Additional activities consisted of community events such as offering
child ID kits and fundraisers such as walks for a cause. P5’s firm supports
events and causes with organizations that help children; additionally,
financial advisors list these causes in their e-mail signatures, promote the
causes on social media, and display them in their offices. Financial advisors’
who host events and have effective communication systems might gain new
clients from their philanthropic efforts.
Financial advisors hosting events or participating as vendors at trade
shows might have exposure to some minorities. P2 explained, “Yes, I mean
because that’s how several of my minorities came because of those events or
maybe they weren’t that first line, but because I went to that event I met
somebody who introduced me to someone.” According to P2, P3, and P7,
financial advisors tend not to have total control over what populations would
show up at their events or vendor events unless those events were at a church
or in a segregated location. However, financial advisors have to market
themselves in a variety of venues to gain clients such as minorities.
Participants expressed that they have to market to establish a customer
base continuously. Regarding knocking on doors or hosting events, P7
explained, “By and large you do not have any control, of who is behind the
door.” However, P2 argued, “Newbies have to do something to get started.”
P2 referred to new advisors as newbies. Additionally, P2 explained that
when she was a new advisor, she would host seminars and participated as a
vendor at trade shows and conventions. P2 argued, “I think it ultimately pays
off and you will get the sale.” Additionally, P2 emphasized, “We do like a
lot of educational seminars which is really opened to anyone who would like
to come; they do not have to be a client we usually do not broadcast it out
because we don’t have the capacity.”
Hosting events is an avenue for financial advisors to market their
services. Moreover, financial advisors may gain new minority clients and
receive new referrals as clients from hosting events. Financial advisors do
not have much control over who shows up at their events; however, if they
do not market, they may not gain new clients.
Emergent Theme 3: Implementing Community Involvement
Community involvement relates to CCT as the conceptual framework
of this study. Business owners who market ethically to an untapped segment
will benefit from sales to that new segment of the population (Gupta &
Pirsch, 2014). P3 stated, “I think a lot of people in the African American
community just simply have not been educated on the products as much.”
Financial advisors can promote financial tools to minorities so that they can
avoid the ill effects of economic mishaps (Mauldin et al., 2016). Financial
tools include retirement calculators, seminars, literature, and individual
consultations. Consequently, business owners will create a social impact on
their communities by supplying community members with essential
resources for living (Gupta & Pirsch, 2014).
Aligning with CCT, members of the business community may learn
the value of marketing to heterogeneous populations instead of solely
marketing to homogeneous populations (Arnould & Thompson, 2005;
Guesalaga et al., 2016). Heterogeneous populations consist of a combination
of having the traditional clientele such as White males and minorities such as
African Americans, Hispanics, and immigrants. When business leaders have
changes in the demographics of their customer base, businesses leaders can
inherit changes in revenue from having diverse groups of customers
(Guesalaga et al., 2016). Marketers must understand consumers’ behavioral
patterns toward product consumption to reach all segments of the U.S.
population (Arnould & Thompson, 2005).
For consumers and financial advisors to benefit from their business
relationships, financial advisors need to balance community involvement
with the profitable aspect of their business. For example, P5 explained,
“Sometimes all I do is help them with a budget or something; there is no
money there to do anything. But, I don’t try to go out after those kinds of
people because I will be broke.” However, P5 does see the value in
marketing to diverse groups. Additionally, P5 markets by using concepts as
strategies. P5 explained, “I am always available to anybody, right, that’s
relative. Up to about 4 years ago, I started to I try to be more intentional with
what I am prospecting for, but I still will not turn anybody away.” When
community involvement is balanced correctly, goodwill may pay off with a
profit from corporate social responsibility. Community engagement is a type
of corporate social responsibility (Martin & Finke, 2014). While in P7’s
office and attending a networking event, I had the opportunity to view
documents such as flyers of a charitable event for an incurable disease.
Additionally, I had the opportunity to view materials of P4 participating in
community events with family and contributing time to fundraisers
regarding children. P5 actively participates along with his company by
contributing to organizations that provide therapy to reduce depression in
children. Additionally, P5 and P7 participate in civic organizations. P1, P3,
P4, P5, and P7 are in photos with collaborative partners and at financial
literacy presentations held at community events. P6 advertised in minority
publications. P2, P3, P4, P5, and P7 have web pages and social media pages
to offer complimentary financial literacy information.
P1 is the only participant without a business social media page
because of company compliance. However, P1 recommends that financial
advisors host social media marketing pages if permissible by their
companies. Additionally, P1 and her company contribute grants and
financial resources to their community; this information is on the company’s
websites.
Participants’ community involvement appeared to have proven to be
worthwhile with business and social impacts. Attendees who attend
community involvement events tend to learn that financial advisors care
about their communities. Therefore, financial advisors may gain new sales.
Emergent Theme 4: Knowing Minorities’ Behavioral Language
Some people may trust their friends, family, and their workplace
associates more than they would trust financial advisors who may not be in
their network (Chung & Park, 2015). According to CCT, sales
representatives should understand the needs of consumers to gain their
business (Arnould & Thompson, 2005). P1 uses various strategies to build
client relationships. P1 stated, “I say to them this is ‘what will you have if
you do planning and what you will have if you do not do planning.” P1
continued, “People need proof sources. They need backing of proven sources
versus celebrity financial figures.”
Regarding building relationships, in viewing P1’s marketing
resources, I read a testimony from one of the clients:
I’ve been with P1 of C1 for YEARS and has been superb [sic]!! Now
that life is changing, and we are about to enter a new phase of life, [sic] has
met with P1 of C1 and I several times and explained things thoroughly[sic]!
If you are in need of guidance of insurance feel free to contact [sic] office!!
You won’t regret it!! People may be conservative in using financial
products because of their lack of trust in the financial services industry
(Babiarz & Robb, 2014; Calcagno et al., 2017; Guesalaga et al., 2016;
Malone et al., 2010; Monti et al., 2014). Nevertheless, P2 mentioned that
customers request financial advisors’ services after reading one of Dave
Ramsey’s books. P2 emphasized, “I think financial advisors need to have a
good understanding of programs like Dave Ramsey.” P2 continued, “I
already read the books and everything because you must get the basics and
gist of what he is teaching. I think it is good for anybody regardless of race
to read.” Therefore, financial advisors relating to their customers is essential.
To gain trust, participants expressed the importance of understanding
their clients’ language and culture. P6 explained, “Key to selling is listening
and not talking. Then, I listen, and they tell me what I need to do for the
sales. I talk to them where they are.” Additionally, financial advisors may
gain new clients directly or indirectly because they are aware of their clients’
language and culture. As with CCT, meeting the needs of the clients in a
changing economy requires an awareness of the language and cultural
differences versus expecting their clients to assimilate to the norm (Arnould
&Thompson, 2005; Guesalaga et al., 2016). Understanding the needs of
prospective clients is a valuable marketing tool for financial advisors to gain
relational trust and new clients. All populations require resources to gain
financial literacy for saving and investing (Durodola et al., 2017; Mauldin et
al., 2016). With an increase in financial literacy, communities may
experience a reduction in poverty and impoverished senior citizens
(Durodola et al., 2017; Potrich et al., 2015). Hence, businesses and
communities will benefit from sufficient cash flow. Therefore, financial
advisors should gain trust by understanding their clients’ behavioral
language and communication styles (Monti et al., 2014).
Sometimes language barriers may hinder financial advisors from
reaching minority populations. P4 emphasized, “Now I can always grow; I
want to grow. But for reasons like, I can only go so far into the Hispanic
community because I do not speak the language.” P2 said, “I am actually
working on Spanish and being better at that.” P7 mentioned, “I kind of do
wish that I, actually, paid attention in high school to learn a 2nd language.”
Deliberately, knowing the languages, knowing the cultures, and knowing the
generation are significant tools to use in marketing strategies to reach
diverse populations (Arnould & Thompson, 2005; Guesalaga et al., 2016).To
perform effective marketing strategies toward minorities such as African
American women and other cultures, financial advisors should understand
the financial thought patterns of various populations. P5 commented, “Often
times, let’s say more in the non-African American minorities, you have a
much better probability of marketing to those groups if you are of that
ethnicity. P5 continued, “That’s not so exclusive in African American
market. In fact, I’ve been told by several African Americans, some clients,
and some agents that some African American prefer not to have an African
American advisor because they do not trust them.” Some people may trust
their friends, family, and their workplace associates more than they would
trust financial advisors who may not be in their network (Chung & Park,
2015). Therefore, the knowledge of effective marketing strategies is
important versus relying on assumptions. Representatives of companies,
such as financial planning marketing firms, should convey the message that
they recognize the consumers’ culture and their environment when
marketing products and services to them (Arnould &Thompson, 2005;
Petersen et al., 2015).
Marketers must understand the consumers’ culture to develop
marketing strategies to be able to sell to heterogenic cultures (Arnould &
Thompson, 2005; Cossío Silva et al., 2013; Petersen et al., 2015). Financial
advisors may relate to their culture; however, they should see the advantage
in selling to all cultures. Regarding the Hispanic populations, P4 argued,
“They have families, goals, and dreams just like we do.” P2 emphasized,
“All the people that I know work very hard and have gone up the ladder and
have decent jobs; they are doing pretty well for themselves, you know.”
Hence, financial advisors marketing to minority populations and knowing
their languages may be profitable.
Emergent Theme 5: Providing Financial Literacy Tools
Because some minorities mostly socialize within their ethnic
environment, gender, or socioeconomic status, they may not know of anyone
employing financial advisors’ services. People tend to seek advice from their
family, friends, and coworkers; those who seek advice from a strong
financial network tend to have financial literacy skills (Chung & Park,
2015). Financial educators can encourage behaviors to resist barriers to
financial sufficiency for retirement savings goals (Winchester & Huston,
2014). People can benefit from financial literacy tools and services from
financial advisors. In viewing P3’s company resources, P3’s clients thanked
him for guiding them with financial literacy processes that prepared them for
budgeting and saving money, investing in real estate, and preparing for
market challenges; these processes led to social, economic advancements.
Additionally, P3 provided clients with checklists as well as reached them on
their financial literacy level. P3’s clients commended him for bringing
financial awareness. Therefore, financial advisors need to use the
appropriate tools to build relationships with various ethnic prospective
clients.
Participants’ presented financial literacy tools to build relationships
with their prospective clients. According to P1, “I use proof sources outside
of the company so that it won’t look like I am producing company
propaganda.” Minorities need financial literacy resources that they can relate
to saving money. CCT entails theories that would enable marketers to
market to minorities by understanding their identity in the marketplace
(Arnould & Thompson, 2005). P3 relates based on need; “I have
presentations that I put together that I show them based on a particular topic
that they are needing education on.” Populations from some socioeconomic
background do not have access to financial resources (Kojola & Moen,
2016; Mauldin et al., 2016). Therefore, financial advisors sharing financial
literacy tools may be a marketing strategy to gain minority business.
Financial literacy tools and institutions might help contribute to an
increase in financial literacy. Financial resources such as banking services
and financial literacy products are necessary for savings and investments
(Hermansson & Song, 2016; Potrich et al., 2015). Özsomer and Altaras
(2008) argued that authenticity theory entails genuine company behavior and
the authenticity of products. Therefore, financial advisors may have to use
financial literacy tools within their presentations to sell the value of their
products and services to minorities. P4 mentioned, “Financial literacy tools
come in many forms. You got company or carriers brochures to discuss
financial planning like diversification, time horizon and stuff like that.
Things that open the conversation within minority market.” People who need
financial benefits may still need an in-person consultation to understand
plans and the fine print. P5 mentioned that websites with financial tools are
available. However, P5 argued, “Most of the tools that they can use are me
teaching. I am the best tool.” Therefore, financial advisors may gain revenue
by building relationships and contributing financial literacy tools to their
communities
Emergent Theme 6: Maintaining Effective Marketing Strategies
Participants maintained effective marketing strategies that helped with
the continuous flow of revenue. An adequate marketing strategy includes
sales agents marketing effectively to heterogenic markets (Arnould &
Thompson, 2005). For sustainability, financial advisors should market to a
variety of populations. If financial advisors do not develop innovative
marketing strategies, financial advisors might have to prepare for future
declines in sales of their services because of the competition. For instance,
consumers are relying on services provided by self-help tools on the Internet
(Lachance, 2014). Innovative strategies include networking with other
businesses, creating innovative activities such as new ways of gathering
knowledge, reducing costs, and collaborating with other resources such as
their supply chain and industry landscape (Lassala et al., 2013). Investors
with strong financial networks tend to trust people within their network more
than those outside of their network; the benefit from this is to reduce cost
(Chung & Park, 2015). Financial advisors need innovative strategies to build
relationships. Sales representatives should identify that they recognize
consumers’ buying patterns for services according to their culture and
environment (Arnould &Thompson, 2005; Petersen et al., 2015). Sales
representatives cannot expect ethnic groups to assimilate, but they can use
innovated tools that they realize appeal to those groups.
According to CCT, business owners need to find marketing strategies
that appeal to specific demographics of consumers (Arnould & Thompson,
2005). Accordingly, financial advisors should adapt marketing strategies that
trigger minorities to buy financial products. Marketers should understand
consumers’ culture to develop marketing strategies to be able to sell to
heterogenic cultures (Arnould & Thompson, 2005; Cossío Silva et al., 2013;
Petersen et al., 2015). Some of the participants’ marketing strategies are (a)
social media marketing, (b) being a conversationalist, (c) target marketing,
and (d) educating.
P1 noted successful marketing strategies include a combination of
tools. Regarding social media, P1, P2, P3, P4, P5, and P7 explained that their
companies do not allow advisors to participate in social media advertising
and strategic marketing because of being in a heavily regulated industry
(Adrian et al., 2015). The participants’ companies do not allow self-
promoting or solicitation on social media. However, according to data
viewed, customers posted testimonies on P1 and P3’s personal social media
accounts about their quality of services.
P1, P2, P3, P4, P5, and P7 have personal social media accounts that
include their photos of community events participation, such as fundraisers
and speaking engagements. Their customers and other associates post
speaking engagement photos and testimonies onto social media. However,
participants do post educational information on their professional social
media pages such as LinkedIn. Customers appreciate business owners who
share their personal lives on social media. Regarding personal lives, P6 does
not market on the Internet; P6 has a large referral group because of his 25
years of experience. Additionally, P6 is highly visible to the public.
Therefore, a combination of tools such as visibility and marketing strategies
is important for successful marketing strategies.
Another effective marketing strategy noted from the interviews with
the participants is being a conversationalist. P2 explained that financial
advisors attend events where their customers or referring associates
introduce them to various populations. Marketers need to relate to
consumers’ behaviors (Cossío Silva et al., 2013).
P2 argued, “I think because finances are so personal anyways you really
have to go about it from a personal approach because no stranger is just
going to open up to you about their money.” Therefore, as mentioned earlier
having an effective referral system is a good marketing strategy. Being a
conversationalist is an avenue to build rapport with potential clients.
Target marketing is a strategy that a couple of the participants
implemented into their practices. P6 shared that fellow cohorts have been
successful in target marketing. P6 mentioned, “I haven’t used it, but I know
that it works.” P6 had the opportunity to view that target marketing works.
P6 noted, “I’ve seen it work well.” P6 described target marketing, “That’s
where you become very knowledgeable and immerse in a specific group of
people you want or think you want to work.” P7’s target market to women.
P7 explained, What I done is identify with ancillary partners, estate planners
who may focus on women, divorce attorneys, CPAs and accountants who
may have a practice focused on women, same thing with real estate agents,
realtors who have a women-focused practice, and lastly what I would call
eldercare or patient advocates for seniors. Target marketing involves having
a referral system as well. P7 relies on a referral network. P7 emphasized how
to target market and build a referral system, “Building up that message
through my center of influence network and my networks of professionals.”
Some financial advisors may practice target marketing by servicing
associations. P3 reasoned, I guess the only time I want to say that I actually
do that is to organizations that are set up for minorities. So, any type of black
doctors’ association or that kind of thing; that would be considered target
marketing because that is all in that organization. Some financial advisors
use a combination of tools to target market. P7 stated, “The marketing
strategy that I have used in the past that I think cover the broadest range of
all minorities is simply getting out into the streets doing door to door visits.”
As mentioned earlier, other participants target marketed through associations
and events. P5 noted, “I have a few requests from African American
investment clubs.” Additionally, P5 explained proactivity to target marketing
requires seeking to speak at groups of minorities.
Financial representatives can appeal to various ethnic groups with
strategies built around generosity and contributions to ethnic communities.
P6 understands that knowing the potential client’s history is a marketing
strategy. P6 explained, “I don’t have any tools per se. I just have what I
consider a wealth of experience, a lot of knowledge and history.” P6 was
referring to the disrespect of minorities. Sometimes financial representatives
would not deliver the payments that they collected from African Americans
and other minorities to insurance companies. For example, about the
treatment of African Americans, P6 shared, “Most of the time, the money
never made it to the insurance company, but went downtown to buy
cigarettes and drinks.” The financial representatives would use the money
for their privileges. Therefore, discussing the concerns of prospective
customers is a marketing strategy that needs consideration.
As mentioned earlier, building trust is a marketing tool as well (Webster &
Lusch, 2013). To be successful in marketing to their clients, financial
advisors need to promote strategies to ensure that clients perceive the value
of financial planning services (Cummings & James, 2014). Moreover,
financial advisors should make a decision about the necessary measures to
build relational trust (Lassala et al., 2013; Monti et al., 2014).
To be successful in marketing to their clients, financial advisors need
to promote strategies for consumers to understand the value of financial
planning services. Contributing financial literacy as an educational
marketing strategy can help to promote value and build relational trust.
Marketers have to promote the values of products and services (Guesalaga et
al., 2016; Webster & Lusch, 2013). Upon understanding the value of
financial planning services, more consumers might buy financial planning
services. According to P3, When it comes to marketing and considering
minorities, especially African Americans, I don’t think there is too much
difference between marketing to the two, except for I think a lot of people in
the African American community just simply have not been educated on the
products as much. Marketers who promote their brands to specific target
markets and their existing target market will reach different segments of
populations to increase their revenue (Gupta & Pirsch, 2014; Poulis et al.,
2013). Financial advisors who communicate their brand and their corporate
social responsibility may gain sales revenue from minorities (Martin &
Finke, 2014). According to P6, “I believe in marketing of self; ultimately,
that what’s they are getting; is you. So, how I present myself, speak of
myself, and how I allow myself to be perceived that’s my strategy.”
Therefore, financial advisors can promote brand awareness in different
segments of targeted populations.
Financial advisors should brand themselves as understanding the
needs of their clients. Regarding strategies to sell to women, P7 explained,
“We identified the need.” According to P5, “In my one-on-one with people,
I do a lot of teaching with a yellow legal plan by drawing ideas and thoughts
that people can follow and can get. I never found recommending a book or
resource because they don’t do it.” Accordingly, P6 explained, “I share
concepts, dealing with where they are. I do that on a blank piece of paper. I
just believe I am a good listener and I have the ability talk to them where
they are.” Hence, financial advisors should develop good listening skills and
learn to meet the demands of their prospects. These marketing tools of
branding align with CCT.
Some demographic groups prefer simplicity in retirement education
rather than the overload of financial education (Cummings & James, 2014;
Nejad & O’Connor, 2016). Additionally, marketing managers in the
financial services industry implement branding strategies via innovation and
differentiation (Lassala et al., 2013). P3, P5, and P6 emphasized the
importance of telling customers what they want to know. P6 explained, “Key
to selling is listening and not talking. Then, I listen, and they tell me what I
need to do for the sales. I talk to them where they are.” P6 emphasized, “I
just go with the flow. That’s means my strategies is just get referrals. So, I
just follow the referrals.” Financial advisors who keep financial planning
simple may gain revenue from new segments of the populations.
Women need financial education. P7 emphasized the necessity of
identifying what women need and then educate the women. P7 educates
women. P7 explained, So often that’s what I am trying to do is uncover
areas that I feel specifically women need education and attention to help
equip them for that time in their lives when they do have to take over
responsibility. That’s my marketing strategy. Women tend to have a lower
level of confidence in financial literacy than men (Babiarz & Robb, 2014).
Therefore, financial representatives, such as financial advisors, providing
financial education to minorities such as women is important. Educating
customers entails asking the right questions that help to learn about
customers’ needs. P6 mention listening helps to gain information to close
sales. P7 provided an example of the right questions, “Are you doing enough
to save for the day in which you are no longer able to work?” The lack of
education regarding economics and retirement savings benefits contributes
to some behavioral decisions regarding successful retirement preparation
(Ellen et al., 2012; Lachance, 2014; Malone et al., 2010; Nejad & O’Connor,
2016; Potrich et al., 2015).
In summary, financial advisors can benefit from a combination of
marketing strategies to reach minorities. Financial advisors’ use of listening
skills toward their prospective customers’ concerns can help to close sales.
Marketing strategies to reach minorities are necessary for the sustainability
of financial planning industries. The data from the participants aligned with
CCT’s findings of identifying the needs of the customers. I used the
knowledge of CCT to explore financial advisors’ strategies that they
implemented for marketing to minorities effectively.
Applications to Professional Practice
Six themes (see Table 1) appeared from the data. The seven financial
advisors I interviewed revealed these themes as marketing strategies to reach
minorities to sell financial planning services. Financial advisors
implementing effective marketing strategies to minorities can help with
business sustainability and sustainable retirement living for the consumers
they reach.
Financial advisors as participants in this study expressed that their
marketing strategies gear them toward reaching more clients. Their strategies
included community appearances and collaborations with other professionals
and customers for referrals. Financial advisors need marketing strategies to
reach all population segments. Participants’ marketing strategies that lead to
successful sales to minorities were (a) building a referral system, (b) hosting
events, (c) implementing community involvement, (d) knowing minorities’
behavioral language, (e) providing financial literacy tools, and (f) using
effective marketing strategies.
Effective marketing strategies are a necessity for business
sustainability. Small businesses may not have a marketing department.
Financial advisors rely on a supportive referral system of loyal customers
and centers of influences to gain new customers, especially minority
customers. Hosting events regarding financial matters to attract new
customers are essential for marketing. Community involvement included
financial advisors showing the community that they care by participating in
community and other events, such as fundraisers and charitable events.
Knowing the behavioral language of minorities can help financial advisors to
understand diverse cultures and to give them insight into the needs of
minorities. Financial advisors supplying financial tools to their prospective
clients can help increase financial literacy. Increasing financial literacy
would build the confidence level of consumers who need financial advisors’
services.
Financial advisors in this study knew the value of marketing to
minorities. Adequate marketing strategies include marketing to heterogenic
markets by understanding their culture, which aligns with CCT (Arnould &
Thompson, 2005). CCT is the conceptual framework of this study. To
develop innovative marketing strategies, financial advisors need to
understand diverse populations’ cultures and buying habits.
Sales representatives should identify that they recognize consumers’ buying
patterns for services according to their culture and environment (Arnould
&Thompson, 2005; Petersen et al., 2015). Networking and collaborating
with centers of influence will help financial advisors to gain the referrals
necessary to build a sustainable business (Cummings & James, 2014).
The findings of the study revealed financial advisors’ implementation
of marketing strategies that generated sales and promoted financial literacy
to minorities, including women. Financial advisors in this study applied
marketing strategies that included (a) social media marketing; (b) being a
conversationalist; (c) target marketing; and (d) educating. Financial advisors
do not market through social media. However, financial advisors could post
financial literacy information to some of their social media avenues.
Consumers seeking financial services can view financial advisors’ personal
lives displayed on social media. Additionally, clients may post testimonials
to their financial advisors’ social media links.
Financial advisors will need to understand diverse cultures by
listening and asking the right questions. Therefore, financial advisors should
be conversationalists to get the answers that they need to meet the demands
of their prospects. Marketers need to understand consumers’ needs (Cossío
Silva et al., 2013). New prospects and new customers from minority
populations can help their financial advisors to target the minority markets
for new customers.
Financial advisors should implement financial literacy promotions to
help consumers to understand the value of buying financial planning
services. Marketing is a tool to promote value and well-being to citizens
(Webster & Lusch, 2013). Consumers might buy financial planning services
because they understand the importance. All consumers should plan for
retirement. However, financial advisors should present financial literacy
tools and understand diverse cultures to have successful marketing
campaigns.
Participants in this study understand the necessity to apply the
appropriate financial literacy tools themselves by presenting solutions to
their clients using customized approaches, such as sharing concepts on legal
pads, being good listeners, and meeting clients’ needs based on their culture
and environment. As referenced earlier, Cummings and James (2014) and
Nejad and O’Connor (2016) argued that some demographic groups need
simplicity in retirement education rather than the overload of financial
education. The findings in this study aligned with CCT and the literature
review by showing that financial advisors marketing strategies must consist
of addressing consumers’ culture demands in the marketplace and
innovation to reach diverse populations by developing trust and building
relationships.
Implications for Social Change
Financial advisors marketing to minorities effectively can benefit
minority populations. The implications for social change will generate from
financial advisors who accept corporate social responsibility. From corporate
social responsibility, financial advisors might be able to implement the
knowledge that they gained from research about marketing to multicultural
and overlooked populations such as immigrants and certain age groups. The
minority populations can receive help from financial advisors because of an
increase in financial literacy resources that may contribute to adequate
retirement preparation. Adequate retirement preparedness denotes that
retirees can replace more than 75% of their income (Butrica et al., 2012).
Minorities need financial advisors to give financial literacy tools to
encourage behaviors to resist barriers to financial sufficiency for retirement
preparation. For sustainable businesses, many financial advisors need to earn
sales from a variety of populations.
Arnould and Thompson (2005) argued that marketers must understand
their demographics to persuade consumers to purchase from the market.
Poulis et al. (2013) found that marketers must determine if a minority
population will accept the culture in which they live or their parents’ cultural
origin. Some minorities who change their behaviors by knowing adequate
decision-making skills can find help with overcoming barriers that hinder
them from adequate financial retirement preparation. The lack of education
about economics and retirement savings benefits contributes to some
behavioral decisions of successful retirement preparation (Ellen et al., 2012;
Lachance, 2014; Malone et al., 2010; Nejad & O’Connor, 2016; Potrich et
al., 2015).
The findings of the study could affect social behavior by financial
advisors addressing financial literacy barriers such as access to financial
literacy tools. Financial advisors can help consumers to retire with an
adequate amount of money by understanding the consumers’ needs and
implementing proven financial literacy practices. Consumers’ use of
adequate retirement planning can help to reduce poverty in retirement.
Financial advisors should present the value of financial planning to help
change the behavior of consumers who chose to use self-help tools such as
those presented on the web-based resources.
Business owners such as financial advisors can create social impacts
on their communities by supplying community members with pertinent
resources (Gupta & Pirsch, 2014). Having knowledge does not necessarily
mean people will save. People should use their financial literacy knowledge
to make decisions toward having adequate financial savings (Kim et al.,
2013; Kim et al., 2017; Nejad & O’Connor, 2016). People need resources to
create the knowledge necessary for saving and investing (Ellen et al., 2012;
LaChance, 2014). The implementation of the findings of the research from
financial advisors marketing strategies to minorities may lead to social
change.
Recommendations for Action
The purpose of this qualitative case study was to research financial
advisors’ successful strategies for marketing to minorities that generated
sales revenue. Financial advisors should implement innovative strategies for
marketing to minorities successfully. Financial advisors should understand
the culture of minorities, present the values of financial planning services,
ask the right questions, and customize their presentations to educating the
customer at their level of need and their ability to understand financial
planning.
Strategies used for marketing to minorities entail understanding their
cultures and not expecting all minorities to assimilate to the White American
culture. Another strategy would be to set up a referral system that includes
loyal customers and collaborations of professionals. Financial advisors can
host events and present customized presentations to understand the cultural
climate of minorities and to set up a lucrative referral system.
Financial advisors for all stages in the financial planning industry
should consider the results from this research as a gateway to understanding
effective marketing strategies to minorities. Financial advisors should
recognize advances in businesses and social impact from implementing new
strategies discovered from this research. I recommend that financial advisors
implement as soon as feasible the findings of this research to have
sustainable businesses and to keep pace with the changing demographics. By
2024, the U.S. population will be more racially diverse than the 2017 U.S.
population (U.S. Census Bureau, 2018). Therefore, I recommend the
implementation of this research to be disseminated via literature,
conferences, and training to maintain business sustainability and to close the
gap in research.
Recommendations for Further Research
The focus of this qualitative case study was about financial advisors’
successful strategies for marketing to minorities to support the sustainability
of their practices. The participants in this study included seven financial
advisors with practices in the midAtlantic region of the United States. Even
though the results of the study do not include all the financial advisors in the
mid-Atlantic region of the United States, the financial advisors in this
research have 7 to 25 years of experience. The primary limitation was not
being able to follow a cohort of the participants in the study. I recommend
the development of a cohort of financial advisors to follow the success of
their effective marketing strategies.
An additional limitation of this study was that financial advisors were
from financial planning firms versus other small financial institutions such
as small banks. I recommend that further research include studies of other
financial institutions. Another recommendation would be a completion of a
quantitative study for generalizability of financial advisors’ revenue results
from marketing strategies and consumer satisfaction. Finally, a quantitative
study measuring the relationship between the success of financial advisors
over the long term with the diversity of their clientele would fill a gap in the
research literature.
I achieved data saturation after interviewing seven participants in this
study. Data saturation occurred when no additional information emerged
while interviewing new participants. I recommend the development of new
research about financial advisors effective marketing strategies outside of
the mid-Atlantic region of the United States. To complete this research, I
used a qualitative case study. Researchers could use other methodologies
and designs for financial advisors’ marketing strategies.
Reflections
As an insurance agent with over 13 years of experience, I reflect on
seeing Medicare beneficiaries retiring with inadequate financial resources or
poor health and sometimes with both situations. Additionally, I saw
insurance agents and financial advisors not survive in the financial industry
beyond 5 years. My original intention for this research was to explore the
phenomenon of inadequate retirement preparedness created by the 2008
economic crisis. However, I explored the business marketing strategies of
financial advisors to create both business and social impacts. Financial
advisors’ marketing strategies can promote sustainability in business and
reduce poverty for some future retirees.
The strategies that I discovered included financial advisors building a
strong referral system, hosting successful events, implementing community
involvement, understanding minority cultures, and using effective marketing
strategies. My goal for the research was to help financial advisors to survive
beyond 5 years in business and to reduce poverty for future retirees.
Financial literacy benefits financial advisors and consumers.
I had no intentional preconceived biases and did not recall any biases
that arose in my research. I began the DBA program with the intention of
promoting business sustainability and corporate social responsibility. When
implemented, the results of this research can support business and personal
sustainability.
Conclusion
The purpose of this qualitative study was to explore financial
advisors’ marketing strategies to minorities. A few relevant strategies
implemented by financial advisors were building a strong referral system
and customizes presentations based on culture or the needs of the minorities.
Financial advisors who use effective marketing strategies should gain
enough customers for sustainable businesses.
Findings in this research revealed that financial advisors who (a) built
a referral system, (b) hosted successful events, (c) implemented community
involvement, (d) knew minority consumers’ behavioral language, (e)
provided financial literacy tools, and (f) practiced effective marketing
strategies maintained sustainable businesses. Additionally, financial advisors
were successful because they were involved in social media marketing to
share information about their personal lives, were good conversationalists,
participated in target marketing to minorities, and provided financial
education. The results of this study revealed important strategies for both
business and social impact.
