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INFLUENCES ON ETHNIC CONSUMERS’ ATTITUDES TOWARD ADVERTISEMENTS SHOWING “OUT-GROUP” MODELS ABSTRACT With the expanding diversity of the U.S. population, ethnic target marketing has become an increasingly crucial component of marketing strategy. Demographic trends have driven marketer attention toward consumer groupings not typically encompassed in traditional conceptualizations of the U.S. market, including ethnic minorities and immigrants (Penaloza, 1995). However, the practical reality of managing multiple target markets creates strategic difficulties for marketers trying to attract different segments simultaneously. Individuals may infer that their tastes and preferences are different from those of the intended target and not only fail to adopt a favorable attitude, but in fact have negative emotional responses toward the advertisement. A model relating all the variables of interest is proposed and tested. It shows advertising with one of three characteristics: ethnicity not salient (Anglo model), ethnicity of model matching that of respondent, or ethnicity of model a mismatch with that of respondent and that variable influencing attitude toward the ad (Aad) and Attitude toward the brand (Ab). That influence is shown as moderated by four variables measured in the individual respondent, who is in all cases a member of an ethnic minority population. The four variables are ethnic identification, ethnic alienation, ethnic competition, and prejudice. Finally, the model shows that the influence of these four variables as moderators interacts with the prestige of the advertised brand in affecting the relationship between model respondent match (or non-salience) and both Aad and Ab. Results show that the negative effects associated with perceiving groups outside one’s own to be a marketer's intended audience evoke negative responses and these effects are heighten by the respondent’s level of ethnic identification, ethnic alienation, ethnic competition, and prejudice. Brand prestige was also found to accentuate respondents’ negative attitudes. These results demonstrate the importance of how ethnic consumers feel about themselves and other ethnic groups to the understanding of the influence of group membership on consumer behavior. Considering these feelings in conjunction with numeric status suggests response differences not just between but also within minority groups. Responses of the nontarget market are theoretically and practically significant because they involve an important issue for advertisers in justifying expenditures on numerically minority markets.