Researching Behavioural Differences among Ethnic Minority Groups: The Case for Inferring Ethnicity on the Basis of People's Names

This paper reviews the growing use of personal and family names as a basis for inferring ethnicity, for researching behavioural differences among ethnic groups, and as a basis for market segmentation. It argues that, in the UK, ethnicity is used in market research to a lesser degree than is warranted by the extent of behavioural differences between ethnic groups. The reasons for this are held to include the impact of the inclusion of an ethnicity question on response, the difficulty in generating sufficient numbers of records to support the analysis of categories, most of which represent small proportions of the total population, the propensity of some consumers to belong to multiple categories and difficulties in establishing the relative size of different ethnic segments in base populations. The paper then contrasts the way in which commercial and public-sector organisations currently use ethnicity data, concluding that ethnicity is more often researched to assist compliance with diversity legislation than to deliver genuine insights of the sort that result in improved customer service. Then follows an explanation of the methodology whereby consumers can be classified on the basis of their personal and family names. The UK's British National Party and a research project resulting in reductions in the inappropriate use of accident and emergency services are used as case studies. The paper then considers how effectively a classification based on names overcomes the problems previously cited as constraining the successful use of ethnicity as a survey demographic. The paper concludes by suggesting the vertical markets in which name-based classification offers organisations the best opportunity for improving their reputation among minority ethnic groups as a result of a better understanding of their particular needs.