International Consumer Behavior

Brand Stands Trend in US

Student:
Draghiciu Mihaela

Contents
1. Introduction..........................................................................................................3
2. Cultural framework of USA and relevant consumer/cultural practices ..............4
2.1 Hofstede framework .........................................................................................4
3. Brand Stands Trend .............................................................................................5
4. Consumer behavior concept/theory you will use a theoretical framework .........7
4.1

External Influences on USA market..............................................................7

4.2 Internal Influences on USA market ..................................................................8

4.3 Self- Concept and Lifestyle ..............................................................................8
5. The applicability of Brand Stands in USA ..........................................................8
6. Conclusions and Recommendations ....................................................................9
7. Bibliography ......................................................................................................11
8. EXIBITS ............................................................................................................12

1. Introduction
The goal of this paper is to better understand the consumer behavior and attitudes taken from an
international point of view, and to describe and evaluate the American market and the factors of
change for the purchasing process so as, the brand companies to have a better understating over
this time of consumer market.
I have selected for this study US, because it represents perfectly a market where consumers are
more and more implicated in the business and worldwide activities, and are becoming an active
consumer.
The trend Brands stands perfectly fits for this kind of market, because companies are pressured
by the consumer to show transparency and to take a stand position regarding social, economic
or educational issues.
Taken into consideration the people attitudes and implication, after presenting the social and
cultural aspects of the US consumers and presentation of the trends aspects and implications, I use
several Consumer behavior framework and theories, to underline the current issues.
Finally, I will conclude with some suggestions and recommendation which can be applied for the
US market, from the consumer behavior point of view.

2. Cultural framework of USA and relevant consumer/cultural practices

United States market represents every brand and company dream. Along with the dimensions
and the diversity of the market, United States is one of the biggest market in the world. Despite of
this visionary attitude of developing a business on this super-market, a success in this country
comes with a great responsibility: understanding consumers behavior, their culture, attitudes,
needs, dislikes and downturns, which sometimes doesnt reach out very well. For this reason, some
consumer behavior theories can be used in order to better understand the behaviors of the target
market.

2.1 Hofstede framework1 (Exhibit 1)

The dimension of power distance deals with the fact that all individuals in societies are not equal
and it expresses the attitude of the culture toward these power inequalities among society
Power distance also signifies the degree to which a person is able to influence others people ideas
and behaviors.
In what regards the USA, the power distance dimension has the score of 40, which means that for
example in business, the hierarchy is established for convenience, where managers and employees
are been consulted and informed about decisions which are fairly shared, and usually the
communication is informal and direct.
Also, the Americans are following the premise Justice for all which defines the equal rights in
society and government for people, no matter their demographical status.
The second dimension of Individualism has an astonishing score of 91 for USA, which makes
from American population, one of the most individualistic and success orientated population in
the world. This individualization is mainly driven by the fact that America has a high degree of
geographical mobility, which intensifies this dimension.

Hofstede's cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede. It describes the effects
of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor
analysis.(source: Wikipedia)

Also, for example in business, employees are expected to be self-reliant and display initiative,
which creates competition among individuals, and underlines this dimension.
In what regards the masculinity dimension, we can see from Hofstede Framework that the score
is 62, which can perfectly explain the typical behavioral pattern of the American population.
The American society tends after success and achievements, from where the famous quote
American dream also comes, which basically means, that no matter the social layer, anybody
can become successful in rich starting from scratch. Moreover, the American system is based on a
precise target, where for example employees can see their achievements.
When it comes to the uncertainty avoidance dimension, the scores is relatively low, at 46, which
means that there is a fair degree of acceptance for new ideas, innovation, and an overall willingness
to try something new.
For the long term orientation in USA, the score is quite low of 26, which reflects the fact that are
prone to analyze new information and not taken for granted and when it comes to businesses,
the performance is measured on a short time basis with quarterly statements, which drives
individuals to achieve quick results at the work place.
The score for Indulgence of 68 for USA shows the overall behavior of with the mentality of work
hard play hard and overall, US is quite an indulgent country. This is the reason why in America
there are existing problems like drugs and weapon possessions.

3. Brand Stands Trend

The Brand Stands represent the position that a certain well known company is expressing and
acting over some common global or local issues, problems, attitudes and behaviors.
Issues like same sex marriage, birth control pills, genetically modified alimentation and even the
ideal weight represent an important part of the reality of consumers nowadays.
As a response to the values of the consumers, companies are choosing to take public stands
regarding this social-political problem.

In a recent study, conducted by Forbes showed that 8.1% of the Americans are willing to
purchase from a company that shares their opinion, and 8.4% of them, are most likely to stop buy
from a company which doesnt.(source: www.Forbes.com )
This specifically new trend, represent for companies a real fire alarm, because in the behavior of
the consumer appeared another variable which take place in the decision process making: the
shared opinions and values.
Another research conducted by Global Strategy Group 2showed that 56% of the Americans think
that companies should engage in the social political problems, and to take a stand regarding this
issue.
As a result, companies are becoming more and more interested to take a positive or negative stand
towards different issues, because they understood the powerful new determinant of the consumer.
For example, the Starbucks CEO Howard Schultz who made a stand by supporting same-sex
marriage3 or Pantene company in India4, when they created a campaign for no good products.
The studies also showed that is a strong relationship between specific age groups and the purchase
decision when it comes to controversial issues that they believe in. This kind of new attitude from
the consumer side has a lot of implication over the businesses and implicitly over the brand
decision makers. (see Exhibit 2)
As shown in the Exhibit 2, different age segments are willing to change their purchase decision
according with their own believes.
The study also showed the fact that younger age groups are more willing to purchase a product or
a service if that brand sustains their own beliefs.

http://globalstrategygroup.com/wp-content/uploads/2014/10/2014-Business-and-Politics-Report.pdf
https://news.starbucks.com/news/starbucks-applauds-supreme-courts-ruling-on-marriage-equality
4
http://lighthouseinsights.in/pantene-proofnotpromises-beautygraveyard-campaign.html/
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4. Consumer behavior concept/theory you will use a theoretical

framework
4.1 External Influences on USA market
The culture plays an important role in the American consumers life.
Also, we have to take into account the fact that United States has become a country that sustains
other ethnicities like: Mexicans, Porto Ricans, Chinese, Afro-Americans etc.
The subculture of this ethnicities have a strong impact over the consumer behavior attitude.
Demographics: in USA the demographics represent a significant factor in what regards consumer
behavior. This is because the level of individualism is very high (Hofstede framework) which
means also that beside the fact that people are more focused on themselves and selfimprovements in every aspect of life, but they are also very diverse: sex, age, race, religion,
orientation, etc.
In United States younger population tend to engage in companies supportive behaviors when the
beliefs and attitudes are the same.
On the other hand, the senior population tend to engage with companies behaviors when beliefs
and attitudes are not aligned, and the middle-aged groups tend to engage in both depending their
personal views.
Following this kind of behavior of the American consumer, we can mention that brands that are
targeting younger population might choose to stands relatively new subjects (ex: same-sex
marriage) and this can bring to increase in sales among key demographics that agree with them,
but also a decrease in sales for those who dont.
But, for the senior brands, taking into action such an expression of support or opposition, will
result in decreasing of sales among key demographics that disagree with their stance, and just a
slightly increase for those who do agree on the issue.
Brands catering the 36-55 years old, could take a stance on the issue with increase in sales for
those who agree and almost the same value of decreasing sales for those who dont agree.
Reference groups and family represent another important part of the decisions that American
society are confronted to take them. Because United States is such a diverse society, people tend
to group themselves, according with their interests (for example in universities there are different
groups: for mathematics, cheerleaders etc), because at the end they share the same values and
beliefs.
More than that, we know that the word of mouth is the best way to sell or promote a products or
a brand, so we can see in the behavior of the consumer that family and reference groups have a
big impact in the American consumer.

4.2 Internal Influences on USA market

The internal influences like perception, memory, motives and personality represent an important
factor that we have to take into consideration when it comes to American consumer.
Usually, an American consumer will be more influenced about the perception over a certain
attitude, or the fillings that are influencing their decision making process. The American
consumer is well known for the purchases that makes it feel good rather than for certain
characteristics of the products.
The consumer will be even more pushed to buy a certain product, if, the company that buys for is
in accordance with their attitudes, believes and fillings.

4.3 Self- Concept and Lifestyle

In the context of the social and political issues existing on the market nowadays, Americans
have come to expect brands to speak out.
The study from above showed that the engagement taken by the companies over this issue
influences the American consumer behavior.

5. The applicability of Brand Stands in USA

This social political issues can do a lot of damages as we saw on the above examples.
On the other hand, the consumers have become more aware of this issues, and moreover they are
influenced in the purchase decision process, so companies cannot afford any more to just stay on
their bench because eventually this will represent a downturn situation in comparison with other
competitors that decided to take a stand
Taking into consideration this things, I elaborated a plan that companies might follow in order to
keep maintaining their position, to satisfy the consumer, and why not o attract others.
For this plan I created a 3 step plan that a company might follow into an international context, that
fits my country of choice: USA
1 Identify the social and political problems
If a brand is really dedicated to comply with its consumer, first it has to identify the main social
and political problems from US. Because USA is a big market, and the level of indulgence is quite
low, inevitable issues like: same-sex marriage, drugs (legalization), healthcare reform (Obama
care) are coming up.

2 Choose an issue that better suits your segment(s) market

The companies should try to identify the issues that best fit their segment market, or that fits with
the market that wants to develop in. In this way, they will know that the issue is sustained by their
consumers, and avoid the disappointments.
3 Be transparent and ambiguous
Even though they know that the issue selected correspond with the target market, in order to avoid
scandals or other problems, companies should maintain transparent: this is who we are but also
in the same time ambigous, just enough: we are supporting our consumers that made this choice,
but in the same time we are understanding the ones who dont, because everybody is different,
this is a free country, and everybody has the right to a personal opinion.

6. Conclusions and Recommendations

When companies engage in social-political issues, they ultimately risk the loss of profits and
attention of activists groups that may result in the expenditure of additional resources. Still,
companies that engage in this kind of social-political issues, might also benefit and increase
sales.
The new 2015 engaging trends are taking into consideration more and more the consumers
attitude and desires. Brand stands is showing perfectly how consumer is becoming more
demanding with their favorite brands, and simply because the product and service covers their
needs, this is not anymore satisfying.
People want to be fully committed and ask and expect for their favorite brands the same thing.
Companies should take into consideration this trend in order to keep maintain their consumers,
but in the same time, it will have to do it very carefully with the author part of the consumers
which dont agree with the stand.
Taking a stand in United states as a brand you have to take in consideration the fact that this
culture is a fairly indulgent one, which means that there a lot of stands to be taken there.
Also, in what regards Hofstede framework another important think that we have to keep in mind
that the American society has a high level of individualism and a fairly low power distance,
which means that the population is striving to achievements and success and they are guided
after the quote justice for all.
The subcultures of the American population has also a big influence over the whole preferences
and decisions. Subcultures like Mexicans and Porto Ricans are influencing and changing the
behaviors in the American culture.
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Also, demographics is an another point to take into account when we are looking at the
consumer behavior aspects in USA. As the study made by Forbes shows, different ages of
population react differently and are influenced differently at the decision making process. This
can have another implication like, family, reference group and so on.
Brands Stands represent one of the most important trend from 2015, because this can change
once and for all the perception of the consumer in general not just of the American one. The fact
that people tend to change their purchasing behaviors according with their social attitude
regarding problems. The companies should pace up with this important change in the consumers
attitude and start to elaborate a plan for overcome this situation that could be decisive for the
next years.

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7. Bibliography
thenewamericanconsumer.com

http://geert-hofstede.com/united-states.html
Marketing across cultures-Jean Claude Usunier, Julie Ann Lee, Prentice Hall
www.euromonitor.com/consumer.

http://www.forbes.com/forbes/welcome/
http://trendwatching.com/trends/10-trends-for-2015/
http://inspirationfeed.com/inspiration/infographics/what-does-your-brand-stand-for-infographic/

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8. EXIBITS

Exhibit 1: Hofstede Framework USA

Exhibit 2
Percentage

Purchase decision making

25.00%

20.00%

15.00%

21.10%

10.00%

16.20%

14.60%
5.00%

10.10%

8.10%

0.00%
18-25

26-35

36-45

46-55

56-older

Years Old

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Exhibit 3: Consumer Behavior theoretical framework

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