Cheers to the American Consumer

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Harvard Business School professor John Quelch wrote an interesting article recently. I like the Harvard Business School, but must admit I was disappointed by this piece. I expect more from Harvard Professors... John Quelch... Why is the American consumer more venturesome? Six factors come to mind? Wealth. The average American consumer has more disposable income than his or her counterparts in most other countries. There is therefore money available, with easy credit historically fueling the fire, to risk on new things and new experiences. And the secondary market, from the flea auction to eBay, is well developed so the consumer does not necessarily lose everything if disappointed. This may be changing in the current economic crisis - time will tell, but a reasonable proposition. Mobility. American consumers relocate more than most. What they own, how they dress, what they do. In other words, their consumption behavior becomes an important signaling device to attract efficiently the right set of new friends and acquaintances. It's not so much a matter of keeping up with the Joneses; it's a matter of quickly identifying the Joneses like you. This is one of the key reasons that marketing to customer demographics is so successful in America. This mobility does not make you more venturesome. It seems that these mobile people are homesick and as the Professor describes, seek out people "just like them". Not a particularly venturesome trait. Immigration. The prevalence of immigrants among America's successful entrepreneurs is well documented. But the same curiosity and openness to new things also characterizes consumer demand in the American melting pot. Maybe, but by and large, the American consumer is relatively conservative compared to Eheir European or Asian counterparts. Independence. The American frontier tradition and the sheer number of Americans promotes an attention to individual differentiation that is less prevalent in more conformist and homogeneous societies. Among 300 million curious consumers, it is possible for almost any innovation to find a viable niche market. Agree - large numbers make a wide range of weird and unusual niche's viable. Recognition. Americans are not overly concerned or burdened by history. Many live for today or for the next new thing. Early adopters and lead users of new products are listened to and applauded. Their opinions are sought on the Internet. They can accelerate adoption of a new product or kill it. The American maverick commands more influence than the European eccentric. Not sure I agree when you compare mavericks to eccentrics professor. Maverick - someone who exhibits great independence in thought and action. Eccentric - a person with an unusual or odd personality. Technology. Americans understand that innovation is the key to growth and wealth in a global economy where knowledge travels at lightspeed over the Internet. America's economic strength is based on innovation. Proud parents take their children to science fairs, new electronic gizmos dominate Christmas gift sales, and senior citizens find renewed connectivity with far-flung families by going online. Americans know technology adds value to daily life. America is way behind countries like Japan, Australia Singapore and Hong Kong when it comes to telecommunications devices and infrastructure. The internet bandwidth in the US is the standout (the rest of US telecommunications is a mess) - this is driving the new wave of entrepreneurship and consumer spending. These traits apply equally to consumers and entrepreneurs. They are of course the same people. Consumers can become problem-solving entrepreneurs and successful entrepreneurs such as Bill Gates and Michael Dell become well-respected role models for younger people. Marketing, a distinctly American expertise, has of course encouraged consumers to be venturesome and to welcome innovation. Marketers research customer needs, design new products to solve customer problems, and motivate purchase through attractive pricing and heavy advertising, with the occasional dose of built-in obsolescence. An example is Intel's remarkably effective pull advertising campaign that had consumers clamoring to OEMs for PCs with the latest, fastest microprocessor. Why are their sales down 25% compared to last year? Politicians, like marketers, understand the importance of the venturesome consumer. President Obama's campaign slogan, "Change we can believe in," captures perfectly the spirit of the venturesome American consumer, looking forward, ever-hopeful, and prepared to take a chance on something new. Please professor, more research please - particularly if you want to post articles with a global perspective.

How Much Obsolescence Can Business and Society Absorb?

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