Being And Buying American

Being (Buying) American

ForewordI sat there, in front of my 32 inches Samsung TV, watching ‘ThePractice’ in awe of the suits, scandals and society. I sat there, on myIndian couch and culture, dreaming the big American dream. We alldid. While the world watched, America, year over year, signifiedpower, freedom, opportunity and success. We all dreamed in red,white and blue. And in dollars.

Today, as I glance around, trying to find the ‘proud of beingAmerican button’ engraved on people’s chests, I only find flags ofdisdain and broken promises. They all nod their heads inbewilderment when asked whether they considered themselves trueAmericans or not. ‘What do you mean ‘true’ Americans?’ Theyquestioned.

So, I took up the quest of understanding Americans. I sent outsurveys, raised questions in person, eavesdropped on conversations,interviewed bloggers and studied various charts. I asked them all,what had changed and what hadn’t? American citizens or globalhabitants? Stayed true to tradition or created their own cultures?

I asked them, ‘What does it mean to be an American?’

- Mansi Trivedi

Sources: Gallup Survey, Pew Study, Primary Quantitative/Qualitative Research,iBrand/TCE Study, Blogs

“Your whole life isfreedom. So manypeople have lostfortunes, but theywent back and keptgoing until theyfinally made it. Youtake what you haveand go makesomething” Hariett Ball, school teacher on “Being an American”

Contents

Four questions and an insight

1. Who considers himself/herself asbeing an American?

2. What does being an Americanreally mean?

3. What has changed and how?

4. Who is the new ‘American’?

5. The new American - Insight

1. Who considers himself/herself as being anAmerican?

Demographic Divide when it comes to patriotism

• Less % of the younger age groups consider themselves patriotic and higher % of older agegroups consider themselves more patriotic. (Gallup Survey)• For the older generations, being American lies in heritage, traditions and ideals. As such,much tighter correlation between being and buying American with older generations because itdefines them through their traditions and values. (Gallup Survey, Pew Research)

• Americans are jaded by the current situation and their confidence on America being a superpower is deteriorating. Although, there is also a growing trend of people supporting their localcommunities and helping their communities prosper.• Life-stage: Younger Married/Unmarried age groups are not motivated to buy only American• Domestic/Imports: Import vehicle buyers tend to be more open to a multicultural society arenot only valuing American ideals but those of other cultures too (GM Ibrands Study)

• iBrands (GM Buyer Behavior Study): Friends and Families and Action Heroes are moretraditional and prefer American manufactured products whereas Progressive Enthusiastsconsider themselves patriotic but their consideration for American manufactured products islower. Progressive Enthusiasts also think that being an American is a vital part of their identitybut they also tend to be more open to various cultures, environmentalism. Their preferencetowards American manufactured products indexes lower than other ibrands.

2. What does being an American reallymean?

Behavior more important than background

• Last two years have seen a lot of cultural shifts. The young have embraced it and what itmeans to be an American has changed for them. The younger generations themselvesdefine what it means to be an American. Purdue University Survey results found thatbehavior is more important than one’s background in defining who is an American.

• Gallup Youth Survey asked youth (aged 13-17) what it meant to be an American? Theysaid that Being American means accepting others, treating everyone equally, being opento new ideas and thoughts, appreciating your freedom and not taking what your ancestorsdid for granted.

• Americans are calling for new solutions: They want to work hard to restore their securelifestyle. They are looking at the government to provide them more solutions. They areexpecting companies to function responsibly and help rebuild America’s image as aresponsible nation. AAR research in April, 2008 found that respondents are likely torecycle, drive a hybrid car, and take other actions to reduce their impact on theenvironment.

• Americans are interested in the truly different and yet authentic. Americans believe inproducts/brands that truly give them the freedom to choose, anything that reflects theirbeliefs and reinforces their image as being smart citizens. (Some examples include beingassociated with brands like Prius, Trader Joe’s, Greenworks, Apple)

3. What has changed and how?

Americans look for social responsibility amongst companies

• There is a difference between Being American and BuyingAmerican. Being American is not translating into buying

American for younger generations. Because as opposed to theBoomers, Generation X and Y don’t buy brands based on

ideologies but buy brands based on performance.

• For the older generations, being American lies in heritage,traditions and ideals. As such, much tighter correlation

between being and buying American with older generationsbecause it defines them through their traditions and values.

• But with the new President, there is a movement of people asthey earn up to the situation and are determined to revive

America. 58% of all Americans think the economy willimprove under Obama.(HCD Survey, December 2008)

• Nearly all (92%) of people surveyed expect businesses tobehave as good corporate citizens by putting more emphasis

on being socially and environmentally responsible and lessemphasis on short-term profits.

4. Who is the new ‘American’?

There has been a shift on what Being American means: fromBackground to Current, from Heritage to Potential

Being American meansfreedom, pride and

heritage

Being American isdefined based on

personal experiences

Old ‘American’ New ‘American’

Trust Brands that embodythat heritage

Buy Brands that areresponsible, that will play a

role in our bright future,brands that reflect my ideals.

IDENTITY ABILITY

The ‘new’ American is

Optimistic

Responsible

Tenacious

The new American is hopeful and optimisticabout the future of America. He/She ispatient and realizes that they have taken thefirst step towards revival. They are workingharder towards a better tomorrow, towards abetter America.

He/She is not leaving it up to you or me tochange the world. The new American is standingup, taking up personal responsibility and owningup to the challenge of revamping the currentsituation. He/She is working towards greenercountry and encouraging corporate responsibility.

He/She will fight for what is right because he/sheis armed with global weapons - expressionthrough online platforms - blogs,twitter,forums etc.He/She abides by the ethical rules and will callyou out if you fail to follow. He/She will fight fora good cause.

The ‘new’ American wants

Transparency

Innovation

Accountability

The new American wants transparency in brandsthey buy. The ‘Made in China’ or ‘Made inAmerica’ tag does not influence purchase but abrand story does. The new American has accessto limitless information and concealingsomething will only lead to rejection.

He/She embraces technology. Not all of themunderstand it but they all appreciate it. Stayahead of the curve, be the first and create user-friendly manuals. Be approachable, notintimidating. The new American wants companiesto not take them for granted but constantlydisplay their capabilities.

The new American wants to rely on companiesthat admit their wrongs and rectify the wrongs.He/She wants socially responsible brands thatwill help them become good global citizens. Thenew American is ready to forgive the past if theefforts are made to make the future better.

Starting today, wemust pickourselves up, dustourselves off, andbegin again thework of remakingAmerica.- President Obama

Appendix

Feeling ofpride, of

freedom, ofbelonging

Disillusionedwith the

AmericanGovernment

Road toRevival

Revival of ‘Livingthe American

Dream’

Faith in theAmerican Dream

God BlessAmerica

1960s 1970s 1980s 1990s 2000s Today

1960’sGaining the American Superpower Status:•The average family owned a home in the suburbs and bought a new car every few years•Able to enjoy a comfortable lifestyle that was not available to the average citizen beforeWorld War II.

1970’s

1980’s

1990’s

Focus on individuality and finding inner peace•Increasing divorce rates, female-headed house-holds, focus on individuality and finding innerpeace over material satisfaction•Economic stagnation and recession•Auto industry found itself largely unable to sell its gas-guzzling large cars, which were itsmost profitable. Consumers, faced with rapidly increasing car and fuel prices, were demandingsmaller, more economical cars that got improved gas mileage.The Me! Generation of status seekers•The 1980s became the Me! generation of status seekers•Hostile takeovers, leveraged buyouts, and mega-mergers spawned a new breed ofbillionaires•Double-digit inflation•Blend of conservative family values alongside a period of increased telecommunications.•Auto industry had lost its first-place standing to Japan. One out of every four cars sold in1980 were imports. By the second quarter of 1981, the Big Three were showing profits again.In 1985, Americans owned one car for every 1.7 people in the country.The Electronic Age•Changed the way we communicate, spend our money and do business.•An open, diversified society, a functioning democracy, a healthy economy, and the meansand will to face and overcome its problems•Auto Industry developments of the late 1990s focused on global expansion into newmarkets. Through most of the 1990s, auto makers sold a little over 15 million cars and lighttrucks a year in the U.S. market. That changed in the late 1990s: With gasoline prices lowand many U.S. consumers feeling flush from the tech-stock boom, auto sales surged.

2000’s

Dual-Income Families and rise in patriotism•An American family grew to dual income families in majority.•International trade grew and so did concern over energy supplies•Explosion in telecommunications•Concerns with international terrorism and war•The debate over global warming.•The U.S. market for cars and light trucks continued to be strong till 2005. But sales fellafterwards. Hurricane Katrina caused gas prices to climb above the $3 mark, and sales of bigvehicles plunged. Although light trucks still accounted for over half of the U.S. passengervehicle market in 2005, sales declined. Conversely, passenger car sales grew.

TodayRise of the Creative-Class and Environmentalists•The American family is smaller than before. People are marrying much later in their lives anda lot of couples are adopting the empty nesters lifestyle.•The advent of digital decade, this decade has seen the emergence of the Creative Class, theD-I-Yers and those who are documenting their entire lives online through tools like Wordpress,Liveournal, Facebook, Flickr, Blogger, Twitter and so on.•A new trend of ‘Eco-Iconism’ has also grown. People are making an effort to buy green andlead a eco-friendly lifestyle.•The auto industry is seeing a dramatic change. Rising gas prices has sent a panic amongsttruck buyers. The demand has shifted towards small cars and favorable perception has shiftedtowards the imports. Toyota has overtaken GM as number 1 automaker of the country whiledomestics continue to struggle.

How proud are you to be anAmerican?

Gallup Survey, 2007

- The 9/11 events reinstated the feelingof patriotism amongst people but as thecountry started suffering economicproblems and the war issue, thenumber of people proud of being anAmerican declined.

- The survey shows that the highereducated, younger, lower incomegroup of Americans from urbanareas tend to be less patriotic.

On Buying American• Lifestage: Younger Married/Unmarried age groups are not motivated to buy only American

– Never Married Individuals, Dual Income No Kids, Young Educated Female, Young Affluent Males, Influentials, Educated Wealthylifestage groups are more open to a multi-cultural America and are not motivated to buy American as compared with other lifestages.They think that America is the only superpower nation in the world but don’t necessarily prefer American manufactured products.

– Empty Nesters, Mature Couples, Mature Families, Widow/ers are more traditional in their attitudes. They think that it is necessary toreceive a religious upbringing, being an American is a part of their personal identity and they value American ideals.

• Domestic/Imports: Import vehicle buyers tend to be more open to a multicultural society are not only valuingAmerican ideals but those of other cultures too

– Domestic owners tend to be more religious, they feel that Being American is a vital part of their identity, there’s no better place to livethan in America, no country even comes close, they also prefer to buy American manufactured products and value American ideals. Theythink that environmentalists are extremists and not reasonable people.

– Import owners are more open to cultural influences from other countries and would enjoy living abroad. Given a choice, less than half ofthem will buy American. It is about being a sponge. Taking in the best that America has to offer but blending it with other Non-Americanproducts/cultures have to offer.

• iBrands: Friends and Families and Action Heroes are more traditional and prefer American manufactured productswhereas Progressive Enthusiasts consider themselves patriotic but their consideration for American manufacturedproducts is lower

– Friends and Families and Action Heroes are the highest indexed ibrands that prefer American manufactured products. They tend to bemore traditional and think that being an American is a vital part of their personalities. Friends and Families are more pessimistic towardsAmerica’s future as compared with Action Heroes and Progressive Enthusiasts.

– Progressive Enthusiasts also think that being an American is a vital part of their identity but they also tend to be more open to variouscultures, environmentalism. Their preference towards American manufactured products indexes lower than other ibrands.

2008 GM iBrand Profile Study

Greed to Generosity

Recent ‘Trendwatching’ report highlights the consumer shift in proudlyaccepting brands that submitted to being socially responsible.

2008,2009 Trendwatching.com Reports