How Does the 'American Dream' Affect Consumer Behavior?
What comes to mind when you hear the term, "American Dream?" Do you picture a white picket fence around a colonial home? Is it achieving your potential, whether its discovering a new product, or growing a family? Or, do you see yourself going over blueprints, directing a board meeting while answering questions from the team that you're leading? Maybe a little of everything, or more. According to the Center for a New American Dream, a 2014 survey* suggested these findings:
I find the phrase- and concept overall- very interesting. It suggests that there is a goal every American ought to reach for- a pinnacle in someone's life that we should all strive to capture. I don't disagree with the notion, but I think that in recent years, the "American Dream" may be perceived to be unattainable. For people to think that a 'dream', cant come true- I would argue- is a problem.
The implications of which can be felt in marketing and advertising activities.
For Beyond Madison Avenue in 2012, I wrote the article "Restoring the American Dream is Crucial for Advertising" because I do believe that positive consumers- those who think that the economy will always provide what they need and want for a good life- need to believe in the concept of the American Dream. I hypothesized that if the marketing industry used themes for growth, prosperity and 'climbing the ladder', consumer confidence could grow.
A recent study done by researchers from University of Buffalo shows that I wasn't completely wrong.
The study wanted to see how consumers would engage in impulse buying if they believed in or doubted the 'American Dream.' The initial findings are interesting. According to the researchers, those who believed in the concept were less likely to spend impulsively. Those consumers who did not believe in them (donned 'pessimistic consumers') were more likely to spend impulsively.
Another piece of data is worth noting- if those optimistic consumers (those who believed) saw a product or service that they believed would help them towards their goal of reaching the American Dream, they were likely to purchase it, even if it was unplanned (impulse).
Though there are many takeaways, I want to consider two conclusions we can glean from the study:
- If we want to encourage impulse buying, we could downplay or ignore American Dream-like messaging, and promote the living in the moment/now.
- If we want people to engage with us regularly, we can use the 'American Dream' messaging to position brands as partners; helping the consumer get to where they want to be.
Marketing helps consumers find the goods and services that will improve their lives, and I think that either conclusion achieves that. But if a brand wants to build a loyal and fanatic-like following, wouldn't the obvious choice be the second conclusion? No question.
That conclusion, in part, is why I do believe it is a good idea to get our population dreaming again. Yes, the 'present' and the 'now', can definitely work. But getting consumers to believe that your brand can get them to where they want to be, creates a loyal target market that keeps on buying.
Now that's something worth believing in.
*The Center for a New American Dream does have a liberal-lean to it, which may have affected its population for the survey. Read the results with that in mind.