Global Poll Suggests US Business Will Suffer from Anti-Bush Consumers

Seattle-based Global Market Insite just finished up a poll of 8,000 consumers from around the world and discovered that 1 in 5 of them will avoid buying products that they most closely associate with America. While this won't shift anything in Washington, it may just be the difference between a profitable year and a loss for some US-based brands. Calling fried potatoes “Freedom Fries” instead of “French Fries” doesn't hurt French products, but when folks won't wash those down with a Coke because of the company's American passport, well, that's a cheval of a different couleur .

If there is a silver-lining for the US boardroom, it is the fact that 80% of global consumers don't necessarily believe that buying a Big Mac is a cultural endorsement of the foreign policy of the Bush administration. In fact, one could point out that holding 80% of the market in light of opinion polls that suggest America's friends are outnumbered by its detractors is rather strong brand loyalty. However, the remaining 20% is a problem unless a company can turn a profit with 80% smaller revenues. Few businesses enjoy such margins.

As in most things, this isn't a straight forward, black-or-white situation. GMI's survey said that American Express, America Online, American Airlines, Marlboro, McDonald's, Budweiser, Barbie Dolls and ChevronTexaco would suffer most as they are the most identified as American (the first three having chosen to identify themselves by name, this is hardly surprising. On the other hand, some American companies don't have quite the same national identification, e.g., Estee Lauder, that won't suffer as much. And of course, there are some companies that don't need to be concerned – Microsoft has no competition in the minds of many consumers (although Linux is rapidly becoming the local favorite with this journal).

Some Wall Street industry analysts dismiss the survey and the underlying premise that US foreign policy will affect bottom lines. This seems to be wishful thinking. There is no doubt that US airlines are under pressure internationally because they are perceived as targets. High fuel prices are far more damaging, but to the extent that some airlines will do better than others, American carriers face an additional hurdle.

Like any prejudice or bigotry, economist will explain this away by saying that the consumers have a taste for the discrimination and that it will eventually go away if the price differential is great enough. Thus, the dollar may have to fall much farther than would otherwise be the case to win back foreign consumers. Or prices will have to be slashed directly by the companies themselves. Or more likely a combination of both. Whatever the case, it is a conundrum that such a pro-business administration is responsible for the less-than-warm business climate American companies see overseas.


© Copyright 2004 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.


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