Bush is bad for business

MediaGuardian.co.uk | Media | Consumers send ‘warning sign’ to US brands
Declining respect for American cultural values exacerbated by the crisis in Iraq is having a potentially disastrous effect on the image of US brands such as McDonald’s, Coca-Cola, Nike and Microsoft, a new worldwide study of consumer attitudes has found.
The number of people who like and use US branded products has fallen significantly over the past year, while brands perceived to be non-American have remained relatively stable.

According to NOP World, which carried out the survey, a mixture of America’s controversial involvement in Iraq, its handling of the “war against terrorism”, corporate scandals such as WorldCom and its failure to sign up to the Kyoto environmental agreement, have all had a profoundly negative affect on the perception of US culture and its major brands.

Tom Miller, the managing director of NOP World, said worsening attitudes to the county’s products could damage US business.

“It’s not like there’s a massive boycott,” said Miller. “Instead, it seems to be an erosion of support. It’s not falling off the face of the earth, but it is clearly a warning sign for brands.”

NOP found the popularity and consumption of US products had declined for the first time since the research programme was launched in 1998.

The total number of consumers worldwide who “use” US brands was found to have fallen from 30% to 27%, while non-American brands remained stable at 24%.

The NOP annual study covers 30,000 people in markets around the world, and the latest survey was conducted between January and March – a period marked by the growing crisis in Iraq.

It also found the decline in interest and respect for US products was reflected in consumers’ view of American cultural values.

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