We recently took the stage at Quirk’s New York to talk about a topic that’s dominating every boardroom conversation: the fragile state of consumer sentiment in the U.S.
Right now, everything seems to be in flux—from inflation to AI threats to global instability. So, how should brands conduct consumer behavior research and respond to consumer needs in these times of crisis and uncertainty?
Here’s a breakdown of the key takeaways from our session, where our experts, Robert Pierson, SVP-Sales, Americas, and Sayam Jain, Senior Director – Research & Analytics, unpacked how brands can adapt, stay relevant, and build real connections in such tumultuous times.
Consumers Are Anxious and It’s Justified
Consumer sentiment in the U.S. is sitting at historically low levels. An in-depth analysis of social media chatter, online forums, and public data sources through Borderless Access’ proprietary social listening models shows that negative sentiment online is now five times higher than positive sentiment.
This isn’t limited to one demographic or region. Whether it’s a young professional in California or a retiree in Florida, consumer anxiety is shooting through the roof.
What actually is driving this anxiety? Here’s what we’re seeing:
- Tech skepticism: AI is both fascinating and terrifying. People worry about job losses and don’t trust the content it generates.
- Economic fear: Inflation is persistent. Tariffs keep shifting. Even if someone’s financial situation hasn’t changed, their confidence has.
- Lack of trust: Be it the government or insurance companies, people feel like they’re being let down by institutions they used to rely on.
- Geopolitical and natural instability: Wars, trade disputes, even local floods—everything feels unpredictable.
Even industries that used to be built on trust, like insurance, are getting pushbacks. AI-powered claim systems may be efficient, but they often fail to make people feel heard. And in today’s market, perception is reality. If your customers think you don’t care, you’ve already lost. But some brands are getting it right.
Zurich Insurance, for example, has successfully blended AI with human CRM touchpoints. The key is not about replacing human interaction but enhancing it.
Sustainability Isn’t Optional Anymore
Consumers now expect brands to take real, measurable steps toward sustainability. They want brands to show exactly how their efforts are making a difference—environmentally, socially, and personally. And they want it fast.
Many brands, for instance, have already started integrating sustainability directly into their product design and marketing strategies. For instance, a few eminent fashion labels are using recycled materials and showing the carbon impact per item.
But brands must also consider how they communicate these efforts along with their impact on the customer’s daily life. This pressure to act fast and with substance is real, the reason why surface-level consumer behavior research won’t cut it anymore.
AI and Personalization: A Double-Edged Sword
AI has opened the door to hyper-personalization and is undoubtedly changing the way brands personalize messaging and products. But it’s a double-edged sword.
We’ve seen Nike experiment with massive-scale personalization. In one such campaign, they created over 5,000 unique, AI-generated ads targeted to different micro-audiences on YouTube. These weren’t completely different messages. They all aligned to a particular brand persona but used different visuals, copy, and tones based on user data.
Mostly, it worked.
But personalization without cultural sensitivity can backfire. That same brand faced a massive backlash in India for using a Bangladeshi actress to promote Indian culture. Consumers called it tone-deaf, and the damage was immediate.
It is evident that personalization isn’t just about visuals and product suggestions. It’s about understanding people deeply.
Preserving Authenticity in the Age of Misinformation
Some of the latest industry reports reveal how more than 50% of social content is inaccurate. Add to that the culture of online trolling and polarization, and that false information is shared 70% more than genuine content.
For brands, this means two things:
- Be proactive about monitoring sentiment.
- Build contingency plans for rapid response to disinformation.
- Avoid jumping on trends without full cultural context.
Where Cultural Appropriation Can Go Right, and Wrong
Not every brand gets the cultural messaging right. We’ve seen consumer behavior research campaigns from some of the world’s leading brands because the messaging didn’t align with the audience’s sentiment or culture.
One infamous example includes Heinz, which launched an ad featuring a Black man with ketchup smeared around his mouth—a visual that evoked uncomfortable and racially charged stereotypes. The brand faced immediate backlash, not just for the image itself, but for failing to anticipate the reaction.
In contrast, brands like Nike (despite occasional missteps) have demonstrated how you can win by listening to the market. Their campaign targeting tween girls who drop out of sports around ages 11–12 focused on health, community, and empowerment. More than a campaign, it addressed a real social issue in partnership with Unilever to lend authenticity.
The Three Rs of Consumer Behavior Research
To help brands cut through the noise and get actionable consumer behavior insights, we at Borderless Access developed a precise framework designed to optimize every interaction: Right Product. Right Messaging. Right Media. This approach demands individualized insight, focusing deeply on what each person truly seeks, rather than relying solely on traditional market segments.
As a consumer research company, we recently ran a consumer behavior study with a U.S. bank and used this framework to cluster customers into three segments: Core Loyalists, Occasional Users, and Potential Customers.
Here’s what we found:
- Core Loyalists care most about brand popularity and consistent trust. They want to be aligned with a ‘winner’.
- Potential Customers are more transactional. They want offers, discounts, and tangible value.
- Occasional Users are somewhere in the middle. They can turn loyal but only if the messaging hits the right emotional and functional mix.
Once we had these insights, we could map product offerings and media outreach accordingly. Core Loyalists might respond best to TV and mainstream YouTube content. Potential Loyalists might require social campaigns and retargeting through Instagram or TikTok. The key is to understand who wants what, and where they’ll listen.
Building Brand Resilience in Times of Uncertainty
Today’s U.S. consumer is not the same as even five years ago. They’re cautious, emotionally tuned in, and less forgiving. They expect brands to be transparent, smart, and deeply human. That means marketing strategies can’t be built on assumptions, legacy metrics, or cookie-cutter personas. On that note, our experts closed the session with few actionable strategies for how brands can future-proof their strategies:
1. Transparent Communication and Ethical Practices
Consumers don’t expect brands to be perfect, but they expect them to be honest. Be upfront about what you’re doing in your consumer behavior market research campaigns, what you’re still figuring out, and what your intentions are. Authenticity builds long-term trust, especially in uncertain times.
2. Personalization That Reflects Consumers’ Values
Yes, consumers want to feel seen. But personalization isn’t just about showing someone their name in an email. It’s about offering relevant products, respecting cultural nuances, and avoiding overreach. Make sure your personalization is rooted in empathy, not just algorithms.
3. Anticipating Sentiment Shifts with Better Data
Don’t just react—predict. Use social listening, behavioral data, and online consumer panels to sense early shifts in their moods. Brands that wait for the backlash are already behind. The winners will be those who spot the storm clouds before they turn into a hurricane.
We’re in the era of adaptive branding where listening, empathy, and precision are the only ways forward. If your brand is struggling to keep up, the problem might not be your product. It might be that you’re not tuned into what people actually care about right now. That’s where real, and reliable insights can change everything.
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