Consumer Behavior and Business Strategy in the USA and Canada

North America is one of the most profitable areas for corporations pursuing regional expansion plans. However, the market is far from homogeneous; from Cuba, Costa Rica, and Mexico to the United States, Canada, and Saint Martin, each culture is distinct. Each market has its own distinct qualities. This raises concerns and presents challenges for marketers and business owners. While business leaders are normally aware of the distinctions between Hispanic and anglophone clients, they frequently wrongly believe that anglophone Americans and Canadians may be targeted in the same way. Despite having comparable cultures and languages, Canadian and American consumers do not think and purchase the same way.

In addition to certain parallels, there are other variances that any organization considering entering the industry must evaluate.

To assist businesses in avoiding costly mistakes, we compiled some comparative statistics on numerous traits and behavioral elements of Canadian and US consumers. Let's see what we've got. Spending and Value-seeking Behavior Americans spend more per capita than Canadians. However, greater expenditure in the United States is primarily driven by those in their prime working years. Americans aged 35 to 54 earn more than Canadians of the same age group and spend almost $50,000 more each year. Canadians of all ages spend equally with their American counterparts. Furthermore, Canadian young adults spend more. Another element influencing spending behavior is the disparity in value-seeking behavior observed among Canadians and the US population. Canadians are value shoppers who prefer the lowest price or the best deal above a certain brand. This is not to say that American customers aren't looking for the best deal; Canadian consumers simply take a different approach to discovering value. They're willing to go above and above to discover the best discounts. For example, 87% of Canadians stock up on their favorite products when they are on sale, 57% visit many stores to find the greatest deals on various things, and 56% regularly participate in retail loyalty programs.

Another distinction emerges in terms of transportation.

Although households in both nations spend more on private transportation (own car) than public transportation (buses, etc.), Americans drive more (and hence spend more on petrol). Judgment Canadians aged 25 to 34 are significantly more distrustful and judgmental of their classmates and themselves. This is especially true for millennials. While Americans aged 25 to 34 consider themselves caring and confident, Canadian Millennials are far less likely to do so. Businesses that target Canadians in this age bracket must be more aware of how this demographic interprets responsibility (for example, being financially independent and/or having small children). Canadians are less likely than Americans to recognize other Millennials for their responsibility. This is demonstrated by Canadians' lack of trust in their peers when it comes to online reviews. Over three-quarters of American consumers aged 25-34 trust internet reviews as much as personal recommendations, yet only three out of every five Canadians of the same age believe in them. Shopper Preferences and Behavior Canadians spend a much higher portion of their money on housing-related things and services. The method of consumption varies as well.While Canadians spend more per capita on shelter, Americans spend more on house renovations and decoration. Another distinction concerns online consumption. Canada is 15 spots ahead of the United States in terms of internet penetration.

The country is ranked fourteenth in the globe.

The average Canadian spends approximately 39 hours per month online (excluding mobile and tablet use). Despite the high penetration rates, Canadians have been slower than Americans to adopt online shopping. Canadians are still "touch-and-feel" buyers who value conventional brick-and-mortar retail. Aside from being more "brick-and-mortar" buyers, Canadians devote more of their budget to non-discretionary things, whereas Americans spend more on discretionary items. Regarding the similarities, food is a major spending category in both countries. The bottom line is that enterprises looking to grow into North American markets must first grasp the nuances of each market's target clients. For individuals selling goods and services, these attributes might be critical to success. It's also worth noting that, while the aforementioned differences are the most relevant and trending, the list of differences and parallels is not exhaustive. Furthermore, within a country, consumer behaviors vary dramatically from region to region--just as consumer behavior in New York differs from consumer behavior in Los Angeles, so does consumer behavior in Ontario from Quebec. Digilite Web Solutions happily services both the Canadian and US markets, recognizing both their distinctions and similarities. If you're interested in learning more about the North American marketing landscape, or if you want to locate professionals to help you understand the markets, check out our latest infographic comparing Los Angeles and Toronto, two of the most renowned North American cities. By the way, Digilite has offices in both locations.