A core idea in behavioral economics is that  customers don’t always behave rationally. From Dan Ariely’s Predictably Irrational onward, we’ve had a language for the ways decisions deviate from purely logical models.

That lens has been useful, but it may also have led us, subtly, in the wrong direction. What if many of the decisions we describe as “irrational” aren’t irrational at all? What if they’re meaningful – but we’re missing the context that makes them make sense?

In my work, I’ve found that what often sits underneath these decisions is tension. Not random inconsistency, but a structured set of competing forces that people are trying to navigate in their lives. Some of those tensions show up again and again:

People want to feel independent, but modern life makes them dependent on systems.
People want to feel disciplined, but their days are chaotic.
People want to express their individuality, but they also want to feel a sense of belonging.
People want to become a better version of themselves, but change is difficult.

When we only look at the customer’s specific decision, it can seem inconsistent or even contradictory. But when we look at the tension the decision is helping resolve, a different kind of logic appears.

Take a familiar example: the pickup truck. Drive through almost any suburban neighborhood in the U.S., and you’ll see them – large pickup trucks parked in driveways, often spotless, their beds empty. For many of these owners, the truck is rarely used for hauling or towing. Day to day, it’s used for commuting, errands, and school drop-offs. From a purely functional standpoint, it’s more vehicle than most people need. It’s harder to park, more expensive to run, and less efficient than many alternatives.

And yet, it’s a remarkably common choice. If we look at that through a purely logical lens, it’s easy to see the decision as inefficient, or even irrational. But look at it through the lens of tension, and something else comes into view.

 

For many buyers, the pickup truck sits at the intersection of independence and dependence. Even if daily life rarely demands it, the truck carries the possibility of self-sufficiency – the sense that “I could handle it if I needed to.” In a world where so much of life depends on systems, services, and other people, that feeling has real value.

At the same time, the truck often navigates a tension between individuality and belonging. It signals a certain identity – capable, practical, grounded – while also connecting the driver to a broader cultural narrative that feels familiar and shared.

Seen this way, the choice isn’t irrational. It’s helping the customer navigate tensions that aren’t visible if we only focus on features, price, or stated needs.

Once you start looking at customer behavior through this lens, patterns begin to emerge. Decisions that once felt inconsistent start to feel structured. What looked unpredictable starts to feel, in many cases, surprisingly coherent.

I explore this lens more fully in my new book, The American Customer: The Hidden Forces That Shape Choice, which is now officially out. The book looks at how culture and identity shape the way people interpret their choices – and why those choices carry meaning that isn’t always immediately visible. It offers a way to move beyond describing behavior to actually decoding it.

The book is available here.

I’ve also been developing these ideas further in a presentation, Decoding the American Customer, where I explore how to identify these tensions and apply them in practice. If that would be useful for your team or organization, please contact me at jay@bureauwest.com.

Source: “The American Customer: The Hidden Forces That Shape Choice,” Jay Zaltzman, March 23, 2026

Economic uncertainty has long been part of the Latin American context. Inflation, currency volatility, and political transitions are familiar realities for consumers across the region.

However, uncertainty does not simply reduce consumption. Instead, it transforms how consumers prioritize, evaluate, and experience value.

Across Latin America, households continuously adapt their spending habits in response to changing economic conditions. These adaptations are often subtle but deeply influential in shaping market dynamics.

Consumers Are Becoming Strategic Buyers

Latin American consumers have developed a remarkable capacity to adapt to economic fluctuations. When financial uncertainty increases, consumption rarely stops altogether. Instead, consumers become more strategic in how they allocate their resources.

Price comparison, promotion hunting, and brand switching become more common behaviors.

In Argentina, for example, high inflation has led consumers to monitor prices almost daily. Many households compare prices across supermarkets, neighborhood stores, and online platforms before making routine purchases. Bulk buying and stockpiling of non-perishable goods often occur when consumers anticipate price increases.

In Brazil, discount retail chains and cash-and-carry formats have expanded significantly as consumers look for better value while maintaining product quality.

Similarly, in Mexico, many households actively monitor promotions offered by large supermarket chains as well as local neighborhood stores, choosing where to shop based on weekly discounts.

These behaviors illustrate how consumers do not simply reduce consumption—they optimize it.

Value Is Being Redefined

In uncertain economic environments, consumers rethink what “value” truly means.

Value in Latin America is rarely defined by price alone. Instead, it often reflects a combination of factors such as product durability, brand trust, emotional satisfaction, and family benefit.

In Colombia, for example, many households have shifted toward products that offer longer-lasting value, even if the upfront price is slightly higher. Durable goods and multipurpose household products often become more attractive in times of financial uncertainty.

In Mexico, trusted brands frequently retain consumer loyalty even when lower-cost alternatives are available, particularly in categories such as food, household staples, and personal care.

Meanwhile, in Peru, consumers often prioritize products perceived as contributing to family well-being—such as healthier food options or educational services for children—even during economic pressure.

For brands, this means that value propositions must address both functional and emotional needs.

Smaller Luxuries Are Replacing Large Purchases

One common pattern across many Latin American markets is the postponement of large purchases during uncertain economic periods.

Consumers often delay buying vehicles, electronics, appliances, or home renovations until economic conditions feel more stable.

However, this does not mean consumers abandon discretionary spending altogether.

Instead, many consumers replace large purchases with smaller indulgences that provide emotional satisfaction.

In Brazil, for example, premium chocolate, specialty coffee, and higher-end personal care products have remained resilient in periods of economic volatility.

In Mexico, affordable restaurant meals, street food experiences, and small lifestyle treats often serve as accessible ways for consumers to maintain enjoyment despite financial constraints.

In Chile, consumers have increasingly turned toward smaller experiential purchases—such as dining out or short local trips—instead of more expensive long-term investments.

These small luxuries often play an important psychological role during uncertain times.

Informal Innovation Is Creating New Consumption Models

Latin America’s informal economy has historically functioned as a powerful mechanism for economic adaptation.

When financial pressures increase, consumers frequently develop creative strategies to maintain access to goods and services.

In Mexico, neighborhood stores (tienditas) often offer flexible purchasing arrangements, including informal credit or the ability to buy products in small quantities.

In Argentina, resale platforms and second-hand markets have expanded significantly as consumers seek more affordable alternatives for clothing, electronics, and household items.

In Brazil, social media platforms have enabled a new wave of micro-entrepreneurs who sell food, clothing, cosmetics, or services directly within their communities.

These informal networks are not merely survival strategies—they are dynamic ecosystems that shape how products circulate within local markets.

For companies, understanding these alternative consumption systems can reveal opportunities that traditional retail data often overlooks.

Trust Becomes Even More Important

During times of economic uncertainty, trust becomes a crucial factor in consumer decision-making.

Consumers are more cautious about how they spend their money, which often strengthens their reliance on brands they perceive as reliable.

In Chile, where public debates around corporate responsibility have intensified in recent years, consumers increasingly expect transparency and fairness from companies.

In Mexico, brands that demonstrate consistency in product quality and pricing often maintain stronger consumer loyalty even during economic downturns.

In Brazil, companies that communicate empathy and understanding toward consumers’ financial realities—through promotions, accessible product formats, or responsible messaging—tend to strengthen long-term relationships.

Trust becomes not only a marketing asset but also a strategic advantage during uncertain times.

Understanding Consumer Adaptation

Economic uncertainty is often interpreted primarily as a constraint on consumption.

In reality, across Latin America it often functions as a catalyst for behavioral adaptation and innovation.

Consumers become more strategic, redefine value, seek affordable sources of enjoyment, and develop new ways to access goods and services.

Many of these behavioral changes are subtle and cannot be fully captured through traditional quantitative data alone.

Understanding how consumers navigate these challenges often requires deeper qualitative insight into the motivations, trade-offs, and cultural meanings behind their decisions.

At Fieldable Research, qualitative and ethnographic research across Latin America frequently reveals these everyday adaptations—helping companies identify emerging consumption patterns and anticipate shifts in consumer priorities.

In a region where economic conditions can change quickly, understanding how consumers adapt is often the key to understanding the future of the market.

 

In Latin America, the informal economy is not a marginal phenomenon – it is a defining feature of daily life. Across the region, a significant portion of economic activity occurs outside formal regulatory frameworks, influencing how consumers earn, spend, and innovate. For market research buyers, understanding this dynamic is essential: informal economies are not just constraints – they are powerful engines of consumer-driven innovation.

The Scale and Nature of Informality

In countries such as Mexico, Brazil, and Peru, informal employment can account for 40–70% of the workforce. This includes street vendors, independent service providers, micro-entrepreneurs, and gig workers operating without formal contracts or protections.

But informality is not simply about lack of regulation – it is about adaptability. Consumers in these environments develop highly resourceful behaviors to navigate income volatility, limited access to credit, and inconsistent infrastructure. These behaviors often translate into innovative consumption patterns that differ significantly from those in more formalized economies.

Innovation Born from Constraint

One of the most important insights for researchers is that constraint fuels creativity. When traditional systems fail to meet consumer needs, people create alternatives.

1. Micro-packaging and fractional consumption
   Consumers with irregular income streams often prefer to buy in small quantities, even at a higher unit price. This has driven the success of single-use sachets for products like shampoo, detergent, and even cooking oil. What began as an adaptation to affordability constraints has become a mainstream packaging strategy across emerging markets.
2. Alternative financial ecosystems
   Limited access to formal banking has led to widespread adoption of informal credit systems, rotating savings groups (tandas), and cash-based installment purchasing. More recently, fintech companies have begun to learn from these behaviors, designing digital solutions that mimic informal trust networks.
3. Hybrid retail models
   In many urban and peri-urban areas, the line between retailer and consumer is blurred. Small neighborhood stores (“tienditas”) double as credit providers, community hubs, and distribution points. Informal vendors also act as last-mile delivery networks, often outperforming formal logistics systems in reach and flexibility.

Case Examples

Mexico: The resilience of tienditas
Despite the expansion of modern retail chains, traditional corner stores remain dominant in many regions. Their competitive advantage lies in personalized service, informal credit, and hyper-local knowledge. Some brands have successfully partnered with these stores, creating tailored distribution and promotional strategies that leverage trust and frequency of interaction.

Brazil: Beauty entrepreneurship in favelas
In low-income communities, informal beauty salons and independent stylists have become influential nodes of product discovery and brand advocacy. These entrepreneurs often experiment with product combinations and techniques, effectively co-creating trends with their clients. For beauty brands, they represent both a distribution channel and a source of grassroots innovation.

Peru: Informal transport and mobility solutions
Before the rise of app-based mobility platforms, informal transport networks filled critical gaps in urban mobility. Even today, many consumers rely on a mix of formal and informal options, cost optimization, speed, and convenience. Mobility startups entering these markets have had to adapt to these hybrid behaviors rather than replace them.

Implications for Market Research Buyers

Understanding informal economies requires a shift in research approach. Traditional frameworks – focused on formal employment, stable income, and predictable consumption – often miss critical insights.

1. Rethink segmentation
   Income-based segmentation may be insufficient. Researchers should consider liquidity patterns, income volatility, and access to informal networks as key variables.
2. Capture real behavior, not stated behavior
   In informal contexts, there can be a gap between what consumers report and what they actually do. Ethnographic methods, in-context observation, and mobile diaries can reveal hidden practices that surveys might miss.
3. Engage non-traditional influencers
   Informal entrepreneurs – shop owners, stylists, delivery workers – often play a central role in shaping consumer decisions. Including them in research design can unlock deeper insights.
4. Design for flexibility
   Products and services that succeed in these markets are often modular, adaptable, and resilient to disruption. Research should explore not just product fit, but usage flexibility under different constraints.

From Informality to Opportunity

For too long, informality has been framed as a barrier to growth. In reality, it is a dynamic system that fosters ingenuity, resilience, and localized innovation.

For market research buyers, the opportunity lies in decoding these behaviors—not to “formalize” them, but to learn from them. The most successful brands in Latin America are those that embrace the logic of informal economies, designing solutions that align with how people actually live, work, and consume.

In this context, informal economies are not just shaping consumer behavior—they are actively redefining the future of innovation.

From the outside, the US can look like a wide-open market: large, affluent, and English-speaking. But many international brands have learned the hard way that what works at home doesn’t always land with American customers. Even globally sophisticated companies have stumbled by overlooking cultural cues, customer expectations, or just how different the US really is.

Some examples:

• When UK supermarket giant Tesco launched Fresh & Easy in the Western US, it assumed American shoppers would embrace smaller stores, self-checkout, and ready-made meals, just as they had in Britain. But they didn’t. Americans tend to shop less frequently and buy in bulk. Self-checkout kiosks (a core feature of the concept) felt impersonal. And the grab-and-go prepared foods? Not what many families were looking for in a weekly grocery haul. After five years and nearly $2 billion in losses, Tesco pulled out of the US entirely.
• Danish pharma company Novo Nordisk saw enormous opportunity in launching its weight-loss drug Wegovy in the US But it didn’t fully anticipate just how fragmented and cost-sensitive the American healthcare system is. The marketing was strong, but the product wasn’t widely available. Supply was limited. Insurance coverage was patchy. And out-of-pocket costs could exceed $1,300/month. The result was frustration from patients and physicians, negative press, and a loss of ground to US competitor Eli Lilly.

What went wrong? In both cases, the companies entered the US with strong brands, solid products, and proven models. What they lacked was a deep understanding of American customers.

Here are just a few misconceptions that frequently trip up international companies:

• “The US is one market.” In reality, it’s a patchwork of regional, cultural, and socioeconomic submarkets.
• “What works in Europe will work in the US” American expectations around convenience, customer service, and speed are often much higher.
• “Subtle, nuanced messaging will be appreciated.” US marketing norms favor directness, boldness, and clarity.
• “If we build it, they will come.” Without understanding US shopping behaviors or systems (like insurance or retail logistics), even great products can falter.

These are the kinds of missteps that deeper qualitative research can help prevent. To understand American customers – not just what they do, but why – foreign companies need research that reveals cultural nuance.

Here are some research approaches that can help:

• In-home or remote ethnography. Observe daily routines and behaviors. This would have revealed that “quick convenience meals” don’t mean the same thing to US families as to UK shoppers. This can be done in-person or using an online platform such as Field Notes (https://www.fieldnotes.space/) or a combination of the two.
• Storytelling and projective interviews. Ask people to talk about their earliest memories related to your product or service, their best or worst experiences, and their ideal experience. This uncovers the values and emotional drivers behind their decisions.

And don’t forget to test assumptions across American submarkets (urban vs. suburban, East vs. West Coast). What resonates in Seattle may not play the same in Houston.

It’s easy to underestimate how culturally specific customer expectations can be, especially in a country that looks, on the surface, familiar. But the gap between looks familiar and feels right is where brand traction is won or lost. That’s where qualitative research makes all the difference. If you’re entering or struggling to grow in the US market, we can help. Contact me at 818-588-6050 or jay@bureauwest.com and let’s discuss!

Sincerely,
Jay Zaltzman (he/him), President
Bureau West: Market Research ∙ Consulting ∙ Coaching
http://bureauwest.com/  jay@bureauwest.com  +1-818-588-6050

Sources: “How Novo Nordisk misread the US market for its weight loss sensation,” Reuters, July 1, 2025; “Tesco will pull out of U.S., sell Fresh & Easy,” USA Today, April 17, 2013