Spending money culture in the US versus the rest of the world
I would like to warn you in advance that I do not want to offend any culture or country with this post. It only demonstrates observations from my own experience.
6 months ago, I had a conversation with a friend and we got to the topic of money.
That conversation concluded that Americans 🇺🇸 were born with a wallet in their hand and have no problem paying for products (any, even less useful ones) while other countries are very hesitant.
When I worked in customer support, I noticed that the least willingness to pay or the most complaints on pricing came from people from India 🇮🇳 and some European countries. 🇪🇺 (*The pricing tiers were customised to regions.)
People from Africa 🌍, India 🇮🇳 and Turkey 🇹🇷 asked for a free product or a discounted price the most.
And people from China 🇨🇳 or Japan 🇯🇵 had no problem paying.
🌍 What "spending money" culture have you observed from your own experience? Can you also share the product you offer? Because the pricing matters as well as the industry.
🤔 Why is it so like that? [your guess]
👛 Do you think that Americans are the most open when it comes to buying products? Or do you consider any other nation to be more prone to spend money?
Replies
App Finder
It's clear why people in low-income countries are on average more hesitant to spend money.
I think prices for these countries should be significantly adjusted in most cases, as I've explained here.
After making such adjustments, my feeling is that the percentage of users paying for my B2C SaaS from India and other low-income countries is not much less than that from the US.
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@konrad_sx The thing is that we adjusted prices, but they still referred to them as "too much". IMO, in many cases they want the product, but do not want to pay for that.
App Finder
@busmark_w_nika Yes, those people exist (but also in the US from my experience)
Great observations Nika!
As someone from India, I'd like to offer a perspective on your observations. In India, our approach to spending is influenced by our culture and economic backgrounds. There are wide, visible gaps between the rich, middle and poor classes. Consider this statistic - The richest 10% of Indians hold almost 80% of the country's wealth and within this 10%, the top 1% alone posses 40% of the total wealth. There isn't a concrete wealth distribution for the remaining 90%, but the bottom 50% (about 700 million) possesses only 6.4% of the total wealth.
Most of us would not want to spend on something unless we are confident that it is worth it. Value matters a lot to us. We often prioritize the best deals and might hesitate spending on something that don't offer significant perceived value. This is not necessarily reluctance; rather, it reflects a cultural inclination towards prudence and long-term planning.
For us, it's more about prioritizing financial stability and making informed choices than experimenting and regretting later. And in no way I am generalizing this for every Indian. I have seen many people spend without much research or haggling, but even then people do set the limits on expenditure based on their household income :)
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@pranay12 Also noticed, that people from India are very techy. Isn't it for them better and more beneficial to "replicate" the thing? Like building their own version rather than relying on someone's else good deed to give a discount?
@busmark_w_nika While I am not very well informed on how the decision makers in most companies think, given that I have worked in 3 different organizations so far, I have observed that while people here do go for in-house solutions in many cases, building such solutions takes time. If a considerable amount of time can be saved by acquiring an external solution with an appropriate pricing, then investing in it is considered a better choice.
Considering how fast technology is evolving, businesses would definitely be at a loss if they become outdated simply because they decide to save up where they are actually supposed to spend.
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@pranay12 B2B and B2C can be slightly different. I have seen that "discount/negotiation" approach in B2C. But you can have experience from B2B – would like to hear about that difference :)
@busmark_w_nika Indeed, there's a slight difference! The negotiation approach shifts a bit when it comes to B2B. It’s less about asking for discounts outright and more about ensuring the deal aligns with long-term value. That said, there’s still some haggling, but it’s more subtle like negotiating extra features or support instead of a straight discount.
As a Chinese 🇨🇳 user, I am more willing to pay a one-time purchase fee for independent apps that I recognize and appreciate. For products with long-term subscriptions, I would prefer to receive some limited-time discounts, as this would make me more inclined to continue paying for the service. If my discount were to disappear, I would then choose to cancel the subscription or switch to another product.
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I am the same, especially when it comes to one-time purchases. But when there is no discount I could find on the internet, I still buy it because of the necessity an practical point of view.
Tempo-Pulse
@busmark_w_nika same with you!
From my own experience (and I have worked with many countries/regions during my international career), the people from the Middle East, just love to haggle and reduce the price (in some cases absolutely unreasonable). Its just in their blood, even more if you do not give them the discounts, they can take it personally and get offended. Be informed and take it into account for pricing tiers.
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@theonebroker aaa, I am glad you mentioned that. I almost forgot that this is like their tradition. I observed it in brick-mortar shops, and totally didn't take it into account offline :)
@theonebroker Totally agree. From my experience in Africa and Turkey, bargaining is a part of the social ritual at the market. I haven’t been to India, but I assume haggling is also something expected when parting with money. If you buy something at full price, even the seller might not understand you. They might even think, “Am I such an unpleasant person that people don’t even want to bargain with me?”
I work in SaaS — and you’re right, pricing sensitivity really depends on region. I’ve seen that trust in the brand and perceived value matter more than actual price for some countries (like Japan or US).
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@tomina_veronika True true true – this is true. Many people asked about customer support – Where is the company based? They are also very data-sensitive.
WOV
Singapore is a💎 as far as I have known. They too had no problem paying as long as you meet their terms and policies and expectations.
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@indu_thangamuthu Could be. With people from Singapore I haven't been so often but their life standard is quite high.
Spot on observations.
USA, Canada & parts of East Asia don’t hesitate to pay if they see value. Simple.
India is price-sensitive markets. They recognize value but are more savings-focused, making careful spending decisions. Middle East will spend, but deals and discounts are part of the game.
Western Europe is generally more open to spending, while Eastern Europe is more budget-conscious.
Australians are tough negotiators, but if your product is solid, they’ll pay up( it has been a few years since i interacted with them. So, not sure if it still holds true)
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@rameshkumar_astravue Do you have experience with Australians? What are they like? Because this area is the least covered by me :D
Maybe it also depends on the cost sensitivity. I would say that in the US, many things are pricy so Americans are somehow used to paying more. But I do not want to stigmatise.
Nika, you've raised some important points about cultural differences in consumer behavior! This is especially relevant in the context of AI avatars, which are increasingly used in global marketing.
For example, a marketing strategy that works well in the US might be a complete failure in Japan due to different cultural expectations around communication style, appearance, and even the level of 'realism' in a digital representation.
We're hosting a free webinar on April 2nd that explores these cultural nuances and provides practical strategies for using AI avatars effectively in global markets. It could be a useful resource for this discussion!
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@oleksandr_naumov Do you have any observations and case studies on this?
@busmark_w_nika Hey Nika, great question! It's something I've been noticing more and more in my daily work too - how people react to AI avatars. I can see it in everything from customer service to entertainment, and it's fascinating.
I've been wondering why certain avatars feel trustworthy and others... you. know creepy. And it's definitely more than just the tech. That's why I got really interested in the psychology and cultural aspects of it.
I actually came across a researcher, who's done some serious work on this – like, dissertation-level stuff. She's explored how people's brains process these digital personas, and it's pretty eye-opening.
If you're curious about this too, she's sharing some of her insights in a free webinar. It's on April 2nd. I'm planning to tune in to learn more about the psychology behind it all. If it's helpful, I can share some of the key takeaways here afterward! 😉
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Where is the link? :D + is there any scientific paper/case-study/report I could read? :)
From what I’ve seen in Indonesia, willingness to pay really depends on context—interest, necessity, and income level play huge roles. For example, many of my coworkers and friends happily pay for leisure subs like Netflix/Spotify but get creative with 'workarounds' for other services (like borrowing company Zoom accounts for personal use 😅). Meanwhile, wealthier Indonesians don’t blink at spending, whether for leisure or essentials.
That said, most Indonesians are middle-to-lower income, so efficiency is key. If there’s a free or cheaper alternative, why not? Even some affluent folks think this way—who doesn’t love a good deal, right?
I’d guess this mindset stems from a mix of practicality and cultural thriftiness. Unlike the US (where convenience often trumps cost), many here weigh value more carefully—unless it’s something they truly want or need!
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@rani_zagita I would say that maybe Indonesian and also Slovak people think twice about whether to pay... but from my experience, most Americans first paid for the product and then asked about the product. :D
@busmark_w_nika Haha, totally get what you mean! 😄 Many Asians (including us Indonesians) tend to grill sellers with ‘Wait, explain exactly what I get for this price?’ before pulling out our wallets. It’s like a cultural reflex—we need to see the value mapped out like a spreadsheet first! 📊
That’s probably why so many companies here offer tiered packages (Basic/Pro/Premium, etc.). Gotta let customers feel in control—‘Ooh, this mid-tier fits my budget AND gives me extra features? Sold!’ Even the rich will still compare options. Smart marketing, really.
I think for both China and Japan, people place more emphasis on the practicality of the product, and tend to try a product first. If they find the product practical and useful, they will be willing to pay for it directly.
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Good point. I didn't know about this. They purchased my sponsorships so they didn't have a chance to test anything. They bet on me (and I appreciate that).
Interesting observations! But payment habits often tie closer to economic structures and product-market fit than pure culture. For example:
India/Africa: High price sensitivity, but booming willingness to pay for upskilling tools (e.g., Unacademy).
US: Subscription fatigue is real, but credit card fluidity still rules.
China: Obsession with efficiency tools (e.g., Feishu), but conversion relies on free trials → WeChat-style funnels.
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Do you somehow analyse a market? It is interesting to read such things from psychological/marketing perspective :)