It happened to my cousin. His mom (my aunt) mentions that he started stuttering after that. And he is still very much afraid of dogs. People back there undertand that fear.
Here in US, it is more "Oh, don't be afraid of Fluffy, he's fine, just pet him". Telling them someone is afraid of them is just inviting ridicule. A co-worker I knew was just telling people he is alergic. He was from India, and figured we Americans understand alergies pretty well, so he said that explanation worked better than explaining his phobia.