To assess changes in consumer behavior in times of inflation, Vericast, a leading marketing solutions company, recently conducted a survey of 1,000 American adults and found that trying to make money last also weighs heavily on consumers’ minds. Particularly stressful factors – such as a loss of confidence in the ability to pay bills on time and buy basic necessities like food (70% expressed this sentiment) – pose a challenge for consumers.
As a result, consumers are more intentional in their spending to ease tensions and explore ways to cope with rising prices, such as buying more private labels, limiting spending in certain areas, and strategically allocating tax refunds. . Many also take advantage of meal discounts whenever possible.
With the ongoing challenges of rising operational costs, talent shortages, and supply chain bottlenecks, businesses face pressure from many directions. To sustain near- and long-term growth amid these hurdles, brands must prioritize staying on top of consumers’ minds in the moments that matter. Providing offers is brand-aware, but it’s more important than ever to target those offers based on audience interests, as well as aligning them with product availability.
“Our survey results reveal opportunities for brands and marketers to better engage with consumers by helping them navigate financial challenges in times of inflation,” said Dave Cesaro, Executive Director Client Strategy at Vericast. “As the dollar goes down, consumers are getting smarter with their money. Brands can build credibility and stand out from competitors by providing value in the form of discounts and offers, which can help consumers feeling more in control of their mental, physical and financial health given the fatigue of the past two years.”
Additional survey results include:
- Inflation leads to changes in buying behavior
- The survey indicated a strong desire to be smart about money and to limit spending. Seventy-two percent of respondents say they buy more store or private label products to save money.
- Millennials (77%) and Gen X (76%) have the highest number of respondents to describe this as their strategy.
- Although they change brands, many do not change stores. Sixty-four percent say they haven’t changed grocery stores in the past six months.
- Discounts are a priority among high prices
- The results show that brands and marketers should offer discounts more than ever, as 88% of consumers surveyed say a coupon would motivate them to try a new brand or store.
- While 31% limit spending on non-essential items as their best way to save money, seeking more coupons or discounts (13%) and shopping in the sale section (12%) are other ways to save.
- Restaurants are particularly at risk of losing customers
- When asked how restaurant behaviors have changed over the past six months, 61% of respondents said they dine out less often or order takeout.
- Sixty-seven percent of Gen X agreed, along with 62% of Gen Y.
- Only 27% said they hadn’t changed how often they dined out or ordered takeout in the past six months.
- Rising gasoline prices are also diverting consumer spending away from restaurants. According to recent datalimited-service and full-service restaurants are the main areas for spending cuts as gas prices rise.
- Spending will be limited between multiple categories
- Consumers identified clothing and accessories as the top category where their spending will be limited this year, followed by groceries.
- Dental health has also become a priority, with 29% saying inflation has an impact on their decision to seek dental care.
About Vericast
Vericast reinvents marketing solutions one human connection at a time. By influencing the way more than 120 million households eat, buy, buy, save and borrow, Vericast fuels commerce, drives economic growth and directly accelerates the earning potential of thousands of brands and businesses. While its award-winning portfolio of products, technologies and solutions is part of Vericast’s history, its people are the real differentiators; pioneers in data intelligence, marketing services, transaction solutions, campaign management and media delivery.
SOURCE Vericast
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