Consumers have reached a breaking point

By: Trademagazin editor Date: 2022. 11. 05. 14:34

The 2024 August Awareness-to-Action Study by RRD in partnership with Prosper Insights & Analytics highlights that, under increasing economic pressure, consumers are now prioritizing value, convenience, and personalized experiences when making purchasing decisions.

Due to inflation driving up food expenses over the past two years, consumer behavior has shifted to a more price-conscious approach, with a focus on affordable alternatives and a growing reluctance toward overly expensive items. Although brand loyalty remains a factor, it’s no longer guaranteed, as value has become more important, prompting companies to rethink strategies to attract and retain customers. The study, based on a survey of over 2,000 American consumers and marketers, explores how these evolving priorities are reshaping the market and what brands need to do to stay relevant in this new economic landscape.

Overall consumer frustration over price increases

Consumers across all ages and income levels are frustrated by rising prices, with 88% expressing dissatisfaction with cost increases across categories. In particular, 87% of baby boomers are concerned about food prices, and even among affluent households earning over $100,000 annually, 79% share this sentiment. Food price hikes are seen as highly burdensome by 46% of respondents, while 34% find them somewhat burdensome.

Shoppers’ strategies

Every dollar counts for consumers, and they are adjusting their grocery shopping habits accordingly. Stocking up during sales and switching to store brands illustrate how they are adapting to economic pressures.

source: RRD Awareness-to-Action Study, August 2024, n=1,827

About 58% of consumers shop with a list, and 49% dine out less often, opting to spend more on home-cooked meals instead. To save money, 43% are willing to travel extra distances. Coupons are also popular, with 54% appreciating coupons through mailed ads or postcards and 51% favoring coupon booklets from magazines or direct mail.

Factors driving shoppers’ decisions

When it comes to shopping, price isn’t the only factor guiding consumer decisions. Shoppers are looking for a balance of convenience, experience, and value. For 68% of consumers, proximity and convenience are top priorities. Meanwhile, 32% enjoy stores that offer a unique shopping experience, even if it means traveling a greater distance

MarTech investments planned by retailers in the next 12-24 months

Source: RRD Awareness-to-Action Study, August 2024, n=1,827

Consumers want convenience, value and personalization

Consumers are focused on convenience, value, and personalization in their shopping experiences, but aligning retail strategies with these priorities remains challenging for lasting loyalty. Affordable prices are the top priority for 58%, 5%point up from 2023, followed by a preference for high-quality products (45%) and special deals (41%). Consumers’ concerns about data privacy have also risen, with 39% worried about protecting personal data—a 19% increase from last year. Additionally, 55% of shoppers remain loyal to their main store, yet inflation and a desire to save (57%) threaten loyalty, especially among younger consumers.

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