RRD Survey Reveals Consumer Frustration Over Increasing Prices

A recent survey by R.R. Donnelley & Sons Company (RRD) reveals that consumers across key demographic groups are at a tipping point, adjusting their shopping habits to prioritize value over brand loyalty. Shoppers are increasingly opting for less expensive alternatives, seeking bargains, and avoiding costly products as rising prices push them to make more deliberate purchasing decisions.

“Consumers are becoming more judicious with their purchasing decisions, largely due to the ongoing impact of external factors such as inflation,” said Beth Johnson, grocery industry expert and director of client strategy at RRD.

This insight comes from RRD’s annual 2024 CPG + Grocery Consumer Report, which examines how inflation is influencing consumer behavior. Based on a survey of over 1,800 U.S. adults, the report highlights shifting consumer priorities, behaviors, and expectations when shopping.

The report shows that brand loyalty is no longer assured. Only 55% of consumers said they would remain loyal to their preferred store, with baby boomers (61%) and affluent shoppers (64%) being the most loyal. Meanwhile, 45% are open to switching stores for better savings, especially among millennials (50%).

“Inflation is testing consumer loyalty, making it more critical than ever for marketers to adapt their strategies. Brands need to focus on value and savings to keep shoppers engaged,” added Johnson.

Key findings from the survey include:

Consumers Frustrated by Rising Prices

A significant 88% of consumers expressed frustration over rising prices across groceries, gas, and dining out, with grocery shopping being the most affected category (86%). This concern spans all age groups and income levels, with 87% of baby boomers and 79% of households earning over $100K highlighting frustration with food and beverage costs. Price sensitivity remains a universal issue, creating both challenges and opportunities for brands to meet consumers’ needs.

Shoppers Adapting to Stretch Their Budgets

To counter rising prices, consumers are changing their shopping habits by stocking up during sales (41%), buying fewer items (37%), switching to less-expensive brands (37%), opting for private labels (35%), using more coupons (34%), and sticking strictly to shopping lists (32%). Coupon use surged, particularly in discount stores, where it rose by 37% in the first half of 2024.

Consumers Consider More Than Just Price

While price remains a key factor, other considerations also influence shopping choices. Convenience and proximity were important for 68% of consumers, especially baby boomers (76%). Additionally, 32% of shoppers, particularly younger generations like Gen Z and millennials, value an engaging shopping experience, even if it requires traveling farther.

Shoppers Want Retailers to Understand Their Priorities

Consumers are clear about their expectations from grocery stores and CPG brands. They prioritize relevant deals (59%), personalized discounts (55%), and tailored recommendations (52%). Local products are also important, with 57% preferring stores that feature locally sourced items, and 56% wanting more advertising for nearby products.

When it comes to selecting stores or brands, fair pricing remains the top priority for 58% of consumers, up 5% from last year. High-quality products (45%) and coupons (41%) are also significant drivers. Notably, data privacy (39%) has become an important factor, up 19 points from 2023.

For the complete insights, view RRD’s 2024 CPG + Grocery Report.

Survey Methodology

RRD surveyed more than 1,800 consumers of various demographics and income levels to gauge their attitudes, goals, and shopping behaviors. Additionally, over 200 decision-makers from U.S.-based grocery, drug, and mass retailers were polled. Respondents were involved in marketing, digital, omnichannel, eCommerce, in-store technology, and merchandising functions within their organizations.

About RRD

RRD is a global provider of marketing, packaging, print, and supply chain solutions, offering end-to-end services that transform customer touchpoints into impactful moments. With a worldwide network of resources, creative execution, and proprietary technologies, RRD helps brands engage customers throughout their journey.

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