A new report has found that a significant number of consumers turn to less expensive brands in response to rising costs.
Most consumers turn to less expensive brands to combat the costs of inflation
Jungle Scout’s second-quarter 2022 consumer trend report showed that 59% of consumers are not simply slowing down spending during current inflation, but are finding cheaper alternatives to the products they want. The report also notes that while inflation continues to affect consumer spending, social media, pricing and brand loyalty remain key factors in consumer behavior.
Valuable information on consumer behavior during inflation
Jungle Scout was founded in 2015 as Amazon’s first product research tool and is now the leading all-in-one platform for Amazon e-commerce marketers, with more than $ 40 billion in annual revenue of Amazon.
The company conducted its anonymous survey between May 6 and 10, 2022, surveying 1,000 American consumers about their preferences and buying behaviors. Respondents represented 48 different U.S. states, included all genders, and were between 18 and 75 years old or older. Respondents were also of a wide variety of employment types and income levels.
The results published by Jungle Scout show that 35% of consumers have bought a product after watching the live broadcast of a social media brand. Another 42% say being “followed” by the Internet for ads is a useful reminder, although 32% say the tactic lands them.
Nearly half of consumers are more likely to buy at a brand that has consistently lower prices, while their willingness to switch to a new brand if it is more affordable increased by 12% quarterly.
The most reliable social media platform for finding and buying products was YouTube, followed by Facebook and Instagram.
Consumers “still investing” in the retail economy
Jungle Scout CMO Mike Scheschuk said of his company’s findings: “Despite concerns about inflation, consumers are still investing in the retail economy and are turning to e-commerce for the best deals.
“What is changing are the products that consumers buy and the factors that influence their purchasing decisions. Brands need to re-evaluate their strategy as social media and affordability reshape the retail landscape. By optimizing their online presence, brands can relate to customers, better understand their needs, and ensure loyalty in these uncertain economic times. ”
The report highlights generational differences
The Jungle Scout report also revealed different behavioral changes depending on which generation the consumer was. The survey showed that millennials were less likely to sacrifice their shopping habits to reduce costs compared to baby boomers, who were almost twice as likely as millennials not to have some products to reduce costs. .
Only 35% of millennials would buy a less expensive brand to save money, while baby boomers are more likely to buy at the store so they don’t have to pay for shipping.
The report also noted that two of the three U.S. consumers buy from Amazon, most of whom are loyal members of Prime. Just under half of these said they will likely buy Prime Day this year, and about 90% of Amazon Prime members surveyed said they will likely keep their Prime subscription for another year.
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