NEWS27 May 2022

Consumers want fair pricing from brands in response to inflation rise

News Retail Trends UK

UK – Instead of looking to brands to entertain us through the cost-of-living crisis, consumers want them to focus on fair pricing and value for money, according to a nationally representative survey of 2,000 adults commissioned by the Institute of Practitioners in Advertising (IPA) and carried out by Opinium.

A ball balancing the words value and price

In response to the question, what would consumers like brands to do to support them through the cost-of-living crisis, the most popular ways cited were keep prices fair ( 57%); freeze price on value-range products or services ( 36%); offer more value-for-money promotions ( 33%); reward existing customers’ loyalty ( 30%); and increase the number of promotions they offer ( 28%).

In terms of the top preference of brands keeping prices fair, this was desired more acutely by women than men ( 62% vs 52%), and even more so by those aged 55+ ( 72% vs 36% of 18-34s).

At the other end of the scale, however, consumers are least in favour of brands taking the following actions: entertaining and making customers laugh/smile ( 5%); engaging directly with customers to develop new solutions and ideas ( 8%); and offering affordable customer finance ( 10%).

In terms of consumers not wanting brands to entertain them, this is five times more unwanted among the older generations aged 55+ ( 2%) than by those aged 18-34% at 10%.

IPA director general Paul Bainsfair said: “The cost-of-living crisis is a serious issue, especially for those at the older end of the spectrum, so it is understandable that consumers aren’t looking to brands to provide the fun but to provide help where it hits hardest – their finances.

“With further pressures forecast this won’t be easy for brands to navigate but, as the data shows, those that are fair and transparent with their pricing and value proposition may well fare better in their customers’ eyes going forward.”