Inflation is still a significant factor in consumer behavior even though the rate has declined, according to a survey conducted by R.R. Donnelley & Sons Co.
The survey revealed consumers across key demographic groups are shifting their shopping habits, prioritizing value over brand loyalty, favoring less expensive alternatives, hunting for bargains and avoiding products considered too costly, according to RRD, which provides marketing, packaging, print and supply chain services.
In the survey of more than 1,800 adults in the United States, 55% of consumer respondents said they would stay loyal to the store they shop at most often. In contrast, 45% of all respondents and 50% Millennials are open to changing stores for greater savings. Baby Boomers, at 61%, and affluent consumers, at 64%, overindex for brand loyalty.
After watching prices rise, 88% of consumers expressed frustration with inflation across categories, including groceries, gas and restaurants. Some 86% of respondents are frustrated with inflation as it affects grocery shopping overall, driven by the rising costs of food and beverages cited by 80%, RRD maintained.
Under the circumstances, consumers are adjusting their shopping behaviors by stocking up during sales, as noted by 41%; purchasing fewer items, 37%; switching to less-expensive name brands, 37%; switching from name brands to private label brands, 35%; using more coupons and discounts, 34%; and sticking to their shopping lists, 32%.
Coupon redemption in mass-market and variety/discount stores increased by 9% and 37%, respectively, versus the first half of 2023, RRD pointed out, suggesting the importance of brands offering value-oriented options to consumers.
Still, price isn’t the only factor affecting shopping choices, as 68% of consumers said convenience and proximity to their homes factor in, with Baby Boomers valuing close proximity the most, at 76%. That being said, 32% of shoppers report they look for an engaging shopping experience even when stores are located farther away than others, especially GenZers, 39%; Millennials, 37%; and parents, 38%.
In retailer or brand selection, fair prices are deemed to be the biggest priority for consumers, at 58%, up five points compared to the survey RRD conducted last year, the company noted. High-quality products, cited by 45%, and coupons and discounts, 41%, can be critical to shopping decisions as well. Data privacy, cited by 39%, also influences consumer decision-making, up 19 points year over year. Other factors that influence shopping decisions include the availability of relevant deals (59%), personalized discounts (55%) and tailored recommendations (52%). Geography plays into purchasing decisions in more ways than one, as 57% of consumers prefer to shop at stores that feature locally grown, raised or produced products, and 56% said they would like to see more advertising for products produced or grown close to where they live.
