As inflation and prices continue to soar, consumers are losing confidence to spend. In fact, according to the University of Michigan, the Consumer Sentiment Index is now at its lowest since 2011. Consumers are being forced to change their shopping habits and prioritize spending. A new report by First Insight pinpoints some of those consumer behavior shifts:
- 82% of consumers are looking for less expensive ways to shop due to inflation.
- Nearly all (97%) consumers are reprioritizing how they spend.
- Groceries ranked as the most important (56%) priority, followed by gasoline (43%), housing costs (29%) and health care (18%).
- 48% percent of consumers say that they will reduce their spend on dining out, with 33% cutting back on groceries, 32% on entertainment, 32% on gasoline, 31% on apparel/footwear/accessories, and 23% on vacations.
Here’s the point: Pretty much everyone is trying to spend less on everything. That means more competition for customers – and those customers are looking for better deals. That also means advertising, marketing and outreach need to be more nimble than ever. We have ideas and solutions. We’re ready when you are.