In the four Hogwarts Houses ― as part of the Harry Potter series ― Hufflepuff members are known for their strong sense of justice, patience, hard work and of course loyalty. In the consumer packaged goods market, brand loyalty has been vital for the long-term health of these products and services. Yet, as today’s consumers feel the pinch of inflation, research shows that price increases are challenging shoppers’ loyalty to brands.
Consumer research platform Attest explored this in a survey earlier this year with 2,000 nationally representative working-age consumers based in the United States. What the company found was that a “negative experience” with a brand (33%) and price increases (32%) were the top reasons that a shopper would stop buying a brand’s product or service.
The research found that inflation is having an over-arching impact on brand loyalty as eight in 10 (88%) of respondents indicated they are willing to try alternative products and services because of pricing.
And it looks like food and beverage brands were the most susceptible to product switching with 71% of respondents noting they would switch to save money. Additionally groceries were named by 75% of respondents as the type of products that have seen the most rapid rise in prices.
This also comes as more consumers view price increases as less a result of inflation but as a means to increase brand revenue. Attest research shows that 80% of shoppers think that brands are participating in “greedflation,” the concept of using inflation as an excuse to increase prices.
“Inflation has pushed people to a breaking point and called into question some long-held beliefs about consumer behavior,” said Jeremy King, CEO and Founder of Attest, in a statement. “Brand loyalty is under incredible pressure and a wide majority feel like they’re suffering the effects of ‘greedflation’ at the hands of brands. Meanwhile, nearly a third will simply give up on a brand that raises costs.”
With brand owners navigating the fine line of controlling costs and nurturing consumer relationships, many will be interested to see how consumers across all demographics respond to potential pricing shifts.