The New Value Economy: Impact of Cost-of-Living on the Purchase Journey
Is there another more over-used phrase in the zeitgeist now than ‘cost of living’? Our emergence from the pandemic has left us with a new world order; one full of inflationary pressures, squeezing people where it hurts most — their rents, mortgages, and their everyday essentials. The dust is still settling as we continue to see Australia and New Zealand’s consumer confidence drop, interest rates refusing to level out, and the threat of volatile unemployment levels on the horizon.
As the economic downturn continues to play out, one of the primary questions is, “how are people coping and adapting?”. To find out, we surveyed 1,000 people across Australia and New Zealand in May 2024, asking consumers about their emotional state and consumer habits.
They told us that they’re feeling anxious, and it’s threatening our typically optimistic antipodean outlook. Cost-of-living is now a concern for all income earners and key demographics, translating to an overriding focus on value for money when it comes to purchase decisions. People are happy to make trade-offs between brands and products. It means the typical consumer purchase journey is likely to have been decelerated, as people spend more time in exploration and evaluation modes to research, compare, validate and more often, make a switch.
For marketers and brands, it’s an uncertain climate that begs for increased consumer empathy, to remain relevant, considered and chosen. And is there a silver lining in our modern age of anxiety? Perhaps slightly. People are prioritising their mental wellbeing above all else, with a holistic mindset applied to how they view their life in general. Brands that can rise to the challenge to meet their customers’ emotional mindsets and needs by reframing their value will win.
Click here to download this white paper as a PDF.
