New research has revealed what makes British consumers break up with brands, views on how brands are acting in response to inflation and the ways high-profile controversies affect consumer behaviour.
Attest, a consumer research platform, found that inflation is making a majority of consumers reconsider long-held brand loyalty, with nine in 10 (92%) saying they are now willing to try different products and services due to price pressures.
- Cigarettes & alcohol have the highest brand loyalty: When asked what type of product they are most likely to switch brands to save money, alcohol and tobacco (at 11%) ranked lowest out of all categories, highlighting the brand loyalty such products have with the British public. Conversely, grocery brands top the poll with 73% of consumers willing to switch, followed by clothing/shoes (38%) and energy (34%).
- A majority think brands are price gouging due to inflation: The vast majority of shoppers (at 79%) feel that brands are involved in “greedflation”. Of this majority, 71% believe “more needs to be done” to protect consumers and stop brands from benefiting from this practice.
- Consumers feel food & energy companies lifted prices the most: When quizzed on what types of products have experienced the most rapid rises in their opinion, groceries (at 65%) and energy (62%) are the most cited, with travel (28%) far behind.
Consumers are divided over the number one reason they would stop buying a brand’s product/service. Price increases and having a “negative experience” with a brand are in joint top spot (both at 30%), followed by bad customer service (18%).
When brands do bad, consumers want transparency
The research identifies another factor alongside inflation that is diminishing brand loyalty: public controversy.
In this environment, brands are under even more pressure to avoid PR, advertising and product disasters. But, if a blunder does arise, the research also delves into consumers’ views on companies caught up in high-profile controversies and how they can set the record straight:
- People are split on how to respond: The most likely response from Britons is to boycott/stop buying a brand’s products and services “immediately”, with a third (33%) favouring this approach.
○ By contrast, however, 30% are much more forgiving and are willing to give a brand time to issue a statement before making up their mind.
○ While social media plays a key role for 19% of people, who will either unfollow a brand or publish public posts disapproving of a company involved in a controversy.
- Consumers most concerned by brand racism and treatment of animals: An accusation of racism when a brand is involved in a controversy is the top issue that concerns the public (at 42%).
○ This is followed by accusations of poor treatment of animals (38%), bad treatment of employees (35%), discrimination (based on people with disabilities, religion, and sexual orientation, at 33%), sexism (24%) and “greenwashing” (22%).
○ A combined 20% of consumers are concerned with brands involved in political controversies:
■ 11% express concern if a brand was accused of right-wing, socially conservative politics.
■ While 9% would feel the same way regarding accusations of left-wing, socially liberal politics.
- Consumers value transparency the most during a controversy: A majority of 54% want a brand involved in a high-profile controversy to provide full transparency and steps on how they will fix it.
○ 51% will be happy with the issuance of a public apology alone.
○ Other remedies favoured by people include removing the person responsible (33%), offering a discount/refund (27%) and providing services to lodge complaints (20%).
