Horizon Media’s Why Group released its second inflation report, “Inflation Nation: One Year Later,” focused on analyzing current perceptions of the economic phenomenon to better understand the impact on American spending habits.
With the country facing its highest inflationary period in more than 40 years, the report surveyed nearly 1,000 adults across the US to determine what brands can do to help consumers navigate today’s rising prices.
For the survey, WHY Group segmented the population into groups: The Resilient, those who stick to spending as usual; The Anxious, participants who closely monitor investments to avoid hitting bottom; and The Vulnerable, the people who spare pennies and rearrange priorities to make room where it’s needed.
“The report’s findings indicate that the number 1 priority for companies should be to have full transparency about the factors that contribute to any price increases, be it supply chain issues, cost of products, etc. That’s a critical step, said Maxine Gurevich, senior vice president of Cultural Intelligence at Horizon Media. “After that, brands can benefit from raising awareness about the causes and corporate social responsibility they embrace, as people want to align with brands that genuinely care.”
The survey revealed that:
– Consistent with Horizon Media’s 2022 findings, roughly 9 in 10 Americans are aware of current inflation and more than two-thirds are concerned or very concerned.
– Among respondents, perceived root causes of inflation include: supply chain, Russian invasion of Ukraine, corporate greed, labor shortages, government spending, pent-up demand from the pandemic, and global warming /environmental problems.
– Nearly 7 in 10 say they are very worried about inflation, an increase of 10% since 2022. Also, more than 50% now say they are worse off than their parents.
– Overall, ad-supported subscriptions are up 7 points as people look to save money and get more entertainment options.
– Among the financially stable and least likely to change their spending habits, 43% are only “somewhat worried” about inflation and care more about brands stepping in to solve social problems.
– 59% who are highly price sensitive are cutting costs by reducing the things they like to do (up from 55% in 2022).
– In the youngest and most financially unstable group, the vulnerable 25% have more credit card debt in 2023.
“While the headline inflation rate is coming down, there have been noticeable changes in people’s financial outlook and spending habits due to this prolonged inflationary period,” Gurevich added. “It’s clear that the impact of inflation varies across basic sections of people, so it’s crucial for brands to think about how they can help Americans feel hopeful and retain customer loyalty as they adjust. family budgets.
While brands will need to continually “chase” consumers to earn their loyalty and willingness to spend a few more bucks on items, the report found that people are willing to spend money on brands that help them do good and feel good. with purchases.
For more details about the report, go here.
Keep reading:
US cities where inflation is rising the most through February 2023
· The items that have increased in price the most in the last year, up to February 2023
BLS reports that February YoY inflation was 6% in the United States