New Ideagen report reveals ways businesses can thrive during cost-of-living crisis
Businesses need to emphasise their quality and safety credentials if they want to thrive in the current economic climate - that’s just one of the findings from the latest Ideagen insight report.
More than 2,000 consumers were surveyed for the research, “Building trust in uncertain times”, which looks at the different factors currently impacting how people choose to spend their money on a range of goods and services, from medicine and food through to financial services and travel.
It’s hoped the findings will support businesses to navigate the current cost-of-living crisis and help them make decisions to cement their relationships with customers.
Speaking about the report, Ben Dorks, Ideagen CEO said: “Businesses are walking the fine line between cost and quality and these results suggest they can’t afford to cut corners, even in poor economic climates.
“People are paying more for goods and services and expect to see and feel more for their money. Our report underscores the ongoing importance of quality and safety for consumers and the need for companies to prioritise it.
“While cost continues to be important, it goes hand in hand with quality, and people aren’t willing to compromise on the latter despite challenging times.”
The findings showed that the majority of people (58%) are more focussed on the price of goods than they were 12-months ago, but nearly a third (31%) of those spoken to said that the quality of products and services were more important now than before the cost-of-living crisis, suggesting that while people expect to pay more for their goods, they won’t compromise on quality. This figure was even greater for Gen Z and Millennials, with over half (54%) of 18 to 24-year-olds and 43% of 25 to 34-year-olds putting more emphasis on quality than a year ago.
The report also looks at the considerations people make for different purchase types, for example quality is top over price and convenience when it comes to food and medicine, while 29% said safety was a deciding factor when buying a flight and 17% said the same for financial services purchases.
Perhaps surprisingly the importance placed on reviews is at an all-time low, with 44% of consumers citing them as the least important factor when determining quality. More emphasis was placed on quality and assurance marks such as Fairtrade or British Lion Quality which 76% of those questioned said they considered before purchasing products and services.
Another interesting finding was the lasting impact of bad-news stories. Two thirds (65%) were aware of BSE (mad cow disease) in the 1990s, 62% were conscious of the 1980s salmonella scandal and half (54%) of horse meat in the food supply chain in the early 2010s.
Significantly, these events still impact today’s consumers, with nearly quarter (24%) saying these news events influence their purchasing decisions, highlighting the lasting impact that quality issues can have on consumer trust.
To read the full report and see the detailed survey findings, click here.