Report: 59% of U.S. Consumers Are Buying Less Expensive Brands to Combat Inflation
Jungle Scout’s Q2 2022 Consumer Trends Report reveals that consumers continue to spend despite rising costs and stagnant incomes; social media and affordability influence purchase behavior.
Jungle Scout, the leading all-in-one platform for ecommerce sellers, released its Q2 2022 Consumer Trends Report, a quarterly study of U.S. consumers that explores spending and ecommerce trends. The report finds that 59% of consumers are buying less expensive brands to cut costs. While inflation continues to impact consumer spending, social media, pricing, and brand loyalty are key factors in shopping behavior.
Key insights from the report include:
Social media and advertising significantly influence consumer purchases and their opinions of brands.
- 35% have purchased a product after watching a social media brand’s livestream.
- 42% say being “followed” around the internet by ads is a helpful reminder, while 32% say they are “creeped out” by the tactic.
- YouTube is the most trusted social media platform for finding and purchasing products, followed by Facebook and Instagram.
Brand loyalty is at stake as consumers prioritize affordability.
- 48% of consumers are more likely to shop from a brand that has consistently lower prices.
- Consumers’ willingness to switch to a new brand if it is more affordable increased 12% quarter-over-quarter.
“Despite concerns about inflation, consumers are still investing in the retail economy and are turning to ecommerce for the best deals. What’s changing is the products consumers buy and the factors that influence their purchase decisions,” says Mike Scheschuk, CMO of Jungle Scout. “Brands need to reassess their strategy as social media and affordability reshape the retail landscape. By optimizing their online presence, brands can engage with customers, better understand their needs, and secure loyalty in these uncertain economic times.”
Additional findings include:
Millennials are less likely to sacrifice their shopping habits to cut costs compared to Baby Boomers.
- Baby Boomers are nearly twice as likely as Millennials to go without some products to cut costs.
- Only 35% of Millenials would buy a less expensive brand to save money.
- Baby Boomers are more likely to shop in-store to cut down on shipping costs.
Two of three U.S. consumers shop on Amazon, and most are loyal Prime members.
- 47% of consumers are likely to shop on Prime Day this year.
- Low product pricing is the top reason people choose Amazon.
- Nearly 90% of consumers will likely keep their Prime membership for another year.
- 45% said the new cost of Prime membership doesn’t bother them.