Modern consumer behavior mimics their parents, says Ukraine business consortium
About 58% of consumers save on food and heating (Photo:Martijn Baudoin \ Unsplash)
Modern consumer behavior is similar to that of their parents and grandparents from the '70s and ‘80s, due to the high rate of inflation, the Retail Association of Ukraine reported on Nov. 29, citing research from Information Resources, Inc (IRI).
According to the IRI, consumers are having to constantly adapt to rising grocery and energy prices, despite slow or stagnant wage growth. This has resulted in 58% of consumers cutting down on essentials such as food and heating, and has forced 35% to rely on personal savings and credit to pay their bills.
IRI research indicates that 30% of European consumers have changed from their usual stores to get a better deal, 26% go to another shop if they can't buy their regular brands, and 34% will seek other shops if there are no promotions for goods they want to buy.
Additionally, 22% of European consumers report traveling less, while 21% plan their budgets ahead of time, engaging in cost-cutting activities such as:
- comparing prices for similar products more often (58%);
- estimating their needs to use and waste less (49%);
- more often looking for reduced-price items even if they are out of date (40%).
European consumers in general are cooking at home more often instead of eating out, and when eating out, choosing more value-friendly menu options, the IRI states.
This research was conducted on 14 major markets in Europe, the U.S. and Asia Pacific.
A recent forecast by the IMF has predicted gloomier prospects for the global economy, especially in Europe – blaming the slowdown in growth on tightened monetary policy, weak Chinese growth, and ongoing supply disruptions and food insecurity caused by Russia’s full-scale invasion of Ukraine.
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