A whopping 93% of respondents said they have noticed that items they ordinarily purchase are now more expensive, and 78% said they are “a little” to “very worried” about their current financial situation.
These findings are according to a new study from cultural intelligence firm Collage Group, which also found that brands should avoid certain language about the economic outlook when addressing consumers.
Data from the analysis, “Guard Against Recession with Cultural Insights,” cautions brands to refrain from using terms like ‘the economy,’ ‘recession,’ and ‘inflation’ as these phrases may trigger backlash from consumers.
“These words polarize buyers, and once they hear them, there’s a tendency to absorb the message as loaded or too political,” explained David Evans, chief product officer at Collage Group. “I recommend brands avoid playing into the economic anxiety.”
Evans instructs brands to connect around personal finance issues and look to address everyday problems such as paying down debt, and managing escalating costs.
Another 93% of consumers want brands to do something to help them, with the top actions being to offer discounts, cut prices, and provide lower cost versions or packaging.
It is critical for brands to recognize that consumers are navigating the waters differently, especially across racial and ethnic segments, according to the study.
Collage…
