Sixty-eight percent of consumers report they feel taken advantage of when brands use dynamic pricing, according to a survey by Gartner.
A Gartner Consumer Community survey of 303 US consumers conducted in October 2024 found that 80% agreed that brands that have consistent pricing are more trustworthy, and 42% would be willing to spend more on a product if consistent pricing was guaranteed.
Seventy nine percent of 1 532 respondents to Gartner’s 2024 Cultural Attitudes and Behavior Survey conducted in September and October 2024 reported experiencing an unexpected price scenario in the last year, ranging from surge pricing to hidden fees to unforeseen rate hikes.
“While inflation may have eased, suspicion and frustration have not – and these negative sentiments are fueling distrust and price paranoia,” says Kate Muhl, vice-president analyst in the Gartner Marketing practice. “As a result, consumer loyalty is diminished and the brand relationship hardens into something more adversarial.
“Marketing leaders must demonstrate price stability and bolster customer retention with price-stabilizing tools and perks for loyalty program members. In categories with more price volatility, empower consumers to make the most of a fast-paced market.”
In this post-inflation era, consumers are reframing thrift as aspirational, giving cache to a growing trend of conspicuous underconsumption. While saving money is a driver, 68% of consumers cite intrinsic or self-improvement motivations for reducing consumption, and 33% of Gartner Consumer Community respondents note that a benefit of resisting consumerism is being able to tell others about it.
“These consumers are embracing frugality to regain control after years of inflation-driven thrift. They are intentionally reducing consumption and curbing wasteful habits, with the added benefit of saving money,” says Muhl. “Leaders should lean into playful austerity and support consumers’ efforts to go bare bones.”
As consumers’ experiences become increasingly in sync with their personal behaviors and preferences, they are seeking an objective understanding of their position within the broader societal context.
“Norming” offers them a counterbalance to the narrow focus created by constant personalisation. In fact, a large majority (82%) of consumers report doing at least one “norming” activity in the past year, whether crowdsourcing opinions in an online community to see if others respond or think similarly to them, or comparing consumption habits or financial progress.
“At a time when consumers feel adrift in uncertainty, marketing leaders should avoid over-relying on interactive decision tools like quizzes and suggestion engines – these emphasise individual consumer needs, which can feel isolating and provoke skepticism,” says Muhl. “Consumers value context for its own sake, so marketing leaders should provide them with insights that help them understand themselves within a broader context rather than solely guiding them to a product decision.”
Human-free automation technologies are driving engagement and fostering greater connection and interest in future experiences.
When asked about automated tech (suc as delivery drones, cashier-less stores), 74% of consumers express openness to the tech, with 30% already having tried and would use at least one of these technologies again.
“Marketing leaders must ensure the transactional benefits of human-free automated services or experiences, such as speed and convenience, are prioritized. It’s also important to lean into more intrinsic drivers such as novelty and fun, to reinforce and enhance the experience,” says Muhl.
Consumer behavior has always been influenced by age and life stage, but baby boomers stand out now more than ever. They continue to thrive and express greater confidence than younger groups, which is intensifying cultural divides and posing challenges for brands trying to navigate these differences.
“While variations in consumer attitudes and behaviors across different life stages are anticipated, the generation gap with baby boomers signifies a deeper and more pressing issue. This is particularly important for leaders whose brands must forge genuine connections across generational cohorts,” says Muhl.
“Marketing leaders should use optimistic themes and traditional media strategies to engage baby boomers, while deploying smart social media strategies and more culturally sensitive themes to reach younger consumers.”