As the cost of living crisis continues to bite consumers expect brands to keep prices fair, freeze prices on value ranges and offer more price promotions. 

The latest data from the IPA reveals that the number of consumers looking to brands to help them through the cost of living crisis by keeping their prices fair has increased by 5% since May. While those wanting brands to freeze the price on their value-range products or services has leapt up by 22%. The data poses a significant challenge for brands looking to pass on price-increases to consumers and maintain premium pricing positions. 

The survey which asked consumers what they would most like brands to do to support customers during the cost of living crisis, revealed that price is a key differentiator. Consumers are seeking more value for money promotions, rewards for loyalty and increased numbers of promotions. 

Light relief is not enough

While creatives may be forgiven for believing in the midst of a seemingly endless negative news cycle consumers are craving light relief, the data paints a different picture. With ‘entertaining and making customers laugh and smile’ amongst the three least popular answers when considering brand sentiment. 

Notably, consumers are also less interested in direct engagement and affordable consumer finance such as interest free credit. 

The research also revealed gender and generational differences in how consumers are approaching the cost of living crisis. With 64% of women wanting brands to keep prices fair, compared with 55% of men.

By age those over 55 were most concerned with price and value with 71% of those over 55 wishing to keep prices fair, compared with 61% of 35 to 54 year olds and 42% of 18 to 34 year olds. 

Paul Bainsfair, Director General at the IPA, explained: “When we first carried out this poll back in May, inflation levels were at a 40-year high of 9.1% and now we have hit 10.1%. It is no wonder, therefore, that as the cost of living crisis really takes hold, consumers are continuing to look to brands to keep their pricing fair. While stretched themselves, brands must ensure they assess their pricing and subsequent marketing strategies accordingly, particularly when engaging with their female and older audiences for whom this need is even more pronounced.”

As the cost of living crisis continues to take its toll a number of brands and businesses have stepped up with empathy and authenticity. Heinz partnered with Morrisons to offer free school meals, while Publicis revealed it is investing €50m in an exceptional bonus to support employees. Progressive brands increasingly recognise that showing consumers or employees that you are in it together is far more valuable than empty words.

To read more on the cost of living crisis and how brands are responding click here.