Consumer Reactions to Tariffs and Price Increases
Tariffs and the potential for new tariffs influence consumer perceptions of prices, leading to changes in shopping behaviors. A survey revealed that 72% of consumers have adjusted their habits due to rising costs, often opting for cheaper brands, shopping at discount retailers, stocking up on items, and delaying non-essential purchases.
Consumers expect brands to explain the reasons for price increases, with 91% wanting transparency and 48% specifically interested in disclosures related to tariffs. To address this, brands should adopt transparent pricing strategies, offer compelling promotions, and prioritize maintaining customer trust to avoid declines in sales.
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Collage will continue to track consumers’ reactions to tariffs and price increases.
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