More than half of Australians are buying less because of cost-of-living crisis, according to insights from analytics platform Bazaarvoice. Its research also found 57% of consumers have switched to cheaper brands and 54% have chosen to delay non-essential purchases.
Bazaarvoice studied over 8000 global consumers as part of its third annual Shopper Preference Report. It found hat, as inflation continues to impact household budgets, shoppers are making significant changes to their buying habits, with affordability and trust driving purchasing decisions.
The changes include buying less, delaying shopping, using more coupons, and joining loyalty programs.
When asked which categories are the ones where they feel most sensitive to prices, shoppers said grocery (72% globally, 78% AU), food and beverages (60% globally, 61% AU), and health and beauty (25% globally, 31% AU) are the top three.
The rise of value-driven consumption
Consumers are turning to strategic shopping tactics to maximise their budgets, according to the report. More than half of Aussies (57%) have switched to cheaper brands, while 54% are delaying non-essential purchases and 31% are actively using coupons and discount codes.
Loyalty programs are also seeing increased participation, with 35% of shoppers joining programs to access better deals.
The survey also reveals that 57% of Aussie consumers have permanently switched to store-brand products. Lower prices (81%) remain the biggest factor, but improved quality (43%) and positive reviews (35%) are also helping store brands earn consumer loyalty.
Trust and authentic content shape purchase
Authenticity is key, as 53% of shoppers cite real customer reviews as the biggest factor in their final purchase decisions. Consumers trust content that includes detailed product descriptions (36%), real-life photos/videos (37%), and balanced feedback (36%). On the flip side, they are wary of overly positive, generic reviews (47%) and suspiciously high review volumes in a short time (43%).
More than a third (35%) of consumers say social media introduced them to new products, while 30% use it to compare prices and products. Short-form videos (50%) and customer reviews (43%) are the most trusted content formats. However, honesty remains paramount: 55% of shoppers distrust creator content that feels overly promotional, and 47% say authenticity comes from creators who acknowledge a product’s pros and cons.
“As economic uncertainty continues, consumers are making more informed, strategic choices,” said Zarina Lam Stanford, Chief Marketing Officer at Bazaarvoice.
“Brands and retailers that focus on affordability, trust, and authentic engagement – particularly through user-generated content – will be best positioned to meet evolving consumer expectations.”