The cost of living crisis shows no signs of slowing; in fact, it only seems to be worsening. Just this week, financial markets have predicted it is almost certain we will see further interest rate rises later in June, meaning the cost of mortgages and other loans will increase and will also inhibit business growth.
So how are consumers coping? And how can BeSci help companies connect with consumers in these times?
Across a new, three-part series, published in The Marketing Society, we look at three key challenges facing consumers in this difficult time, and how behavioural science can provide insights to increase understanding, empathy, and help build a connection with consumers.
In Part 1 we explore:
- why we are seeing consumers focus on the present more;
- a ‘seize the day’ mentality;
- why the 'lipstick effect’ of people buying more little luxuries is occurring;
- and, why people are not making larger or systemic behaviour changes.
Part 2 digs into:
- why consumers are struggling to navigate rapidly increasing prices.
- the resulting consumer strategies;
- why the use of cash has increased;
- and, how budgeting behaviour is changing…
Finally, in Part 3:
- People crave stability…but that’s in short supply right now - we use a BeSci lens to explain how consumers are responding to huge uncertainties in the economy.
- We dig into the strategies consumers are using to mitigate feelings of uncertainty.
- explore how this situation is triggering varied behaviours;
- how some consumers are locking some certainty back in;
- and, why some are clinging to existing routines and habits.
Throughout each part you’ll find our insights into behavioural science-backed strategies that organisations can employ to support and connect with consumers as they navigate each of these challenges.
Read Part 1 here, Part 2 here, and, Part 3 here
