Research presented by Zilliant reveals that consumers are increasingly resistant to price increases, even when driven by market forces such as rising costs or supply constraints. In fact, the survey found that two-thirds (67%) of consumers report increased grocery spending since August, with the average household spending $61.49 more per month. For 37% of consumers, monthly grocery spending has become unaffordable, with one in eight (13%) finding it “very unaffordable.”
“Pricing has never been more important to both businesses and consumers,” says Zilliant CEO Pascal Yammine. “While this survey shows that consumers are feeling the impact of rising costs, there’s a clear disconnect between when and how pricing should or shouldn’t change. This gap presents both a challenge and an opportunity for retailers to better educate and communicate with their customers.”
Key takeaways:
- Only 33% of consumers believe prices should increase when production costs rise, while 32% explicitly state prices should stay the same despite higher costs. This resistance to cost-based price increases underscores the growing tension between market realities and consumer expectations.
- The survey showed that many shoppers already encounter dynamic pricing, though they may not realize it. Almost half (47%) of consumers surveyed experienced price increases when a product was in demand when grocery shopping in-store. Over two in five (42%) consumers surveyed have experienced price cuts when a product expires when grocery shopping in-store. The 38% of consumers who cite inflated prices during high demand/low supply as a primary concern highlights the perceived negatives of dynamic pricing.
- Top concerns about pricing practices include 32% cite a lack of transparency around price increases as their top concern; 27% worry about price volatility; 19% want better explanations for price decreases; on average, a 30% price increase would make consumers consider switching brands.
- The survey also showed a disconnect between pricing practices and consumer understanding. 47% of shoppers experience price changes based on product demand, but only 37% say they understand why prices change with supply and demand. Just 15% agree that prices should rise when demand is high and supply is low.
“These findings highlight both the challenges and opportunities in pricing,” Yammine says. “While consumers clearly want more transparency and control over their grocery spending, just like B2B businesses, the key is aligning prices with value and maintaining transparency that builds trust.”
