Balancing price and quality in challenging economic times
Before the cost-of-living crisis, quality of products and services was the most important factor for 50% of consumers, followed by price at 36%, convenience at 7%, customer service at 4% and scarcity/exclusivity at 2%. Perhaps unsurprisingly, the current economic challenges have shifted consumer priorities overall, with 58% of respondents now saying that price is the most important factor when purchasing a product.
Which of the following criteria are most important to you when purchasing a product?
Convenience, customer service, and scarcity/exclusivity remained relatively low, with 3%, 2% and 2% of respondents choosing these factors respectively. However, when asked specifically about the quality of products and services, more than a third said that it was more important now than 12 months ago.
Question: How has the importance of the quality of products and services changed for you in the current economic climate compared to 12 months ago?
More important
As important
Less important
While these two results might at first seem at odds, it suggests that there is an expectation among consumers that if costs are rising, so should quality. For GenZ and millennials, this demand for quality is even greater, with over half (54%) of 18 to 24-year-olds and 43% of 25 to 34-year-olds putting more emphasis on it than a year ago. Consumers are more cautious about their spending, which means that companies need to focus on cost optimisation, finding ways to offer competitive prices while still maintaining a level of quality.
Ideagen advice
In addition to being cost competitive, highlight your quality management practices, safety record, the quality of your raw materials and ingredients and your commitment to customer satisfaction. Demonstrate that you extend your quality processes not only within your organisation but within your supply chain too. Effective supplier management and consistent onboarding processes within your supply chain help to avoid unwanted, unexpected challenges.