Brand Products: Special Offers
- HEILBRONN, Germany (AP) — Rising prices are prompting consumers to increasingly seek special offers on branded food items, according to a trading expert in Heilbronn.About 25% of branded...
- Carsten Kortum, a professor at baden-Württemberg University (DHBW) in Heilbronn, notes that food brand manufacturers are particularly affected by inflation.
- This trend is especially pronounced in certain categories, with 60% to 80% of some coffee and chocolate brands being sold only when on sale, according to Kortum.
consumers Seek Deals as Inflation Impacts Brand Loyalty
Table of Contents
- consumers Seek Deals as Inflation Impacts Brand Loyalty
- Consumers Seeking Deals: How Inflation is Changing shopping Habits
- Why are consumers seeking deals more often?
- What percentage of branded items are purchased only when discounted?
- What products are most affected by consumers seeking deals due to inflation?
- What are the primary drivers behind this shift in consumer behavior?
- What deal-hunting strategies are consumers using?
- what tools are consumers using to find the best deals?
- are supermarket apps truly saving customers money?
- How are store brands benefiting from inflation?
- How much of the market do store brands account for?
- Do brand manufacturers produce store brands?
- What happens to the surplus of seasonal items, like Easter sweets, after the holiday?
- Is it true that leftover Easter sweets are melted down to become Santa clauses?
- How are retailers managing the ordering of seasonal items?
- Key Takeaways: Consumer Behavior Changes Due to Inflation
HEILBRONN, Germany (AP) — Rising prices are prompting consumers to increasingly seek special offers on branded food items, according to a trading expert in Heilbronn.About 25% of branded items are purchased only when discounted, reflecting a shift in consumer behavior due to inflation.
Carsten Kortum, a professor at baden-Württemberg University (DHBW) in Heilbronn, notes that food brand manufacturers are particularly affected by inflation. “With increased prices, customers compare more and wait longer untill their favorite product is on offer,” Kortum said.
This trend is especially pronounced in certain categories, with 60% to 80% of some coffee and chocolate brands being sold only when on sale, according to Kortum.
Households Face Budgetary Constraints
Kortum, in an interview with SWR, highlighted the financial pressures many households face. “People have to make ends meet from their monthly salary,” he said, adding that recent inflation has forced many to pay closer attention to their budgets.
“We must not forget that about half of German households hardly or have no reserves.”
Deal-Hunting Strategies Evolve
Consumers are increasingly turning to brochures and specialized apps to find deals. Retailers’ apps are also popular tools for bargain hunters.
While some retailers, like Rewe and Obi, have discontinued paper brochures, Kortum believes they will remain relevant for reaching certain customer segments.Tests have shown that some customers are not reached without brochures, he said.
Kortum also noted the high turnover rate of retailer apps. “On average, every consumer has apps from five retailers on their smartphone. The question is whether they use them all,” he said.
store Brands Gain Popularity
Inflation has boosted the popularity of store brands, making it more tough for less established brand manufacturers. Consumers who previously purchased only well-known brands have increasingly tried store brands.
“They then found that they are high quality,they save a lot of money and stayed with them.”
Store brands now account for almost half of all food and drugstore product purchases. Many brand manufacturers also produce store brands for retailers, albeit with lower profit margins.”The brand is always paid for in the form of a brand bonus,” Kortum explained.
The Fate of Post-Easter Sweets
Consumers often seek bargains on seasonal items, including Easter sweets. Retailers aim to have sufficient stock for all customers through Easter Saturday, with a surplus included, according to Kortum.
After Easter, the surplus is reduced through sales or returned to manufacturers. “it is only a rumor that they melted down and to become Santa Clauses,” Kortum said. He added that such a process would be too complex from a production standpoint.
Ordering the correct amount of seasonal items is a constant challenge, Kortum said. Retailers are using their experience and artificial intelligence to improve these calculations.
Consumers Seeking Deals: How Inflation is Changing shopping Habits
Why are consumers seeking deals more often?
Rising prices, driven by inflation, are considerably impacting consumer behavior. according to a trading expert in Heilbronn,Germany,shoppers are actively looking for special offers on branded food items. This change reflects a shift in consumer behavior due to the increased cost of living.
What percentage of branded items are purchased only when discounted?
Approximately 25% of branded items are purchased only when they are on sale. This figure clearly demonstrates the impact of inflation on consumer spending habits.
What products are most affected by consumers seeking deals due to inflation?
Food brand manufacturers are particularly affected by inflation. Certain categories experience this trend more than others. Such as, 60% to 80% of some coffee and chocolate brands are sold *only* when on sale.
What are the primary drivers behind this shift in consumer behavior?
Inflation is forcing consumers to make tough choices. The need to manage household budgets more carefully is a significant factor.As Carsten Kortum, professor at Baden-Württemberg University (DHBW) in Heilbronn, observed, people are having to make ends meet from thier monthly salaries, and recent inflation has resulted in closer attention to budgets.
What deal-hunting strategies are consumers using?
Consumers are adapting their shopping strategies. They are increasingly:
- Using brochures to find deals.
- utilizing specialized apps for discounts.
retailers’ apps are also becoming popular tools for bargain hunters. Interestingly, while some major retailers have discontinued paper brochures, Carsten Kortum believes brochures remain relevant for reaching specific customer segments.
what tools are consumers using to find the best deals?
Consumers are leveraging a variety of tools to stretch their budgets. Retailer apps and brochures are two primary methods.
are supermarket apps truly saving customers money?
Consumer advocates are studying the effectiveness of supermarket apps in saving customers money. The impact of these apps is an ongoing area of investigation.
How are store brands benefiting from inflation?
Inflation has boosted the popularity of store brands. Consumers, facing higher prices, are increasingly trying store brands and finding them to be high quality and a way to save money. This has led to greater market share for store brands.
How much of the market do store brands account for?
Store brands now account for almost half of all food and drugstore product purchases.
Do brand manufacturers produce store brands?
Yes,many brand manufacturers produce store brands for retailers,even though with lower profit margins.
What happens to the surplus of seasonal items, like Easter sweets, after the holiday?
Retailers generally aim to have sufficient stock for all customers through Easter Saturday, including a surplus. After Easter, the surplus is reduced through sales or returned to the manufacturers.
Is it true that leftover Easter sweets are melted down to become Santa clauses?
no, according to carsten Kortum, this is just a rumor. Melting down the excess seasonal items and reprocessing them would be too complex from a production standpoint.
How are retailers managing the ordering of seasonal items?
Ordering the correct amount of seasonal items is a constant challenge. Retailers are using their experience and artificial intelligence to improve these calculations.
Key Takeaways: Consumer Behavior Changes Due to Inflation
Here’s a table summarizing the main points:
| Change | Impact |
|---|---|
| Increased Price Awareness | Consumers compare prices and wait for sales. |
| Deal-Seeking behavior | Customers are actively searching for discounts. |
| Store Brand Popularity | Store brands are gaining market share. |
| Evolving Shopping Strategies | Use of brochures and apps increased. |