5WPR Releases 2023 Consumer Culture Report

Annual Report Reveals Key Factors Driving Consumer Behavior Amidst Inflationary Pressures and Unlimited Options

NEW YORK, March 2, 2023 /PRNewswire/ -- 5WPR, a top 10 independently owned US agency, has released its fourth annual consumer report, which aims to uncover the current influences on the modern consumer and what drives their purchasing decisions. The report offers insights into the impact of inflation on consumer behavior, unlocking patterns and trends that brands can use to shape their strategies for the year ahead.

The most recent iteration of the report was crafted amidst the backdrop of inflation, which has become an essential focal point for comprehending and scrutinizing consumer behavior in 2023. It became evident that consumer attitudes toward growing costs diverged significantly, particularly among different generations. Notably, consumers aged 45 and above expect to feel the pinch of heightened prices for two years. In contrast, younger consumers, specifically those aged between 16 and 44, estimated a significantly shorter time frame of one year before they expect to feel relief.  Overall, the average consumer believes they'll experience 1.64 years of financial impact.

"Consumer motivations in 2023 cannot be fully understood without considering the impact of inflation," explains Dara A. Busch, Co-CEO of 5WPR. "Contrary to popular belief, our report reveals that inflation is not the predominant factor driving consumer decision-making. In fact, our findings suggest that consumers remain willing to spend despite inflationary pressures. As a result, our report shifted focus to answer the critical question of what other factors are driving consumers' purchasing decisions in the current market."

In 2023, despite the ongoing discussions around mounting prices, consumers continue to demonstrate a willingness to spend. In fact, according to our research, a remarkable 60% of consumers have reported that they have been inclined to indulge in goods and services that go beyond what they consider necessary. This trend was most notable with shoppers between the ages of 25 to 44, who showed the least amount of restraint in their spending habits. Furthermore, a staggering 80% of respondents had already identified the top spending categories they would allocate the majority of their disposable income towards at the start of 2023, indicating a clear intention to spend.

When it comes to savings, consumers highlighted several ways that retailers can help, beyond traditional product discounts. These include waived shipping fees and value-based alternatives, among other options. Our research underscores the need for retailers to innovate and provide creative solutions to help consumers save without compromising on the overall shopping experience.

"The consumer landscape is highly competitive, and it has never been more important for businesses to offer their customers a shopping experience that meets and exceeds their expectations. Failure to do so could result in losing customers to the brands that do.  Modern consumers have limits when it comes to brand loyalty, and it is crucial for brands to consistently work towards establishing and strengthening their relationship with them," said Busch "Fortunately, simply paying attention to customer feedback can help brands to identify areas of perceived value, and to target the most effective channels to use in order to influence and encourage engagement."

Gain access to an in-depth analysis of upcoming trends and insights for the year ahead by downloading 5WPR's Fourth Annual Consumer Culture Report, now available on the 5W website. Discover the markets that consumers are already geared up to purchase this year, delve into the impact of Buy Now Pay Later (BNPL) on spending habits across different age groups, and explore the most impactful marketing tactics that can persuade consumers to make their next purchase.

As a leading consumer PR firm, and an award-winning digital agency, 5WPR is committed to being a trailblazer in the industry and providing clients with the most up-to-date insights. The information gathered from the report will guide strategy, planning, and execution of consumer and digital client campaigns in the upcoming year.

The research was conducted by Censuswide, an independent market research consultancy, with a nationally representative sample of 2,000 US consumers between the 21st and 24th of November 2022. Censuswide is a member of the British Polling Council and abides by and employs members of the Market Research Society. All survey panelists are double opted-in, in line with MRS code of conduct and ESOMAR standards.

5W's in-house research & analytics practice leveraged an AI-based natural language processing tool to visualize, aggregate and analyze the most salient media conversations surrounding inflation, consumer spending habits and supply chain impacts over the past calendar year (November 2021 - November 2022). Insights gleaned from this analysis were paired with Censuswide's consumer survey data to ensure synergies in 5W's reporting.

About 5WPR
5WPR is a full-service PR agency in NYC known for cutting-edge programs that engage with businesses, issues and ideas. With more than 300 professionals serving clients in B2C (Beauty & Fashion, Consumer Brands, Entertainment, Food & Beverage, Health & Wellness, Travel & Hospitality, Technology, Nonprofit), B2B (Corporate Communications and Reputation Management), Public Affairs, Crisis Communications and Digital Marketing (Social Media, Influencer, Paid Media, SEO), 5W was founded by Ronn Torossian 20 years ago and and has been named to Inc. Magazine's Best Workplaces 2022 list, awarded 2020 PR Agency of The Year, and brings leading businesses a resourceful, bold and results-driven approach to communication.

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SOURCE 5W Public Relations