Lehi-based technology and marketing firm Scorpion has released the results of a survey that explores the generational differences in consumer behavior and business expectations during this inflationary period. The survey was conducted with 1,050 U.S. consumers in the third quarter of this year by Scorpion and Qualtrics.
Key findings on generational differences include:
• Gen Z and millennials are three times more likely to say they’re better off financially this year compared to Gen X and baby boomers (38 percent versus 13 percent).
• While 75 percent of Americans think it will take two or more years for inflation rates to return to normal, younger generations are 50 percent more likely to resolve big expenses now than wait until 2024.
• Gen Z and millennials are up to twice as likely to spend on luxuries such as electronics, dining out and travel than Gen X and baby boomers.
• Gen X and baby boomers are twice as likely to put off spending if prices continue to rise than Gen Z and millennials (50 percent versus 27 percent).
• Gen X and baby boomers are 50 percent more likely to turn to TV for inflation and economic news than Gen Z and millennials (77 percent to 53 percent). However, Gen Z and millennials are three times more likely to trust social media than Gen X and baby boomers (32 percent versus 12 percent).
• Gen Z and millennials are twice as likely to show inflation fatigue than older generations (23 percent to 12 percent).
Key findings of the report on business and consumer outlook include:
• As service costs continue to rise, consumers are likelier to take steps they normally would not: 47 percent would look for ways to do things themselves, 35 percent would consider temporary solutions and 31 percent would spend more time comparing providers.
• While price is key to winning today, companies can still build trust for the future by providing the best possible experience: Down the road, 40 percent of consumers would hire businesses they could not afford at this time which provided excellent service, 45 percent want to know what businesses are doing to help mitigate pricing, 42 percent expect breakdowns of pricing to understand what they are getting, 37 percent need clarity on services that are essential versus optional and 32 percent want organizations to show what they are doing to provide more value.
“As many Americans accept today’s challenging economy, this is a good time for businesses to focus on winning and retaining customers. With increasing competition in most industries, customers expect excellent service, fair pricing, transparency, and many other things from the businesses they buy from,” said Joe Martin, vice president of content marketing at Scorpion. “As the data shows, demographic differences provide opportunities for revising customer marketing while offering different relationship-building strategies for all generations.”
This study was designed to understand how consumers have been impacted by high inflation as well as how changes in purchasing behavior have affected businesses.