How do people plan to cut the cost of living?
With the budget looming and the high chance that consumers will face increased taxes or benefit cuts, we wondered what steps people would take when faced with less money? What would be the first things to go?
We asked this question with the objective of finding out what consumers considered to be inessential or luxury items. We were expecting to find out a list of consumables which would be prioritised over others. Would the annual holiday be ditched first, or the regular evening glass of vino? However something very different came across from our panel; an unwillingness to compromise on anything. When faced with the thought of living on less money than they currently do, instead of making outright cuts, consumers will look for cheaper ways of buying the same things. Modifying instead of changing their shopping habits and finding creative ways to keep the same lifestyle. In other words, smart shopping. In the words of one panel member “You do not have to cut out anything, only modify your actions to save.”
Examples of smart shopping and creative cutbacks include obvious changes such as taking advantage of specials and buying in bulk, but also saving through less obvious ways, for example, working out the best day and time to shop at supermarkets in order to take advantage of reduced prices at certain times. Choosing to shop at Aldi, or shopping around at local shops or markets, and buying cheaper brands where possible. Specific advice offered included “You don’t have to cut out your morning coffee – simply take it with you instead of buying it.” Shop around for things like car and home insurance. Continue to eat out once a week, but choose cheaper deals or weeknight offers instead. In summary, consumers would prefer to spend more time and effort in achieving the same lifestyle and buying the same things, than make actual cuts.
Sentiment is positive. Some declared they would turn a drop in income into an opportunity to reap health benefits, for example by stopping smoking or cutting down on alcohol. A few with adult children still at home – a growing trend – talked about charging them rent and insisting they start contributing to household expenses. So according to our panel, being faced with the prospect of cutting their budget does not mean cutting anything out. It just means adapting to the circumstances and shopping smarter.
If you’d like to know more please contact us at firstname.lastname@example.org
Our latest thinking
There is a lot of talk in the marketing world about brand purpose: the reason for being that goes beyond just selling a product or service.There is no doubt that a lot of people prefer brands that behave as good corporate citizens. In a recent study, we found that 3 out of 4 Australians prefer to...Read more
Are you ready to DIY?
One of the big trends we’ve seen in recent years is do-it-yourself market research. Survey platforms and research panels have opened up to provide easy access to anyone who wants to run a survey. It’s democratised a lot of the research world and has caused concern for some...Read more
Voice of Australia: A Youth Perspective
It’s no secret that the past 12 months have been challenging for many Australians. As 2021 rolls on and glimpses of a post-Covid world emerge, there are many questions about how people will bounce back. The latest instalment of Edentify’s Voice of Australia research series has...Read more
What makes a 'good brand'?
In recent years, the role of companies in society has slowly been evolving. Beyond delivering valuable products and/or services for consumers, brands are now trying to be 'good'. To see what consumers believe a good brand to be, we asked our dedicated research community what attributes they...Read more