Value over money matters for consumers: Mintel

Consumers are willing to increase spending for more quality products

Amidst budget pressures and shifts in tastes, consumers are becoming more realistic with their perception of value, favouring a balance of the quality received and the cost gained, according to a consumer report from Mintel.

Buyers have come to define quality in bolstering ways, sometimes aligning it with longevity, with 70% of Thai shoppers willing to pay more for beauty products that are made from natural ingredients, and 67% of UK customers from furniture shops willing to spend more as they prefer high-quality items to cheaper ones.

Loyal customers also align quality with trust and the track record of brands. Nearly eight in 10 US customers view a retailer’s store brand as reflective of its overall quality. Meanwhile, three in 10 Chinese buyers with luxury cars worth US$40,000 or above would be attracted to the brand’s story.

The findings also indicate a more decisive behaviour by consumers in assessing “wants” and “needs." Even with attributes like sustainability, convenience and culture serving for quality, a product or service achieving its intended function is what weighs more as quality for consumers. And as that mindset affects and determines how valuable a purchase is, the brand should lean toward that view.

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The report further stresses the link between customers and the values that brands represent as a determining factor for buying from them. Any social and emotional attribute that brands hold will grow prominently on what can be defined as “value” over cost.

Intimate connections found in brand heritage, nostalgic elements, and track record can serve in customers’ search for consistent value and reasonable prices. By connecting to the personal values that consumers lean onto, brands and businesses can thrive and withstand the changing market.

“Brands must reestablish and strengthen their relationship with consumers, placing consistent delivery of functionality at the core of their message and ensuring that reliability, trust and authenticity feed into the integrity of their identity and vision,” read the report.