Consumer purchasing decisions are shaped by a complex mix of quality expectations, affordability, brand reputation, and personal preferences. In today’s economic climate, where rising prices are altering spending habits, understanding what influences perceived value is essential for businesses aiming to retain and attract customers.
Quality, Health Benefits, and Taste Lead the Way
Consumers prioritize quality, health benefits, and taste when shopping for groceries and household items. According to recent consumer data by Webhaptic Intelligence:
- 61% of shoppers cite quality as a primary factor in purchasing cooking oil, followed closely by bread (57%) and breakfast cereals (49%).
- Health benefits are a key driver, particularly in categories like breakfast cereals (31%) and flour (27%).
- Taste remains a dominant factor, especially in bread (50%) and cooking oil (45%).
This indicates that while affordability matters, consumers are still willing to pay for products they perceive as healthier and of superior quality.
Price Sensitivity Alters Buying Behavior
Price hikes have led consumers to rethink their purchasing habits. Data reveals that across key grocery categories, consumers are adjusting in several ways:
- Cooking oil stands out, as 21% have reduced their consumption, while 33% report price increases.
- Breads and cereals have also seen adjustments, with 38% of consumers reducing quantity due to rising costs.
- A smaller percentage (4-9%) have stopped purchasing certain items entirely, indicating that drastic price increases can drive consumers to abandon some brands.
Businesses must recognize that price sensitivity doesn’t mean consumers won’t spend—it means they seek value in their spending.
Where Consumers Shop Matters
Shopping location plays a key role in perceived value. Consumers predominantly buy groceries from open markets, neighborhood stores, and supermarkets due to the variety of products available:
- 70% of cooking oil consumers prefer open markets, while 34% buy from neighborhood stores.
- Supermarkets are more favored for bread (55%) and detergents (35%), likely due to brand availability and promotions.
For brands, this insight emphasizes the importance of strategic distribution. Ensuring products are available in consumers’ preferred shopping locations enhances perceived accessibility and reliability.
Why Consumers Choose Specific Products
The emotional and functional aspects of purchasing decisions further highlight how consumers define value:
- “It is best for my family” is the leading reason for purchases across all categories, with 69% for bread and 66% for cooking oil.
- Child-focused buying is significant for breakfast cereals, with 53% choosing based on what’s best for their kids.
- Premium perception matters, as 37% of cooking oil buyers and 25% of bread consumers opt for what they see as a high-end choice.
Cooking Oil: The Staple Product
Cooking oil stands out as the most consumed grocery item, with 86% of consumers using it regularly. The reasons behind this include:
- Taste (47%)
- Cooking efficiency (45%)
- Nutritional benefits (27%)
- Healthier perception compared to local oils (26%)
Given its widespread usage, brands that can position their cooking oil as both high-quality and affordable will likely win consumer loyalty.
Key Takeaways for Businesses
- Emphasize Quality & Health Benefits – Consumers prioritize these aspects over affordability in key grocery categories.
- Address Price Sensitivity Smartly – Instead of cutting prices, focus on communicating value through packaging, promotions, and perceived benefits.
- Be Present in Preferred Shopping Locations – Open markets, supermarkets, and neighborhood stores drive grocery purchases.
- Leverage Emotional Connections – Positioning a product as “best for the family” resonates deeply with buyers.
- Capitalize on Staple Products – Essential items like cooking oil remain a steady demand, making them a stronghold for brand strategy.
Understanding how consumers define value helps brands craft better messaging, optimize pricing strategies, and build stronger connections with their audience.