Price Hikes Push 60% of Consumers to Drop Loyal Brands as 37% Let AI Pick Alternatives
Updated
Updated · Scripps News · Jun 30
Price Hikes Push 60% of Consumers to Drop Loyal Brands as 37% Let AI Pick Alternatives
3 articles · Updated · Scripps News · Jun 30
Summary
DOSS found 60% of consumers abandoned a brand they were loyal to this year after price hikes, and 70% said they are less loyal than a year ago.
A 16% price increase marks the main breaking point, with groceries hit first: 76% dropped a previously favored grocery brand as staples such as coffee and beef outpaced headline inflation.
About half of shoppers are trading down to generics, cheaper national brands or private labels, helping discount chains, dollar stores and warehouse clubs gain shoppers while traditional supermarkets and mass retailers lose them.
Accenture said AI is adding pressure to loyalty: more than a third of AI users would let a digital agent choose a different brand, and 37% of that group would switch if the tool gave a clear rationale.