With inflation soaring to 22.41 per cent and food prices rising to 24.82 per cent, consumers are adjusting their budgets and choosing affordability over brand loyalty. This shift in purchasing decisions is particularly evident in the Fast-Moving Consumer Goods (FMCG) sector, where products such as cereal, noodles, dairy, and carbonated soft drinks are being evaluated based on their impact on household budgets.
According to a research by Zendesk, while it takes multiple purchases to build brand loyalty, price remains the primary factor influencing customer loyalty. As a result of the economic realities and increased costs, shoppers have become more price-conscious, meticulously comparing price tags and seeking alternatives with lower costs.
The recent removal of fuel subsidies has led to a significant increase in the cost of food items, forcing consumers to prioritize their limited resources and disposable income. Many shoppers are making tough decisions to switch to less expensive brands that still meet their nutritional requirements.
Mrs. Bolanle Adeyemo, a mother of four, emphasized the importance of being price-conscious in mitigating the impact of inflation on her family’s budget. She believes that smart choices and careful consideration of expenses, especially regarding food purchases, are crucial for survival in today’s challenging economic environment.
As competition intensifies and economic uncertainty prevails, understanding the connection between loyalty and the overall customer experience becomes vital. Price now plays a fundamental role in decision-making, given the current economic realities and consumers’ need for affordability.
Amidst rising inflation, consumers are adapting their buying behaviors and reevaluating their choices to make the most economical decisions, shaping the landscape for FMCG brands in Nigeria.
