More than half of consumers want brands to explain why prices are going up, according to new research.
A survey of 1,000 UK consumers, exclusive to The Grocer, found 53% said they “would be loyal to brands that are transparent, for example in explaining why they have increased prices”.
According to market research firm Mintel, which conducted the survey, it reveals an opportunity to win shopper trust by making price rises “part of wider brand communications”.
“Food prices are soaring at a time when consumers are more scrutinising and inquisitive,” said Mintel food & drink associate director Alex Beckett. “By being upfront about the reasons behind price hikes, companies can win consumer trust.
“It is likely that many people are aware of why prices are rising, but if companies bother to explain the ‘why’ to consumers, it proves they have respect and empathy for them.”
Consumers also want to be told of price rises in advance, according to Beckett. In a report, he highlighted the example of beauty brand Deciem, which earlier this year used Instagram to give customers advance warning of rises.
Beckett said: “Honesty is the best policy when raising prices. Consumers want advance notice of the price increase and to be told in simple, fact-based and authentic terms.
“For now, examples of food brands forewarning consumers of price hikes are rare,” he added.
Beckett argued the same principle could apply to supermarkets, who have done much to communicate pledges of prices staying as low as possible but been less vocal about why they are rising. “A brief explanation of the cause of price rises at point of sale would be convenient for the shopper,” he said.
He added: “But it’s the brands themselves which can perhaps relate, first-hand, the most authentic stories of these input hikes to consumers.”
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