November 20, 2024 AUSTIN, Texas–(BUSINESS WIRE)–Zilliant, the leader in pricing lifecycle management, today announced the findings of its inaugural Consumer Price Index Survey.
The study of 2,003 U.S. consumers[1] was designed to understand emerging pricing trends and consumer sentiment in today’s dynamic market. The research reveals that consumers are increasingly resistant to price increases, even when driven by market forces such as rising costs or supply constraints.
The survey found that two-thirds (67%) of consumers who have noticed a change in their typical grocery prices report increased grocery spending since August 2024[2], with the average household spending $61.49 more per month. For 37% of consumers, monthly grocery spending has become unaffordable[3], with 1 in 8 (13%) finding it “very unaffordable.” (The survey defined “consumers” as those who are responsible for grocery shopping.)
Notably, only 33% of consumers believe prices should increase when production costs rise, while 32% explicitly state prices should stay the same despite higher costs. This resistance to cost-based price increases underscores the growing tension between market realities and consumer expectations.
“Pricing has never been more important to both businesses and consumers,” said Zilliant CEO Pascal Yammine. “While this survey shows that consumers are feeling the impact of rising costs, there’s a clear disconnect between when and how pricing should or shouldn’t change. This gap presents both a challenge and an opportunity for retailers to better educate and communicate with their customers.”
How Consumers Experience Dynamic Pricing
One key trend was how customers felt about changes caused by dynamic pricing, the changes in pricing caused by fluctuations in supply, demand, competitor actions and customer behavior, ensuring prices remain competitive and aligned with the market. The survey showed that many shoppers already encounter dynamic pricing, though they may not realize it:
- Almost half (47%) of consumers surveyed experienced price increases when a product was in demand when grocery shopping in-store.
- Over 2 in 5 (42%) consumers surveyed have experienced price cuts when a product expires when grocery shopping in-store.
- 38% of consumers surveyed believed the main impact of dynamic pricing was inflated prices when demand is high and supply is low.
Since a significant number of consumers surveyed felt that dynamic pricing only leads to higher prices, it’s clear why they associate it with negative outcomes for them.
This highlights how grocery stores already use dynamic pricing strategies without labeling them as such. High-demand products often carry higher prices, while low-demand items typically end up in the clearance section.
What Matters to Today’s Consumers
The survey revealed both consumer concerns and opportunities for retailers to build trust through innovative solutions. Top concerns about pricing practices include:
- 32% cite a lack of transparency around price increases as their top concern
- 27% worry about price volatility
- 19% want better explanations for price decreases
- On average, a 30% price increase would make consumers consider switching brands
However, consumers show strong interest in solutions that provide more value and transparency:
- 78% would share personal data to access dynamic pricing that could lower their costs (30% would share purchase history,
- 27% would share age information, and 21% would share location data or contact information)
- 46% would be more likely[4] to shop at stores offering personalized prices through apps or loyalty programs
- 42% want more physical store loyalty cards offering discounts
- 29% desire more information about how pricing is determined
- 23% specifically want personalized prices through mobile apps
How Consumers View Supply and Demand
The survey also showed a disconnect between pricing practices and consumer understanding.
- 47% of shoppers experience price changes based on product demand, but only 37% say they understand why prices change with supply and demand.
- Just 15% agree that prices should rise when demand is high and supply is low.
This indicates that while consumers may or may not grasp the basics of supply and demand, they do not believe that the market dynamics that producers must bear should be passed on to them and that demand should not determine price. This may suggest that when a product is in high demand, consumers might expect increased production so that prices remain predictable.
How Retailers Should Respond
This data suggests that grocery stores could help ease concerns around dynamic pricing by proactively informing shoppers when prices are higher due to high demand, low inventory or inflation.
While brand loyalty appears strong, providing clear explanations for price fluctuations could enhance consumer trust and further strengthen loyalty, especially among shoppers who might otherwise consider switching brands due to rising prices.
Although sentiment around price hikes is generally negative, grocery stores can take steps to better inform customers and alleviate some of the financial strain—through discounts, loyalty programs and personalized pricing.
“These findings highlight both the challenges and opportunities in pricing,” Yammine said. “While consumers clearly want more transparency and control over their grocery spending, just like B2B businesses, the key is aligning prices with value and maintaining transparency that builds trust.”
For more information about Zilliant and its intelligent pricing and sales solutions, please visit zilliant.com.
Notes
1 From the results of a survey carried out between Oct. 16-18, 2024. Respondents’ demographic profile determined by natural fallout as there is no reliable data available to represent the national population. All data based on this survey unless otherwise stated.
2 “Increased” answers from “up to $50” and “by more than $200” combined.
3 “Very unaffordable” and “Somewhat unaffordable” answers combined.
4 “Much more likely” and “somewhat more likely” answers combined.
About the Survey
The research was conducted by Censuswide among 2,003 U.S. consumers aged 18+ between October 16-18, 2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
About Zilliant
Zilliant helps businesses put pricing at the heart of their business by managing the entire pricing lifecycle. Zilliant’s data science, cloud-native software and passion for customer success deliver the highest ROI, fastest time to value and highest customer satisfaction. Learn more about how Zilliant helps businesses unlock the full power of pricing at zilliant.com.
Contacts
Treble
Matt Grant
zilliant@treblepr.com
