Household affordability: what changing prices mean for consumer brands

The consumer question behind price headlines

Discussions about prices often focus on whether a particular item has become more expensive. For businesses, the more useful question is how households respond. Consumers may buy smaller packs, postpone discretionary purchases, change brands, shop less frequently or prioritise essentials.

What brands should examine

Affordability research should distinguish absolute price from perceived value. A lower-priced option is not necessarily preferred if buyers doubt its quality or durability. Brands can test pack sizes, payment flexibility, value claims and the point at which shoppers switch to alternatives.

A practical research agenda

Track household spending priorities, brand switching, pack-size preferences and price sensitivity across income groups and locations. Combine survey evidence with retail observation and interviews to understand the reasons behind reported behaviour.