Updated 06 Sep, 2024 11:59am

From Inflation to BDS: Survey Report

In times of economic turbulence and social movements, understanding consumer behaviour is even more critical. The Aurora Dipstick Consumer Survey, conducted online between May 5 and May 15, 2024, set out to explore the relationship between inflation, the global Boycott, Divestment, Sanctions (BDS) movement, and consumer purchasing patterns among Aurora and Dawn readers. The survey consisted of 13 questions and garnered a total of 1,099 responses.

This analysis delves into the demographic nuances of how different age groups, genders, and geographic locations have responded to inflation and the BDS movement. It provides insights into the adaptive strategies consumers employ to navigate rising costs, from shifting to non-branded products to re-evaluating brand loyalty.

As hypothesised, 85% of participants are affected by inflation, demonstrated through changes in spending habits and brand loyalties. The survey highlights the impact of the BDS movement on consumer decision-making, indicating a shift towards more politically conscious consumption, demonstrated by 73% of participants altering their consumer patterns as a result of the BDS movement.


1. INFLATION AND ITS IMPACT ON PURCHASING POWER

In examining the spending habits of consumers, resultsshowed that 85% of overall participants have beenaffected by inflation and as a result, have altered theirspending habits: 45% ‘spend a little less’ and 40%‘spend considerably less’. Inflation has led to changesin consumption patterns across all age groups, but theAurora Survey identified some notable differencesamong them.

Boomers: 22% reported ‘no change’ in their consumptionpatterns, which is 7% higher than the overall average.Conversely, 32% stated ‘considerably less,’ which is 8% lessthan the overall average. This suggests that while a significantportion of Boomers have been affected by inflation, there isalso a notable subgroup that has managed to maintain theirconsumption levels.

Gen Alpha: Although the sample size for Gen Alpha was small(only four respondents), 75% of them reported spendingconsiderably less. This high percentage may indicate thatyounger consumers are more sensitive to inflationary pressuresor have less financial flexibility to maintain their spendinglevels.

Less-metropolitan cities: The survey also noted that residents ofless-metropolitan cities were more likely to ‘spend considerablyless’ (56%), which is 16% more than the overall averageof 40%. This could be due to a variety of factors, includingpotentially lower incomes or less access to resources in nonmetroareas. For residents of less-metro cities, consumptionof household goods and transport has been impacted by morethan 6% than the overall respondents.

Women’s consumption of beauty products has been impactedby 14% more than the overall respondents. Their consumptionof electronic devices and utilities has been impacted by 9% and7% less than the overall respondents.

Boomers were impacted by 7% more than the overall respondentswhen it comes to transport and utilities.Gen X’s consumption of food has been impacted more than theoverall respondents by 7%. Their consumption of householdgoods (7%), electronic devices (10%) and utilities (6%) hasbeen impacted less than the overall respondents.

The survey identified clothing and apparel, food andbeverages, beauty and personal care, and electronicappliances as the most impacted consumption categories,with 59% (food & beverages) to 63% (electronic appliances)of respondents indicating reduced spending in these areas.Boomers showed a higher impact in transport and utilities,while Gen X had a greater impact on food consumption.

The exceptions and variations among different age groups andgeographic locations highlight the complexity of how inflationaffects consumer behaviour and the importance of consideringdemographic factors in understanding these changes.


2. BRAND LOYALTY AND BUYING LOCAL

In terms of brand loyalty, 44% ofrespondents opted for cheaper brands tosave money, while 13% remained loyal totheir usual brands.

• Boomers were less likely to remain brand loyal and more likely toswitch to cheaper options.

• The majority of respondents(71%) have started to purchasenon-branded goods as a resultof inflation.

• The non-branded productcategories that have seen anincrease in purchasing includeclothing and apparel (57%), foodand beverages (53%), household/cleaning products (44%), andbeauty and personal care products(37%).

• Fewer Boomers and Gen X optfor non-branded beauty andhousehold products; similarly, fewerGen Z spend on non-brandedhousehold products.

• Compared to other age groups, 7% more Boomers purchase nonbrandeditems compared to the overall respondents. 100% of Gen X opt fornon-branded products.

Buying local was a priority for many, with45% considering it ‘very much’ and only12% stating ‘not at all’.

• Boomers and Gen Alpha showed a strongerinclination towards buying local.

• Ethical and political considerations played arole in purchasing decisions, with 44% consideringthese factors ‘very much’ and only 15% ‘not at all’.


3. THE BOYCOTT, DIVESTMENT, SANCTIONS MOVEMENT

The BDS movement encourages individualsto boycott certain products or brandsfrom and associated with Israel, which is thesubject of this particular boycott. In the contextof the survey, it appears that consumersare considering the ethical and politicalimplications of their purchases and are willingto alter their buying habits accordingly. Themovement has led to degrees of changes inconsumer purchasing habits. This shift is morepronounced among certain demographics,such as women, and varies by productcategory, with some items being more resilientto boycott than others.

The survey revealed that women wereparticularly influenced by the BDS movement,with 10% more women than the overallaverage indicating that they had changed theirpurchasing habits due to BDS, indicating ahigher level of engagement or sensitivity amongwomen to the issues raised by the movement.

Furthermore, the survey askedrespondents to specify the types of productsor brands they were likely to keep boycottingin line with the BDS movement. Beverages,food, clothes, all products and beautyproducts were most likely to be boycotted byapproximately 103-433 respondents, possiblydue to the growing availability of local alternatives.

Simultaneously, products like beverages,beauty products, food, medicine, householdgoods and electronic appliances were leastlikely to be boycotted by approximately 50-125respondents, suggesting that certain itemsmay be considered non-negotiable despite theBDS movement’s influence, in some casesdue to the unavailability of local alternatives.

• 73% of respondents changed their purchasing habitsin response to the BDS movement. This suggests aconsiderable shift in consumer behaviour in Pakistan.


FINDINGS

Inflation Affects Almost Everyone: The majority of consumers (85%) have adjusted their spending habits due to inflation, opting to spend less acrossvarious product categories.

Demographic Differences: The impact of inflation on consumption patterns varies by age group, gender and geographic location. Boomers showa mixed response to many of the questions, with a notable number maintaining their spending habits, while Gen Alpha and residents of nonmetropolitanresidents have reduced their spending.

Shift to Non-Branded and Local Products: The majority of respondents (71%) are purchasing more non-branded products and prioritising localgoods as a strategic (or necessary) response to economic pressures. This trend was particularly pronounced among Boomers and Gen Alpha.Consumers are seeking to economise by choosing less expensive alternatives without compromising on essential items.

Ethical and Political Awareness: The consideration of ethical and political implications in purchasing decisions, as well as the influence of the BDSmovement is interpreted as a trend among consumers.

Differential Impact by Product Category: The survey observed that the impact of inflation and the BDS movement varies by product category, withsome items being more resilient to boycott than others.

Data collection and analysis by Mansoor Muhammad, Researcher.

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