Price increases are everywhere – or are they?
Record high inflation has been eating into people’s savings and restricted their spending, as they pay higher prices for gas, food and a variety of other products.
But have prices really gone up for everything? Or are people extending what they hear in the news, and price increases they see on some categories and think they have also gone up on everything else?
New McKinsey research (July 2022) finds this is indeed happening.
They identified several major categories that have not seen any notable increase in prices, yet consumers think prices are up substantially, e.g., Consumer Electronics, Apparel, Skin Care and Makeup, Food Delivery.
Brands or Retailers selling these categories need to remember “PERCEPTION IS REALITY” … and consumers may pull back or delay buying based on what they perceive. If your category and brand has NOT gone up in price, smartly let people know, so they don’t stop buying due to mis-perceptions!