Gartner research shows that consumers are coming to regard thrift as an aspirational virtue, openly resisting consumerism for self-improvement and similar motives. Gartner also detects a widespread trend called “norming” — essentially, seeking reassurance about personal behavior and attitudes by checking them against objective and community standards. Consumers also proved paranoid about unexpected and inconsistent costs and pricing.
In addition, 74% of consumers express openness to automated technologies including drone delivery and cashier-less stores. We spoke with Kate Muhl, Gartner’s consumer and cultural insigbhts expert about the significance of these findings. (The full report is available only to Gartner clients.)
Wholesome thrift. A generation of “New Spartans” are embracing thrift, almost as a lifestyle choice. Certainly, the impulse to save money is not unrelated to the recent battle with inflation, but it seems to have taken on a broader significance. In the Gartner research, 88% of consumers reported embracing one or more underconsumption behaviors than they would have two years ago. Examples include:
- Using products longer rather than replacing.
- Choosing to buy second-hand or DIY rather than already assembled.
- Fixing rather than buying new.
Yes, prices are on consumers’ minds, but 68% cited lifestyle or self-improvement reasons for underconsumptive behavior, including:
- Decluttering and simplifying life (45%).
- Feeling better about themselves (35%).
- Proving to myself and others that I could (28%).
- Environmental concerns (23%).
“I guess I am never surprised at a consumer’s ability to take something and turn it into a way to tell a story about themselves,” mused Muhl. “This is like taking something you may be forced to do and turning it into something you control and that you can turn into a ‘braggable.’” She noted that there were no signs yet, despite the decrease in inflation, of returning to ’90s-style conspicuous consumption. “Perhaps we’ll see that in a year or two. Right now, austerity is something you have the strength or wisdom to embrace.”
Could this also be a sign of people choosing experiences over products? “Yes, I think that’s fair,” said Muhl. “The long tail on an experience you paid for is much better than, like, a sweater.”
Message to brand marketers: Support your customers’ goals. Brands with values can win extra cachet here.
Are you norming? In an uncertain world, consumers are looking for objective (or at least, communal) benchmarks for their actions and opinions. They say they are looking for:
- Clearly established boundaries (76%).
- An ability to label and categorize things (64%).
- An understanding of themselves and their place in the world (57%).
- Some kind of “playbook” for progressing through life (48%).
This is not a new concept, said Muhl, but it has recently picked up momentum. Back in 2018, she said, there was a top trend in the research called “My Data, My Self,” because people had become interested in the data trails they were leaving behind that were unique to themselves. That’s counter to the idea of norming. “What we don’t know these days is how we fit into the whole,” she said. “You can’t see the forest for the trees, which is bad because you are a tree in the forest. You want to know, am I tall tree, am I a small tree, how many trees are in this forest?”
Message to brand marketers: Help consumers understand themselves in context by providing content that doesn’t necessarily lead directly to a purchase.
Paranoid about the price. Almost 60% of consumers lacked confidence in knowing the true, final cost of a purchase. Reasons included:
- Service bill increased while usage did not (38%)
- Discrepancies between online and in-store prices (31%).
- Price changing in shopping cart (29%).
- Hidden or unexpected fees (23%).
Among the trends considered, this probably has the widest impact, said Muhl. Given the current rate of inflation, “consumers should be feeling okay,” she said. “And yet they do not, or the repair of their feeling about cost is happening much more slowly than a lot of our clients would like to see.”
Businesses like stability, she observed. They don’t like sudden surges in costs; they need to be able to plan. “Why wouldn’t individuals be the same?”
Message to brand marketers: Be known for price stability and reciprocate loyalty through rewards programs.
Why we care. There is no shortage of large datasets that tell us what consumers are doing — how much they are spending and how they are shopping. Tracking consumer behavior is virtually an industry during the holiday shopping period especially. And that’s all valuable.
What Gartner seeks to add, by looking at cultural as well as consumption trends, is an understanding of the deeper belief systems driving consumer behavior, and the challenge is to do this at scale rather than seeking to psychoanalyze shoppers one by one.
(Note: The research on level of comfort with drones surely predates the current news cycle!)
The post Thrift, norming and price paranoia will be consumer trends in 2025 appeared first on MarTech.
**Key Consumer Trends for 2025: Thriftiness, Social Norms, and Pricing Sensitivities**
As we approach 2025, the global consumer landscape is undergoing profound transformation. Economic uncertainties, technological advancements, and shifting societal values are reshaping how people make purchasing decisions. Among the key trends emerging are thriftiness, the influence of social norms, and heightened pricing sensitivities. These factors are not only redefining consumer behavior but also compelling businesses to adapt their strategies to remain competitive in an evolving marketplace. Let’s explore these trends in greater detail.
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### **1. Thriftiness: A Return to Value-Driven Spending**
The concept of thriftiness has gained significant traction in recent years, and it is expected to dominate consumer behavior in 2025. This trend is largely driven by economic pressures, including inflation, rising living costs, and global economic uncertainties. Consumers are increasingly prioritizing value over luxury, seeking ways to stretch their budgets without compromising quality.
#### **Key Drivers of Thriftiness:**
– **Economic Instability:** The lingering effects of global disruptions, such as the COVID-19 pandemic and geopolitical tensions, have left many households more cautious about discretionary spending.
– **Sustainability Awareness:** Thriftiness aligns with the growing emphasis on sustainability. Consumers are embracing second-hand shopping, repair culture, and minimalist lifestyles to reduce waste and save money.
– **Digital Tools:** The rise of price comparison apps, cashback platforms, and subscription services has empowered consumers to make smarter financial decisions.
#### **Implications for Businesses:**
Brands must focus on offering value-driven products and services. This could mean introducing budget-friendly options, emphasizing durability and functionality, or promoting loyalty programs that reward repeat customers. Companies that can strike a balance between affordability and quality will likely thrive in this cost-conscious environment.
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### **2. Social Norms: The Power of Collective Influence**
Social norms have always played a role in shaping consumer behavior, but their impact is becoming more pronounced in the digital age. By 2025, the influence of social norms will be amplified by social media, online communities, and the growing importance of ethical and inclusive values.
#### **Key Drivers of Social Norms:**
– **Social Media Amplification:** Platforms like Instagram, TikTok, and YouTube have created a culture of visibility, where consumers are influenced by the lifestyles, opinions, and recommendations of influencers and peers.
– **Ethical Consumption:** Consumers are increasingly aligning their purchasing decisions with their values, such as supporting brands that prioritize diversity, environmental sustainability, and fair labor practices.
– **Community-Driven Choices:** Online forums and review platforms have become trusted sources of information, enabling consumers to make decisions based on collective experiences and feedback.
#### **Implications for Businesses:**
To stay relevant, companies must align their branding and messaging with prevailing social norms. This includes adopting transparent practices, showcasing social responsibility, and engaging authentically with their audience. Brands that fail to resonate with the values of their target demographic risk alienating socially conscious consumers.
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### **3. Pricing Sensitivities: The Demand for Fair and Transparent Pricing**
Pricing has always been a critical factor in consumer decision-making, but by 2025, pricing sensitivities are expected to reach new heights. Consumers are not only looking for affordability but also fairness and transparency in pricing structures.
#### **Key Drivers of Pricing Sensitivities:**
– **Economic Pressures:** With disposable incomes under strain, consumers are scrutinizing prices more closely than ever.
– **Access to Information:** The digital era has made it easier for consumers to compare prices, read reviews, and identify hidden fees, making them more discerning shoppers.
– **Subscription Fatigue:** As subscription-based models proliferate, consumers are growing wary of recurring costs and are demanding greater clarity and flexibility.
#### **Implications for Businesses:**
Brands must adopt pricing strategies that reflect consumer expectations for fairness and transparency. This could involve offering tiered pricing models, eliminating hidden fees, or providing clear explanations of cost structures. Additionally, businesses should leverage technology to personalize pricing and promotions, ensuring that customers feel they are getting the best value for their money.
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### **How Businesses Can Adapt to These Trends**
To succeed in 2025, businesses must adopt a consumer-centric approach that addresses thriftiness, social norms, and pricing sensitivities. Here are some actionable strategies:
1. **Invest in Data Analytics:** Understanding consumer behavior through data will enable businesses to tailor their offerings and pricing strategies to meet evolving needs.
2. **Embrace Sustainability:** Aligning with eco-conscious values can help brands appeal to thriftier and socially aware consumers.
3. **Enhance Digital Engagement:** Leveraging social media and online platforms to build trust and foster community connections will be crucial.
4. **Offer Flexibility:** Whether through customizable products, flexible payment options, or subscription models with no-commitment clauses, flexibility will be a key differentiator.
5. **Focus on Transparency:** Clear
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