Consumer Behavior Insights: 5 Compelling Statistics for a Productive Week

Nearly three in five consumers look to online communities to inform their purchases

According to EY's Future Consumer Index, 57% of consumers turn to online communities for guidance when making a purchase. Additionally, 61% of consumers admit to purchasing a product after seeing an influencer's recommendation or promotion.

On the other hand, traditional digital advertising seems to be losing its impact on consumers. Only 21% of consumers say they click on and follow ads on social media platforms.

The research also explored consumers' feelings towards online privacy and third-party cookies. According to the survey, many people believe that pre-filled shopping carts at checkout (36%), websites tracking user movement (30%), and personalized ads based on browsing/purchase history (22%) make the online shopping experience worse.

A growing number of consumers (61%) are worried about identity theft/fraud, an increase from 55%. Additionally, 59% express concerns about data security and breaches, up from 53%, while 54% are anxious about the possibility of the company they share their data with getting hacked, an increase from 48%.

The research also explores how consumers feel about loyalty programs. Nearly half (46%) of the participants have used a coupon or voucher from a store, while only 31% have downloaded an app from a retailer or brand. The most popular loyalty features among respondents are free shipping (67%) and getting discounts on certain products in-store (49%).

Consumers divided on brands’ involvement in politics

As the UK General Election on 4 July draws near, consumers are divided on the issue of whether brands should engage in politics.

A survey revealed that 28% of respondents believe it is crucial for commercial brands to be involved in politics, while 41% prefer that brands steer clear of political discussions. Interestingly, younger consumers are more inclined to support brands being vocal about politics, with 41% of 18 to 44-year-olds in favor compared to only 17% of those aged 45 and older.

Almost half (49%) of UK consumers are feeling downbeat about the upcoming election, while 37% are feeling upbeat. There is a significant level of uncertainty surrounding the election, with 26% of consumers feeling this way.

Younger consumers are more likely to believe that a potential change in government would impact their spending habits. Specifically, 20% of 18 to 44-year-olds feel that their spending would be greatly affected by a change in government. Additionally, approximately one in five consumers across all age groups have expressed their intention to hold off on making large purchases until after the election results are in.

Source: Havas Media Network

Bank holidays fail to bolster May retail footfall

In May, the total UK retail footfall dropped by 3.2% compared to the previous year. Despite better weather and two bank holidays, shoppers were still hesitant to visit physical retail stores.

Retail footfall in May showed improvement compared to the previous month. In April, there was a 7.2% decrease in the number of shoppers visiting stores.

During May, shopping centres experienced the largest drop in footfall, with a 4.5% decrease in visits compared to the previous year. Footfall on the high street decreased by 2.7%, while retail parks saw a decline of 2.3% in visitor numbers.

Despite an improvement in footfall compared to April, many retailers will be disappointed by the year-over-year decline in May.

Helen Dickinson, the chief executive of the British Retail Consortium, urged politicians to take action to revitalize retail destinations before the General Election.

"The industry is being held back by a broken business rates system and outdated planning laws. It's crucial for politicians of all stripes to address these issues to boost economic growth, lift consumer spirits, and drive more shoppers back to our high streets and retail destinations."

Only 25% of Britons have used a generative AI tool

Only a quarter (25%) of people in the UK have tried a generative AI tool in their personal lives, as found by Oxford University’s Reuters Institute. This number drops to 20% when it comes to using AI tools in their professional lives.

When it comes to using generative AI tools on a regular basis, the numbers are even lower. Only 2% of adults in the UK use ChatGPT daily, while just 29% use it at least once a month. For other tools like Google Gemini or Microsoft Copilot, the usage drops significantly to only 7% of respondents using them monthly.

Name recognition among the major players in the AI industry is looking good, with 58% of people in the UK being familiar with ChatGPT. Following closely behind are Microsoft Copilot and Bing AI at 17%, with Google Gemini at 15%. Surprisingly, 30% of the UK population is not aware of any generative AI tools.

On the other hand, certain popular generative AI tools, such as Midjourney for creating photos, struggle with brand recognition. Only 8% of UK consumers are able to identify Midjourney by name, while X's Grok tool (formerly Twitter) is even less known, with only 4% of UK respondents having heard of it.

Source: Reuters Institute

UK public views misinformation as more concerning than AI-generated content

The UK public has a higher level of concern about misinformation online than it does the prevalence of AI-generated content.

In a recent survey by YouGov, 81% of UK adults expressed worries about the reliability of online content, while 73% are concerned about the increase in AI-generated content.

The survey also found that 76% of respondents are uneasy about digitally manipulated content, such as photoshopped images and edited videos.

The YouGov data shows that 67% of consumers are worried about misinformation from AI-generated content. However, a larger group of 75% see digitally altered content like deepfakes as a major source of misinformation.

Opinions on labelling AI-generated content are split, as discovered by YouGov. Half of the respondents (50%) think that labels could help decrease the spread of misinformation from AI-generated online content. On the other hand, 29% believe that labels would not be effective.

This mirrors the situation with digitally altered content, where again 50% believe labels are helpful and 29% disagree.

Source: YouGov

Editor's P/S:

The article presents a multifaceted view of consumer behavior in the digital age, highlighting the growing influence of online communities and influencers on purchasing decisions. It also sheds light on the concerns consumers have regarding privacy and data security, underscoring the need for transparency and ethical practices by businesses. The research also touches upon the evolving relationship between brands and politics, with consumers expressing diverse opinions on the role of commercial entities in political discourse.

Furthermore, the article discusses the impact of generative AI tools on society, revealing that while their usage is still relatively low, awareness and concerns are growing. The public's apprehension about misinformation, both from AI-generated content and other sources, emphasizes the importance of promoting digital literacy and critical thinking. The data also suggests that consumers are open to labeling AI-generated content to mitigate its potential negative effects. Overall, the article provides valuable insights into the evolving dynamics of consumer behavior and the challenges and opportunities presented by technological advancements.