One might assume that the world is awash in frugal buyers. Why wouldn’t it be? With most of the global economy struggling to recover from the COVID-19 crisis, one would expect households to be tightening their budgets. Indeed, in the major markets we have studied, in rich and poor nations alike, anywhere from 70% to 90% of consumers identify themselves as “value conscious.”
But how thrifty are consumers when faced with an actual buying decision? In particular, how attentive are they to the price tag? And are they always likely to go for the cheapest option or only under certain circumstances?
To answer these questions, BCG’s Center for Customer Insights interviewed 40,000 consumers around the world to learn more about what drives their choices at the time of purchase—and at the time a product is being used—in different markets and categories. Among our key findings: it could be a serious mistake to base global pricing strategies on the assumption that “value consciousness” is an overarching preference among consumers.