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Tight budgets and rising product prices are causing more shoppers to ditch their favorite brands for cheaper alternatives, new research has found.
In a DOSS survey of more than 1,000 Americans, 60% of shoppers said they had abandoned a brand they used to love because of rising prices. USA TODAY exclusively published the study for the first time.
“Rising prices appear to be changing not only how Americans spend their money, but also who they want to spend it with,” Sebastian DeBrowware, vice president of business development and marketing at DOSS, told USA TODAY. DOSS’ products help companies automate inventory management.
What price increase is too big for loyalty?
The survey results showed that younger, female and lower-income shoppers were more willing to abandon brand loyalty. 61% of Gen Z and Millennials say they have abandoned a brand, compared to 58% of Baby Boomers and 57% of Gen X.
Women (62%) are more likely to switch brands than men (56%), with 62% of those earning less than $25,000 saying they have ditched a brand, compared to 52% of those making $100,000 or more.
On average, a 16% price increase was enough to drive shoppers away from their favorite brands, and the median price increase was 10%. Baby boomers said they would switch to a cheaper brand because of a 12% price increase, while Gen Z and Millennials said it would take a 17% price increase to make the switch.
Among those who switched from a favorite brand, 76% switched to groceries, 41% to personal care, 39% to household products, and 39% to eating out.
After ditching a popular brand, 53% of those surveyed said they switched to a generic version, 52% said they went to a cheaper name brand, and 48% went to a private label or store brand. 41% have stopped purchasing that type of product altogether.
Another study released earlier this year by the Kearney Institute also found that shoppers are choosing cheaper alternatives, with 37% of respondents saying they were substituting for cheaper brands.
Where are costs increasing the most?
Shoppers surveyed felt the pain of inflation the most in the grocery category, with 82% citing it as the category that saw the biggest price increases.
76% of respondents cited gas and fuel, while 46% said rising utility costs caused the biggest shock. 42% said eating out and takeout had increased the most.
Respondents also shared the parts of their budgets they had cut in the past few months. The most common category was eating out and takeout (62%), followed by vacations or travel (48%), and reductions in entertainment and concerts at 47%. 44% said they would cut back on social outings and date nights, and 38% said they would cut back on hobbies and personal interests, as well as buying higher quality or healthier groceries.
“Overall, consumers are becoming much more intentional with their discretionary spending,” DeBruware said.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
