A new survey from KPMG has highlighted the challenge retailers and brands face in balancing low prices and high quality, RTÉ reported today.
In its latest Next Gen Retail Survey, the company found that over three quarters (76%) of consumers are influenced by discounts when shopping.
When it comes to choosing where to shop, price is the main driver for 56% of customers.
64% of customers reported cutting back on luxuries and non-essential products due to higher prices.
Despite this, 58% customers said they were more inclined to shop at retailers that focus on quality rather than those that focus on low prices.
A majority of those said they would pay more for quality-focused brands.
More than 60% surveyed also said they avoid brands that engage in shrinkflation – a practice in which brands and retailers sell products where the price remains the same but the size is reduced.
The survey found that two-thirds (67%) of consumers expect brands to make sustainable products more accessible and affordable.
This includes an expectation to add incentives and discounts for environmentally-friendly items.
When it comes to artificial intelligence (AI), less than one in five (18%) of customers said they felt its introduction would improve their experience.
Over a quarter said they felt the technology would improve online shopping.
44% of those surveyed said they would have to trust how retailers are using AI in the future.
This survey comes just a few weeks after British supermarket group Sainsburys announced a partnership with Microsoft that would see the retailer use AI to provide insights on its data.
Tesco announced a number of AI-related initiatives.
These included one to help cut energy costs and another aimed at its Clubcard marketing.
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