Inflation Personas: Inside Consumer Mindsets on Rising Prices
As Inflation continues to rise, consumers are behaving in surprising ways. The news is full of stories highlighting seemingly contradictory behavior – from 100K+ households turning to dollar store chains, to increased consumer spending despite noticeably higher prices on goods and services. At Hypothesis, we were curious: what, exactly, is going on behind these strange macro patterns? So, we did some research. We polled a representative sample of Americans about their perspectives on inflation – and life in general – to better understand their mindsets. We wanted to know: how are people feeling? Are they cutting back on spending? Is inflation even the most pressing issue on their minds? And if so, what are they doing to cope?
Our research showed that consumers were falling into three distinct Inflation Personas with similar outlooks and corresponding behaviors. Read on to learn more about the Inflation Personas, and get tips for how to best communicate with each one while prices remain high.
Get to Know the Inflation Personas
Three personas emerged from our research: 🤝 Opportunists, 👑 Minimizers, and 😠 Corporation Blamers.
Inflation Persona 01: The Opportunist
Disciplined and optimistic, Opportunists feel in control despite the challenges of inflation. They're cutting back on spending, but are ultimately confident that everything will turn out okay.
“You have to look at your money and plan correctly.”
Inflation Persona 02: The Minimizer
Minimizers may notice that prices are higher, but they certainly aren't going to let that get in the way of treating themselves to what they deserve. Inflation is just one of many things on the Minimizer's mind, and they're optimistic it'll all work out in the end.
“I work my ass off. I should be able to reward myself.”
Inflation Persona 03: The Corporation Blamer
Angry, worried, and vulnerable, Corporation Blamers have been hit hardest by inflation and are upset with companies and government institutions about rising costs. Forced to make tough choices on basic necessities, many are at their breaking point. To Blamers, price hikes feel personal.
“Companies are taking advantage of the everyday working person just to make a few extra dollars. It’s disgusting. We are barely staying afloat.”
Inflation is a Shared Concern, but Worries Vary Among Persona Types
All persona types are concerned about inflation – not surprising, given the state of rising costs. But the three groups stand apart in their degree of worry about other topics, and this offers added insight into their respective worldviews. Aside from inflation, Corporation-Blamers are most concerned about economic inequality, which explains why inflation is particularly stressful for this group. Opportunists worry about the pandemic, crime, and climate change, areas of concern that feel out of their immediate control. Minimizers worry least. While economic concerns are still present among this group, they tend to be less worried about broader topics like the pandemic, crime, and climate change.
What the Personas are Cutting Back On, In Their Own Words
Concerns may vary by persona type, but our survey results made it clear that everyone is making an effort to cut back spending to some degree.
Opportunists are cutting spending across the board. Their responses indicate a measured approach to the times, and a feeling of control over their economic outlook.
Minimizers are looking on the bright side of cost cutting. In certain cases, they’re emphasizing how reducing spending in one area is helping them to allocate more funds to other priorities.
Like Opportunists, Blamers are also cutting costs across the board. But unlike their more confident counterparts, they don’t feel as if they have much say in the matter. This lack of control gives way to anger, and a feeling of being left behind.
Navigating Uncertain Times
As consumers emerge from the fog of a global pandemic and enter a new normal defined by uncertain financial markets and rising prices, behaviors are sure to shift in interesting ways. Your customer base is continuously evolving, and persona studies like this are one way to keep up. How can your brand authentically connect with vastly different consumer groups across channels and mediums? If you aren’t sure, we’d love to partner with you to figure it out.
Data analysis for this content was contributed by Jenny Collins and Maia Wapnick, with design work by Ashley Gonzalez.