Cappinio Thetariff effect Unpackingpriceelasticityandconsumerbehavior Contents IntroductionThetariffeffectPricingdecoded16 Consumerfearsaroundrisingimportcosts,vulnerableUnpackinguniquepricesensitivitiesandbehavioral categoriesandthepersonalimpactoftradepolicy.nuancesbycategory Executivesummary ShiftingbehaviorsKeytakeaways21 Changingpurchasinghabitsasconsumerscutback, tradedown,andprioritizevalueinresponsetoeconomic Personalpocketsvs. nationaloutlook Consumersentimentsnapshot:financialoptimism challenges HowAmericansreactto pricehikes Methodology22 nationalanxiety,andtheeverydaypressuresshapingPricesensitivity,unexpecteddrop-offpoints,andrealContact24 Americanviewsontheeconomy.consumerreactionstocostincreases-plusprecise pricingthresholdsacrosskeyitems. appinio PriceElasticityReport2025 Introduction Astradetariffs-whethernewlyproposed,reinstated,oranticipated-andbroadereconomicuncertaintycontinuetoshapetheconsumerlandscape,risingcosts,supplychain pressures,andpoliticalvolatilityareinfluencingnotjust sentiment,buteverydayspendingdecisions. Whileoftendiscussedthroughgeopoliticalor macroeconomiclenses,theimpactofsuchpoliciesisfeltmosttangiblyattheindividuallevel:inhowconsumersperceivethemarket,prioritizetheirneeds,andadjusttheirpurchasinginresponsetouncertainty. Throughfreshconsumerdataandbehavioralinsights collectedinApril2025,weexaminenotonlycurrentsentimentintheUsbutalsotheadaptivestrategies Americansareemployingtosafeguardtheirbudgets.Ouranalysisfurtheruncoverspricesensitivityacrosskeyproduct categories,revealingwhichgoodsaremostvulnerabletocutbacks-andwhicharelikelytoremainresilient. Forbusinesses-bothUsbasedandthosewithUs operationsorglobalties-theseinsightsprovideavaluableroadmapforaligningproductstrategy,pricing, andmessagingwithshiftingconsumerpriorities. appinioPriceElasticityReport2025 Executivesummary Thesocio-economicsentimentintheUsrevealsanuanced landscapeofconsumerconfidenceandconcern. Ourresearchshowsamixedoutlookonpersonalfinancialunavailabilityofsomeimports. situations,with33%ofrespondentsperceivingtheirfinancialstatusasunchangedcomparedtoayearago, Productcategoriesperceivedtobemostimpactedbythe while36%feelanimprovement,counteredbya30%tradetariffsincludeautomobiles(72%)andelectronics feelingofdeterioration.(70%),reflectingtheirintegralroleininternationaltradeand manufacturing. nationaleconomicoutlook,with49%ofAmericansConsumerspendinghabitsarepoisedtoshift,with68% expressingworryoverthenext12months,reflectingofpeopleplanningtocutbackondiningoutandtakeout, apprehensionsaboutongoingeconomicchallenges.Aand64%expectingtoreducespendingon majorconcernamongparticipantsisinflation,especiallyinentertainmentandleisure.Thisbroadertrendtoward ecutiv everydaygoodsandenergy,with84%and65%frugalityisreflectedinheightenedpricesensitivity-even respectivelyindicatingthisasasignificantissue.Thisalignsforeverydaystaples.Itemslikecoffee,orangejuice,cheese with66%ofrespondentsnoticinganincreaseinthecostandcerealshowsurprisingvulnerabilitytopriceincreases, oflivingrecently,with65%expectingfurtherrises.withamodest10%hikeleadingtoa17-20%dropin Theseinflationarypressuresarelikelyinfluencingconsumerpurchaselikelihood. behavior,as57%plantoreducethenumberofitems purchased,and52%intendtoswitchtolower-pricedOverall,thedatapaintsapictureofcautiousoptimismamid alternatives.significanteconomicconcerns.Thedualpressuresof inflationandtradepolicyarehoweverdrivingconsumersto TherecenttradetariffsimposedbytheTrumpadoptmoreeconomicalshoppingbehaviors.Thiscomplex administrationhaveheightenedeconomicanxiety,withinterplayhighlightsthemultifacetednatureofeconomic 74%expressingconcernabouttheirpotentialimpact.sentimentandconsumerbehaviorinthecurrentUSmarket Specifically,78%ofparticipantsareworriedaboutenvironment. increasedpricesonimportedgoods,and56%anticipate appinio PriceElasticityReport2025 Inconclusion,thestudyhighlights aUsconsumerbasenavigatingacomplex economiclandscapemarkedbyinflation worriesandtradepolicyanxieties Thisisleadingtoashifttowards moreeconomicalshoppingbehaviors andare-evaluationofspendingpriorities. presentingbothchallengesandopportunities forbusinessesinthemonthsahead appinioPriceElasticityReport2025 Personalpocketsvs.nationaloutlook:Ataleoftwoperspectives Interestingly,whenitcomestotheirownfinances,acombined33%reportedfeeling"alittlebetter"or"muchbetter" However,thispersonaluptickdoesn'ttranslatetorosynational views.Asignificant49%ofrespondentsexpressedconcern 49%66%abouttheUs'economicoutlookoverthenextyear.This contrasthighlightsapotentialdisconnectbetweenindividual experiencesandbroadereconomicanxieties. natior expressedconcernaboutnoticedanincreaseintheircostSo,whatspecificallyiscastingtheshadowofnationalconcern? theUs'economicoutlookoflivinginthepastmonth. Personalpockets overthenextyear. Awhopping84%ofpeoplepinpointrisingpricesofeveryday goodsandservicesasamajorheadache,with65%also concernedoversoaringenergycosts.Uncertaintyorproblems inthegovernmentadministrationconcern62%ofrespondents, 84%65%while38%ar