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Loyalty on the line: How price increases are reshaping consumer choice

As tariffs push prices up, consumers are reevaluating their brand loyalties—and many are walking away for good. What once felt like long-term relationships are now being tested by sticker shock, with even high-income shoppers turning to discount retailers and finding satisfaction in switching.

“Consumers feel like they are spending more on everything in their lives,” said analyst Claire Tassin on a recent Morning Consult webinar.

Here’s what brands need to know.

Price increases are causing a loyalty crisis

Categories with high purchase frequencies—like groceries, health and wellness, and personal care—are where consumers are noticing spend increases the most, according to data provided in the webinar. And it's taking a toll on brand relationships.

  • “Those same categories where people feel like they’re spending a lot more are the same categories where people are switching up the brands,” said Tassin.

This trend isn’t isolated to lower-income shoppers. Even higher-income consumers, who are generally more resilient to price changes, are shopping at discount stores like Walmart, Costco, and Dollar General—sometimes alongside higher-end retailers.

Customers are happy after switching—and rarely look back

Brands hoping for a boomerang effect may be disappointed.

  • Of shoppers who switched brands, 57% were “very satisfied” with their replacement brand, and 26% reported spending “a lot less,” per Morning Consult.
  • Additionally, 21% found their new favorite brand on the first try, and most needed only one to three attempts.
  • “The barrier to switching is pretty low,” said Tassin. “And the rewards are high.”

Worse, many shoppers are holding grudges about price increases, particularly against grocery, restaurants, and clothing/shoes/accessories brands.

  • “There is a lot of emotion wrapped up in a lot of these brands,” said Tassin, “especially those that we interact with in our day-to-day lives.”
  • To prevent backlash over price increases, Tassin recommends brands communicate transparently and highlight the product’s value and quality.
  • “If you do have that really good brand story and high quality to justify a higher price point, that’s what we’ve got to be talking about right now,” she said.

Being trapped isn’t the same as loyalty

The top three factors preventing consumers from switching brands—even if they want to—are: convenience (38%), the brand is cheaper (29%), and they can’t shop elsewhere (27%).

  • But these aren’t loyalty-building strategies—they’re barriers.
  • “Shoppers just kind of feel trapped, which is not great and not really what we want for our consumers,” said Tassin.

To foster real loyalty when raising prices, brands must remember:

  • Consistency is king. “Being able to consistently meet our customers’ expectations was far and above extremely powerful,” said Tassin, noting that consistently meeting expectations was the most powerful driver of consumers’ first choice and favorite QSR restaurants.
  • Product excellence still matters. Whether it’s taste for food or quality for apparel, “The product has to do what it’s promising to do,” said Tassin.
  • Shared values drive emotional loyalty. Consumers stick with brands that align with their identity and needs, from health-conscious menus to budget-friendly options for families.

 

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

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