How to Deliver Bad News About Higher Prices and Keep Customers Loyal
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Multicultural Consumer

How to Deliver Bad News About Higher Prices and Keep Customers Loyal

/ Report

 

This is one of a series of insight papers drawn from our latest wave of research into Multicultural Consumers in North America. For more insights into this topic, please visit: https://www.conference-board.org/topics/multicultural-consumer

  

Communicating price increases is a top challenge for businesses

Companies and consumers in the US and across the world have been grappling with record inflation in the last year. Our recent C-Suite Outlook 2022, a midyear update of our annual survey, found that, globally, passing increasing input costs to customers has been the most common reaction, taken by slightly more than half of all companies, followed by cost cutting (46 percent) and accepting lower margins due to higher input cost (39 percent).

But passing on higher costs doesn’t come easy to executives in the C-suite: 44 percent report the biggest external communications challenge in the current volatile environment to be communicating the impact of rising input costs on the pricing of their products and services.

 

This is one of a series of insight papers drawn from our latest wave of research into Multicultural Consumers in North America. For more insights into this topic, please visit: https://www.conference-board.org/topics/multicultural-consumer

  

Communicating price increases is a top challenge for businesses

Companies and consumers in the US and across the world have been grappling with record inflation in the last year. Our recent C-Suite Outlook 2022, a midyear update of our annual survey, found that, globally, passing increasing input costs to customers has been the most common reaction, taken by slightly more than half of all companies, followed by cost cutting (46 percent) and accepting lower margins due to higher input cost (39 percent).

But passing on higher costs doesn’t come easy to executives in the C-suite: 44 percent report the biggest external communications challenge in the current volatile environment to be communicating the impact of rising input costs on the pricing of their products and services.

In the US, which faced a record 9.1 percent inflation in June 2022, the categories consumers identified as most challenging due to inflation included (in rank order): groceries, gasoline and home energy, restaurants/take-out meals, housing expenses, and phone/internet/cable/streaming services. The strain felt by widespread price increases is so intense that almost three quarters of US consumers want the government to do something to slow inflation, according to our most recent survey of consumers of Asian, Black, Hispanic, and Non-Hispanic White descent. Their most common

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