5th

2024
Annual

Consumer
Culture Report

Insight into the complexities of the modern consumer’s motivations, influences and purchasing habits
 To splurge or not to splurge,
Introduction that is the question
Inflation continues to be a
In last year’s report, we discovered that half (52%) of consumers in this year’s study. Electronics & technology (52%) and health

inflation and the rising cost of living Meanwhile, last year, over a third (36%) of & wellness (52%) continue to rank as the

were making consumers less inclined consumers said they tend to splurge on clothing categories consumers are first and second

hot topic across social and to splurge on products and services & fashion, which rose to 42% in 2024. most likely to spend big bucks on.

Consumer across all categories than they had

political verticals in 2024. been in years prior. However, this year’s What’s more is that consumers are more likely Meanwhile, travel & experiences are on the

spending findings tell a different story. to splurge on dining out than they were in 2023
(44% vs 40%).
ascent. In fact, this year’s findings show a 7%
increase in the number of consumers willing
However, our latest study on consumer behavior intentions and Although for the most part, consumers would to splurge on travel & experiences when
reveals that inflation has become little more
than a buzzword for consumers who have grown
priorities rather save than splurge in each of the categories–
apart from electronics & technology (52%) and
compared with data from 2023 (45% vs 38%),
bringing up the category from fifth to third
accustomed to the financial roller coaster they health & wellness (52%) – we did see at least a place on our list of splurge-worthy categories.
There are also some
have found themselves on since 2020.
Content 1% increase in the percentages of consumers who
said they tend to splurge in all categories when movers and shakers Elsewhere, Beauty & Personal Care (43%)
In fact, the research shows that consumers are
loosening their purse strings, especially when it
that compels compared to the results from our previous report. when it comes to rose one slot on our list thanks to another
6% increase since last year in the number of
comes to travel & experiences that may not have consumers For example, in 2023, around 2 in 5 (43%)
the categories that
consumers are most
consumers who said they tend to splurge in
been possible in previous years.
to purchase consumers said they tend to splurge on health
& wellness products, which rose to more than
likely to splurge on.
this category (43% vs. 37%).

Throughout this report, we identify key opportunities

for brands based on our findings and share actionable

Attitudes
insights to help shape strategies for the year ahead,
with deeper insights into the following topics: Splurge rankings YoY:
towards the comparing categories consumers say they tend to splurge on
in-store 2024 2023 2022
shopping 1
experience
Electronics & Technology (52%) Electronics & Technology (51%) Electronics % Technology (57%)

2 Health & Wellness (52%) Health & Wellness (43%) Health & Wellness (49%)

3 Travel & Experiences (45%) Home Goods & Furniture (42%) Home Goods & Furniture (48%)

4 Dining Out (44%) Dining Out (40%) Dining Out (46%)

5 Beauty & Personal Care (43%) Travel & Experiences (38%) Travel & Experiences (44%)

2024 CONSUMER CULTURE REPORT 2 2024 CONSUMER CULTURE REPORT 3

 Splurge-worthy categories broken down by age Consumer spending habits, past, present and future

Looking at the categories consumers are most likely to splurge on broken down by age, reveals the Results from our latest study show that consumers’ This is illustrated by the table below, which compares where

universal appeal of products and services in the electronics & technology and health & wellness spending priorities have shifted since 2023. consumers thought they would spend most of their disposable

categories. Both are the top choices across every age group, and are especially popular among 16-24, income in 2023, where they actually spent it that year; and

25-34 and 35- to 44-year-olds. where they think they will spend it in 2024 .

The findings also show that consumers in these younger age Overall, our splurge category rankings show that consumers are Predicted spending in 2023 Actual spending in 2023 Predicted spending in 2024
groups are more likely to splurge than they are to save on beginning to loosen their purse strings despite conversations
1 Clothing & Fashion (38%) Dining Out (45%) Travel & Experiences (41%)
their top categories. Meanwhile, those aged 45+ continue to around the continuing economic instability. We’ll explore these

exercise more caution over their spending. spending habits further in the following section.
2 Dining Out (37%) Clothing & Fashion (40%) Dining Out (36%)

16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+ 3 Travel & Experiences (33%) Travel & Experiences (30%) Clothing & Fashion (35%)

Splurge Electronics Electronics Health & Electronics Electronics Health & 4 Electronics & Technology (29%) Electronics & Technology (30%) Health & Wellness (32%)
#1 & Technology & Technology Wellness & Technology & Technology Wellness
(61%) (61%) (62%) (50%) (44%) (45%)
5 Health & Wellness (29%) Beauty & Personal Care (29%) Electronics & Technology (26%)

Splurge Health & Health & Electronics Health & Health & Electronics
#2 Wellness Wellness & Technology Wellness Wellness & Technology Last year, our research showed that consumers entered 2023 with almost half (45%) named this as the category they spent most of
(59%) (61%) (59%) (50%) (38%) (42%) expectations of curbed spending, indicating they only planned to their disposable income on that year, making it the top response.

spend across key categories. However, this year’s survey indicates

that consumers were more likely to have spent most of their Meanwhile, just over 1 in 5 (21%) consumers said they planned
Splurge Beauty & Clothing Clothing Travel & Dining Home Goods disposable income across more verticals than they had anticipated. to spend most of their disposable income on beauty & personal
#3 Personal Care & Fashion & Fashion Experiences Out & Furniture
care in 2023. However, almost 3 in 10 (29%) say they actually
(57%) (54%) (58%) (45%) (36%) (39%)
For example, less than 2 in 5 (37%) consumers said they planned to spent most of their disposable income on this category.

spend most of their disposable income on dining out in 2023. And yet,

Shifting Priorities

This year’s findings also reveal that spending In fact, just as we saw when comparing the categories

priorities are continuing to shift, with consumers consumers are most likely to splurge on, travel & experiences

being less likely to predict how they will spend most has climbed the wallet share rankings to become the category

of their disposable income in several categories in consumers are most likely to say they will spend most of their

2024, including dining out and clothing & fashion. disposable income on this year.

However, consumers are much more likely to say they are planning

to fork out on travel & experience than they were to spend on this

category the previous year.

2024 CONSUMER CULTURE REPORT 4 2024 CONSUMER CULTURE REPORT 5

Content that
16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+

Word of mouth 39% 40% 43% 51% 52% 47%

compels consumers
Customer reviews
or testimonials 36% 40% 40% 54% 51% 44%

Coverage of the brand in media

(print, online, TV, audio)
23% 32% 33% 24% 25% 19%

Television coverage 17% 16% 29% 22% 23% 24%

Organically created TikTok

video/ User-generated content 32% 28% 19% 14% 4% 1%
Our research shows that the best way for brands to media, this doesn’t necessarily mean that consumers are not paying

convince consumers to purchase from them is by attention. Consumers are almost constantly bombarded with social

sharing the genuine experiences of customers just media content from brands competing not only for their attention,

like them. but for the transaction. To make sure they don’t start losing out
Defining word of mouth
to competitors, it’s still important for brands to ensure that their Definition of “word of mouth” % of consumers

According to our findings, word of mouth (46%) and customer content is always in the mix. Even if paid advertising is less likely The findings clearly show that one of
You’re informed about a product or service by
reviews/ testimonials (44%) came out on top as the types of content to compel consumers to make a purchase at the moment, brands the best ways for brands to persuade a friend or family member you know in real life 71%
that most compel consumers to purchase from a brand. certainly shouldn’t take this as a sign that they can afford to do away consumers to purchase from them is by
with paid advertising. harnessing the power of word of mouth. You’re informed about a product or service
While the data shows that consumers are less likely to feel through customer reviews or testimonials 68%

compelled to purchase from a brand by paid advertising on social These days, word of mouth can come from a variety
You’re informed about a product or service on social
of sources, from friends and family to influencers and media by a video made by a user that organically made 55%
% of consumers who say this type of content celebs. However, consumers are more likely to equate its way onto your social media feed
Type of content
most compels them to purchase from a brand
information given to them about a product or service
You’re informed about a product or service on social media
Word of mouth 46% from some sources with word of mouth than others.
by a verified user (Influencer or user with checkmark) 47%

Customer reviews or testimonials 44%

We asked consumers to rate various definitions of
You’re informed about a product or service on social media
by a recognizable celebrity 36%
Coverage of the brand in media (print, online, TV, audio) 26% word of mouth according to how closely it resembles

their own definition of the term. Here, we’ve ranked¹

Television coverage 22%
responses according to how much they resemble

Organically created TikTok/ User-generated content 16% consumers’ own idea of word of mouth. A high percentage of consumers also believe that being informed

through customer reviews or testimonials also resembles their

Overall, what these rankings show is that consumers become less likely definition of word of mouth.

Word of mouth ranks highly for all age groups, with consumers in An interesting finding worth noting for brands hoping to attract the to equate information about products and services with word of mouth

the 45-54 (51%), 55-64 (52%) and 65+ (47%) age brackets being youngest consumers is that although just 16% of consumers overall the further removed from them the source becomes. Consumers do also say that social media content generated by users,

especially likely to say this is the type of content that most compels say organically created TikTok video / user-generated content most influencers and celebrities resembles their definition of word of mouth.

them to purchase from a brand. compels them to purchase from a brand, this percentage is twice Unsurprisingly, consumers are most likely to think that being informed However, this is less likely to be the case for consumers as the sources

as high among consumers aged 16-24 (32%). In fact, this age group about a product or service by a friend or family member they know in of information become less ‘like them’. This may be because as sources’

Customer reviews and testimonials are also a powerful way for were more likely to say this type of content most convinces them real life equates to word of mouth. It’s also worth noting that consumers fame grows, consumers assume they will have been paid by brands

brands to persuade consumers in all age groups to purchase from to purchase than they were to say they are most swayed by brand were by far most likely to give this response the top rating (46%) in to promote products and services, therefore making the information

them, but particularly for those looking to target consumers aged media (23%) and TV (17%) coverage. terms of how closely it resembles their definition of word of mouth. provided less impartial, perhaps even less trustworthy.

25-34 (40%) and 45-54 (54%).

2024 CONSUMER CULTURE REPORT 6 2024 CONSUMER CULTURE REPORT 7

Word of mouth and social media

Breaking this data down by age, reveals some However, it’s the 16-24 age group that completely bucks the overall
interesting comparisons between attitudes towards trend as they are most likely to say being informed about a product
social media across the age groups. or service on social media by a video made by a user that organically

made its way onto their social media feed resembles¹ (67%) their
Whilst overall consumers were most likely to say that being informed definition of word of mouth. High percentages of consumers aged
about a product or a service by a friend or family member, they know 25-34 (64%), 35-44 (60%) and 45-54 (59%) say the same. However,
in real life resembles¹ their definition of word of mouth, this is not there is a notable drop off in the percentages of consumers aged
necessarily the case for all age groups. In fact, for those aged 25- 55-64 (46%) and 65+ (40%) who also think user generated content
34 (65%) and 45-54 (72%), word of mouth is most likely to equate¹ resembles* their definition of word of mouth.
to being informed by customer reviews and testimonials, which was

ranked second overall.

16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+

You’re informed about a product or service by Word of mouth and brand awareness
a friend or family member you know in real life
61% 62% 64% 71% 83% 81%

You’re informed about a product or service Our research shows that word of mouth and brand
through customer reviews or testimonials
60% 65% 62% 72% 72% 75% awareness go hand in hand.

Overall, the findings demonstrate to brands the importance of We often hear companies say that brand awareness is too tricky
You’re informed about a product or service on social media by a video
made by a user that organically made its way onto your social media feed
67% 64% 60% 59% 46% 40% covering all bases when it comes to the ways they share word to measure.

of mouth, as different age groups have their own preferences for

You’re informed about a product or service on social media where this information comes from. However, when we think of brand awareness as the result of
by a verified user (Influencer or user with checkmark)
44% 54% 54% 48% 42% 42%
sharing word of mouth, it becomes much easier to quantify. After

This information being shared from a variety of sources, whether all, brands can easily measure the reach of word of mouth shared
You’re informed about a product or service that’s people we know or social media stars and celebrities, through customer reviews and social media content, which in turn
on social media by a recognizable celebrity
38% 45% 48% 36% 29% 25%
contributes to what we think of today as ‘brand awareness’. can give them a strong indication of brand awareness.

Meanwhile, consumers aged 25-34 (54%) and 35-44 (54%) are the What these findings indicate is that while information from sources

most likely of the age groups to say information coming from social on social media are a less potent way for brands to persuade

media verified users resembles¹ their definition of word of mouth, consumers to purchase from them overall, these forms of word

while those aged 55-64 (42%) and 65+ (42%) are least likely. of mouth are still particularly valuable for those wishing to target
Notes

younger consumers.

Similarly, consumers aged 25-34 (45%) and 35-44 (48%) are the most ¹Respondents were asked to rate each of the definitions of word of mouth from 1-5, where 1 = most resembles and
likely of the age groups to say content coming from recognizable 5 = least resembles their own definition. To achieve our rankings, the percentages of respondents who rated each
celebrities resembles¹ their definition of word of mouth, while those of the definitions 1-3 (i.e. resembles) were combined. We then used these percentages to rank the definitions
aged 55-64 (29%) and 65+ (25%) are much less likely. according to how likely respondents are to say that the definition of word of mouth resembles their own.

2024 CONSUMER CULTURE REPORT 8 2024 CONSUMER CULTURE REPORT 9

In-store vs.
In-store experience % of respondents

Exclusive in-store deals (52%) and products

Exclusive in-store deals 52.32%

E-commerce shopping
(44%) come out on top. Meanwhile, around

a fifth of brands’ customer bases would be

tempted by aesthetics (21%) or a personal

Exclusive in-store products 43.94% shopper/stylist (21%) offering.

It is also worth brands noting that consumers

Instant gratification 31.82%
prefer shopping in-store at department stores

that stock multiple brands (49%) over shopping

Brands’ fight to keep their stores open will wage on in 2024. Aesthetic / store is set up as an experience or destination from singular brand retailers (22%).
21.40%
(think mural walls / Instagrammable)

In this section, we’ll be looking at some of the while almost 3 in 10 (28%) say they think of shopping as a
Personal Shopper/Stylist 21.25%
ways brands can make sure their brick-and-mortar social activity they enjoy with friends and family.

stores can continue to be a valuable and profitable

part of their business for years to come. Another promising finding is that although consumers are Influencer events 16.81%
more likely to say they prefer to browse for items online

Our findings on consumer associations with shopping reveal that (51%), a sizable 39% do say they prefer to browse for items

there is plenty for brands to be hopeful about when it comes to in-store.

the in-store shopping experience. Winning over the youngest consumers

The question for brands is, how do they capture these groups

The key point to make here is that healthy percentages of brands’ of consumers? Consumers aged 16-24 appear to have the hardest time also just as likely to say they prefer browsing in-store (43%) as
potential customer bases think of shopping as an enjoyable determining what they associate with shopping. In fact, they are they do online (43%).
experience. It’s this enjoyment factor that brick-and-mortar The chart on the next page highlights the in-store experiences the group most likely to not associate shopping with any of the
stores are especially well-positioned to deliver. brands can offer to entice consumers to shop-in-store definitions we provided (10%). What this implies is that the youngest group of consumers are
instead of online. still defining their shopping personas and are not yet set in their
In fact, almost 2 in 5 (37%) consumers say that shopping is an Not only are they just as likely to think of shopping as an activity ways when it comes to shopping habits. There is therefore a big
activity they enjoy doing alone for personal enjoyment or leisure, they enjoy doing alone for personal enjoyment or leisure (37%) opportunity for brands to win this age group over.

as they are to think of it as a social activity (37%), but they are

According to our findings, 1 Exclusive in-store deals (46%)

the top 3 ways 2 Exclusive in-store products (40%)

brands could consider enticing this

Aesthetics / store is set up as an
age group to shop in-store are: 3 experience or destination (39%)

2024 CONSUMER CULTURE REPORT 10 2024 CONSUMER CULTURE REPORT 11

 1 Here, There, Everywhere

What With word of mouth and customer review emerging as powerful drivers for consumer purchases,
the comprehensive brand experience has never been more important. Brands must excel at every
touchpoint to provide a seamless customer journey from browsing to checkout, as well as providing

Next?
exceptional customer support and engaging social media and email marketing experiences.

2 A Tailored Fit
We’ve revealed some Diverse definitions of ‘word of mouth’ and generational variances in spending habits reinforce the
importance for brands to tailor communications to their specific audiences. This is a crucial step in
fascinating insights into the creating meaningful connections and experiences, rather than just making sure your brand is noticed.

current consumer landscape,

from rising interest in spending 3 Feed the Feeds

against ongoing buzz around At the same time, with consumers being bombarded with content across a multitude of channels, it’s
vital to secure your brand’s presence on their feeds. While paid advertisements might not be the most
inflation, to generational compelling content driving immediate purchases, establishing brand awareness feeds into the more
impactful content, like word of mouth, that does drive sales.
preferences that result in sales.

But what should brands do with

this information? 4 Micro Influence, Macro Impact

Good news for brands hoping to maximize their modest budgets, younger consumers value the opinions
of micro influencers over the opinions of macro influencers and celebrities. While there is a right time
Here are some thoughts to and place to collaborate with everyone, establishing connections with the right micro-influencer in your
niche can still yield the desired results for your brand.
consider, and ideas to leverage,

which we would be happy to

apply in a brainstorm with 5 Personal Investments

Consumers are more inclined to spend more on products that enhance their lives – making it easier,
your brand. better, and healthier. Tailor your brand and product communications to showcase how easily they
integrate into the consumer’s lifestyle, ultimately enriching their experience.

6 Intention into Action

In non-tangible goods categories such as travel and experiences, consumers may be spooked by soaring
prices and ongoing buzz around inflation. Although they express a desire to spend, they hesitate when
it’s time to purchase. Beyond aspirational marketing, brands need to clearly articulate the mental and
emotional benefits of an experience for the consumer (see personal investments above).

7 Exclusive Engagement
From a solo activity to an experience shared with friends, a considerable number of consumers still
3 Park Avenue, Floor 19 express a preference for in-store browsing. This creates both a challenge, and more importantly, an
opportunity for brands to enhance their in-store experiences. Rest assured, shoppers are eager to visit
New York, NY 10016 you in person, but it’s on you to create a compelling reason for them to do so.

212.999.5585
8 Untapped Youth
[email protected] The youngest consumers are still defining their shopping identities, presenting a unique opportunity for
us to shape their preferences during this formative period. Whether it’s the choice between in-store and
online, splurging or saving, these consumers are coming into disposable income for the first time in
their lives, unveiling untapped possibilities for brands to actively engage with these consumers.

The research was conducted by Censuswide, an independent market is a member of the British Polling Council, and abides by and employs
research consultancy, with a nationally representative sample of 2,005 US members of the Market Research Society. All survey panelists are double
12
consumers between the 28th and 30th of November 2023. Censuswide opted-in, in line with MRS code of conduct and ESOMAR standards.