The current landscape of global trade is anything but predictable. With ongoing tariff discussions introducing new complexities for consumer brands, uncertainty looms over budgets, supply chains, and bottom lines. In response, many companies may consider cost-cutting measures, including scaling back market research investments. However, history—and data—suggest that this is exactly the time when businesses should double down on customer insights.
Organizations that prioritize understanding consumer behavior during times of economic uncertainty are better positioned to maintain strong shopper relationships, communicate pricing/claim changes effectively, and retain brand loyalists through direct real-time feedback across product and/or experiences. Here’s why now is the time to invest in market research—not pull back.
1. Preventing a Disconnect with Shoppers and Brand Loyalists
Consumer trust erodes most in trying times—especially when price fluctuations hit shoppers the hardest. Shoppers may not understand why their favorite brands are raising prices or modifying product offerings. Without clear communication, they may seek alternatives.
Market research plays a crucial role in preventing this disconnect by uncovering what matters most to consumers and how to communicate changes effectively. Through shopper insights, surveys, and focus groups, brands can determine the best messaging strategies to retain trust—whether through transparency in pricing, loyalty incentives, or educational content about supply chain challenges.
For example, if an ingredient in a best-selling product is impacted by tariffs, brands can educate consumers about sourcing costs and emphasize the continued value of their product. If a substitute ingredient is required, research can also help assess how changes might impact taste, quality, or overall experience—ensuring brands communicate transparently to preserve trust and avoid disrupting shopper loyalty.
2. Optimizing Product and Pricing Strategies
Tariffs and rising costs force businesses to make tough decisions: Should they absorb additional costs, pass them on to consumers, or adjust product formulas?
Rather than making these decisions in a vacuum, research-backed pricing strategies ensure that brands strike the right balance between profitability and consumers’ willingness to pay. Techniques like conjoint analysis, Kano analysis, price sensitivity studies (such as Van Westendorp), and need state deep dives help determine which price points consumers will tolerate before switching brands—and what features or benefits they truly value.
Additionally, ingredient sourcing insights can be a valuable tool. If specific materials or ingredients become cost-prohibitive, research can help identify acceptable substitutes that maintain quality while keeping prices competitive.
3. Strengthening Customer Relationships with Transparency
Shoppers value transparency—especially when price increases impact their wallets. Market research allows brands to test consumer messaging strategies to ensure they are communicating price changes effectively.
For example:
- Do consumers respond better to price increases explained through supply chain challenges or product quality assurance?
- Would a temporary discount or loyalty incentive help offset initial sticker shock?
- Which marketing channels (social, email, in-store) are best for delivering pricing messages?
Companies that proactively engage their consumers rather than reacting to pricing backlash will be better positioned to retain brand loyalty and reduce churn.
4. Gaining a Competitive Edge While Others Pull Back
When economic pressures mount, many brands instinctively cut budgets, reduce marketing spend, or delay innovation. However, history shows that those who continue investing in customer research during downturns often emerge stronger.
For example, during the 2008 Great Recession, brands like Amazon and Domino’s Pizza doubled down on consumer insights and innovation, leading to massive post-recession growth (Marketingscoop.com).
By staying in tune with customer needs and expectations, brands can:
✔ Identify emerging consumer trends and shift strategies before competitors do.
✔ Discover new product or service opportunities that align with changing economic realities.
✔ Differentiate their brand through proactive communication and transparency.
Final Thoughts: Data-Driven Decisions Win in Times of Uncertainty
Rather than seeing tariffs as a reason to cut back on research, businesses should use this moment to double down on understanding their customers. Building real-time connections with consumers and rapidly digesting feedback enables brands to optimize products, experiences, and pricing strategies with greater agility. In times of uncertainty, this responsiveness—not just data collection—will define which companies emerge stronger and more resilient.
Now is not the time to step back—it’s the time to step forward. With agile market research solutions, businesses can confidently navigate tariff-related challenges while staying ahead of competitors who choose to wait and see.
At Fuel Cycle, we empower brands with real-time consumer insights that drive smarter, more strategic decision-making. Contact us today to learn how our research solutions can help your business stay ahead—no matter what the market brings.
