Consumer Mindset - August 2024
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
NAVIGATING THE CONSUMER CONFIDENCE
The Credit Union Consumer Sentiment Index, in partnership with Core Research, has slipped slightly from to its highest level in two and a half years (74.9 in July to 72.0 in August). Ireland’s inflation rate remained steady at 2.2% in July, but concerns about the cost of living persists, with grocery inflation rising slightly to 2.8% in August. On a positive note, there has been a 3% increase in efforts to improve physical health, with a steady commitment to maintaining a positive state of mind. This renewed focus on personal well-being is encouraging, especially in times of economic and political uncertainty.
SHOULD THE MOOD BE SUSTAINED?
The growing sense of connection among the public when engaging with global and local information daily highlights the transparency of the content being consumed. However, this engagement with challenging news is also contributing to higher stress and anxiety levels, indicating that while people feel more informed, the emotional toll cannot be overlooked.
Looking on the bright side, over half of men were aware of updates around Irish and global sporting events, such as Spain winning Euro 2024, Clare's victory in the All-Ireland Senior Men's Hurling Championship, Armagh’s victory of the All-Ireland Senior Men’s Football Championship, and the Ireland Women's Football Team defeating France. Interestingly, women, even though less aware, felt these events were more important compared to men who rated their importance.
AN AUTUMN OF POLITICAL DRAMA?
August, the height of summer, brought an unexpected rise in public anxiety and stress, largely fuelled by local protests and the unfolding drama in US politics. These tensions even cast a shadow over the upcoming sporting events, which typically offer a reprieve from daily concerns.
As a result, many people found themselves feeling more anxious, stressed, and generally “fed up.” As Ireland enters its own pre-general election phase, these heightened emotions are likely to influence how people perceive local politics and policies. Negative experiences and emotions, particularly those tied to recent events, can strongly shape future perceptions and decisions.
In a hypothetical US voting scenario, the Democratic Party’s values and beliefs seem to resonate deeply with the Irish population. This reflects a cultural and ideological connection that has remained strong over time, suggesting that these shared values could influence both international and local political landscapes as Ireland navigates its own political challenges.
The events and public sentiments of August 2024 offer valuable lessons for brands. By understanding the emotional landscape and the socio-political context, brands can craft messages that resonate deeply with consumers. Whether it’s by aligning with positive narratives, addressing economic concerns, or building on the public values, the key lies in being attuned to the changing dynamics and responding with authenticity and empathy. To quote Philip Kotler “Consumers are increasingly seeking brands that help them achieve their personal goals, especially in times of uncertainty.”
When it comes to making decisions, consumers think they’re in control. They think they’re making smart, rational choices. But are they? Or are they influenced by emotional, social, and contextual factors when making purchasing decisions. Our Consumer Mindset report will continue to track these external influences on public mood.
