AI INCREASINGLY IMPACTS CONSUMERS' BUYING DECISIONS - STUDY

KUALA LUMPUR, Sept 24 (Bernama) -- NielsenIQ (NIQ), the world’s leading global consumer intelligence company, in its latest report found consumers remain determined and resilient despite the uncertainty, providing a strategic roadmap for retailers looking to win over consumers over the next 12 to 18 months and beyond.

NIQ Chief Operating Officer, Tracey Massey said there is increasing demand for artificial intelligence (AI)-driven insights based on large quantities of granular data that only the company can deliver.

“Having your finger on the pulse of current and expected consumer behaviour that is benchmarked globally is now table stakes to establish and maintain any competitive advantage,” she said in a statement.

Its much-anticipated Mid-Year Consumer Outlook: Guide to 2025 report identified macro catalysts across industries, highlighting global catalysts to change such as readiness for AI, the rise and impact of GLP-1 medications, omnichannel evolution, and hot commodity costs.

Buying decisions increasingly influenced by AI, with 40 per cent of consumers willing to use AI to enhance daily shopping decisions, while social commerce revolution has led to the evolution of omni, with an 11.6 per cent increase in global online sales performance and the rise of gamification, with 36 per cent of consumers saying they would spend more on a purchase because of an in-app experience.

Meanwhile, among top trends framing expected 2025 spending are rising food prices continues to be consumers’ top concern (33 per cent), followed by increasing utilities costs (20 per cent), the threat of an economic downturn (19 per cent), and climate change ​due to the numerous extreme weather occurrences worldwide (14 per cent).

Consumers also intend to continue cutting back on non-essentials like Out-of-Home (OOH) Dining (38 per cent), OOH Entertainment (37 per cent), and Food Delivery/Takeaways (36 per cent)​, which will see a decreased spend on OOH activities.

The forward-looking study also revealed the pace of monthly consumer packaged goods (CPG) inflation continues to slow across countries, down to less than two per cent growth year over year (YoY). Inflationary pressures is also trending down regionally, but they remain higher than average in Latin America and Africa.

With the global economy facing ongoing and unprecedented challenges, understanding consumer behaviour has become mission-critical for businesses seeking to thrive in an ever-evolving landscape.

NIQ’s semi-annual study offers a comprehensive analysis of the impact of economic events and trends on consumer confidence, changes in consumer attitudes, and important insights into the factors influencing purchasing decisions.

-- BERNAMA