• by Ray Schultz , Columnist, 2 hours ago

It’s no big secret why consumers are clicking on email discount offers in such numbers:inflation. 

But this is not solely about cost. People believe companies are using inflation as an excuse for gouging, judging by a new study by Omnisend, conducted by Cint. 

Of those polled, 85% believe brands and retailers often use inflation to justify raising prices by higher amounts than necessary. And this is leading to a growing suspicion: 67% say higher prices have changed their feelings about brands they liked, and 56% have stopped buying from those brands. Another 22.2% say they trust them less. 

Shoppers feel these price increases are the most unfair:

• A company shrinking the package but charging the same price—28.6%
• A company adding fees at checkout—14%
• A company raising the sticker price—10.2%
• A company making discounts harder to get—8.1%
• A company charging more for faster shipping or convenience—6.2%

These tactics aren’t invisible: 89% of consumers notice when “shrinkflation” — providing less product for the same amount of money — occurs. 

Asked how they are paying for food, gasoline, rent or healthcare, consumers list: 

• Credit card, knowing I might not pay it off right away—35.9%
• Borrowed money from family or friends—13.8%
• Buy now, pay later—12.7%
• Savings I had planned to use for something else—16.2%
• I delayed paying another bill—9.3%
• Payday loan or cash advance—8.4%
• Store payment plan—7.6%
• I have not used any of these for essentials—36.2%

Who are people blaming when prices go up? They cite:

• The White House/current administration—45.1%
• Tariffs—23.9%
• Congress—22.7%
• I don’t know who to blame—17.3%
• Supply chains/shipping—12.2%
• Brands/manufacturers—11.8%
• The Federal Reserve—9%
• Labor costs/wage increases—8.7%
• Foreign governments—8.7%
• Consumers continuing to buy despite higher prices—8.5%
• China/overseas manufacturing—5.1%
• Other—2.4%

But consumers are fair—up to a point. Among the reasons they accept for rising prices are better product quality (19%), higher wages for workers (16%), and rising ingredient or material costs (15%).

"Consumers understand that costs change, but they want those changes to make sense,” says Marty Bauer, ecommerce expert at Omnisend. “Clear communication about why prices are rising, whether it's better products, higher wages or more expensive materials, goes much further than simply asking shoppers to pay more. Transparency has become part of the value consumers expect from brands.”

On behalf of Omnisend, Cint surveyed 1,075 U.S. consumers in June.