The imprint of inflation and the energy crisis on the behavior of Greek consumers is deep: a significant part of the buyers expect structured interventions from the state.

As Georgios Baltas, Professor of Marketing and Communications at Athens University of Economics and Director of Postgraduate Studies, explains to APE-MPE, the data from the 18th annual survey conducted at the OPA Marketing Research Lab via telephone survey. on a sample of 1507 households, to show that the combination of rising energy costs and revaluation of consumer goods affects, on the one hand, consumer behavior itself, and, on the other hand, consumers’ expectations regarding their financial situation. “From an economic point of view, the estimates for 2022 and consumer expectations for 2023 are not positive, and deterioration and stagnation prevail in the responses of the respondents,” notes Mr. Baltas.

As for the average monthly spending in supermarkets, he notes that they have increased significantly and are estimated at 324 euros from 255 euros last year, which is due to the revaluation of standard consumer goods, which are much higher than the general consumer price index. “The increase in spending is due to higher prices and is not caused by a real increase in consumption,” emphasizes the OPA professor and adds: “These conclusions are reasonable, since their accuracy affects Greek society, which has already suffered from the consequences of the great crisis, fiscal adjustment programs and, of course, , pandemics. This partly explains the persistence of pessimistic consumer forecasts, despite the mobility in the investment sector and positive signals coming from a number of sectors of the economy.”

Of particular interest are questions, included for the first time in the study, about how consumers perceive inflation and the cost of energy and what their attitude to the consumer basket is.

In particular, 9 out of 10 consumers say they are experiencing difficulties due to rising prices for basic goods and energy. A high percentage of consumers are cutting back on consumption due to higher prices for a number of basic commodities. The data also shows that consumers, in order to manage the inflationary environment, are mainly resorting to cheaper and smaller purchases, postponing purchases at a significant cost. The vast majority of respondents say that the cost of electricity is their biggest energy problem. This conclusion can be easily explained, according to Mr. Balt, a) by the widespread use of electricity by everyone, b) by a large share of the cost of electricity in the family budget, c) by a really large increase in prices and d) by the belief that expensive electricity burdens not only consumers, but also has implications for the economy, business and everyday life. With regard to the consumer basket, almost every second consumer believes that the consumer basket is a useful measure and states that they buy goods that are included in this consumer basket. Therefore, consumers are divided on the question of the basket. Of course, its acceptance by half of the respondents indicates that this is an important measure and its implementation is of interest to a very large part of buyers. “It is helpful to remember that the household basket is primarily aimed at more vulnerable consumers, but in the end it seems that its acceptance and use is much wider,” notes the OPA professor.

The optimistic element in the survey data is the very strong consumer movement in favor of “Made in Greece” products regarding the relationship of solidarity and self-preservation that develops in Greek society. As Mr. Baltas emphasizes, “the preference for products of Greek origin and manufacture can contribute to the restructuring of production, the survival of small and medium-sized enterprises, the improvement of the trade balance and the reduction of unemployment. It should be noted that the negative climate of that period did not affect consumer preferences for Greek products. This shows that Greek production is not a more expensive purchase option, and preferences for it have remarkably held steady over time.”

“household basket”

The significant impact that the “household basket” has found in the daily lives of consumers was recently confirmed by the Minister of Development and Investment, Adonis Georgiadis, when he said that “whoever buys from the “household basket” earns money. As he even pointed out, “64% of consumers buy and search for items in their ‘home basket’. The “household basket” has gained a very large share of the everyday market in supermarkets, because whoever buys from the “basket” earns money. The basket has kept many industries from making new promotions for fear of losing customers and has encouraged them to make many new offerings. If you add the shopping cart and the shopping card together, the monthly shopping benefit will be more than 100 euros.”

For his part, Deputy Development and Investment Minister Nikos Papathanasis recently stated that “the prices in the basket remain stable for about three and a half months, and a family of four buying from the basket can save 80 euros per month.” , and a trading card that gives another 52 euros. And will cover about 85% of the population. So, we have about 132 euros. This is a mound.

Financial problems and anti-crisis management in the focus of the consumer

Consumer interest, as the study suggests, remains focused on financial issues and managing successive crises (permacrises) in a way that affects age groups, not just stratification. In particular, consumers were assessed by the change in their financial situation in 2022. As it turned out, 53% reported that it got worse, 40% – that it remained the same, 7% – that it got better. As for 2023, 39% believe it will be worse, 45% the same, and 16% better. Also, 37% will make fewer purchases this year, 9% more and 5% more than last year. Notably, 89.7% say they are experiencing financial hardship due to increased supermarket prices, and 96.2% say they are experiencing financial hardship due to rising energy costs. At the same time, due to inflationary pressures, consumers are turning to cheaper and smaller purchases, canceling purchases and limiting themselves to essentials. When asked what is the biggest problem in the energy sector, most people chose the cost of electricity (61.69%). In second place by a wide margin is the cost of motor fuel (17.56%). As for the consumer basket, consumers are divided: 52.2% consider it a useful measure, and 46.5% buy products contained in the consumer basket.

But how are consumer shopping habits formed in supermarkets? Regarding the number of supermarkets they use, only 30.3% of the respondents stated that they regularly shop at the supermarket. The percentage of loyal shoppers has dropped significantly from 47.9% last year as consumers are more actively looking for better prices in more stores. Nearly 70% of consumers shop in more than one supermarket. 93.1% of respondents use up to 3 different stores for their purchases. The frequency of purchases in chain supermarkets averaged 6.3 times per month, slightly lower than 7 times per month last year. Most consumers say they shop 4 times a month. 84.3% of respondents make purchases up to 8 times a month.

The amount spent each time they shop was also measured. Average spending in a supermarket is estimated at 61.2 euros compared to 47.5 euros last year. The increase in spending per supermarket visit reflects higher food prices due to inflation and, to a lesser extent, a decrease in the monthly frequency of visits. Average monthly spending is estimated at €324, up from €255 last year, with 82.3% of consumers spending up to €400 per month. 91.7% of respondents state that they have decided in advance what to buy before going to a physical or online supermarket. A year ago, this figure was 83.4%. It follows that increased efforts are being made to eliminate impulse buying and plan purchase decisions in order to better manage disposable income in an inflationary environment. When it comes to the brand of each product, only 38.7% (40.8% last year) of respondents seem predetermined. 61.3% say they choose a brand when buying by comparing available options.

As for the choice of products in supermarkets, the main criteria are quality, price, availability of offers and Greek origin. In fact, 79% of respondents answered that when they find Greek products in a supermarket, they prefer them to imported ones. It is noted that 69.5% of respondents believe that consumers are switching to Greek-made products, 90.8% say they want Greek products to be written on the packaging, 61.3% believe that Greek products have the best safety and quality, 88.5% believe that the preference for Greek products supports the production in the country, and 76.2% believe that the preference for Greek products helps to reduce unemployment.

Source: RES-IPE