By Joel Leong, Co-Founder of ShopBack Group

Nearly 70% of consumers now compare prices before every major purchase. Economic forces don’t exist in a vacuum, they ripple outward, changing how people live, shop, and plan for the future. Over the past several years, consumers have navigated a steady stream of pressures: a global pandemic, supply chain breakdowns, record-high inflation, and waves of tariffs that directly impact the cost of imported goods. The result is a profound shift in consumer behavior, one that is less about momentary adjustments and more about long-term changes in spending psychology.

Inflation and the Everyday Budget

Inflation has made the weekly grocery trip or gas station stop a sobering reminder of rising costs. For many households, staples such as food, housing, and transportation now take up a greater portion of the budget. This leaves less discretionary income for dining out, travel, or entertainment. What’s particularly notable is the level of trade-offs consumers are willing to make. Families are opting for store brands over premium labels, stretching the time between clothing purchases, or postponing big-ticket buys like appliances or electronics.

This shift is not just about survival, it’s also about mindset. Even higher-income households, which in previous cycles were somewhat insulated from inflationary pressures, are becoming more cautious. They may still spend, but they’re doing so with more scrutiny. Price sensitivity is no longer confined to one income bracket; it’s become mainstream.

The Tariff Effect

Layered on top of inflation are tariffs, essentially hidden taxes on imports that consumers feel directly at the register. Whether its tariffs on steel, electronics, or consumer goods, these policies raise costs in ways that are often less visible but deeply impactful. For retailers, tariffs can force difficult decisions: absorb the costs and shrink margins, or pass them on to customers and risk losing loyalty.

The consumer response has been pragmatic. Many are turning toward domestically produced products, smaller brands, or secondhand markets. Others are willing to delay purchases in hopes of policy changes or price adjustments. In either case, tariffs accelerate a broader trend: consumers are more strategic about how and when they spend.

From Convenience to Consciousness

One of the most telling shifts is how shoppers approach decision-making. Where convenience once dominated, consciousness now plays a larger role. People are researching more before making a purchase, comparing prices across multiple platforms, and questioning whether they really need the product in the first place.

This has also fueled the rise of communities and platforms that help people navigate uncertainty. Online forums share strategies on stretching dollars, resale apps thrive as consumers buy and sell gently used goods, and loyalty programs gain new importance as buyers seek tangible rewards for their spending. The “buy now, think later” era has been replaced by a slower, more intentional cycle.

Implications for Businesses

For businesses, these shifts carry serious implications. Loyalty can no longer be taken for granted, it must be earned repeatedly through value, transparency, and adaptability. Companies that assume brand recognition alone will keep customers engaged may find themselves surprised as buyers move to competitors offering more practical benefits.

Clear communication is critical. Consumers want to understand why prices are rising, and they value brands that acknowledge challenges honestly rather than obscuring them. Similarly, businesses that demonstrate flexibility, through creative promotions, accessible financing options, or expanded value-driven product lines,are better positioned to maintain trust.

The Rise of Value Alignment

Another dimension of consumer behavior today is the desire for values-based alignment. Economic uncertainty doesn’t erase this, it intensifies it. Shoppers are asking: if I have less to spend, where do I want my dollars to go? Brands that reflect consumer values, whether around sustainability, ethical sourcing, or community impact, may find themselves with an edge, even in price-sensitive markets.

At the same time, businesses must recognize that values cannot replace value. Mission-driven messaging will fall flat if pricing and quality don’t align with consumer expectations. The successful companies of this era will balance both: a strong values narrative backed by clear, tangible benefits.

A Dynamic Future

Perhaps the clearest lesson of the past few years is that consumer behavior is never static. Inflation and tariffs have accelerated changes that may linger long after prices stabilize. Caution, intentionality, and scrutiny are shaping a new kind of consumer, one that is harder to win over but more loyal once trust is established.

For businesses, this isn’t a reason to panic, it’s a call to adapt. Success will belong to those who embrace transparency, innovate around value, and respect the evolving priorities of the people they serve.

Inflation and tariffs may seem like abstract economic terms, but their impact is deeply personal. They influence what families eat, how they get to work, and which dreams they delay. At the same time, they offer a powerful reminder: consumer behavior is resilient, adaptive, and always evolving. In times of uncertainty, adaptability becomes the strongest currency, for businesses and households alike. As consumers become more deliberate, brands that empower smarter, more rewarding choices will define the next era of spending.

About author

In 2014, Joel and his fellow co-founders launched ShopBack, with a bold vision to change the way how advertisers market, and users shop. Since then, the platform has evolved into Asia-Pacific’s leading shopping, rewards, and payments platform, serving over 50 million shoppers across 13 markets and driving more than US$4 billion in annual sales for over 20,000 merchant partners, both online and in-store.

Joel’s passion for startups and ecommerce was first sparked during his time at National University of Singapore and Fudan University. He began his career at the Singapore Economic Development Board, before moving on to help accelerate growth at Asia’s leading online fashion destination ZALORA, where he served as Regional Head of Partnerships.

Recognized for his sharp thinking, supportive leadership, and relentless customer focus, Joel is a strong believer that every