With Confidence Slipping, How is Your Customer Redefining Value?
We know consumers are “trading down” across categories, shifting from premium to private-label goods, swapping fine dining for fast casual, and moving from discretionary splurges to more practical spending. But the latest data reveals something deeper: a redefinition of what “value” really means.
There are multiple signals that consumer confidence is falling (including University of Michigan’s Consumer Sentiment Index, which dropped nearly 6% for August) And when consumer confidence drops, people don’t just restrict spending: they reassess what “worth it” means.
Families are doing more than asking where to cut back. They are reconsidering what feels worthwhile, where they can accept “good enough,” and which small indulgences still earn a place in the budget.
Value is more than price
Trading down may start with price comparisons, but value runs deeper. Parents want affordable options that still bring joy to their children. Busy households look for solutions that save time in daily routines. Even under budget pressure, many consumers still carve out modest splurges that feel rewarding. The challenge for leaders is understanding where their own brand fits within this shifting definition of value.
Turning sentiment into strategy
“Value” is no longer a fixed idea; it is being redefined in real time. To keep pace, CMOs need more than topline analytics. They need to understand how customers actually weigh trade-offs, justify compromises, and decide what feels worth it. Qualitative approaches such as mobile ethnographies and remote shop-alongs provide that window, revealing:
Why one purchase feels worth the money while another does not
How compromises are explained and rationalized in the moment
Which attributes remain non-negotiable even under financial strain
This type of consumer research helps teams design pricing strategies, product tiers, packaging cues, and in-store experiences that match the customer’s lived definition of value.
By capturing how value is being redefined in 2025, leaders can move beyond cost-cutting and build strategies that truly resonate. In uncertain times, getting value right is what separates brands people rely on from those they leave behind.
