Qualtrics, the leader in customer experience and creator of the experience management category, today launched research revealing how the COVID-19 pandemic is impacting consumer spending habits in the Philippines.
With more than half of respondents worried about their financial situation (52%), 63% agreed they have consciously bought cheaper brands during the pandemic. A similar amount (59%) said they are more likely to buy items on promotion, while 54% have bought different brands due to availability.
Over the next six months, people in the Philippines expect to spend more on food items, healthcare, and utility bills. Two-thirds (64%) of respondents to the study said they will spend more on fresh food, followed by healthcare (54%), cleaning products (50%), and utility bills and services (42%).
“While we know consumers will always value cost, quality, and convenience, findings from the Qualtrics study highlight the major extent to which people are actively seeking out alternatives. In fact, half of respondents said they have tried at least one different brand since the pandemic began,” said Lisa Khatri, Research & Brand Experience Lead for Qualtrics in APJ.
“The levels at which consumers are willing to try different brands right now is a huge opportunity for businesses to grow market share and increase loyalty among existing customers – across all industries. Using Qualtrics, organisations can develop a constant pulse of consumer behaviours, preferences, and attitudes. This provides them with insights to optimise and personalise their go-to-market strategies for current market needs,” added Khatri.
Banking and Finance
The Qualtrics study revealed the availability and ease-of-use of digital services is having an increasing impact on consumers in the banking industry.
A quarter of respondents (24%) said they want to be able to conduct their banking online all of the time, with another 49% wanting to use these services most of the time. Alongside increased usage, the study revealed the quality of digital platforms is having a greater impact on consumer trust in financial services.
Despite the preference and shift to digital platforms in financial services, only 60% said they felt online banking is extremely safe.
Cost is the main factor influencing consumer spend on telecommunications.
While the majority of consumers agreed they will likely stay with their current provider for the next six months (across pre- and post-paid), 62% would consider switching providers offering better prices or offers. Other factors influencing consumer loyalty in telco are better product quality and features (60%), customer service (47%), billing issues (41%), and malfunctioning services(39%).
While travel has decreased as a result of the pandemic, businesses looking to draw customers back are advised to focus on hygiene, security, and cost. People in the Philippines listed cleanliness and hygiene (66%), safety and security (65%), and price (48%) as the top factors impacting their choice.
*Qualtrics surveyed 328 people in the Philippines (aged 18-65) in early September 2020.