ECONOMY

Greeks get more price sensitive

greeks-get-more-price-sensitive

Since the arrival of Covid-19 Greeks have displayed increasing price sensitivity. This is due to the deteriorating economic situation and consumer pessimism stemming from numerous uncertainties regarding the course of the pandemic and the resilience of the economy.

This has meant that every 1% increase in the price of basic consumer goods entails a 2.5% decrease in the quantity sold, according to data by research company NielsenIQ, while more than half of consumers switch to substitute brands if the price of their preferred choice increases. Consequently suppliers and retailers who, before the pandemic, wanted to shift to personalized marketing are forced to return to mass marketing so as to preserve market share.

In 2020, as supermarkets took on more of the cost burden, promotions were limited, and this may persist. There have already been price hikes for basic consumer goods, and more are bound to follow as raw material and transport costs remain high.

Data also showed only 53% of consumers can cover their basic food and housing costs, while 74% are seriously concerned about their living costs and have changed their spending habits.