A recent survey conducted by NIQ revealed that more than half of respondents experienced an increase in their insurance premiums. Alarmingly, over 80% expect these premiums to continue rising in the coming months.  

In response, consumers are taking various measures to manage escalating costs, with over 70% used loyalty rewards or no claims discounts to lower costs. This adaptability comes as no surprise, given the global economic challenges that continue to shape spending habits.  

Consumers Seek Financial Solutions Amid Economic Pressures 

NIQ’s Consumer Outlook report highlights that 76% of Middle Eastern and African consumers are actively pursuing additional income streams beyond their primary jobs. While inflation shows signs of deceleration, its lingering presence continues to tighten wallets. However, there is a silver lining: consumers are spending more than they did in previous years—but with deliberate intent. 

Across the region, 70% of consumers expressed willingness to pay a premium for products that offer durability and longevity. This sentiment is echoed among auto shoppers in the UAE, where 76% are interested in securing multi-year fixed-rate insurance policies to safeguard against future premium hikes. 

Rethinking Value in Consumer Decision-Making 

Traditional industry practices often assume a straightforward approach to influencing purchase behavior—through price cuts, trade promotions, increased advertising, or premiumization. While these strategies can be effective, they are insufficient when applied in isolation, as they leave room for competitors to claim market share. 

The concept of value is far more nuanced; it is relative and shaped by subconscious signals, memories, associations, and biases. Value can vary depending on the type of shopping trip (planned versus impulse), the availability of alternatives, timing, and location. Businesses must consider both conscious and subconscious factors driving consumer decisions to anticipate their next moves and unlock additional spending potential. 

Bridging the Gap: Understanding Consumer Behavior 

There is no universal formula for influencing value perceptions. To navigate the complex web of contextual signals driving purchase decisions, businesses must adopt a data-driven approach to track, diagnose, and analyze consumer attitudes alongside actual purchase behavior. By bridging this “say-do gap,” companies can align their strategies with what consumers truly seek