The Issues Troubling Consumers, and Their Search for Answers

For a fifth year in a row, consumers worldwide are living in an era that can be closely described as very busy, oftentimes turbulent, and full of challenges. It is an unstable era. The events or developments of this era, explicitly or through their consequences, touch on multiple areas: health-oriented, economic, political, socio-cultural, and technological. Moreover, these aspects are inter-related and interact with each other. A recent study by research firm Streetbees reveals prominent issues that concern or trouble consumers into 2024, and the ways they try to find answers and tackle the challenges confronting them.

Streetbees is a ‘modern times’ research firm (founded in 2015), suited for the contemporary modes of communication, media channels and advanced technologies that get deeper into our lives, for businesses and consumers alike. Their specialisation is in conversational research, ascribing to the conversation-driven nature of their (app-based) interactions with consumers to learn from them about their views, perceptions, preferences, and behaviours, using natural language processing (NLP) capabilities. They refer to the consumers-informants in their research as “bees”. The firm manages a community of 4.5 million contributing members, but it is said to function in a more lively, dynamic and day-to-day manner than typical panels. A leading motto of Streetbees is combining human intelligence from consumers with artificial intelligence (AI) empowering the tools it uses in its research: from collecting data, through analysing the inputs, to reporting findings.

The current study reviewed here was conducted, in particular, with an enhanced research tool launched in 2023, SBX, for executing conversational surveys. It offers a different, less usual, approach for performing a survey interview in the style of a chat conversation. The interview in SBX may include close-ended and open-ended questions, but the interview (app-based) is constructed to feel less formal and more adaptive (i.e., the flow of questions and phrasing may be modified according to respondents’ answers).

Furthermore, the chat-interview is executed through the application of Large Language Models (LLM) AI-based technology for phrasing questions and interpreting respondents’ answers (LLM in research explained). Essentially, LLMs are at the foundation of the emerging and fast rising sub-field of generative AI (e.g., as used in the most familiar ChatGPT). Every stage in an SBX study is aided by AI: creating a conversation brief and guide (e.g., based on client’s objectives, topics of interest, research questions), conducting the conversational survey with consumers, analysing the responses, and generating a dashboard with the findings. Streetbees states that a study can be completed within 48 hours.

The survey study of Streetbees gives us a glimpse into trends, or themes, that characterise the attitudes and behaviours of consumers as they enter 2024. The findings and insights (invoked in cooperation with Essity) are presented in the whitepaper “The Past, The Present, and The Possible” (request to download). The study portrays what consumers think of issues and concerns on public agenda, and how they approach and handle the personal challenges that arise from them, affecting their personal lives. Conversations were held with 677 respondents — “bees” from the community of Streetbees — from four countries: US, Mexico, Germany, and India.

• The whitepaper does not specify the dates of the survey (except that it took 48 hours to complete); it seems likely that conversations took place during December 2023-January 2024. Information is missing also about the selection of the sample (e.g., is it a probability-based sample, convenience, or recruited by self-selection). It reports, however, that the sample is distributed equally between males and females, four generations (Boomers, X, Millennials {Y}, and Z — 25% of each), and the four countries of origin (25% from each country). Additionally, no indication is given if conversations took place in different languages (presumably English, Spanish and German), and how this was handled during conversation progression and analysis.

Participants were asked what were in their view the most talked topics (‘hot topics’) in 2023. This reflection of the Past from consumers’ viewpoint sets the background on which the arising trends are conceived and assessed. Two war conflicts came on top of the hot topics: the Russia-Ukraine conflict (57%) and the Israel-Hamas conflict (34%). The Russia-Ukraine war is on-going already for two years but it remains a strategic conflict with geo-political ramifications. The tensions in Europe are especially rising due to the perceived threat of what Putin might do next under the pressure from Western allies or NATO. The Israel-Hamas war is taking place in a small corner of the world, but it is very politically charged. People were probably under the strong impression at the time of the survey from the massacre onslaught by Hamas in the south-west of Israel and the forceful reprisal by Israel in the Gaza Strip. Yet, also in the scene of this conflict there is a risk of stronger repercussions if the conflict spirals out of control and spreads across the Middle East.

The next concerning issue on consumers’ minds is economic instability (32%). The instability is felt by consumers in different ways; it may be driven by supply shortages of various products, inflation, unemployment, and high interest rates. It should be added that the two war conflicts are particular drivers of trade difficulties and economic instability (e.g., shortages in food supplies from Russia and Ukraine, rising energy prices, disruption by the Houthis of marine transportation at Bab-al-Mandab strait near Yemen, at the gate to the Red Sea). Respondents attributed specific economic concerns to these war conflicts (e.g., “a huge effect on supplies & alliances between countries”, the Israel-Hamas war “significantly disrupted trade”, “tensions in Ukraine and Israel have affected supply lines”), and to geo-political conflicts more generally. Other aspects of economic instability raised by respondents included a rising cost of the “basic basket”, global warming and natural disasters as drivers, “de-dollarization of oil”, and “extreme inflation in the US”.

The next topics in-line on the list are global health concern, climate change urgency, and political polarisation (30%-35% each). Notably, the issue of AI and automation was lower on the list (7%, as one respondent considered “advancements by OpenAI”), and social media fatigue even less so (~5%).

Participants were further asked about their personal priorities in 2023. The leading areas of focus were health and wellness (35%), likely accentuated in the aftermath of the coronavirus pandemic; career development (32%), back on consumers’ minds after the pandemic; and financial stability (30%), which corresponds with the general economic instability consumers are subjected to. Personal growth is also a salient priority (reaching nearly 20%), which may be related to the second and third areas of focus. At the same time, leisure and travel did not escape consumers’ attention (8%).

The brands that stood out most to people in 2023 were Nike, Samsung and Apple. The reasons for being excited about the brands that stood out were mostly innovative technology (39%), quality and comfort of products (37%), and affordable prices (~19%). Fourth came “exciting product launches” (~17%). The factor of quality and comfort is salient. It expresses a growing concern of consumers about the decline in quality and durability of products. Amid concerns about economic stability, the authors suggest that consumers are also concerned about stability in the products and services they use, which relates to reliability. While reliability was not explicitly mentioned in the categories of reasons, it is a key facet associated with quality; reliability may also contribute to greater comfort in use. It is thereof proposed by the authors that reliability should not be underestimated particularly now, and ‘old reliables’ are equally important as innovation (i.e., what appears as “new and shiny”).

When we come to the Present, and in anticipation of the near future, consumers raise as their key areas of focus for 2024 financial security (56%), career advancement (41%), and nurturing personal relationships (33%). In face of heightened uncertainty in recent years, consumers are striving for greater stability in their lives, with special attention to closer family ties.

As indicated above, the topic of artificial intelligence (AI) and automation was low on consumers’ minds in 2023 (mentioned by only 7%). Although digital transformation, which entails increased automation in customer service, and advances in AI, generative AI in particular, were in business and media focus in the past three years, it is as if these developments did not reach consumers. The whitepaper’s authors suggest that “for the most part, consumers didn’t feel personally impacted by it“. It is hard to believe that consumers were not exposed to these technological changes, but it is possible that many are not quite cognizant of the role, scope and significance of the interventions of AI in activities they engage, for good and bad. Relatedly, it is noted that consumers hardly consider technology adoption a key focus for them in 2024 (~5%) — although consumers are impressed by innovation. Apparently, consumers prefer to think more frequently about their travel and leisure plans this year (~11% — see also ‘activities in 2024’ below).

The whitepaper identifies four trends that may influence and shape consumers’ lives in 2024 (they are named after popular songs). They reflect what seems Possible, or what could matter, this year.

Trend 01: “Where Is the Love?” — The key theme is recovery from uncertainty, and the instability it enforced on consumers’ personal lives, in 2023 (and before). The instability had an effect on their relations at home, at work, and with brands. Consumers have had to endure heat waves and natural disasters, political unrest, and rising crime rates. The aim for 2024 is hence to have a ‘fix’ (as much as possible) to this state-of-affairs — “consumers are looking for ways to reintroduce a sense of stability into their lives“. The solutions are sought in domains of financial security, career development, and personal relationships. They may be reinforced or complemented by pursuing educational goals (continued studies) and personal development, and perhaps considering long-aspired homeownership or relocation. A respondent said she was seeking harmony between family and work, which breeds confidence and security. Customer confidence, it is proposed, also needs to be increased in relations with brands by enhancing reliability and achieving a balance between innovation and quality & comfort — this should be the route for regaining “lacked love” between businesses or brands and customers.

Trend 02: “I Did It My Way” — The dominating spirit of this trend seems to be personal re-discovery. Consumers are looking for new paths to explore and follow, do what they feel right for them, and act against what may be the conventions or expectations in the social circles surrounding them. This trend manifests, according to Streetbees, in popularised concepts such as “soft life” and “lazy jobs” (circulated on TikTok), “quiet quitting” and “personal truth”. As we look at activities that consumers anticipate doing more in 2024, above all they want to go on travel and vacations (36%), amplifying their wishes for some time now to feel free and explore. Next show up health and fitness activities (nearly 30%), and technology upgrades (20%). Education, organic and natural foods, and beauty and personal care are additional engagements in planning. Although consumers remain interested in technology and innovation, succinctly we might say that travel ‘beats’ technology. The whitepaper’s authors posit that consumers nowadays are less attracted to physical possessions and assets, considering them “unwanted anchors” that tie them down. Instead, they seek more activities and experiences, as shown above, for expressing and enhancing themselves. Brands may do well by encouraging and supporting these tendencies.

Trend 03: “Just the Two of Us” — The theme emerging in this trend is ‘fandom’, which implies following and associating with one’s cultural heroes and role-models in more vigourous ways — “the adoption and normalisation of what would once be considered ‘extreme’ fan behaviours“. Especially the younger consumers look for more exceptional ways to express their interests, and sharing them with others (e.g., on TikTok). Forms of behaviour may include dressing up like favourite singers, covering their songs, and joining communities of like-minded individuals to connect with each other and with the pop culture. In the ‘era of fandom’, such behaviours would no longer be considered ‘extreme’. Brands may also join the ‘game’ in collaboration with fan bases (e.g., the revived culture of Barbie, following the movie and other initiatives). The authors further advocate audience synergies between culture brands.

• One awkward product of the third trend yet appears to be a crossover or fusion called ‘Barbenheimer’ between Barbie and Oppenheimer (following a cinema film on the life of Robert Oppenheimer, released concurrently with Barbie). It is hard to fathom what could be relevant or amusing in the linkage between the popular fashion doll Barbie and the atom scientist Oppenheimer who led the development of the nuclear bomb. Perhaps this trend endorses fun and escapism, but this ‘audience synergy’ is barely in good taste.

Trend 04: “Virtual Insanity” — The theme underlying this trend is innovations in technology, but in a critical tone. That is, “consumers feel like technology is happening to them rather than for them“, and to some extent may feel overwhelmed by accelerated innovation (e.g., note the pace at which new models of smartphones and other mobile gadgets are launched, recently empowered by additional AI capabilities). Consequently, consumers are seeking control of their relationship with technology. Companies in turn are expected to be considerate of this consumer sentiment of apprehension and go towards their end users (“be part of the solution”). Consumers are willing and intendent to invest in 2024 in technology upgrades of products they own (e.g., personal computers, smartphones and other gadgets), after holding back from ‘refreshing’ them in 2022-2023. However, they want to see what these consumer tech products can do better for them. Therefore, businesses are advised to streamline and finetune their brand or customer experiences, whereby adjusting the brand and technology to their customers, rather than waiting for consumers to adjust to them.

When asked specifically about technology, three of the digital trends which excite consumers are AI-related: the overall ‘leading’ technology by excitement is generative AI (29%), followed by AI assistants (~11%) and AI-generated art / images (~7%). Social media trends (12%) lag behind generative AI. Yet, it is pointed out in the whitepaper that, from a consumer standpoint, with increasing excitement around AI comes increasing expectation: “People don’t care for ‘token innovations’ that show a brand is ‘with the times’ unless it actually benefits the customer“.

• Two noteworthy technologies in rise, virtual reality (VR) and augmented reality (AR) do not garner the excitement in this study as might have been expected: VR experiences (mentioned by ~5% as exciting) and AR in retail (~3%). Everyday use of blockchain hardly evokes excitement (~1% mention this). It should be noted that about a third of participants claim they find “no exciting trends”.

Finally, a methodological comment on the flow of conversations is warranted. An example of a portion of a conversation, shown in a screenshot, suggests that questions are preceded by repetition of respondent’s last answer. This is not the way people usually have a natural conversation, foremost people do not like the other person to repeat every time what they have just said. It may be intended to create a sense of follow-up and confirmation of what the respondent said as introduction to the next question. But it creates redundancy that can be annoying. It seems that respondents are able to scroll up to see their latest answers as a reminder. A question itself may include a relevant portion of the last answer integrated within. Improvement is desired to make the conversation seem more natural and adaptive.

A theme that threads through the four trends, surfaced in this interesting study, is the increased uncertainty in this era, and the answers and ways consumers seek to tackle instability in their lives. On the one hand. consumers confront the challenges upfront for making their lives better. On the other hand, consumers look for ways to ‘break-out’, get free and be amused. Also, consumers appreciate and do not refrain from advanced technologies but want them to be friendly and work better for them. The AI-enabled technology employed by Streetbees is a statement in itself on this topic. It is not yet clear to what extent some of the conditions antecedent to instability can be expected to recede this year. One can only hope that improved conditions in 2024 will enable consumers to succeed in their goals.