The recent tariffs imposed by the Trump administration are expected to raise prices on many consumer products, creating ripple effects across global supply chains. As businesses face the challenge of adjusting to these higher costs, one of the most pressing issues for marketers is how to manage consumer perception in light of rising prices.
Price increases, particularly those tied to external factors like tariffs, can lead to frustration and dissatisfaction among consumers. While many businesses may need to raise their prices, how they communicate these changes is critical to maintaining customer loyalty. With more price-conscious and informed consumers, managing expectations and protecting brand perception requires a thoughtful and strategic approach.
One of the most effective ways to manage consumer perception amid price increases is transparency. Customers appreciate when businesses are upfront about the reasons behind price hikes, especially when external factors like tariffs are involved, and helps to build trust. A recent 2025 study by Salsify found that 87% of shoppers will pay more for a product from a brand they trust.
Consumers are more likely to stay loyal to brands that are transparent about pricing changes and explain how those changes will benefit them in the long run. Whether it’s through an email, social media post, or a dedicated page on your website, it’s important to clearly communicate the factors driving up costs and offer context to your audience.
A proactive communication strategy through email, social media, or dedicated blog posts can go a long way in explaining the reasons behind price increases and demonstrating empathy for customer concerns.
If raising prices is unavoidable, businesses can soften the blow by offering value in other ways. Consumers are more likely to accept price increases if they perceive added value. Offering exclusive deals, discounts on future purchases, or bundled products can help mitigate the sting of price hikes. For example, a retailer might bundle a product with a free extended warranty or offer a loyalty program that rewards customers for continued purchases. These tactics can help preserve customer satisfaction even in the face of higher prices.
Loyalty programs ranked #2 in Statista's 2025 Consumer Trends report, with 61% of Americans reporting loyalty programs and rewards will influence their decision on where to shop.
Be wary of bundles or discounts that could bring down the perceived value of your product (known as the "presenter's paradox"). For high-end products and services, take a 'pair it with' approach, where complementary services/products are shown together.
Building a strong emotional connection with consumers can significantly reduce the negative impact of price increases. If a consumer feels loyal to a brand or connects with its values, they are more likely to accept price hikes.
Recent studies found that 70% of people are more likely to buy from brands that align with their values. Highlighting your brand’s CSR (Corporate Social Responsibility) - commitment to sustainability, ethical sourcing, or community engagement - can help foster this emotional bond and provide justification for price increases.
Brands that can connect with their customers on a deeper level through shared values are more likely to retain their loyalty, even when prices rise.
Community engagement is the low-hanging fruit of CSR. Highlight local partners in your marketing, giving them credit for contributions to your product. Engage with your customers on social media, thanking them for shout-outs.
In times of economic uncertainty, consumer sentiment can shift rapidly. Keeping a close eye on social media platforms, customer reviews, and customer support inquiries can provide valuable insights into how your customers are reacting to price hikes. Tools like social listening and sentiment analysis can help brands monitor and respond to negative feedback in real time.
Link a satisfaction survey to your transactional emails, and consider negative feedback thoughtfully. Don't be afraid to (politely) respond to negative reviews with solutions or requests for more details.
