Half of customers accept need for higher prices

Catherine Douglas, CT Group’s Managing Director for Australia, has been quoted in The Australian Financial Review discussing our recent research on the cost of living.

Below is an extract from the article first published in the Australian Financial Review by Gus McCubbing on September 8, 2022.

“…new research from CT Group (formerly known as Crosby Textor) which found that while Australians have been understanding about companies putting up their prices over the past year, that support is soft.

CT’s survey, conducted in July, found just over half (53 per cent) of Australians supported companies passing on rising costs to maintain their profit margins.

External factors

Australians, according to the survey, see price increases as predominantly being driven by external factors, with 71 per cent viewing inflation as a factor of rising fuel and commodity costs.

Meanwhile, 67 per cent also blame supply chain challenges and 63 per cent connect inflation to the conflict in Ukraine.

“Australians have a strong sense that the war in Ukraine and other geo political factors have pushed up energy prices, leading them to conclude that consumer price rises are somewhat understandable,” CT Group’s research and campaigns managing director, Catherine Douglas, said.

“However, that support is very soft and ongoing price rises are likely to challenge that sentiment, particularly if companies are perceived as taking actions that are an unfair cost indulgence when households are doing it tough.

“Company reputation is going to be driven largely by hip pocket concerns in this environment, and extra care is warranted by executives and boards when progressing their planning.”

Click here to read the full article in the Australian Financial Review

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