As tariffs ripple through the U.S. economy, DTC leaders must recalibrate. A new consumer survey reveals a seismic shift in shopping behaviors—offering both risk and opportunity.

At The DEN, we believe insights are only as powerful as the strategies they inspire. Our latest intelligence—drawn from a Wunderkind-powered survey of 326 U.S. consumers—sheds light on how tariff-related price increases are redefining consumer decision-making. Spanning age, gender, and category behaviors, this report is a strategic playbook for leaders ready to engage a more value-driven shopper.

Awareness Is High—And It’s Influencing Behavior

A remarkable 81% of consumers are aware of current tariffs, with 52% “very aware.” Notably, awareness skews by gender—62% of men vs. 43% of women—signaling an opportunity for brands to tailor tariff communications by demographic.

For DTC executives, this level of consciousness means silence isn’t neutral—it’s risky. Pricing changes, if unexplained, can erode trust. Instead, messaging must be transparent, informative, and segmented to meet consumers where they are.

Brand Loyalty Is on Pause—Value Now Wins

Tariffs are accelerating a broader consumer trend: the decline of unconditional brand loyalty. Three-quarters of respondents say they’re likely to try new brands for better pricing. Among Millennials (42%) and Gen Z (37%), that likelihood jumps. Even women (37%) and men (34%) report high openness to switching.

What’s more, 66% would switch brands for a discount of just 20% or less—and 11–20% is the magic range for many. Price isn’t just a factor—it’s a trigger. Marketers must recognize that even small savings can unlock major share shifts.

High-Stakes Moments Require Low-Friction Offers

Nearly 90% of consumers say price hikes from their favorite brands would alter their purchase behavior. The initial reaction? Seek similar alternatives (25%) or wait for sales (23%). Others reduce frequency (17%) or exit entirely (14%).

The takeaway: even the most beloved brands are vulnerable. To retain customers, executives should deploy loyalty programs, explain pricing changes clearly, and provide exclusive incentives to smooth over sticker shock.

Discounts Matter, but So Does Trust

Exclusive rewards (20%) and loyalty perks are the top reason consumers stay with a brand post-price hike—especially Gen X (34%). Meanwhile, Gen Z (22%) prioritizes product quality or guarantees.

A surprising insight: 8% say clear explanations for price increases would encourage them to stay. That’s a trust-building lever few brands are pulling.

Consumer Austerity Is the New Normal

This isn’t a blip. 36% of shoppers expect tariffs to impact their behavior through the end of 2025 or beyond. Boomers (49%) are the most pessimistic, but even Gen Z (23%) is adjusting.

Grocery purchases are shifting to store brands (40%), stockpiling (33%), and reduced frequency (27%). In high-ticket categories, 43% will wait for sales, and 33% will switch to cheaper alternatives.

Even in fashion—traditionally emotional and aspirational—44% now wait for promotions, and 29% shop second-hand. Frugality is fashionable, and timing is everything.

Summer Snapshot: Essentials Over Experiences

With warmer months ahead, 41% of shoppers say they’ll prioritize essentials, and 26% plan to delay purchases until major summer sales. Gen Z is leading the charge on deal-timing, with 37% targeting holiday sales windows.
For DTC brands, this is a call to refine seasonal promotional calendars and reposition product launches around value narratives and budget-savvy timing.

The Executive Takeaway

Tariffs have tipped the scale. Loyalty is flexible, price is powerful, and transparency is a brand asset.

In this climate, DTC leaders must:

• Segment by demographic and behavior—your Gen Z buyer isn’t your Gen X buyer.
• Invest in first-purchase offers and loyalty infrastructure—retention now starts at acquisition.
• Own your pricing story—consumers expect honesty when dollars stretch thin.
• Rethink promotions as long-term value signals, not short-term margin hits.
  
  As one shopper behavior fades, another takes its place. At The DEN, we see this as a moment of reinvention. Brands that respond with speed, relevance, and empathy will not only weather the tariff era—they’ll win it.