Updated: Sep 14
According to Kasi’s Index of Consumer Sentiment, Tunisia has experienced negative consumer sentiment over the last 3 quarters. The sentiment reached its peak in August 2022, mounting to 19 points, while its lowest point of -43 points was observed in May 2023. This consistent negative trend is linked to declining indices in the country’s economic conditions.
In March 2023, when asked about the anticipated trajectory of their country's general economic situation over the next 6 months, 50% of respondents foresaw it remaining stable, while only 13% believed in a potential improvement. Conversely, 36% of respondents predicted a decline.
Among individuals with lower incomes, a substantial 53% hold pessimistic views, envisioning a decline in the country's economic circumstances. In contrast, this sentiment is less pronounced within the middle-income bracket (35%), and even less prevalent among those with higher incomes (26%). Intriguingly, when exploring generational patterns, 38% of Generation Z and 37% of Millennials anticipate a worsening of economic conditions.
Consumers are more cost sensitive than ever.
Amidst inflationary pressures, consumers across different segments have implemented various strategies to cope with rising costs. The primary action taken by respondents was changing their purchasing habits, which ranked first overall. Utilizing community services and changing their lifestyle to reduce costs ranked second and third, respectively, showing a widespread recognition of the need to adapt to inflation.
Additionally, there is a discernible trend among males, Millennials, and Gen Z, who tend to prioritize altering their purchasing patterns and opting for more economical choices. Conversely, females and the Gen X generation display a more pronounced inclination towards making use of community services. Another strategy that gained traction within the Gen X demographic was the postponement of non-essential expenditures. This divergence likely mirrors distinct financial priorities and behaviours.
To remain relevant in the evolving market, businesses need to adapt to the ever-changing consumer patterns.
For businesses, there is an opportunity to attract budget-conscious consumers who prioritize affordability and seek cost-effective options. Given that most respondents are embracing shifts in purchasing habits and considering more cost-effective alternatives, businesses may need to adjust their product offerings, pricing strategies, or marketing approaches to accommodate these changes.
The prominence of community services as a response to inflation suggests that businesses engaged in providing such services might experience increased demand. Collaborations or partnerships with community service providers could open new opportunities for businesses. Understanding generational differences in coping mechanisms is essential. Businesses may need to tailor their strategies to appeal to different age groups, considering factors such as communication channels and value propositions that resonate with each generation.
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