Canadian Consumers Willing to Pay More for Local Products, BDC Survey Finds
A Business Development Bank of Canada survey indicates that while price is the primary driver for 66% of Canadian consumers, over half are willing to pay a premium for Canadian-made goods.
Despite ongoing inflation influencing consumer spending, a new survey by the Business Development Bank of Canada (BDC) reveals that a majority of Canadian consumers are willing to pay more for products originating from Canada. The study, which surveyed nearly 1,500 consumers, highlights that while price remains the dominant factor in purchasing decisions, perceived value and country of origin also significantly influence choices.
The findings show that 66% of Canadians base most of their buying decisions primarily on price. However, more than half (57%) stated they are willing to pay more for Canadian-made goods. Despite this willingness, identifying Canadian products poses a challenge, with 37% finding it difficult due to unclear labelling and inconsistencies.
Zelina Frigan, a Senior Analyst at BDC Research, commented that businesses can justify higher prices by clearly communicating their product's durability, craftsmanship, or performance to even cost-conscious customers. She also noted that consumers actively compare prices, making it beneficial for companies to help customers understand product comparisons, for example, by explaining differences in quality or service.
The research also underscores the importance of online presence, with 32% of Canadians making most of their purchases online. Businesses are advised to enhance their online presence with detailed information and customer reviews. Furthermore, it is crucial to make Canadian origin easily visible on packaging, websites, and marketing materials, while ensuring authenticity to avoid "maple washing," a practice of exploiting patriotic sentiment without genuine backing.