Just as companies and consumers
felt comfortable placing the
pandemic in the rearview mirror,
a new economic threat emerged.
After enduring declining
revenues, workforce shortages,
supply chain issues, and other
challenges brought about by COVID-19, reports of high
inflation and low unemployment
have given rise to fears of a
While CapTech’s third Consumer-Driven Innovation
Survey confirms that consumers are, in fact, wary
of an economic downturn, a common thread from
2020 and 2021 carries over to 2022: companies
ahead of the technological curve stand a better
chance of weathering the storm. Even when staring
down a potential recession, our study found that
74% of consumers are likely or somewhat likely to purchase from a company invested in innovation.
In addition, consumers are still motivated by a
company’s commitment to social and ethical
At the heart of these findings is the fact that brand
loyalty is as fragile as it’s ever been. From modern
to emerging to bleeding-edge tech, consumers are
paying attention, and preferences and opinions —
though always evolving — ultimately become
behaviors. While modern conveniences like smart
device payments and online chat have respectively
reached an adoption tipping point, newer tech like
augmented and virtual reality (AR and VR), along
with the Metaverse, still has its skeptics — but for
how much longer?
Throughout our three years of research, we continue
to hear a common refrain. To get ahead, companies
need to invest in innovation. It’s arguably more
important now, as the pandemic spurred innovation in several industries. In healthcare, telehealth services have gained significant steam.
In retail, online grocery markets only added to the
e-commerce craze. And for Fintech, contactless
payments aren’t going away anytime soon.
Though consumers might have recession fears, their emotions haven’t materialized into action yet: the most recent estimates released by the U.S. Department of Commerce’s Bureau of Economic
Analysis state that personal income, disposable
personal income, and, most importantly, personal
consumption expenditures (PCEs), have all increased.
Companies that hope to capitalize can find
encouragement in these industry examples and
personal consumption stats.