Alter Agents Study Finds Consumer Sentiment Shifting: Loyalty is in, Luxuries Are Out, and Financial Caution is Growing

2025 Consumer Sentiment Study shows Americans are cutting non-essential spending, turning to rewards programs, and preparing for a tougher economic year ahead

Alter Agents, a full-service strategic market research consultancy, released findings from its 2025 Consumer Sentiment Study, revealing how economic anxiety is reshaping consumer behavior in real time. As inflation, political division, and tariff concerns continue to dominate the national conversation, American shoppers are prioritizing savings, reducing non-essential purchases, and turning to loyalty programs for relief.

“Consumers are adjusting quickly and strategically to what they anticipate will be a tough year financially,” said Rebecca Brooks, CEO of Alter Agents. “Brands that reward loyalty, provide real value, and demonstrate they care about their customers will come out ahead.”

The study surveyed n=1,004 nationally representative U.S. adults, uncovering a clear pattern: consumers are actively changing how they spend, where they invest, and what they prioritize. The data signals a major shift in consumer sentiment – one that brands must understand and address.

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What’s in: Loyalty, savings, and consumer control
These loyalty-related actions make up three of the top five cost-saving strategies in 2025:

• 40% will increase their use of loyalty programs that offer discounts
• 36% will rely more on cashback programs
• 31% plan to use credit cards with purchase rewards

What’s out: Extras, dining out, and big-ticket spending

• 45% will cut unnecessary expenses
• 36% will reduce how often they dine out
• 25% will delay major purchases like cars or electronics

Consumers expect more economic pain

• 60% say prices for everyday items will rise
• 53% anticipate price hikes on major purchases
• 41% expect the stock market to decline

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Gender and generation makes a difference
Gen Z is more likely than Gen X to have made dramatic financial changes, including moving money out of banks, shifting investments, or making large purchases. And while 44% of Gen Z say they are knowledgeable about economics, only 56% correctly defined “tariffs” when asked versus 78% of Gen X. On the gender front, men are more likely to focus on taking advantage of today’s economy, as 47% of men rate their financial situation positively versus 31% of women.

Trust in institutions and government continues to decline
Compared to similar research in August 2024, fewer Americans trust their local (48% in 2024 to 38% today) or federal governments (38% down to 29%), and more feel the tone of national political discourse is inappropriate. While this new study focuses on economic behaviors, these broader social signals underline the urgency for brands to respond with authenticity and empathy.

“Our goal is to help brands make decisions rooted in real consumer insight,” said Brooks. “This study is a clear signal. Brands that want to thrive in this environment must be proactive, supportive, and strategic in how they connect with their customers.”