Price matters, but modern consumers care more about value. They are not just looking for deals anymore, but also meaning, speed, and alignment with their needs and goals. This blog unpacks why pricing strategies need a reset and how brands and CX leaders can crack the code to win today’s shoppers.
The new rules of pricing
The age-old pricing mantra—“the higher the price, the less likely the customer is to buy”—no longer reflects how consumers make purchasing decisions. Affordability still matters. But for the modern shopper, especially Gen Zs and millennials, it is no longer the only factor. The real game-changer is value for money, i.e., how the customer perceives the overall worth of a product relative to their expectations and values.
A 2024 PwC study found that consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, and 41% noted that a celebrity or influencer has influenced their decision to make a purchase. These shifts are redefining how brands must think about their pricing strategy.
Let’s look at what has changed and what consumer-facing businesses should keep in mind as they rethink how they price and position their products.
Gen Zs and millennials are intentional spenders, not impulsive buyers
Today’s buyers, particularly millennials and Gen Zs, are deeply intentional with their spending. They are not just buying a product. They are buying into stories, belief systems, and brand identities. Yes, they care about budgets. But they are also willing to save up for products that resonate with them. That could mean a luxury handbag, a rare sneaker drop, or a niche collectible, such as a Labubu doll. These aren’t necessarily affordable, but they are seen as “worth it” because of their uniqueness or perceived cultural value.
This shift reveals something important: Affordability is no longer enough to drive conversions. Consumers are now asking themselves:
- Does this brand reflect my values and lifestyle?
- Is the product made ethically and sustainably?
- Will it last, or is it just a temporary, quick fix?
For brands, this means that product value must extend beyond functionality; it must also connect emotionally.
Quick commerce is redefining convenience, and customers are paying for it
One of the most evident signs that value is overtaking price is the rapid growth of Q-commerce. Platforms like Blinkit and Zepto are reshaping customer expectations by delivering groceries and essentials in under 20 minutes. While these services often come with higher delivery or platform fees, customers don’t mind. In fact, they prefer it.
Why? Because what they are really paying for is convenience, speed, and the ability to act on impulse or urgency. According to Statista, 44% of customers are only willing to wait up to two days for their order to arrive. A 2023 report by PwC also found that 41% of online shoppers are willing to pay extra for same-day delivery, while 24% are open to paying more for delivery within 1–2 hours.
For pricing leaders, this means time is now a premium product feature. Fast fulfillment has become a key part of the value proposition, influencing pricing tolerance.
Social values and sustainability are the emerging price catalysts
Modern consumers are making decisions with their values. They are looking for proof that brands care about more than just profits. Consider the following figures from a 2025 study by Deloitte:
- 65% of Gen Zs and 63% of millennials say that they are willing to pay more for environmentally sustainable products or services.
- 26% of Gen Zs and 25% of millennials have conducted research on a company’s environmental impact or policies before buying a product or service from them.
- 26% of Gen Zs and 27% of millennials have upgraded their homes with sustainable features, and 45% of Gen Zs and 44% of millennials plan to do so in the future.
As a result, even fast fashion brands like H&M and Zara have launched eco-conscious collections, often co-branded with celebrities or influencers to lend authenticity and reach. Today, a “good deal” isn’t just about getting something cheaper; it is about feeling good about the purchase. Ethical sourcing, responsible production, and environmental alignment now factor into how much a customer is willing to pay.
How customer-centric brands are creating value beyond price
While the shift from price to value is universal, it plays out differently across high-growth consumer sectors. Brands in CPG, e-commerce, beauty, and wellness are responding (and winning) by aligning with evolving expectations. Let’s zoom in and see how this shift is playing out in real time.
CPG: Value that is personal, beyond just what’s in the box
In the world of packaged goods, value is no longer defined by quantity or discounts. Shoppers are actively choosing products that reflect their health goals, ethical concerns, or lifestyle aesthetics, whether it is gut-friendly soda, sulfate-free shampoo, or biodegradable packaging.
The packaging on the shelf isn’t just functional anymore but a signal of alignment. Think Oatly or Method. These aren’t just functional buys, but value-based purchases. The product story (how it is made, what’s in it, and what it stands for) is what makes it worth paying more.
Beauty and wellness: Trust and transparency are the new luxury
In personal care and wellness, value is not just tied to prestige but also to purpose. Today’s shoppers prioritize ingredient clarity, ethical testing, and brand authenticity over flashy labels. Brands like The Ordinary and Glossier succeed because they are clear, relatable, purposeful, and authentic.
From magnesium sprays to adaptogenic drinks and meditation apps, consumers are spending more on products that signal emotional alignment. Wellness has now become a priority, especially for Gen Z. Hence, emotional value here can outweigh functional benefit. That $40 candle? It is not just wax; it is a moment of self-care. What’s being sold isn’t just the product, but the promise of well-being and how it fits into a better, more intentional life.
E-commerce: Speed, story, and the rising convenience culture
Consumers are paying premiums for more than just speed. Fast delivery is now table-stakes, i.e., an essential requirement, but it is also the blend of convenience, credibility, and cultural relevance that drives loyalty. A $6 protein bar may feel like a stretch until you factor in the brand’s clean label, plastic-free packaging, and carbon-neutral delivery.
Platforms like Zepto and Blinkit are fulfilling such needs by reshaping what “worth it” looks like in the moment.
These industries are thriving not because they are the cheapest, but because they have reframed what “value” means in the minds of modern consumers. Time, trust, and brand story now carry just as much weight as the product itself.
Your cheat sheet to consumer behavior
If your pricing strategy is still built around just competitor benchmarking or cost-plus models, it is time to reassess and refine. Today’s customers are not simply price-sensitive; they are value-conscious, and their value lens is broader than ever. Let’s explore three strategic actions that you must consider.
Elevate perceived value
Don’t just list features. Communicate usability, emotional resonance, narrative, design story, and long-term impact. Modern customers evaluate products through both practical utility and the brand’s ability to resonate with their lifestyle or identity. If you have ethical practices, sustainability efforts, or inclusive policies, make them visible and consistent across touchpoints.
Justify the premium
When pricing above average, make sure customers understand why. Be transparent about what sets your product apart—be it quality, design, sustainability, or ethical sourcing. Clear justification and rationale build trust, especially with younger buyers, and also strengthen brand credibility.
Design for expectations
Whether it is fast delivery, product exclusivity, or seamless returns, tailor your value proposition to what your audience truly prioritizes and optimize your offering around what your customer segment values most. Convenience and speed can matter just as much as quality.
In short, reshape your pricing strategy according to what the customer values, not just what the competition charges.
Where pricing meets purpose
When consumers make purchases today, they are making statements. They are choosing brands that reflect their beliefs, save them time, and offer more than just functionality.
Just because they can afford a product doesn’t mean they will buy it. And just because they can’t afford it doesn’t mean they won’t. If a product is compelling enough to spark their interest and hold it, they are willing to save for it and buy it when it feels worth it. Modern consumers are comfortable paying a little extra for comfort, convenience, or even quite a bit more for a brand they believe in.
A brand of instant noodles, for instance, is no longer just competing with other noodles. It is competing with anything available for a quick snack or meal through a 10-minute delivery app.
For product and pricing leaders, the challenge is not just to drive conversions but to align deeply with evolving customer expectations. Because in this new era of intentional spending, value for money isn’t about the lowest price. It is about the strongest connection.
