Despite tighter budgets and the threat of tariffs impacting the cost of goods, 55% of Australians still prioritise experiences over material possessions.
The second annual Scout consumer study from full-service media agency Mediahub, “The Paradox of Purchase Decisions,” surveyed 1,000 Australians and uncovered a complex consumer landscape. The report revealed that dining out and travel top the spending wish lists for 30% of Aussies, demonstrating the enduring power of the experience economy.
While cost-of-living pressures remain a primary concern for 50% of respondents, this is down by 13% year-on-year, while overall feelings of contentment have risen by 9% year-on-year. Anxiety levels have also decreased by 10%, with 21% reporting anxiety in 2025 compared to 31% in 2024. The report suggests a growing resilience and adaptation to ongoing financial challenges.
“Global issues like tariffs and geopolitical tensions have put consumer spending under scrutiny,” says Linda Fagerlund, Chief Strategy Officer at Mediahub.
“Amidst the negativity, consumers are shifting their mindset. Australians are tightening their belts, but they’re also reframing what brings happiness. Contentment now centres on connection, quality time, and feeling in control. This is the paradox of purchase decisions – brands need to speak to both the head and the heart.”
Linda Fagerlund: ‘Global issues like tariffs and geopolitical tensions have put consumer spending under scrutiny.’
Paradoxes shaping consumer behaviour
The Mediahub study also highlights several key paradoxes shaping consumer behaviour, including brand reputation growth as price sensitivity weakens. The survey revealed that consumers have delayed purchasing big-ticket items have doubled year-on-year but that smaller, everyday trade-offs are now habitual behaviour based on price. Larger purchase decisions demand a stronger emotional connection to the brand (+15% more than everyday spending) and premium or high involvement brands need to emphasise long-term value and aspirational narratives.
The report also highlighted a significant gender gap when making purchases – men feeling more optimistic and women reporting higher anxiety levels. The feeling underscores the mental load carried by women and the opportunity for brands to offer empathetic, practical support and build community.
Despite financial constraints and 36% saying they are actively making trade-offs on travel and holidays, over half of Australians still say they prioritise experiences.
“These paradoxes are crucial for brands seeking to connect with customers,” added Fagerlund. “Despite economic pressures, consumers are seeking a balance – practicality combined with a renewed desire for meaningful experiences.”