Literature review assignment (approx. 1000 words)
Name: Kristina Zarić
UČO: 533258
Changes in consumer behavior brought on by the Covid-19 pandemic
1. Introduction
The Covid-19 pandemic has impacted a significant number of individuals in various
ways. This paper will concentrate on alterations in consumer behavior. The activities and
choices that people make when using or buying things are referred to as consumer behavior.
The way a customer uses a product and whether or not they decide to buy it again in the
future are all examples of how they behave toward that product. Consumers' buying habits
have undergone substantial modifications, and as a result, companies that offer consumer
services must alter their business strategies to accommodate this shift (Vyas, 2022).
Numerous surveys were conducted worldwide, revealing several intriguing facts. Later in this
paper, I will present the discoveries.
2. Literature review
These days, consumers prioritize their basic necessities when making purchases, but they
do so more carefully, choosing local goods and demonstrating a stronger preference for digital
commerce (Wright, 2020). I would say that we are in some cases still living in pre-pandemic
life. More people are working from home (Boland, 2020).People are more careful now in
decision-making. Affordability is another factor that has become increasingly important. With
many individuals having lost their jobs, and thus a stable source of income, people have
begun to place greater emphasis on financial considerations.The COVID-19 crisis witnessed a
rise in the digital economy which brought a lot of advantages and also disadvantages (Gu,
2021). The prevalence of digital economy is also linked to the fact that more and more
individuals are opting to have food delivered to their homes rather than venturing out.
Purchasing consumer behaviors
The pandemic has caused consumers to exhibit specific purchasing behaviors, such
as panic buying, impulse buying, compulsive buying, and online shopping (Tao, 2022).
Negative emotions can be transmitted throughout society and result in increased anxiety and
depression (Tao, 2022). Panic buying of essential items and a decrease in purchasing
non-essential items are common behaviors in the initial stages of the pandemic (Tao, 2022).
The fear of supply chain disruptions also leads to impulse buying of health products. The
perceived pressure caused by the pandemic can lead to compulsive purchasing (Das, 2022).
Online shopping has become more popular, particularly for food, due to government isolation
policies, along with mobile devices like phones, have made it possible for people to purchase
with less constraint (Tao, 2022). Consumer behavior changes are multifaceted and
encompass various psychological and behavioral characteristics. The main findings of the
survey conducted by Wigand (2021) revealed that a majority of consumers, 56%, were
influenced by environmental concerns when making purchasing decisions, and 67% of them
were willing to pay more for eco-friendly products. Additionally, 81% of the respondents
preferred shopping closer to home and supporting local businesses (Wigand, 2021). It is
evident that many stores are now offering eco-friendly products. Companies are adapting their
pricing strategies for environmentally-friendly products to make them more accessible to
consumers as they recognize the benefits not only for the environment but also for our health
(Zhang, 2022).
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Affordability
Market dynamics and customer behavior have undergone a dramatic change as a
result of the COVID-19 outbreak. Food products are experiencing an increase in demand as a
result of people spending less money on non-essential items like clothing, shoes, makeup,
jewelry, games, and technology (Tao, 2022). This is also the case of reduced affordability.
People were changing their priorities based on their incomes. However, since the epidemic,
demand for wellness and entertainment goods distributed through digital channels has
significantly increased (Gu, 2021). Due to the COVID-19 pandemic, individuals have become
more conscious about personal hygiene and health. They have adopted measures such as
frequent hand washing and wearing masks to prevent the spread of the virus and maintain a
healthy lifestyle. Consequently, there has been an increase in the purchase of healthcare
products by the general public (Zhang, 2022).
Digital commerce during COVID-19
Companies had to shut down because of COVID-19. As a consequence of this, we
had to do most of our shopping online (Gu, 2021). Our buying habits altered as a result.
Online food shopping was one of the main success stories for items during COVID-19. In the
first few months of the pandemic, it took off and dominated the surroundings (Vyas, 2022).
However, as is common knowledge, everything has advantages as well as disadvantages.
Maintaining customer loyalty was already difficult, but Covid made it worse (Wright, 2020).
According to Wingar, 36.6% of consumers, as online shoppers become more sophisticated,
they were able to conduct business with more merchants (Wright, 2020).
3. Conclusion
In conclusion, global consumer behavior has significantly changed as a result of the
COVID-19 epidemic. Consumers are becoming more cautious, putting their essential
necessities first, and favoring locally made and environmentally friendly goods. In addition, the
pandemic has increased online shopping, compulsive buying, panic buying, and impulse
buying (Tao, 2022). Furthermore, the pandemic has resulted in a move towards online buying
and digital commerce (Gu, 2021). While this has benefits, it has also made it harder for
businesses to keep customers loyal. The pandemic has, in general, had a significant impact
on consumer behavior, and businesses must adjust their strategy to suit these shifting
demands. Future studies in this field might examine how the epidemic has affected consumer
behavior over the long run. It is crucial to know whether the changes in consumer behavior will
last or if they will go back to pre-pandemic trends when the world begins to recover from the
pandemic.
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4. References
Boland, B., Smet, A. D., Palter, R., & Sanghvi, A. (2020). Reimagining the office and
work life after covid-19. McKinsey & Company.
Das, D., Sarkar, A., & Debroy, A. (2022). Impact of covid‐19 on changing consumer
behaviour: Lessons from an emerging economy. International Journal of Consumer
Studies, 46(3), 692–715. https://doi.org/10.1111/ijcs.12786
Gu, S., Ślusarczyk, B., Hajizada, S., Kovalyova, I., & Sakhbieva, A. (2021). Impact of the
COVID-19 pandemic on online consumer purchasing behavior. Journal of Theoretical
and Applied Electronic Commerce Research, 16(6), 2263–2281.
https://doi.org/10.3390/jtaer16060125
Tao, H., Sun, X., Liu, X., Tian, J., & Zhang, D. (2022). The impact of consumer purchase
behavior changes on the business model design of Consumer Services companies over
the course of COVID-19. Frontiers in Psychology, 13.
https://doi.org/10.3389/fpsyg.2022.818845
Vyas, L. (2022). “New normal” at work in a post-COVID world: Work–life balance and
labor markets. Policy and Society, 41(1), 155–167.
https://doi.org/10.1093/polsoc/puab011
Wigand, C., Kolanko, K., & Ferroli, J. (2021). Commission's new consumer survey
shows impact of COVID-19 and popularity of ‘greener’ choices. European Commission,
1-2.
Wright, O., & Blackburn E. (2020) How COVID-19 will permanently change consumer
behavior. Accenture, 1-34.
Zhang, Q., & Zheng, Y. (2022). Pricing strategies for bundled products considering
consumers’ green preference. Journal of Cleaner Production, 344, 130962.
https://doi.org/10.1016/j.jclepro.2022.130962
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