International Journal of Multidisciplinary Research and Growth Evaluation  |  ISSN (Online): 2582-7138  |  Double-Blind Peer Review  |  Open Access  |  CC BY 4.0

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International Journal of Multidisciplinary Research and Growth Evaluation

ISSN (Online): 2582-7138 | Open Access

Economic and Social Issues that Determine Consumer Behavior in the Covid-19 Pandemic

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Volume: 6 | Issue: 1 | Pages: 999-1005

Subject: Economics

Country: Indonesia

License: CC BY 4.0

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Abstract

The COVID-19 pandemic brought significant changes to both the economy and buyer attitudes in many market sectors. The dynamic dynamics and uncertainty about the future led to numerous consumer reactions, such as refusal to purchase certain goods and services and delayed spending. The impact of the pandemic can be considered in the context of the factors that make up consumer behavior: economic, such as income levels and sources, supply, price level, and relationships, as well as non-economic. This article analyzes consumer behavior throughout the pandemic and discusses the economic and social factors influencing purchasing decisions. The article is theoretical, but at the time reviews several Polish and foreign investigations. The aim of the publication is to determine to what extent the COVID-19 pandemic has altered the behavior of Polish consumers taking into account economic and social factors. In particular, how purchasing behavior, spending structure, saving, and final decisions made by consumers influenced.

 

How to Cite This Article

I Gede Putu Eka Budiyasa (2025). Economic and Social Issues that Determine Consumer Behavior in the Covid-19 Pandemic . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 6(1), 999-1005.

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  1. 92. Factorsthatdonotdependontheconsumerincludethepriceofagivenproduct, thecharacteristicsandqualityoftheproduct, andtheadvertisingactivitycarriedoutbyentrepreneurs. Thebasicmicroeconomicfactors, ontheotherhand, aretheincomeleveloftheconsumer, whichisresponsibleformeetingneeds. Otheritemsaredirectlyrelatedtotheincomecategory: expenses, savings, andproperty. Economicfactorscanbeconsideredessentialbecausetheydeterminethepossibilitiesoftheconsumer. Thelastgroupofdemographicfactorsincludesthosethatdescribetheconsumer(ageandgender\andthehousehold(size, composition\. Theageoftheconsumerisimportantwhenanalysingbehaviour, asneeds, expenditureandconsumptionchange. Consumerincomeisthemostimportanteconomicfactor. Itisameansofsatisfyingneeds, affectingconsumerspendingandthelevelandstructureofconsumption. Changesinconsumerbehaviorareduetochangesinthelevelandstructureofincome. Thisincreasehasledtoanincreaseindemandand, conversely, areductionindemand. Thesocialfactorsthatinfluenceconsumerbehaviorare, firstandforemost, rolesandsocialstatus, alongwithreferencegroups. Theconsumptionofproductsofcertainbrands, theuseofcertainservicesorthepurchaseincertainplacesandsituationsincreasethesocialstatusofconsumers, aswellastheirmembershipinacertaingroup. Activitiesrelatedtotheprocessofacquiringandconsuminggoodsandservicesacquireasocialdimensionthatcontributestomeetingneedsinmanysituations, suchasestablishinginterpersonalrelationshipsorhavingleisuretimewithfamilyandfriends. Thisgroupalsoincludesculturalfactors, especiallythosethatdeterminetheconsumptionpatternsofmembersofsociety, i. e. theirculture, i. e. theirentirespiritualandmaterialheritage, customs, beliefsandbehaviouralpatterns. Theculturalchangesthataretakingplacearesignificantlyaffectingtheevolutionofthevalues, attitudes, motivationsandperceptionsofmodernconsumers. Traditionalvaluessuchasfamily, cultivatedhabits, andthedesireforsacrificeareincreasinglyequatedwithnewvaluessuchasindividualism, self-actualization, materialcomfort, orhealth. Consumptiondependsontheprocessesofglobalization, linkedtothehomogeneityofbuyers'needsandthehomogenizationofconsumptionmodels, whicharespreadingbeyondbordersandcreatingaglobalconsumerculture. Thefactorsdescribeddetermineconsumerbehaviorand, ultimately, leadthemtomakepurchases. Thepurchasingprocessisthesetofactivitiesrelatedtothepurchaseofproductsandservices, aswellastothepreviousdecisionsconditionedbytheseactivities. Ithasfivephases: becomingawareoftheneed, lookingforinformation, evaluatingalternatives, makingpurchases, makingpurchasesandmakingpurchasesandmakingpost-comparisons. Theroleofconsumersinshapingthemarketisdecisive, regardlessoftheirsituation, whethereconomicallystableorincrisis. Itisthereforeparticularlyimportanttoknowallthefactorsinfluencingconsumerbehaviourandadaptthemtotheprevailingenvironment. Pandemicand Selected Determinantsof Market Behaviour Thecrisiscausedbythepandemicanditsconsequenceshavehadadecisiveinfluenceonconsumerbehaviourandmarketparticipationprocesses. Regardlessofthefactorsthathavecausedthecrisis, economic, political, naturalorbiological, theycausepandemicsthatthreatensociety'ssenseofsecurityinmanydimensions: economic, psychologicalandsocial. Thenewandunknownstategeneratesuncertaintyandfearofexistence. Thecrisisisrelated, amongotherthings, tothegrowthoftheeconomy'sindebtedness, theincreaseinunemploymentandthereductionindemandandinvestment. Inadditiontotheeconomicconsequences, thesocialdimensionmustbetakenintoaccount, asitaffectstherealmofsociallife, forexamplebyworseningthemoodofthepopulationawareofthecollapseoftheeconomy. Accordingtothereportpreparedbythe Congressional Research Serviceon04.05.2020, thepandemichashitindividualeconomiesthroughmanychannels. Ithasstuntedorcompletelyparalyzedproductionandconsumption, cutoffsupplychains, andcutofftradeflows. Infact, ithaschangedmanymarkets, includingoil, andshakenupstockmarkets. Unemployment, intenseactivity, extremepovertyandfoodshortageshaveincreased. Inadditiontothesolvencyofsomecompanies, ithasalsothreatenedthesolvencyofgovernmentsinmanycountries. Researchersat Harvard Business Schoolin Bostondistinguishedfourcustomersegmentsduringthecrisis(Anning-Dorsonetal.,2020\[21: Painfulbutpatient, pragmatic, moreoptimisticthanconsumersinthefirstsegment, butstillfocusedondistanceandsavings. Theyrepresentthelargestgroupofconsumers. Intheeventofadeepcrisis, theymovetothefirstcategory Comfortablywealthyabouttheirfuture, therecessiondidnotsignificantlyaffecttheirconsumerbehavior. Fortoday'sconsumers:"inthecurrentenvironment", notfullydrivenbychangesofrealeconomicdepth, theyarenotusedtoit, theyvaluefixedvalues, theydonotsave. International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com1001|Page Thiscategoryischaracterizedbygrassrootsyouthwhohavetheiremotionalandpersonalbones. Asaresultofthecoronaviruspandemic, peopleinhouseholdshavefoundthemselvesinauniqueandextraordinarysituation. Family, workorsociallifehaschanged, butprobablytoagreaterorlesserextentforeachmemberofsociety. Itshouldbenotedthatconsumerbehaviorhasshownsignificantdifferencesinthedifferentphasesofthepandemicandcolleaguessummarizedthestudyontheimpactofthecoronaviruspandemiconfoodpurchases. Intheinitialperiod, increasedpurchasesandstockpiling, duetofearanduncertainty, werecharacteristicfeaturesofmostconsumers. Accustomedtothesituation, shoppinghabits, andattitudeswith COVID-19, personalexperiencesareverydifferent, theeconomicsituation, andmuchmore. Alongwiththepandemic, therewasmoreinterestinhomecooking, buyingfromlocalsuppliers, buyingfoodonline, buyinghealthyfood(althoughtheyfearfutureincome\, andreducingwaste. The KPMGreportshowsthatsomeeconomicfactorshavedecisivelyinfluencedconsumerbehavior. Accordingtothestudy, for44%ofrespondents, thefinancialsituationhasworsenedorworsenedconsiderably. Fortheseconsumers, thebuyingprocesshasbecomemorecomplex, aspurchasingdecisionshavebeenmadeintentionally.75%of Polessaidtheexplosioncausedbythepandemicaffectedspendinghabits, andhalfofthosesurveyedacknowledgedthattheyhadparalyzednon-essentialspendingasaresultof COVID-
  2. 191. Reportsfromothercountriesaffectedbythepandemicalsoconfirmtheimportanceofthesefactors. Thestudycarriedoutby EITFoodin10 Europeancountrieshighlightedtheworseningfinancialsituationofmanybuyers. Inthesurvey,55%ofrespondentssaidtheywereshortofmoneyattheendofthemonthand34%ofrespondentslostalltheirincome. Consequently,1/3ofrespondentsadmittedthatpriceisthedeterminingcriterionforfoodpurchases
  3. 2. Anotherconfirmationoftheimportanceofpricelevelsandtheneedtobuyisthe Pw Creport. Accordingtothestudy, consumerssignificantlyreducedspendingonnon-foodpurchases(consumerspendingfellby51%comparedtothepre-pandemicsituation\. Inaddition, the Pw Creportshowedthat, inapandemicsituation, consumerbehaviorwashighlyvariableandthatbuyers'expectationsaboutthelowpriceandvalueofpurchasedgoodsandserviceswereconstant. Researchfirm Mc Kinsey&Companyhasoutlinedchangesinconsumerbehaviorsincethestartofthepandemic. Reducedhouseholdincomes, bothin Europeandthe United States, willreducethenumberandqualityofpurchases, aswellasdelaysanddelays. Theconsumer, fearfulthathiseconomicsituationwillharmhim, canreducethetendencytoconsumeandensurefutureconsumption. APolishstudyhasshownthat, inadditiontoinflation, thehighpriceofhigh-qualityfoodisthemainobstacletolimitingthegrowthoffooddemand, especiallyamonglow-incomeconsumers. Thehighertheincomenumberofconsumers, thehighertheproportionofpeoplewhoconsumemorefruitsandvegetablesandprotein-richproducts. Lower-incomefamiliesincreasedtheirconsumptionofenergy-richfoods(composedofcarbohydratesandpasta\. Theprofessorsofthe Krakow Universityof Economics,, hadinterestingconsequencesonattitudesdefinedbysocio-economicfactors. Alargegroupofconsumers(43%\tendtodelaypurchasesduetothepandemic. Atthesametime, asimilarproportiontorespondentspurchasedgoodsorservicesforaltruisticreasonstohelpproducersorsellers. Otherprosocialconsumerbehaviorsdidnotchangesignificantly. Thedelayinpurchasesisalsorelatedtothefearofapandemic: peoplewhofearthediseasethemosthaveabetterchanceofbuyinginthefuture. Especially, asignificantproportionofrespondents(morethan70%\gavetimetoreflectontheproblemofexcessiveconsumptionofgoodsaffectedbythecoronavirus. Oneintworespondentssaidthatoncethepandemicwasover, theywouldbuyfewerproductsthanbefore. Therefore, consumerbehaviorisincreasinglyconsideredandreasonable, anddecisionstopurchaseproductsaremadefromthepointofviewoftheutilitythatthegoodinwhichitisconsumedcangive. Limitedresourcesandtheattempttomaximizesatisfactionfromaneconomiccrisismeanrationalizingconsumerbehavior. Thedilemmafacingtheconsumerhasbeendividedbetweenseveralobjectives. G. Catohasmoreconservatismandprudenceinthedecisionsmadebytheconsumeraccordingtothetheoryofconsumerbehavior. Intimesofcrisis, thesecharacteristicsseemespeciallysignificant, especiallywhenthesedecisionsaremadeoveralongerandmoreseriousperiodoftime, andrequireamoredetailedanalysisofpossibleconsequences, aswellasanassessmentoftheconsumer'scurrentandfuturefinancialsituation. Socialfactorsmustbeeliminatedfromsocietyattheeducationallevel. First, highereducationalattainmentaffectswagelevelsandincomegrowth. Second, increasededucationalattainmentisassociatedwithincreasedhealthawareness, whichinfluencessociety'sexpansiontonewconsumertrendsandchangesinthestructureandqualityofpurchasedgoods, includingfood. Conclusion Fromtheaboveconsiderations, itcanbededucedthatthepandemichassignificantlyinfluencedthebehaviourofmarketparticipantsandhasforcedconsumersnotonlytochangetheirlifestyles, butalsotomodifyhabits, routinesandpatternswithregardtothepurchaseanduseofconsumergoodsorservices. Takingintoaccounttheeconomicfactorsmentionedabove, inthecurrentstageofmarketexercises, theroleofinflation, i. e. thegeneralizedincreaseinthepricesofgoodsandservicesinthelongrun, combinedwiththereductioninthevalueofmoney, isworthhighlighting. Thematerialsituation, incomeandjobsecurityofthepopulationareoneofthemostimportanteconomicfactorsinfluencingthedemandforfood, goodsandservices. Thesefactorsdeterminethesizeofpurchasingpowerand, atthesametime, differentiationinproportiontoindirectemploymentinfluencesthestructureandlevelofconsumptionamongcertainpopulationgroups. Risingfood, energyandfuelpriceshaveforcedconsumerstochangetheirbehaviorandcontinuetospendandlivemoreproductivelives. Economicandsocialfactorshavehadadecisiveinfluenceonconsumerbehaviour; Asaresultofthepandemic, thefinancialsituationofmosthouseholdsworsened, whichaffectedthesavingsprocess. Asaresultofthe Covid-19pandemic, spendingwaslimitedtowhatwasnecessaryandthenumberandqualityofpurchases, aswellasdelays, werereduced. Consumerbehaviorbecamemorethoughtfulandrational, andproductpurchasedecisionsweremadefromthepointofviewoftheutilitythatthegoodconsumedcouldgive; Membersofsocietywithahigherlevelofeducationandsocialfounditeasiertoorientthemselvesto International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com1002|Pagethenewsituation, andtheyhadmoreawarenessandknowledge, itwaseasiertofindanewjobiftheylosttheirjobs. Thepandemicsituationhasundergonenumeroussocio-economicchangesintheconsumptionenvironmentandinhouseholds, soresearchershaveonlybeeninterestedinconsumerbehaviour, changesinprioritiesorthestructureofconsumption. Conflictof Interest Statement Astheauthorofthearticle: Ideclarethattheresearchwasconductedintheabsenceofanycommercialorfinancialrelationshipthatcouldbeconstruedasapotentialconflictofinterest. References
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Publication Information

Journal: International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE)

Publisher: Anfo Publication House

ISSN: 2582-7138 (Online)

Frequency: Bimonthly

Language: English

Open Access: Yes - This article is distributed under the terms of the Creative Commons Attribution 4.0 International License

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