In early 2020, the novel coronavirus (COVID-19) pandemic spread across the world. It originated from mainland China and has since ravaged global economies and industries. Unlike the 2002-04 SARS outbreak and the 2011 Ebola outbreak, coronavirus pandemic has increased unemployment rates, thwarted global economic situations, and industrial failures. Nevertheless, the luxury industry has encountered numerous failures brought about by the pandemic (Consumer Behavior Changes 1).
To understand how the conditions emanating from COVID-19 affect consumer behavior changes, especially in the personal luxury segment, I will conduct a study on customer behavior changes based on panic buying, consumer spending patterns, and the influence of global media. The methodology utilized to analyze panic buying, patterns of consumer spending, and global media influence includes questionnaires, conducting interviews, and observation with a checklist.
As COVID-19 spread globally, many industries have been affected by subsequent market and economic volatility and intensified consumer uncertainty. Most industries reacted swiftly to safeguard its business partners, employees, and consumers (Kohli et al., 2020). This was in line with addressing the most urgent concerns.
For example, luxury industries overhauled productions to focus on manufacturing face masks and hand sanitizers and contribute financial donations to healthcare institutions and non-profit organizations. This paper discusses consumer behavior changes caused by COVID-19 pandemic, including panic buying, consumer spending patterns, and the influence of global media (Consumer Behavior Changes 1).
The project aims to determine consumer behaviour changes caused by the COVID-19 pandemic in the personal luxury segment.
Objectives of the Project:
- Provide knowledge about the effects of COVID-19 pandemic in the personal luxury segment
- Assess factors resulting in consumer behaviour changes
- Provide support for capacity building and COVID-19 prevention and control
Panic buying is defined as a behavioral characteristic of consumers buying substantial amounts and varied product range in anticipation of a change in the market sphere. Such changes include events such as disasters, pandemics, price increases, and upstream shortages. During the COVID-19 pandemic, many people rushed to household necessities in bulk and medical supplies rendering products unavailable for vulnerable groups (Kohli et al., 2020) (Consumer Behavior Changes 1).
Patterns of Consumer Spending
Maslow’s Hierarchy of Needs Model describes various instances of changing consumer behaviors in response to natural disasters and pandemics, such as the COVID-19 pandemic. The model helps us understand consumer decision-making processes considering ever-present desire to satisfy wants and needs. In the context of satisfying needs and wants, Maslow’s model analyses the satisfaction scale of the wants and needs and what motivates consumers to priorities luxury spending (Sheth, 2020) (Consumer Behavior Changes 1).
Influence of Global Media (Consumer Behavior Changes 1)
The media plays a vital role at the onset of events such as a pandemic. During the COVID-19 pandemic, the media has demonstrated its ability to inform, misinform, and insight hysteria through headlines, ultimately influencing public opinion in general (Stanciu et al., 2020). Most media platforms have since become influential news coverage platforms influencing consumer behaviour such that fear of contagion being imminent (Consumer Behavior Changes 1).
Research Methodology and Data Collection:
Qualitative: Use of questionnaires, observation with the checklist, and Interviews
Contribution to the Field
Since the pandemic spread worldwide, scientists, researchers, and scholars are continuously researching and developing safe and readily available vaccines. Recently, vaccine development efforts have been hampered with scientists discovering new virus strains which have more infections (Consumer Behavior Changes 1).
There are currently no adequate mechanisms to identify the strand, and if the world should be prepared for another wave. Consequently, consumer behaviours have become highly unpredictable, leaving the luxury sector in oblivion. The proposed study would better understand the consumer behaviour changes within the personal luxury segment due to Covid 19 for academicians and marketers (Consumer Behavior Changes 1).
Kohli, S., Timelin, B., Fabius, V., & Veranen, S. M. (2020). How COVID-19 is changing consumer behavior–now and forever.
Sheth, J. (2020). Impact of Covid-19 on consumer behavior: Will the old habits return or die?. Journal of Business Research, 117, 280-283.
Stanciu, S., Radu, R. I., Sapira, V., Bratoveanu, B. D., & Florea, A. M. (2020). Consumer Behavior in Crisis Situations. Research on the Effects of COVID-19 in Romania. Annals of the University Dunarea de Jos of Galati: Fascicle: I, Economics & Applied Informatics, 26(1).