The Impact of COVID-19 on Market Research and Consumer Behavior.
COVID-19 has wreaked havoc on humanity in unprecedented ways, afflicting 6.5 million people and displacing millions. While the loss of occupation, life, and livelihood are well-articulated COVID-19 effects, the loss of routine social and economic life over time has long-term effects on people. People are becoming more health conscious and adjusting their lives and eating habits due to the constant worry of infection and limited mobility.
According to preliminary investigations, the type and intensity of the impact of COVID-19 differ across citizens and depend on their poverty level, residence status, age, and other demographic characteristics. People's spending habits have changed as a result of the economic, social, and psychological impact of COVID-19.
Market research on the influence of COVID-19 on customers has also revealed a rise in expenditure on groceries as well as health and hygiene items. The aforementioned developments have prompted experts to investigate how and why consumers behaved throughout the pandemic.
Consumer purchase behaviour changes during COVID-19 Pandemic
According to disaster psychology, diverse psychological changes in people produced by various periods of emergency cause purchase behaviours to exhibit distinct features, such as panic buying behaviours, compulsive buying behaviours, impulse buying behaviours, and online shopping behaviours.
Furthermore, consumers' perceptions of scarcity, uncertainty, and severity, as well as other psychological factors, will increase, leading to panic buying behaviour. Consumers' impulsive purchasing will get worse due to concerns over stockouts and supply chain disruptions brought on by the COVID-19 pandemic. The more people fear the COVID-19 outbreak, the more likely it is that they would make hasty purchases of health products.
The COVID-19 epidemic has raised consumer felt pressure, and some consumers are engaging in compulsive purchase behaviour. They can reduce their inner uneasiness and tension by increasing their purchasing behaviours. Furthermore, following the COVID-19 outbreak, consumers' online purchasing habits have grown in popularity. In response to the government's home isolation restrictions, customers are increasingly turning to online purchasing for food and other necessities. People who are aware of the risks associated with going out are more likely to purchase fresh food online.
Consumer purchasing behaviour is no longer constrained by time and geography, and customers employ mobile tools such as smartphones to obtain shopping independence. Among the studies described above, extensive research on a specific characteristic of changes in buying behavious of consumers has been conducted, but changes in the psychological and behavioural characteristics of consumers have not been systematically sorted out. Changes in consumer purchasing behaviour are represented in various ways, not just one.
Consumer purchase behaviour changes and business model design
People's worries and concerns about the pandemic are unlikely to abate in the near future, and the consequent changes in consumer demand may eventually harm consumer services firms' supply chain performance. Due to enforced social isolation, delayed return to work, and disrupted logistics, these enterprises have already faced substantial issues with their present business models. Because consumers are unlikely to return to their previous purchasing habits anytime soon, the pandemic is putting some major businesses to the test. Consumer services organisations, according to the Expectation Confirmation Theory, must modify their business models to meet new client expectations in order to achieve consumer happiness.
Changes in consumer purchasing behaviour as a result of the COVID-19 pandemic have influenced the construction of novelty-centred business models. Novelty-centred business models place a greater emphasis on exploiting new opportunities in novel ways, and their essence is to meet new consumer value propositions, needs, or experiences through innovations in the activity system's content, structure, or governance. Although the COVID-19 pandemic has reduced consumer purchasing power, the requirements for product quality upgrades will remain unchanged. Changes in the purchasing object push consumer services organisations to develop business strategies that are centred on innovation.
Consumers' satisfaction with standardised products gradually decreases as their overall consumption level, consumption power, and consumption preferences improve, and the trend of pursuing more diverse and personalised products or services continues. Companies must develop new products and price them appropriately as consumer preferences diversify in the face of an intensely competitive market, especially in the setting of environmental uncertainty exacerbated by the COVID-19 pandemic. Through innovative methods based on product technology innovation, novelty-centred business models can provide customers with better products and experiences.
Consumers choose products from companies with a reputable image or a strong sense of social responsibility when it comes to buying purposes. As a result, customers want businesses to create unique business models. Consumers favour unique buying methods and services, such as mobile payment and contactless delivery, in terms of purchase methods.
This indicates that consumer demand for novel payment mechanisms has not yet been fully met. People who are repeatedly exposed to the same items or services will become bored due to the diminishing marginal utility of overexposure. Customers who are bored will eventually be dissatisfied. To re-establish client satisfaction, consumer services organisations should embrace a novelty-centred business model design.
The COVID-19 epidemic has rapidly disturbed global political and economic order, having a considerable impact on consumer service sectors such as retail, hotel, and tourism. The epidemic has resulted in unprecedented global lockdowns, drastically limiting people's daily activities. As a result, more consumer services firms are experimenting with new technologies and platforms to suit shifting consumer demands, resulting in new consumption patterns. To address the constraints, some consumer service providers have created alternate business models such as "contactless delivery" and "social cinema."
People's livelihoods and daily lives have been radically altered as a result of the government's stringent restrictions on population migration. People in a dire situation may develop a "nothing to lose" mentality and become more prone to risk-taking, resulting in more impulse purchases; they may also develop future anxiety and post-traumatic stress disorder (PTSD) and, resulting in fewer purchases to increase savings.