Changes in Consumer Behaviour During COVID-19

Dr Sanar Muhyaddin and colleagues recently published an article in the Global Journal of Economic and Business, titled “Consumer Behaviour Changes During the COVID-19 Pandemic: A Case Study of Gibraltar.” This study investigates how consumer behaviour in Gibraltar shifted due to the COVID-19 pandemic, with a focus on anxiety, media influence, and online shopping trends. It highlights the unique responses of consumers in Gibraltar compared to broader global trends.

Key Findings:

• Anxiety and Stress: Consumers in Gibraltar experienced anxiety and stress due to COVID-19, which impacted their purchasing decisions.
• Stockpiling Behaviour: Unlike other regions, Gibraltar did not exhibit significant stockpiling behaviour.
• Communication Channels: The most frequently used communication channels were social media, TV, and word of mouth, contributing to heightened fears related to the pandemic.
• Agile Marketing: The study emphasises the need for marketers to adopt agile strategies that engage customers and support their mental health.

Methodology

The research employed a quantitative approach using a structured questionnaire to gather data from consumers in Gibraltar, aiming to provide empirical insights into consumer behaviour changes during the pandemic.

• A total of 226 valid responses were collected, after discarding 46 incomplete ones.
• The questionnaire consisted of eight questions, mainly using nominal scales.
• Data analysis was conducted using SPSS version 23.0, employing descriptive and inferential statistics, including Chi-square and one-sample binomial tests.
• The sample size was deemed sufficient for statistical analysis, meeting the minimum requirements for chi-square analysis.

Impact of Media on Consumer Behaviour

The role of media during the pandemic was significant in shaping consumer perceptions and behaviours, often exacerbating fears and anxiety.

Key Points:

• Media’s Role: Media coverage intensified public fears and anxiety about COVID-19, leading to panic buying behaviours.
• Social Media Influence: Social media was identified as the most influential source of information, significantly impacting consumer attitudes and decision-making.
• Dual Role of Media: While media provided necessary information, it also heightened stress and speculation among consumers.

Online Shopping Trends During the Pandemic

The pandemic caused a notable shift towards online shopping, with consumers in Gibraltar adapting to new purchasing behaviours.

• Unusual Shopping Experiences: Many consumers resorted to online shopping, finding the experience unusual.
• Persistence Post-Pandemic: The study hypothesizes that the online shopping behaviours observed during the pandemic may persist even after the pandemic ends.
• Key Factors: Convenience, variety, and ease of access were identified as contributing factors to the increased reliance on online shopping.

Gender, Income, and Age Distribution of Respondents

The study collected data from a diverse group of respondents in Gibraltar, focusing on gender, income, and age demographics. The sample consisted of 226 respondents, with the following distribution:

• Gender: 69% female, 30% male, and 1% preferred not to disclose.
• Income: 32% of respondents had an income between £25,000-£49,999, while 11% preferred not to disclose their income.
• Age: 26% of respondents were aged 45-54 years, followed by 18% in the 35-44 age group. 1% of respondents were aged 75 or older.

Stockpiling Behaviour During the Pandemic

The research examined stockpiling tendencies among consumers during the COVID-19 pandemic.

• Stockpiling Prevalence: 54% of respondents reported stockpiling, while 46% did not.
• Items Stockpiled: Food was the most commonly stockpiled item, with 50% of respondents stocking up on food, followed by 36% for toiletries and 27% for drinks.
• Anxiety’s Impact: 42% of respondents felt that anxiety and stress due to COVID-19 affected their purchasing behaviour.

Media Influence on Consumer Behaviour

The study assessed the role of media in shaping consumer behaviour during the pandemic. Social media was found to be the most influential source of information.

• Social Media Impact: 54% of respondents indicated that social media influenced their purchasing behaviour.
• Other Media Channels: 26% were influenced by TV news, and 20% by other online sources.

Media’s Role in Worsening Pandemic Fears

The study explored whether media coverage exacerbated fears related to COVID-19.

• Perception of Media Impact: 76% of respondents believed that media worsened fears about the pandemic, while 24% disagreed.

Future Online Shopping Intentions Post-Pandemic

The research examined whether consumers intended to continue their online shopping habits after the pandemic.

• Post-Pandemic Intentions: 61% of respondents indicated they would not continue their online shopping habits after the pandemic.

Limitations and Recommendations for Future Research

The study acknowledged several limitations and proposed areas for future research.

• Methodological Limitations: The quantitative methodology may not capture the emotional aspects of consumer behaviour.
• Future Research Directions: Future studies should consider qualitative methods and larger sample sizes for better representation. Exploring factors influencing behaviour changes during crises would also be valuable.

Implications and Recommendations for Marketers

The findings have significant implications for marketers in understanding consumer behaviour during crises.

• Marketing Strategies: Marketers should focus on essentials and adjust product portfolios during crises.
• Crisis Management: Crisis management plans are essential to maintain supply chains and product availability.
• Mental Health Support: Brands should prioritise mental health support and engage with customers through relevant communication during crises.

Read the full paper.