Consumer reactions to crises, voluntary and involuntary commitment to awareness

Abstract

THE AIM OF THE PAPER

The tougher economic situation is naturally leading to more prudent purchases, as tighter budgets are needed to cover consumption at or close to the same level as before. The aim is to examine whether we can observe an indicator in economic indicators that is a good predictor of any crisis period, regardless of whether the crisis is endogenous; originating inside the economy, or exogenous; originating outside the economy but spilling over into it. If such an indicator is found, the question is whether its changes have a direct impact on consumer reactions. We examine that where is the point in a crisis period when consumers change their previous consumer behaviour. If there is a close co-movement between economic indicators and consumption trends, we can also draw conclusions about the level of awareness.

METHODOLOGY

Finding the relationship between macroeconomic indicators and indicators of changes in consumer behaviour in different databases, using dot plots. The strength of the relationships is determined by interpreting the coefficients of determination.

THE MOST IMPORTANT RESULTS

We were looking for the point in a crisis where almost all social stratums are forced to change. We have found that regardless of the nature of the crisis, the impact of a crisis on consumer behaviour comes to surface when it is directly felt by consumers in terms of their spending, that is, when their financial options become narrower. It also became apparent that in the event of a crisis, a reduction in the volume of consumption occurs firstly in the field of invisible consumption. When consumers feel the impact of crises on their own wallets, awareness awakens, the "survival instinct" is activated, and emotions become less dominant in the decision-making processes.

RECOMMENDATIONS

In a crisis situation, all research related to consumption receives special attention, especially if lessons can be learned from it. The study highlights the potential of databases that are available and can be usefully analysed. However, further in-depth research is needed, including qualitative methodologies, to investigate whether the changes that occur are permanent in consumer behaviour, whether people learn from what they have experienced during crises or they revert to their previous routines.