Question

Since its detection in China in December 2019, the novel coronavirus (COVID-19) has quickly spread all over the world, affecting 199 countries and territories around the world. As of April 4, 2020, more than 1.2 M people had been infected and more than 65 thousand people died. Numerous countries around the globe have adopted unprecedented measures to limit the further spread of the virus and reduce the number of future victims. The novel coronavirus has an enormous influence on international financial, social, managerial, and economic development in many regions and countries, and poses a great challenge to local epidemic control and prevention systems. (Journal of Research in Emerging Markets, March 2020)

Your Assignment Write an essay about the sudden change in consumer habits in response to the COVID-19 outbreak.

In your essay, discuss what happened to the external as well as internal influences, lifestyle, and situational influences. Also, please write about how companies have changed their communication strategies as well as distribution strategies in response to the current situation. Mention examples of companies that demonstrated corporate social responsibility to get closer to their customers and fulfill their values (International and local).

Keep consumer behavior as a core thought in your writing applying the concepts you have learnt this semester about consumer behavior from chapter 1 until chapter 14.

Answer 1

The outbreak of COVID- 19 has been a smash to most of the coutries' economy and their businesses. The pandemic posed a challenge to the entire world and took lives of many. Due to the outbreak, people across nations are advised to lock down inside their homes and do not move out (except in emergency).

All this changed the consumer behavior to great extent. The consumers are now becoming more aware and not indulging into unwanted purchases and spending. Their behavior have shifted from buying in bulk, to buying only the necessary items, required for survival. The online shopping behavior have also reduced to a great extent and consumers are now not buying anything online.

The overall lifestyle of consumers have drastically changed and resulted into being more simple, organized and buying only the necessities. The companies, on the other hand have also shifted their mode of communication to online mode and try to reach out to its stakeholders through various online modes.

Not only this, the distribution strategies have also changed and companies have shifted to supplying necessities to remote areas with more population so that people can buy as and when required. But the overall distribution process have been slowed down as the demand for the products have also gone down.

It is said that a good company is one who takes care of its customers during the hard times. There are many companies who are fulfilling their part and being a bit more socially responsible by connecting with their customers and taking care of them. An example could be "Tata". The brand in itself is focusing in taking care of its stakeholders to a great extent by reaching out to its customers via telephonically and through various online modes. The company tries to ensure that its customers are safe and ensuring them their continuous support, by either extending their loan due dates or by offering them extra months of free services on their motor vehicles. All this have added to the tag of corporate social responsibility as being fulfilled by Tata.

Though the economies across the world have been hit badly and the behavior of consumers have changed to being more focused and spending on important things only, the companies are putting in their efforts to ensure safety of its customers and making them aware about the support they extend to them and the efforts they are putting to ensure customer safety. If things go the way they are, and companies and Government keep on doing their bit, a day will come when the world will win over the outbreak of COVID-19 and the economies will flourish again.