Question

The Covid-19 pandemic has significantly affected the ways consumers spend and certainly will reshape consumer behavior.

Examine this recent report by McKinsey & Company:- https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19

Q1. How has your willingness to pay and spend across different categories of products altered during this pandemic? Discuss it in 100-150 words.

Answer 1

Consumer behaviour of people have changed drastically with the pandemic.The basic consumption pattern has shifted from the regular to a new method of need based spending.The countries across the world has started to partially reopen it's market and people are getting adapted to live with the reality of Covid. Some major changes of behaviour observed are
1) Use of digital medium. People have sorted to use online medium or e-commerce for purchasing goods and services taking the social distancing and untouchable delivery patterns to be strictly followed. Digital media has become even the mode of education that all have resorted to use electronic gadgets for communication and education.
2) Health conscious and caring economy. People are conscious about the precautions to be taken and social distancing. Hence a consumer prefers to shop only if the safety measures are carried out.
3) Consumer behaviour shift to need based spending due to financial uncertainty. In the crisis the revenue generating means are stuck.
4) Changed the regular loyal products to new variants in terms of availability, quality and price . Loyalty has been forced to give up and change pattern of consumption based on necessity.
5) Homebase economy as that people have secluded themselves to their homes due to the pandemic and many have started continuing with their job on work at home mode. Most are not as comfortable as before the pandemic in indulging activities outside home.Travel and tourism have ceased due to pandemic.