COVID-19 Induced Changes in Consumer Behavior

Abstract

Using literature survey and analysis, this study assessed consumption behavior changes induced by the COVID-19 pandemic and the possibility of retaining them after the pandemic. Financial uncertainty and loss of welfare sources triggered saving behaviors. Some people binged on media products offering anxiety-mitigating and therapeutic benefits. While such behaviors could decrease once the virus is eliminated and its stressors disappear, some routines could continue. Certain values affecting the nature and frequency of consumption could also change, thus increasing the speed of individual customers' habit formation. To make accurate long-term strategic decisions without suffering losses, the restaurant sector and other businesses must adjust to new operational conditions by analyzing changing revenues and possible lasting effects of changing consumer behavior.

The Impact of Covid-19 on Consumers’ Behavior: Evidence from China

“…Some literature uses research by Kumar and ABDIN (2021) in India to display the pure -required consumption model that appears after panic purchases under the epidemic. Receive the impact of the epidemic and change [6]. This study combines the impact of COVID-19 on China and the global economy and market demand.…”

The Influence Of Financial Socialization, Overconfidence And Mental Accounting On Investment Decisions

“…According to (Sujadi, 2021), one psychological factor influencing financial behaviour is the locus of control. Meanwhile, regarding demographic factors (Gerlich, 2021), race and ethnic background tend to influence financial behaviour. (Sirait & Murdianingrum, 2020) States that several things influence a person when making investment decisions.…”

“…Research by (Gerlich, 2021), (Safitri & Kartawinata, 2020), and (Barberis, 2018) measures mental accounting through respondents' self-assessment of individual habits in separating money based on certain accounts, choice bracketing, self-control and evaluation of financial decisions presented in the form of statements into indicators. This is because there will be factors or assumptions that influence investment decision-making when making investment decisions (A.…”

“…In traditional financial theory, namely the Efficient market hypothesis, all existing investors, in making investment decisions, are assumed to be people who behave rationally. However, behavioural finance theory argues that psychological biases can significantly influence investment decision-making (Gerlich, 2021). Investment decisions are decisions about what commodities to buy so that they can get maximum profit (Setiawan et al, 2018).…”

“…According to (Bickersteth et al, 2018) Overconfidence, an individual or organisation feels it already has a lot of knowledge and experience about something. According to (Abu Karsh, 2018), (Natan & Mahastanti, 2022), , (Shah et al, 2018) (Gerlich, 2021), (Barberis, 2018), (Khan 2020) suggests that the overconfidence variable has a positive influence on stock investment decision making. Investors who have overconfidence influence investment decisions.…”