Answer to Question #278187 in Management for Abdi

Question

In Covid-19 pandemic environment, customers’ attitudes and buying behaviour are changing. Explain these changes and how does a firm adapt its product, pricing policy and promotion activities?

Answer 1

Consumer attitudes, behaviors, and purchasing habits are shifting, and many of these new behaviors will persist after the outbreak. People are shopping more consciously, buying local, and embracing internet commerce, even if their purchases are currently based on the most fundamental requirements. The COVID-19 epidemic has drastically altered our understanding of the world. People are buying differently, living differently, and thinking differently in many ways. The supply chain has been put to the test. Retailers are shutting their doors. Consumers all over the world are taking a fresh look at products and brands. In a matter of weeks, the virus is altering the consumer products industry in real time, quickly accelerating long-term underlying tendencies. Customers' values, how and where they shop, and how they live and work will all be permanently altered as a result of the new habits created during this crisis.

COVID-19 is causing widespread worry among consumers, both in terms of health and economics. People are reacting in various ways, with varying attitudes, actions, and purchasing habits. People all throughout the world are terrified as they try to adjust to a new normal. Individuals are filled with dread as they consider what this catastrophe means for them, but more importantly, what it means for their families and friends, as well as society as a whole. Consumers are reacting in a number of ways to the issue. Some people are apprehensive and scared, prompting them to buy essentials and hygiene products in a rush. On the other hand, some customers are unconcerned about the epidemic and are going about their business as normal, ignoring government and health-care professionals' advice. Companies must understand how their own customers react in order to design tailored and personalized marketing tactics for them. One-size-fits-all marketing is a thing of the past.

Consumer priorities have shifted to the most fundamental necessities, resulting in increased demand for hygiene, cleaning, and staples products, while demand for non-essential categories has decreased. As the "buy local" trend gains traction, the factors that drive brand decisions are shifting as well. New consumers are migrating online for supermarket shopping, boosting digital commerce — a trend that is likely to continue post-outbreak. In times like these, the desire for the most fundamental of human needs takes precedence. Personal health is, unsurprisingly, the top priority for the consumers we polled, followed by the health of friends and family. Other top needs are food and medical security, financial security, and personal safety.

Consumers are paying closer attention to what they're purchasing. They are attempting to reduce food waste, shop more cost-effectively, and choose more environmentally friendly products. Brands will have to make this a priority in their offering (e.g. by exploring new business models). Furthermore, consumers' desire to shop locally is mirrored in the things they purchase (e.g., locally sourced, artisanal) as well as the way they shop (e.g. supporting community stores). Companies will need to look for methods to interact with their customers on a local level, whether it's through emphasizing local origin, tailoring for local needs, or engaging in locally relevant ways.