WILL CORONAVIRUS MAKE LASTING CHANGES TO CONSUMER PSYCHOLOGY?

We are living in a different world than we were before Jan. 30, when the World Health Organization declared the coronavirus an international public health emergency. In fact, we are living in a world that is different from what it was 48 hours ago or 24 hours ago.

Accordingly, a change in consumer psychology – fear and anxiety brought on by the rapid spread of COVID-19 – is causing a run on pantry and household staples, cleaning supplies, and medicines.

Right now we are all walking around with this heightened state of mortality salience and that creates a sense of existential anxiety. While the effects are harder to predict, it does tend to make people more likely to spend in ways that support their core values and support their self-esteem or to spend in ways that they feel says something important about who they are.

In the short term, this uncertainty is a barrier to discretionary shopping in general, as well as a barrier to shopping in stores.

Longer term, it may predispose people to make choices that are based on their underlying sense of identity. So, for example, people may be more likely to choose environmentally-conscious brands in the future, a trend that we already see in our culture. And it may predispose them to indulge in more luxury purchases as significant to their self-esteem – a trend that was phasing out pre-COVID-19.

Right now consumers are in the throes of deep emotional, irrational fears. They are seeking comforting experiences that will bring them a sense of control which in turn will make them more comfortable. Buying things or having the sense of agency that comes from making consumption choices, is one way they can regain a feeling of control and greater comfort.

So they hoard household supplies, not because there is any evidence that they will actually need them, but the very act of buying them gives them comfort.

Consumption plays an important role in the lifestyle of American consumers. That won’t go away. But retailers and marketers are well advised to plan for potential long-term changes that this crisis may bring to their underlying psychology and the values that underpin their purchasing decisions. 

In 2020 e-commerce is expected to represent 12% of total retail sales, however, a change in consumer behavior in the first quarter of this year due to the coronavirus can impact the future quarters for 2020 and have a profound impact on holiday sales. As the consumer’s comfort with online shopping becomes higher and technology is more intuitive and ubiquitous, the digital side of the retail business may be stepped up at a faster rate than previous projections. To bring consumers back to stores, retailers should increase cleanliness, consider cross-promoting high-demand items and make them easy to find (quickly) on shelves.

Published by dkachiros

My purpose is simple – to identify the authentic potential in brands, discover their beautiful truth and inspire them to tap into their purpose or their raison d'être (reason for being). This is a brand’s beautiful truth. Establishing that truth opens the door for fresh approaches and ideas that are unmistakably true to brand, yet breakthrough for consumers – suited for building businesses. It’s all about shattering category conventions, finding permission for new territory and ultimately building relevance and more meaningful experiences at every moment along the journey. I pride myself on getting people to fall in love with the brand, be it for the very first time and or all over again. Feel free to reach out to me if I can help in any way. Dixie Kachiros dkachiros@gmail.com dkachiros.com 214-596-8468

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: