COVID-19 Impact on Buying Behaviour

Abstract

Executive Summary Pandemics like COVID-19 result in a disruption in the lifestyle and buying pattern of a consumer and adversely impact the global economy. Consumer purchase of country’s own brand and the products manufactured in their own country plays a vital role in the GDP of that country and help in revival of the country’s economy. This study focuses on understanding the factors that influence consumer’s buying behaviour and model these factors to understand the causal relationship using partial least square-structural equation modelling. An online survey which was carried out between 30 March 2020 and 18 April 2020. A total of 367 responses were collected during this period. Findings of the study indicate that economic nationalism, lockdown sentiments and sustainable approach (LSSA), and product-specific ethnocentric behaviour (PSEB) tendency significantly influence the willingness to buy country’s own brands and products. Present study results reveal that during pandemic consumers have realized the importance of hygiene products, environment-friendly products, regional (local) products, and satisfaction beyond shopping; these factors determine their willingness to buy Indian brands (WBIB)/made-in-India products. Further, post lockdown and post COVID era, consumers feel that buying Indian-made products and encouraging others to buy them would impact and revive the Indian economy constructively. It was also found that the influence of factors such as economic nationalism, LSSA, and PSEB on the WBIB is mediated by attitude towards foreign products. The findings of the study can aid marketing managers in planning appropriate promotion strategies to stimulate ethnocentric tendency, and cues can be provided to invoke a sense of economic nationalism in consumers when they buy products or services.