Evaluating the Economic Impact of Changes in Consumer Behavior

Abstract

Consumer behavior refers to the methodology used by individuals or organizations when purchasing, using, and disposing of a product or service. Consumer behavior is dependent on five main factors. Those five factors are psychological, social, cultural, personal, and economic influence. Consumer behavior allows producers to determine how to fix or enhance their product to meet the needs of the basic consumer. Marketers primarily study consumer behavior with the idea of understanding consumer thinking when the consumer is purchasing the product. Marketers can then use this information to make advertisements specifically targeted to a common demographic, also known as market segmentation, which then results in more interest built up in this specific consumer base.  As mentioned before, consumer behavior relies on the psychological makeup of the person. A consumer generally makes the decision to buy a product by thinking about their need for the product and if they can purchase the product. In a stable economy, consumers have the confidence to buy a product because they have the means to do so. But what if that were to change in the time of crisis? In this paper, my research will talk about how consumer behavior has altered throughout the pandemic and the impact the pandemic has had not just on the economy but the consumer itself.