Consumers' purchase behavior reactions: a focus on the steady devaluation of currency, compounding increase in inflation rates in Egypt

Abstract

Purpose-This study investigates consumer purchase behavior during the steady devaluation of currency, which led to increase in inflation rates in Egypt. Design/methodology/approach-This study collected and analyzed numerical data to test the causal relationships found among the research model variables. Administrated questionnaires were distributed March 2023 in cross-sectional timeframe in several visits to hypermarkets, supermarkets and grocery stores in Cairo and Alexandria, applying nonprobability sample. Structure equation model path analysis was used to test the hypotheses. Findings-This study shows compulsive buying, sense of anxiety, value shopping, attitude toward private label, attractiveness of local brands and materialistic behaviors impact consumers' acceptance of alternative brands; compulsive buying, sense of anxiety and materialistic behaviors impact the continuance of purchasing accustomed brands. Practical implications-Retailers, government and policymakers can use this study as a guide to know how consumers react during times of high prices so to provide solutions to their needs. Policymakers should take into account the findings in managing the economy. Originality/value-This study shows the effect of inflation on consumer spending to contribute to the body of knowledge in literature on the factors that influence consumer behaviors. A model was developed to frame the possible manners that might surface among consumers during times of high inflation; it reflected whether compulsive buying, sense of anxiety, value shopping, attitude toward private label, attractiveness of local brands and materialistic behaviors impact consumers acceptance of alternative brands and/or the continuance of purchasing accustomed brand.