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UNDERSTANDING THE CONSUMER BUYING BEHAVIOUR TOWARDS ONLINE


BUYING FOR ESSENTIAL GOODS DURING COVID OUTBREAK

Conference Paper · October 2020

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UNDERSTANDING THE CONSUMER BUYING BEHAVIOUR


TOWARDS ONLINE BUYING FOR ESSENTIAL GOODS
DURING COVID OUTBREAK
Mr. Parth Sanjay Salunke*
Ms. Tanaya Joshi**
Mr. Anand Bhoir***

The consumers in pandemic 2020 have focused towards their health, hygiene and basic needs
and markets are global rather than fragmented in the COVID scenario. Consumers are trying to
change their ways of living and dependence on digital platforms have increased to maintain social
distancing norms and fear of getting infected with the deadly virus. This research paper tries to
understand the consumer perceptions towards online buying in the COVID scenario for essential
goods and their usage of online platforms. It further tries to understand their buying behaviour and
reasons for buying from online platforms during the phase of pandemic. The research paper overall
focuses on impact of COVID-19 towards consumer buying behaviour shifting towards online buying
for essential goods.
Keywords: Consumer, Online Buying, Pandemic, Goods, Behaviour

INTRODUCTION With lockdown measures the buying of essential


items was also necessary for the consumers
The pandemic 2020 has impacted the
during the pandemic 2020 to sustain a healthy
nations worldwide restricting the movements of
living, in a way the consumers buying behaviour
people to cease the spread of corona virus and
patterns were also different with focus on buying
has remodelled the regular schedules of people
across the nation. The restrictions were imposed the basic goods. The consumer buying behaviour
is a modelled approach which studies the pattern
by the government and the reactions of
of groups, individuals in regards to their
consumers were different with financial
acquisition, buying, consumption and disposition
constraints faced by many. The consumers of
of goods which even includes their attitudes,
India have avoided leaving their homes, avoided
behaviours, preferences, lifestyle and their
public places and transportation, maintaining
consumption pattern, etc. With any situation
social distancing norms, concerned about the
coming before the consumer it impacts their
economy and worried about their health, etc.
buying behaviour as the consumers are with their
*MMS Student, University of Mumbai‘s – Alkesh Dinesh Mody Institute For Financial and Management Studies, Mumbai, Maharashtra
**MMS Student, University of Mumbai‘s – Alkesh Dinesh Mody Institute For Financial and Management Studies, Mumbai, Maharashtra
***MMS Student, University of Mumbai‘s – Alkesh Dinesh Mody Institute For Financial and Management Studies, Mumbai, Maharashtra
183
own variety of responses like their sentiments, of Accenture also stated that the digital influence
their thought process and their responses towards of buying for groceries was also increased during
their observations in regards to purchasing the COVID-19.
decision. The consumer buying behaviour was The consumers were offered with variety
also changed during the pandemic as basic needs of choices on various platforms for buying the
for hygiene and health became centred and essential items and the essential goods can
depending on online platforms for buying broadly divided into four categories: 1) Groceries
essential goods came into existence to maintain 2) Readymade food Products 3) Personal Care
social distancing and fear of getting the corona and 4) Health and Hygiene Products. The various
virus. As per the reports of Alibaba grocery online platforms for buying available for
outlet the orders for grocery items increased four
essential goods are Grofers, Amazon fresh, Big
times which was higher than the normal buying Basket, Reliance Fresh, Med Life, PharmEasy,
and the baby boomer‘s generation was seen more NetMeds etc. The various online platforms came
active than in the spring festival. The retailer in with variety of schemes to ensure the consumer
china as per the data of Miss Fresh outlet stated buying through digital platforms. The Amul
that the age group of 40 years and above has industry stated that the demand for the packed
ordered online for essential goods and 237% rise food items was increased during the lockdown
of online buying was seen during COVID-19. and their E commerce sale was more than
Understanding the consumer buying doubled during the lockdown. The farm to fork
behaviour is very important and thus the model came into existence by becoming
consumers are influenced by their groups, needs, successful in the lockdown as farmers groups
emotions, values, personalities, income, were getting fresh vegetables to the doorstep of
information processing, the ongoing regulatory consumer and selling through online platforms as
and government policies and overall, the impact well. Zomato the readymade food delivery E
of marketing strategies on consumers. According commerce platforms made the grocery services
to the data of channelAdvisor and Dynata (A live across more than 80 countries in India. One
research firm) it was seen that the consumers of the online groceries selling platform Grofers
were shopping online in continual pattern in introduced the ‗Society Group Orders‘, a service
COVID was 42% of the respondents including through which it has partnered with RWA‘s
the maximum age group from 36 years and across leading metro cities to make the essentials
above, it was also seen in US that 36% of available to more consumers. Business to
consumers were regularly buying the essential Business model of start-up Jumbotail initiated
goods online with luxury items as well. (Coker, with a service of picking up the stocks available
EssentialRetail,2020). The work from home from the distributors of FMCG companies and
environment has been boasted upon employees started delivering to the local Kirana Stores. The
of different organisations and the job security wholesale Retailer D-Mart which has over 200
and fear of health is seen at higher rate with 64% stores across the country has launched a service
worried for the same. (Accenture report, 2020). of ―Store on Wheels‖ – a model which will make
The term of New Normal has been coined and available their essential grocery items to
the demand for personal health and hygiene was consumers though trucks to the residential
the top priority changing the consumer buying societies. The Marico – A FMCG Firm has
behaviour during the pandemic 2020. The report partnered with Swiggy and Zomato for essential
184
products to be home delivered. The Marico  Availability of products in global market.
personal care products and health and hygiene
 Effective supply chain of products.
products were also available through online
platforms.  By offering a discount on online buying.
The pandemic has brought lots of  Bringing Click and Collect system.
challenges, issues and problems but there is need
for cocreation with more agile and versatile LITERATURE REVIEW
approach of producers and consumers in the The study was focused mainly on how the
economy. The consumer buying behaviour is buying behaviour of consumers change during
attached with their sentiments in regards to their economic crises. He has classified the consumers
optimistic nature and their needs towards digital on the basis of 2 factors, i.e., risk attitude and
experience may take a boom in the pandemic risk perception. They also segment the
phase. The consumer‘s attitudes are moving consumers into various types for instance, the
towards a sustainability approach into three level prudent customers who plan their spending
– Individual, Community and Society level as carefully, panicked consumers who avoid the
they are looking for products as per their basic risks and are not loyal to a specific brand but
needs while they keeping extra inventory of only to the best price. Author asserts that there
essential items at their home. The demand for are certain trends in shopping online during
products that are concerned towards safety and economic crisis situation. People prefer valued
hygiene appeals will be more compared to the goods and goods which gives them great offers
luxury items. As per the Nielsen India report the in best price. People keep their primary focus on
food category demand have increased from 7% savings due to uncertainty of the situation.
to 10% and remarked that the demand for (Sharma, Sonawalkar, 2013)
essential goods will be more strapping due to
The study investigated the impact of an
panic buying behaviour of consumers.
epidemic outbreak on the expenditures made by
(Bloombergquint.com, 2020). The consumer
the consumers and how they alter their behaviour
buying behaviour for essential goods buying
to mitigate the risk of being infected. The
online in a nutshell depends upon awareness of
research focused on how the expenditures made
online platforms, availability of essential goods,
by the consumers is disrupted due to crisis
the social acceptance, experience of peer groups,
situation and also discusses about how there is a
communication received from brands, access to
major shift to online shopping rather than street
internet facilities and perceptions of consumers
shopping due to the obvious risks of infections.
towards online buying in pandemic phase.
It also enunciates how the customers cut their
Producers can influence the consumers spending on luxury and recreation items during
through following points in pandemic 2020: the epidemic outbreak and maintain constant
spending patterns towards groceries or to say,
 Products focused on healthy lifestyle. necessary and essential items. It further stated
 Redefining the marketing strategies. that policy interventions and amending the
strategies for marketing can be helpful for the
 Digital Presence of products.
companies to prosper, despite the challenging
 Staying connected with consumers. situation. (Jung, Park, Hong, Hyun, 2016)
185
The researcher pointed out that due to the pricing and refund policies and various ways
lockdown, businesses like retail sectors and to help their consumers through this crisis.
many marketers are finding various platforms to Digitalizing the operations can pose
continue their business and cater to consumers. advantageous to the companies to bring the
The prices of essential goods have increased due customers closer. Due to the challenge of social
to the current situation as marketers are taking distancing, contact less deliveries are the new
advantage of the situation and the poor idea that needs to be adopted and implemented.
population is affected due to this. Customers Marketers will have to rethink about the ways in
aren‘t fully satisfied due to delay in online which they can build a strong relationship with
deliveries on account of lockdown. Researcher their customers which will last beyond the
also stated that online shopping is affected COVID-19 crises. (Economic Times, Narula,
because of the fear of delivery persons getting 2020)
infected by the virus. Due to the social distancing
norm, people are rapidly moving towards online RESEARCH METHODOLOGY
platforms to fulfil their needs. The marketers The pandemic 2020 has seen a shift
should devise hygiene measures, so that towards New Normal and consumers are worried
consumers trust the brand and remain loyal. about their health and hygiene with their buying
(Sucharita, 2020). behaviour more focused towards essential goods
The author points out on how a huge like medicines, groceries & some personal care
number of people suddenly jumped to online products. This research paper tries to understand
shopping due to the fear of infection and also due the consumer buying behaviour towards online
to social distancing norm. He discovered that platforms. The study is based on descriptive
Indian consumers are more cost conscious and research design and the primary survey was
prefer to purchase daily requirements from local conducted by circulating the google forms and
shops. After observing this behaviour, author the responses were received from Mumbai, Pune
states that online shopping platforms should and Surat regions. The questionnaire had the
come up with discounts and various other ideas combination of both open ended and close ended
to lure the customers for shopping online. questions with targeted sample size of 300
Researcher points out that Indian people are respondents but only 274 respondents were
more inclined towards local manufactured received. The secondary data from various
products (Make in India) rather than foreign or newspaper articles was referred. The study is
imported products. Author also pointed out the based on the primary research as structured
fact that during the pandemic, customers are questionnaire was circulated for data collection.
more focused in purchasing essential items like
medicines and groceries rather than luxury RESEARCH OBJECTIVES
goods. (Sharma,2020)  To understand the perceptions of the
The Article elucidates that during the consumers towards online buying platforms
crisis situation, customer‘s interest should be the in regards to essential products during
prime responsibility, as it can create brand pandemic.
image, customer loyalty and generate trust
amongst them. Companies can think of changing

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 To understand buying behaviour of
consumers towards online buying of
essential goods due to COVID-19.
 To test the awareness of online platforms
available for shopping of essential goods

ANALYSIS AND INTERPRETATION


Descriptive Analysis
 49.6% were Males and 48.5% were Females.
 68.2% were in the age group of 21-25 years, Interpretation: Due to sudden outbreak of
24.8% were below 20 years of age, 4% were COVID-19, e-commerce platforms saw a surge
from the age group of 26-30 years and the in their activities as people actively resorted to
rest 3% were from the age group of 31-35 online buying. 70.8% of the respondents have
years. purchased essential goods from online platforms
mainly due to COVID outbreak.
 32.1% of the population were had a monthly
income of below 20,000 rupees, 28.5% were 2) Select the essential products that you
from the income group of 20,001 to 40,000 purchased online during a pandemic?
rupees, 15% were from the income group of
40,001 to 60,000 rupees, 12.8% had monthly
income between 60,001 to 80,000 rupees
and the rest 11.7% had a monthly income of
above 80,001.
 74% of the population used online payment
methods while making payment of the goods
purchased online. The rest 26% preferred
offline payments.
 65% of the population purchased essential Interpretation: Groceries and Hygiene products
items monthly, 28% purchased weekly and were given preference over luxury products
7% purchased the essential items daily. during the pandemic. 60.9% of the population
purchased groceries and 59.5% purchased
INFERENTIAL ANALYSIS hygiene products online, while 31% of the
population purchased clothing apparels and
1) You have purchased essential goods from
16.8% purchased ready-made food items from
online platforms mainly on account of
various online platforms.
COVID outbreak.
3) Select the reasons for buying essential items
online due to pandemic?

187
also due to trust and hygiene maintenance issues.
35% respondents will be ready to shift the
platforms due to scarcity of products, 17%
claimed to be loyal to their daily online platforms
and 48% respondents were still confused.
5) Due to unforeseen contingencies that the
pandemic may cause, you have purchased
essential goods above your normal
requirement
Interpretation: Due to COVID-19
lockdown and social distancing norm, people
resorted to online buying of products that
otherwise were bought from local stores. 63.1%
agreed to have bought essentials online due to
social distancing norms, 55.1% responded with
delivery at the doorstep, 50% respondents
purchased goods online due the products being
untouched and hygienic, 30.7% respondents
found it convenient and flexible, 20.1%
respondents purchased essential goods online due
to the discounts offered, 19% shopped online due Interpretation: Many people were seen
to return policy made available to them and to be stocking the products above their
17.5% bought items online due to the click and requirements due to the volatile nature of the
collect system. pandemic. 62% of the people agreed to have
4) Due to the scarcity of products on one online purchased essential goods above their normal
platform, will you suddenly shift to another requirements.
platform for buying essential goods? 6) I realized in the pandemic phase that the
quality of essential goods purchased through
online platforms is similar to offline
purchasing.

Interpretation: Hygiene and health were


the most important things to be maintained
during the pandemic to avoid infection. People Interpretation: It was observed that the
were seen shifting their online platforms due to quality of the products purchased online was
scarcity of goods on their preferred platforms and similar to when purchased offline from local
188
shops. 67.9% of the population surveyed agreed local stores as you fear of increasing the chances
to the fact that the quality of items purchased of getting infected.
online was similar to offline products.
7) The social media advertisements influenced
you to buy essential items online?

Interpretation: Social media has a great Interpretation: Due to lockdown announced in


influence on the buying behavior of the the state, as well as due to social distancing,
consumer. People tend to purchase products from many people preferred shopping online even if
various platforms when they see the the prices were a bit too high than local stores,
advertisements on social media platforms like, due to the fear of getting infected. 67.16%
Instagram, Facebook, YouTube etc. 68.9% of respondents agreed to prefer to buy products
respondents agreed to have been influenced by online at higher prices than visiting the stores
social media advertisements to purchase the and increasing the risk of infection.
products online. 10) From which platform do you shop your
8) I found that there are more varieties of goods groceries?
available on online platforms than in local
shops during pandemic.

Interpretation: It is a known fact that we find Interpretation: Many platforms are available to
more variety of products on online platforms people to purchase groceries online. 33% prefer
rather than in local shops. 71% respondents Amazon Fresh when buying groceries, 28%
agreed to the statement while 7% denied and prefer Big Basket, 17% prefer Reliance Fresh,
22% were still confused. 10% purchased from Grofers, 3% prefer Nature‘s
Basket, 2% shopped from Flipkart and 7%
9) You will prefer buying essential goods
preferred platforms other than those mentioned.
online even at high prices rather than visiting the

189
11) From which platform do you shop your
personal care items?

Interpretation: There is a fear of getting


infected racing in the minds of the people due to
Interpretation: Personal care is of utmost the outbreak of COVID-19. People fear
importance during pandemic. To buy personal venturing out of their house and prefer ordering
hygiene products, 41% respondents preferred essential items from online platforms. We can
Amazon, 35% chose Flipkart, 13% purchased already see exponential growth of e-commerce
from Myntra, 7% preferred Nyka and the rest 4% platforms due to health, hygiene issues and also
bought from other platforms. due to social distancing norms. Post COVID
situation would be highly volatile and therefore
12) From which platform do you shop your 60% of the respondents will prefer to use digital
medicinal items? platforms for shopping essential goods post
COVID-19, 32% were still unclear about it and
8% denied using online platforms post COVID.

CONCLUSION
The pandemic situation has impacted the
consumers and influenced them to buy through
online platforms and the awareness of online
platforms was seen among the consumers. The
consumer buying behaviour can be referred as
the differences in buying preferences of the
Interpretation: Medicinal items were one of the consumers, purchasing power, varieties of
essential items which were sought out the most products available reflect their values and
during pandemic. Out of the population overall, the external factors like social, culture,
surveyed, 29% purchased medicinal products family and economics influence their buying
from PharmEasy, 26% preferred MedLife and behaviour with internal factors like motives,
23% people purchased from NetMeds. attitudes, needs, perceptions and personality etc.
It can be concluded that the consumers have
13) Will you continue to use digital platforms to purchased the essential goods mainly on account
shop for essential items post-COVID -19? of COVID-19. The consumers were focused on
buying the essential goods like health and
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door step is most preferred by the consumers in complete Lockdown startng March 25.
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