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Article

The New Consumer Behaviour Journal of Health Management


22(2) 291–301, 2020
Paradigm amid COVID-19: © 2020 Indian Institute of
Health Management Research
Permanent or Transient?
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DOI: 10.1177/0972063420940834
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Seema Mehta1, Tanjul Saxena2 and Neetu Purohit1

Abstract
A critical situation pushes human behaviour towards different directions with some aspects of behav-
iour being irrevocable. COVID-19 pandemic is not a normal crisis, and to control the spread of disease
various measures were taken including complete and then partial lockdown. Since all elements of the
economy are intricately interrelated with public health measures and lockdown, this resulted in eco-
nomic instabilities of the nations hinting towards change in market dynamics. In every market, consum-
ers are the drivers of the market competitiveness, growth and economic integration. With economic
instability, consumers are also experiencing a transformation in behaviour, though how much of trans-
formation experienced during the crisis will sustain is a question. This article looks at the consumer
behaviour during COVID-19 crisis and in the subsequent lockdown period when the world stood still
for more than a quarter of a year. Further, the article attempts to weave through the maze of literature
available about consumer behaviour in normal times and in crisis times, strengthens it with the rapid
assessment reports culled out by the different consulting organisations during lockdown phase, sub-
stantiates the same with first-hand telling and retelling of experiences by consumers and professionals
with marketing background to bring up a hypothesis of the pandemic affecting a paradigm shift from
consumer materialism to consumer spiritualism. The proposition offers further testable hypotheses for
future research to understand consumer sentiments or requirement in buying ‘what is enough’ within
the marketing context and how it can be reinforced post-COVID crisis for ensuring sustainability of
business models. It would also be interesting to explore the correlates of this forced consumer behav-
iour with other variables such as learning from crisis, changing needs, personality, nationality, culture,
new market segment and age to develop new models of consumer behaviour.

Keywords
Consumer behaviour, spirituality, economic crisis, utility, consumption

1
IIHMR University, Jaipur, Rajasthan, India.
2
Versatile Thinkers Associates, Jaipur, Rajasthan, India.
Corresponding author:
Seema Mehta, IIHMR University, 1, Prabhu Dayal Marg, Near Sanganer Airport, Jaipur, Rajasthan 302029, India.
E-mails: seemam@iihmr.edu.in
292 Journal of Health Management 22(2)

Introduction
In the start of the last decade, Gates Notes (Gates, 2020) released an article emphasising that beyond the
immediate danger posited by the 2009 H1N1 pandemic that claimed the lives of 18,036 people, there
were larger implications in highlighting the fact that health systems were unprepared for inevitable
outbreaks in the future. The article urged for a ‘wake-up call’ for investments in capabilities, infrastructure
and human resources for health, surveillance and management of deadly epidemic outbreaks. In 2018,
following the Ebola outbreak, the Global Preparedness Monitoring Board—an organisation consisting of
notable global health officials created by the World Health Organization and World Bank—in their first
annual report examined airborne diseases such as influenza and suggested that a disease such as the
Spanish flu had the potential to spread around the globe in less than 36 hours, killing more than 50
million people. The report highlighted how the existing gaps in global preparedness would compound
the implications of a prospective pandemic extending beyond increased levels of mortality and morbidity
to destabilising national security, detrimentally impacting global economy and trade due to changing
consumption behaviour. As recently as October 2019, the World Economic Forum (WEF) in collaboration
with the Johns Hopkins Center for Health Security and the Bill & Melinda Gates Foundation hosted a
high-level simulation exercise that brought together governments, security, businesses and public health
leaders to address a hypothetical global pandemic scenario. Learning from the exercise showcased the
glaring vulnerabilities in pandemic preparedness and response across the system, and while participating
stakeholders began to incorporate the learning from the simulation, the inevitable COVID-19 occurred
and witnessed an exponential increase in the number of cases across countries (ReliefWeb, 2020).

Consumer Behaviour Approaches in Times of Crisis


A consumer is a person who identifies a need or desire, makes a purchase and then disposes of the
product in the consumption process. A typical consumer’s utility is dependent on the consumption of
agricultural and industrial goods, services, housing and wealth (Grundey, 2009). No two of them are the
same, as everyone is influenced by different internal and external factors which form the consumer
behaviour. Consumer behaviour is an important and constant decision-making process of searching,
purchasing, using, evaluating, and disposing of products and services (Valaskova et al., 2015). The
macro consumer behaviour is created by social issues, but to reach the factors of micro consumer
behaviour, individual factors (Solomon, 2016) are researched. Flatters and Willmott (2009) claim
consumers try to maximise their utility, satisfaction, or joy by purchasing consumer goods.
The approaches explaining consumer behaviour are divided into the three groups (Valaskova et al.,
2015): psychical-based on the relation between the psyche and behaviour of the consumer; sociological
approach—which is devoted to the reactions of consumers in different situations or how the behaviour
is influenced by various social occasions, social leaders; and economic approach—grounded on basic
knowledge of micro economy in which consumers define their requirements. Subsequently, the consumer
interests are confronted and traded on the market. After liberalisation in India, consumer behavioural
pattern has been explained by such approaches in the borderless globalised world, while defeating
individual identity and giving rise to collective identity through brand culture. The intermittent waves of
‘Swadeshi’ and ‘back to basics’ propagated by social leaders like Baba Ramdev or Gandhian minimalistic
lifestyle also emerged as a behavioural approach. The sociological approach of behaviour is also
harvested which is adopted by the affluent class as a natural wholeness to self-actualisation. Many lower
socio-economic rung consumers too yielded to elitist appeals of material symbols to showcase themselves
Mehta et al. 293

in higher rungs under economic approach to consumer behaviour. Amalia et al. (2012) in their study
explained that people are not the same and not all the people have the same perception about a situation
with negative effects like economic or any other crisis. In crisis times, new trends in consumer behaviour
emerge. The most important factors which model the consumer’s behaviour in crisis are risk attitude and
risk perception. Risk attitude reflects consumer’s interpretation concerning to the risk content and how
much he or she dislikes the content of that risk. Risk perception reflects the interpretation of the consumer
of the chance of being exposed to the risk content. Hoon Ang et al. (2001) in his work discussed that
these changes in consumption behaviour arising from an economic crisis may be moderated by personality
characteristics too. These characteristics of personality include dimensions like the degree to which
consumers are risk averse, value conscious and materialistic. Earlier studies were indicative of
behavioural changes among consumer in times of crises with significant change in utility pattern. A
study conducted by Flatters and Willmott (2009) identified few new trends during crisis which include
simplification of demand because of limited offers during crisis which tends to continue post-crisis
where people buy simpler offering with great value. The study also reported that even the rich people,
post-crisis expressed dissatisfaction with excess consumption and focused on recycle and teach their
children simple and traditional values. Flatters and Willmott (2009) in their study proved that the impact
of the recession on consumer attitudes and trends is critical. Some trends are advanced by the recession,
while others are slowed or completely arrested. The most central trends in crisis include the demand for
simplicity, which indicates that consumers seek uncomplicated, value-oriented products and services
that simplify their lives and focus on the enactment of a company where consumers are outraged by the
unlawful conduct and unethical company behaviour. The change in consumer behaviour during crisis
times led authors’ interest to explore consumer behaviour during COVID-19.

Method of Research
Through an analysis of relevant published surveys during COVID-19 and an in-depth discussion with
few marketing professionals and consumers, this article has analysed main changes in consumer
behaviour caused by the COVID-19 and subsequent lockdown period. Further literature was also
explored to find out the reasons of these behavioural changes in consumer decision-making process in
times of crisis.

Market Dynamics During COVID-19


This pandemic has a serious impact on the economies of the nation hinting towards change in market
dynamics. Abe (2020) in her report on ‘Market Trends and D2C Opportunities in the COVID-19’
observed trends such as from people raiding grocery store walkways to the cancellation of the world’s
most significant events and mandates for ‘non-essential’ businesses to be temporarily closed to prevent
spread of infection. During the pandemic, people are spending less of their income on items perceived as
nice-to-have or non-essential (such as clothing, shoes, make-up, jewellery, games and electronics).
Globally too, during COVID-19, the developed nations are shifting towards steady state purchasing
post-stock piling as per iRi POS data (2020). The report also stated edible products are expected to have
an increased demand and non-edible products shall have a moderate need globally, thereby decreased
demand which includes homecare, cosmetics and personal care products. A survey on Indian consumer
294 Journal of Health Management 22(2)

sentiments during corona virus crisis was carried out by Mckinsey from 1–4 May 2020. The result
indicated that 76 per cent of consumer out of the sample strongly agreed to spend their money carefully
and cut back on their purchase (Figure 1).
Mckinseyconsumer-sentiment-during-the-coronavirus-crisis).
Beside change in spending pattern, substantial fall in sales of different sectors in India has been
noticed during COVID-19 as per Boston Consulting Group report (2020) on market dynamics. Figure 2
indicates meaningful differences in spending specifically. Lower-income and younger consumers show
a higher propensity to plan to reduce their spending, while older and higher-income groups exhibit more
resilience and are more likely to expect to maintain or increase their spending.

Figure 1. Indian Consumer Changing Sentiments Towards Spending During Corona Virus Crisis
Source: McKinsey (2020, https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-indian-

Figure 2. Sentiment Across Different Segments and Product Categories (India)


Source: Koslow and Lee (2020a), Week 4, 23–26 March 2020.
Mehta et al. 295

Table 1. Percentage of People Planning to Defer Purchases due to Coronavirus Outbreak in Different Sector
Items of Purchase %
Vacation/holiday 77
Automobiles 64
White goods 63
Luxury items 63
Home decorations 62
Real estate 61
Apparels 60
Insurance products 53
Investment schemes 46
Source: Kantar (2020).

A noticeable change in consumer’s attitudes, behaviours and expectations has also been conveyed by
research agency Kantar in their report on ‘Market Dynamics During COVID- 19: Indian Consumer
Sentiments Analysis’ (2020). This survey was carried out with 18+ years of consumers, covering a
sample of 11,000 household, 19 cities and 15 states across India. Consumers conveyed heavy concern
about pandemic and observed that disruption (45% of respondent) bothers them more than health
concerns (31%). The survey also reported significantly reduced spends across physical as well as online
formats. Survey also reported about planned purchases being deferred and a new learning to live with
less. The survey points out the consumers’ interest in saving through investments, insurance, health and
hygiene product (Table 1).
While writing on potential impact of COVID-19 on Indian economy, a report of KPMG (2020a)
stated that this economic elastic behaviour with reference to spending was also shown during previous
epidemics with increased attention of consumers on price, origin of the products and utility-based
consumption or curtailed consumption. During the previous outbreaks such as SARS, MERS and other
natural disasters, consumers displayed economic elastic behaviour (Figure 3), in form of rapid, steady or
slow recovery of market. A part of this behaviour is permanent and brings in structural changes in the
way we live, work and take buying decisions. Accenture consumer research (2020), conducted between
2–6 April also reported that during this COVID-19 outbreak, a rise in consumer’s concern has led to
change in priorities of consumers which is now centred around most basic needs, sending demand only
for hygiene, cleaning and staples products, while non-essential categories slump. The desire to shop
local is also reflected in the products which consumer buy and the way they buy to support local stores
as they consider them more sustainable option.
As the community will move beyond the survival mode, some of these changes in spending behaviour
will not be retained, while some others could be permanent as reported by few research agencies. For
example, besides a change in spending pattern, greater use of ecommerce touch points for shopping as
various digital platforms—namely official site of products, social media and mobile platforms—has
been used by consumers during the pandemic which had led to the digitalisation in buying, and this
digitalisation of consumer shopping journey will increase with weaker presence of traditional outdoor
advertisement and shopping malls visit due to physical distancing rules. These technology platforms are
expected to play a strong role in terms of reaching, creating awareness, transaction and retention of
consumers post-COVID along with word of mouth (Deloitte, 2020; Figure 4). This trend is reflected in
the types of apps that consumers are downloading, related to entertainment, news, healthcare and
education as reported by (Accenture, 2020).
296 Journal of Health Management 22(2)

Figure 3. Showing Economic Elastic Behaviour During Previous Epidemics


Source: https://home.kpmg/content/dam/kpmg/in/pdf/2020/04/potential-impact-of-covid-19-on-the-indian-economy.pdf, 2020

Figure 4. Changes in Consumer Shopping Journey Before, During and After the Pandemic
Source: Deloitte (2020).

In times like these, our need for the necessities of life takes precedence indicating few major shifts in
customer behaviour. For instance, markets are experiencing shifting of consumers’ priorities as they
deprioritise buying nice-to-have items and curtailing consumption except for groceries and at-home
Mehta et al. 297

entertainment (‘McKinsey Survey Data Second Week of Lockdown: Indian Consumer Sentiment During the
Coronavirus Crisis’ 2020). Consumers also expect advertising to help navigate the new normal with a
positive perspective (Kantar, 2020; Figure 5). Indian consumers too have adopted new behaviours with a
comparatively higher level of optimism in comparison to European nations. It is also important to notice that
top concerns of Indian consumers were personal, family safety and overall public health (McKinsey, 2020).

Figure 5. Concern of Indian Population Related to COVID-19


Source: McKinsey (2020).

As mentioned above, a cluster of surveys has tracked consumer sentiments during COVID-19 and
reported about the transformation in consumer behaviour and indicated towards consumer behaviour
models taking a different shape. Understanding of new models will have a great role to play in successes
and failures of dozens of firms, post-COVID-19 scenario. The nature of this crisis has brought to the
surface the disadvantage of trade dependencies for essential items, market complexity and has ruthlessly
exposed the materialistic culture of buying behaviour which was not necessarily need-induced. Consumer
behaviour has taken on a new definition during the inevitable challenge of the COVID-19 pandemic.
This, in turn, is posing a challenge to the businesses for bringing strategic changes for sustainability and
to rethink about the existing consumer behaviour models and their usefulness for businesses and
marketing strategies to remain viable across consumer segments.

Spiritual Approach of Consumerism: The ‘Next Normal’ of Consumer


Behaviour
Aforementioned behavioural approaches have ruled the market dynamics in the last three decades till
COVID-19 knocked at homes and locked us all in. Kotler and Keller (2012) stated that a good understanding
of customers’ lives is crucial to ensuring that the most appropriate products and services are being marketed
to the right people in the most effective way possible. During these lockdown phases with no mobility and
298 Journal of Health Management 22(2)

only digital media to connect, authors’ in-depth discussion with marketing professionals of different sectors
has led to an understanding that suddenness and universality of lockdown has changed the behavioural
dynamics of consumers and has redefined the social spheres and individual orientation. Marketing
professionals also viewed their opinion about new order of demand and supply coupled with uncertainty
forcing consumption rolled back to Maslow’s primary level needs, that is, need for ‘food’, ‘clothes’,
‘shelter’, safe indoors, social love and belongingness for all socio-economic classes alike, irrespective of
segment type. The socio-economic pyramid crumpled and flattened pushing everyone to survive based on
essential requirements, inflected by a behavioural driver ‘health and healthy choices’ as rightly said in
Vedas, that is, ‘health is wealth’. During Vedic period also ‘health as wealth’ played a very significant role
at individual as well as at national level. Health, well-being and food were recognised as the chief essentials
for the happiness of family and society in those times. The economic policies were also framed and adjusted
according to social conditions, ethical values, health and spiritual views (Dwivedi, 2016). The discussion
with professionals indicated that external and internal drivers of consumer behaviour such as personality
type, brand image, status, self and self-concept which earlier used to be prominent drivers have become
inconspicuous during lockdown days. Further, discussion with consumers specified that economic order
quantity of only essential products is the new driver in behaviour followed by recycle and reuse of products,
as the households have become small consumer unit of production, consumption, co-creation and
cooperation. The consumers also opined about a shift from patronising bigger organised brands to smaller
near-home retail kirana (retail) stores, who showed solidarity in times of need, going beyond the call of
duty to ensure essentials are delivered in safe and hygienic ways. The consumers submitted that COVID-19
shock has created a new or revived a behavioural understanding of buying, indicating a conscious shift
towards spiritual consumption. In view of the loss of work and shortage of regular income, the age-old
principle of spending within limits was recalled. The mythological wisdom ingrained in sayings and
proverbs like jitni chaadar ho ootne paanv pasaro (live within your means or capacity) is revived with a
supposition that this will be the next practice and will certainly breed new fertile grounds for new life order.
The palatial infrastructure of corporate offices, universities, schools shrunk to 8-inch screens and the
importance of farming, supply chain and effective governance has re-featured as heroes of consumption. As
reported above, consumers expressed a sentiment about optimism and current possessions not only enough
but more than what could be consumed reinforcing the old philosophy of ‘santosh is param dharam (what
we have is enough).
According to marketing professionals, the traces of new marketing models started emerging, for
example, online ready-to-eat food-delivery companies immediately switching overnight to delivering
essentials such as fruits, vegetables and groceries. Companies are banding together in multilateral
collaborations, some formal and some informal, to advance innovation. For example, more than 15
pharma companies are collaborating in a COVID-19 R&D forum to advance, individually and
collectively, the most promising drugs and vaccines; and decades-long competitors Sanofi and GSK are
partnering on COVID-19 vaccine development. To maximise economic recovery while protecting public
health, decisions about which measures to deploy, when and where, are made locally at district-by-
district indicating a shift from globalisation to localised models with a boost to local retailers and new
ways of communication such as mobile messaging to local stores.
These dimensions of behaviour in times of crisis have also been reported in literature. Kelemen and
Peltonen (2005) have named it as consumer spirituality and defined it as the interrelated practices and
processes that people engage in when consuming market offerings (products, services, places) that yield
‘spiritual utility’ (Kale, 2004, 2006, p. 109). Consumer spirituality is the intrinsic motivation to seek and
express autonomy, inner satisfaction and self-actualisation, maintain harmonious and sacred relationship
with others, and desire sacredness in products, services and experiences. The concept of spiritual
Mehta et al. 299

consumption and its relationship with consumer behaviour in time of crisis has been introduced in the
literature of marketing by Sheth et al. (2011). Philip Kotler (2019), in his commentary entitled ‘The
Market for Transformation’, also describes that in modern times consumers are increasingly looking for
hope, remedies and anchors that can alter a consumer’s persona (body/mind) and they see value in being
transformed. Thich (2019), in his commentary on ‘A Buddhist Approach to Consumption’ also elucidated
about this spiritual dimension of behaviour in which consumers break the habitual ways in which they
consume and begin to see that they do not need even one more thing. Based on his explanation, this new
consumer behaviour lies in experiences and impressions via our senses and consciousness. Literature
and an in-depth discussion exhibited that what Indian consumers have shown during the lockdown may
be irreversible adjustment in behaviour and will be considered as best practice of consumption.
The consumers will be financially impacted with a new twist which has healthcare, personal health
and well-being concern. It may offer a new motivation for long-term behaviour change, suggestive of a
new segment of migrated consumers who with a new value of ‘save and stockpile’ and change in their
buying habits will become more frugal. The studies of Asian cultures’ values have explicitly recognised
the role that frugality plays as a guiding principle underlying consumers’ behaviour (e.g., Anderson &
Wadkins, 1991). COVID-19 has highlighted the importance of frugality and the associated need to better
understand frugal consumers to understand behaviour of non-consumption as well as actual consumption.
Lastovicka et al. (1999) offer a conceptual definition of frugality as ‘a unidimensional consumer lifestyle
trait characterised by the degree to which consumers are both restrained in acquiring and in resourcefully
using economic goods and services to achieve longer term goals’. It is relevant to the study of consumer
behaviour, as it advocates the notion that achieving long-term consumption goals will, for most
consumers, occur only through the denial of short-term whims and the resourceful use of extant resources.
The parallel move towards frugality is what some have termed as ‘voluntary simplicity’ which shares
some commonalities with frugality and is generally depicted as ‘both a system of beliefs and a practice,
centred on the idea that personal satisfaction, fulfilment and happiness result from a commitment to the
nonmaterial aspects of life’ (Zavestoski, 2002), though in previous literature raising the notion of
frugality and simplicity seemed ‘wildly out of place’ Gardels (2000, 2002). Marketers need to respond
to the apparent growth in people adopting either a frugal and or very simple lifestyle by encouraging
consumers to buy what they really need rather than unnecessarily buying, keeping in mind that this
behaviour is not a form of poverty or opting for difficult life, but responsible buying. It could develop
out of necessity and resource constraint as in COVID-19, but should capture the attention of marketing
academics. Frugality is not to decrease the price but to develop sustainability from acquisition to disposal
via new innovative measures for reaching out to the masses. For small firms, the time to act is now to
gain attention, convince new customers of their value and turn nascent purchasing into a habitual buying.
In many ways, COVID-19 has levelled the competitive landscape for smaller brands as they can establish
new habits or return to précises shopping routines by focusing on these behaviours.
COVID-19 has pulled the handbrake for the humankind race to destruction and redirected attention to
life and living. The common man, now a term shared by almost all equally, has started to think anew
what kind of future they want, if they survive this pandemic. This cumulative thought will be the trigger
thread for the marketing world to redefine, strategise and reshape not only their offerings but also ways
of reaching out to customers. For instance, this situation is a ground zero to start all over again and rewire
and realign the present conscious young generation to new life principles rooted in the traditional Indian
practices where humans were a part of ecosystem and not superior to the mother nature. It presents a
great opportunity for marketer to create awareness among critical mass for orbit shifting acceleration
pointing towards organic living with the help of their products and services. The next normal in consumer
behaviour may likely be explored on dimensions mentioned below in reshaping of market:
300 Journal of Health Management 22(2)

1. rethinking about considering spiritual approach in understanding consumer behaviour with keeping
drivers such as economies of consumption, saving and health in mind;
2. mobilisation of resources at speed and scale as central focal point of business to respond to the
behaviour changes of consumers;
3. rewiring COVID generation: opportunity to realign the present conscious young generation to new
life principles and build a new segment of consumers; and
4. create new product or service stories to present to conscious generation.

Future Research Directions


The community of marketing scholars needs to urgently comprehend and research the role of spirituality
in modern consumption. This article is a starting point to understand consumer sentiments or requirement
in buying ‘what is enough’ within the marketing context and how it can be reinforced post-COVID crisis
for ensuring sustainability of business models. Scholars are encouraged to debate on the merits and
drawbacks of this consumer behaviour. It would be interesting to explore the correlates of this forced
consumer behaviour with other variables such as learning from crisis, simplicity, changing needs,
personality, nationality, culture, frugal behaviour and age. Further other interesting issues like ‘will this
spiritual dimension of consumer behaviour sustain or decrease post-COVID-19 scenario’ will be helpful
to explore the possibilities of new segments exhibiting new behaviour. Critical to this discourse will be
a commitment to avoid the spirituality/religion controversy when it comes to definitions of spirituality
in consumerism in both qualitative and quantitative researches to fully comprehend this phenomenon
and to explain its dynamics in the marketplace post-COVID crisis. This can offer the post-COVID
universe a spiritual consumption model that brings back the rich cultural heritage of consumption
practices designed around not the theories in textbooks but around philosophies of coexisting with
mother nature.

Declaration of Conflicting Interests


The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of
this article.

Funding
The authors received no financial support for the research, authorship and/or publication of this article.

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