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The Impact of COVID-19 on Consumers behavior in India

Article · December 2020

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Sambodhi Journal ISSN: 2249-6661
(UGC Care Journal) Vol-45, No.-3, October - December (2020)

The Impact of COVID-19 on Consumers behavior in India

1
Dr.P.Rajeswari & 2Dr. C.Vijai
Assistant Professor of Commerce, ADM College for Women (Autonomous), Nagapattinam
Prajeswari0706@gmail.com
Department of Commerce, St.Peter’s Institute of Higher Education and Research,
India.vijaialvar@gmail.com
Abstract
The COVID-19 pandemic has fundamentally changed the world. The present study is an attempt to identify the
consumer buying behavior during the COVID -19 special references to Coimbatore city. The primary data were collected
through structured questionnaire from 315 respondents using Google form. The data collected for the study have been edited by
the researcher and analyzed with the help of SPSS. For the purpose of analysis suitable mathematical and statistical techniques
such as percentages, mean, chi-square test, and T test have been used.A chi-square test was used to investigate the level of
association among variables at the significance level of p<0.05.The finding of the study indicated that the consumer buying
behavior fundamentally changed and consumer are spending more money on fruits and vegetables, the pandemic changed on
brand preference and COVID 19 changed the consumer buying behavior.
Key Words: COVID-19, Consumer behavior, hygiene habits,Online Shopping, Essential goods, online payment, Brand
Preference, Consumer Index.
Introduction
The COVID-19 pandemic has fundamentally changed the world as we know it. People are living differently, buying
differently and in many ways, thinking differently.(www.accenture.com) The current crisis is affecting the brand and category
preferences, shopping behavior and spends.(www.inmobi.com/blog) During this pandemic period, most of the consumers have
adopted the digital way of living therefore there is an increase in digital penetration in the nation
(https://community.nasscom.in)The COVID-19 pandemic and the lockdown and social distancing mandates have disrupted the
consumer habits of buying as well as shopping. Consumers are learning to improvise and learn new habits (Sheth, J. 2020)
Review of literature
Debnath, S.(2020) The data reflects after evaluation that the male respondents having monthly income ranged from 0
to 30,000 with an age group ranging from 25 to 35 highly influences the consumer purchase behaviour. Therefore, higher
income of male respondents and huge price rise of products are highly correlated with each other towards consumer purchase
behaviour. The overall findings provide implications to marketers, retailers and advertisers to implement future strategies
according to the current pandemic situation towards consumer purchase behaviour in the retail sector. Ali, B. J (2020) This
study examines extant literature and secondary sales data from Samsung, the largest consumer electronic durable-goods
company in Iraq, to show how the pandemic may have encouraged Iraqi consumers to embrace technology, as hinted by the
surge in online purchases. Some markets have found it difficult to adapt to online shopping, despite the pandemic negatively
affecting brick-and-mortar sales worldwide. Pathak, G., and Warpade, S. (2020) The present study was carried out in the
month of July 2020 means after the announcement of the first phase of unlocking in Maharashtra. Data were collected from the
western part of Maharashtra and the majority of the samples are from Pune and Satara District. The researcher has used Google
form for data collection. After the analysis, it is found that some consumers have changed their preference while selecting
retailers for shopping of essential goods.
Pham, V. K et al (2020) The Covid-19 pandemic has promoted online shopping activities of Vietnamese consumers
more actively, which previously took a lot of effort of online businesses, but not effectively. However, will this changing
behavior be sustained after the Covid-19 pandemic? Therefore, the article aims to investigate how customers change during the
Covid-19 outbreak based on perceived risks and perceived benefits of consumers in online shopping. These two groups of
factors will be assessed along with the moderating role of the Covid-19 impact. Wijaya, T. (2020) The results showed that the
factors that formed panic buying behavior were an information and knowledge factor, a family considerations, a conditional or
influence effect from other people, and a risk avoidance factor. These results provide the findings of the factors forming panic
buying and the implications of suggestions for the government to educate the public with various media and prevent
misinformation that can cause panic in buying behavior.

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Sambodhi Journal ISSN: 2249-6661
(UGC Care Journal) Vol-45, No.-3, October - December (2020)
Impact of COVID-19
The present pandemic situation has an adverse deep impact on Indian business (Das, D. K., and Patnaik, S., 2020) the
Covid-19 coronavirus crisis affects different sectors in different ways. Production, transportation, and distribution based
companies are the worst-hit (https://pharmascope.org) this crisis is going to affect the economy as never before leading to
massive psycho-social impacts as well (Singh, D. P,2020) The impact of the coronavirus pandemic on the economy has been
devastating. With millions forced to stay at home and retail shops, except those providing essential services, shut, analysts
claim that the pandemic will have long-term consequences on consumer behavior (PunitaLal, R. M, 2020) According to a
survey about the impact of the coronavirus (COVID-19) on Indians in March 2020, a majority of respondents had no critical
non-essential purchases during the lockdown. About 56 percent needed home supplies, and most of these needed them ordered
online. In contrast, about eight percent each for online and local purchases required electronics in order to attend online classes
or be able to work from home (Keelery, P. B, 2020)
According to the EY Future Consumer Index, five new segments may emerge as consumers move beyond the
pandemic -back with a bang (constituting 38% of respondents), stay frugal (29%), keep cutting (19%), cautiously extravagant
(11%) and get to normal (2%) (https://www.bloombergquint.com) and the governments of most countries including India have
already taken several measures like lockdown, social distancing, closure of schools, colleges, religious gatherings etc., to
reduce its spreading. India is a developing country and most of the people are having below the standard income. So the
lockdown in India has affected the poor and middle income group people (Kundu, B, 2020)
Objectives of the Study
• To study the awareness and knowledge of consumers towards COVID -19
• To study the price, availability and other problems on the COVID- 19 impact on the buying behavior
• To analyze the consumers attitude towards COVID -19 impact on the buying behavior
Research Methodology
The present study is an empirical research and it is based on the survey method. The primary data have been collected a
structured interview schedule was used to collect information. a pre-test has been conducted before finalizing the Interview
Schedule. The secondary data have been collected from websites, books, magazines, journals and research reports. The
researcher has adopted the Convenient Sampling Method. A total of 315 respondents of the consumers have been selected in
Coimbatore city. Data collection was scheduled in the month of June 2020. The researcher has used an online Google form for
data collection. The data collected for the study have been edited by the researcher and analyzed with the help of SPSS. For the
purpose of analysis suitable mathematical and statistical techniques such as percentages, mean, chi-square test, and T test have
been used.
Reliability Statistics
Table 1: Reliability Statistics
Cronbach's Alpha N of Items
.727 9
Source: Computed from Primary Data
Table 1 reflects that reliability test was performed to analyze consistency of the data. Cronbach’s alpha value was
0.727 which is significantly higher than the recommended value.
Limitation of the Study
The study is focused on consumers towards COVID 19 impact on buying behavior. The study is confined to the extent
of interpreting data which is collected only from 315Respondents of selected consumer Coimbatore city.
Analysis and Discussion
Table 2: Socioeconomic and demographic variables among respondents
S.No Variables Category No. of Respondents Percentage
Female 147 46.7
1 Gender Male 163 51.7
Prefer not to say 5 1.6

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Sambodhi Journal ISSN: 2249-6661
(UGC Care Journal) Vol-45, No.-3, October - December (2020)
Total 315 100.0
21-30 97 30.8
2 Age 31-40 103 32.7
Above 40 73 23.2
Up to 20 42 13.3
Total 315 100.0
Diploma/ITI 1 .3
3 Education PG and above 263 83.5
UG 48 15.2
up toH.Sc 3 1.0
Total 315 100.0
Agriculture 11 3.5
4 Occupation Private Service 185 58.7
Public Service 82 26.0
Self Employed (Business) 37 11.7
Total 315 100.0
Above Rs.60000 64 20.3
Monthly income (Rs.) Rs.20001 to 40000 60 19.0
5 Rs.40001 to 60000 29 9.2
up to Rs.20000 162 51.4
Total 315 100.0
Married 170 54.0
6 Marital status Single
145 46.0

Total 315 100.0

Source: Collected and Computed Through Questionnaire

Source: Collected and Computed Through Questionnaire

Interpretation
Table 2 shows, 315 numbers of respondents, 51.7% of the respondents are female, 46.7% of the respondents are male.
13.3% of the respondents up to 20 years and 31-40 years age group, 32.7% of the respondents 21-30 years age group, 30.8% of
the respondents above 40 years age group 23.2%, 83.5% of the respondents are PG and above, 15.2% of the respondents are
degree qualified, 1.3% of the respondents are qualified up to H.Sc and 0.3% of the respondents are diploma/ITI qualified. 58.7
% of the respondents are Private Service, 26.0% of the respondents are Public Service 11.7 % of the respondents are doing
business and 3.5% of the respondents are Agriculture, 51.4% of the majority respondents are income Upto Rs.20000, 54.0% of
the majority respondents are married.

Table3: One-Sample Statistics Consumers Perception towards COVID 19 impact onbuying behavior

COVID 19 impact on Consumers N Mean Std. Std. t P Rank

buying behavior Deviation Error Value Value
Mean
Spend money on only essential 1
315 4.117 1.1819 .0666 61.828 .000
goods
purchase more fruits and vegetables 5
315 3.784 1.2860 .0725 52.224 .000
during COVID -19

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Sambodhi Journal ISSN: 2249-6661
(UGC Care Journal) Vol-45, No.-3, October - December (2020)
COVID-19 changed your food 2
315 3.873 1.2350 .0696 55.659 .000
behavior
Do you prefer to use online payment 6
315 3.603 1.4557 .0820 43.930 .000
for purchasing
Lockdown has reduced your 4
315 3.825 1.2459 .0702 54.495 .000
expenditure
Lockdown has saved your income 315 3.267 1.4927 .0841 38.842 .000 7

COVID-19 changed your entire life 315 3.870 1.2046 .0679 57.015 .000 3

Sources: Computed from Primary Data

Interpretation
From the above table it is found that the mean value range from 3.267 to 4.117, t value range from 38.842 to 61.828,
Standard deviation ranges from 1.1819 to 1.4927, Standard error mean ranges from .0666 to .0841. This leads to the appropriate
ranking analysis with respect to the mean value.Consumers Perception towards COVID 19 impact on buying behaviorwith the
help of list of factors. First rankspend money on only essential goods, Second rankCOVID-19 changed your food behavior,
Third rank COVID-19 changed your entire life, Fourth rank Lockdown has reduced your expenditure, Fifth rank purchase more
fruits and vegetables during COVID -19,Sixth rank use online payment for purchasing, Seventh rank Lockdown has saved
income.
Table 4:Hypothesis Testing
X2 P-Value
S.No H0 : Null-Hypotheses Test Statistics H0Accepted/ Rejected
There is no significant
relationship between
Gender and COVID-19
1. Accepted
impact on your buying Chi-Square Test 13.471 .097
behavior

There is no significant
relationship between
2.
Gender and spend money Chi-Square Test 12.450 .132 Accepted
on only essential goods
There is no significant
relationship between
Gender and COVID-19
3. Accepted
changed your Brand Chi-Square Test 8.963 .345
Preference

There is no significant
relationship between
Gender and purchase more
4. Accepted
fruits and vegetables Chi-Square Test 7.777 .456
during COVID -19

There is no significant
relationship between
Gender and COVID-19
5. Accepted
changed your food Chi-Square Test 10.071 .260
behavior

There is no significant
relationship between
Gender and prefer to use
6. online payment for Rejected
Chi-Square Test 18.920 .015
purchasing during COVID
-19

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Sambodhi Journal ISSN: 2249-6661
(UGC Care Journal) Vol-45, No.-3, October - December (2020)
There is no significant
relationship between
7. Gender and Lockdown has Accepted
Chi-Square Test 7.653 .468
saved your income

There is no significant
relationship between
8. Gender and Lockdown has Accepted
Chi-Square Test 4.122 .846
reduced your expenditure

There is no significant
relationship between
9. Gender and COVID-19 Accepted
Chi-Square Test 9.245 .322
changed your entire life

Sources: Computed from Primary Data

Significant at 5% (P<0.05) –Rejected, Non-Significant at 0.05–(P>0.05) -Accepted
Result of Hypothesis
The chi-square statistics the value is greater than the table value of gender is not associated with buying behavior,
spends money on only essential goods, Brand Preference, purchase more fruits and vegetables, changed your food behavior,
reduced your expenditure, saved your income and changed your entire life of the virus no sign at a 5% level. Hence, the null
hypothesis is accepted. The chi-square statistics the value is less than the table value of gender is not associated with prefer to
online payment and the result is significant at a 5% level. Hence, the null hypothesis is rejected.
Findings and Conclusions
As many as 85% of consumers in India said that they are shopping more health-conscious and are focusing more on
limiting food waste. Personal hygiene habits are also seeing a dramatic change with 48% of consumers increasing purchases of
personal hygiene products while cutting down on discretionary products (https://www.warc.com) Indian consumer products
companies face a multitude of challenges in the ‘now’, ‘next’, and ‘beyond’ phase coupled with the radically changing
consumer behavior in India(Mishra, P,2020) Companies must formulate strategies immediately to address the challenges in all
the three phases, including permanent safety measures in offices and on shop floors, re-evaluating brand portfolio, expanding
relationships with third-party e-commerce platforms, exploring shared warehousing and most importantly, anticipate and be
ready to respond to newer habits that consumers will develop after living through the pandemic (Bureau,2020)
Based on the findings of this study, Most of the respondents strongly agree COVID-19 -19 impact on buying behavior
(52.4%) and the majority of the respondents spending the money only essential goods (52.4%) during COVID-19 and changed
the brand Preference the respondents say maybe (44.4) the majority of the respondents purchasing more fruits and vegetables
during COVID-19 -19 (41.6%), COVID-19 changed food behavior (41.9%) and most of the respondents prefer to use online
payment for purchasing (39.4%) COVID-19 -19 reduced the expenditure (40.0%) and saved income (28.9%) finally most of the
respondents strongly agree (41.0%) and agree (25.1%) COVID-19 changed entire life.
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