{"id":117224,"date":"2020-04-13T19:00:00","date_gmt":"2020-04-14T00:00:00","guid":{"rendered":"https:\/\/www.dacgroup.com\/how-the-pandemic-is-changing-consumer-behavior\/"},"modified":"2024-12-19T14:52:52","modified_gmt":"2024-12-19T19:52:52","slug":"how-the-pandemic-is-changing-consumer-behavior","status":"publish","type":"post","link":"https:\/\/www.dacgroup.com\/en-ca\/insights\/blog\/analytics\/how-the-pandemic-is-changing-consumer-behavior\/","title":{"rendered":"How the pandemic is changing consumer behavior"},"content":{"rendered":"

COVID-19 shocked the world. Now it’s creating an entirely new world that consumers and businesses must adapt to; a world in which abnormal is the new normal<\/a>\u2014and it can be overwhelming.<\/p>\n

So, how are consumers behaving in these unprecedented circumstances? Have they changed their behavior in response to this pandemic? Let’s explore the impact this pandemic is having on a global scale.<\/p>\n

Are people worried?<\/h2>\n

Concern about the virus is widespread, with 90% of consumers in the US and UK feeling concerned<\/a>. However, it’s estimated that 96% of Gen Zs are concerned compared to 90% of baby boomers. Additionally, 60% of Gen Z and millennials are either very <\/em>or extremely<\/em> concerned, whereas only 40% of baby boomers share the same sentiment.<\/p>\n

Do people trust information about COVID-19, or the media’s depiction of it? According to an Angus Reid Institute poll (accessed through eMarketer<\/a>), older respondents in Canada are more likely to have indicated that they trust the news media in Canada. Almost two-thirds of Canadians who are 55 and older trust the media, versus fewer than half of individuals between the ages of 18 and 24.<\/p>\n

Another study of US and UK consumers found that 40% of people are concerned about inaccurate COVID-19 information<\/a>. The exception, however, is that there is widespread trust in the reported figures of infection and mortality rates.<\/p>\n

Behavioral changes in daily routines<\/h2>\n

Almost 90% of Gen Z have made changes to their daily routine, compared to just 75% of baby boomers. Additionally, 44% of Gen X that indicated that they read the news more often to stay informed, followed by Gen Z at 40%. A third of Gen Y checks social media more often to keep up-to-date\u2014and there is clearly a real and concerted effort being made when it comes to washing hands more frequently and trying not to touch one’s face.<\/p>\n

\"Chart<\/p>\n

Eating out less<\/h3>\n

According to eMarketer, 60% of consumers have indicated that they will eat out less due to COVID-19 as of March 15, 2020. Some restaurants have responded by omitting delivery fees to encourage food delivery.<\/p>\n

\"Chart<\/p>\n

There is also an insatiable appetite for grocery delivery. Grocery delivery platforms such as Instacart, Walmart Grocery, and Grocery Gateway are seeing unprecedented spikes in sales and orders as consumers start purchasing groceries online. Even consumers who have historically never purchased groceries online are finding themselves somewhat forced to shift to online shopping.<\/p>\n

\"Chart<\/p>\n

Comparing average daily downloads in February to downloads in March, Instacart, Walmart Grocery and Shipt have seen surges of\u00a0218%, 160%, and 124%<\/a> respectively.<\/p>\n

Delayed purchases<\/h3>\n

Consumers are more likely to delay purchases, especially expensive and large purchases. More than 40% of consumers have indicated that they will make major purchases only when the outbreak of coronavirus decreases or ends<\/a> in their country.<\/p>\n

\"Graphic<\/p>\n

All categories face some risk and are being affected one way or another. When it comes to travel, 33% will only buy vacation packages when the outbreak is over in their country. Additionally, the survey found that consumers aren’t only delaying purchases: they are also abandoning their plans altogether. An estimated 22% of global consumers say they have canceled planned trips to another country, and 35% have canceled planned domestic trips.<\/p>\n

It appears that age is a significant factor when it comes to delaying purchases. Gen Z are most likely to be delaying purchases, and this is true across several categories. This can be attributed in part to lower income levels and uncertainty in general.<\/p>\n

In retail, we’re seeing an accelerated shift from store to online purchasing. Coronavirus precautions have led to a decrease in in-store traffic and an increase in online purchasing. Online spending in the US was up 52% year-over-year<\/a> in a three-week first quarter period. Some researchers are referring to this as a temporary step-change in reaction to the pandemic, while others believe that COVID-19 will forever change the way consumers shop.\u00a0<\/strong><\/p>\n

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