PRIMEASIA UNIVERSITY

School of Business

Assignment

Course name: Marketing Management

Course code: MKT 201
Submitted By Submitted To
Name: Meheruba Akter Name: Nilufar Yasmin Ahmed
ID no: 191004045 Designation: Lecturer
Semester: 5th Department: BBA
Date: 17/09/2020 Primeasia University

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The impact of COVID 19 on consumer buying behavior and digital marketing.

1. Introduction
How is COVID-19 impacting consumer digital trends – now and in the future? We asked
consumers about how it is transforming their behavior and what it means for digital marketing
strategies.

The research was commissioned with GO Group Digital, and involved 5,128 consumers, split
between the United States, United Kingdom, France, Germany and Italy. Around 1,000
consumers were surveyed in each country at the beginning of May 2020.

On this page, you will find the overall results of the survey, a focus on each country, as well as
best practice and takeaways to help brands adapt their digital strategies to meet current and
future market needs.

2. COVID 19 impact on product searching

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Across the globe the COVID-19 pandemic and subsequent lockdowns have dramatically
changed the everyday behavior of billions of people. It has had a particular impact on digital
channels, with people switching to online given that many shops have been closed and
consumers forced to stay at home.

What will the long-term impact be? Will people return to offline channels or has the crisis
accelerated the move to digital? What does this mean for brands and their strategies,
particularly around personalizing the online experience?

Analyzing the results we can see five clear conclusions

An immediate increase in use of digital channels after the COVID-19 crisis began

Digital increases are here to stay after COVID-19 lockdowns end

Brands are letting consumers down when it comes to a personalized experience

The clear impact of the experience on future purchases

The consumer benefits of switching to digital

24% of consumers will increase long-term use of digital channels due to COVID-19

73% of consumers expect brands to personalize their journey

3. New buying behaviors in this new normal

Why, what and how consumers buy is changing due to the COVID-19 outbreak. Consumer
priorities have become centered on the most basic needs, sending demand for hygiene,
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cleaning and staples products soaring, while non-essential categories slump. The factors that
influence brand decisions are also changing as a "buy local" trend accelerates Digital commerce
has also seen a boost as new consumers migrate online for grocery shopping – a rise that is
likely to be sustained post-outbreak.

In times like these, our need for the basic necessities of life takes precedence. It comes as no
surprise that personal health is the top priority for the consumers we surveyed, followed by the
health of friends and family. Food and medical security, financial security and personal safety
were other leading priorities

A rise in conscious consumption

Consumers are more mindful of what they’re buying. They are striving to limit food waste, shop
more cost consciously and buy more sustainable options. Brands will need to make this a key
part of their offer (e.g. by exploring new business models).

Growing love for local

The desire to shop local is reflected in both the products consumer buy (e.g. locally sourced,
artisanal) and the way they shop (e.g. supporting community stores). CPG brands will need to
explore ways to connect locally – be it through highlighting local provenance, customizing for
local needs or engaging in locally relevant ways.

More dependency on virtual shopping places

People are working from home as businesses close doors and encourage remote work. Many
employees who have not worked remotely before—or not often—plan to do so more
frequently in the future. High percentages of employees feel they have the right environment
and tools for remote work, but some miss social contact. Overall, employees feel their
employers have taken the right steps to protect their health and keep them well informed.

Employees who now find themselves working from home are broadly positive about the
experience. Unsurprisingly, those who worked from home previously are more likely than
newcomers to feel they are more productive at home and feel they are more professionally
satisfied than they are in the office . CPG companies that have a virtual working strategy will
strengthen their employee value proposition and show that they are in-touch with their
employee preferences.

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4. Staying connected with consumers through digital platform
COVID-19 is a health and economic crisis that has a sustainable impact on consumer attitudes,
behaviors and purchasing habits. CPG companies can adapt to these changes by taking action to
respond, reset and renew to be positioned even stronger for the future.

Respond
Stand up a cross-functional command center with KPI tracking

Create an elastic digital workplaxe task force

Reshape your marketing plan around new demand and brand purpose

Reset
Redefine relationships with consumers, customers and employees and reimagine your
organization and ways of working

Rethink and redefine relationships with ecosystem partners

Reconsider your product and service portfolio

Renew
Accelerate the move to an intelligent data-driven operating model

Reprioritize enterprise investment plans for post-COVID era

Scan market for M&A opportunitie

5. Conclusion
The lockdown and social distancing to combat the covid-19 virus has generated significant
disruptions on consumer behavior. All consumption is time bound and location bound. With
time flexibility but location rigidity, consumers have learned to improvise in creative and
innovative ways. The work-life boundaries are now blurred as people work at home, study at
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home, and relax at home. Since the consumer is unable to go to the store, the store has to
come to the consumer.

As consumers adapt to the house arrest for a prolonged period of time, they are likely to adopt
newer technologies which facilitate work, study and consumption in a more convenient
manner. Embracing digital technology is likely to modify existing habits. Finally, public policy
will also impose new consumption habits especially in public places such as airports, concerts,
and public parks

6. References
1. Linder Steffan B. Columbia University Press; New York: 1970. The Harried Leisure Class.

2. Radjou Navi, Prabhu Jaideep, Ahuja Simone. Jossey Bass; London, UK: 2012. Jugaad
Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth.

3. Reisman David, Nathan Glazer, Denney Reuel. Yale University Press; 1950. The Lonely Crowd:
A Study of the Changing American Character.

4. Putnam Robert D. Simon & Schuster; New York: 2000. Bowling Alone: The Collapse and
Revival of American Community.

5. Sheth Jagdish N. Wiley & Sons; New Delhi, India: 2020. The Howard-Sheth Theory of Buyer
Behavior.

6. Sheth Jagdish N. Next Frontiers of Research in Data Driven Marketing: Will Techniques Keep
Up With Data Tsunami? Journal of Business Research. 2020 in press.

7. Sheth Jagdish, Sisodia R. Revising law like generalizations. Journal of Academy of Marketing

Science. 1999;27(Winter):71–8