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Impact of Covid-19 On Consumers' Essential Buying Behavior - An Indian Perspective
Impact of Covid-19 On Consumers' Essential Buying Behavior - An Indian Perspective
Volume 12, Issue 1, January 2021, pp. 303-314. Article ID: IJM_12_01_025
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=12&IType=1
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.12.1.2021.025
Anuradha Yadav
Research Scholar Haryana School Business Guru Jambheswar University Science and
Technology, Hisar, Haryana, India
Pawan Kumar
Assistant Professor, SRM University, Delhi-NCR, Sonepat, Haryana, India
Parmod
Assistant Professor, Haryana School Business Guru Jambheswar University Science and
Technology, Hisar, Haryana, India
ABSTRACT
Purpose/objective: This study attempted to examine the consumer buying behavior
of essential items like grocery, pharma, and hygiene during the nationwide lockdown
imposed by government of India. The national lockdown is to maintain social
distancing, therefore, reducing the chances of virus spread. Such circumstances are
creating a lot of paranoia and fear among the Indian households about managing the
supply of essential items to survive during the COVID-19 pandemic.
Design/methodology: in order to achieve the objectives of this study, an online
survey was conducted on the households residing in national capital region of India.
For this purpose, a self-structured questionnaire was designed which was further
distributed among target respondents by using convenient sampling technique. Out of
total 250 responses received, 226 were found fit for the analysis. Exploratory factor
analysis, confirmatory factor analysis, t-test, and one-way ANOVA have been used to
analyze the data.
Results/findings: The nationwide lockdown changes the purchasing behavior of
the customer regarding essential items and their related aspects like price, packaging,
labeling, smoothness of product or services and timely delivery etc.
Practical implications: This study is very important for the marketers as well as
researchers to know the changes in purchasing behavior of the customers specifically
related to the factors of Essential Supplies, Price, Packaging & Labeling; Stock and
Supply Shortage; Smooth Delivery; Digital Support and Product Freshness and
Authenticity of the product and services at the time of nationwide lockdown situation.
It is very important for the marketers to know the returning of the customers towards
their previous pattern that can be the future research direction for the researchers as
well as marketers also.
Originality: This paper is attempted to examine household buying behavior of
essential items to survive in situation of nationwide lockdown.
Key words: India, Consumer Buying Behavior, Essential items, Coronavirus disease
(COVID-19), Lockdown
Cite this Article: Shishpal, Anuradha Yadav, Pawan Kumar and Parmod, Impact of
COVID-19 on Consumers‘ Essential Buying Behavior – An Indian Perspective,
International Journal of Management, 12(1), 2021, pp 303-314.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=1
1. INTRODUCTION
In December 2019, the outbreak of the new virus, popularly known as Coronavirus, was first
detected in Wuhan city of China. Coronavirus aka COVID-19 (SARS-CoV-2) is believed to
be a zoonotic disease yet to find out the exact source of it. A month later, on 30 January 2020,
WHO declared COVID-19 as a Public Health Emergency of International Concern and on
March 11, 2020, WHO declared it as global pandemic (WHO, 2020a; WHO, 2020b). As the
novel coronavirus is transmitted person-to-person, various countries have been opting for
various kinds of methods to break the chain. In such a scenario, social distancing, social
isolation, lockdown, curfew, quarantine, self-quarantine became the buzzwords. To contain
the spread of this contagious virus, the Indian Government declared a nationwide lockdown
for 21 days on 24 March 2020 which in turn limited the movement of the entire population of
India (Government of India, 2020). Further, by examining the current situation as well as on
the demands of various state governments, the government of India extended the ongoing
nationwide lockdown many times with strict social distancing norms. Under the first two
lockdowns (from 24th March 2020 to 3rd May 2020), various restrictions were made by GOI
(Government of India) to limit the pace of coronavirus and its person-to-person transmission
by ―delaying the epidemic peak, reducing the size of the epidemic peak, and spreading cases
over a longer time to relieve pressure on the healthcare system‖ (Fong et al., 2020). These
restrictions including travel restriction, order related to work from home and stay at home,
restriction on any kind of public gathering, followed by the closure of all social organization,
public transportation, education institutes, entertainment and amusements spots, sealed
borders not only with other countries but also between the states, identify and sealed
coronavirus hotspot areas even inside the states.
To ensure the fulfillment of the basic needs of the citizens, only ‗essential items‘ were
kept out of the scope of the nationwide lockdown. In such a situation, little is known about
how household consumers are managing the supply of essential items. The objective of the
current study is to close this gap using primary data collected directly from the Indian
household consumers to analyze the impact of the COVID-19 outbreak on their buying of
essential items.
2. LITERATURE REVIEW
During the lockdown, the majority of offline as well as online retail stores are either
temporarily closed or adversely suffering from the shortage of manpower (McKinsey &
Company, 2020). In India, the retail industry has received two-fold brunt, i.e., a sharp drop in
demand and a rundown supply of essential commodities (Abrar, & Ahmad, 2020; Deloitte,
2020; FICCI, 2020). The removal of the restriction from the supply of essential items (food,
pharmaceuticals, medical equipment) offered some relief to the retail industry but with tough
time ahead (Ministry of Home Affairs, GOI, 2020). Although retailers dealing in ‗essential
items‘ like food and groceries, pharma products, and hygiene products benefited as consumers
demanding bulk orders at their doors, whereas others dealing in logistics, inventory,
distribution and delivery are facing the odds (Roggeveen & Sethuraman, 2020). Upgradation
in the scope of ‗essential items‘ was also witnessed with inclusion of hygiene-cum-cleaning
items and healthcare or pharma items (Liu et al., 2020; Fong et al., 2020). Further, a post-
COVID long term shift (if not permanent) in the consumers‘ shopping behavior towards the
routine purchase of personal hygiene items via offline and/or online mode is also observed
(Chauhan & Shah, 2020).
Amid prevailing circumstances, having sufficient supply of essential items become
everyone‘s top priority. The most vulnerable section of the society is daily wagers and older
adults, therefore, addressing food insecurity during lockdown due to COVID-19 should be the
prime focus area of the government (Meixner & Katt, 2020; Rummo et al., 2020). Some of
the past unpredictable situation (for example, demonetization, COVID-19 pandemic)
disclosed the highly skeptical behavior of household consumers (Bhat & Singh, 2018;
Sanatani, 2017; Park et al., 1989) in terms of a sudden hike in demand of essential items. This
sudden demand under the fearful situation resulting in various adverse consequences such as
black-marketing, adulteration, unethical price hike, fabrication in quantity measurements
while selling, etc. Therefore, the government‘s interventions in terms of strict corrective
measures are much needed (Patil & Patil, 2020). Consecutively, product and price aspects are
having significant effect on consumers‘ online buying behavior regarding essential items too
(Alam, 2020). The ongoing pandemic situation may also bring significant changes in the
household‘s buying behavior. Research on Americans observed that as the number of cases
grew, households began to radically alter their typical spending across some major categories.
Initially spending increased sharply, particularly in retail, credit card spending, and food items
(Baker et al., 2020). Whereas, frequent use of sanitizers, hand wash, and masks as a
precautionary measure taken by most of the respondents indicated the increasing concern
towards personal hygienic measures to avoid COVID-19 infection (Roy et al., 2020).
‗Panic buying‘ is another trend recorded during this time, which hits the supply of
essential items. It is a kind of herd behavior where consumers purchase an unexpected excess
quantity of a product based on their fear of a disastrous situation or perceived disastrous
situation resulting in a tension of a price hike or scarcity (Singh & Rakshit, 2020; Hall et al.,
2020). Panicked consumers may become more prone towards stocking essential items to keep
themselves safe. Another reason could be that during an emergency such as the COVID-19
pandemic, people come to expect others to increase their purchases (Paloyo, 2020). People
generally buy and store the extra quantity for future use, which led to the shortage of those
products in the market for other people (Corkery & Maheshwari, 2020; Prentice et al., 2020).
There were widespread reports that people were not only buying up soap and hand sanitizer,
but also food and other daily necessities. In a recent study on stockpiling among American
consumers, participants reported having bought more food or supplies during the preceding
two weeks than usual (Columbus, 2020) consistent with the results of other studies of similar
kind (Baker et al., 2020; Clements, 2020). Under prevailing situation, it is expected that the
―run on the bank‖ (stock-piling) mentality of the consumers will stay longer and future usage
of the virtual ordering system based on the significant benefits would be long lasting (Sheth,
2020). The role of this change is limited but important in this coronavirus situation where
most of the shops are either shut down or denying to taking cash as a preventive measure of
virus spread, supporting an unprecedented shift from dominantly offline to dominantly online
(Gaikwad & Dhokare, 2020). This would become a ‗new normal‘ (McKinsey & Company,
2020), which envisage online shopping as mainstream shopping behavior for people to buy
foods, groceries, medicines, and many other products from online stores such as Amazon.com
or Walmart (Yan, 2020).
4. DATA COLLECTION
In order to achieve the objectives of this study, an online survey was conducted on the
households residing in national capital region of India. For this purpose, a self-structured
questionnaire was designed and was further distributed among target respondents. The data
was collected by using convenient sampling technique. In first section of survey instrument,
questions related to demographic attributes like age, gender, income etc. were asked from the
respondents. Second section of questionnaire consisted of 25 items related to essential items
buying behavior. Out of total 250 responses received, 226 were found fit for the analysis.
Table 1 shows that the primary data comprises 226 households selected from India. The
demographic profile depicts that from 226 respondents, 140 (61.9%) male and 86 (38.1%)
female households participated in the study. Of the respondents, 76 (33.6%) belongs to 21-30
years age group, 106 (46.9%) belongs to 31 to 40 years age group, 30 (13.3%) belongs to 41-
50 age group and only 14 (6.2%) belongs to the age group of 50 and above. Further, 166
(73.5%) respondents were married and 26 (26.5%) were unmarried. Out of 226 respondents,
16 (7.1%) are under graduate, 56 (24.8%) graduate and 154 (68.1%) are educated more than
post-graduation level. Of the respondents, 14 (6.2%) are self-employed, 69 (30.5%) are
government employee, 100 (44.2%) are private employee and 43 (19%) are unemployed. As
far as monthly income is concerned, 43 (19%) respondents reported their income up to 20000
rupees, 24 (10.6%) reported between 20001 to 30000 rupees, 29 (12.8%) reported between
30001 to 40000 rupees and 130 (57.5%) reported their income more than 40001 rupees.
1 depicted that each observed variable loaded only on one factor and errors of measurement
associated with each observed variable are uncorrelated. For estimating model fit, regression
weights, correlation, variances and covariance are considered by the researchers. Higher
regression weights indicate that variance is better explained by the model and a better fit
model is estimated. Along with chi-square statistics some other absolute fit indices were also
checked to test the model fit. Table 3 depicts the values of absolute fit indices of proposed
model as value of CMIN/DF is 2.336, RMSEA is 0.077 and GFI is 0.827. The values of
Incremental fit indices of TLI (0.905), CFI (0.919), and IFI (0.920) are found significant and
higher than the acceptance level. The loadings for the six latent variables, shown in table 4,
are positively loaded on their respective latent variables and their value is greater than 0.40.
The values of Standardized regression loadings are also found greater than acceptance
limit of 0.40 in case of sample limit of 200 or more (Hair et al., 2014), which confirm the
structure of the factors.
Variance Extracted (AVE) should be equal or more than 0.5 and less than construct reliability.
Further to confirm discriminant validity, maximum shared variance (MSV) and average
shared variance (ASV) should be less than average variance extracted (AVE). The table 4
shows that the CR, AVE, MSV, ASV of all six factors are according to the respective
acceptance limits thereby confirming the reliability and validity of measurement scale.
Table 6 shows the results of independent sample t-test across the marital status of
respondents. Married and unmarried households showed insignificant difference regarding
their purchasing behavior towards Essential Supplies (t=1.868, p=.063); Price, Packaging &
Labeling (t= -1.389, p=.169); Stock and Supply Shortage (t= 1.544, p=.124); Smooth
Delivery (t= -.143, p=.886); Digital Support (t=1.934, p=.054); Product Freshness and
Authenticity (t=.903, p=.369) at the time of nationwide lockdown that led to acceptance of
H02 hypothesis.
Packaging & Labeling; Stock and Supply Shortage; Digital Support, and Product Freshness
and Authenticity except Smooth Delivery at the time of nationwide lockdown. The
purchasing experience of Married and unmarried consumers also not varied significantly
regarding shopping of essential items. Furthermore, consumers belonging to nuclear and joint
families were found indifferent in their purchasing behavior of essential items during
lockdown.
Finally, we can conclude that in case of nationwide lockdown the Essential Supplies;
Price, Packaging & Labeling; Stock and Supply Shortage; Smooth Delivery; Digital Support,
and Product Freshness and Authenticity of the product and services significantly contribute in
the creation of overall positive purchase behavior of consumers regarding essential items
during lockdown. Koos et al. (2017) highlighted that consumers can affect the economic
situation of a country via their changing pattern in the demand. The nationwide lockdown
changes the purchasing behavior of the customer regarding essential items and their related
aspects like price, packaging, labeling, smoothness of product or services and timely delivery
etc. It is very important for the marketers to know the returning of the customers towards their
previous pattern that can be the future research direction for the researchers as well as
marketers also. So, it becomes very important and pertinent for the marketers to know the
changing pattern and behavior of the customer in COVID-19 pandemic situation.
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