FIRST SEMESTER SESSION 2020/2021 (A202)

BPMN 3143 GROUP M RESEARCH METHODOLOGY

GROUP ASSIGNMENT

RESEARCH PROJECT (GROUP 9)

FACTORS THAT INFLUENCING HOUSEHOLD CONSUMPTIONS BEHAVIORS

DURING COVID-19 PANDEMIC

PREPARED FOR:

PROF. MADYA DR. THI LIP SAM

PREAPARED BY:

NAME MATRCI NO.

1. LEE ZHI QIN 261751
2. NURUL QURRATUL ‘AINI 262479
3, KONG LOK YEE 263228
4. KHOO YI ERN 263287
5. SHONESH RAO 264965

SUBMISSION DATE: 14th APRIL 2021

LIST OF CONTENTS

CHAPTER 1: INTRODUCTION...........................................................................................1

1.1 Background of the Study.............................................................................................1

1.2 Problem Statement.......................................................................................................2

1.3 Research Questions (RQ) and Research Objectives (RO)..........................................3

1.4 Scope of the Study.......................................................................................................4

1.5 Relevance of the Study................................................................................................4

REFERENCES.........................................................................................................................6
 CHAPTER 1: INTRODUCTION

[1.1] Background of the Study

This research aimed to examine factors that influencing household consumption during
COVID-19 pandemic. We focus on two variables in this research which are dependent
variables (DV) and independent variables (IV). Independent variables (IV) are the factors that
we believe can affect the dependent variable (DV) either positively or negatively. By the end
of this report, we will be able to identify how the household consumption behaviour changes
and what are the factors that affected consumer behaviour during the COVID-19 pandemic.

Our dependent variable (DV) is household consumption behavior during COVID-19

while independent variables (IV) are attitude, behavioral intention, and perceived behavioral
control. Dependent variables (DV) which are household consumption behavioral is very
important to us because it influences the economic growth of a county. Thus, we need to
understand the factor that stimulates consumption which can affect the household increase in
that industry and leads the economic growth. The degree to which a person has a favourable
or unfavourable evaluation or appraisal of the behaviour in question is referred to as one's
attitude toward the behaviour. The degree of perceived behavioral control refers to the
perceived ease or difficulty of performing the behaviour and is assumed to reflect experience
as well as anticipated impediments and obstacles.

According to Vijai & Nivetha (2020), household expects to cut spending in many
categories, except for necessary and at-home entertainment item as they spent the most
through online is for the necessary items. While at home, they have increasingly adopted
digital and low-touch activities such as online streaming and digital payment and many
people intend to continue for post-COVID-19. Consumer spending is measured by the value
of goods and services purchased. During the COVID-19 pandemic, personal consumption for
US residents fell by 9.6% in the second quarter of 2020 as the unemployment rate increased,
but after that consumption increase by 8.9% in the third quarter of the same year (Roll et al.,
2021).

The pandemic brings a lot of effects on household consumption, for instance, online
shopping services have increased by up to 150% during the pandemic time. The consumption
structure undergoes a significant change, particularly in demand for essential goods and
services, which accounts increase of 87% of total consumption. Simultaneously, luxury goods

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and services fell by 77% such as expensive items such as cars, trips, and branch clothes
(Estrada, 2020). According to Ajzen (1991), attitudes toward the behaviour, subjective
norms, and perceived behavioural control can all be used to predict intentions to perform
various types of behaviours with high accuracy, and these intentions along with perceptions
of behavioural control account for a significant amount of variance in actual behaviour.
Intentions are assumed to capture the motivating factors that influence behaviour; they are
indications of how hard people are willing to try and how much effort they intend to put in to
perform the behaviour.

Hence, a few University Utara Malaysia (UUM) students have conducted research for
the household to investigate the relationship between IV and DV which is household
consumption during COVID-19 with attitude, behavioral intention, and perceived behavioral
control. This report leads us to understand how the household consumption behaviour
changes during COVID-19 and what factor affected consumptions behaviour during COVID-
19 pandemic. Consumption behaviour is crucial to understand because it has a direct
relationship with the economy of the country. We should understand household consumption
behaviour to develop strategies to improve household consumption in every category as well
as economic growth.

1.1[1.2] Problem Statement

COVID-19 outbreak has affected people in various ways and the government of countries
had imposed lockdown to prevent the spreading of the disease at the same moment. A
movement control order (MCO) also has been implemented in Malaysia since March 2020.
This exceptional situation affected the daily lifestyles of people including their consumption
patterns either positively or negatively. There are a few factors that influence the
consumption behaviour of households such as demographics, income, perceptions and the
information on social media. It is a unique setting for the investigation as not much research
on consumer behaviour during the COVID-19 pandemic is available now.

As the number of cases increased in the early stage Covid-19, families started to
drastically change their usual purchasing patterns in a variety of big categories especially in
shopping, credit card spending, and food products. This was supplemented by a significant
reduction in total expenditures. Spending pattern for everyone especially household changed
because of the Movement Control Order (MCO) by the government. Digital Consumer of

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Tomorrow, Here Today (2020) reveals that each category they looked at consumer behaviour
was electronics and accessories; clothing, footwear and accessories; personal care and beauty;
household, appliances and furnishings saw at least 1.4 times increase in online retail
penetration from 2019 to 2020. But the highest growth came from groceries, which achieved
2.7 times growth in online retail penetration as more people shopped online. However, there
are also products that consumers stop buying during the lockdown.

Hansen (2008), Kahawandala and Peter (2020) and Salem and Nor (2020) incorporate
the theory of planned behaviour (TPB) in their studies to analyse consumer purchase
behaviour and actions. Chauhan and Shah (2020) conducted the research regarding
consumption habits and sentiments of people in India to examine consumer behaviour across
different age categories during the COVID-19 outbreak through a structured questionnaire.
Another study from Vijai and Nivetha (2020) investigate consumer buying behaviour during
COVID-19 in Chennai City with percentage analysis and chi-square test using the collected
data from a structured questionnaire. Most of the studies show the COVID-19 pandemic has
significantly affected and shifted consumption expenditures and habits (Chauhan and Shah,
2020; Dong et al., 2020; Loxton et al., 2020; Sheth, 2020; Vijai and Nivetha, 2020; Zwanka
and Buff, 2021).

However, the current research regarding the behaviour and sentiment of Asian
especially Malaysian towards the outbreak remains very limited. Instead, not much is known
about how individuals altered their purchasing behaviours during the pandemic in Malaysia
on the previous research. In this survey, we examine how attitude affected household
consumption behaviour, we are also interested in how behavioural intention and perceived
behavioural control will lead the changes in household consumption increase or decrease.

Based on the context, we are interested to understand the evolving household

consumption trends and sentiments in Malaysia, therefore this research emphasises the
problem statement “Factors That Influencing Household Consumption Behaviour during the
COVID-19 Pandemic”. To address the research gap, the purpose of this paper is to
investigate and understand the factors that change the consumption behaviour of Malaysian
households during the epidemic time by collecting the data through an online survey
questionnaire. The study will provide more information about this topic and extend the
knowledge on Malaysian household consumption behaviour.

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1.2[1.3] Research Questions (RQ) and Research Objectives (RO)

Based on the problem specified, the study is being conducted to address the following
research questions:

[1.] What is household consumptions behaviour during the COVID-19 pandemic?

[2.] What are the factors that influence household consumptions behaviour during the
COVID-19 pandemic?

Therefore, the general objective of the study is to investigate the factors that influencing
household consumption behaviour during pandemic COVID-19. The specific objectives are:

[1.] To examine household consumptions behaviour during the COVID-19 pandemic.

[2.] To determine the factors that influence household consumptions behaviour during the
COVID-19 pandemic.

1.3[1.4] Scope of the Study (Household… location?region?urban/rural??/)

The study focuses on examining the factors that influencing consumptions behaviour
among household during the COVID-19 pandemic. This study comprises the
consumptions behaviour towards the pandemic faced by the household and factors
influencing this situation as it is needed in achieving the objectives of the research. The
population and sample from the respondents under this study will select among the
households of UUM students in Malaysia.??? Therefore, the findings of the study will be
generalized among Malaysian households only.

1.4[1.5] Relevance of the Study

There are some factors that influencing household consumption behaviours during
COVID-19 since the Movement Control Order (MCO) commencing on 18 March 2020.
The pandemic affected the consumption behaviour among households of UUM students
when they need to go back to their hometown during the MCO period. Generally, our
This research is important and significant because the aim of the research is to examine the
household consumption behaviour during the COVID-19 pandemic. Besides, by conducting
this research, we are able to have a better understanding of the factors that influencing
consumption behaviours. By interpreting the study, we able to know how to manage personal

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expenditure with our abilities. In addition, this study will be able to assist the marketer in
understanding the expectation of the consumer behaviours as they can predict what are the
most popular among the consumer during the special event such as the COVID-19 pandemic.

Practically, it is hoped that the study findings will contribute to providing

understanding towards household consumption behaviour and information of the factors that
influence household consumption behaviours during the COVID-19 pandemic. By holding a
survey among households of UUM students, it is easier to come out with an idea that able to
support our study regarding the household consumption behaviour during COVID-19 or other
similar emergemcies.

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