Future Nostalgia: the impact of Corona Virus on Consumer Trends & Truths

The effect of the Coronavirus pandemic is undeniable. It has transformed our lives forever.
Many of the ways we are accustomed to doing has changed dramatically. The pandemic has
transformed the way we conduct our daily routines. In other words, it has greatly impacted our
lives and we will never be the same. The webinar, Future Nostalgia: the Impact of Corona
Virus on Consumer Trends and Truths talks about the effect of the spread of Coronavirus
and what it means to the mentality of the consumers.

The webinar discusses the lasting impact of the pandemic on consumer’s behavior towards
businesses' products. It talks about the trends in consumer behavior during the pandemic and
explains how it will persist even after the pandemic has gone. Peter Horst and Ann Rivers
surveyed the behavior of consumers during the pandemic. They identified four (4) trends in
consumer preferences that will most likely continue even after the pandemic. The figure below
shows the four trends:
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The tension between Privacy and Safety

During this pandemic, businesses have implemented safety protocols in ensuring the health and
safety of their customers. Checking the temperature and declaring your health status are
requirements before you can enter an establishment. However, in doing these safety measures,
the privacy of an individual is being exposed. The researchers predicted that the tension
between safety and privacy will be an issue even after things normalize. Because of this, they
suggested that companies re-evaluate their value proposition. They have to let customers know
that these safety protocols are important and how it adds value to the company's services
Accelerated Digital Services

Because of the pandemic, people preferred to stay at home rather than go outside. In the
survey, the researchers point out the trend in using digital services. From watching movies,
shopping, to food, many customers preferred to use online services. Many companies such as
Netflix have flourished because of this preference of the consumers. The researchers indicated
that this trend will continue even after the pandemic and businesses should transform their
businesses digitally.

Cautious Return to Shared Economy

Shared Economy is an economic model described as a peer-to-peer (P2P) activity of obtaining,

offering, or sharing access to goods and services using an online platform. Some of the leaders
in the sharing economy are Uber and Airbnb. Unfortunately, these companies have suffered
during the pandemic. Consumers do not want to use their services mainly because of health
and safety considerations. This is why the researchers suggested that these companies should
understand these concerns and addressed them by ensuring the safety of their customers.

Remote Working is here to stay

One of the effects of the pandemic is the increased number of employees working outside
offices. The reason for this is to stop the spread of the coronavirus. The researchers predicted
that remote working will still be a trend even after things normalized. Due to this trend,
businesses should identify the effect of remote working on the behavior of consumers and how
they should adjust to this trend.

Consumer Behavior

The coronavirus spread has a great effect on how a consumer behaves. As identified in the
webinar, the attitude and preferences of consumers have shifted. This can be explained by
focusing on and analyzing consumer behavior. Fundamentally, motivation, perception, learning,
and memory are what influence how consumers respond (Kotler & Keller, 2012). Maslow's
theory explains this phenomenon on consumer's motivation.
 Self - Self development and Realization
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Esteem Self esteem, recognition, and

status
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Social Needs sense of belonging, love

Safety Needs Security, Protection

food, water,
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Maslow's theory explains why people are motivated by a particular need at a particular time. His
theory is that human needs are arranged in a hierarchy. As the figure below shows, there are
five needs that a human should address. These are physiological needs, safety needs, esteem
needs, and self-actualization needs. They are arranged from the most to the least important.
Maslow's theory can explain how consumer's preferences change during the pandemic stage as
compared to the pre-pandemic stage. To illustrate, during the pandemic, consumers would
prioritize their safety needs. They will not take an interest in their social needs, esteem needs,
and self-actualization needs. As an example, Netflix’s subscribers have increased in numbers
during the pandemic. The reason for this is that they prioritize their safety and health by staying
at home instead of socializing and watching movies outside. Consumers will try to satisfy the
most important needs first before the next important one.

The lesson at this time of the pandemic is that businesses should adapt to the changes in the
behavior of consumers. Understanding consumer mindset and their changing behavior and
preferences are essential to the survival of a company. The impact of the pandemic will have a
lasting effect even if things go back to normal. Companies should change the way they engage
with customers and transform their operations and services to ensure the success of their
business.

References:

Future Nostalgia: the impact of Corona Virus on Consumer Trends & Truths. (2020, May 14).
Retrieved May 14, 2020, from https://www.youtube.com/watch?v=3u6D8QRUeL0

Sharing Economy. (2020, Oct. 3). Retrieved Oct. 3, 2020, from

https://www.investopedia.com/terms/s/sharing-economy.asp

Kerin, Roger A. & Hartley, Steven W. (2016). Marketing: The Core (6 th ed.). USA: McGraw Hill
Education.
Kotler, P. & Keller K. (2012). Marketing Management (14th ed). Harlow, England: Pearson
Education Limited.