IMPACT OF COVID-19 PANDEMIC ON CHANGING CONSUMER BEHAVIOR

Abstract

The COVID-19 pandemic which has hit the World since 2020 has changed how consumers behave. The changes have both positive and negative implications to businesses and are forcing them to transform to meet the needs and demands of the consumers behavior post-COVID-19 pandemic. This research studies the determining factors which lead to a change in consumer behavior due to the COVID-19 pandemic. The use of quantitative approach using online survey and data collected will be analyzed using Smart PLS 3. This study found a new insight which had not been studied before in Malaysia- It is found out that substitution buying and spending power is significantly correlated with change in consumers behavior during COVID-19 pandemic. Contrary to common belief, the other determinants studied in this research including impulse buying, luxury indulgence, increase demand for health-related products and desire for online shopping all did not show significant relationships with change in consumer behavior. As the world is continuously experiencing changes due to the COVID-19 pandemic, this study hopes to provide insight to businesses on how to position themselves to face the change in consumer behavior.