Consumer Behavior in Conditions of Crisis and Uncertainty: A Microeconomic Analysis

Abstract

The aim of the article is to study the features of consumer behavior in conditions of crisis and uncertainty. The article analyzes the research on the rationality of consumer choice. The main approaches to assessing utility and consumer behavior have been allocated. Currently, half of ordinary citizens prioritize buying foods; the next category in terms of specific gravity is medicines; in third place – clothes and shoes; fourth place – hygiene and personal care products. It is found that the last positions are occupied by purchases related to things for the home, furniture and household appliances, because they are designed to satisfy secondary needs, therefore the demand for them at this time is very low. Particular attention is paid to the issue of consumer income and consumer choice in conditions of limited income. According to the results, the following trend can be observed: 40% of respondents are loyal to those labels and brands, same as the general set of products they would buy, and the reduction in income led to a reduction in quantitative indicators; in second place in terms of the number of responses is the category of people who switched to cheaper goods or substitute goods; only 7% said they did not change the level of their spending in any way (although in 2021 this figure was twice as much). Taking into account the microeconomic approach, the main factors of consumer choice have been identified. Among the most important factors, special attention is paid to: support for the Armed Forces of Ukraine; the brand’s activities and interaction with russia; volunteering; clear political position and brand language. If we study the results of the survey on the factors of brand choice by age categories, there is a clear tendency that the youngest group of respondents, namely people aged 18-24, are the most sensitive to the above factors. It is determined that young people are the most meticulous about brand policy and methods of conducting their activities, and it is especially important for them that the values of the brand and their behavior correspond to the current situation in which all Ukrainian citizens find themselves. A scheme of behavior of end users is presented. The influence of military aggression on the rational behavior of consumers is substantiated.

Keywords

• consumer behavior
• crisis
• uncertainty
• microeconomic analysis