How do customers change their purchasing behaviors during the COVID-19 pandemic?

Abstract

This study focuses on examining how customers' shopping behaviors have changed during the pandemic and contributing variables. Three primary shopping modes include online purchases, curbside pickup, and in-store shopping. The dependent variables are the changes in customers' spending in those three modes during the pandemic. The theory of fear appeal was used as the theoretical foundation for selecting independent variables. Based on this theory, two groups of independent variables were identified, fears for health and fears for financial conditions due to COVID-19. Additionally, demographic variables were also included in the analysis. The data from Census Bureau's Household Pulse Survey Phase 3.1 collected from June 23 to July 5, 2021, was used with 24,998 useable cases. Logistic regression was used to analyze the data to test the effects of independent variables on customers' shopping behavior changes in the three modes. The results show that both fears for health and fears for financial conditions have effects on the shopping behavioral changes. Due to those fears, residents change their shopping behaviors by considering the shopping modes that allow them to deal with or avoid the risks. Additionally, demographic variables, including age, gender, race, income, and marriage status, also have significant impacts on their shopping decisions.