The webinar spoke about the changes in consumer behaviour, how their thinking and budgeting activities have changed and what the new normal is, for consumers.
Nielsen classifies the consumer behaviour into six main thresholds, The first phase is a proactive mode wherein customers are concerned with health and invest in wellness products. The second phase is a reactive phase where health and safety gain priority (by wearing face masks). In the third phase, consumers are preparing their pantry and stockpiling items needed to tide them through lockdown. The fourth phase sees further preparation for quarantined living, turning to mediums like online shopping, strain on the supply chain is evident at this point as stock began running low. The fifth phase is where the consumers are living in lockdown currently; prices of essentials are going up and there are concerns about availability. More consumers are also turning to e-commerce at this point.
Speaking about consumer behaviour shifts, the market research firm said it will rebound in the short term, reboot in the medium term and will have to reinvent itself in the long term.
The firm talking about consumer thinking during the crisis mentioned that during normal times, the brain operates in a mix of System 1 and System 2.
However, stressful situations hamper the ability of System 2 to operate in an efficient manner leading to System 1 taking over meaning the brain thinks more emotionally than logically.
It's important to remember that consumer habits change during times of uncertainty and disruption and this has multiple implications on the way we live. Right now, the way we perceive information has also changed. Humans right now have limited cognitive resources and the mental stress impacts attention and working memory. The brain is rewiring itself to perceive different stimuli differently and when there is a deluge of information, humans tend to pay attention to elements that are more relevant to the current situation (lockdown, the virus spread, etc)
During COVID-19, consumers will pivot towards positive and forward-looking communications, products relevant to the current context, and brands they are familiar (safe) with.
The highs and lows of online coversations observed from March 1, 2020 to May 18, 2020.
During the lockdown, sentiments of postivity, to rebuild, and getting back to life have risen.
The way that a household spends and consumes is also affected because of the pandemic.
Consumers have seen their household expenses rise across all income groups. Money allocated to investments has decreased, and pre-COVID-19 plans are on hold.
View the full presentation below.