Risk based approach to documenting consumer behavior changes during the COVID-19 pandemic

Abstract

The purpose of the research was to analyze the implications consumer behavior changes have on a long-term business activities and their future development. The analysis was based on risks related to these changes and their immediate and long-term effects on businesses. A list of 24 individual risks was created based on the findings of empirical study. The 6 most significant risks were further analyzed in terms of their impacts on societies. The increase in amount of products bought by consumers during the pandemic was the most severe risk. The findings provide businesses with guidelines to define their strategic goals and means to flexible adjust them when the next pandemic arises in the frame of sustainable development. Although the main cause of observed product brand substitutions that occurred during the pandemic was the lockdowns and production slowdown, many consumers also changed their preferences, which resulted in the substitution of products for other brands. Evidence shows that during the pandemic, consumers paid more attention to the ratio of price and quality of the product. However, social conscience will always be in conflict with selfish needs that also proved significant during the pandemic since excessive stockpiling and increase in waste production were observed.