Disruption of social life, education key concerns: COVID-19 survey reveals
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A new survey assessing the behaviour of Sri Lankans during COVID-19 has revealed that nearly 2/3rds of the respondents felt that the crisis affected their families “only partially” while 30 per cent felt that they were impacted severely.
“Many felt that the impact was disruptive from many angles as expected but some did appreciate the opportunities that came with it also. Disruption of social life and education of children were the key concerns,” it disclosed.
The survey was conducted by NextWave Consultancy (Pvt.) Ltd, an independent market research agency amongst a sample of 32 decision makers or main shoppers in selected households living in urban areas of Colombo and Kandy districts. The company was founded in 2018 by Athula Eriyagama who was previously attached to Nielsen.
Field work was conducted on March 24-30 through a series of telephone interviews and e-mail survey employing a semi – structured questionnaire.
The survey revealed that uncertainty prompted the “survival instinct” coming out leading to irrational buying as consumers rushed to stock more of their daily essentials. In the process many had to change their usual purchasing habits such as how they pay. Nearly half the consumers had to transact through cash more than they would do under usual circumstances. Nearly 1/3 did credit transactions more than they usually do to compensate lack of ready cash in hand. However, 3/4th of consumers decisively purchased only essential items, cutting down non-essentials
Over 90 per cent of consumers were ready to pay more than the usual prices, 44 per cent managed to purchase their essentials at the usual prices and only 9 per cent actively looked for discounts
Although a majority of consumers opted to purchase more quantities compared to their usual basket of shopping only about 1/3 of consumers decided to buy larger pack sizes compared to what they usually buy in all categories such as food, household care, personal care, and beverages.
Consumer pack sizes
The survey revealed that in contrast nearly 40 per cent of consumers decided to stick to their standard pack sizes across all types of products. Downgrading on the pack size to buy more didn’t seem to be a wise choice although upgrading on selective basis depending on the product type was also evident.
Many consumers in the target group had no leeway to buy from their preferred choice of channel; the usual supermarket as they could not be accessed readily. Hence, the grocery store around the corner is where the majority spent their money on essential groceries. Though online purchasing was minimal for groceries 25 per cent saw an increase in their purchases online for goods and services in general.
Cutting down on non-essentials to stock more of essential items was a choice many consumers made during the crisis. This was evident in the choice of categories they decided to stock. Evidently, consumers were getting ready for maintenance while not focusing much on stocking impulse products such as yoghurt, carbonated soft drinks, ice cream, pre-cooked food items or chocolates.
Seeking info on TV, online news
The survey revealed that the need for information and entertainment was influential in changing the media habits of many consumers. Seeking out information led to the surge in increase in viewing time of local and international news telecasts on TV as well as actively surfing news online, more than usual for many families. Opportunity to spend some quality time with the family members at home and boredom were pushing them towards spending more time watching movies and entertainment programmes on the big screen, through Netflix and entertainment over YouTube.
Over 85 per cent visited the Internet more frequently than usual via mobile or the laptop. 75 per cent of consumers used mobile voice facility more than they would do under normal situations in order to stay connected. 88 per cent used mobile data more than they usually do to find ways to socialize as well as to visit news sites, stream movies, listen to music and songs. “Virtual socializing” as a gap-fill at times resorting to group video chats daily was common among a majority. Whilst many opted to visit the Internet or watch TV, 45 per cent opted to resort to more traditional pass times such as reading books, more than they usually do.
Key consumer behaviour shifts
and implications for marketers
Physical social isolation drives increasing use of other means of socializing through social media, whilst spending more time on TV and Internet for information and indulgence. There is a possibility that consumers opt to continue new found viewership patterns in the future that opens up new opportunities for brands in using a different media and channel mix for marketing and advertising e.g. increasing use of digital social media for direct marketing and different channel mix for advertising on TV.
Survival and maintenance become priority over spending on indulgence and impulse when it comes to spending on Fast Moving Consumer Goods and essential items: A behaviour that can also be expected in a recession. Products that are essential for maintenance can expect to perform better in times to come. This may open up new opportunities for products that had limited penetration so far.
Contrary to spending less during a recession consumers spend more and stock more as contingency either through upgrading to larger packs or buying more of the same pack size they usually purchase in groceries. Buying larger packs was evident more in the food category. Stocking smaller packs than usual in more quantities is not a choice. Convenience in using larger packs can influence future buying behaviour of consumers that would have a direct impact on marketing mix of manufacturers, stocking patterns and space management, supply chain management etc.
Rational decision-making is challenged as consumers become less price sensitive as they are prepared to pay more for the same grocery item they usually buy, and purchase more at the same time. Looking for discounts is rare. However, continuity may put pressure on the wallet, hence; this trend is expected to last only for a short period.
Consumers are ready to switch brands in essential groceries if necessary and opt to buy from a place that is readily accessible, foregoing usual shopping destination. This has the potential to impact brand and store loyalty in the future where efficient and consistent supply to manage key directly supplied general and modern trade outlets for a brand would become critical.
Brief surge and novel experience of purchasing essential daily items such as groceries and medicine online has the potential to open up new frontiers for brands, retailers, and suppliers to venture into e-commerce platforms and build innovative distribution models.
Consumers are ready for unplanned purchases and break boundaries of payment methods. The surge in the use of credit cards for buying consumer goods can create new habits of purchasing that would gift further opportunities for promoting credit cards as well as opportunities to convert general retailers to use credit-card paying facilities.