How COVID-19 Has Influenced the Purchase Patterns of Young Adults in Developed and Developing Economies: Factor Analysis of Shopping Behavior Roots
Abstract
:1. Introduction
2. Background
2.1. Crisis, Risk and Consumer Behavior
2.2. Online and In-Store Channels Choice Attributes
3. Methodology and Data
3.1. Survey Concept
3.2. Survey Description
3.3. Samples
4. Results
4.1. Descriptive Analysis
4.2. Factor Analysis
5. Discussion
5.1. Key Findings
- For both economies, we revealed the change in shopping behavior caused by the COVID-19 pandemic with strong online orientation in developed countries and a slight shift to online channel in developing economies. This effect is more pronounced for clothing/shoes and electronics that can be explained with store closure.
- The reduction of shopping frequency revealed more significant values in developed countries. Young adults’ rejection of buying electronics (durable goods) is revealed as a common feature for both economies. This finding confirms the study by Mishkin [42], Mian and Sufi [45] that covered the Great Depression and recession of the 2000th. Based on that, we can state that the COVID-19 pandemic has similar features to the economic crisis and provoked significant changes in consumers’ behavior.
- Along with shopping frequency reduction, we revealed the increase in average check values. Food products have the highest level of shopping expenditures increase within the commodities assessed for the developed economy. First priority goods were the main target of young adults in the developing economy with slightly less demand for foods. Comparing the two economies, we can state that young adults spent more money on food, medicine, and first priority goods than those of this age in developing countries. However, considering the difference in currencies, we can conclude that money expenditures on first priority goods were higher in developing economies in the light of household budgets.
- Comparing mode choice behavior in pre-pandemic and during COVID-19 times confirmed young adults’ concerns about necessity in social distancing for safety. Private cars and walking became preferable modes for shopping trips by young adults for both economies. In turn, the city transit significantly rejected for purchase commuting. This effect is pronounced more for the developed economy.
- Based on factor analysis, we revealed the common factors as “Pro-safe purchase” and “Belt-tightening” for both economies, reflecting the young adults’ awareness about safety that inclined people to purchase for stock purposes. Young people were inclined to cut their expenditures as some of them have lost their job or the employment status changed negatively (see Figure 6). Along with that, young adults from developed countries perceived a higher level of fear and danger, which was confirmed by the extracted factors as “Scare” and “Self-control shopping”. They revealed a strong intention to reduce social contacts and shift to online shopping. As for the developing economy, we determined the fewer level of danger and fear perceived by young adults. They were not afraid to visit physical stores but without any pleasure from the shopping process caused by the deployed restriction for shops entrance. Also, young people from developing countries intended to impulsive shopping to level the stress.
- According to polling, we evaluated the possible changes in young adults’ shopping behavior in post–COVID-19 time. Thus, Figure 10 reflects the percentage of adults’ readiness to return to pre-pandemic purchase channels. We can say that the intention to return to pre–COVID-19 purchase behavior is quite firm (76.89% of people want to use accustomed purchase channels). As for the developing economy, according to obtained results, we can state that the increase in online channel users can be characterized as a voluntary choice by young adults. It forms a massive opportunity for e-commerce deployment in post–COVID-19 time in developing countries. Thus, a raw 36% of young adults that shifted to online channel with home delivery options are ready to use this service in the post-pandemic time.
5.2. Policy Implications
- The rapid rise of the demand for e-groceries in the developed economies was inclined first of by the fear and safety concerns perceived by the young adults. But most people are ready to return to in-store shopping in post–COVID-19 times which is confirmed by this study results complementing other studies in this field for developed economies [90]. In this case, the emphasis of the supply chain and retail systems on online channel usage in post–COVID-19 times could cause the disbalance in the supply system due to consumers returning to in-store shopping. As for the developing countries, the e-commerce sector got a new level of the development as the online-oriented behavior of young adults was significantly less shaped with health concerns and perceived danger from in-store shopping. Given that, they are likely to use e-commerce in post-pandemic times. Lack of carrying capacities of the last-mile delivery system due to high demand for home deliveries should be eliminated by providing crowdsourcing-based technologies [91]. Thus, crowd-shipping allows the supply system in a brief period to react to the rapid rise in demand for home deliveries without any financial investments and risks accompanying them. Moreover, the last-mile system will be more flexible under such conditions than when commercial transport is used.
- To reduce the level of concerns caused by the restriction to the physical shops, the opening hours for grocery stores should be extended. The best option is to provision 24 h access for in-store purchases to allow people to schedule their shopping activity during the pandemic crisis. Given the factor analysis results, this issue is crucial for developing countries where the e-grocery option is not well developed.
5.3. Study’s Limitations
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Author(s) and Reference | Country(ies)/ City(ies) | Economy | Attributes | ||||||
---|---|---|---|---|---|---|---|---|---|
Gender (Male) | Age | Education | Number of Cars | Household Size | Income | Occupation (Student) | |||
Beckers, Cárdenas, Verhetsel [5] | Belgium/NA | Developed | Online | Online | |||||
Schmid and Axhausen [31] | Switzerland/Zurich | Developed | Online | ||||||
Farag, Krizek, Dijst [54] | Netherlands/Utrecht and USA/Minneapolis | Developed | Online | Online | Store | ||||
Soopramanien and Robertson [55] | UK/Lancaster, Morecambe, Brighton, Hove | Developed | Store | Online | |||||
Weltevreden [56] | Netherlands | Developed | Store | ||||||
Hsiao [57] | Taiwan/NA | Developing | Store | ||||||
Cao, Chen, Choo [58] | USA/Minneapolis | Developed | Store | Store | Online | ||||
Lian and Yen [59] | Taiwan/NA | Developed | Online | Online | |||||
Comi and Nuzzolo [60] | Italy/Rome | Developed | Online | Store | Online | ||||
Zhai, Cao, Mokhtarian, Zhen [63] | USA/Minneapolis | Developed | Store | Online | Online | ||||
Maat and Konings [64] | Netherlands/Leiden | Developed | Online | Online | Online | ||||
Hood, Urquhart, Newing, Heppenstall [65] | Great Britain/NA | Developed | Online | Online | |||||
Loo and Wang [66] | China/Nanjing | Developing | Store | Store | Online | Online | |||
Zhen, Cao, Mokhtarian, Xi [67] | China/Nanjing | Developing | Store | Online |
Region/Country | Developed Economy | Developing Economy | ||
---|---|---|---|---|
Units | % | Units | % | |
Total number of respondents | 515 | 81.49 | 117 | 18.51 |
North America | 78 | 100.00 | - | - |
United States | 59 | 75.64 | - | - |
Canada | 19 | 24.36 | - | - |
Europe | 406 | 100.00 | 30 | 100.00 |
United Kingdom | 181 | 44.58 | - | - |
Netherlands | 62 | 15.27 | - | - |
Germany | 51 | 12.56 | - | - |
France | 31 | 7.64 | - | - |
Italy | 23 | 5.67 | - | - |
Poland | - | - | 17 | 56.67 |
Portugal | 11 | 2.71 | - | - |
Other1 | 47 (a) | 11.58 | 13 (b) | 43.33 |
Australia | 31 | 100 | - | - |
Asia | - | - | 87 | 100 |
India | - | - | 29 | 33.34 |
Malaysia | - | - | 28 | 32.18 |
Other2 | - | - | 30 (c) | 34.48 |
Socio-Demographic Attributes | Developed Economy | Developing Economy | ||
---|---|---|---|---|
Units | % | Units | % | |
Age | 515 | 100.00 | 117 | 100.00 |
18–23 | 214 | 41.56 | 51 | 43.59 |
24–30 | 219 | 42.52 | 47 | 40.17 |
31–36 | 82 | 15.92 | 19 | 16.24 |
Gender | 515 | 100.00 | 117 | 100.00 |
male | 151 | 29.32 | 41 | 35.04 |
female | 364 | 70.68 | 76 | 64.96 |
Education | 515 | 100.00 | 117 | 100.00 |
school | 64 | 12.43 | 25 | 21.37 |
bachelor’s degree | 257 | 49.90 | 51 | 43.59 |
master’s degree | 184 | 35.73 | 35 | 29.91 |
PhD | 10 | 1.94 | 6 | 5.13 |
Household size | 515 | 100.00 | 117 | 100.00 |
1 | 82 | 15.92 | 13 | 11.11 |
2 | 142 | 27.57 | 15 | 12.82 |
3 | 112 | 21.75 | 21 | 17.95 |
4 | 109 | 21.17 | 40 | 34.19 |
5 and more | 70 | 13.59 | 28 | 23.93 |
Number of employees in household | 515 | 100.00 | 117 | 100.00 |
1 | 224 | 43.50 | 41 | 35.04 |
2 | 167 | 32.42 | 58 | 49.58 |
3 | 68 | 13.20 | 13 | 11.11 |
4 | 40 | 7.77 | 4 | 3.42 |
5 and more | 16 | 3.11 | 1 | 0.85 |
Number of cars in household | 515 | 100.00 | 117 | 100.00 |
0 | 128 | 24.85 | 18 | 15.38 |
1 | 160 | 31.07 | 44 | 37.61 |
2 | 133 | 25.83 | 30 | 25.64 |
3 | 51 | 9.90 | 17 | 14.53 |
4 and more | 43 | 8.35 | 8 | 6.84 |
Personal monthly gross wage | 515 | 100.00 | 117 | 100.00 |
No personal wage | 111 | 21.55 | 39 | 33.33 |
Low income | 259 | 50.29 | 27 | 23.08 |
Middle income | 77 | 14.96 | 31 | 26.50 |
High income | 68 | 13.20 | 20 | 17.09 |
Commodity | The Average Check for One Purchase, EUR | Change in Mean, Units/(%) | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Developed Economy | Developing Economy | Developed Economy | Developing Economy | |||||||
Before COVID-19 | During COVID-19 | Before COVID-19 | During COVID-19 | |||||||
Mean | SD | Mean | SD | Mean | SD | Mean | SD | |||
Food | 74.86 | 80.02 | 97.68 | 99.13 | 51.88 | 68.57 | 58.50 | 71.59 | 22.82/(30.48) | 6.62/(12.77) |
Medicine | 22.30 | 25.62 | 31.04 | 64.46 | 22.48 | 13.11 | 25.80 | 15.66 | 8.74/(39.20) | 3.32/(14.78) |
First priority goods * | 30.21 | 34.95 | 37.32 | 43.48 | 26.59 | 17.58 | 33.13 | 26.58 | 7.11/(23.54) | 6.53/(24.56) |
Clothing and shoes | 87.78 | 78.39 | 86.72 | 82.68 | 69.20 | 108.02 | 66.48 | 122.36 | −1.06(−1.21) | −2.72(−3.93) |
Electronics (gadgets, etc.) | 152.29 | 178.22 | 131.77 | 171.72 | 133.41 | 179.03 | 122.25 | 214.05 | −20.52(−3.47) | −11.16(−8.36) |
No | Survey Statement | Factor Loading | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Developed Economy | Developing Economy | |||||||||
Pro-Safe Purchase | Belt-Tightening | Scare | Self-control shopping | Pro-Safe Purchase | Belt-Tightening | Impulsive Shopping | Concerned Shopping | In-Store Safety | ||
1 | During COVID-19 I am forced to cut down on what I spend | - * | 0.633 | - | - | - | 0.698 | - | - | - |
2 | I feel safe and comfortable during COVID-19 when I am buying more | 0.545 | - | - | - | 0.417 | - | 0.560 | - | - |
3 | I am forced to buy more during COVID-19 to feel safe | 0.705 | - | - | - | 0.693 | - | - | - | - |
4 | The buying process helps me to abstract from current situation about pandemic | 0.622 | - | - | - | 0.504 | - | 0.575 | - | - |
5 | The products shortage forces me out to shop more often | 0.609 | - | - | - | 0.695 | - | - | - | - |
6 | I do not enjoy shopping the way I used to | - | - | - | 0.680 | - | - | - | 0.721 | - |
7 | I buy things I had not planned to purchase | 0.541 | - | - | - | 0.474 | - | - | 0.439 | - |
8 | I am too busy to buy as often as I would like | 0.416 | - | - | - | - | - | - | 0.670 | - |
9 | When I am stressed, I buy all sorts of things | 0.643 | - | - | - | - | - | 0.590 | - | - |
10 | It’s not necessary to hoard during a pandemic | - | - | −0.625 | - | - | - | 0.662 | - | - |
11 | During COVID-19 I buy only goods of first priority | - | 0.737 | - | - | - | 0.763 | - | - | - |
12 | During COVID-19 I buy the products online from home as safety is above all things | - | - | - | 0.489 | - | - | - | - | −0.526 |
13 | I was forced to buy the products under sense of urgency | 0.676 | - | - | - | 0.657 | - | - | - | - |
14 | I am not scared along with a physical store visiting during COVID-19 that I used to | - | - | −0.694 | - | - | - | - | - | 0.830 |
15 | I am scared of uncertainty in the future (after COVID-19), that’s why I try to save money | - | 0.442 | - | 0.493 | - | 0.742 | - | - | - |
16 | I try to buy more during COVID-19 as I am under pressure concerning shortages | 0.774 | - | - | - | 0.820 | - | - | - | - |
17 | I was forced to buy the products, feeling time-pressure | 0.717 | - | - | - | 0.739 | - | - | - | - |
Factor | Economy Type | Description |
---|---|---|
Pro-safe purchase | Developed, Developing | The physical safety of people was revealed as a valuable factor for both economies. It was reflected by the “Pro-safe purchase” factor meaning the purchases for stock purposes. It should be pointed that the safety-oriented statements have more significant loadings for the developed countries. We interpret this to mean that young adults from developed countries perceived a higher level of the personal risk during the first wave of COVID-19 than developing countries’ residents. The purchase of goods for personal safety was of high value and gave the possibility to reduce the risk and stress caused by the pandemic. |
Belt-tightening | Developed, Developing | The uncertainty about the duration of the pandemic and its impact on economy forced people to cut down costs. It complements the studies on the Great Depression [42,43] and the recession of the 2000th [45] and prove that COVID-19 should be referred to as a crisis state. The effect of “Belt-tightening” is pronounced more for the people from developing countries. According to statistics data, we suppose this is caused by the high correlation with the households’ low income for the developing economy (Table 3). In this case, the deprivation level should be higher for the developing economy, and the loading values support this assumption. |
Scare | Developed | It is well known now that social contacts must be restricted to prevent the spread of the COVID-19 pandemic [79]. According to the loading for the statement “I am not scared along with a physical store visiting during COVID-19 that I used to”, consumers from developed countries perceived a high level of fear and awareness about physical contacts In such conditions, people tried to reduce their in-store shopping activity by buying in more quantity products. This assumption is confirmed with the second loading for factor “Scare” “It’s not necessary to hoard during a pandemic”, which was obtained with a negative value. Also, people could shift to online shopping to minimize their physical interaction with other consumers. This assumption is supported by the revealed factor “Self-control shopping” that is described below. |
Self-control shopping | Developed | The pandemic crisis changed people’s attitudes toward the shopping process. The enjoyment during physical store visiting was reduced significantly due to self-control necessity. We state this according to the loadings obtained for statements “I do not enjoy shopping the way I used to”, “I am scared of uncertainty in the future (after COVID-19), that’s why I try to save money”, and “During COVID-19 I buy the products online from home as safety is above all things”. So, the pleasure, the emotional feature of the shopping, was substituted with the control, planning, and safety intentions that reflect the rational and self-control behavior. This factor complements the “Belt-tightening” factor with emphasis on purchase channel shift to online inline. In this case, we can state that the online channel was chosen voluntarily by the end-consumers. We cannot say that they were forced to do this because of some physical stores closure. |
Impulsive shopping | Developing | For some people from developing countries, the purchase process was considered a way to escape the pandemic crisis and perceived stress. The marked factor “Impulsive shopping” describes the purchase pattern that contradicts rational behavior during the crisis when people should save money. We explain this with perceived inconveniences caused by the lockdown and emergence of extra shopping behavior among people from the developing countries. We can assume that buying process during the pandemic gave people from the developing countries perception of “usual life” and safety. |
Concerned shopping | Developing | Factor “Concerned shopping” reflects the negative aftermath caused by the pandemic. First of all, people did not perceive any joy during the shopping process. However, opposed to the developed economy where people had a high level of perceived fear and scare (presented with factors “Scare” and “Self-control shopping”) factor “Concerned shopping” indicate a low level of danger. This is confirmed with the factor “In-store safety” revealed for the developing economy. It also should be noticed that factor “Concerned shopping” has some similarities with “Self-control shopping” detected for the developed economy, but there is a difference between them. The restrictions in mobility and stores access in the developing economy provoked discomfort and the necessity to buy goods not planned. It is supported with the loading value determined for the statement “I am too busy to buy as often as I would like”. We see that online channel did not substitute in-store shopping as it was revealed for the developed economy. Nevertheless, an increase in time expenditures for shopping due to safety protocols formed the concerned shopping phenomenon. |
In-store safety | Developing | The perceived danger attitude due to COVID-19 was revealed with the opposite effect in the context of developed and developing economies. Thus, the respondents evaluated the statement “I am not scared along with a physical store visiting during COVID-19 that I used to” with the highest positive loading value among all estimations for developing economy. It reflects the minor worries about in-store shopping activity during the pandemic outbreaks in developing countries. Complementing this, we obtained the negative loading value for the statement “During COVID-19 I buy the products online from home as safety is above all things”. It means people were not inclined to buy online during COVID-19 as it is a safer option than physical store shopping. We consider this result an interesting finding revealing fewer concerns about personal safety by the people in the developing countries than in the developed ones. Considering the descriptive analysis results, we can conclude that the significant shift of people to online channel was not driven by the scare and necessity for social distancing. This finding will be supported by statistical data on future people’s intentions on post–COVID-19 shopping channels discussed in the next chapter. |
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Rossolov, A.; Aloshynskyi, Y.; Lobashov, O. How COVID-19 Has Influenced the Purchase Patterns of Young Adults in Developed and Developing Economies: Factor Analysis of Shopping Behavior Roots. Sustainability 2022, 14, 941. https://doi.org/10.3390/su14020941
Rossolov A, Aloshynskyi Y, Lobashov O. How COVID-19 Has Influenced the Purchase Patterns of Young Adults in Developed and Developing Economies: Factor Analysis of Shopping Behavior Roots. Sustainability. 2022; 14(2):941. https://doi.org/10.3390/su14020941
Chicago/Turabian StyleRossolov, Alexander, Yevhen Aloshynskyi, and Oleksii Lobashov. 2022. "How COVID-19 Has Influenced the Purchase Patterns of Young Adults in Developed and Developing Economies: Factor Analysis of Shopping Behavior Roots" Sustainability 14, no. 2: 941. https://doi.org/10.3390/su14020941
APA StyleRossolov, A., Aloshynskyi, Y., & Lobashov, O. (2022). How COVID-19 Has Influenced the Purchase Patterns of Young Adults in Developed and Developing Economies: Factor Analysis of Shopping Behavior Roots. Sustainability, 14(2), 941. https://doi.org/10.3390/su14020941