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The Effect of Income Changes on Consumer Choices

The increases or decreases in the customers’ incomes always lead to budget shifts, which will imply the new purchasing behavior pattern. Many factors can influence the customers’ purchasing choices and adopt a new understanding of this process by the business holders and the whole market. The purchasing behavior strongly depends on the economic situation in particular countries and the world in general. The change in income is affected by such factors as the crisis, price changes, and others. The nowadays COVID-19 situation has a severe impact on the purchasing power and income of the customers, thus affecting their purchasing choices. Therefore, many scholars tend to analyze this shift and determine the correlation between the customer’s behavior changes and the COVID-19 crisis.

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In the recently posted article called “Changes in Consumer Purchasing Behavior Due to COVID- 19 Pandemic”, the author analyzes theoretical and practical aspects of the economy in order to evaluate the dependence of the customer’s behavior changes under the monthly income and surrounding factors (Akter, et al., 2021). The main idea of the article is that the economic crisis caused by the COVID-19 implied the crucial change in the customers’ purchasing choices due to the health risks, and changing lifestyles. The article includes the results of generalizing the theoretical framework and research findings.

The first part of the article is devoted to the economic literature review. The author emphasizes that various scientific research held that the monthly income, emotional motivations, and economic situation are crucial elements contributing to the customers’ choices (Akter, et al., 2021). Focusing on the crisis, the author states that it affects the customers’ outcome severely due to the increase in the unemployment rate and currency depreciation (Akter, et al., 2021). It also mentioned that customers try to postpone buying huge goods because of the change in income. However, considering the current situation, the incomes are not likely to develop in recent years. Therefore, the COVID-19 pandemic caused a crisis that has affected the income of the customers and changed the priorities of purchasing.

The next section of the article discusses the correlation between customers’ buying intentions, income, and the current virus situation. Providing the precise analysis of the recent research on this topic, the author of the article claims that due to the COVID-19 risks, many people spend most of their money on protection measures and improvement on the home space (Akter, et al., 2021). The author goes on to say that demand and customers’ choice peculiarities always result from the buying power, which is in turn developed in accordance with economics, life conditions, and income of the individual (Akter, et al., 2021). Thus, the buying intentions changed accordingly to the urgent needs of the customers, have another character nowadays.

The next part of the article focuses on presenting the results of practical research, which aimed to represent the correlation between the changes in customers’ behavior and the current situation in the world. The author states that the customers’ behavior choices were mainly influenced by the COVID-19 risk avoidance, and caused by the crisis the decrease in income of the people (Akter, et al., 2021). In conclusion, the author describes that the data from the theoretical research comply with the practical experiments and states that “safety concern, imposed restrictions, financial conditions and incomes, surrounding environment people,… caused a remarkable change in consumer buying behavior”(Akter, et al., 2021). Therefore, the article depicts that the customers’ choice depends on many factors, and income is one of the most crucial ones.

Speaking about how the topic of the article is correlated with the course of study, it is necessary to mention that this paper confirms many of the studied points. For example, that the various economic circumstances verify the development and changes in the customers’ demand. According to the Consumer theory, the income-consumption curve shows that the increase of the buying power and the well-developed country economy contribute to the demand’s growth.

The article also states that the change in income contributes to the redistribution of money and prioritized goods. Thus, during the crisis, the substitutes will be prioritized over the inferior goods. The article states that this process is in action now because of the income and economic change. The article also claims that people nowadays spend their income on virus protection measures which means that the business sphere is also harmed severely. Currency depreciation and crisis caused the decrease in personal income. As a result, people will rather buy cheap goods and avoid buying branding products and services. Therefore, many businesses will be cornered and have no other options but to reduce production to avoid bankruptcy.

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The reviewed article corresponds to the study topics and reflects the recent economic changes in terms of the customers’ income and purchasing choice correlation. COVID-19 crisis has changed the pattern of the buying choice making it more limited and commodities oriented. The life-threatening conditions, economic crisis, and currency change are substantial factors influencing the income of people. Therefore, income changes have a significant impact on the consumer’s choices.

Reference

Akter, S., Ashrafi,T., & Waligo, V. (2021). Changes in consumer purchasing behavior due to COVID- 19 pandemic. Journal of Marketing and Consumer Research, 77(7), 33-46. Web.

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StudyCorgi. (2022, October 7). The Effect of Income Changes on Consumer Choices. Retrieved from https://studycorgi.com/the-effect-of-income-changes-on-consumer-choices/

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StudyCorgi. (2022, October 7). The Effect of Income Changes on Consumer Choices. https://studycorgi.com/the-effect-of-income-changes-on-consumer-choices/

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StudyCorgi. 2022. "The Effect of Income Changes on Consumer Choices." October 7, 2022. https://studycorgi.com/the-effect-of-income-changes-on-consumer-choices/.

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StudyCorgi. (2022) 'The Effect of Income Changes on Consumer Choices'. 7 October.

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