Short answer

Anticipate and design for predictable consumer behaviour shifts during crises, leveraging media insights to inform communication and product availability.

Field: Innovation & Design
Source: Journal of risk and financial management (2020)
Method: Literature Review and Data Analysis
Evidence: Strong effect

Consumer responses to crises, such as panic buying and shifts in discretionary spending, exhibit predictable patterns that have been observed across multiple historical shock events. This innovation & design research insight is drawn from a 2020 study published in Journal of risk and financial management. Using Literature review and data analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Anticipate and design for predictable consumer behaviour shifts during crises, leveraging media insights to inform communication and product availability.

Study

Innovation & DesignHigh ImpactStrong effect

Crisis-Driven Consumer Behaviour Mirrors Historical Patterns

Consumer responses to crises, such as panic buying and shifts in discretionary spending, exhibit predictable patterns that have been observed across multiple historical shock events.

Journal of risk and financial management · 2020

Key Findings

01Consumer behaviour during the COVID-19 pandemic, including panic buying and shifts in discretionary spending, aligns with patterns observed during historical shock events.
02Media plays a significant role in influencing consumer behaviour during crises.

Application

Design takeaway

Anticipate and design for predictable consumer behaviour shifts during crises, leveraging media insights to inform communication and product availability.

How to apply

When designing products or services that might be affected by global events, consider how historical crisis behaviours might manifest and how media narratives could influence adoption or demand.

Project actions

01When researching a product, consider how it might be affected by or used during a crisis.
02Look for patterns in consumer behaviour during past events to predict future trends.

Method & Evidence

AimHow do consumer behaviours like panic buying, herd mentality, and changes in discretionary spending during the COVID-19 pandemic compare to those observed during previous global crises, and what role does media play in influencing these behaviours?

MethodLiterature Review and Data Analysis

ProcedureThe research involved a comprehensive review of existing literature on consumer behaviour during crises. This was supplemented by an analysis of consumer spending data (focusing on Australian and American markets) to examine spending volumes, timing, and distribution across different product categories. Media influence was assessed through web traffic analysis and keyword data mining.

ContextGlobal Crises and Consumer Behaviour

Variables

IV["Occurrence of a crisis event (e.g., pandemic, natural disaster)","Media coverage and messaging"]

DV["Panic buying behaviour","Herd mentality adoption","Changes in discretionary spending (e.g., luxury vs. non-durable goods)"]

CV["Economic conditions prior to the crisis","Cultural norms of consumer behaviour","Government responses and policies"]

Strengths & Limitations

Strengths

+Integrates literature review with empirical data analysis.
+Compares current crisis behaviour to historical precedents.

Limitations

The study's focus on specific markets and the early phase of a crisis means findings might not apply universally or over extended periods.

Reliability & validity

The study's reliance on existing literature and aggregated spending data may limit direct control over variables. However, the convergence of findings across different data sources (literature, spending data, media data) strengthens its validity.

Think critically

To what extent might the unique nature of the COVID-19 pandemic (e.g., global interconnectedness, digital communication) have altered these historically observed consumer behaviours?

Design Principles

"Design for resilience by understanding and anticipating human behaviour under stress."

Understanding these recurring consumer behaviours during times of uncertainty is crucial for businesses and designers. It allows for more effective product development, marketing strategies, and supply chain management, enabling a more resilient response to unforeseen global events.

What This Means for Your Design

People tend to buy a lot of essentials and cut back on luxuries when something big and scary happens, just like they have in the past, and what they see in the news affects their choices.

How to use in your project

1.Reference this study when discussing how societal events might impact the demand or use of your designed product.
2.Use the findings to justify design choices related to product availability, marketing, or features that address consumer anxieties during uncertain times.

Add to My Project

Quick Cite

Paragraph starter

Research indicates that consumer behaviour during crises, such as panic buying and shifts in discretionary spending, follows predictable patterns observed across historical shock events, with media playing a significant role in influencing these responses. This suggests that designers should anticipate and plan for such behavioural shifts when developing products or services that may be impacted by societal uncertainties.

Source

Journal of risk and financial management

Consumer Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the Role of the Media in Influencing Behaviour

journal · 2020

View source

Questions About This Research

What does the research say about crisis-driven consumer behaviour mirrors historical patterns?: Anticipate and design for predictable consumer behaviour shifts during crises, leveraging media insights to inform communication and product availability. Evidence: Journal of risk and financial management (2020).
Why does "Crisis-Driven Consumer Behaviour Mirrors Historical Patterns" matter for design?: Understanding these recurring consumer behaviours during times of uncertainty is crucial for businesses and designers. It allows for more effective product development, marketing strategies, and supply chain management, enabling a more resilient response to unforeseen global events.
How can designers apply this research?: Anticipate and design for predictable consumer behaviour shifts during crises, leveraging media insights to inform communication and product availability.
What were the main findings?: Consumer behaviour during the COVID-19 pandemic, including panic buying and shifts in discretionary spending, aligns with patterns observed during historical shock events.. Media plays a significant role in influencing consumer behaviour during crises.
What research method was used?: Literature Review and Data Analysis.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2020 journal from Journal of risk and financial management.
What should I do differently in my next project?: When designing products or services that might be affected by global events, consider how historical crisis behaviours might manifest and how media narratives could influence adoption or demand.
What are the limitations?: The research focused on the early stages of the COVID-19 pandemic, and longer-term behavioural changes may differ. The analysis of consumer spending data was largely concentrated on Australian and American markets.