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As a result of the pandemic, consumers made sudden changes in their buying behavior. Some of the changes included moving to online over physical shopping activities and buying from retailers they did not usually patronize which, in part, resulted in a loss of loyalty for some brands. An extreme shift in demand for many essential items shocked the supply chain and, as a result, smaller companies felt the shock most acutely as suppliers worked to stock larger store orders. Hoarding or pantry-loading by consumers kept the heat on the supply chain. Consumer confidence, which is a key economic indicator for an economy, fell causing a reduction in consumer spending which also rocked the economy and sent the stock market spiraling down for a short time. And, of course, consumers, due to some state lockdowns and other restrictions, found themselves looking to re-create their personal and business lives at home.
Please do some research on an area of consumer behavior discussed in the book or from your own experience or from another credible source (i.e. brand manager) that has been affected by the pandemic. What are industry insiders saying is the current thinking regarding the issue you chose? What are the potential pitfalls of inaction? What can be done to reverse the effects of this issue? You are looking at one particular area that affected or was affected by sudden changes in consumer behavior and developing a basic strategy to ensure customer loyalty going forward. Some brands spend millions of dollars annually to protect their brands and to maintain their identity with their customers. A loss felt by any component in the process can equate to not only a financial loss but can irreparably harm the nature of the brand in the consumer's viewpoint. Now, think about what happened in the early months of the pandemic. What were some of the issues that affected brands that are related to consumer behavior or behavioral changes?
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