Impact ofCOVID‐19 pandemic on household financial decisions: A consumer vulnerability perspective

Atefeh Yazdanparast; Yasser Alhenawi

doi:10.1002/cb.2038

journal article Feb 21, 2022

Impact ofCOVID‐19 pandemic on household financial decisions: A consumer vulnerability perspective

Atefeh Yazdanparast

Yasser Alhenawi

Journal of Consumer Behaviour Vol. 21 No. 4 pp. 806-827 · Wiley

View at Publisher Save 10.1002/cb.2038

Abstract

AbstractThis study joins a rapidly growing body of research that investigates the multi‐faceted impacts of the Covid‐19 pandemic on consumers' behavior. Specifically, we examine how the pandemic‐induced state of vulnerability impacts consumers' saving, investing, and spending decisions. Using survey data from four different countries (i.e., USA, UK, South Africa, and Mexico), we examine the role of personality on consumer vulnerability, create an index of consumer vulnerability, and establish the role of vulnerability in impacting important financial decisions. We report evidence that perceptions of vulnerability and the pandemic‐induced changes in financial and consumption behaviors vary across residents of developed and developing countries. The results indicate that vulnerability is experienced and reflected through a multitude of fears and concerns and is influenced by personality traits (agreeableness, neuroticism, conscientiousness, need for material resources, and need for body resources) and can result in increased spending on products/services that are not normally perceived as necessities. Our findings carry important theoretical and managerial implications.

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Citations

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References

Details

Published: Feb 21, 2022
Vol/Issue: 21(4)
Pages: 806-827
License: View

Authors

A

Atefeh Yazdanparast

School of Management Clark University Worcester Massachusetts USA

Y

Yasser Alhenawi

College of Business Ajman University Dubai United Arab Emirates

Funding

Ajman University Award: 2020‐Covid19‐18

Cite This Article

Atefeh Yazdanparast, Yasser Alhenawi (2022). Impact ofCOVID‐19 pandemic on household financial decisions: A consumer vulnerability perspective. Journal of Consumer Behaviour, 21(4), 806-827. https://doi.org/10.1002/cb.2038

Impact ofCOVID‐19 pandemic on household financial decisions: A consumer vulnerability perspective

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