US consumer behavior, plans post-crisis shifting

The COVID-19 pandemic is significantly altering US consumer behavior and plans post-crisis, an IBM Institute for Business Value survey finds.

In the study conducted in April, over 25,000 US adults were polled. The purpose of the research was to learn how the current pandemic has changed their viewpoints on several different issues, including transportation, future attendance at events in large venues, retail spending and returning to work.

Numerous consumers said they intend to cut down on – or completely discontinue – their use of public transportation and ridesharing.

Over 20 percent of respondents who often used subways, buses or trains said they would not any more, and another 28 percent said they expect themselves to use public transportation less frequently.

More than 50 percent who used ridesharing services and apps said they would either cut down on the use or completely stop using. Only 24 percent indicated they will no longer use taxis and other conventional car services.

Many respondents said they are less likely to go to huge gatherings following the crisis, but are more likely to go to sporting events.

Over half of the people polled said they are unwilling to expose themselves to large crowds for the remainder of the year. Seventy-Five percent indicated they are unlikely to attend an in-person trade show or conference this year. Bars and restaurants were a different story, however, as over one-third said they will visit these, while just nearly ten percent said they will not. Another favorite was outdoor parks. One-third said they are very likely to visit one following the lifting of restrictions. About 25 percent also said they will be ready to go to the beach and one in five will be ready to shop at malls and shopping centers.

Several said there will be changes in the way they’ll make purchases, including more use contactless payment technologies when buying things.

About 40 percent said they are likely to make use of contactless payment options via their mobile device or credit card. Over 75 percent said they are visiting stores to buy essential goods. Consumers in the Northwest, however, were more likely to purchase essential goods online and have them shipped to home or another destination.

Twenty-Five percent the people surveyed said they are now making purchases at locally owned stores more often and purchasing more locally made, grown or sourced products.

Several respondents expressed they will be hesitant and reluctant to buy a new car because of personal finance challenges arising from the ongoing pandemic.

Over 25 percent said that a lack of confidence in the US and global economic outlook will affect their decisions to buy a car, with about the same number stating they would be delaying for over six months. Respondents noted that incentive programs are not likely to change their minds.

IBM Services senior managing partner Jesus Mantas said, “The study provides further evidence that COVID-19 is permanently altering U.S. consumer behavior. There are long term implications of the new consumer behaviors for industries like retail, transportation, and travel among others. These organizations need to quickly adapt their business models to serve the new consumer behaviors in order to survive and thrive.”

Image via press release