A study conducted by Sales Factory during the early months of the COVID-19 pandemic demonstrates just how quickly consumer attitudes and sentiment can change. In just one week, the level of concern over coronavirus increased substantially, which greatly impacted how consumers shopped and spent over the remainder of the year. Sales Factory fielded a national benchmark survey on March 6, 2020, with a follow-up wave fielded on March 13. Nearly 1,600 consumers participated in the surveys.
“In just one week, the huge swings – both down and up – in the stock market, the implementation of international travel bans, the postponement or cancellation of major sporting events and leagues, and the declaration of a national state of emergency all came together to significantly change consumers’ attitudes toward the disease and the economy,” said Ged King, chief executive officer for Sales Factory. “We’re seeing positive changes in the acceptance of social distancing. We are also seeing an increase in people that might delay a major purchase, but still expect to complete them in the next 12 months. The bright spot is e-commerce. Barring distribution challenges, it is an opportunity for brands to help consumers.”
Coronavirus also disrupted consumers’ willingness to make major purchases, which had ramifications at retail. The events that unfolded tempered consumers’ willingness to commit to major expenses during this time period, demonstrated by a substantial decrease in the number of consumers who said they planned to proceed with major home and auto purchases that year.
As additional retailers announced store closures of two weeks or more in March of 2020, consumers grew more concerned about their ability to get the basic household items that would carry them through a protracted quarantine. As a result, more consumers turned to online shopping to meet their needs.
Consumers believed an outbreak was coming, but didn’t believe employers would be ready for it.
The study found that 71% of consumers were confident that taking extra steps to protect themselves (e.g., avoiding crowds, washing hands more frequently) would minimize the likelihood that they would get coronavirus. This figure was an improvement from the 64% reported in the previous week. While confident in their own ability to protect themselves, there were concerns about the population at large.