Effects of Economic Crisis on Food Consumption Behavior of British Consumers

Introduction

Economic crisis has a negative impact on the non-financial and financial firms as well as consumers in the contemporary society. It is because it affects both the micro and macro segments of the economy. The primary impacts of the crisis comprise of the increment in costs levels, low working hours, stagnation in wages and unemployment. During the crisis, the buyers tend to feel insecure due to the decline in the job opportunities and a decline in the economic activities during the period. The companies are also undergoing an interruption in acquiring credits since banks issue smaller credits and being under a constant pressure by the public to lower prices. Therefore, the difference in the companies and the consumers' behavior will tend to be different and their reaction to the effects of the economic crisis will be dissimilar.

The Purpose of the Research

The main purpose of the study is to investigate the effects of the economic recession on the United Kingdom consumers' food purchasing behavior. It is due to the failure by the previous studies to fully explore the impacts of the economic crisis on the consumers purchasing behavior. These were set by an objective of identifying the dynamism in the food buying behavior, explore whether there is a change in the consumers' preferences as far as brand and quality is concerned and determine whether economic crisis have a positive or negative effect on consumers environment consciousness. These will aid in policy formulation by the government and non-governmental organizations.

The Evaluation of the Model or Research

The research methodology is quite paramount for any research. In this study, the data was collected by the use of a questionnaire. The questionnaire was designed in a semi-structured way to allow the researcher to ask both open and closed-ended questions. Through the use of this methodology, the researcher was able to collect the consumers' opinions which were vital in carrying out the statistical analysis. During the data collection process, some other various techniques were put into practice. These comprise of the use of Likert scale, rankings and attitude statements. During ranking, the respondents were asked to rank their items in order of their importance while in Likert scale, the respondents were disclosing the agreements and disagreements of proposition and importance they attach to the factors based on a set of standard responses.

Description of the Population of the Study

In this study, the population did comprise of all the consumers in the entire United Kingdom. The samples from the population were taken with the main focus on the consumers residing in London. It is due to the ease of access to the consumers who live in the city. The participants in the study were selected from a wide group to ensure that the selection process is not limited to particular retailers. These enabled the faster collection of data which was to be used in the analysis process.

Sample Size and Sampling Strategies

During the selection of this sample, the convenience sampling method was put in practice. It is due to the fact that it's a non-probability sampling method which did allow the researcher to conveniently choose the samples to be used in the analysis and research predictions. While carrying out the sampling process, there were no classifications during the selection of samples but rather selecting the pollution without biases. The sample size was totaling to 75 from the entire populations. Due to this number, 75 questionnaires were distributed to the chosen consumers. After filling their response, all the issued questionnaires were collected from the sample size.

Description of the Instruments Used in the Analysis

In the description and analysis of data, the interpretive and statistical techniques were put into use. In relation to carrying out the statistical analysis, the Statistical Package for Social Science (SPSS) was employed. The frequency analysis was conducted to questions that are designed as closed-ended. On the other hand, during the analysis of the data collected through open-ended questions, the first teaming method was employed. The coding of the findings was done to ensure that they are converted into a quantitative data.

The Findings of the Research

From the study, it was found that even though the country faced an economic crisis, the consumers' confidence on spending and their shopping habits did not change despite the economic crisis which they were exposed to over time. The results manifest that the consumers failed to switch to the unbranded products or started to buy the products in smaller packages. Besides, in some circumstances, there is a resistance to changes in the shopping habits despite the impacts of the crisis. For instance, even though a large number of customers did switch to cheaper products, still a significant number turns up to purchase the same products they initially prefer. These are the same tastes shown to the domestic brands when compared to the foreign demands of products. However, the findings tend to show that the economic crisis change the shopping habits, spending and consumption patterns of the consumers but it does not lead to the total abandonment of the initial usual shopping patterns. Therefore, the change normally occurs in the preference of the product then to some extent move to the consumers' confidence. It is advisable to remember that the consumers are always pursuing their choices which develop with time to be their shopping habits. These encompass preferences about the brand choices. Also, the results show that the consumer does not change the consumption motivators despite the impact of the economic crisis they face over time. For example, most consumers did not reduce the purchase of the red meat or poultry meat due to the economic crisis. They did not start consuming the fast foods since their tastes and preferences did not favor that over time. Similarly, they did not change their preference for the consumption of fast foods as oppose to cooking because they are cheaper. However, the United Kingdom's consumers still maintain their balance diet, take into consideration the effects of food production on an environment, and did switch to the economy ranges of food from the finest or luxury ranges. Besides, in relation to the consumption patterns, the consumers did show loyalty to their favorite retailers and the preference is influenced by the prices as opposed to the expensive retailers. However, these observations were not consistent with the finding got by Ang et al., (2000). The study also did shows that a good number of the consumers were indifferent to whether it is the price which has the highest priority as compared to the quality of the produce. They were also indecisive whether to change to cheaper brands in their food purchases, whether to switch from organic to non-organic foods and whether to buy goods in small quantities or in bulk. They were also undecided whether to incorporate or avoid the unnecessary products such as sweets, snacks, and pastry. Moreover, the results depict that the consumers do not give preference to the locally manufactured products over the foreign products on one hand and a significant number of consumers are indifferent on whether to purchase the locally produced or foreign products on the other hand. Therefore, the study does show that economic crisis does not affect the behavior of all consumers but rather makes some to change their consumption pattern.

Conclusion

From the analysis done in the study as well as the findings, it can be concluded that it is the level of income which defines the consumption patterns and behavior. It is due to the elasticity of food and the risks which are embedded in the quality of the products sold in the United Kingdom's good market. However, the study reveals that consumers switch to the cheaper but necessary products while others continue to pursue their usual shopping behaviors. In regards to the food motivators, the study has found that despite the economic crisis, the consumers cannot give up on their several preferences which are mainly influenced by the feel-good factor. Besides, it can be related to the fact that the environmentally friendly products, healthier products, and organic foods offer consumers numerous benefits as compared to other types of foods (In-organic foods). When consumers take these class of produce, they will remain healthy, promote social responsibility towards the environment as they feel the luxury which is embedded in it. It's thus the sole explanation behind the consistent feeding habits experienced among the consumers despite the effects of the economic crisis.

References

Basev S.E, (2014) Effects of Economic crisis on Food Consumption behavior of British Consumers. International Journal of Education and Research. Vol. 2. No.10. http://www.ijern.com/journal/2014/October-2014/24.pdf