The Global Business Crisis and Consumer Behavior

Topics: Economics, Crisis, Financial crisis Pages: 2 (430 words) Published: March 31, 2013
The Global Business Crisis and Consumer Behavior:
Kingdom of Bahrain as a Case Study
Durra Mansoor & Akram Jalal
January 2011
This research aims to learn how Bahrain consumers affected by global financial crisis since 2007. Additionally, it focuses on changes in consumer behavior after global crisis. The result of this research is based on questioner analysis which tries to measure knowledge about global crises to randomly selected consumers in Bahrain. The World is facing with economic challenges. America, powerful Europe and Asia affected by financial crises in some different levels. The global financial crisis affected all consumers in the World not only economically but also psychologically. This new financial situation increased panic and uncertainty on consumers in globe. In hard and stressful times such as economic crises, consumer behavior changes have occurred. Because of FC, consumers changed their behaviors by reducing their consumption. People became money-minded and they don’t want to spend money for premium products anymore, and they prefer cheapest products. They redefine “necessities” and “luxuries”. So, they only buy the things which are taking place on their shopping list. They’re comparing products and making their choices by compromising quality. Some of them started to manage their income by searching on e-commerce websites to catch best price. They are planning their purchasing by postponing expenditures like discretionary expenditure to make savings. Thus, their total expenditure amount decreased because of global crisis. According to Mansoor and Jalal (2011), the role that consumers play in these days is very crucial to business’ survival. It is driving force behind the success of many businesses, because most of the contemporary consumers spend major time on buying decisions. Consumers buying decision is changing person to person. However, after economic crises, consumer started to spend much time for information and...
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