Jurnal Ekonomi dan Bisnis.
Vol.
11 No.
4 Desember 2022
P - ISSN
: 2503-4413
E - ISSN
: 2654-5837.
Hal 122 Ae 131
CONSUMER BEHAVIOR DURING THE COVID-19 OUTBREAK: AN ANALYSIS FOR
DECISION MAKING.
PREFERENCES AND FUTURE CONDITIONS
By :
Haile Qudrat Djojodibroto 1.
Istiningsih2.
Rum Mohamad Andri K.
Universitas AMIKOM Yogyakarta.
Indonesia Article Info Article History :
Received 16 Des - 2022 Accepted 25 Des - 2022 Available Online 30 Des Ae 2022 Abstract The COVID-19 outbreak has caused a catastrophic global terror.
Several industries have been impacted.
Customers' dissatisfaction is a challenge to coffee business entrepreneurs.
It has an effect on coffee consumer behavior, particularly purchases made at coffee shops.
The purpose of this study is to evaluate consumer motivation to buy coffee and the decisionmaking process of consumers buying coffee during a pandemic.
This article provides an in-depth examination of the elements that influence customer behavior and purchasing decisions in marketing.
Discerning patterns to rectify these requirements, making purchasing decisions such as whether to purchase goods and services and, if so, which types of brands and where, interpreting advice, establishing plans, and carrying out these plans, such as comparative shopping or actual product purchases.
Totally, contemporary and professional marketing staff strive to understand customers and their answers, and so they analyze the key characteristics of their behavior.
Keyword :
consumer behavior, covid-19, coffee shops, decision making, coffee consumption.
reached 3,000 outlets .
tores with large chain.
, not including small or independent coffee shops.
This number is 3 times higher than in 2016, which only amounted to 1,000 outlets.
Local favorites such as Janji Jiwa.
Kopi Kenangan, and Fore have had approximately 150300 chains in three years.
Kopi Janji Jiwa has 500 chains.
Fore has 100 chains, and Kopi Kenangan has 175 chains.
Meanwhile.
Starbucks, the coffee shop pioneer, has 421 locations.
According to the Toffin & Mix survey .
, high coffee consumption in Indonesia is driven by generation Y and generation Z, who are tech-savvy.
After all, in early 2020, the world was stunned by a new virus, namely the COVID-19 By this time, the world is entering a pandemic, including Indonesia.
The Indonesian government is seriously taking action in this serious time.
The government has taken various steps and procedures to prevent its wider spread and declared it a national disaster (Sekretariat Kabinet RI, 2.
In order to prevent this outbreak.
Indonesian government has taken action to prevent this outbreak by making workers to work from home (WFH).
Based on the COVID-19 Response Acceleration Task Force (Gugus Tugas INTRODUCTION The growth of coffee shops in Indonesia is very significant.
This coffee consumption trend is influenced by a variety of factors, including the existence of social media, the improvement of living standards, and the growth of the younger population, particularly Generation Z .
Ae24 years ol.
and Generation Y also known as millennials .
Ae39 years ol.
According to the Toffin & Mix .
survey, generations Y and Z are heavy coffee drinkers who prefer quality at a reasonable The habit of drinking coffee as a mandatory routine has become a lifestyle for some people, especially for Generation Y and Z.
The onerous workload is one of the reasons people are drinking coffee this day.
People's coffee-drinking habits are being followed by a growth in business in the coffee shop Many individuals are concerned and seeking to relax as a result of the current epidemic.
During the epidemic, several coffee shop enterprises have sprouted up.
The presence of this phenomenon makes coffee entrepreneurs a promising business opportunity and offers onestop shopping.
According to (Kurniawan, 2.
, the number of coffee shops in Indonesia has almost Percepatan Penanganan COVID-.
, the number of patients is increasing rapidly day by day.
As of March 23, 2022.
Worldometer released data showing the total number of positive cases in Indonesia reached 5,981,022 cases.
Figure 1: Total Coronavirus Cases in Indonesia with customers.
Entrepreneurs need to provide a high quality of products and services.
This will result in a satisfied and loyal customer (Fesikovy.
Based on a brief summary of several types of ready-to-go coffee shops in Indonesia, which share many similarities in product variations, marketing techniques, and target markets, it becomes a challenge for each brand to make their brand stand out.
In this case, many coffee drinkers during the pandemic are stressed and in unstable Whether this will affect their choice of choosing the right coffee, in particular, is time.
Kotler and Armstrong's .
stated that cultural, social, personal, and psychological aspects all have an impact on consumer behavior.
One of the most significant things to consider is the purchase decision, because it will be a consideration in the company's future marketing A company's success cannot be separated from the process of purchasing decisions generated by elements that influence customer behavior.
Purchasing decisions are made by consumers before and after purchasing a product.
Source: Worldometer, 2022 This outbreak puts the world at risk of the worst economic recession in the history of the world economy in the last 50 years.
It also poses a serious physical and mental threat to humans and affects their daily lives.
During the pandemic.
BPS (Central Bureau of Statistic.
conducted a survey showing that more than 80 percent of businesses experienced significant revenue loss.
Income declines by more than half for small and mediumsized businesses, compared to about 29 percent for large businesses (Eka Chandra Buana et al.
, 2.
This certainly impacted a number of sectors.
Small and medium enterprises (SME.
like restaurants, cafes, and food stalls are having a hard Coffee shops are mostly affected by the Many of its customers switch from drinking coffee at home to ordering it to go, this concerns every coffee shop owner's ability to make Because during a pandemic, people are scared to have contact with other people and have limited time in restaurants and cafes.
It is important for coffee shop owners to hear their customers' needs by understanding this.
According to Kothler & Rath .
, in order to keep clients loyal, companies need to create their own individuality and uniqueness to retain their customers.
Customers would be satisfied with universal items that included various lineaments, such as performance or quality Apart from offering products and services, an industrial corporation must also assess its ability and production capacities in order to organize the needs of its customers.
Customer loyalty is an important part of business in order to create mutual benefit and a long-term relationship
LITERATURE REVIEW
CONSUMER BEHAVIOR
Marketing begins and ends with the customer.
hence, consumer purchase decisions show how successfully the organization's marketing strategy fits marketing demand.
Consumer behavior encompasses the psychological processes that customers go through in order to comprehend their Analyzing consumer behavior helps to determine who the customers are, what they want, and how they use and respond to items.
Marketing staffs analyze consumer desires through conducting surveys (Furaiji, et al, 2.
Consumer behavior studies attempt to identify the purchaser's decision-making process, both personally and It analyses personal consumer traits like, demographics and behavioral variables in a strive to know the human beings wants.
study of consumer behavior admits for boost knowing and predicting relevant to not merely the issue of buys although buying aims and buying regularity (Schiffman, et al, 2.
Some theorists like Fredericks and Salter .
Rowley .
and Blackwell et al.
advocated that the uniqueness of the product is significant in order to create, maintain and comprehend the factors influencing consumer satisfaction.
However, in order to be satisfied, customers must understand the product and accept the company's standard.
Furthermore, consumer behavior can be assessed from two perspectives: the decision-making process associated with consumer purchasing and the variables influencing the purchasing process.
Every marketing effort aims to satisfy consumers' demands and requirements.
As a result, the consumer of the company plays a crucial role in ensuring the continuation of the firm's operations.
Understanding customer behavior is difficult since each consumer has a different income, age, education, and taste background when purchasing a product.
throughout their entire lifespan.
Differences and changes in their tastes of clothes, foods, furniture, refreshment products or services vary among children, teenagers, adults, and old people.
Esterby-Smith et al.
stressed that an individualAos personality is considered to be a selfconcept and self-perception which influences on his choice to purchase an item.
This factor is regarded as an instrument for consumers to interact in the society.
The last factor is the psychological factor which is the perception, motivation learning, attitudes and beliefs.
This factor is regarded as an instrument for consumers to interact in the society.
By recognizing their feelings, scrutinizing the information and articulating their thoughts and opinions, firms and marketers can take actions to satisfy the consumerAos intense needs.
Lamb et al.
suggested that the changes in consumer behaviors come from customersAo learning procedure which contributes to their experience and practices toward products or services.
Kotler et .
illuminated that many learning theoristsAo view customers learning through the interaction among stimuli, drives, cues, reinforcement, and As a consequence, people take action with their beliefs and attitudes.
FACTORS
INFLUENCING
CONSUMER BEHAVIOR
Consumers behaviors are affected by these components like cultural factors, civil components, individual factors and psychological factors.
These factors are recognized via the marketers for recognizing the consumers and to be capable to make a determination on the course of actions for what type of buyers be target.
Therefore, these components are using for sectioning the market and determine consumer groups (Hasslinger, et al.
First, cultural factors such as culture and social classes.
Culture shapes fundamental values, perceptions, demands, and behaviors that are influenced by the consumer's family, friends, and Different nations have different cultural influences, which play an important role when individuals decide to purchase products.
Hence, consumer buying decision differs conspicuously from one city to another (Aaker, 1996.
Malhotra and Peterson, 2006.
Qureshi et al.
, 2015.
Atilgan et , 2.
The second factors is the civil component, such as reference group, household and statuses.
Reference group influence on the behavior of individuals according to the believes that individuals have on them.
Membership groups have direct influence on the behavior of the consumers like family, neighbors, and co-workers.
Reference groups expose people to fresh behaviors and style of livings, they impact on an individual attitude and oneself-concept, as well reference groups develop press of being confirmed via Opinion leader is Another significance influence, in which influences people to pursue his or her believes and attitudes against specific issues, products and areas (Kotler, et al, 2.
The third factor is the individual factor.
Individuals have different characteristics such as age, gender, family lifecycle stage, lifestyle and self-concept and so on.
These individual characteristics bring about personal motivation, perception and preference (Kotler, 1988.
Brassington and Pettitt, 2000.
Macdonald and Sharp, 2.
Naturally, individuals consume different products and services which changes DECISION MAKING Decision making is a complex cognitive activity, sensitive to situational and environmental conditions (Payne, 1.
One of the factors that decreases the optimality of intuitive decision making is psychological stress.
It is argued that cognitive functioning in general, including decision-making processes, deteriorate under stress .
Holsti, 1971.
Smock, 1.
Psychological stress enhances the utilization of suboptimal cognitive processes and the appearance of cognitive errors and biases.
Keinan .
found that under stress the range of alternatives and dimensions that are considered during a decisionmaking process is significantly restricted, as compared with normal conditions.
Consumer decision making models in the literature have the following three stages in common: The pre-purchase, the purchase and the post-purchase stages (Murphy, 1998.
Rayport and Jaworski, 2.
However, the most cited of these models is the consumer decision-making process model developed by Engel et al.
as cited in Blackwell et al.
In the model, they recommended that consumers will need to go through five main stages of decision making before making their final decisions when purchasing an These are need recognition, search for information both internally and externally, appraisal of alternatives, purchase decision and post-purchase.
Need recognition This has been established to be the first stage in the decision making process.
It is the stage where a consumer is encountered with the difference between perception and the tangible satisfaction level (Solomon et al.
, 2.
The authors amplify that a consumer buying decision process will begin when a personAos unsatisfied needs are recognized.
Second stage is about the consumer searching for information about the product or Moorthy et al.
mentioned such factors as personality, income, social class, size of purchase, prior brand perception, past experiences, and customer satisfaction can influence consumer decision making.
During this second stage, the consumer searches for information both internally and externally.
Moreover.
Solomon et al.
recommended a composition search of information which includes pre-purchase search and on-going Pre-purchase search is when customers identify a need and look for more information about that need within the market, while the ongoing search is mostly based on personal interest that one has for a specific brand.
At the same time, consumers are more likely to keep up with the latest updated information about the brand they are pursuing (Tsai et al.
, 2.
Evaluation of alternatives Stage three emphases on the evaluation of alternatives.
Kolter et al.
suggested that the pre-purchase evaluation period is when consumers make an assessment between different products and brands before they make a choice on Generally, their decision making processes are based on the qualities which are related to their needs.
Kotler et al.
opined that customer buying decisions are therefore based on several qualities such as size, quantities, quality, and prices.
Porter .
further stressed that a firm builds its value by offering lower prices as well as having a differentiated character to compete with its competitors.
Starts after consumers have already evaluated the various products or services offered by all expected retailers.
Oh .
argued that these retailer and in-store selection are the main factors customers use to make their final buying Blackwell et al.
posited that after this stage, the next step will be when customers decide which retailers they want to purchase the item from.
They will base their decisions on the product attributes from the previous stages.
The customer assistants, visual exhibitions of merchandise and the point-of-purchase can also influence the consumer buying decision processes.
The final stage of the consumer-decision process model can be divided into three steps.
The first step, customers consume the products or The second step, customers will evaluate their consumption and it may be noticed here that the customer satisfaction level could be higher than their perceived performance and vice versa (Aaker.
Blackwell et al.
, 2.
During the last step, divestment takes place.
At this point, consumers are likely to dispose of or recycle the product.
This is the point that most organizations now pay attention to and a result they are now concerned with being environmentally friendly due to the fact that they feel almost all customers could probably make repeat purchases if they are satisfied with a reinforcement stage (Rayport and Jaworski, 2.
RESEARCH METHODOLOGY
The research design according to Blumberg et al.
is a plan for collecting and analyzing evidence that will make it possible for the investigator to answer the set research In order to achieve the research objectives, researchers might decide to use what is referred to in the literature as the quantitative research methods.
This research method mainly relies on the use of a structured questionnaire design as the main instrument of research.
The present study adopted the descriptive research methodology implemented through the use of questionnaires as the instrument to collect data from 100 respondents.
The target population for the study was customers who consumed coffee during pandemic.
Male and female respondents with different demographic characteristics were The surveys were realized online and by face-to-face interviews, and the whole procedure was completed between March and May 2022.
tested our questionnaire by distributing it to 20 consumers from different backgrounds and ages in order to ensure that it is clear enough and to detect variables and questions that were difficult to As a result, some were removed, elaborated, or modified.
The questionnaires were designed in such a way so as to measure the factors affecting consumer behavior toward their decisionmaking processes.
The data collected from the survey were then analyzed using SPSS 25 and descriptive statistics were used to transform the raw data into an analyzable format.
This enabled accuracy and interpretation of the data collected.
To analyze data, the literature suggests that descriptive statistics can be adopted to explain the variable factors, while, the Chi-square analysis and Pearson correlation analysis can be used for hypotheses testing (Hair et al.
, 2.
There are 35 females and 65 males.
Most of them RESULT OF FINDINGS were aged between 19 and 54 years respectively.
DATA ANALYSIS
Furthermore, males aged between 21 and 22 years Demographic Profile of Respondents The demographic characteristics of the 100 represent the largest group of the respondents in respondents in this survey are revealed as follows.
this survey.
Table1.
Frequency Distribution of Research Subject Based on Gender (N=.
Gender
Frequency Percentage (%) 1 Male
65,00
2 Female 35,00 Total
100,00
Source: Primary Data Table 2.
Frequency Distribution of Research Subject Based on Age Range (N=.
Age (Year.
Frequency Percentage (%) Gen Z .
Ae .
74,00 Millennials .
18,00 Gen X .
8,00 Total
100,00
Source: Primary Data Table 2 showed that based on age range, the highest of coffee consumers are Generation Z followed by Millennials and then Generation X.
Table 3.
Frequency Distribution of Research Subject Based on Professions (N=.
Age (Year.
Frequency Percentage (%) Employee 26,00 Entrepreneurs 3,00 Housewife 3,00 Students 68,00 Total
100,00
Source: Primary Data Additionally, the majority of the employed or business owner and housewives, and respondents .
%) are students.
There is an equal 26 out of 100 respondents is a employee.
score of 3 .
0%) respondents who are selfTable 4.
Frequency Distribution of Research Subject Based on Income (N=.
Income Frequency Percentage (%) < Rp.
44,00
Rp.
001 Ae Rp.
27,00
Rp.
001 Ae Rp 3.
8,00
Rp.
001 Ae Rp.
15,00
> Rp.
6,00
Total
100,00
Source: Primary Data In addition based on table 4, 44 .
expected data and the observed data regarding to respondents have monthly income around > Rp.
the hypothesis,while the latter, as suggested by 000, 27 .
0%) respondents receive Rp.
Pallant .
, and is aimed toassess the direction 001 Ae Rp.
000 Rupiah, 8 .
and strength of the relationship between two respondents earn Rp.
001 Ae Rp.
0%) respondents earn Rp.
001 Ae Rp.
Chi-squire analysis 000, while only 6 .
0%) out of 100 In this section.
Chi-square analyses are respondents earn more than Rp.
engaged to examine the relationship with each of the factor, namely age, gender, income, and decision making for coffee consumption during Hypothesis Testing Analysis The hypotheses are evaluated using Chipandemic.
square analysis and Pearson product moment H1: There is a relationship between demographic correlation coefficient.
The former is engaged to data and decision making for coffee consumption compare and determine the difference between the during pandemic.
H1.
1: There is a relationship between age and decision making for coffee consumption during H0: There is no relationship between demographic data and decision making for coffee consumption during pandemic.
Ha: There is relationship between age and decision making for coffee consumption during pandemic.
Table 5.
Chi-square analysis between age and decision making for coffee consumption during Age Decision making for coffee consumption Asymptotic during pandemic Value Significance .
-side.
How important does each criteria influence you to purchase coffee during pandemic *Significant at the 0.
05 level .
wo-taile.
According to table 5, it shows the relation Hypothesis 1.
2: There is a relationship between between age and decision making for coffee gender and decision making for coffee consumption during pandemic is 0.
272 (>0.
consumption during pandemic which accepted null hypothesis and rejected H0: There is no relationship between gender and alternative hypothesis.
This means there is no decision making for coffee consumption during relationship between age and decision making for coffee consumption during pandemic.
Therefore.
Ha: There is relationship between gender and 1 is rejected.
decision making for coffee consumption during Table 6.
Chi-square analysis between gender and decision making for coffee consumption during Gender Decision making for coffee consumption Asymptotic during pandemic Value Significance .
-side.
How important does each criteria influence you to purchase coffee during pandemic *Significant at the 0.
05 level .
wo-taile.
From table 6, the research illustrates that H0: There is no relationship between income and the relationship between gender and decision decision making for coffee consumption during making for coffee consumption during pandemic is 039 (<0.
which accepted alternative Ha: There is relationship between income and hypothesis and rejected null hypothesis.
Thus, the decision making for coffee consumption during outcome accept hypothesis 1.
Hypothesis 1.
3: There is a relationship between income and decision making for coffee consumption during pandemic Table 7.
Chi-square analysis between gender and decision making for coffee consumption during Income Decision making for coffee consumption Asymptotic during pandemic Value Significance .
-side.
How important does each criteria influence you to purchase coffee during pandemic *Significant at the 0.
05 level .
wo-taile.
According to table 7, it shows the relation relationship between income and decision making between income and decision making for coffee for coffee consumption during pandemic.
consumption during pandemic is 0.
501 (>0.
Therefore, hypothesis 1.
3 is rejected.
which accepted null hypothesis and rejected alternative hypothesis.
This means there is no Hypothesis 2.
2: There is a relationship between Ha : There is a relationship between brand and brand and decision making for coffee consumption decision making for coffee consumption during during pandemic H0 : There is no relationship between brand and decision making for coffee consumption during Table 8.
Pearson correlation analyses between Brand and decision making for coffee consumption during pandemic Decision making for coffee consumption Brand during pandemic Pearson correlation How important does each criteria influence Significant two-tailed you to purchase coffee during pandemic ** Correlation is significant at the 0.
01 level .
wo-taile.
As presented in table 8, the relation reject alternative hypothesis.
This means that there between brand and decision making for coffee is no relationship between brand and decision consumption during pandemic is 0.
434 (<0.
01, r = making for coffee consumption during pandemic.
, which means accept null hypothesis and It can describe that it rejected hypothesis 2.
Table 9.
Pearson correlation analyses between frequency and decision making for coffee consumption Decision making for coffee consumption Frequency during pandemic Pearson correlation How important does each criteria influence Significant two-tailed you to purchase coffee during pandemic Hypothesis 2.
3: There is a relationship between frequency of coffee consumption and decision making for coffee consumption during pandemic.
H0 : There is no relationship between frequency of coffee consumption and decision making for coffee consumption during pandemic.
Ha : There is a relationship between frequency of coffee consumption and decision making for coffee consumption during pandemic.
As presented in table 9, the relation between brand and decision making for coffee consumption during pandemic is 0.
345 (<0.
01, r = .
, which means reject null hypothesis and accept alternative hypothesis.
This means that there is a relationship between frequency of consumption and decision making for coffee consumption during pandemic.
Thus, it can 3 is supported and correlate.
Table 10.
Pearson correlation analyses between repurchase and decision making for coffee Decision making for coffee consumption Repurchase during pandemic Pearson correlation How important does each criteria influence Significant two-tailed you to purchase coffee during pandemic Hypothesis 2.
4: There is a relationship between decision making and repurchase behavior H0 : There is no relationship between decision making and repurchase behavior.
Ha : There is a relationship between decision making and repurchase behavior.
Table 10 displays the relation between repurchase behavior and decision making for coffee consumption during pandemic is P = 0.
(<0.
01, r = 0.
which rejects null hypothesis and accepts alternative hypothesis.
It means that there is a significant relationship between decision making for coffee consumption during pandemic and repurchase behavior.
Therefore, the outcome supports Hypothesis 2.
DISCUSSIONS OF RESULT
This study has concentrated on two main issues in order to explain the link between three variables namely, demographic characteristics, decision making and consumer behavioral.
The first is whether or not the determinants demographic variables .
uch as age, gender and incom.
as well as the study variables namely perception value, perceived quality and promotion have a significant influence on consumer decision making for coffee consumption.
The discussion of the results of the hypothesesAo testing is presented in this section.
Firstly, there is no significant relationship between the age and income and consumersAo decision making toward purchasing coffee during pandemic but there is a relation between gender and purchasing a coffee during Based on this result, it can be proposed that age and income do not affect coffee consumersAo buying decision during pandemic.
This finding also revealed that males more consider their purchase and consuming coffee during Kotler and ArmstrongAos .
mention that there are differences between males and females in thoughts, perception values, attitudes, behaviors, needs and purchase decisions.
However, this result is contradicted to Moorthy et al.
who argued that consumers will consider their income before making a purchasing decision.
Secondly, there is a substantial relationship between perception value and decision making towards coffee consuming during pandemic.
These results are buttressed by the literature posited by Yasin et al.
that a higher level of perception values in coffee consumer will lead to an increase in potential consumer buying decision on coffee during pandemic.
consistent presence in customers' minds.
Based on this assertion that consumers will continue to consume Coffee during a pandemic due to their favorable perception of the product, the managers of Coffee entrepreneurs Beverage Company should keep in mind the primary determinant factors that influence the purchasing decisions of individual consumers, as suggested by this study, because different individuals have different purchasing consideration factors.
This can assist the company in developing an appropriate marketing strategy and advertising campaign to capture its targeted market and adequately satisfy consumer needs.
The study also reveals that quality is the second most influential factor in consumer decisions to purchase Coffee during a pandemic.
These findings can be utilized to develop and enhance the quality of coffee consumption during a pandemic by introducing more new flavors in response to the needs and desires of consumers.
In conclusion, this study is useful for Coffee entrepreneurs and other businesses in the same industry.
These findings would allow businesses to design and implement effective marketing strategies to increase the number of loyal customers, as well as the firm's overall performance and profitability.
Based on these findings, we propose that in order to gain a deeper understanding of consumer purchasing behavior in regards to Coffee consumption during a pandemic, the company must consider not only the factors that influence consumer decision making, but also the outcomes of these decisions, namely consumer loyalty behaviors.
In addition to the four primary factors highlighted in the literature review section, this suggests that consumers also consider factors such as ease of purchase, flavor, price, and packaging when making decisions about coffee consumption during a pandemic.
Consequently, this study provides additional insights for marketing research and development and can also be used as a guide for formulating an effective marketing strategy for businesses that wish to respond quickly to consumer needs in order to win their loyalty.
CONCLUSIONS OF THE STUDY
This study examined consumer behavior in relation to their purchasing decisions for coffee during a pandemic, which ultimately leads to consumer loyalty.
It has examined the relationship between the factors that influence consumers' coffee consumption decisions during a pandemic and their loyalty behavior.
There are numerous factors that determine consumer purchasing This study, however, focused primarily on four factors that influence consumer decisionmaking in the context of coffee consumption during pandemic.
The findings of this study indicate that perception values and perceived quality have the greatest impact on consumer purchasing decisions, which in turn results in consumer loyalty behaviors.
In addition, the findings of this study indicate that demographic factors such as age and income have no significant impact on consumers' purchasing decisions.
Moreover, the findings suggest that coffee consumers have a higher level of perception regarding the value of coffee consumption during The practical implication of these findings is that the Coffee entrepreneurs beverage company could implement an efficient marketing strategy to promote its brands and maintain a REFERENCES