Consumer behavior of the population of Ukraine: reflections on the COVID-19 pandemic

Abstract

The theoretical and applied bases of research of consumer behavior of the population following the reflexive approach are formulated. Consumer behavior is suggested to be considered a type of economic behavior that, in combination with savings and investment activity, shows the consumer reflections of the population and directly determines the processes of economic growth. The consumer reflection is defined as the result of an entity’s understanding of one’s financial capacity, expressed in terms of costs, which consistently determine the model of economic behavior. The schematic generalization of factors of formation (environment) and consequences of realization (economic growth) of consumer behavior of the population is carried out. Since the stability conditions are among the environmental factors, the impact of the pandemic on consumer behavior as a major destabilizer is studied. Adaptation of the consumer market to the requirements of the pandemic has led to a number of conceptual changes related to the conditions of sustainable socio-economic development, the activities of economic entities, and the purchasing power of the population. The level of income and expenditure structure of the population of Ukraine according to household surveys with a comparison of pre- and pandemic indicators are analyzed. Maintaining the purchasing power of the population in the conditions of positive wages dynamics and the gradual improvement of the macroeconomic situation after the events of 2014 prevented the «quarantine» shutdown of the economy. At the same time, the analysis of the cost structure of the population revealed a significant reduction in spending on leisure and restaurant business and a significant increase in utility costs, which is an additional destructive factor of the population welfare in post-pandemic uncertainty. Given the uncertainty of the situation, the need to support socially responsible business in Ukraine is indicated, and the priorities of its development in terms of production and sales activities are proposed.