Consumers' purchase behavior reactions: a focus on the steady devaluation of currency, compounding increase in inflation rates in Egypt

Abstract

PurposeThis study investigates consumer purchase behavior during the steady devaluation of currency, which led to increase in inflation rates in Egypt.Design/methodology/approachThis study collected and analyzed numerical data to test the causal relationships found among the research model variables. Administrated questionnaires were distributed March 2023 in cross-sectional timeframe in several visits to hypermarkets, supermarkets and grocery stores in Cairo and Alexandria, applying nonprobability sample. Structure equation model path analysis was used to test the hypotheses.FindingsThis study shows compulsive buying, sense of anxiety, value shopping, attitude toward private label, attractiveness of local brands and materialistic behaviors impact consumers' acceptance of alternative brands; compulsive buying, sense of anxiety and materialistic behaviors impact the continuance of purchasing accustomed brands.Practical implicationsRetailers, government and policymakers can use this study as a guide to know how consumers react during times of high prices so to provide solutions to their needs. Policymakers should take into account the findings in managing the economy.Originality/valueThis study shows the effect of inflation on consumer spending to contribute to the body of knowledge in literature on the factors that influence consumer behaviors. A model was developed to frame the possible manners that might surface among consumers during times of high inflation; it reflected whether compulsive buying, sense of anxiety, value shopping, attitude toward private label, attractiveness of local brands and materialistic behaviors impact consumers acceptance of alternative brands and/or the continuance of purchasing accustomed brand.