International insights into the consequences of COVID-19 on consumption and attitudes towards savings

Abstract

Research background: The coronavirus has impacted the global economy as many businesses had to close due to the restrictions, and people’s spending and saving behaviour have changed. According to the negative consequences of the COVID-19, people reconsider their expenditures and rearrange their savings. To avoid the spread of infection, several employers switched to a home office where it was possible. As a result of working from home in numerous cases, monthly housing expenditures have increased. To prevent the spread of the disease, a great number of people tried not to appear in crowded places. Therefore, online shopping came to the fore. Purpose of the article: The main purpose of the article is to give a comprehensive picture of the relationship between the respondents’ job losses and their attitudes towards savings. Furthermore, the association was analysed, and its strength and direction were measured between the increased monthly housing expenditures and the reconsideration of shopping intentions. Moreover, the association was examined between the decreased spendings on commuting and the frequency of online shopping. Methods: The research was conducted among residents in two neighbouring V4 countries, Slovakia and Hungary. To analyse the formulated hypotheses, a nonparametric Pearson's chi-square test and Somers’ delta tests were used. Findings & Value added: Thanks to the results, it can be declared for both countries that there is an association between job losses due to the pandemic and saving behaviour. Based on Somers‘d test, there is a positive correlation between spending less on commuting and online shopping frequency and increased housing expenditures and shopping reconsideration between the respondents.