Online consumer behavior in a global health crisis: The US vs. Europe
To better understand the ongoing impact of the health crisis, we are conducting a large-scale study tracking shopper and media consumption behavior. Using a combination of survey and RTM, the research is targeting the general population of the United States, France, and Germany – countries heavily affected and currently experiencing different phases in the pandemic cycle.
EyeSee’s remote model of testing via respondents’ own devices online ensures that the study is conducted completely safely for everyone involved, and provides us with more timely, cost-effective, and relevant insights than traditional central location or in-person testing.
The study is set up to track the following in the upcoming weeks:
- consumer pessimism/optimism and recent purchase assessment
- usage of channels, trust in networks and habits in media consumption
- frequency and volume of online shopping, choice of retailers, and priority of online purchase needs
Our research has shown a peculiar thing about human behavior and why measuring it needs to have both implicit and explicit components. When people judge their own behavior, it is quite often different from what we see happening in the real-life. This is why we used RTM tests to feel the ground on the optimism index of these three countries.
RTM or Reaction time measurement gauges whether the critical info about a product is processed in a split second. It indicates how strong the subconscious connections between brands, products, and specific attributes or statements are. While surveys measure consumer attitudes by focusing on rational, explicit opinions, RTM captures the implicit, emotional certainty of the stated attitude. Learn more about RTM here.
We asked the following questions to assess the consumer optimism index: How do you expect your personal/ family financial outlook to be? How do you expect your country’s financial outlook to be? How do you expect the coronavirus health situation to develop?
Shaky optimism in the US – no one is sure of what the future holds
Our study shows that in general, uncertainty is high (around 60%), with the most optimists in the US (21%), and the most pessimists in Germany (28%).
When it comes to the personal financial situation, most people predict it will remain the same, while 39% of French and German respondents think it will get worse, and the former being more certain of it. A third of Americans even believe it will get better. What about the financial situations in the countries? With a higher speed of their RTM response and thus higher certainty, both France and Germany believe it will get worse. In perspective, this might affect their price sensitivity and willingness to spend.
Another curiosity is that more than half of French respondents say they believe the situation with Coronavirus will get better in their country, and yet are very uncertain of it. This might have to do with the way they gather information. Around 29% of French respondents rely on official media sources such as the WHO website, compared to the US at 30% and 39% of Germans.
Cost of healthcare biggest concern in the US
Concerning what they are most worried about, the results vary due to the differences in the scope of the welfare state. These T2B results could serve to paint an image of the spread of an attitude: the Germans and French are most worried about the epidemic, while in the US, this is topped by the worry about the cost of healthcare. When it comes to its intensity, with 52% of the French sample saying they are a great deal worried about the coronavirus situation, it is clear how much it occupies the consumers right now.
Aside from the pandemic, which all three samples are apprehensive about, another significant difference is that the German respondents are far less worried about all other issues, such as the cost of healthcare, crime, inflation, recession, and corruption, than their French and American counterparts.
In a mode of intense local crisis, it is hard to worry about the global issues that are usually a part of the public domain and discussion. However, there are some outliers: besides the Pandemic, 79% of the French respondents say they are worried about both climate change and environmental pollution. Typically, we can’t worry about issues that are too abstract during a time of pressing crisis. However, it will be a precedent if COVID 19 sparks a trend of thinking about topics such as these with more vigor and treating them like the genuinely global problems they are.
Food and household: US carts grow bigger, while EU tightens belts up
What is universally agreed upon is what activities and aspects of their life will change: local and global travel, eating out, and entertainment and events are the areas that over 90% of all three samples will either decrease or stop doing.
On the other hand, when it comes to shopping, Americans are the ones who plan to increase shopping for food and beverages and household essentials – which is something we’ve already witnessed in the past weeks. The European part of the sample expects to restrain their spending in these two areas as well, with French cutting their spending the most, and Germans more likely to stop an activity, rather than decrease spending in it.
Change in online habits stronger in Europe
The French have already changed their online habits in the past two weeks – the pandemic already influenced changes in 31% of the respondents’ shopping behavior. In the US and Germany, 22% have done so. And in which ways? Everyone started buying more non-perishable and locally produced goods, with Americans stocking up on over-the-counter medicine, larger packs and multipacks, and Germans increasing the frequency of online shopping, in tune with the health recommendations.
Additionally, free delivery and low prices are the main drivers when selecting an online retailer for over 50% of both US and EU consumers. Add to that fast delivery and enough supplies in stock as the second round of key features, with speed being particularly crucial to 52% of Germans.
In the past two weeks, 52% of Germans started ordering online more frequently than before, with 32% of Americans, and 22% of French claiming the same. When it comes to the next month, most people (around 60%) say they will not change their online behavior. Still, 18% of Germans say they will order online more frequently, along with 15% of Americans and the French.
Learn more about E-commerce testing.
TV is still the (trusted) king
Nearly 80% of all study participants get most of their information about the ongoing outbreak on TV, followed by talking to friends and family and social media – proving that in the media, a global strategy is likely to do well in different markets. It is interesting to notice that in a time like this, we turn to what we know the best – mass channels such as TV, and the people we trust. Social media is a double-edged sword – it is both useful in keeping us connected during social distancing, and comes with the caveat of spreading fake news.
Around 30% of them used official websites of the World Health Organization, Center for Disease Control, and the European Center for Disease Prevention and control – here, the Germans rely on the official sources the most of the three countries, and the French the least.
Learn more about TVC testing here.
Main takeaways
In tune with the stage of the outbreak in each country, and some cultural differences aside, we can say that there are many similarities between the three samples. Here’s the rundown:
- Shaky optimism with impact on Food and household: US carts grow bigger, while EU tightens belts up The perception of behavior lags the actual practice, and we will have a better picture of it in the coming weeks.
- Cost of healthcare is the biggest concern in the US – more people worry about it than about the pandemic itself. Everyone is apprehensive, with some variations in the outlook depending on the welfare systems – but the overarching feeling is uncertainty about the future.
- Change in online habits stronger in Europe – people started ordering online more frequently An average of 36% of respondents report ordering online more frequently in the last two weeks. This might be an excellent time to feel out the needs of the consumers because what happens now might be the new normal once the crisis starts to ebb.
In unpredictable times like these, we have an opportunity to deepen our understanding of the consumer and the complexity surrounding their daily choices. We will continue to monitor and report on the situation, merging both the explicit and implicit methods to understand behavior in a global health crisis.
Stay tuned for more insights as the situation develops.
Interested in learning more? Check out our webinar on the topic.