THE ROLE OF CHANGES IN CUSTOMER
BEHAVIOR ON SMART MARKETING STRATEGIES IN THE POST-COVID PANDEMIC ERA
Maria
Sugiat1 Iman Chaerudin2
STIE Unisadhaguna, Jakarta1 Telkom University,
Bandung, Jawa Barat2
mariasugiati@ubs-usg.ac.id
Abstract
Introduction: At the beginning of 2020 COVID-19 virus swept the globe in a
matter of months, jeopardizing lives, upending businesses, and setting off a
worldwide economic slump. To suppress the spread of Covid-19, the government of
Indonesia implemented "Restrictions on certain activities of residents in
an area suspected of being infected with a disease and/or contaminated in such
a way as to prevent the possibility of spreading the disease
Objective: -19 pandemic. Customers have often used communication technology
so that they can take advantage of existing online applications to fulfill
their basic daily needs.
Covidexplorative research using qualitative and
cross sectional research methods is used to explain the relationship between
changes in consumer behavior and marketing strategy.Data analysis using the Spradley technique
with domain and taxonomy analysis
Results: The results show that the customer's online shopping pattern will
continue until period no. next rm. It is based on customer characteristics and technocultural theory. According to one major retailer in
Indonesia, there was an increase in transactions during social distancing by an
average of 45%. Online shopping and home delivery services have also become
consumer demand.
Conclusion: 1. In the
post-pandemic covid-19, the pattern of spending on basic needs will not change
due to the convenience of using the internet to do the shopping and there are
online services. 2. Since
there are online services to do shopping from their home and office, there are
no changes on the post-pandemic covid-19. 3. The internet of things causes buying behavior to change based on the
relationship between technology & culture. However, this change has
occurred since the era of the covid-19 pandemic 4. Youth in Indonesia is recorded at 24% of the total population based on
demographics with around 64 million people in the number of youth or what is
commonly referred to as the millennial generation. 5. The shopping behavior post-covid-19 pandemic can be expected that
consumers to shop online will continue to increase until the new normal era,
especially for necessities and entertainment since there is millennial
generations growth. 6. Since the buying behavior of the millennial generation
will continue until the next normal, the marketer needs an adaptive marketing
strategy called smart marketing. It is the term of hybrid marketing with a
combination of the supply chain, marketing & e-commerce.
Keywords: Technoculture, Customer,
Cross-Sectional, Online shopping, Covid-19
INTRODUCTION
At the beginning of 2020 COVID-19 virus swept the globe in a matter of months, jeopardizing lives, upending businesses, and setting off a worldwide economic slump. To suppress the spread of Covid-19, the government of Indonesia implemented "Restrictions on
certain
activities of residents in an area suspected
of being infected
with a disease
and/or contaminated
in such a way as to prevent the possibility of spreading
the disease (Kresna & Ahyar, 2020). or
contamination. This restriction has a major impact on economic activities
such
as changes in the
pattern
of shopping behavior for daily necessities, this is
in
line with the development of digital communication technology as well as the generations involved in it (Jati, 2021). A few months after COVID-19 ongoing, online shopping
has been significantly increased,
especially spending on daily necessities and home
entertainment (Juniar & Uci, 2021). since many people
end up using e-commerce to shop
for various
needs.As shown
in Picture 1 below.
Picture 1. Retail Sales
& Growth 2019-2020
Source:
Indonesia Central Bank, 2020
Regarding
the pattern of changes in customer behavior,
in the
retail market, three eras can
be analyzed. First Era, consumer behavior in the pre-pandemic era of covid 19. Where the average growth of the retail business is around 1% year on year, as shown
in the above picture. The second Era
is consumer behavior during the covid-19 pandemic from April 2020 until now, where the average retail business growth went down by – 12%.
Amid the decline in the retail business, an interesting phenomenon occurred,
that the wholesale sector,
retail; repair and car and bike care
motorcycle grew by 45.31% while the transportation & warehousing sector grew by 45%. In this era, many supermarkets provide digital services. To meet daily needs in this survival era, there has been a change in people's buying behavior in which there are 25,87% or around 69,90 million millennials who are supported by internet communication technology. This pandemic covid-19 era is the
survival era. It is one of the driving factors for changing consumer spending patterns towards digital by utilizing
online services such
as e-commerce and media
social (Hidayat, 2020).
Research on behavioral changes is interesting to observe, especially to find out whether this buying behavior persists in the long term
or only temporarily
during
the
Covid-19 Pandemic? so that it becomes a habit in the post-covid-19
era.
The consumer behavior changes will affect the retail business marketing strategy. To answer
the
above research question, the researcher formulated the indicators to forecast the buying behavior in
the
form of questions as follows:
RESEARCH METHOD
This study uses an exploratory method to determine the phenomenon of consumer behavior that persists
in the long term or only temporarily during the
Covid-19 pandemic (Prof
Sugiyono, 2016). Information was collected directly using a purposive random sample technique of 400 respondents from a university
students in Jakarta, Bandung
& Surabaya aged between 18 -40 years. This research uses a
source & time triangulation test to validate the data. The triangulation test is a test carried out with
a data analysis approach that synthesizes data from various sources, such as observations, focus group discussions, or secondary
official data. “Triangulation refers to the use of multiple methods or data
sources in qualitative research to develop a comprehensive understanding of phenomena” (Polit & Beck, 2008).
Picture 2, Triangulation Data
Source: Qualitative Research Validation Framework, 2021
In this study, data processing
and data analysis will be carried out through a process of compiling, categorizing data, looking for content relationships from various data obtained to get their meaning, and being developed into a theory
In this research, the researcher uses domain analysis and semantic
analysis. to describe the overall situation of purchasing
behavior which includes data reduction (data
reduction), data presentation
(data
display), and conclusions or verification
(conclusion
drawing).
Domain analysis in (Metode
Sugiyono, 2014) is carried out to obtain a general and comprehensive
picture of the social situation
under study or the object of research.
Results and
Discussion
Based on the explanation above and technoculture
theory (Penley
& Ross, 1991) and the concept of exploring the power of scientific ideas,
their impact on
how we understand the natural world, and how successive technological developments have influenced our attitudes to
work, art,
space, language and the
human body (Shaw,
2008), there is
a triangular relationship between digital
technology, the
consumer behavior, and
the Covid-19 pandemic condition. To get a prediction of changes in customer behavior Post-Covid-19 pandemic, it is necessary
to get a general and comprehensive picture of changes in customer behavior during the covid-19 period.
Spradley suggests doing
a domain analysis during the covid 19 pandemic to analyze the relationship between
categories which includes
9 types (Spradley, 2016). The nine
semantic
relationships are:
The market is a type of market used to fill the customer needs. Home & office is the best place to do shopping
as shown in the table
below.
Table 1. Type of Market & Place To Do Shopping
|
No |
Domain |
Relation |
Cover Term |
|
1. |
Traditional Market |
Is a type of |
Market |
|
2. |
On-Line Market |
||
|
3. |
Mix Market |
||
|
1. |
Market |
Is a place |
To do shopping |
|
2. |
Home |
||
|
3. |
Office |
||
|
4. |
Entertainment Area |
Source: Data Collection, Statistical,
2021
According to Hamardini (2011), there are several advantages obtained through online purchases,
namely:
1.
Save time
and cost
2.
No need to queue
3.
Service optimization
4.
There is the
interaction
between buyers
5.
Provide recommendations,
and
6.
The existence of a
Search Box
service To facilitate
the search.
The Cause-and-effect relationships, and
Rational Relations on the domain analysis and semantic relationships, said that the
development of the Internet of Things, Covid-19 Pandemic is the cause of
Behavior Changing, and using internet ot do shopping will fundamentally change the way people think,
the
way humans relate to other people and will disrupt various human activities from various fields, such
as social,
economic, and political as
shown in the table
2 below
Table 2. Type of Market & Place To Do Shopping
|
No |
|
Domain |
Relation |
Cover Term |
|
1. |
|
Millennial Generation |
Is the cause of |
Behavior Changing |
|
2. |
|
Internet of Things |
||
|
3. |
|
Covid-19 Pandemic |
||
|
1. |
|
Convenience/Practice |
Is the reasons |
Using internet to
do shopping |
|
2. |
|
Fast |
||
|
3. |
|
Healthy & safety |
Source: Data Collection, Statistical, 2021
According to
(Kotler,
2012), “Lifestyle
is
a person's pattern of living
in
the world which is
reflected in activities, interests,
and opinions. Lifestyle captures a person's
interaction as a whole with his environment. This lifestyle factor is considered important because producers see that existing trends have changed the habits, tastes and buying behavior of consumers”. Based on Tables 1 & 2
above, it can be seen that the domain types of shopping patterns are part of a lifestyle as well as the theory of rational consumer behavior where there are 3 shopping patterns, namely classic shopping patterns.
Online shopping
patterns, and combined shopping patterns. And also to provide convenience, saving time & cost, healthy & safety is the reason to use the internet to do
shopping. This is the change of
consumer habits, taste, and buying behavior that is in line with Kotler's opinion above. So that’s why During the pandemic period, the retail & grocery sector grew 45,3
% and the transportation & warehousing sector grew 45%., where consumers are more often at home, online (virtual) shopping
patterns using the internet network are more common to carry out their transactions. Furthermore, the
data
is validated by using a triangulation test through group discussions & info from
practitioners or secondary
data. Based on the validation data that respondents have often used online food services in meeting their daily food is a
lifestyle
changes with online application
services such as gofood, go mart
help
helps with existing technology. Generally, during pandemic consumers shop from home, but there
is
34,76% respondent who
works in important sectors, the place to do shopping
is
Market, Office &
Entertainment Area follows by health protocols such
as
wearing masks, keeping a
distance
and always washing hands. The changes in behavior are caused by changes in external conditions, such as the covid
pandemic, telecommunications technology, e-commerce
& digital markets. Whilst practicality, convenience, fast, healthy &
safe are the reasons for shopping
online. This picture is in line with the
innovation theory
(McLuhan, 1962). "Innovation in the field of information
technology or
communication technology brings enormous changes to people's lives"
and technoculture
theory (Penley
& Ross, 1991) which is “relationship between technology and culture” Relating to the
millennial generation, this theory is also related to generation theory “.is a group of individuals defined by age, location, and birth”
Below is the attribute of the millennial generation that has semantic analysis
that plotted to
the taxonomy diagram.
Figure 3. Semantic
Analysis Consumer Attribute,
2021
The above picture showed that the consumer buying behavior during
the
pandemic covid era is a cashless transaction, saving time & cost, Using the Internet, and having social media to get information
of products (Sari, 2021). Since they
are
working at home and sometimes should go to
the office for important jobs, cashless or e-commerce transactions are important. The gadget culture (technoculture)
for millennials
will save time & cost together
with the internet-ready facility. However, based on the characteristics of
the
consumer that consist of 37% millennial generations, it can be expected that consumers ' shopping
online will continue to increase until the post pandemic covid-19 era, especially for necessities an entertainment. Previous research in the last 5 years has generally
talked about consumer behavior, the impact of the COVID-19 pandemic, e-commerce & online marketing strategy. However, this study talks about
millennial generation behavior on the
next
normal
CONCLUSION
1.
In the
post-pandemic
covid-19,
the pattern of spending on
basic
needs will not change
due to the convenience of using the
internet to
do the shopping and
there
are
online services.
2.
Since there are online services to do shopping from their home and office, there are no changes on the post-pandemic
covid-19.
3.
The
internet of things causes buying behavior to
change based
on the relationship between
technology & culture.
However, this change
has occurred since
the
era
of
the covid-19
pandemic
4.
Youth
in Indonesia is recorded at 24% of the total population based
on demographics with around 64 million people in the
number of youth or what is commonly referred to as the millennial generation.
5.
The
shopping behavior post-covid-19 pandemic can be expected that consumers to shop online
will continue to
increase until the new
normal era, especially for necessities and
entertainment since there
is
millennial generations
growth.
6.
Since the buying behavior of the millennial generation will continue until the next normal, the marketer needs an adaptive marketing
strategy called smart marketing. It is the term of hybrid
marketing with a combination
of the supply chain, marketing & e-commerce.
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