Abstract

The aim of the article. The purpose of the article is to find out how the political and economic crisis of recent years has affected the behavior of Ukrainian consumers. How changed their preferences in purchasing of things, leisure, communication and training. As consumers evaluate their economic situation, what is expected in the future and how structural changes in consumer confidence and incomes reflected in their willingness to take innovative products. The study involved the use of secondary information from official sources state institutions regarding economic situation in Ukraine, and the results of a survey conducted by professional marketing agencies on consumer sentiment population. The results of the analysis. Official sources of data and results of studies of Marketing & Media Index Ukraine obtained through regular surveys of the population of Ukraine aged from 12 to 65, living in cities with population of 50 thousand people or more were used. The sample panel covered the 5,000 respondents from 51 cities in all regions of Ukraine except Crimea and the territories temporarily beyond the control of Ukraine. Quarterly survey took place at the residence of respondents using Face-to-Face method. The results obtained allow to monitor the dynamics of basic social indicators: employment, income, consumer confidence, quality of life, changes in lifestyle and psychographic characteristics, consumer goods and services. Proved that the consumer culture in Ukraine is at the stage of defining and shaping. During the Soviet era consumer behavior were mostly influenced by economic factors and the physical availability of the product. It wasn’t bought, what was needed, but what was available on the market. After the collapse of the directive management system and obtaining by consumers a free access to goods, demonstrative behavior has become widespread. Ukrainian consumers are much more active than Europeans in buying products of well-known brands, in an amount that often exceeds their real needs, compensating for the limitations of previous years. With the stabilization of the economic situation consumer culture took on a more «civilized» form and utilitarian nature. The ability to travel, get acquainted with the culture and values of other countries, including the culture of consumption and leisure of the residents on the one hand and on the other – the development of a market economy, the saturation of various goods, and at the same time, limited income growth, have their effect. Consumers stopped buying for the future («for reserves»), passively responded to promotional offers and tools of promotion of consumer goods, began to spend more on services, leisure and education. Unfortunately, political instability and socio-economic situation impedes the evolution of a culture of consumption in the country. Conclusions and directions of further researches. The study confirmed the hypothesis that the economic and political crisis negatively impact on consumption of Ukrainians, for whom satisfaction of basic needs becomes highest priority. This situation is not conducive to the development of consumers and slows the process of introducing of innovative products to the domestic market, as innovators are usually consumers of sufficient high or middle-income that are willing to risk their own money, buying a new product. With the economic crisis, consumers feel insecure and uncertain, so by all means save and postpone major purchases for the future. Falling real incomes lead to a drastic savings of consumers on services, leisure and rest. Personal contacts of Ukrainians shifted to virtual area. Less time and effort is spent on reading books, personal development, professional development, training, which is due to the lack of funds and lack of motivation, pessimism and uncertainty about the future. Such behavior contributes to the consumption of known, proven limited list of goods, as getting acquainted with a new products and switch to other products require extra funds. Formed conclusions give an idea of the priorities of consumers and can be used by enterprises to adjust their own marketing innovation policy.

Keywords: consumer behavior, economic crisis, GDP, standard of living, cost savings, innovation, income, index of consumer preferences, consumer psychographic portrait

JEL Classification: M31, D12.

Cite as: Reshetnikova I. & Sahaidak, M. (2016). The impact of the economic crisis on domestic consumers behavior and perception of innovation. Marketing and Management of Innovations, 4, 191-205. https://doi.org/10.21272/mmi.2016.4-16

This work is licensed under a Creative Commons Attribution 4.0 International License

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