PurpleBug Study - Consumer Purchasing Behavior Pre/During/After COVID-19 in the Philippines

CONSUMER PURCHASING BEHAVIOR
Pre/During/After COVID-19
A study by
Copyright 2020 – PurpleBug,Inc. All rights reserved. Strictly confidential.

AGENDA
CONSUMERS & COVID-19
Demographics
Device & Internet Usage
Online Purchase & Spending Habits
Perception Towards Brands and Products
Product Purchase Channels
Preference of Purchase Channels
Channel Preference Based on Product
Categories
THE NEXT STEPS

- Meyer (2020)
“Humans respond to crises in different ways.
When faced with an uncertain, risky situation over which we have no control,
we tend to try whatever we can to feel like we have some control.”

RESPONDENT DEMOGRAPHICS
629 responses were gathered via an online
survey from May 7, 2020 to June 1, 2020.
Majority of our respondents live in Luzon.
Majority are Millennial Females.
Majority reported a Monthly Income Range of Php 10,500 and below.

DEVICE & INTERNET USAGE PROFILE
433 respondents access the internet through just 1 device;
for the majority of these people, the device of choice is
Smartphone.
515 respondents only have 1 mode of accessing the internet; for
the majority of these people, the mode of choice is Mobile
Data.

ONLINE PURCHASE PROFILE
Majority of the respondents shop
products online.
The preferred payment method of the respondents who are online shoppers is
Cash on Delivery (COD).
Below are the reasons of the 18.12% who don’t shop products online.

COVID-19 & CONSUMER BEHAVIOR
The 629 respondents agree…
ü…that brands can advertise amid the pandemic.
ü…that prices and discounts are more important than the brand amid
the pandemic.
ü…that they now watch product reviews before buying.
ü…that they now search brand information online before buying.
ü…that they have bought products from a brand for the first time
during ECQ because it supports frontliners during the pandemic.
ü…that they have bought products from a brand for the first time
during ECQ because it supports affected COVID-19 communities.

TENDENCY TO RESEARCH ONLINE
In addition, Gen X, Millennials and Gen Z consumers
tend to search for information online before
purchasing products. However, Millennials and Gen Zs
significantly do this compared with other age
generations.
TENDENCY TO CHAT
Among age generations, statistical evidence
suggests that the Millennials and Gen Zs have the
biggest tendency to chat brands on Facebook first
before buying products from them.
COVID-19 & CONSUMER BEHAVIOR - ONLINE
According to Boston Consulting Group (as cited in
Hutchinson, 2020), younger consumers are more willing
to shift away from physical shopping since they have
grown up with digital shopping options.

COVID-19 & SPENDING CHANGES
According to
Jones (2020),
consumers
expect that their
household
income will
continuously fall
as the pandemic
progresses.
Locally, majority
of the
respondents say
that COVID-19
has significantly
decreased their
monthly income.
During a crisis, consumers tend focus on their health and well-being rather than indulge
(Nielsen, 2020).
Locally, COVID-19 has pushed the 629 respondents to spend more on necessities over
electronics and other novelty products.
Spent more Same spending Spent less

COVID-19 & PURCHASE CHANNELS
ON OCCURRENCE
Statistical evidence suggests that there has been a significant decrease in the rate of in-store
product purchase occurrence, before vs. during ECQ.
COVID-19 and the local Enhanced Community Quarantine (ECQ) have pushed the consumers
to make purchases in e-commerce channels such as social media and website.
0
50
100
150
200
250
300
350
Website Social Media Mobile App Physical Store
Before ECQ During ECQ
With the
implemented
restrictions in
physical stores,
consumers
increasingly opt for
safer, nonphysical
stores (Nielsen,
2020); e-
commerce is a
considered
alternative by
consumers to buy
the items they
might have
otherwise
purchased in
person (Meyer,
2020).

ON PREFERENCE
Statistical evidence suggests that physical store is the least preferred purchase channel
during ECQ; in contrast, it is noticeable that COVID-19 has pushed some of them to consider
social media, website, and mobile app as alternative channels.
Website and mobile app will likely retain the consumer share they’ve acquired during ECQ.
0
50
100
150
200
250
300
350
400
450
Website Social Media Mobile App Physical Store
Before ECQ During ECQ After ECQ

ON NECESSITIES*
Although preference for physical store has remained strong throughout the quarantine, notice that channel
discovery for e-commerce has been significant.
* The respondents have spent the most on these products during ECQ.
For health and pharma players as well as grocery items, the ECQ has become a catalyst
for the consumers to discover the mobile app and website as new purchase channels.
Purchase occurrence will likely be retained in these new platforms as well after ECQ.
For fresh/frozen food items, social media
had been the digital channel of choice during
ECQ; however, both mobile app and website
had received higher post-ECQ ratings.

ON NECESSITIES*
Although preference for physical store has remained strong throughout the quarantine, notice that channel
discovery for e-commerce has been significant.
* The respondents have spent the most on these products during ECQ.
Purchase activities had been similar for toiletries and baby products throughout the
pandemic; consumers bought items via mobile app, social media, and website instead of
the physical store during the ECQ.
However, purchase occurrence will likely be retained only in mobile app and website due
to the nature of these products and ease of payment.
During ECQ, with most establishments closed,
consumers were obliged to purchase ready-to-
takeout food via mobile app, social media, and
website.
With the easing of quarantines, mobile app and
website would most likely to retain their newly
acquired users.

OTHER PRODUCT CATEGORIES
“Less priority” products had experienced a significant fall in terms of in-store product purchase occurrence during ECQ,
but this would likely return once strict regulations were lifted.
However, notice that these products have retained a consistent patronage rate on e-commerce throughout the ECQ.
Consumer
penetration rate
for e-commerce
will continue to
rise.
Consumers who
purchased
household items
online for the
first time during
this pandemic,
claim that they
will shop online
again in the next
12 months.
-Nielsen (2020)

THE NEXT STEP
ü For Filipino consumers, the preferred device is
Smartphone and the primary mode of accessing
the internet is Mobile Data. In particular, the
Millennials and Gen Z consumers who are on
Facebook have the tendency to chat or search for
online information before making a purchase.
ü Your websites should be optimized for mobile
viewing with concerns on information
coverage per page and speed. Moreover, it is
important for all your company/brand
information to be accessible and updated
during this time of heavy internet activity.
TENDENCY TO CHAT
Among age generations,
statistical evidence suggests
that the Millennials and Gen
Zs have the biggest tendency
to chat brands on Facebook
first before buying products
from them.

THE NEXT STEP
ü Filipinos will partake in online shopping as long
as the payment method, “Cash on Delivery,” is
available and the product doesn’t have to be
felt or tried “on” prior to purchase.
ü The Philippines is still a cash-heavy country; e-
commerce websites shouldn’t limit their
options to strictly digital channels or this may
hamper sales growth.

THE NEXT STEP
ü Filipinos have a soft side for brands who are
“self aware” and know how to navigate
themselves amidst current events.
ü Posting and/or advertising online during a crisis
is okay for brands, but messages should be
tuned in with the needs of both the people who
will consume the ads and those who are most
affected by this event. This advice may be
particularly useful for brands who get affected
as consumer priorities shift to necessities-only;
brand building may still be achieved to a
measured degree.
“Majority of the
respondents have bought
products from brands for
the first time during ECQ
because they support
frontliners…”
“During a crisis, consumers
tend focus on their health
and well-being rather than
indulge…”
- Nielsen (2020)
c

THE NEXT STEP
ü Consumers tend to focus only on the
necessities during a health crisis, and with
physical restrictions being implemented as a
consequence of this crisis, e-commerce
channels gain significant traction.
ü Channel discovery for e-commerce has been
significant in the Philippines during the
pandemic. Although many Filipinos prefer
shopping at a brand’s actual store, it is
important that your digital assets can
optimally work for you anytime a similar crisis
arises.
CHANNEL PREFERENCE
PURCHASE OCCURENCE

EXTERNAL REFERENCES
COVID-19: Entering a New Norm in Consumer Behaviour. Retrieved July 2, 2020 from https://
www.nielsen.com/sg/en/insights/article/2020/covid19-new-norm-consumer-beh
aviour/
Hutchinson, A. (June 2020). New Report Looks at How COVID-19 Consumption Behaviors will
Influence Gen Z Activity Moving Forward. Retrieved July 3, 2020 from
https://www.socialmediatoday.com/news/new-report-looks-at-how-covid-19-
consumption-behaviors-will-influence-gen-z/579940/?fbclid=IwAR3mp__o_LKz
i1set_Q7EsO2NUwAXuBiaH4XMdVXPvt7LwO9SB87Q231_YE.
Jones, K. (May 2020). These charts show how COVID-19 has changed consumer spending
around the world. Retrieved July 2, 2020 from https://www.weforum.org/
agenda/2020/05/coronavirus-covid19-consumers-shopping-goods-
economicsindustry/
Meyer, S. (2020). Understanding the COVID-19 Effect on Online Shopping Behavior. Retrieved
July 3, 2020 from https://www.bigcommerce.com/blog/covid-19-
ecommerce/#understanding-panic-buying-and-coronavirus.

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PART V: NEXT STEPS
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Unit 801 Antel Corporate Center
Valero Street, Salcedo Village, Makati City
Metro Manila, Philippines
(+632) 8256 6714; (+632) 8551 0986
inquiries@purplebugmail.net

PurpleBug Study - Consumer Purchasing Behavior Pre/During/After COVID-19 in the Philippines

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