A new shopping frenzy is set to occur as consumers hurry to buy a variety of products as they get used to the new realities of distance work and social distance.
Dr. Prashan Karunaratne, an economist at Macquarie University Business School, describes this new shopping method in the midst of the COVID-19 pandemic as a "substitution effect".
According to Dr. Prashan buyers are not satisfied with the panic buying toilet paper and staple foods like rice, noodles and canned goods. They are now focused on finding an alternative to their usual routine. This includes buying a range of new products to maintain their lifestyle at home and to replace activities that revolve around work, cafes, pubs and the gym.
"While Australia is being partially shut down, we see empty shop shelves for trampolines, computer screens, dumbbells, freezers, potted plants, hardware, video game consoles and alcohol," says Dr. Prashan.
“COVID-19 has had two effects on consumer purchases. First, several Australians have seen their incomes decline due to the negative impact that the virus has had on employment due to lower demand.
“The second consequence of the partial shutdown affects the way consumers achieve satisfaction with their needs and desires. Consumers now anticipate a short-term lifestyle change and need to find a replacement to achieve the level of satisfaction they want. "
The Post House-bound Aussies search for alternatives first appeared in Retail World Magazine.
