Covid-19's impact on consumer behaviour patterns

Last week the Commission published the new Key Consumer 2020 data following from the

Consumer Scoreboard 2020, which documents the changes in consumer behaviour during the pandemic, as it was conducted at the end of 2020. Interestingly, one of the emphasised by the report conclusions revolves around 'greener' consumption choices that have been made (see the press release here). This follows from the findings that 

• 56% of consumers said that 'environmental concerns influenced their purchasing decisions', 
• 67% - 'bought products that were better for the environment, even if such products were more expensive', and
• 81% - 'shopped closer to home and supported local businesses 

Other interesting findings indicate the increase in the amount of consumers shopping online, unsurprisingly, as well as more concerns about the ability to timely pay bills. The latter may have contributed to the noted consumers' reluctance to make a major purchase. Covid-19 delayed also consumers in making travel plans.

What does not seem to have been influenced by the pandemic is the high level of trust consumers have in retailers. The extra time spent at homes during the pandemic also did not seem to have encouraged consumers to read upon their consumer rights - as only 27% showed the knowledge thereof. Consumers remain also reluctant to take actions when there are issues with their transactions.

The 2018 Consumer Scoreboard

On 12th October the European Commission published the 2018 Consumer Markets Scoreboard. The Consumer Scoreboard provides an overview of how the EU single market works for consumers. There are two kinds of Consumer Scoreboards, the Markets scoreboard and the Conditions Scoreboard which get published in alternate years. This year it is the turn for the Markets Scoreboard which monitors the performance of over 40 markets as experienced by consumers.

Here is a summary of some of the most interesting findings of the scoreboard:

• The overall positive trend of consumers' assessment of markets continues; however there is divergence between different part of the EU. Markets in Western Europe perform better, while markets in South Europe are lacking in performance. The Eastern Europe markets are the ones that show the greatest improvements.
•  Services continue to underperform in the Scoreboard with the lowest performing being banking services and real estate.
• The financial situation of consumers plays an important role in their assessment of markets as poorer consumers are, unsurprisingly more negative in their assessment.
• Choice and comparability in utility markets, and especially in electricity, is leaving consumers dissatisfied.
• The highest incident of problems reported (16.9%) was noted for telecommunications, with that percentage being even higher (20.3%) for internet services. While the performance of the markets ranges across countries, with southern countries being less satisfied, the sector continues to be a cause for concern.

Justice Commissioner Vera Jourova responded to the findings of the Scoreboard by pointing out that the 'New Deal for Consumers'and the announced measures, such as a new representative action for consumers should serve to increase consumer trust in the single market.