Impact of Economic Crises on the Basic Food Products on Price Sensivitiy – Levels – Fairness – Awereness, Brand Loyalty, and Brand Trust

Abstract

Purpose- It is known by some studies that during economic crises, consumers mostly level of goods expenditures, being more cautious about paid compounds of price, give priority to mandatory requirements, and also drop off brands of their loyalties. The main purpose of this study is to understand such an effect whether is available in consumers’ basic food products selections or not and to determine in the consumer’s basic food products the economic crisis effect on brand loyalty, brand trust, price levels, price sensitivity, price fairness, and price consciousness. Design/Methodology/Approach- In the framework of this purpose in order to determine the argued associations a structural path model has been established and related hypotheses have been set up. The study has been conducted on a consumer population who is older than 18 years old and living in Turkey, shopping for basic food products and a convenience sampling technic has been employed. An online survey method has been used for data collection. In the research project, 7 scales which are Likert Type have been used. So as to test the hypotheses put forward in terms of study, a structural equation model was designed and SmartPLS 3.2 was used for analysis. The developed model’s internal consistency reliability, convergent validity, factor loadings, discriminant validity, HTMT ratio, cross-loadings, Fornell-larker criterion, consistent, path coefficients, R square values, blindfolding analyses, and influence of demographic traits have been analyzed in the model. Results- As a result of the study, it was found that the economic crisis has been significantly impact on price fairness, price levels, price consciousness, price sensitivity, brand loyalty, and brand trust in the consumer’s basic food products. It was seen that the more the economic outlook gets worse in basic food products the more consumers’ price fairness, price levels, price consciousness, and price sensitivity have increased. All proposed hypotheses are supported. It was determined that the research model has estimation power on the variables of price fairness, price sensitivity, price consciousness, brand loyalty, and brand trust, additionally study brought out that demographic traits have a significant influence on the model. Discussion- In terms of consumer aspects, although the economic crisis atmosphere has significantly negative impacts on argued price elements, however, it was determined that brand loyalty and brand trust are not so much negatively being influenced as contrary to what is expected in basic food products. Marketers should take care of this conclusion; infact this result may not reflect customers’ preference in long term and it may erode business brand loyalty and brand trust. Also, Turkish-originated consumers’ brand loyalty and brand trust should be studied whether differentiates according to other types of products or not in the basic food products.