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THE IMPACT OF COVID-19 ON THE HOUSEHOLD ECONOMY AND

CONSUMPTION PREFERENCES: AN INTERNATIONAL SURVEY

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Journal of Global Economics and Business July 2020, Volume 1, Number 2, 91-115
ISSN: Print 2735-9344, Online 2735-9352

THE IMPACT OF COVID-19 ON THE HOUSEHOLD ECONOMY AND

CONSUMPTION PREFERENCES: AN INTERNATIONAL SURVEY1

Bilal CELIK,

Nile University of Nigeria, Department of Economics, Abuja,

[email protected]

Kemal OZDEN,

Nile University of Nigeria, Department of Political Science and International Relations,

[email protected]

Senol DANE

Nile University of Nigeria, Department of Physiology,

[email protected]

ABSTRACT

This study examines the effects of Coronavirus (COVID-19) on the household economy and
consumer preferences between goods and services. Together with many other effects, this
pandemic increased panic, anxiety, and depression level in both teenagers and adult people.
This study covers the period from January 01 to May 2020. In this study, the attitudes of
families in terms of food consumption and shopping preferences towards the COVID-19
pandemic outbreak and lockdown were examined. Along with the secondary sources of data,
the questionnaire technique is used as the primary resource. The questionnaire was conducted
during the lockdown period of COVID-19 when all participants were self-isolated at home.
The research found out that the pandemic caused increasing unemployment, decreased
household income, and decreased the consumption of luxury and semi-luxury commodities.
Before the disease, the first and second preferences for food consumption were meat and
bakery foods, but during the pandemic, the first and second preferences were fruits and
vegetables.

Keywords: COVID 19, Household Economy, Pandemic, Consumption Preference.

1
A previous version of this article was presented at International Webinar on Covid-19 and Its Impact on Global
Economy, Yobe State University, 05-07 July 2020, Yobe State-Damaturu, Nigeria.
The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

1. Introduction

In humankind, history was many epidemic and pandemic diseases, and many people were dead
for this reason. As we know, such as SARS, MERS, EBOLA, LASSA FEVER virus depended
on epidemic illnesses, were threatened people live in the last four-five decades. (WHO, 2018)
However, humankind was founded remedy for them. The Coronavirus (COVID-19) is
dangerous and effective than others, also spread wide faster than the preceding. (Radcliffe,
2020) The coronavirus first appeared from the Wuhan City in China in December 2019 and
spread widely around the world in two weeks very fast. (Ruiyun Li, et al., 2020)

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered

coronavirus. Coronaviruses are a large family of viruses that are known to cause illness ranging
from the common cold to more severe diseases such as Middle East Respiratory Syndrome
(MERS) and Severe Acute Respiratory Syndrome (SARS). It depends on the virus, but
common signs include respiratory symptoms, fever, cough, shortness of breath, and breathing
difficulties. In more severe cases, the infection can cause pneumonia, severe acute respiratory
syndrome, kidney failure, and even death. (WHO, COVID 19, 2020)

COVID-19 is a disease with a very high mortality rate. It resulted in the widest pandemic
geography, and about 210 countries and regions around the world were occupied by its
unbearable influences. Moreover, a second conveyance is being experienced. Meanwhile, the
overall mortality rate of COVID-19 was started 35% averagely, then decreased until 9% today
in the world according to the international institutions' reports about coronavirus disease.
(Worldometer, 2020). As the World Health Organization (WHO) announces it is a public health
emergency of international discomposure on January 30, 2020, and it called for collaboration
and support of all countries to prevent the rapid spread of COVID-19, in response to this
difficult situation all over the world (Euro.WHO, 2020). Consequently, on March 11, 2020,
WHO has declared that COVID-19 disease is a pandemic. Eurozone, Italy, Germany, Spain,
France, England with Turkey and Russia, was the most severely affected, consequently the
epicenter of this pandemic that rapidly moved from China to Europe. Later, it has moved to the
USA, through New York and severely affected the country. Also, COVID-19 Pandemic
increased in Brazil, India, Peru, Iran, Chile, Mexico, Pakistan, Canada, Bangladesh, Qatar,
South Africa, and other countries today.

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Celik, Ozden, & Dane

The scientists are hardworking on the vaccine and special effective treatment for the remedy
of coronavirus pandemic illness. Unfortunately, there is no vaccine and a cure for a novel
coronavirus yet around the world.

Thanks to vaccines, hundreds of millions of deaths have been prevented. Polio

has been pushed to the brink of eradication, and just in the past few years, new
vaccines have become available for Ebola and malaria," said Dr. Tedros
Adhanom Ghebreyesus, WHO Director-General. But vaccines only realize their
true power when they are deployed to protect the poorest and most vulnerable.
The COVID-19 pandemic is unraveling many of the gains we have made, with
vaccination campaigns for polio, cholera, measles, diphtheria, and meningitis."
(WHO, 2020).
For this reason, people afraid and many persons are in isolation either voluntary or compulsory.
Nevertheless, governments got some urgent measurement; firstly, they stopped international
flights, then domestic flights. Many countries are started to lockdown implementation and
restricted all human indoor and outdoor collective activities. Then, they banned or restricted
people's outdoor movement. Also, banned or restricted economic activities and public services
without main phases. All this situation is affected the world economy drastically in a short
time.

However, the fight against the COVID-19 pandemic is still getting very low levels of success
across the world. To access success, people's positive approaches to the control measurements
are incredibly important since the pandemic has severe vital influences not only physically but
also psychotically. The SARS outbreak in 2003 taught us that knowledge and attitudes against
viral infectious outbreaks are closely related to the panic emotion level of people because the
panic fear can foreclose the governmental precautions. (Celik B., Dane S., Ozden K., 2020)

As part of the response to COVID-19, virtually all OECD countries affected by the virus have
introduced strict restrictions to social and economic life, including social distancing and even
full lockdowns. (OECD.org., 2020) The COVID-19 outbreak has various effects on human
behavior, and on his environment, particularly lockdown implements have drastically impacted
human life, such as; individual, social, and economical.

The epidemic outbreak and lockdown increase the psychological stress on people (Xiao, 2020)
and (Li Duan; Gang Zhu , 2020). Steadily spread of the disease, the official hard isolation
applications and closings of educational institutions are expected to affect the mental health of
all people. There are many studies on the possible harmful effects of the infectious epidemics
on the general public, patients, medical staff, children, and older adults (Qiongni Chen, et al.,
2020) and (Yuan Y, et al., 2020). In a previous study, it has been reported that having relatives

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

infected with COVID-19, its economic and social effects with impacts on daily life, as well as
delays in academic activities, enhances anxiety levels among college students (Wenjun Cao,
Ziwei Fang, et al., 2020). Also, in a previous COVID-19 study, Nigerian university students
had high anxiety levels than normal people (O. Rakhmanov, S. Dane., 2020). In another recent
study, it has been reported that there are low anxiety and depression levels in academic staff
against COVID-19 (Dane S., Rakhmanov O, Demir A., 2020). They suggested that the
knowledge levels of people should be increased to decrease their anxiety and depression by
means of online distance education systems.

The COVID-19 isolation implementations are may a good measure method and beneficial for
the protection of people's health, but they cause a lot of economic disadvantages. Moreover, as
the isolation time increases, it causes people's physical and mental health to deteriorate. This
situation causes personal, family, and social problems. Moreover, as the duration of COVID-
19 measures prolongs, unemployment rates increase for economic reasons. It is already known
that unemployment has many personal and social negative consequences. However, as
COVID-19 and measures against its spread, unemployment rates increase.

Furthermore, some changes in food consumption preferences and their causes were reported in
a recent study. Before the pandemic, the first and second preferences for food consumption
were meat and bakery foods, but after the outbreak, the first and second preferences were fruits
and vegetables. Before the outbreak, the first and second causes for preference were cost and
health, but after the outbreak, the first and second causes for preferences were quality and
medical concerns (Celik B., Dane S., Ozden K., 2020). Unfortunately, however, there is a lack
of academic studies about the effects of the pandemic outbreak on the household economy
(incomes and expenses). In this study, the effects of the COVID-19 pandemic outbreak on the
family economy was investigated.

On the other hand, International and regional human rights organizations want to pay attention
to human rights while governments get measurement against the Covid-19 pandemic.

International human rights law guarantees everyone the right to the highest
attainable standard of health and obligates governments to take steps to prevent
threats to public health and to provide medical care to those who need it. Human
rights law also recognizes that in the context of severe public health threats and
civil emergencies are threatening the life of the nation, restrictions on some
rights can be justified when they have a legal basis. Those are strictly necessary,
based on scientific evidence and neither arbitrary nor discriminatory in the
application, of limited duration, respectful of human dignity, subject to review,
and proportionate to achieve the objective. (hrw.org., 2020. )

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Celik, Ozden, & Dane

UN, International economic organizations such as IMF, World Bank, WTO, ILO, and
communities, are in anxiety and warning countries for an expected hard global economic
recession and crisis.

COVID-19 is hitting hard an already weak and fragile world economy. Global
growth in 2019 was already the slowest since the global financial crisis of
2008/2009. COVID-19 has plunged the world economy into a recession with
the potential of profound consequences and historic levels of unemployment
and deprivation. Necessary measures to contain the spread of the disease
through quarantines, travel restrictions, and lockdown of cities have resulted in
a significant reduction in demand and supply. Economic activities in
transportation, retail trade, leisure, hospitality, and recreation have been
battered. And we have seen from plunging stock markets that public trust in the
health response has direct and immediate economic effects. (UNSDG.UN.Org.,
2020)
Since that is started the COVID-19 period, people are losing their job at a significant rate
around the world. Even in the stronger economies unemployment rate is increasing drastically.

ILO estimates are that as many as 25 million people could become unemployed,
with a loss of workers' income of as much as USD 3.4 trillion. However, it is
already becoming clear that these numbers may underestimate the magnitude of
the impact. (ILO, 2020)
Guy Ryder (2020) Director-General, International Labour Organization underlined, "those
substantial reductions in employment were foreseen in Arab countries with 8.1% or 5 million
full-time employees, Europe with 7.8% or 12 million full-time workers and Asia and the Pacific
with 7.2% or 125 million full-time workers."

Also, the prediction of the unemployment rate for the future is very horrible. Mainly the
unemployment rate can be worst for emerging economies around the globe.

COVID-19 to trigger roughly 195 million job losses: ILO. The present crisis is
quite different from the previous ones. The impact of the lockdowns adopted to
mitigate the pandemic has vastly surpassed that of the initial trade shocks and
the travel restrictions introduced soon after the outbreak (these restrictions had
significant but mainly sector-specific impacts). Non-essential services and
production places were directly affected by the lockdowns, which led, among
other things, to a reduction in the number of hours worked and to job losses.
Unless they receive government assistance, previously viable businesses risk
going bankrupt. Countries with greater dependence on the service sector, higher
levels of informality, and weak safeguards against the termination of
employment have experienced much higher initial job losses. (Kenny, 2020)
In this empirical study, the effects of COVID-19 on the household economy, which is the core
of the economy: the income, expenditure, consumption preferences of families and their
economic and psychological-sociological causes were investigated by interdisciplinary

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

(Economics-Medicine-Political Sciences and International Relations) study. Consequently, in

this case, the sectoral effects of COVID-19 have been tried to be explained. Besides, the results
of quarantine and isolation on the family economy and family members' consumption
preferences and unemployment rates were attempted to be revealed. For this purpose, 26
questionnaires (April 25-May 5, 2020) were sent online to 800 people covering 24 countries
from all continents, of which 411 people-family have voluntarily participated in our survey.
After the Chi-Square, weighted average, correlation tests, distribution, estimation, and
verification tests were performed over the SPSS program, and analyzes were performed. In
addition, we tried to reach a correct conclusion by making use of the literature review,
evaluation reports of international organizations, and other studies on this subject.

2. Literature Review

Scientists have some studies on the effects of epidemic diseases, especially in the last 40-50
years, on human behavior and the economy. COVID-19 is an epidemic that has the most
significant impact on human behavior and the economy due to the biggest outbreak of recent
years. For this reason, many academic studies have been conducted and published about this
epidemic disease in a short time. There are some studies related to changes in shopping or
consumption preferences during previous pandemic outbreaks.

Junk E. and Sung H. (2017) investigate in their study, whether the Middle East Respiratory
Syndrome (MERS) outbreak in Korea affected online and offline retail sales and determines
the presence of substitution or delay effect between the two. They analyze the monthly retail
sales of electronic goods, semi-luxury goods, and groceries using an autoregressive integrated
moving average (ARIMA) model with intervention. Their findings are as follows. First, offline
sales of electronic products declined by 7.9%, while online sales increased by 7.03%, indicating
that these markets can act as substitutes. Second, the offline sales of semi-luxury goods
decreased for two months, while online sales remained the same, meaning that there can be a
delay effect in the offline market. Finally, despite the slight increase in online sales and the
moderate decrease in offline sales, the MERS outbreak did not have a statistically significant
effect on grocery sales. Also, their research findings imply that stakeholders such as the
government and retail provided useful information on how to deal with the unexpected
outbreak.

Deleersnyder B, Dekimpe M.G., and et all. (2004) They specifically, worked on the concept of
cyclical volatility, and derive a dynamic comovement elasticity between the economy as a

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Celik, Ozden, & Dane

whole and the cyclical fluctuations in various performance series. To further enhance their
understanding of how consumers adjust their purchasing behavior across different phases of
the business cycle. Consumer durables are found to be more sensitive to business-cycle
fluctuations than the general economic activity. This is evidence for consumer behavior change
according to the condition of explicit effects on the economy, such as pandemic disease or
common catastrophic dramatic events.

Also, Jung H.J, Park M.J, and et all. (2016) investigated the effect of an epidemic MERS
outbreak in Korea on consumer expenditures. They used scanner panel data on consumers'
debit and credit card transactions, the present empirical evidence that infestations cause
considerable disruption in total consumer expenditures with significant heterogeneity across
categories. Their findings strongly imply that customers alter their behaviors to reduce the risk
of infection. The estimated effect of an epidemic outbreak is qualitatively different from that
of other macroeconomic factors. The implications of this research provide valuable guidance
for policy interventions and marketing decisions aimed at sustaining economic growth.

Ozden and Ozmat (2014) studied on the reasons and results of the epidemic plague of 1347 in
Europe. They analyzed in terms of city life and local administration, economy, population,
environment, religion, and medicine. In this context, the circumstances that led to the outbreak
of the epidemic, city administrations in their struggle against it, and the convulsions due to the
plague in different aspects of the city and social life are studied. Their findings summary as
follow: Throughout the Middle Ages, people in Europe struggled with outbreaks of infectious
diseases. While the outbreaks caused a loss in the society economically and socially with the
loss of population; It initiated steps towards the development of preventive healthcare services
in areas such as the development of the idea of contagiousness and contagion prevention, the
establishment of new policies in the field of public health and the opening of institutions
providing care services. The outbreaks of infectious diseases were causes of changed
economic, social, and health systems completely in Europe throughout the Middle Ages. Ulutin
(2016, 76) explains in detail how the typhus pandemic severely effected the army in Ottoman
Empire when they were in the campaign at 1908.

Wang, K.Y. (2014) studied, "How a change of public transportation usage reveals the fear of
the SARS virus in a city." According to this study: The outbreaks of the severe acute respiratory
syndrome (SARS) epidemic in 2003 resulted in unprecedented impacts on people's daily life.
One of the most significant impacts on people is the fear of contacting the SARS virus while
engaging in daily routine activity. He uses data from daily underground ridership in Taipei City

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

and daily reported new SARS cases in Taiwan to model the dynamics of the public fear of the
SARS virus during the wax and wane of the SARS period. He has found that for each reported
new SARS case, there is an immediate loss of about 1200 underground ridership (the fresh
fear). These daily loss rates dissipate to the following days with an e-folding time of about 28
days, reflecting the public perception of the risk of contracting the SARS virus when traveling
with the underground system (the residual fear). About 50% of daily ridership was lost during
the peak of the 2003 SARS period, compared with the loss of 80% daily ridership during the
closure of the underground system after Typhoon Nari, the loss of 50-70% ridership due to the
closure of the governmental offices and schools during typhoon periods, and the failure of 60%
daily ridership during Chinese New Year holidays.

Pepijn B., Hans K., and et all. (2020) worked on "Europe After Coronavirus: The EU and a
New Political Economy." According to this group report paper: The COVID-19 crisis could
lead to a broader rethink of Europe's political economy. This paper explores what such a model
might look like, and what it would mean for the governance of the European Union. In
consequence; The COVID-19 pandemic has created a health and economic crisis without
modern parallel. The scale of its effects could prompt a far-reaching re-evaluation of the role
of the state in relation to the market in Europe. This paper is a thought experiment examining
the consequences of a change in Europe's political economy and the potential implications for
the European project.

Jonathan Masters (2020) investigated some selected developed countries' macroeconomic

indicators change the reason for COVID-19, such; China, Germany, Japan, United Kingdom,
United States, also some multilateral institutions macroeconomic reports. According to that
study: The coronavirus is throttling the global economy. In a matter of weeks, the highly
contagious disease has pushed the world to the brink of a recession more severe than the 2008
financial crisis. The depth and duration of the downturn will depend on many factors, including
the behavior of the virus itself, public health responses, and economic interventions. Given the
extraordinary nature of the pandemic-induced crisis, fiscal and monetary policymakers are
working without a playbook. Many, however, are moving forward with stunning bailouts that
could collectively top $10 trillion.

Another most important study is the second brief report of UNDP (UN, 2020). This report
snapshotted global socio-economic sight and snapshotted many countries, mainly African
countries' socio-economic position with COVID-19 effects. According to this study: Globally,
the number of newly reported cases continues to be growing and waving. This wave is breaking

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Celik, Ozden, & Dane

precisely as many countries in the region are reopening their economies after months of
lockdown measures, which indicates a likely worsening of both the epidemiological and socio-
economic situations in short to medium term. The UN's work on socio-economic impact
assessments and recovery frameworks must, therefore, be viewed as a fluid process, responding
to national contexts and evolving over time. Furthermore, global human development, as the
combined measure of the world's education, health, and living standards, is on course to decline
for the first time in 30 years. COVID-19 has triggered massive disruptions in economies, jobs,
and livelihoods. The economic shocks can hit countries before the health shocks, through
macroeconomic transmission channels, and persist after the health crisis is over.

3. Methodology and Analyses

The majority of we used primary data in this empirical study. An online survey (questionnaire)
was generated and shared only with participants, the people experiencing pandemic lockdown.
The survey was conducted during the lockdown period of COVID-19 when all participants
were self-isolated at their homes. The aim was to ensure the results obtained from the probing
were valid and reliable. In the survey, the questionnaires for the changes in the family economy
during COVID-19 disease lockdown were posted online for volunteers to fill out. Four hundred
and eleven participants/families were included in this study. All of them agreed to participate
in this study voluntarily (304 men and 107 women) (Table 1). The respondents' ages range
were between 20 to 65. To keeping the confidentiality and privacy of the survey, a secured
internet link for the survey was produced and shared only with participants who were willing
to fill out. All participants have completed the survey voluntarily. The experimental protocol
was held by following international ethical standards. The study was performed per under the
Helsinki Declaration (1975, revised in 1996-2013)

The objectives and aims of the study were explicitly explained to the participants before the
commencement of the study. All participants voluntarily submitted their written consent to take
part in the study. The study kept anonymity, and it was done between April 25 and May 05,
2020.

However, while investigating the effects of the changes in consumers' psycho-sociological and
socio-economic behaviors related to COVID-19 on consumption, articles, and scientific
research on this subject were used, a subject scan was done.

Our statistical analyses and findings are divided into two sections because of types of survey
questions: The questions in the first part are intended to measure the overall and socio-

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

economic effects of the COVID-19 pandemic outbreak implementations. Questions in the

second part is intended to measure the psychological effects of the COVID-19 pandemic
outbreak lockdown and restriction processes on household consumption.

Statistical Analyses-1

Measured values are given as a mean +/- standard deviation (SD). Statistical analysis was
performed by SPSS, Windows version 18. The Chi-Square Test was applied in order to find
out and compare the rates (percentages) of chances in the family economy during the COVID-
19 pandemic outbreak. A p-value of less than 0.05 was considered statistically significant.

Findings-1

Table 1: Socio-Demographic Features of the Participants (Number and Percentage of

Participants)

Gender Men: 304 (73.8%) Women: 107 (26.2%)

Country Nigeria: 180 Turkey: 127 (32.3%) USA: 28 (5.3%) Europe: 76 (16.8%)
(45.6%)

Income Low: 161 (39.1%) Middle: 227 (55.4%) High: 23 (5.5%)

Level

Source: Authors' findings.

Unemployment

According to the survey, 8,5% of those who answered stated that they are housewives and
91,5% of them say they are employees or business owners. Among this 91.5 %, from the
beginning of the COVID-19 process to spread, according to the answers until May 05, 2020:

9,2% lost their jobs,

6.3% are about to lose their jobs,

24% may lose their jobs in the medium term if the process continues. The unemployment rate
trend is upward.

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Celik, Ozden, & Dane

Guy Ryder (2020) Director-General, International Labour Organization, has been explained,
"those substantial reductions in employment were foreseen in Arab countries with 8.1% or 5
million full-time employees, Europe with 7.8% or 12 million full-time workers and Asia and
the Pacific with 7.2% or 125 million full-time workers." Moreover, the fact that the number of
people who lost their jobs due to this process reached 200 million around the world and more
than 30 million in the USA are supporting our findings today.

Figure 1: Changes in the Family Economy (Income and Expenses) during COVID-19
Pandemic Outbreak

90
80
70
60
50
40
30
20
10
0

Decrease No Change Increase

Source: Authors' findings.

Household Income

Participants reported a statistically significant decrease in their family incomes by the COVID-
19 pandemic outbreak (Chi-square=435.87, p=0.00). Of 411 participants, 179 (43.6%) of the
respondents of our survey stated that their income in the family decreased and only 49 (12%)
have reported an increase in their family incomes due to the Covid-19 process at the following
rates (Figure 1):

17.4% of the income of the family decreased between 0-25%

16.4% of the income of the family decreased between 25-50%

08.8% of the income of the family decreased between 50-100%.

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

According to weighted average calculation, families' incomes decreased by 14.92% in average.

The theory of John Maynard Keynes, which has led to reduced demand in markets and reduced
investments in the event of a decline in family income, has been proven many times in practice.

Household Expenditures

Participants reported a statistically significant increase in their family expenditures by the

COVID-19 pandemic outbreak (Chi-square=162.913, p=0.00). And 175 (59.6%) have reported
an increase, and only 82 (20.3%) have reported a decrease in their family expenditures (Figure
1). Household expenses were increased 59.6% but 20.3% decreased. Hence it has increased
39.3% clearly.

Household Food and Drink Expenditures

Participants reported a statistically significant increase in their nutrition expenses by the

COVID-19 pandemic outbreak (Chi-square=269.915, p=0.00). And 281 participants (68.5%)
have reported an increase, and only 37 (9.1%) have reported a decrease in their food-drink
expenses (Figure 1). According to our questionnaire results, 68,5% of respondent families'
expenditure of food and beverage are increased as below, because of COVID-19 outbreak
process:

23,7% of the expenditure of the families increased between 0-25%

28,7% of the expenditure of the families increased between 25-50%

16,1% of the expenditure of the families increased between 50-100%

According to the weighted average calculation, families' expenditure of food and beverage is
increased by 25,79% on average.

Household Cleaning and Hygiene Expenditures

Participants reported a statistically significant increase in their cleaning, hygiene expenses

during the COVID-19 pandemic outbreak (Chi-square=348.15, p=0.00). And 308 (75%)
participants have reported an increase, and only 12 (2.8%) participants have reported a decrease
in their cleaning, hygiene expenses (Figure 1). As 75% of respondent families' expenditures of
cleaning, hygiene, and personal care materials are increased as below, because of COVID-19
outbreak process:

27,5% of the expenditure of the families increased between 0-25%

27,7% of the expenditure of the families increased between 25-50%

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Celik, Ozden, & Dane

19,8% of the expenditure of the families increased between 50-100%

According to the weighted average calculation, families' expenditure of cleaning, hygiene, and
personal care materials is increased by 28,67% on average.

Household Tap-Water-Electric-Gas Expenses

Participants reported a statistically significant increase in their water-electric-gas expenses

during the COVID-19 pandemic outbreak (Chi-square=248.943, p=0.00). And 264 (64.1%)
participants have reported an increase, and only 16 (3.8%) have reported a decrease in their
tap- water-electric-gas expenses (Figure 1). 64,1% of respondent families' expenditures of tap-
water, electricity, and gas are increased as below, because of COVID-19 outbreak process:

26,4% of the expenditure of the families increased between 0-25%

24,4% of the expenditure of the families increased between 25-50%

13,3% of the expenditure of the families increased between 50-100%

According to weighted average calculation, families' expenditure of tap-water, electricity and

gas is increased by 22.42% on average.

Household Communication Expenditures

Participants reported a statistically significant increase in their communication expenses during

the COVID-19 pandemic outbreak (Chi-square=393.586, p=0.00). And 245 (59.6%)
participants have reported an increase, and only 15 (3.6%) have reported a decrease in their
communication expenses (Figure 1). As 59,6% of respondent families' expenditure of
telecommunication (telephone, internet, digital subscription) are increased as below, because
of COVID-19 outbreak process:

19% of the expenditure of the families increased between 0-25%

19,5% of the expenditure of the families increased between 25-50%

21,1% of the expenditure of the families increased between 50-100%

According to the weighted average calculation, families' expenditure of telecommunication

(telephone, internet, digital subscription) is increased by 25.51% on average.

Household Entertainment and Cultural Expenses

Participants reported a statistically significant decrease in their cultural expenses by the

COVID-19 pandemic outbreak (Chi-square=191.878, p=0.00). Of 411 participants, 178 (42%)

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

have reported a decrease, and 92 (22,1%) have reported an increase, and 141 (34,9%) have
reported no change in their cultural expenses. (Figure 1). As 42% of respondent families'
expenditures of entertainment, cultural and art activities are decreased as below, because of
COVID-19 outbreak process:

12,6% of the expenditure of the families decreased between 0-25%

14,1% of the expenditure of the families decreased between 25-50%

15,3% of the expenditure of the families decreased between 50-100%

According to weighted average calculation, families' expenditures of entertainment, cultural

and art activities are decreased by 18.33% on average.

Household Transportation Expenses

On the other hand, expenditures on transportation, vehicle maintenance, and service,

entertainment, cultural, and art activities have been decreased significantly.

Participants reported a statistically significant decrease in their transportation expenses at the

time of the COVID-19 pandemic outbreak (Chi-square=376.377, p=0.00). Of 411 participants,
399 responded this question and, 166 (41.5%) have reported a decrease, and 68 (16.6%) have
reported an increase, and 164 (41,1%) have reported no change in their transportation expenses
(Figure 1). As 41,5% of respondent families' expenditure of transportation, vehicle
maintenance, and service is decreased as below, because of COVID-19 outbreak process:

18,5% of the expenditure of the families decreased between 0-25%

12,5% of the expenditure of the families decreased between 25-50%

10,5% of the expenditure of the families decreased between 50-100%

According to weighted average calculation, families' expenditures of transportation, vehicle

maintenance, and service are decreased by 14.87% on average.

Statistical Analyses-2

The participants' consumption priority preferences have changed the reason for COVID-19
anxiety and lockdown. These changes are calculated as below:

Measured values are given as a mean +/- standard deviation (SD). Statistical analysis was
performed using SPSS for Windows version 18. The Mc. Nemar-Bowker test was used to

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Celik, Ozden, & Dane

compare the food consumption preferences and their causes between before and after the
pandemic outbreak. A p-value of less than 0.05 was considered statistically significant.

Findings-2

There was a statistically significant difference in terms of the preference causes in food
consumption or shopping between before and after COVID 19 pandemic outbreak (Mc. Nemar-

Bowker test value=92.434, p=0.00). Before the outbreak, the first and second causes for
preference were cost and health, but after the outbreak, the first and second causes for
preferences were quality and health, respectively (Table 2 and Figure 2).

Table 2: The Preference Causes Food Consumption or Shopping before and after
COVID-19 Pandemic Outbreak

Before (N, %) After (N, %)

Cost 130 (31.6%) 39 (9.5%)

Quality 61 (14.8 %) 130 (31.6%)

Health 100 (24.3%) 76 (18.5%)

Brand Mark 54 (13.1%) 115 (28%)

Shopping Venue 66 (16.1%) 51 (12.4%)

Source: Authors' findings.

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

Figure 2: The Preference of Food Consumption and Shopping before and after COVID-
19 Pandemic Outbreak

Source: Authors' findings.

There was a statistically significant difference in terms of the food preferences between
consumption, before and after the COVID-19 pandemic outbreak (McNemar-Bowker test
value=43.493, p=0.00). Before the outbreak, the first and second preferences for food
consumption were meat and bakery foods, but after the outbreak, the first and second
preferences were fruits and vegetables, respectively (Table 3 and Figure 3).

Table 3: The Types of Food Consumption before and after COVID 19 Pandemic
Outbreak

Before (N, %) After (N, %)

Meat 120 (29.2%) 94 (22.9%)

Vegetables 59 (14.4 %) 101 (24.6%)

Fruits 76 (18.5%) 109 (26.5%)

Canned Products 74 (18%) 66 (16.1%)

Bakery Foods 80 (20%) 41 (10%)

Source: Authors' findings.

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Celik, Ozden, & Dane

There were no statistically significant differences in both the preference causes in food
consumption or shopping and the food preferences for consumption according to countries of
families before and after pandemic outbreak. There were no statistically significant differences
in both the preference causes in food consumption or shopping and the food preferences for
consumption according to income levels of families before and after pandemic outbreak.

Figure 3: Types of Food Consumption before And After COVID 19

Source: Authors' findings.

Sectoral and Sub-sectoral effect of the COVID-19 Outbreak Pandemic; Particularly

During Lockdown and Restrictions

Looking at the results of the survey, with the COVID-19 process: It has been observed that the
unemployment rate is in increasing trend around the world. Also, household expenses for food,
beverage, hygiene, cleaning and personal care products, water, electricity, gas, and
telecommunication (telephone, internet, digital subscription) have increased significantly. On
the other hand, expenditures on transportation, vehicle maintenance, and service,
entertainment, cultural, and art activities have been decreased significantly. Furthermore, some
sectors are affected positively or negatively, though some sectors are both because of sub-
sectors' differences (Table 4).

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

Table 4: Sectoral and Sub-sectoral effect of COVID-19 Outbreak Pandemic During

Lockdown and Restrictions

Sector + - +, - Sub-sector + - +, -
Service +, - Entertainment, cultural activities -
Transportation, aviation, trip, tourism, -
hotels, -
Restaurant, cafe, etc. +
Food and drink take away and delivery -
Financial, Banking, and transaction +
Communication, internet +
Health sector and service -
Education sector and services -
Real estate +
Tap-water, electricity, kitchen gas
(Household)
Trade +, - Food and drink take away and delivery +
Main consume goods +
Cleaning, hygiene and self-care material, +
etc. +
Medicine and health equipment +
Energy (Oil, electricity, gas) +
Online trade -
Semi-luxury and luxury commodities -
Construction materials -
Textile, clothes, wearing, home art
Agriculture + Grocery and fruits +
and Grains and pulses +
Livestock Meat -
Industry - Cleaning, hygiene, self-care material, etc. +
Medicine and health equipment +
Energy (Oil, electricity, gas) -
Automotive, machine, spare parts -
Construction - Housing -
Infrastructure -

4. Discussions

In order to obtain more accurate results suitable for the purpose of this research, the survey
results were evaluated together with the literature study and the reports and studies of
international organizations and other organizations. We also tried to compare past outbreaks
with their impact on economy and consumption preferences.

Human history has many viral pandemics, and many people have died for this reason. It has
been known that virus depended epidemics such as Lassa Fever (1969), Ebola (1976), HIV
(1981), SARS (2003), MERS (2012) have threatened human life in the last five decades.
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Celik, Ozden, & Dane

However, the human being has founded out remedies for them. But in this new case, it should
be accepted that the COVID-19 is more dangerous and fatal than others. (Celik B., Dane S.,
Ozden K., 2020)

The scientists are hardworking to discovering the vaccine and drug. Many people are in either
voluntary or compulsory isolation. Governments are stopped international and domestic flights
and restricted all human outdoor activities with lockdown implementation. All this situation
may affect the national and global economy and shopping and consumption preferences.

In the MERS pandemic, sales in both online and offline grocery markets did not change
considerably due to the MERS intervention. It seems that, by their nature, groceries are a
necessity rather than an option for life; hence, an unexpected event like the MERS epidemic
cannot dramatically reduce grocery consumption (Rakhmanov O, Dane S., 2020). However,
during the COVID-19 pandemic, the online and offline sales of groceries are experienced a
more considerable increase because of changes in the family consumption preferences, as
compared to before the outbreak.

When infectious diseases such as MERS, Severe Acute Respiratory Syndrome (SARS), and
H1N1 (a subtype of influenza A virus) spread, people worry about possible infections that can
affect their outdoor activities (Jung H.J, Park M.J, et al., 2016) and (WMA, 2020), and thus
consumer behavior (Dane S., Rakhmanov O, Demir A., 2020) and (Jung E., Sung H., 2017).
But, in the present study, there was a significant difference in terms of the preference causes
related to food consumption between before and after COVID 19 pandemic closure. Before the
outbreak, the first and second causes for choice were cost and health, but after the outbreak,
the first and second causes for preferences were quality and health, respectively. It can be stated
that they have changed their preference causes in food consumption from cost to quality.

According to this research, although there are some minor differences, the effect of COVID-
19 pandemic on families' income-expenditure and consumption proportionally is almost the
same in all countries. However, countries with a robust economy have supported families at
different rates. According to our survey and other researches, respondents from Europe and
America stated that they received state aid. In contrast, others indicated that they received
support mostly from NGOs, friends, and relatives.

The most devastating effect of COVID-19 pandemic on the economy is that it causes
unemployment. Keynes' theory of aggregate demand comes into play here, namely, while the
decrease in demand causes the production to decrease, the workplaces either decrease the

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

number of staff or close temporarily or permanently. Therefore, the decrease in total demand
turns into unemployment and recession over time, GDP decreases, and economies shrink.
According to our survey, it indicates that unemployment rates increase as the pandemic
duration increases and especially dependently lockdown period prolonged.

This change may be due to the fear and anxiety of death of COVID 19 because this pandemic
outbreak increased panic, anxiety and depression level in both young and adult people
(Qiongni Chen, et al., 2020) and (Wenjun Cao, Ziwei Fang, et al., 2020). During the SARS
outbreak, many studies investigated the psychological impact on the non-infected community,
revealing significant psychiatric morbidities [18-20]. It can be explained that the increased fear
and anxiety enforced this directly proportional change in the preference causes for food
consumption because they believe that quality food is related to good health and increased
immune system of the body.

Additionally, there were significant differences in terms of the food preferences for
consumption between before and after the COVID 19 pandemic outbreak. Before the outbreak,
the first and second preferences for food consumption were meat and bakery foods, but after
the outbreak, the first and second preferences were fruits and vegetables, respectively. The
majority of the media cause of this change also maybe the knowledge and belief in which fruits
and vegetables have more vitamins to fight viruses.

The big question is, how to manage these restrictions, and how to go back to a new normal
living with SARS-CoV-2 (COVID-19); a social and economic life that co-exist with the virus.

Governments should take policy measures to buffer the economic impacts of COVID-19,
which will affect lower-wage workers first and hardest. Social distancing, quarantine, and the
closure of businesses may have enormous economic consequences. The most vulnerable people
are low-wage workers in low-income households. Governments should create mechanisms so
that workers affected by COVID-19 do not suffer a loss of income that might deter them from
self-isolating to contain the spread of the virus.

5. Conclusion and Recommendations

According the results of this survey, it has been observed that the unemployment rate is
increasing around the world with the COVID-19 process. Also, household expenses for food,
beverage, hygiene, cleaning and personal care products, water, electricity, gas, and
telecommunication (telephone, internet, digital subscription) have increased significantly. On
the other hand, expenditures on transportation, vehicle maintenance, and service,

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Celik, Ozden, & Dane

entertainment, cultural, and art activities have been decreased considerably. Furthermore, some
of the sectors are affected positively or negatively, though some of the sectors are both, because
of sub-sectors differences

The results of the present study show that COVID 19 pandemic outbreak has a powerful impact
on food consumption preferences and their causes of families from various countries. Before
the outbreak, the first and second preferences for food consumption as meat and bakery foods,
but after the outbreak, the first and second preferences were fruits and vegetables. Before the
outbreak, the first and second causes for preference were cost and health, but after the outbreak,
the first and second causes for preferences were quality and health.

The pandemic has also shown that development is no longer going up the ladder; the direction
has changed. Based on the socio-economic standpoint across countries, the recovery path must
include a new human right based. Just and a fair social contract between governments and
people, and advocate for social safety nets with a broader reach, universal health insurance,
and affordable access to digital connectivity, as part of the new normal. Global collaboration
and solidarity are needed for an effective response, as no country will be able to address the
challenges alone. The recovery path from COVID-19 is likely to see societies and economies
opening and contracting with the waves of the pandemic. In this undulating new world of co-
existing with COVID-19, countries and societies will need to deeply invest in new capabilities
and capacities to adapt rapidly, anticipate change, manage risks and implement solutions to
build a better normal. (UN, 2020)

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The Impact OF COVID-19 on Household Economy and Consumption Preferences: An International Survey

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