ECONOMIZING BEHAVIOUR DURING THE COVID-19 PANDEMIC

Abstract

The Covid-19 pandemic that has been going on in Indonesia for more than a year has had a major impact on the Indonesian economy. This condition makes consumers make various savings, namely strategies to save money. Consumer behavior related to savings is interesting to study because it is influenced by customer confidence, product involvement and social factors. The approach in this study is quantitative by analyzing the phenomena that occurred during the Covid-19 pandemic. Non-probability sampling will be used in this study with 305 respondents, but valid data to be processed amounted to 291 respondents. The questionnaire was distributed online using a google form. The data is processed using SEM via Amos. The results showed that consumer trust, product involvement influence social factors. While social factors affect the economy during the Covid-19 pandemic. However, customer confidence does not affect economizing behavior. We conclude that consumer trust and product involvement of young people (generation Z and millennials) tend to be influenced by peers, family, and people around them (social factors), including economizing behavior. Meanwhile, during the COVID-19 pandemic, this does not reduce economizing behavior among the younger generation (generation Z and millennials) in Indonesia.