FORMATION OF NEW CONSUMER BEHAVIOR MODELS UNDER THE INFLUENCE OF THE CURRENT GLOBAL COST OF LIVING CRISIS

Abstract

The article examines one of the most influential contemporary global drivers of international business – the cost of living crisis – and its impact on modern consumer behavior models. It explores the trend of economic growth slowdown, the dynamics and forecast of inflationary fluctuations, and the consumer price index in the world and Ukraine. The author identifies three new consumer segments that have emerged over the past two years under the influence of the global cost of living crisis: Budget–conscious customers, Cost and value-savers, and Now-or-never customers. The article examines the behavior models and savings methods of these consumer groups, which have gained particular popularity worldwide over the past two years, specifically, the BNPL model, reorientation to cheaper retailers or substitute goods, transition to popular private labels and duplicate goods of well-known brands in the middle to lower price segment, the influence and rise of deinfluencers on social media, bundle-and-save models, monthly or annual subscribe-and-save plans, referral bonuses, loyalty programs, and more. Several examples of such international and Ukrainian companies, like Shein, Pinduoduo, Temu, and Avrora, are analyzed. By focusing on the peculiarities of consumer behavior influenced by the cost of living crisis, these companies successfully compete in the market with well-known brands and increase their customer base each month.