Era-defining events that shape the global economy such as the COVID-19 pandemic and the ongoing Russia-Ukraine crisis can also impact consumer sentiment, says GlobalData. According to the leading data and analytics company’s latest consumer survey, 49%* of global respondents are always or often influenced by economic, social or demographic changes in society.

While this is lower than other key considerations, namely ‘time and money constraints’ or a sense of ‘familiarity or trustworthiness’, which are both at 64%, the encompassing and interconnected nature of such global developments can reinforce or undermine these other consumer concerns.

Katrina Diamonon, Principal Analyst at GlobalData, comments: “A sense of stability can be invaluable in instilling confidence in consumers. It enables them to make long-term decisions about their life and finances with conviction and optimism. However, elevated levels of social, political, or economic uncertainty are more likely to lead to purchase choices that are driven by caution, fear, and anxiety.”

Consumer responses to political uncertainty can vary, with some examples including stockpiling essential goods or ‘stress shopping’​. Consumers may also limit their discretionary spend​ or even boycott brands they perceive to hold some accountability.

Diamonon continues: “Political anxieties can manifest in a range of ways, depending on long- or short-term concerns, financial or social pressures, and the degree of willingness and motivation to bring about meaningful change. Since its invasion of Ukraine, we are seeing widespread calls for boycotts of Russian goods. ‘Surrogate boycotts’ such as these involve consumers targeting a company to elicit change from a third party and can represent a form of empowerment and regaining a sense of control.”

Consumer awareness of global events and geopolitics is also growing. As revealed by GlobalData’s surveys, the 49%* of people influenced by economic and social changes reflects a nine percentile point rise from 40%** this time last year in Q1 2021. ​

Diamonon adds: “An uncertain political environment can dampen consumer confidence and subsequently impact purchasing decisions. It is important to acknowledge, however, that people are resilient and adaptive even in challenging times, and reactionary measures taken by consumers in response to political volatility are likely to be short-term.”