Rethinking prices during an economic crisis: Calculation as a new mode of consumer behaviour in Russia

Abstract

Using qualitative data, this study explores Russians’ reactions to increases in consumer prices caused by the current economic crisis. The financial turbulence has reinforced doubts about the fairness of market prices and the overall legitimacy of the market order in Russia. Suspicion and cynicism about the State and seller behaviour become the main mode of price perception, encouraging proactive, calculating price behaviour. Respondents’ narratives reveal that proactive price behaviour is considered to be a sign of social competence, financial independence, and high cognitive capacity. Proactive pricing behaviour allows consumers to use their purchasing power for resistance to market injustice and social insecurity and to increase personal chances for sustainability.

Consumption dynamics during recession and recovery: A learning journey

“…Different aspects of crises and consumption are being examined including the changing process of household budget allocations (Du & Kamakura, 2008;Kamakura & Du, 2012), consumer price consciousness (Hampson & McGoldrick, 2017), calculative price behavior (Berdysheva & Romanova, 2017), the role of private labels and discount stores (Puelles et al, 2016;Lamey, Deleersnyder, Dekimpe, & Steenkamp, 2007), adaptive shopping patterns (Hampson & McGoldrick, 2013), consumers' money attitudes in the postrecession economy (Hampson et al, 2018), social and political discourses (Alonso, Rodríguez, & Rojo, 2015, media discourses (Vihalemm, Keller, & Pihu, 2016), ethnocentric consumption (Lekakis, 2017), social innovation and community-based responses (Blättel-Mink et al, 2017), communal exchange and social resilience (Garner, 2017) and collaborative consumption (Lindlbom & Lindlbom, 2017).…”

“…Consumers referred to the increased social responsibility associated with the economic recession and mentioned an additional concern of not wasting. Similarly, existing research emphasized the role of crises as drivers of more responsible behaviors and consumers' personal growth (Berdysheva & Romanova, 2017) revealing that consumers are least wasteful during these stages (e.g. Ang, 2001;Shama, 1981).…”

“…Economic downturns also develop dynamics of social resilience (e.g. Berdysheva & Romanova, 2017, Garner, 2007. The following interviewees' quotes illustrate these ideas:…”

Coping with crises: Consumption and social resilience on markets

“…This resistance may take different forms across the countries. In this issue, Berdysheva and Romanova (), explain Russians’ reactions to increase of consumer prices (such as price boycotts) as mundane and micro‐scale forms of protest and emancipation as consumers, despite the fact that the readiness for any collective mobilization is very low. Their paper shows nicely how crises induce changes in the appreciation of prices and how this in turn aggregates to a new norm of consumer behaviour.…”

Consumer Behavior Research: Theoretical and Methodological Paradigms Trending

“…In the current and future economic climate, the economic crisis is common. Thinking how economic crisis affects prices and consumer behavior is important (Berdysheva & Romanova 2017). Crisis can affect all the marketing mix variables and the value chain.…”