The Impact of Covid-19 on Consumer Purchase Decision of Luxury Products in the Kingdom of Saudi Arabia

Raoah Marghalani

Master's thesis

Abstract:

The purpose of this study is to examine the effects of the covid-19 pandemic on luxury consumption and behavior in the Kingdom of Saudi Arabia. The study utilized a mixed methodology in order to gain more insights from the Saudi luxury consumers. This was done in the form of a quantitative method through an online questionnaire, and a qualitative method through an online focus group discussion. The online questionnaire collected a total of 216 responses, while the focus group discussion had 6 participants. The survey results show that Saudi luxury consumers were negatively financially affected after the pandemic justifying the changes in behavior and consumption. The findings also show a significant decrease in general spending and luxury spending. The decrease in luxury spending was more pronounced for upper-class, and young consumers. In addition, the study showed that social media following of luxury brands decreased, while shopping online increased. Furthermore, luxury shopping was the least preferred shopping category after covid-19. In addition, the focus group participants provided additional insights and further supported the results of the survey. Limitations of the study include time constraints leading to a smaller than desired sample size. Additionally, due to the covid-19 pandemic restrictions in movement, in-person interviews and in-person focus group discussions were not possible.

Abstract:

The purpose of this study is to examine the effects of the covid-19 pandemic on luxury consumption and behavior in the Kingdom of Saudi Arabia. The study utilized a mixed methodology in order to gain more insights from the Saudi luxury consumers. This was done in the form of a quantitative method through an online questionnaire, and a qualitative method through an online focus group discussion. The online questionnaire collected a total of 216 responses, while the focus group discussion had 6 participants. The survey results show that Saudi luxury consumers were negatively financially affected after the pandemic justifying the changes in behavior and consumption. The findings also show a significant decrease in general spending and luxury spending. The decrease in luxury spending was more pronounced for upper-class, and young consumers. In addition, the study showed that social media following of luxury brands decreased, while shopping online increased. Furthermore, luxury shopping was the least preferred shopping category after covid-19. In addition, the focus group participants provided additional insights and further supported the results of the survey. Limitations of the study include time constraints leading to a smaller than desired sample size. Additionally, due to the covid-19 pandemic restrictions in movement, in-person interviews and in-person focus group discussions were not possible.

Keywords

Luxury consumption, Saudi Arabia, Covid-19

Keywords

Luxury consumption, Saudi Arabia, Covid-19

Language used: English

Date on which the thesis was submitted / produced: 23. 11. 2020

Thesis defence

• Date of defence: 16. 6. 2021
• Supervisor: Václav Stříteský
• Reader: Radek Tahal

Vysoká škola ekonomická v Praze

Master programme / field:
Ekonomika a management / Management