Understanding the Effects of Economic Uncertainty on Consumer Behavior: Evidence from Pakistan

Abstract

The purpose of this study is to investigate the link between economic uncertainty and purchase decisions in Pakistan, with a particular emphasis on identifying the elements that impact consumer behavior. The study investigates the influence of income volatility, inflation, household demographics, and socio-cultural variables on purchasing decisions in uncertain economic circumstances using focus groups. The findings add to the current research by giving insights into the impact of economic uncertainty on household consumption in Pakistan and providing useful information for policymakers and practitioners in developing targeted interventions and policies. Focus groups give for a thorough understanding of consumer behavior in developing countries. The study acknowledges the need for additional research on variables that may influence consumer decisions. This research advances understanding of consumer behavior in developing nations while also promoting economic stability and well-being in Pakistan's distinct socioeconomic context.