Understanding consumer behaviour of recreational activities post-pandemic

Abstract

The Consumer Pulse Survey conducted by McKinsey in 2020 was aimed at studying the consumer behaviour towards recreational expenditure in different countries. It was observed in this study that unlike other countries, India and China seem to be increasing their expenditure in such areas. This showcased a unique opportunity to understand how the consumer behaviour has shifted due to pandemic in a heavily populated country, like India. The study in this paper has been conducted in two phases: an exploratory phase involving extensive literature study and focus group interviews, followed by a survey testing various hypothesis identified in the initial phase. The survey garnered 156 respondents. The hypotheses tested the positive trend towards recreational activities as well as sought to identify the key factors to the growth of such businesses in the future. Additionally. It aimed to understand if this trend is common for all kinds of activities. All the hypotheses identified in the research were proved true. There is definitely an increase in recreational spending post-pandemic. The study further identifies that Price, Availability of Digital Alternatives and Comfortability with Activity are the most important factors to a consumer when deciding on expenditure on recreational activity. Through deeper discussions, the study also lists certain recommendations of managers working in such fields as well as outlines the limitations that can be foreseen from this study.