Wait, bond, and buy: Consumer responses to economic crisis

Although economic crises tend to be perceived as a time in which consumers cut back on expenditures (including cars, clothes, and houses), market data also shows that sales of certain products increase during economic downturns. How do consumers respond to an economic crisis? And what is the psychology behind such behavior? These are questions to which this dissertation is devoted. Three empirical chapters show that an economic crisis activates different fundamental human needs, which play a decisive role in consumer spending and saving. In the first essay, we provide support for the idea that under external uncertainty about the future financial situation, consumers not only rapidly stop making large consumption decisions, but also stop making discretionary saving decisions. In the second essay, we provide support for the hypothesis that in times of economic crisis consumers' need to connect increases. Hence, brands, products, and advertising that cater to this need are preferred and can even increase consumers' willingness to pay for them. In the third eassy, we provide support for the idea that female sexy clothing that enhances chances to mate are preferred and even increase women's willingness to pay in times of economic crisis.