Is the effective confrontation with the effects of risks generated by the evolution of national economy during recession (unemployment, inflation rate increasing, freezing or decreasing of the wages, purchasing power decrease, investments value reduction etc.) but also the fear regarding the probability of being exposed. For instance, the loss of job security is not so visible like unemployment experience, but is a very stressful experience, sometimes more stressful than the unemployment itself. The individual preoccupied by job stability is exposed to a higher stress because of the anticipation of the outcomes generated by the possible unemployment and thus by the ambiguity of the future. The effects of this exposure are visible on a short term at the emotional level (anxiety, depression, exhaustion, lack of concentration).
Published in Chapter:
Understanding Individuals' Behavior Under Uncertainty: Strategy Key Driver in Economic Crisis
Amalia Duțu (University of Pitesti, Romania)
Copyright: © 2020
|Pages: 29
DOI: 10.4018/978-1-7998-1412-2.ch004
Abstract
An economic crisis is an uncertain situation with negative economic evolutions like unemployment, inflation rate increase, freezing or decreasing of the wages, purchasing power decrease, etc. All of these represent economic shocks. The individual well-being is determined by many things like level, secure income, job stability, health, social relationships, and economic household security. In order to understand How and Why people behave in certain patterns in such an uncertain situation, a comprehensive analysis of situational consequences should be considered. All of these dimensions of analysis are correlated in some way and explain the consumers' behavior alteration during turbulent times. History's crises showed surviving companies were those characterized by high-speed reaction, strategic flexibility and a very good understanding of market mood. Thus, this chapter explains the consumer's behavior change in recession conditions and the panic mechanism that shapes people reactions in such conditions.