Economic Instability and Consumer Behaviour: A Study of Emotional Mediation and Demographic Moderation
Sneha Kumari Vishwakarma1, Sandeep Kumar Rawat2
1Sneha Kumari Vishwakarma, Scholar, Department of Commerce, Chhatrapati Shahu Ji Maharaj University, Kanpur (U.P.) India.
2Dr. Sandeep Kumar Rawat, Assistant Professor, Department of Commerce, Chhatrapati Shahu Ji Maharaj University, Kanpur (U.P.) India.
Manuscript received on 02 June 2026 | Revised Manuscript received on 08 June 2026 | Manuscript Accepted on 15 June 2026 | Manuscript published on 30 June 2026 | PP: 17-23 | Volume-12 Issue-10, June 2026 | Retrieval Number: 100.1/ijmh.K188412110726 | DOI: 10.35940/ijmh.K1884.12100626
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Economic instability has become an increasingly important factor influencing consumer decision-making, yet the psychological mechanisms by which it affects purchasing behaviour remain poorly understood. This study investigates the impact of economic factors on impulsive buying behaviour, examining the mediating role of fear and anxiety and the moderating effects of age and gender. The research is grounded in the Stimulus–Organism–Response (SOR) framework, which explains how external environmental stimuli influence internal psychological states and subsequent behavioural responses. A quantitative research design was employed using primary data collected from 401 consumers through a structured questionnaire. Economic factors, fear and anxiety, and impulsive buying behaviour were measured using validated Likert-scale items. Data were analyzed using the PROCESS Macro in Statistical Package for the Social Sciences (SPSS). Mediation effects were examined through PROCESS Model 4, while moderation effects were tested using PROCESS Model 2. Bootstrapping with 5,000 resamples was used to assess the significance of indirect effects. The findings reveal that economic factors significantly and positively influence impulsive buying behaviour. Economic factors were also found to significantly increase fear and anxiety, which, in turn, exerted a strong positive effect on impulsive buying. Mediation analysis confirmed that fear and anxiety partially mediate the relationship between economic factors and impulsive buying behaviour, indicating that economic stress affects consumer purchasing decisions both directly and indirectly through emotional distress. Furthermore, age and gender significantly moderated the relationship between economic factors and impulsive buying. Younger consumers exhibited stronger impulsive buying tendencies under economic stress, while the strength of the relationship varied across gender groups. The study contributes to consumer behaviour literature by integrating economic and psychological perspectives within a single framework. The findings highlight the importance of emotional responses in understanding consumer behaviour during periods of economic uncertainty and provide valuable insights for researchers, marketers, and policymakers seeking to promote informed and financially responsible consumer decision-making.
Keywords: Economic Factors, Consumer Behaviour, Fear and Anxiety, Impulsive Buying Behaviour, Mediation Analysis, Moderation Analysis, Stimulus–Organism–Response Framework.
Scope of the Article: Business Models