The Impact of Economic Risk Perception on Consumer Behavior: A Field Study in the City of Jericho after October 7, 2023

Abstract

The study aimed to analyze the perception of economic risks among residents of the city of Jericho during the war on Gaza and its relationship with consumer behavior patterns, while examining the role of demographic characteristics in moderating this relationship. The researcher employed the explanatory quantitative method, collecting data from 238 respondents using a questionnaire based on previous literature. Data were analyzed using the PLS-SEM structural equation model, and findings were reinforced through in-depth interviews with specialized local entities.
Results indicated that economic risk perception was high (M=4.35) and was associated with frugal consumer behavior, including reduced spending, focusing on essential goods, benefiting from offers, and turning to local products, with multiple strategies adopted to cope with the crisis. Demographic variables showed no significant moderating effect, reflecting the systemic nature of the crisis that transforms risks from individual to collective.
Based on the findings, the study recommended enhancing households’ financial awareness, encouraging saving and local production, developing flexible social protection programs, supporting low-income families, establishing a national economic monitoring observatory, integrating financial education into school curricula, promoting responsible economic media, controlling prices and monitoring markets, and organizing the stock of basic goods to strengthen household resilience and community stability during crises.