Business Cycles and Consumer Behavior

This cumulative dissertation contains three empirical research papers. In paper I, the author investigates the moderating influence of consumer confidence on the relationship between electronic word of mouth (eWOM) and sales. Using longitudinal product level data, the author demonstrates the changing effectiveness of different eWOM characteristics for consumersa decision making process in the light of varying economic conditions. Paper II turns the attention towards consumer purchase behavior in the fast moving consumer goods (FMCG) context. Using individual transaction data on the household level, the author reveals seven distinct shopping strategies and shows, how household switch shopping strategies when micro- and macroeconomic conditions change. Paper III investigates the impact of economic expansions and contractions on consumersa postpurchase satisfaction judgement expressed in the online opinion section of a retailer website. Using longitudinal data on the product level, the author demonstrates the distinct effects of economic expansions and contractions on consumersa opinion expressions in online environments.