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JURNAL INTERNASIONAL

13 Nov

Crisis of Global Business and Consumer Behaviour:
Kingdom of Bahrain as a Case Study
Durra Mansur
College of Business and Finance, Ahlia University, Kingdom of Bahrain
P.O. Box 10 878, Level 1 Gosi Complex Exhibition Road, Manama, Bahrain
Jalal Akram
Management Information Systems Department, College of Business and Finance
Ahlia University, Kingdom of Bahrain
P.O. Box 10 878, Level 1 Gosi Complex Exhibition Road, Manama, Bahrain
Tel: 97-338-383-411 E-mail: ajalal@ahliauniversity.edu.bh

Abstract
Consumers are the most fundamental basis for any business organization, then, the behavior of their nuclei and also the importance of great significance for successful marketing experience and financial wealth. However, the purchase of consumer behavior can vary severe and have a very complicated trends. Consumer buying behavior has been attracting a large number of studies and commercial and academic factions for a long time. The complexity of the process by which consumers can purchase in touch with trends have made it very difficult to predict and manage. This research aims to study the impact of global crisis Business in Bahrain
consumers, investigating their perceptions on this issue and whether their consumption behavior has changed as a result. As known, the current financial crisis had a major influence on economic and social aspects of consumers around the world. Different behavior has shifted through different levels of the economy, one of them, the Cultural Bahrain purchasing patterns. For this reason, this study aims to focus on the changing trends in consumer buying behavior in today’s global business crisis.
Keywords: Global Crisis, consumer behavior

1. Introduction
In general, consumer behavior is the study of the processes through which individuals or groups in making their purchasing choices in order to meet their needs. Usually purchasing behavior takes many forms
consumer choice can vary depending on a broad set of factors such as income, demographic, social and cultural factors. In addition to the basic internal factors that are considered influential to purchasing behavior, there are also some factors that will be simulated by external circumstances in the environment surrounding consumers. It is worthwhile to mention that consumer behavior is a combination
awareness of customers buying combined with external motivators to generate changes in consumer behavior. This is why most countries around the world share one problem; because of external influences on the internal aspects of the community. The phenomenon of consumer behavior has been so long attracted much research because of its critical importance to businesses around the world. By predicting the behavior of consumers, businesses can understand consumer needs, and can work on meeting the needs and meet the expectations of their customers. This will ultimately help companies to retain their wealth and achieve their long term goals. The context of this study can significantly help businesses and professionals to uncover changes that may occur to consumers’ buying behavior as a result of the global financial crisis. Giant financial institutions and banks have collapsed during the financial crisis of 2007. Shortage in the U.S. financial system and market crisis the U.S. sub-prime mortgage has a ripple effect to other industries in countries around the world. The crisis caused disruption to the economy of Europe and Asia are strongly put them on bricks deep recession. Another weakness in the global financial system has a surface. Some http://www.ccsenet.org / ijbm International Journal of Business and Management Vol. 6, No. 1; January 2011 Published by the Canadian Center for Science and Education 105 financial instruments are too complicated and misleading which caused distrust in the global financial system. The crisis caused by inflation and commodity price fluctuations, and therefore, consumers are beginning to take action shifts to the needs and desires. Psychological outcome of the accident has been extended worldwide as businesses become receptive to
drag caused by this crisis, especially regarding the expansion of their current projects and securing investment capital markets for future growth. The uncertainty that surrounded the business naturally affect the work
security for employees, consumers have faced uncertainty about their income, and consumption levels drop. Sharp decline in the stock market has caused many sad events such as, reduction of credit, bank failure, work stoppage, the contraction in the money supply and closing a business. New finance an increase in a state of panic and uncertainty among consumers. Many consumers around the world have fears related to their financial and material safety. In addition to reduced labor income, many households lost their life due to failure in the banking system or a sharp decline in the values ​​of their homes and savings shares. The social impact of financial crisis can be seen more clearly in developing countries where poor people are very hurt during a crisis as demand for their labor falls, the price of essential commodities increased
social services and cut substantially. They find themselves forced to pull children out of school and the food is being rationed between families, with the first woman to sacrifice their part. General economic
slowdown and rising unemployment households are forced to increase working hours or to send additional members for the workforce. As a result, household spending down as much as income. Consumers can not prevent the fall in total spending, they tend to adjust the basket of goods purchased. For example, expenditures for food and the need to increase compared with spending on clothing. The crisis is causing the market to contract and major changes appear in their structure. The buyers are changing their buying behavior. They start worrying about their jobs and do not enjoy spending their money again. They were delayed or reduced the number of purchases related to recreation and entertainment. People may begin to buy less quantity, or switch to a larger size items to avoid a repeat purchase. They also began to switch brands, and
focus on price rather than quality and they also have started to intensify the search on the web to find cheap. The role of government is important enough to protect consumers against inflation by controlling and preventing further increase the price of purchasing power to ensure that consumers are not going to get worse cause serious problems such as long-term unemployment and poverty. This research aims to study the impact of the global financial crisis on consumer Bahrain, investigating their perceptions on this issue and whether their consumption behavior has changed as a result. The results of this study are based on analysis of questionnaires randomly distributed to consumers in Bahrain to have a picture of their knowledge of the Global Financial Crisis and some of the effects and to see if the financial crisis affected their consumption. Data were analyzed using the SPSS package for
test the hypothesis. In order to investigate the existence of statistical significance between the variables in the hypothesis, we will apply the One Sample T-test method. However, the paper approaches the difficulties faced by some consumers after the financial crisis and try to suggest some solutions. One of the most
important issue is that consumers suffer from accelerated rates of basic commodities like food and housing. In order to establish a clear framework and address the purpose of this study, the research can be divided into
seven parts.

Part 1
Introduced the topic by defining the purpose of research, the main questions that represent the research problem, purpose and value of this research.

Part 2
Significant literature review of previous research topics with respect.
Part 3
Introduces the research methodology followed to investigate the research questions.
Section 4
Shows the hypothesis testing and test results.
Section 5
Discusses some of the challenges revealed through the investigation of research.
Section 6
Propose some solutions and recommendations on issues introduced in the previous section.
Section 7
Presents the discussion and final conclusions about research findings and how they have addressed the research questions.

2. Literature Review

2.1 Consumer Behavior
Perner, (2008) states that consumer behavior involves the study of the process by which individuals, groups, or organizations do to obtain a product, service, experience, or ideas to satisfy their needs and how the process has affected consumers and society. The role that consumers play in today’s very important to http://www.ccsenet.org / ijbm International Journal of Business and Management Vol. 6, No. 1; January 2011
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business’ survival. This is the driving force behind the success of many businesses, because most of the contemporary consumer spending big on buying decisions. “Behaviour buy regarded as a very complex phenomenon because it consists of a broad set of activities before and after the purchase” (Hansen, 2004, p. 9). Purchasing process consists of five stages. Starting from recognizing a problem or in other words, recognizing the need to be met, the consumer then start looking for information related to problems or needs. After evaluating various alternatives, the consumer makes the decision to buy the most suitable alternative and the final stage comes after the purchase, when
consumers evaluate the choices made. There are four different classes of consumer buying behavior identified by the literature. What distinguishes
These classes can be observed overall frequency of occurrence, emotional involvement, decision-making complexity and risk. This species is known as: programmed behavior; limited decision-making buying behavior; extensive decision-making impulsive buying behavior and purchase (Arnould, 2002, p. 172). Programmed behavior (also called habitual behavior) is distinguished by a low complexity and little information search, this process is usually known as a regular purchase low cost items that consumers use to buy out of habit: like coffee, newspapers, bus tickets, etc. (Learn marketing , 2008). Limited decision making purchasing behavior involves a reasonable level of decision-making and the relatively low amount of information search in order to generate a purchase. An example of this type can purchase clothing when a person can easily get information about products and quality, and spent a short time to choose clothes that you want (East, 1997, p. 183). Purchase decision-making behavior is broadly identified as the opposite sex to limit the decision making purchasing behavior (Foxall and Goldsmith, 1994, p. 165). In this process the consumer will spend relatively more time in search of information and will take a long time to make a decision about this purchase because the process is usually adopted when purchasing less expensive products that take a large share of consumer income and involves a higher risk of psychological ( Peter and Olson, 2007,
p. 89). The last type of purchasing behavior are identified by the literature is an impulsive purchase. This is a decision made unconsciously and is induced by an external stimulus that will create a specific product to appear attractive and
irresistible to consumers (Wells and Prensky, 1997, p. 49). It can be seen in the four behaviors listed above, that the basic driving force behind this behavior is the consumer emotion. This is the main determinant of buying behavior is strongly influenced by several external and internal factors (Chaudhuri, 2006, p. 35). Although emotion is a subjective matter that differ according to individual attributes and situational context, it is still regarded as the most fundamental determinants of the behavior of planned and unplanned purchases (Havlena and
Holbrook, 1986). Appropriate behavior unplanned impulsive purchase is largely driven by the emotional strength (Laros and Steenkamp, ​​2005).
On the other hand, planned behavior is a result of rationality rather than emotionality because of planned behavior is a complex process for many of the information required and the length of time spent on the selection.
Although the behavior of the planned mainly due to the emotions, is still considered to be less emotional than unplanned. The theory of planned consumer behavior related to consumer perception of complexity. Simply stated, the planned purchase of consumer behavior is described as how hard the consumer to choose and secure the product. Level of complexity is driven by the opportunity cost of the alternatives as well as transaction costs such as time, money and effort (Ajzen, 1991). This theory also presents the concept of ‘perceived behavioral control al’ as an important component of a planned behavioral intentions al. This theory explains the important role of consumer perceptions of complexity and the important function of the risks associated with each action purchase (Posthuma and Dworkin, 2000). It is observed that as consumers’ expectations of a negative result of this increased level of perceived risk increases (Hansen, 2004, p. 6). 2.2 Consumer Behavior in Response to Financial Crisis buying pattern of people tend to change during the hard times and stress as economic crisis (Nistorescu and Puiu, 2009). Consumers react to changes in the economic situation around by changing its consumption. This occurs because of changes in the level of risk perception.
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The financial crisis affecting the customers not only economic but also psychological. People become more money minded. They do not want to spend anymore money on premium products, even if they are still able to do so. They only buy necessities, switching to a cheaper brand and have a more rational in the promotion. They began to compare different products and choose based on the price of sacrificing quality (Nistorescu and Puiu, 2009).
Buying process in this situation can change from being programmed or limited behavioral decision making purchasing behavior into the behavior of large purchase decision. In other words buying behavior before the crisis was not based on an extensive decision-making and information gathering process but after the crisis becomes more complicated. Growing unemployment, rising inflation, “frozen” or even a decline in wages, the decline in purchasing power, poor economic situation is the fact that affects consumers in almost all national markets. As long as people read more about the economic crisis and during the press reflects the focus on the effects of the crisis, there is a psychological effect with a negative impact on consumers (Amalia P., P. Ionut, 2009). The effect of the crisis on people can be reflected in their consumption. George Katona (1974) showed that many people believe that within a few months when the price will be higher, they will spend more on the needs and therefore will have less resources at their disposal to purchase the desired goods and services but not essential. Therefore pushing inflation delay discretionary spending. G. Katona (1974) also argues that during the recession people are motivated to save because of the threat associated with
their job or income. The saving rate declined due to economic conditions improve. He suggested that the savings are more or less influenced by economic and psychological factors. But during hard times it is difficult for some people
especially those that have been directly harmed either by declining wages or those who were forced out of their jobs to save money because they are left with little money that they prefer to buy necessities.
In their study, P. and P. Ionut Amalia (2009) showed that people are not equal and not everyone has the same perception of the situation with negative effects such as the economic crisis. Which palingpenting factors model of consumer behavior in this situation are: the risk attitude and risk perception. Risk reflects the attitudes of consumers regarding the interpretation of the content and how much risk he did not like the content of those risks. Interpretation reflects the risk perception of consumers from possible risks exposed to the content.
Using risk attitudes and perceptions of risk factors, consumers can be divided to:
1. The consumer panic: are those who have high-risk attitudes and perceptions of high risk. This kind of consumers are in a stressful situation directly. They reject the high risk and will try to avoid risk.
These consumers tend to react in a crisis context. Any way it is expected panicked consumers to drastically cut their spending, untu reduce consumption and even switching brands of product categories. They will eliminate a major purchase and will be focused on finding the best prices. So, they are not loyal to any brand, they are loyal only to the best prices.

2. The consumers are wise: are those who have a high risk attitudes and perceptions of low risk. Even if consumers: they are a risk and assume that they are not in a stressful situation as soon as they are not at high risk. Thus, consumers are very thoughtful and carefully plan their shopping, delay major purchases, in some cases switching brands, they are very well informed in the purchase process.

3. Consumers worry: are those who have a low risk attitude and risk perception is high. Even if consumers assume that their high level of risk they are exposed to content that they hate risk and usually
take risks. So their behavior is determined first by the perception of risk. Types of consumers will plan their shopping. This can happen only in case of increased risk perception. Also, this category will continue to make a large purchase, but only if they make a “good deal”. If the perception of risk increases, they will tend to put off major purchases. They tend to remain loyal to the brand but in some cases they can switch to the option price is less, in this case the company could introduce a lower version of the premium or secondary brands in their portfolio to maintain them. Also interesting that this type of consumer is ready to try new and innovative products despite difficult times.

4. The consumers are rational: it is they who have the attitudes and perceptions of low risk low risk. So they are not at risk of harm and assume that they are not exposed to the risk content. They avoid information about the
to the effects of the crisis and they generally maintain a “normal behavior” them. It is expected that consumers will not reduce their spending, and will continue to buy their favorite brand and try innovative products. According to Ang, SH (2001), changes in consumer behavior timbuldari economic crisis can be moderated by personality characteristics. These include the extent to which risk harming consumers, the value
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conscious, and materialistic. Avoidance of risks associated with the extent to which individuals feel comfortable with a foreign state and are willing to do the occasion. Value consciousness refers to the importance an individual places on getting the best deal with a fixed price or quality. Materialism concerns the importance of an individual’s place in the physical property as a reflection of the stations of his life to others. New trends in consumer behavior arises as a result of the economic recession. A study conducted by Paul
Flattering and Michael Willmott (2009) identify new trends.
1. A request for simplicity: during a recession consumers are used to offer limited and they tend to simplify their request, so that after the crisis is expected that consumers will continue to buy simple with the biggest value offerings.

2. Discretionary savings: even rich people saving, even if they do not need. They expressed their dissatisfaction with the excess consumption. They began to recycle, purchasing items to use and teach their children simple and traditional values.

3. Mercurial consumption: consumers today are “agile” they act quickly in response to price changes, and have the ability to switch brands to find the price at the expense of quality and loyalty.

4. Green consumerism: this trend has slowed during the recession because people are not willing to pay more for products that have close substitutes at lower prices. Demand for green, environmentally friendly has been
decreases but is anticipated to recover after the recession.

5. Ethical consumerism: people who donate less to charity, animal welfare etc., because they focus on the welfare of their families. This trend is expected to recover slowly after the recession. Many surveys in several countries examined the impact of the global financial crisis in consumer behavior, such as (by research and marketing, 2009):? “In the United States 90% of U.S. consumers believe that they are currently living in a recession. This is an indication of how the recession caused by financial crisis affected consumer behavior. 56% of U.S. consumers feel that their lifestyle has been affected by the recession. All of a sudden, consumers are forced to revalue their spending and shopping options. For 72% of U.S. buyers, lower prices have a high amount of influence over where people do their shopping “. ? “The same survey conducted in Spain and the results showed that 82% of consumers believe that their Spanish is currently living in a recession. 53% of Spanish consumers feel that their lifestyle has been affected by the recession. More than one in three British consumers experience deteriorating financial situation , falling job security and falling confidence in the housing market in 2008 and 2009 “. ? “In Southeast Asia, 78% of Chinese customers have felt some impact from the financial crisis and middle class consumers in the age group 19 to 45 is the most feel the pressure. (82%) of South Korean consumers believe that they are currently living in a recession. More than a third of Japanese buyers to give some of their favorite brands to save money “. ? “In the Arab world around (59%) of consumers in the United Arab Emirates (UAE) and 30% in Saudi Arabia believe that their country is in recession, research shows that consumers adjust their consumption behavior s. (38%) of consumers Arabia and (37%) the UAE has changed their lifestyle in response to the global economic crisis. luxury brands have become an important part of Saudi Arabia and the UAE as a standard of living of consumers willing to pay higher prices for products they believe will bring them social status “.
3. Methodology
This study examines the impact of the Crisis of Global Business at the behavior of consumers in Bahrain. The problem of this study was to identify the impact of the Global Financial Crisis on consumer behavior in Bahrain, is presented in
the following questions:
1. To what extent are consumers aware of FC Global Bahrain and its impact?
2. What is the impact of the Global Financial Crisis on changes in consumer behavior from Bahrain?
The Hypothesis:
H1: – The consumer Bahrain aware of the Global Financial Crisis and its impact on consumption, inflation and
against the country’s economy.
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H2: – Consumer Behaviour Bahrain to make changes in the influence of the global financial crisis, this is a shift from
expensive for low-cost replacement, the shift from luxury to an essential, a shift from bulk to small quantities
and a shift from consumption to savings.
Questionnaires will be distributed to a random population and the survey results will be analyzed by using
SPSS software.

4. Hypothesis Testing and Analysis of Results
This part of the research covers three main topics, the first is about testing the reliability of statistical data analysis using Cronbach alpha. The second topic is about the descriptive statistics of research variables through descriptive statistical measures such as frequency and percentage. The third topic represents hypothesis testing research, using one sample T-test.
4.1 Testing the reliability
In order to measure the internal reliability of the data used in this study, Cronbach’s alpha is used to measure internal consistency. Reliability test results should be close to alpha = 0.82. Higher values ​​indicate
more reliability.
4.2 Descriptive Analysis
Table 1 describes the sample age group. (6%) of the sample is between 18 and 24 years (14%) were between 25 and 34 years (14%) were between 35 and 44 years (9%) were between 45 and 54 years (6%) is between 55 and 64 years
and (1%) is at 65 years old or above.
Table 2 shows that the sample consisted of 30% males and females 20%.
Table 3 shows the different income categories of monthly samples. 16% of the sample to get under SW 1000. The second group obtain BD 1000-2000 and consists of 15%. 9% of the sample to get a monthly income between
BD 2000-3000. The last group of the 10% gain over BD 3000. Table 4 illustrated that approximately (74%) of respondents reported that they were aware of the global financial crisis (64%) believe that it has affected the consumption and (66%) reported that the global crisis which led to inflation
(88%) of respondents to understand the impact of the global financial crisis on the economy of Bahrain. Table 5 illustrates that (58%) of respondents reported that they turned away from buying expensive items for cheaper substitutes, and (52%) switched from buying luxury items that are important, (58%) mentioned that they buy in small quantities rather than large quantities, (46%) of respondents noted that they do not agree about the shift from consumption to savings.
4.3 Testing the hypothesis
In this section, one sample t-test will be used to test our hypothesis.
First: setting hypothesis for one sample t-test:
H1: “alternative hypothesis”: The consumers Bahrain aware of the Global Financial Crisis and its impact on consumption, inflation and the economy of the country.
H2: “alternative hypothesis”: Bahrain Consumer behavior influences changes in the global financial crisis, this is a shift from expensive to cheaper substitutes, from luxury to an essential shift, the shift from bulk to small quantities and a shift from consumption to savings. Second: Calculation of degrees of freedom by using the following formula:
V = n – 1
Where,
V = degrees of freedom
Then, V = 50-1 = 49
Sig = 0 .05
Then, find a T-table value, which is t-tab = 1.684
Third: Hypothesis testing:
In hypothesis testing for one sample t-test, the calculated value of (t) will be compared with table values. To accept the alternative hypothesis, the value calculated from one sample t-test should be larger than the table value. It should also be noted that the value must be less than 0.05 sig.
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4.4 The results of testing the first hypothesis:
Accept the alternative hypothesis H1, because all values ​​above are calculated from the t-table t = 1.684, and all values ​​below the sig sig = 0.05. ? Impact of consumption has a significant relationship with the global financial crisis. ? Effect on consumption has a significant relationship with the Global Financial Crisis. ? Effects on the rise in inflation has a significant relationship with the Global Financial Crisis. ? Effect on the country’s economy has a significant relationship with the Global Financial Crisis.

4.5 Results of testing the second hypothesis
Three of the four values ​​calculated from t is above the t-table = 1.684, and three of the four sig sig = below 0.05, thus the alternative hypothesis H1 accepted. ? Shifted from expensive to cheaper substitutes have a significant relationship with the Global Financial Crisis. ? Shifted from luxury to essential goods have a significant relationship with the global financial crisis. ? The shift from bulk to small quantities have a significant relationship with the Global Financial
The crisis. ? The shift from consumption to savings does not have a significant relationship with the Global Financial Crisis. T t-table below sig = sig = 1.684 and 0.05 above.

5. Challenge
The current crisis has reached global consumer. This has threatened their wealth as people lose their assets, savings, and they face major concerns about the stability of their future. They lose confidence in the current financial system because some financial institutions have put peoples’ money at risk to their own advantage. Even consumers who do not have a bank account and never applied for
loans have been affected by this crisis. Consumers should be aware that the global financial crisis has reached a level of consumption and no longer just affecting financial institutions and investors. The four identified challenges associated with the financial crisis largely reshape the purchasing behavior
consumers are: lower disposable income, increasing the chances of risk costs, decreased savings and job uncertainty. Disposable income is defined as the amount of money available for spending and saving by households after income tax was withheld. Disposable income is reduced differentiated into the most important challenge for consumer purchase activity.
The options related to the opportunity cost of making certain that people often feel the pressure and be more careful during the purchase process to avoid making the wrong decision and therefore more likely to have an opportunity cost. People also face enormous pressure on the safety of their jobs because of the dismissal of staff redundant by the company they started to feel not confident with the stability of their jobs. Other results of the financial crisis, which resulted in changes in consumer behavior, is the inability to maintain the same level of savings before the crisis. Higher prices and the depreciation of money acknowledged to be the most significant factors preventing consumers
of maintaining the level of regular savings. This is the result of the financial crisis which resulted in the precautionary greater during the purchase. One cause of the financial crisis as seen by economists say the lack of consumer understanding of financial products and services that are becoming too complex. Through consumer education acquire specific skills and knowledge to help them make rational financial decisions. Here the government can play an important role to disseminate the knowledge needed in this field. This is mostly important in times of financial crisis when consumers are more than when to be able to find out how to avoid mistakes and navigate both new and traditional market confidence. There is now a new trend that consumers switch to the extensive use of e-commerce to seek lower prices and generate revenue on the Internet. Despite the consumer benefits have been realized, the e-marketplace is evidenced by the fraud and the lack of security in e-transactions that raises questions about privacy protection and ability to solve any problems that may arise. Health care costs continue to be a challenge to consumers, as the amount of medical expenses go up.

6. Proposed Solution & Recommendations
The role of government is fundamental in trying to overcome some problems associated with the global financial crisis. Intervention is important to ensure that consumers are not negatively affected by this crisis by subsidizing
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essential commodities like food. This will prevent an increase in prices in the future. Controlling prices will side with the consumers who have lost their jobs, wages and savings of a life time. There is a need for government to provide legislation to protect consumers from the effects of the global financial crisis, especially the poor. The government should take action to restore responsibility, accountability and transparency to the national and
international market by creating a legislative and institutional structures to reduce the undesirable effects of the global financial crisis, especially in the financial sector because of its vital role that affects all aspects of society.
Governments must be ready to step in, especially after the credit squeeze that has affected these vital services and harm the poor, especially in the sectors of food and housing. This should place restrictions on businesses that do not work on support for consumers. Education is a fundamental factor that helps the consumer to take a more rational decisions about their use of disposable income. This is rather unlikely for a population in which the financial research is not part of their compulsory education. It is strongly recommended that financial studies to be included as appropriate in the public schools as a core subject to be studied by all students. Banks and financial institutions have a vital role to help avoid another financial crisis by simply explaining to their clients the nature and features of their financial products. By explaining the consequences of acquiring certain products consumers can avoid the difficult loans or credit to pay or very risky investment. There is a need to spread awareness through consumer protection associations, to help consumers achieve the greatest possible benefits of using their income. Many consumers, especially the illiterate have no knowledge about the effects of the financial crisis and find it difficult to cope with difficult circumstances that the whole world to live through. Consumers should start focusing on long-term planning. They must plan for the future of their children to be able to meet financial obligations for their college tuition. Saving is an important action towards securing for retirement. This is a way to remain financially stable and generally feel more secure. In order to be able to increase savings plans, consumers should follow the planned behavior suggested by previous literature. By planning ahead of time consumers can purchase to avoid the extra expenses caused by unplanned purchases and as a result of the savings rate will increase. To avoid problems associated with rising health care costs is essential to set aside money in a special
health savings account or a store credit card on hand in case of emergency.

7. Discussion & Conclusion
The world is facing tremendous economic challenges. The U.S. subprime crisis in 2007 negatively affected the number with both developing economies, including Bahrain. The financial crisis known as the trend of multi-dimensional, which have different impacts on economic stability and social life. In this context it is observed that one of the most rigorous part of Bahrain’s economy is impacting consumer buying behavior. Consumer purchasing behavior is seen as a collection of decision-making process, which is determined by several internal and external factors. However, the most influential factor is recognized to be the external economic instability of the consumer experience of Bahrain. Depressing effects of the financial crisis has hit the whole ‘buying behavior consumer buying behavior affects both planned and unplanned s.
Excessive unstable environment is very challenging for retailers Bahrain and especially their marketing strategy. Stemming from the crisis and impacts on our business activities in Bahrain, retailers were forced to adapt to this crisis by making use of their marketing mix components. Components of the marketing mix we see is the price, product, place, promotion, and people. Marketing strategies of the most prosperous promising long-term growth
and customer loyalty is one that enables the integration and innovation among the various components of the marketing mix such as non-traditional promotions, prices reasonable, charming in the surrounding shops, high-quality service and superior quality goods. “Transactional increased complexity associated with making the financial crisis purchasing decisions more risky, therefore consumers prefer to switch to less harmful option. For some reason it is recommended that businesses adopt a marketing strategy that minimizes transaction costs. According to the survey, the majority of respondents agreed that they are aware of the financial crisis and which have an effect on consumption their own.
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During the recession many consumers will be forced to cut back on their spending, but how and how much they cut back, will be very different from the brands and categories. Each consumer has a different set of priorities and loyalties that ultimately will determine whether and how they will change shopping behavior. Each person must choose between categories of different brands and choices differ from person to person, but the one consistent thing is that every brand evoke a certain set of positive feelings. In order for a product that will succeed in an economic downturn, it is very important to do more than simply meet the needs or services, but also must make an emotional connection with consumers that evoke positive feelings and keep him coming back for more. There are various ways to approach consumer loyalty; one way is to personalize a product. The less personal this product is a lesser need to remain loyal to that brand. It is known that in the situation of an economic downturn, consumers are only able to remain faithful to the product a little more, so any brand should strive to be among the brands.
In order for businesses to succeed in a recession, brands have to work hard to maintain and strengthen their long-term strategy, investing in developing their brand and differentiate their brand emphasizing on the competitors to be able to capture the loyalty of their customers. Other steps that must be taken into account such as, adding new brands to their portfolio, creating a strong personal relationships with their customers and create brand fell irreplaceable for its users. Recession worked in favor for the store brand and private label brands, creating great opportunities to improve their market position. They have the opportunity to steal significant market share from more expensive brands because consumers focus on reducing their spending. Consumers Bahrain has adopted a new trend as a result of the financial crisis. They shifted from buying expensive goods for replacement goods are more expensive because it’s not worth paying a higher price for the brand with the same low price of the product. Many consumers have reduced their spending, they have redefined what they perceive as “needs” and what is considered “luxury”, but they still find it difficult to save. Saving is a very important role in the economic downturn. This can help consumers feel more secure and reap the fruit reduced their spending. Although the majority answered “No” to save, it does not mean they will not consider saving in the future when economic conditions will be more stable. Although some consumer buying habits conservatives can return to their usual status in a few years after the recession, but it is expected that consumers will have to change their shopping habits for good.

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Table 1. Age Group
Age Frequency Percent
18-24 6 12.0
25-34 14 28.0
35-44 14 28.0
45-54 9 18.0
55-64 6 12.0
65 + 1 2.0
Number of 50 100.0

Table 2. Gender
Sex Frequency Percent
30 males 60.0
female 20 40.0
Number of 50 100.0

Table 3. Monthly Income
Frequency Percent of monthly income
Under BD 1000 16 32.0
BD1000-2000 15 30.0
2000-3000 SW 9 18.0
On top of BD 3000 10 20.0
Number of 50 100.0
http://www.ccsenet.org / ijbm International Journal of Business and Management Vol. 6, No. 1; January 2011
ISSN 1833-3850 e-ISSN 1833-8119 114

Table 4. Consumer perception of the Global Financial Crisis
Total
Very
agree agree agree Good
agree or disagree very
not agree
Factor
Fre Fre% fre%%% Fre Fre%
3 6 2 4 8 16 24 48 13 26 50
Bahrain customers
began to feel
global impact
financial crisis in
consumption
2 4% 9 18% 7 14% 25 50% 7 14% 50
The financial crisis has
I was exposed to
Consumption of priority
2 4% 7 14% 8 16% 22 44% 11 22% 50
I know that the global
financial crisis
contributed to the increased
inflation
- – 2 4 4 8% 34% 68% 10 20% 50
I understand
the effects of global
financial crisis in
Bahrain Economy

Table 5. Global Financial Crisis Impact on consumer behavior Bahrain
Total
Very
agree agree agree Good
agree or disagree very
Factors do not agree
Fre Fre% fre%%% Fre Fre%
2 4% 9 18% 10 20% 10 20% 19 38% 50
The shift from expensive to
cheap
2 4% 11 22% 11 22% 14 28% 12 24% 50 The shift from luxury to
important
3 6% 4 8% 14 28% 24 48% 5 10% 50
shift from large
a small quantity
quantity
9 18% 14 28% 9 18% 11 22% 7 14% 50 The shift from
consumption savings
http://www.ccsenet.org / ijbm International Journal of Business and Management Vol. 6, No. 1; January 2011
Published by the Canadian Center for Science and Education 115

sumber : http://www.ccsenet.org/journal/index.php/ijbm/article/download/7161/6526

 
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