Consumer Sentiment During the COVID-19 Pandemic: The Role of Others' Beliefs

49 Pages Posted: 16 Apr 2021

See all articles by Dzung Bui

Dzung Bui

University of Marburg

Bernd Hayo

University of Marburg - School of Business & Economics

Giang Nghiem

Leibniz Institute for Financial Research SAFE; Leibniz Universität Hannover

Lena Dräger

Leibniz University Hannover

Date Written: 2021

Abstract

This paper investigates the direct and indirect effects of others’ beliefs on respondents’ own beliefs and consumer sentiment. Conducting consumer surveys with randomized control trials (RCTs) in Thailand and Vietnam during the COVID-19 pandemic, we implement two information treatments. Both treatments contain cross-country information about others’ beliefs about the appropriateness of the government’s or the general public’s reaction to the pandemic. The first treatment is asymmetric across our sample countries, as it shows opposite appropriateness ratings of the governments’ reaction in Vietnam and Thailand, whereas the second treatment is rather symmetric. We find that the information treatments affect consumer sentiment only in Vietnam, where the sign of the effect suggests that the treatments are viewed as positive news. Moreover, consumer sentiment in Vietnam is strongly affected by both treatments when the information goes against respondents’ prior beliefs.

JEL Classification: E210, E370, E710, D840, D830

Suggested Citation

Bui, Dzung and Hayo, Bernd and Nghiem, Giang and Nghiem, Giang and Dräger, Lena, Consumer Sentiment During the COVID-19 Pandemic: The Role of Others' Beliefs (2021). CESifo Working Paper No. 9010, Available at SSRN: https://ssrn.com/abstract=3830215 or http://dx.doi.org/10.2139/ssrn.3830215

Dzung Bui (Contact Author)

University of Marburg ( email )

Universitätsstrasse 24
D-35032 Marburg, D-35032
Germany

Bernd Hayo

University of Marburg - School of Business & Economics ( email )

Universitaetsstr. 24
Marburg, D-35032
Germany
++49(0)6421-28-23091 (Phone)
++49(0)6421-28-23193 (Fax)

Giang Nghiem

Leibniz Universität Hannover ( email )

Königsworther Platz 1
Hannover, 30167
Germany

Leibniz Institute for Financial Research SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Lena Dräger

Leibniz University Hannover ( email )

Königsworther Platz 1
Hannover, 30167
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
95
Abstract Views
504
Rank
406,302
PlumX Metrics