Exploring Consumer Experiences and Psychological and Emotional Responses to Currency Exchange Rate Fluctuations in Urban Markets
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Abstract
The impact of currency exchange rate fluctuations on consumer behavior has been widely studied in the field of macroeconomics, particularly focusing on measurable outcomes such as price changes and consumption patterns. However, the subjective experiences of consumers in response to these fluctuations remain underexplored, especially in the context of local markets. Existing research has not adequately addressed how individuals emotionally and psychologically perceive these economic shifts. This study aims to fill this gap by exploring how consumers experience currency fluctuations and the emotional responses associated with changes in purchasing power.
We used a phenomenological approach, conducting semi-structured interviews with 20 participants, to capture the lived experiences of consumers, focusing on their emotional and psychological reactions to currency exchange rate fluctuations. In-depth interviews with 20 participants revealed that individuals experienced anxiety, stress, and insecurity as a result of rising prices linked to currency depreciation. Participants adapted by altering their consumption habits and seeking more affordable alternatives. These findings provide insight into the personal, emotional dimensions of economic phenomena, offering a deeper understanding of consumer behavior.
The findings have important implications for policymakers, highlighting the need to consider the emotional and psychological effects of economic policies. This study also opens avenues for future research into the long-term impact of currency fluctuations and other economic stressors on consumer well-being.
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