{"id":246801,"date":"2026-04-08T00:01:12","date_gmt":"2026-04-07T18:31:12","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=246801"},"modified":"2026-04-14T06:20:31","modified_gmt":"2026-04-14T00:50:31","slug":"how-the-iran-israel-conflict-is-reshaping-global-consumer-markets","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/how-the-iran-israel-conflict-is-reshaping-global-consumer-markets\/","title":{"rendered":"How The Iran\u2013Israel Conflict Is Reshaping Global Consumer Markets"},"content":{"rendered":"

By\u00a0Zahran\u00a0Sikkanther Lebbe<\/a>\u00a0\u2013<\/strong><\/span><\/p>\n

\"\"

Zahran Lebbe<\/p><\/div>\n

Global crises\u2014such as the ongoing Iran\u2013Israel war disrupting oil supplies, economic crisis or Covid-19\u2014bring back a familiar scene. People queue for essentials such as fuel, sugar and other basic goods, while supermarket shelves empty. Consumers rush to grocery stores and petrol stations, often purchasing beyond their immediate needs.<\/p>\n

At the same time, the global market environment has become highly volatile, with rising inflation and shifting patterns in economic cycles. Naturally, this increases uncertainty and influences consumer spending and priorities.<\/p>\n

This shows a deeper shift in how consumers think, feel and act. Markets are not driven purely by economic fundamentals. Fear, urgency and social influence begin to take control over rational buying behaviour.<\/p>\n

Interestingly, Behavioural Finance used to explain investor behaviour and decision-making, can also help explain consumer behaviour in times of uncertainty, offering insights for firms and marketers to rethink their strategies.<\/p>\n

Perception turns into reality – Toilet paper case<\/b><\/span><\/p>\n

A well-known example is the 1973 toilet paper scare in the United States, where a simple concern\u2014amplified by media\u2014quickly led to panic buying. As shelves emptied, the perception of scarcity became visible, triggering even more demand. In reality, consumers respond less to facts and more to what they see, hear and believe others are doing.<\/p>\n

Fear, panic buying and herd behaviour<\/b><\/span><\/b><\/p>\n

We saw this very clearly during Covid-19. Faced with uncertainty, consumers rushed to stockpile essentials\u2014not necessarily because they needed them immediately, but because they feared not having them later. The discomfort of running out is far greater than the cost of overbuying.<\/p>\n

On the other hand, herd behaviour makes the situation even stronger. People observe others\u2014long queues, empty shelves and even social media signals\u2014and follow. The result is a powerful cycle of fear drives buying, buying creates scarcity, and scarcity drives even more fear.<\/p>\n

Anchoring and price perception in times of crisis<\/b><\/span><\/b><\/p>\n

Interestingly, price perception also changes during crises. Under normal conditions, consumers tend to evaluate prices more calmly. However, in uncertain times, they rely more on reference points. This is where anchoring comes in. A simple \u201cWas $100, now $60\u201d suddenly feels more attractive\u2014not just because of the discount, but because it gives a clear benchmark.<\/p>\n

Naturally, when incomes are uncertain, consumers look for justification before spending. Even small reductions can feel meaningful when compared to a higher reference point. For marketers, the lesson is quite clear. Pricing is not just about numbers\u2014it is about perception. And in a crisis, perception becomes even more powerful.<\/p>\n

Scarcity and perceived value in times of crisis<\/b><\/span><\/b><\/p>\n

Of course, scarcity plays a similar role. Phrases such as \u201climited stock\u201d or \u201conly a few left\u201d can create urgency almost instantly, making consumers more sensitive to signals of shortage\u2014even when such shortages have not yet materialised. However, caution is needed. While scarcity can drive short-term demand, overusing it\u2014especially in uncertain times\u2014can damage trust.<\/p>\n

On the other hand, businesses can also fall into behavioural traps. During Covid-19, many individuals and firms rushed to order large quantities of sanitizers and masks, and even invested in production, assuming demand would continue. However, as conditions stabilised, demand declined sharply, leaving excess inventory and financial losses.<\/p>\n

Mental accounting and framing in times of crisis<\/b><\/span><\/b><\/p>\n

Consumers do not treat all spending equally. They mentally divide it into categories\u2014essentials, non-essentials, savings and so on. During a crisis, these boundaries become tighter, and spending becomes more deliberate.<\/p>\n

This is where framing becomes important. The way an offer is presented can change how it is perceived. Saying \u201cSave $20\u201d often feels more tangible than \u201c20% off,\u201d even if both mean the same thing.<\/p>\n

Misuse of marketing mix elements: distorting markets<\/b><\/span><\/b><\/p>\n

Of course, in some instances, elements of the marketing mix are misused. Prices may be increased under pressure, supply may be restricted, and communication may create unnecessary urgency. Naturally, this can amplify fear and distort consumer behaviour.<\/p>\n

However, on the other hand, the same marketing mix\u2014when used responsibly\u2014can help stabilise the market and build trust.<\/p>\n

The responsible use of the marketing mix<\/b><\/span><\/b><\/p>\n

In times of uncertainty, firms need to be more disciplined in how they use the marketing mix.<\/p>\n

Product:<\/b><\/span> Firms should focus on essential and reliable offerings rather than expanding variety. Consistency and quality become more important than novelty.<\/p>\n

Price:<\/b> <\/span>Pricing must be fair and justifiable. Instead of exploiting scarcity, firms can introduce smaller and more affordable product formats, helping consumers manage limited cash flows.<\/p>\n

Place:<\/b><\/span> Ensuring availability is critical. Consistent supply and clear visibility of stock help to reduce panic and stabilise demand.<\/p>\n

Promotion:<\/b><\/span> Communication should move away from urgency-driven messaging. Reassurance, transparency and stability are far more effective in building consumer confidence.<\/p>\n

Role of consumer protection<\/b><\/span><\/b><\/p>\n

In times of crisis, consumer protection authorities and government agencies also have an important role to play. Timely intervention to monitor prices, ensure the availability of essential goods and address unfair practices helps to stabilise markets, while clear and transparent communication can reduce uncertainty and prevent panic-driven behaviour.<\/p>\n

Conclusion<\/b><\/span><\/b><\/p>\n

Crises such as the Iran\u2013Israel conflict show that markets are shaped not only by economics, but also by human behaviour driven by fear and perception. Of course, firms that adopt ethical and socially responsible marketing practices will be better positioned to navigate uncertainty and build lasting trust and long-term sustainability.<\/p>\n

*Zahran Sikkanther Lebbe is a Financial and Behavioural Market Analyst based in Alberta, Canada. A Chartered Marketer (MCIM, UK), he holds a Bachelor of Science and postgraduate qualifications in Finance from Ontario. His work focuses on applying data and behavioural insights to business strategy. He can be reached at zahranlebbe@gmail.com<\/b><\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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