Consumer Spending Behavior in Germany for Alcohol

Research Report on the Difference in the Consumer Spending Behavior in Germany for Alcohol

Introduction

The industries and sectors that largely operate seemingly present some commonalities across various dimensions and fields of consideration. This is the case with the current research topic focus, which associates with the state of alcoholic consumption in Germany. It is evident that there are, in fact, some important information that would point to possible understandings of this very case (Schneider et al., 2015). Primary among them is obviously the fact that Germans have an unusual level of alcoholic consumption margin in general, which was about 131.3 liters for every individual in the country on average in 2018 (Schneider et al., 2015). Although the consumption figures have gone down slightly, there are other metrics that show other information like the constant rise in the total consumption figures, which reached to a peak of 24.79 billion USD in the year 2019. This has correlated with a high degree of prevalence in alcoholic disorders and even fatalities, the latter of which was a total of 70,000 in 2018 due to alcoholic beverage consumption.

It is normative, therefore, that the government and other widespread stakeholders within the socioeconomic landscape are concerned about the topic at large. However, this supposition only becomes more critical and more significant of an issue because of the global disruption that has been brought about by the COVID-19 virus outbreak. This pandemic level threat has affected almost every walk of daily life, and concerning this topic, has put forth very important questions forward to German people (Ramesh, Siddaiah & Joseph, 2020). The many health associated correlations that the virus may threaten, as well as the agreed upon consensus talking points referring to the negative impacts that are commonly referred to in the case of alcohol consumption, there seems to be many barriers. However, there might be opposite results as well because this level of a virus outbreak has not been exactly experienced by anyone in living memory. All these details and information, therefore, places some notable questions in the minds of those who can decide upon measures, actions and policies. They are all effectively distilled in this following result that takes the shape of a comprehensive research question:

Is the consumer spending behavior indicates more or less differences in that figure during the pandemic situation when compared with what had come before?

Why is the Research Question Important?

The research question has great implications in the context of the current situation normatively. For one, the COVID-19 virus pandemic level outbreak indicates an issue under specialized technical terms of biology, medicine and clinical therapy, which hardly had any precedent whatsoever before this point (Konnopka & König, 2007). It has exceptionally highlighted and indicated many different positions and situations wherein all cases and conditions seem to be aligned to take the safest course of action (Schneider et al., 2015). Nation states apropos to Germany across the world has taken themselves in launching lockdown measures all across the board, which would help in the prevention of communication of the virus with progressively increasing extents of spread and infection (Ramesh, Siddaiah & Joseph, 2020). The more it communicates, the situation would have the potential to worsen accordingly.

These shall be brought forth in terms of highly restricted access to public spaces in many of which Germans had the potential to consume alcohol. Alternatively, it would also indicate a shortage of ‘non-essential’ products, which for alcohol would be self-evident except specific usages and conditions wherein their potential use would surpass all considerations at large. For the German government, this is necessary because alcohol consumption highlights a very notable and unique point of attraction among all commodities in the market (Konnopka & König, 2007). Associating with its tradition and cultural backdrop, the decisions whether to block or greenlighting their market activity under some understanding at large.

Literature Review

The general outlook over the associative questions about the results would inform and reflect in this very part of the report. Konnopka & König (2007) takes the notion of the outlook by combining two distinct disciplinary outlooks, namely those of pharmacology and economics. The costs that were tried to be determined offered a holistic glance of the total losses that occurred as a result of individual/social practice of alcohol consumption at large. These comprised 5.5% of all deaths in general, and a fiscal cost equated to them 24, 398 million euros, which is a total 1.16% of the nation’s total GDP (Konnopka & König, 2007). Among these direct costs amounted to 8441 million euros, while indirect costs were 15,957 million euros, and they are in direct demand of some helpful intervention measures through preventive efforts and truly actionable strategies. Wienecke, Barnes, Neuhauser & Kraywinkel (2015), on the other hand, refers to many factors and conditions that relate with and highlight that almost 3% of total cases of cancer in the country is brought about due to the consumption of alcohol at large.

Possible causalities of the Potential to decrease alcohol consumption

The possibilities of being affected and impacted as a low index in terms of health, shown by Wienecke et al. (2015), relate with the realistic scenario of the potential harm that alcohol consumption might normatively result in. Effertz, Verheyen & Linder (2017) signify, however, that the actuality of the scenario is greatly affected by the possibilities that are results of alcoholic consumptions could be differentiated. There are classification between hazardous and non-hazardous ways of consumption, and it is possible to assume that some in the latter would not be affected in the same way as in the former at large. These kinds of discussion are verily important because they imply that the complex scenario might evoke the prevention of getting to an actual right answer altogether. However, Kraus, Seitz, Shield, Gmel & Rehm (2019) all claim and associate with consolidating the outlooks toward the facts about the quantification of harm indicating very large and significant costs altogether when associated and related with actual scenarios and conditions at large.

Implications of letting Alcohol Consumption continue Unabated

The potential scenarios and situations related and associated with the wide range alcohol consumption is quite reflexively associated with a possibility. It should be a case if finding the notion whether alcohol consumption had increased in Germany during such restrictive conditions brought about as a result of the pandemic level outbreak. This is in relation to the survey research conducted by Wunsch (2020) who discovered that consumption among a certain share of national populations had seen an uptake or increase in the level of alcohol consumption. The data that was shared showed Germany occupying the fourth place in association with 8% of the total population. This overall consolidation of information and outlooks directly coincided that the consumption of alcohol would not go down if there were no outwards measures and actions taken by the government. Lachenmeier, Taylor & Rehm (2011) discovered and established to what extent of policy based undertakings were responsible to prevent the possible conditions that would eliminate all possible reasons of unrecorded alcohol consumption. However, the lockdowns have been marked with a scenario that is completely opposite of that, which is the main focus upon this very instance.

Reasons for Alcohol Consumption to increase during the Pandemic

Continuing with the results from Lachenmeier, Taylor & Rehm (2011), it is fairly evident that the possible delineations and determinations of the market for alcohol being somewhat challenging to address and control. There are many contradicting scenarios and conditions that plague all across the board, which regard and might influence the situation in either direction, namely the ways in which the entire research would proceed and manifest (Lachenmeier, Taylor & Rehm, 2011). All those factors are quietly and effectively relevant in portraying large scale implications. For instance, Marcus & Siedler (2015) all associate and communicate with the essential regard of possible outlooks on what bans of alcohol have produced. Generally speaking, they show no possible state of prohibition in those areas in which they are quite stringently enforced. Instead actions on indirect factors and forces tend to produce some interesting results altogether in terms of possible associations that could be derived at large. They are all exceptional in portraying and attributing possible results and factors that could be excavated and portrayed in terms of the possible scenario that has occurred during this pandemic itself.

The potential connections made with respect to the effectively drawing up assumptions in launching a policy dependent approach is mentioned by Hall (2017). This source literally makes significant distinction between all the circumstances and conditions result in the negative effects of stuff like alcohol to only intensify if direct targeting is manifested. This shall essentially recall and transfer the necessary factors, which are associated with wider complex situations brought forth by criminalization of such practices. Instead, Hall (2017) recalls enforcing indirect measures in that secondary forces and factors are supposed to propose better results altogether if the focus on health and other individual centric cases are at hand. García‐Jimeno (2016) underscores a moral undercurrent that plays out with respect to the movements advocating and supporting the probable modes of prohibiting the details of some associations and considerations. However, the entire affair becomes a challenge to actually maintain and hold carefully because of the notion of how the morality shifts within social structures and points.

Personal Assumptions

At this particular instance, the potential factors and implications that could be derived at large shall be evocative of the primary topic focus of this research. It is to properly find out whether drinking behavior towards alcohol in Germany has indicatively increased by comparing scenarios before or after the onset pandemic. In relation to the research question, the literature review has placed focus upon the possibilities of change in alcohol consumption behavior. It might have recorded significant change, or it might have recorded no consequential change after all (Lachenmeier, Taylor & Rehm, 2011). These indications all portray and consolidate that there are needs about spending behavior on alcohol, which would require action. However, given the nature of the results that have been presented and consolidated, one could helpfully consolidate that not a great amount in the ways of alcohol consumption spending would change in Germany (Marcus & Siedler, 2015). This is the hypothesis wherein the actual experiment on the basis of the survey would be conducted, and the results would be presented accordingly.

In light of this hypothesis, Treeby & Bruno (2012) arguably delineate findings whereupon the notion of motivating towards alcohol usage occurs mostly from psychological issues like tension or anxiety as well as depression. These are two of the most prevalent disorders that occur among individuals, and the state of lockdown that one’s social life would have to experience can arguably result in some pretty challenging scenarios along those very rationalizations (Treeby & Bruno, 2012). The arguable positions also speak about the presence of a social conditions, as carefully explained by Forsyth (2010), which showcases the back-and-forth associations that exist with respect to intake of alcohol at large. These are evidently some helpful notions, which actually would have a great deal of implications all across the board regarding the situation and all the conditions that might occur across instances.

Methodology: Survey

The entire case of drawing up the possibilities would be to conduct an actual ‘experiment’, which would potentially give a specific result. These would comprise of outlooks based upon the careful associations and relations, which could be derived in regards to conducting a simple survey among German adults with regards to the average spending before the outbreak as well as what it had gone after the outbreak. The sample size for the survey has been kept quite short altogether at 20, which would provide immensely helpful ways in opportunities to do exactly so. The survey happened through short interviews with members of the sample population conducted through e-communication technologies, which usually take the form of an interactive text-based chat forum on social media. All proper information and possible indications as to the active context have all been communicated to a very effective extent.

For the analysis section specifically, there has been two instruments assigned to get the results. Namely, one is correctional indexes based upon the plotting of data, and then the main analysis testing through the single factor ANOVA testing. The attributions related to overall determination of the details shall either prove the main or null hypothesis, or disprove it resulting the in the alternate hypothesis being upheld as the final result altogether. These data have been verified and tested to indicate and enjoin with the actual circumstance that would apply to Germany at large with the occurrence of the lowest possible errors imaginable. It is an altogether important fact that must be taken not of by all who are involved.

Tests Correlating Hypotheses and Results

Graphical presentation:

The above graph indicates that there is a significant decline in spending of German people after the Covid.

Correlation Index:

Correlation index table shows that correlation between drink spending before covid and after covid is 0.9540. It means there is a positive correlation between spending before and after covid (Lachenmeier, Taylor & Rehm, 2011). It has increased after covid as compared to before covid.

Hypothesis:

• Null Hypothesis: There is no significant difference in average spending on drinking before and after covid.
• Alternative difference: There is significant difference in average spending on drinking before and after covid.

Above ANOVA test shows average spending on drinking before covid was €489.75 that declined to €366.5 after covid. It means the behavior of people in Germany towards drinking has been changed after covid. It may be due to different factors such as the restrictions by the government on gathering, lockdown and declining income (Marcus & Siedler, 2015). At the same time, ANOVA test also reflects that p-value is 0.002584 that is lower than 0.05 (significance value at 95%). Based on this, it can be stated that null hypothesis can be rejected. So, there is a significant difference in average spending on drinking before and after covid in Germany.

Discussion of Results

As pointed out in the results as above, there is marked difference of a significant extent in the consumption of alcohol in Germany before and after COVID-19. However, there are possible differences in the details of analyzing the data through the analysis instruments, which have been put into use. One, the correlational index shows certain positive correlation targeting the drinking spending behavior after the outbreak than when in comparison to before what the outbreak had shown (Lachenmeier, Taylor & Rehm, 2011). However, through going into the actual details with the ANOVA test, there are indications of downwards trend in the average spending on alcohol by a German from €489.75 to €366.5. This is an altogether sharp drinking, which do not seem to share with the estimates made possible by the correlational index. This means that the overall spending might show greater inclination towards consumption spending in total (Marcus & Siedler, 2015), but the average decries that there was a definite downward trend at large.

The actual correlational data seems to point at considering the level of alcohol consumption to go down and decrease drastically; however, it would be marked with the countering forces economical in nature within the market. Germany’s population would not wholly decrease the intake of alcohol by all measures. In fact, a large section of the population would seek to keep them same, while a small portion (as already pointed out being 8%) would actually increase (Lachenmeier, Taylor & Rehm, 2011; Wunsch, 2020). This would indicate that the exact market performance by the industry, referring to those businesses, which are actually able to remain active as the main parties who shall gain. On the other hand, a significant portion would contribute greater than usual spending towards the alcohol drinking behavior (Wunsch, 2020), relegating themselves as the comparatively minor group in terms of total consensus.

However, majority of the population in Germany would actually seek to consume alcohol less than what they actually used to do. This would associate with the final figures from the ANOVA test scoring less to a significant extent whilst associating themselves to the figures associating and correlating to the actual case. The total reduction in p-value to about 0.002584 marks the point in which the extent of reduced or complete non-consumption would mark higher figures of the actual spending on average than what the information would refer to those who have spent significant more in comparison (Marcus & Siedler, 2015). These highlight that the average drinking behavior has indicated less consumer pending behavior at large, and also underscores the alternate hypothesis that great differences have been marked. They have caused a sharp decline in the total spending, and should these conditions continue all positive indicators will eventually move downwards as well.

Implications on the Life in Germany

The point that alcohol consumption prevalence in Germany is very high, and greater in comparison to many different countries would require posterity in the event of the outbreak. The nature of interventions and controls that the situation has resulted in has seen and accounted for a great deal in the ways of potential impacts and their subsequent results. The average consumer spending scale has decreased to a very far extent, which is the reason why the scenario stands like this in the ways of which exceptional results all point to a change in consumer activities as it must relate to alcohol consumption across the board (Schneider et al., 2015). The life in Germany as well as the rest of the world has been greatly affected because of the advent of conditions wherein public gatherings have been banned. Prominent places where it is actually possible to do so happen to be bars, drinking clubs, nightclubs and other similar establishments, which offer actual spaces to people. Moreover, the general conditions of the lockdown has invoked some special indications and comprehensions wherein activities outside might be stunted or limited to a significant extent. The implications on reduced and even stoppage on income also highlights notable consequences all across the board. Simply speaking, these are the factors that would prospectively affect Germany for a long time in the future in the case of which alcohol consumption would be effectively transformed by all means imaginable.

Conclusion

Overall conditions and factors that are plaguing Germany as well as the rest of the world has had a prospectively immense impact upon the alcohol consumer behavior related to purchase and consumption. These have been proved by the ways of actual primary data based research as causing an immense difference when considered with respect to average consumer spending on such products at large. They are all relevant and consequential in reference to the significant changes within the dynamics and arrangement of governance and measures that shall be taken in that specific understanding at large.

References

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Forsyth, A. J. (2010). Front, side, and back-loading: Patrons' rationales for consuming alcohol purchased off-premises before, during, or after attending nightclubs. Journal of substance use, 15(1), 31-41.

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Hall, W. (2017). Alcohol and cannabis: Comparing their adverse health effects and regulatory regimes. International Journal of Drug Policy, 42, 57-62.

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Schneider, D., Kämmerer, P. W., Schön, G., Dinu, C., Radloff, S., & Bschorer, R. (2015). Etiology and injury patterns of maxillofacial fractures from the years 2010 to 2013 in Mecklenburg-Western Pomerania, Germany: A retrospective study of 409 patients. Journal of Cranio-Maxillofacial Surgery, 43(10), 1948-1951.

Treeby, M., & Bruno, R. (2012). Shame and guilt-proneness: Divergent implications for problematic alcohol use and drinking to cope with anxiety and depression symptomatology. Personality and Individual Differences, 53(5), 613-617.

Wienecke, A., Barnes, B., Neuhauser, H., & Kraywinkel, K. (2015). Incident cancers attributable to alcohol consumption in Germany, 2010. Cancer Causes & Control, 26(6), 903-911.

Wunsch, N. (2020). Changes in alcohol consumption in selected European countries due to Covid-19 in 2020. Statista.