Through the Fog of Inflation: Examining the Mediating Role of Consumer Uncertainty on Purchase Intentions in Pakistani Smartphone Market

Abstract

In this work, the impact of heuristic availability bias on financial decisions is attempted to be As inflation casts a shadow over Pakistan's economy, the smartphone industry shines as both a source of new ideas and a place where people have to make tough choices. This study examines the impact of perceived inflation on consumer purchase intentions in the context of the smartphone industry in Pakistan. As inflation rises globally, customers face uncertainty in making purchasing decisions, especially for high-end technology products. The research incorporates the Reactance Theory to understand how consumer uncertainty mediates the relationship between perceived inflation and purchase intentions. The study employs a sample of 400 respondents using convenience sampling and utilizes scales to measure perceived inflation, consumer uncertainty, and purchase intentions. The findings indicate a significant relationship between perceived inflation and purchase intentions, with consumer uncertainty partially mediating this relationship. The study contributes valuable insights for businesses operating in economically challenged environments, emphasizing the importance of addressing consumer uncertainty through strategies like transparent pricing and brand trust-building. While the study has strengths, such as relevance to the current economic situation, it also acknowledges limitations, suggesting avenues for future research.