Changing Customer Behaviour At Ash & John, customers who spend more than $150 in a single transaction may elect to purchase on credit, payable in 60 days. Despite the option, most sales at Ash & John were cash transactions prior to March 2020. However, since the outbreak of COVID-19, more and more customers have opted for credit purchases. This change in customers’ purchasing behavior had added to the financial difficulties of the business, and Mr. Stosur and Nick worried that Ash & John would report a loss for the ninth consecutive month in January 2021.

Customers at Ash & John had developed a preference for credit purchases, discuss the reason(s) why "this change in customer behavior had added to the financial difficulties of the business".

A complete response should: (a) clearly identify the existing financial difficulties, and (b) for each issue that you identify as financial difficulty, explain the reason(s) why the particular change in customer behavior “had added to the financial difficulties” (i.e. making it worse), you should cite case information where appropriate.