The impact of the COVID-19 threat on the preference for high versus low quality/price options. Issue 6 (18th August 2021)

• Record Type: Journal Article
• Authors: Kim, Jungkeun; Lee, Jaeseok; Jhang, Jihoon; Park, Jooyoung; Lee, Jacob C.
• Is Part Of: Journal of hospitality marketing & management. Volume 30:Issue 6(2021)
• Page Start: 699
• Page End: 716
• Publication Date: 2021-08-18
• Subjects: COVID-19 -- pandemic -- price -- quality -- preference -- safety-seeking; Hospitality industry -- Marketing -- Periodicals; Leisure industry -- Marketing -- Periodicals; 338.47910688
• DOI: 10.1080/19368623.2021.1884163
• Languages: English
• ISSNs: 1936-8623

Abstract

ABSTRACT: The present research investigates how the threat of COVID-19 affects consumers' choices among hospitality/travel options of varying levels of quality and price. Drawing on compensatory consumption theory, we predicted that the virus's prominence would increase consumers' preference for more expensive options in a choice set. Five empirical studies and one secondary data analysis investigated consumers' choice among various business and budget hotels. The results consistently showed that consumers increase their safety-seeking under a high threat of COVID-19 and prefer a more expensive hotel option. To enhance the study's internal validity, we provide converging evidence by either measuring (studies 1, 2, 3, and 5) or manipulating the threat of COVID-19 (study 4). We also provide the secondary data analysis with words searched in Google Trends (study 6). Finally, we discuss the theoretical and managerial implications of our findings.