The Impact of the Covid-19 Threat on the Preference for High Versus Low Quality/Price Options

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. Full paper available at https://doi.org/10.1080/19368623.2021.1884163