Understanding Consumers' Perceived Risk during the COVID-19 Threat: A Scenario-Based Experiment

Abstract

The COVID-19 outbreak had a substantial effect on the world economy. The hospitality industry is experiencing severe financial strain. There is a need to understand consumer perceptions better to overcome this crisis. This study aims to gain insights into the impact of consumption orientation, trip mode, and hotels' environmental sustainability decisions on consumers' perceived risk factors. A 2 (consumption orientation: utilitarian/hedonic) x 2 (trip mode: solo/with family) x 2 (environmental sustainability decision: maintained/abandoned) scenario-based experiment was conducted to explore the main and interaction effects on consumers' perceived overall, social, time, financial, physical, performance, psychological risk. The study's findings reveal that during the COVID-19 situation, consumers perceive more risk when consumption orientation is utilitarian, the trip mode is with family, and hotels maintain sustainability practices.