COVID-19 and Digital Innovation
Abstract
Manifestations of the COVID-19 pandemic are evident in almost every aspect of daily life, but few market/competitive landscapes have been affected as profoundly as health and fitness. In this study a new mobile fitness app is crafted empirically with conjoint analysis to address the threat to big-box gyms posed by the pandemic-related shift away from congregate to at-home and outdoor fitness. We estimate preferences for a fitness app configured with two levels of four attributes and assess preference heterogeneity for gender and income sub-groups. Findings demonstrate that price and community engagement are the most important attributes used to evaluate fitness apps and that an app configured with high price, low community engagement, unlimited classes, and standard workout/nutrition plans is preferred by consumers. Analysis of demographic differences and reversals reveals preference heterogeneity that can be exploited by targeting niche segments of big-box gyms members with active community engagement and unlimited classes. Theoretical, managerial, and methodological implications of responding to pandemic-related changes in market/competitive landscapes with digital innovation are considered.