Twenty-third International Conference on Knowledge, Culture, and Change in Organizations

Abstract

Although manifestations of the COVID-19 pandemic are evident in almost every aspect of daily life, few market and 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 pandemic-related changes in consumers’ health and safety needs and the seismic shift to outdoor and at-home fitness. We estimate preferences for fitness apps configured with two levels of four attributes and assess preference heterogeneity for sub-groups of users defined by gender and income. Our findings demonstrate that price and community engagement are the most important attributes used to evaluate fitness apps and that an app configured with premium price, low community engagement, unlimited classes and standard workout/nutrition plans is preferred by consumers. In addition, the analysis of reversals and demographic differences reveals preference heterogeneity that can be exploited by targeting niche segments of female and low-income consumers with active community engagement and unlimited classes. Theoretical and managerial implications of responding to pandemic-related changes in market and competitive landscapes with digital innovation are considered.