Consumer Dynamics at Continuously Operating Businesses Throughout the COVID-19 Pandemic

Keywords: Consumer behavior, Point of Interest data, Business Operation, Human Activity
Abstract Type: Paper Abstract

Abstract

As of August 2024, the World Health Organization (WHO) reported approximately 776 million cases, and 7.1 million deaths caused by coronavirus disease 2019 (COVID-19) worldwide. On May 5, 2023, WHO declared that COVID-19 was no longer a Public Health Emergency of International Concern (PHEIC); however, the long-term effects of the pandemic continue to be felt. Unlike many countries, the Chinese government maintained extensive control and prevention measures until early 2023. Utilizing category-based Point of Interest (POI) data, our study aims to delineate the impacts of COVID-19 on business operations through consumers’ dynamics in Shanghai, explore how these engagements have adapted to dynamic measures during COVID19.
We tracked over 140,000 merchants that maintained active status on Dianping from 2019 to 2023, and the merchants were classified into eight categories including Catering, Shopping, Recreation and Entertainment, Daily Life Services, Accommodations, Tourist Attractions, Education and Training, and Healthcare. In 2021, regions with increased consumer activity were observed in most categories such as catering (62%), recreation and entertainment (58%), and healthcare (61%), suggesting a rebound in consumer engagement. The year 2022 witnessed a broad surge in consumer activity across all sectors, with notable increases in catering (86%) and touring (76%). However, 2023 marked a shift with declines across most categories, except for healthcare, which continued to see increased activities (46%). We attribute our findings to several factors, like public fear of the epidemic, enduring changes in lifestyle, and economic recession. Ultimately, we propose targeted strategies for business operators to align with evolving consumer dynamics.