Effects of COVID-19 onWell-Being and Customer Loyalty: A Life Event Perspective

Abstract

COVID-19 has altered mental and behavioural patterns with profound and long-lasting effects on individuals and economies. Following life event literature, this paper investigates the impact of COVID-19 on individuals’ wellbeing and customer loyalty considering underlying mechanisms. Theoretical and empirical insights from a qualitative study indicate that COVID-19 is perceived as an intrusive nonnormative life event. A quantitative study reveals that stress induced by COVID-19 is negatively related to seeking for new possibilities (i.e., developing and following new interests, hobbies, or activities) and positively with resistance to change (i.e., preferring routines over doing new things) and coping behaviour. Coping, driven by stress, associates positively with seeking for new possibilities but is not related to resistance to change. While the latter drives customer loyalty, new possibilities enhance well-being. This research offers insights into COVID-19’s conceptualization as a life event and its effects on consumers. It derives implications for marketing research, management and public policy.