Abstract
In the early of 2020, Malaysia had been affected by the outbreak of Coronavirus Disease 2019 (COVID-19). With regards to what people are buying, Malaysians reported that they spend more on items with longer shelf life than they would usually do. The aim of this study to analyse the consumers’ willingness to pay (WTP) for goods and services before and during pandemic COVID-19. A total of 481 respondents involved in this study through convenience sampling method via self-administered questionnaires were distributed. Collected data were then analysed using Statistical Package for Social Sciences (SPSS) version 22 and EViews version 10. The mean WTP that consumers willing to pay for face mask was MYR1.92 (21.9%) during COVID-19 as compared before COVID-19 at MYR1.50. Meanwhile, Logit estimation result shows all of the predictor variables (ScoreDif, Age, Income1, Income2, Location and Family size) of WTP for higher prices were significant. In conclusion, the consumers were WTP more for basic goods and services during COVID-19 outbreak as compared before COVID-19 outbreak. Through this study, Malaysian consumers could get to know more about how much they are WTP for basic goods and services before and during COVID-19 outbreak.
Highlights
COVID-19 is a disease caused by a virus strain that began spreading among people since December 2019 in China
The consumers were willingness to pay (WTP) more for basic goods and services during COVID-19 outbreak as compared before COVID-19 outbreak
Logit Estimation Results The goodness-of-fit test used Hosmer-Lemeshow show that the yields a X2(10) of 10.574 and was insignificant (p> 0.05), suggesting that the model was fit with the data
Summary
COVID-19 is a disease caused by a virus strain that began spreading among people since December 2019 in China. In the early of 2020, Malaysia had been affected by the outbreak of Coronavirus Disease 2019 (COVID-19), alongside the rest of the world, classifying it as a worldwide pandemic This COVID-19 pandemic gives negative impact to economics, health and industries. The continued rising spread of COVID-19 in the world threatens demand and supply for basic goods and services such as food, face mask, hand sanitizer, other health products (Wang et al, 2020). This contributes to the increase in prices and Malaysia's GDP fell by 17.1% in the second quarter of 2020 (DOSM, 2020). This study to explore the socio-economic background (gender, ethnic, education level, occupation, income) among consumers, to evaluate the mean score of WTP for basic goods and services before and during COVID-19, to investigate the mean of WTP premium for face mask during COVID-19 and to analysis the impact of socio-economic factors and behaviour response to higher level on WTP for basic goods and services before and during COVID-19
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