Abstract
The devastating COVID-19 pandemic has disrupted our lives in many ways. Retailers, in particular, are suffering from these catastrophes, and consumers are forced to change their shopping behavior to conform to the next normal. To understand the impact of COVID-19 on consumer behavior, we investigated the impact of the product characteristics on changes in sales performance caused by COVID-19. For this, we collected data on online sales performance of a beauty retailer in Korea, and analyzed them by using an event study approach. Overall, sales of beauty products was found to decline due to COVID-19. However, the level of negative impact was different depending on product characteristics. Specifically, sales of dietary health foods and skin improvement products had less negative impact than general cosmetics. We also found that the negative impact the pandemic had on credence product sales was not as much as its impact on experience product sales. Moreover, the decline in sales of skin care products was less than makeup products. Lastly, the decline in low-priced products was less than that of high-priced products, but the difference was not statistically significant. This research sheds a light on how to overcome the COVID-19 pandemic for online retailers.
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