When COVID-19 arrived, firms, workers and consumers had to adapt quickly in order to continue operating under the constraints that the pandemic imposed. As vaccines enable a resumption of more normal activities, at least in some countries, the extent to which these changes will stick is one of the most pressing questions businesses face.
Our research finds that the persistence of pandemic-induced behavioral changes will depend on a combination of corporate decisions and government policies, which in turn determine choices by consumers and employees.
These factors don’t always conspire to make consumer preferences stick. For example, surveys indicate that 30% to 50% of consumers intend to buy sustainable products. But such products typically account for less than 5% of overall sales, in part because companies charge higher prices for them and governments offer no purchasing incentives.