The relationship between activities performed in the physical and digital spheres: Lessons learned from the COVID-19 pandemic

The COVID-19 pandemic lockdowns have created a unique forced experiment that enabled people worldwide to experience the maximum potential of digital life and virtual interaction. The unique situation of the first lockdown enables us to examine whether digital activities could be a substitutional lifestyle to activities performed in the physical space, and which physical activities are more likely to be substituted by a digital alternative. A survey conducted among 671 residents in the four central cities in Israel is used to examine the effect of the pandemic. We apply a classification tree model to analyze the influence of individuals' behavior before the pandemic on two periods: (1) period with restrictions due to the pandemic; and (2) a period of a post-COVID-19. Results indicate that although the pandemic accelerated digital trends, the physical sphere will remain dominant in the long term. At the same time, activities related to retail have a higher possibility for substitution compared to entertainment and leisure activities. In addition, the usage of digital services before the pandemic and remote work accelerated the digital-physical substitution effect. Results also show a variation between cities, indicating that spatial or cultural aspects might influence the substitution between the spheres.