Panic buying occurs when consumers buy unusually large amounts of a product in anticipation of, or after, a disaster or perceived disaster, or in anticipation of a large price increase or shortage. Panic buying during health crises is influenced by " individuals' perception of the threat of a health crisis and scarcity of products; fear of the unknown, which is caused by emotional pressure and uncertainty; coping behaviour, which views panic buying as a venue to relieve anxiety and regain control over the crisis; and social psychological factors, which account for the influence of the social network of an individual." Panic buying is a type of herd behavior. It is of interest in consumer behavior theory, the broad field of economic study dealing with explanations for "collective action such as fads and fashions, stock market movements, runs on nondurable goods, buying sprees, hoarding, and banking panics." Panic buying can lead to genuine shortages regardless of whether the risk of a shortage is real or perceived; the latter scenario is an example of self-fulfilling prophecy.
Examples
Panic buying occurred before, during, or following:
In January and February 2003, during the SARS outbreak, several rounds of panic buying of various products took place in the Chinese province of Guangdong and in neighboring areas such as Hainan and Hong Kong.
In September 2013 during the Venezuelan economic crisis, the Venezuelan government temporarily took over the Aragua-based Paper Manufacturing Companytoilet paper plant to manage the "production, marketing and distribution" of toilet paper following months of depleted stocks of basic goods—including toilet paper—and foodstuffs, such as rice and cooking oil. Blame for the shortages was placed on "ill-conceived government policies such as price controls on basic goods and tight restrictions on foreign currency" and hoarding.
Dakazo – Amid decreased support before the 2013 Venezuelan municipal elections, Venezuelan president Nicolás Maduro announced the military occupation of stores on 8 November 2013, proclaiming "Leave nothing on the shelves!" The announcement of lowered prices sparked looting in multiple cities across Venezuela. By the end of the Dakazo, many Venezuelan stores were left empty of their goods. A year later in November 2014, some stores still remained empty following the Dakazo.
The COVID-19 pandemic – panic buying became a major international phenomenon in February and March 2020, when stores around the world were depleted of items such as face masks, food, bottled water, milk, toilet paper, hand sanitizer, rubbing alcohol, antibacterial wipes and painkillers. As a result, many retailers rationed the sale of these items. Online retailers eBay and Amazon have pulled certain items listed for sale by third parties such as toilet paper, face masks, pasta, canned vegetables, hand sanitizer and antibacterial wipes over price gouging concerns. As a result, Amazon restricted the sale of these items and others to healthcare professionals and government agencies.
