Panic buying(alternatively hyphenated aspanic-buying;also known aspanic purchasing) occurs whenconsumersbuy unusually large amounts of a product in anticipation of, or after, adisasteror perceived disaster, or in anticipation of a large price increase, orshortage.
Panic buying during various health crises is influenced by "(1) individuals' perception of the threat of a health crisis and scarcity of products; (2) fear of the unknown, which is caused by emotional pressure and uncertainty; (3) coping behaviour, which views panic buying as a venue to relieve anxiety and regain control over the crisis; and (4) socialpsychologicalfactors, which account for the influence of the social network of an individual ".[1]
Panic buying is a type ofherd behavior.[2]It is of interest inconsumer behaviortheory, the broad field of economic study dealing with explanations for "collective actionsuch asfadsand fashions,stock marketmovements, runs onnondurable goods,buying sprees,hoarding,andbanking panics".[3]
Panic buying can lead to genuine shortages regardless of whether the risk of a shortage is real or perceived without merit; the latter scenario is an example ofself-fulfilling prophecy.[4]
Examples
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Panic buying occurred before, during, or following:
- TheFirst(1914–1918)[5][6][7]andSecond World Wars(1939–1945).[8][9][10]
- The1918–1919 global influenza pandemic( "Spanish flu" ) led to the panic buying ofquinineand otherremedies for influenzaand its symptoms from pharmacists and doctors' surgeries.[11]Sales ofVicks VapoRubincreased from $900,000 to $2.9 million in a year.[12]
- In theFirst Austrian Republicin 1922, hyperinflation and the rapid depreciation of theAustrian kroneled to panic buying and food hoarding, which continued until arescue backed by the League of Nationsprevented an economic collapse.[13]
- Bengal famine of 1943.[14]
- 1962Cuban Missile Crisisled to panic buying of canned foods in the United States.[15]
- The1973 toilet paper panicin the United States.[16]
- The1979 oil crisisled to panic buying of oil, led by Japan.[17]
- The 1985 arrival ofNew Cokeled many consumers to panic buy theoriginal Coke.[18][19]
- Year 2000 problem– food.[20][21]
- 2001 – panic buying of metals, gold and oil on internationalcommodity marketsfollowing theSeptember 11 attacks.[22]
- Between January and February 2003, during theSARS outbreak,several rounds of panic buying of various products (including salt, rice, vinegar,vegetable oil,antibiotics,face masks, andtraditional Chinese medicine) took place in the Chinese province ofGuangdongand in neighboring areas such asHainanandHong Kong.[23]
- 2000 and 2005UK fuel protests.[24][25]
- 2005 Jilin chemical plant explosions– water, food.[26]
- 2008–2016 United States ammunition shortage– panic buying by gun owners who feared toughergun controllaws under PresidentBarack Obamawas one cause of ammunition shortages.[27][28]
- In September 2013 during theVenezuelan economic crisis,the Venezuelan government temporarily took over the Aragua-based Paper Manufacturing Companytoilet paperplant 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.[29]
- Dakazo– Amid decreased support before the2013 Venezuelan municipal elections,Venezuelan presidentNicolás Maduroannounced the military occupation of stores on 8 November 2013, proclaiming "Leave nothing on the shelves!"[30]The announcement of lowered prices sparked looting in multiple cities across Venezuela.[31]By the end of the Dakazo, many Venezuelan stores were left empty of their goods.[30]A year later in November 2014, some stores still remained empty following the Dakazo.[30]
- In September 2021,panic buying of petrolled to empty fuel filling stations across theUnited Kingdom.A lack of tanker drivers was blamed, withBrexitbeing the primary cause according to mostRoad Haulage Associationrespondents.[32]
- In November 2021, panic buying of groceries took place in theBritish Columbia InteriorandFraser Valleyowing to the impacts of the2021 Pacific Northwest floods.[33]
- On March 3, 2022, panic buying ofIKEAkit furnitureand home appliances occurred in Russia due to the company'sdecision to close their 17 Russian storesin light of the2022 Russian invasion of Ukraine.Extensive queues were reported in IKEA'sMoscowandSaint Petersburgstores, and customers attempted to enter from the exit doors when entrance doors were closed.[34]
- In May 2023, the Malaysian states ofPenangandKedahexperienced panic buying of bottled water due to an interruption in tap water supply lasting less than 24 hours.[35]
- In August 2023, after thedischarge of radioactive water of the Fukushima Daiichi Nuclear Power Plant,people inChinabegan panic buying salt andradiation detectorsbecause of the public anxiety towards the radioactive water released.[36][37]Consumers in South Korea also began hoarding salt and seafood.[38][39]
- In August 2024, Japanese consumers began panic buying rice due to supply shortages,megaquakewarnings, andtyphoons.[40]
COVID-19 pandemic
editPanic buying became a major international phenomenon between February and March 2020 during the early onset of theCOVID-19 pandemic,and continued in smaller, more localized waves throughout during sporadic lockdowns across the world. Stores around the world were depleted of items such as face masks, food, bottled water, milk, toilet paper,[41]hand sanitizer,rubbing alcohol,antibacterial wipes andpainkillers.[42][43][44][45][46][47]As a result, many retailers rationed the sale of these items.[48]
Online retailers such aseBayandAmazonbegan to pull certain items listed for sale by third parties such as toilet paper,[49]face masks, pasta, canned vegetables, hand sanitizer and antibacterial wipes overprice gougingconcerns.[50][51]As a result, Amazon restricted the sale of these items and others (such as thermometers and ventilators) to healthcare professionals and government agencies.[52]Additionally, panic renting ofself-storageunits took place during the onset of the pandemic.[53]
The massive buyouts of toilet paper caused bewilderment and confusion from the public. Images of empty shelves of toilet paper were shared on social media in many countries around the world, e.g. Australia, United States, the United Kingdom, Canada, Singapore, Hong Kong and Japan. In Australia, two women were charged over a physical altercation over toilet paper at a supermarket.[54]The severity of the panic buying drew criticism; particularly fromPrime Minister of AustraliaScott Morrison,calling for Australians to "stop it".[55]
Research on this specific social phenomenon of toilet paper hoarding suggested that social media had played a crucial role in stimulating mass-anxiety and panic.[56]Social media research found that many people posting about toilet paper panic buying were negative, either expressing anger or frustration over the frantic situation. This high amount of negative viral posts could act as an emotional trigger of anxiety and panic, spontaneously spreading fear and fueling psychological reactions in midst of the crisis. It may have triggered asnowball effectin the public, encouraged by the images and videos of empty shelves and people fighting over toilet rolls.
Gallery
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AUnited States propaganda poster in World War IIshowing the effects of panic buying goods -
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Venezuelans grabbing for items during theDakazo,an event of thecrisis in Venezuela -
Shoppers inLondonpanic buying canned food and toilet paper during theCOVID-19 pandemic -
Panic buying at theGiantsupermarket inFranklin Farm, Virginia,during the COVID-19 pandemic in March 2020
See also
editReferences
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- ^Yuen, Kum Fai; Wang, Xueqin; Ma, Fei; Li, Kevin X. (2020-05-18)."The Psychological Causes of Panic Buying Following a Health Crisis".International Journal of Environmental Research and Public Health.17(10): 3513.doi:10.3390/ijerph17103513.PMC7277661.PMID32443427.
- ^Bruce Jones & David Steven,The New Politics of Strategic Resources: Energy and Food Security Challenges in the 21st Century(eds. David Steven, Emily O'Brien & Bruce D. Jone: Brookings Institution Press, 2015), p. 12.
- ^William M. Strahle & E. H. Bonfield.Understanding Consumer Panic: a Sociological Perspective,Advances in Consumer Research,Volume 16, 1989, eds. Thomas K. Srull, Provo, UT: Association for Consumer Research, pp. 567–573.
- ^"Toxic leak threat to Chinese city".The Repository.2020-03-08.
- ^Faris, Robert (1948).Social Disorganization.The Ronald Press Company. p. 524.
- ^Hardach, Gerd (1981).The First World War, 1914–1918.University of California Press. p. 198.ISBN978-0-520-04397-8.
- ^Watters, Mary; Library, Illinois State Historical (1952).Illinois in the Second World War: The production front.Illinois State Historical Library. p. 58.ISBN9780912154190.
- ^Spaull, Andrew David (1982).Australian Education in the Second World War.University of Queensland Press. p. 100.ISBN978-0-7022-1644-2.
- ^Jackson, Ashley (2006).The British Empire and the Second World War.A&C Black. p. 505.ISBN978-1-85285-417-1.
- ^Morgan, Philip (2008).The Fall of Mussolini: Italy, the Italians, and the Second World War.OUP Oxford. p. 66.ISBN978-0-19-157875-5.
- ^Honigsbaum, Mark (2013)."Regulating the 1918–19 Pandemic: Flu, Stoicism and the Northcliffe Press".Medical History.57(2): 165–185.doi:10.1017/mdh.2012.101.ISSN0025-7273.PMC3867839.PMID24070344.
- ^Burden, Lizzy (2020-03-20)."Is panic buying irrational? Here's why it can seem to make economic sense".The Telegraph.Retrieved2020-04-07.
- ^Colin Storer,A Short History of the Weimar Republic(I.B. Tauris, 2013), p. 102-03.
- ^Archibald Percival Wavell(1973).Moon, Penderel(ed.).Wavell: The Viceroy's Journal.Oxford University Press. p.34.ISBN978-0-19-211723-6.
- ^Alice L. George (2003).Awaiting Armageddon: How Americans Faced the Cuban Missile Crisis.The University of North Carolina Press. p.78.ISBN0807828289.
- ^Buder, Emily (2020-03-19)."The Great Toilet-Paper Shortage Scare – The Atlantic".theatlantic.Retrieved2020-04-29.
- ^Mamdouch G. Salameh, "Oil Crises, Historical Perspective" inConcise Encyclopedia of the History of Energy(ed. Cutler J. Cleveland: Elsevier, 2009), p. 196.
- ^Taylor, Peter (2013).The thirty-six stratagems: A modern-day interpretation of a strategy classic.Infinite Ideas. p. 50.ISBN978-1-908474-97-1.
- ^Roberts, Kevin (2005).Lovemarks: the future beyond brands.powerHouse Books. p. 193.ISBN978-1-57687-534-6.
- ^Lohr, Steve (2000-01-01)."Technology and 2000 – Momentous Relief; Computers Prevail in First Hours of '00".New York Times.
- ^"The Millenium Bug threatens food supply systems – developing countries are also vulnerable, FAO warns".Food and Agriculture Organization.1999-04-19.
- ^"Oil and gold prices spike".money.cnn.2001-09-11.
- ^Ding, Huiling (2014).Rhetoric of a Global Epidemic: Transcultural Communication about SARS.Southern Illinois University Press. pp. 70, 72, 83, 103, 111.
- ^Collins, Nick (2009-08-25)."EU ban on traditional lightbulbs prompts panic buying".The Telegraph.Archived fromthe originalon 2009-08-28.
- ^"UK fuel blockades tumble".BBC News. 2000-09-14.Retrieved2008-01-12.
- ^"Toxic leak threat to Chinese city".BBC News. 2005-11-23.
- ^Kurtzleben, Danielle (2014-07-01)."Here's why the ammunition shortage went on for years".vox.
- ^Clifford, Stephanie (2012-12-22)."Shop Owners Report Rise in Firearm Sales as Buyers Fear Possible New Laws".New York Times.
- ^Brochetto, Marilia; Botelho, Greg (2013-09-12)."Facing shortages, Venezuela takes over toilet paper factory".CNN.Retrieved2020-03-13.
- ^abcLezama Aranguren, Erick (2014-11-09)."La resaca del" dakazo ", un año después".El Tiempo.Archived fromthe originalon 2014-11-12.Retrieved2014-11-12.
- ^"Watch: Looting in Venezuela after government launches attack on 'bourgeois parasites'".EuroNews. 2013-11-12.Retrieved2014-11-12.
- ^A weekend of panic buying has left many gas stations across the UK dry,CNBC
- ^Delvin, Megan (2021-11-17)."Grocery stores running out of food in BC cities cut off by flooding (PHOTOS)".dailyhive.Retrieved2021-11-17.
- ^"Shoppers panic buy as IKEA shuts stores & factories in Russia".Yahoo Finance.2022-03-07.Retrieved2022-03-07.
- ^"Panic-buying up north as taps run dry".The Star.2023-05-16.Retrieved2023-05-21.
- ^"China shoppers panic-buying salt after Fukushima Daiichi treated water release | NHK WORLD-JAPAN News".NHK WORLD.Retrieved2023-08-31.
- ^"In China, Fukushima discharge met with bans, panic buying and wariness".The Business Standard.2023-08-25.Retrieved2023-08-31.
- ^Yeung, Jessie; Seo, Yoonjung; Hancocks, Paula (2023-07-10)."South Korean shoppers hoard salt and seafood ahead of Japan's release of treated radioactive water | CNN Business".CNN.Retrieved2024-08-27.
- ^Kim, Daewoung; Yim, Hyunsu (2023-06-11)."South Korea sea salt demand grows ahead of Japan's Fukushima contaminated water release".Reuters.
- ^"Japanese scramble to buy beloved staple as rice shortages bite".The Straits Times.2024-08-27.ISSN0585-3923.Retrieved2024-08-27.
- ^What everyone's getting wrong about the toilet paper shortageMedium
- ^"Supermarkets report panic buying over coronavirus fears".Inside Retail.2020-03-03.Retrieved2020-04-03.
- ^Sirletti, Sonia; Remondini, Chiara; Lepido, Daniele (2020-02-24)."Virus Outbreak Drives Italians to Panic-Buying of Masks and Food".Bloomberg.Retrieved2020-02-29.
- ^"The economics of the toilet paper panic—and why more stockpiling is inevitable".Macleans.Retrieved2020-03-13.
- ^"Virus panic buying prompts toilet paper rationing in Australia".CTVNews.2020-03-04.Retrieved2020-03-13.
- ^"Coles and Woolworths further limit toilet paper purchases as supply sells out in an hour".smh.au.Sydney Morning Herald.2020-03-08.Retrieved2020-03-11.
- ^"'It's crazy': Panic buying forces stores to limit purchases of toilet paper and masks ".CNN. 2020-03-06.Retrieved2020-03-13.
- ^Gadher, Dipesh (2020-03-29)."Every ration helps in coronavirus crisis: Tesco puts one-item limit on essentials".The Sunday Times.Retrieved2020-04-07.
- ^Halliday, Josh (2020-03-16)."eBay urged to clamp down on coronavirus profiteering".The Guardian.Retrieved2020-04-07.
- ^"Coronavirus price gouging: Amazon and eBay failing to tackle rip-off sellers, says Which?".Sky News.2020-03-25.Retrieved2020-04-07.
- ^Nicas, Jack (2020-03-14)."He Has 17,700 Bottles of Hand Sanitizer and Nowhere to Sell Them".The New York Times.Retrieved2020-04-07.
- ^Palmer, Annie (2020-04-02)."Amazon blocks sale of N95 masks to the public, begins offering supplies to hospitals".CNBC.Retrieved2020-04-07.
- ^"Transacting in Turbulent Times: The Impact of Coronavirus Across All Segments of the Self-Storage Industry".Inside Self-Storage.2020-04-02.
- ^"Women charged after toilet paper row at Sydney Woolworths goes viral".abc.net.au.2020-03-08.Retrieved2021-03-30.
- ^"'It's un-Australian, and it must stop': Scott Morrison tells Australians to cease panic buying ".SBS News.Retrieved2020-08-03.
- ^Leung, Janni; Chung, Jack Yiu Chak; Tisdale, Calvert; Chiu, Vivian; Lim, Carmen C. W.; Chan, Gary (January 2021)."Anxiety and Panic Buying Behaviour during COVID-19 Pandemic—A Qualitative Analysis of Toilet Paper Hoarding Contents on Twitter".International Journal of Environmental Research and Public Health.18(3): 1127.doi:10.3390/ijerph18031127.PMC7908195.PMID33514049.