Panic buying occurs when consumers buy goods in bulk due to an anticipation of a disaster or perceived shortages and price increases. Natural disasters, fuel and technology crises, and rumors can all trigger panic buying. Planning ahead and maintaining a list of must-have items can help avoid shortages.
Panic buying is the common way to describe the activity of buying goods in bulk following an anticipation of a disaster or experience. Actual or perceived shortages and price increases are just two of the factors that can lead to behavior. Many times, panic buying is an attempt by the buyer at self-preservation in the face of an uncertain or unstable future. Consumers will engage in the activity so they have the means to protect themselves, their families and their property.
Natural disasters are often at the center of panic episodes. Hurricanes and blizzards, for example, can motivate people in an affected area to purchase as much water, food and emergency supplies as possible to survive the disaster. As a result, store shelves will be cleared and shoppers will hoard goods in their homes as they wait for the natural disaster and its aftermath to pass.
Other events that can inspire panic buying are those that impact fuel and technology. Oil crises and protests have historically caused consumers to buy all the fuel they could as a sort of “panic gas buying”. Similarly, many consumers feared a vast technological outage as they anticipated the year 2000 and purchased large quantities of emergency supplies in case basic utilities were rendered non-functional. It goes without saying that the shortage of food has also led to confusion in the purchase of the remaining raw materials.
While actual shortages and price hikes can drive consumers to overbuy, simple rumors and fear can lead to the same type of behavior. Rumors and fear can encourage a public to panic, and this can result in a shortage of goods and supplies, even if there wasn’t an actual shortage to begin with. In this way, shortages can arise simply because consumers believe they are true and buy as many similar products as possible. The practice of buying goods in panic can then end in real shortages, causing even more panic and a new, unacceptable demand for scarce products.
To avoid the very real threat of shortages from panic buying, last-minute shoppers are advised to plan ahead. Buying what you need to build up a year-round supply of needed items is a great alternative to running out of supplies during a disaster. Consumers can keep their needs in check by maintaining a list of must-have items and making sure their households always contain an adequate amount.
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