Panic buying
Panic buying (alternatively rendered as 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 is a type of herd behavior.[1] 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."[2]
Panic-buying can lead to genuine shortages regardless of whether the risk of a shortage is real or perceived as a form of self-fulfilling prophecy.[3]
Examples
Panic buying occurred before, during, or following the following incidents:
- 1943 Bengal famine[4]
- 1962 Cuban Missile Crisis – led to panic buying of canned foods in the United States[5]
- The 1979–80 oil crisis led to panic buying of oil, led by Japan.[6]
- Year 2000 problem – food[7][8]
- In January and February 2003, during the SARS outbreak, several rounds of panic buying of various products (including salt, rice, vinegar, vegetable oil, antibiotics, masks, and traditional Chinese medicine) took place in the Chinese province of Guangdong and in neighboring areas such as Hainan and Hong Kong.[9]
- 2000 and 2005 UK fuel protests[10][11]
- 2005 Jilin chemical plant explosions – water, food[12]
- 2005 Buncefield fire[13][14]
- 2008–13 United States ammunition shortage – Panic buying by gun owners who feared tougher gun control laws under President Barack Obama was one cause of ammunition shortages.[15][16]
- In September 2013 during the Venezuelan economic crisis, the Venezuelan government temporarily took over the Aragua-based Paper Manufacturing Company toilet 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.[17]
- 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!"[18] The announcement of lowered prices sparked looting in multiple cities across Venezuela.[19] By the end of the Dakazo, many Venezuelan stores were left empty of their goods.[20] A year later in November 2014, some stores still remained empty following the Dakazo.[21]
- 2019–20 coronavirus pandemic – masks, food, toilet paper, hand sanitizer and rubbing alcohol.[22] On February 5, the first accounts of toilet paper panic on Twitter, said that there was "frenzied hoarding" based on "troubling online rumours" in Wan Chai, Hong Kong.[23][24] By March 3, there was toilet paper rationing in Australia.[25][26] By March 6, CNN reported that the phenomenon of panic buying toilet paper was global.[27]
References
- ^ 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. 8 March 2020.
- ^ Archibald Percival Wavell (1973). Moon, Penderel (ed.). Wavell: The Viceroy's Journal. Oxford University Press. p. 34.
- ^ Alice L. George (2003). Awaiting Armageddon: How Americans Faced the Cuban Missile Crisis. The University of North Carolina Press. p. 78. ISBN 0807828289.
- ^ Mamdouch G. Salameh, "Oil Crises, Historical Perspective" in Concise Encyclopedia of the History of Energy (ed. Cutler J. Cleveland: Elsevier, 2009), p. 196.
- ^ Lohr, Steve (January 1, 2000). "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. 19 April 1999.
- ^ Huiling Ding, Rhetoric of a Global Epidemic: Transcultural Communication about SARS (Southern Illinois University Press, 2014), pp. 70, 72, 83, 103, 111.
- ^ Collins, Nick (25 August 2009). "EU ban on traditional lightbulbs prompts panic buying". The Telegraph.
- ^ "UK fuel blockades tumble". BBC News. 14 September 2000. Retrieved 12 January 2008.
- ^ "Toxic leak threat to Chinese city". BBC News. 23 November 2005.
- ^ "Massive blaze rages at fuel depot". BBC News. 12 December 2005. Retrieved 19 October 2009.
- ^ "Fire Rages After Blasts At Oil Depot". Sky News. 11 December 2005. Retrieved 19 October 2009.
- ^ Danielle Kurtzleben, Here's why the ammunition shortage went on for years, Vox (July 1, 2014).
- ^ Stephanie Clifford, Shop Owners Report Rise in Firearm Sales as Buyers Fear Possible New Laws, New York Times (December 22, 2012).
- ^ Brochetto, Marilia; Botelho, Greg (12 September 2013). "Facing shortages, Venezuela takes over toilet paper factory". CNN. Retrieved 13 March 2020.
- ^ Lezama Aranguren, Erick (9 November 2014). "La resaca del "dakazo", un año después". El Tiempo. Archived from the original on 12 November 2014. Retrieved 12 November 2014.
- ^ "Watch: Looting in Venezuela after government launches attack on 'bourgeois parasites'". EuroNews. 12 November 2013. Retrieved 12 November 2014.
- ^ Lezama Aranguren, Erick (9 November 2014). "La resaca del "dakazo", un año después". El Tiempo. Archived from the original on 12 November 2014. Retrieved 12 November 2014.
- ^ Lezama Aranguren, Erick (9 November 2014). "La resaca del "dakazo", un año después". El Tiempo. Archived from the original on 12 November 2014. Retrieved 12 November 2014.
- ^ Sirletti, Sonia; Remondini, Chiara; Lepido, Daniele (2020-02-24). "Virus Outbreak Drives Italians to Panic-Buying of Masks and Food". Bloomberg. Retrieved 2020-02-29.
{{cite web}}: CS1 maint: url-status (link) - ^ "Troubling online rumours caused a sudden surge in demand for toilet paper". Twitter. Retrieved 2020-03-13.
- ^ "The economics of the toilet paper panic—and why more stockpiling is inevitable - Macleans.ca". Retrieved 2020-03-13.
- ^ "Virus panic buying prompts toilet paper rationing in Australia". CTVNews. 2020-03-04. Retrieved 2020-03-13.
- ^ "Coles and Woolworths further limit toilet paper purchases as supply sells out in an hour". smh.com.au. Sydney Morning Herald. 2020-03-08. Retrieved 2020-03-11.
- ^ "'It's crazy': Panic buying forces stores to limit purchases of toilet paper and masks - CNN". Retrieved 2020-03-13.