The Psychology of Panic Buying During Global Crises 

Global crises impact people in various ways, and the COVID-19 pandemic has been no exception. In the beginning, we all went through a period of uncertainty. That uncertainty affects each person differently, and each adopts various strategies to adapt to it. One such adaptive mechanism people utilise is panic buying. This is a behavioral change in which there is a rapid increase in the buying behavior of people as they panic. This article delves into the psychology behind such panic buying and how to cope with it. 

The Role of Perceived Threat and Scarcity 

During a global crisis, people perceive the threat of the situation. Based on the health belief model in psychology, if people perceive a threat, then they will take self-protection measures to minimise risks. The hoarding of different products helps them to reduce frequent visits to stores. Thereby reducing their vulnerability and creating a sense of safety. 

People also perceive scarcity of products which result in buying bulk of certain products. Individuals engage in such behavior to avoid anticipated regret. When they perceive some products as inaccessible, people have the tendency to hoard those as a precaution. 

In the face of crises, you go through a sense of uncertainty. When you find yourself as having no control of your situation, you tend to regain your autonomy by engaging in behaviors that assure the same. So, buying in bulk during crises is a coping mechanism that helps you develop a sense of security. 

Normative Influence 

As social beings, we need to be accepted by others in our society. For that, we are ready to conform to others to ensure our membership in a group. Normative influence is a concept in social psychology that explains this. It is the influence of others that leads us to believe in certain conforming ways in order to ensure our acceptance in the group. During global crises, the peer pressure from others to buy in bulk or similar actions drives us to adopt such behaviors. 

Observational Learning 

During uncertainties, we often have a tendency to observe others and infer from their actions. As we do not know the actual information, we consider the actions of the majority as believing they have a better assessment of the situation.

• Emotional contagion: Observing others in a state of panic can trigger similar emotions, making people feel they must act immediately to secure their own resources. 
• Media amplification: Even though media can keep you updated, their misuse will cause negative effects. News reports and social media posts showing long lines and empty shelves reinforce the idea that scarcity is real, pushing more people to engage in panic buying.
• Fear of missing out: Seeing others stock up creates anxiety that essential supplies will run out, leading people to buy more than they need, just in case. 

Social Trust 

Another factor that influences individuals’ behavior during crises is social trust, especially trust towards the community. If an individual has trust in the community, they will develop a collectivistic nature. This involves developing generosity, dependability, helpfulness, and attentiveness to others’ needs. Social trust also includes trust towards the government. If individuals have a high level of social trust, then they engage in cooperation rather than hoarding. In contrast, if people possess low social trust, then they show an individualistic nature by engaging in panic buying and hoarding. 

How to Control Panic Buying? 

Understanding the psychology behind panic buying can help mitigate its effects. Governments, businesses, and individuals can take steps to reduce unnecessary hoarding and maintain a stable supply of essential goods. 

• Clear and Consistent Communication: The incomplete or lack of information is one of the problems that make people panic. So, providing clear and authentic information is a way to reduce panic. Authorities must provide accurate, transparent, and timely information to the public. Such clear messaging about supply chain stability can help reduce uncertainty and alleviate fears of shortages. 
• Limiting Purchases: The unlimited access to products in the markets that made possible buying in bulk. This results in the uneven distribution of commodities and causes scarcity of essential products. So, retailers can implement purchase limits on essential items to prevent hoarding and ensure fair distribution. This approach has been effective in preventing stockpiling during past crises. 
• Encouraging Rational Thinking: Uncertainty and unpredictability make us anxious and result in panic buying. So, it is important to teach people to think rationally even in the face of crises. Public campaigns promoting rational purchasing behaviors can help counteract panic buying. Educational efforts that explain the psychology behind these behaviors can make individuals more aware of their actions. 
• Leveraging Social Influence Positively: Just as herd mentality drives panic buying, it can also be used to promote responsible shopping. Highlighting stories of people who buy only what they need can set a positive example for others to follow.
• Monitoring Social Media Misinformation: Addressing and debunking false claims about shortages can prevent unnecessary panic. Platforms can work with experts to flag misleading information and promote factual content. 

Also Read: The Psychology Behind Hoarding Behaviour

Conclusion 

Panic buying is a deeply ingrained psychological response driven by fear, uncertainty, and social influence. While it may provide individuals with a sense of control, it often exacerbates supply chain issues and heightens public anxiety. By understanding the psychological triggers behind this behavior, society can take proactive steps to foster rational decision-making and prevent unnecessary hoarding in future crises. In the face of uncertainty, knowledge and awareness remain our greatest tools for maintaining stability and resilience. 

FAQs 

1. What is panic buying? 

Panic buying refers to the mass purchasing of essential goods during crises, often driven by fear, uncertainty, and social influence. This behavior can lead to shortages, price hikes, and increased anxiety in communities. 

2. Why do people engage in panic buying? 

People panic buy due to fear of scarcity, herd mentality, and a desire for control in uncertain situations. Psychological factors such as loss aversion, the scarcity effect, and media influence also contribute to this behavior. 

3. How do fear and uncertainty impact buying behavior? 

Fear triggers the brain’s survival mode, making individuals more likely to take precautionary actions, such as stockpiling goods. Uncertainty about supply chains or crisis duration exacerbates this fear, prompting people to buy more than necessary. 

4. Does media contribute to panic buying? 

Yes, sensationalist news coverage and viral social media posts can exaggerate crises and fuel unnecessary panic. Reports of shortages and long lines create a self-fulfilling prophecy, prompting more people to rush to stores. 

5. How can individuals make more rational purchasing decisions during crises? To avoid panic buying, individuals should: 

• Assess actual needs before purchasing 
• Rely on credible sources for information on supply availability 
• Avoid impulse buying triggered by social media or news reports 
• Purchase only what is necessary to allow fair distribution for everyone