Determinants of panic buying during COVID-19: causes and consequences

Purpose Despite the abundant literature on panic buying during COVID-19 pandemic, the several causes and consequences of panic buying have been enormously ignored. The purpose of this study is to emphasize the consumer's behavior during the COVID-19 pandemic and illustrate the comprehensive theoretical model of consumers' panic buying to investigate its causes and consequences in a developing country empirically to uncover this gap. Design/methodology/approach The authors collected data from 419 households of all socioeconomic classes of Bangladesh. A hierarchical regression model analyzed the data. Findings This study finds that internal and external factors such as rumors, government strategies, fear and anxiety and health security significantly affect consumers' panic buying behaviors. This finding supports some theories of human behavior. This study also finds that panic buying has internal and external consequences such as price hike, shortage of supply of products, dissatisfaction of consumers and increase in utility (benefit) of the products but not on consumer's budget. This finding supports as well as contradicts some established theories of human and consumer behavior. Originality/value This study proves that panic buying cannot help the consumers and they are the ultimate sufferers of this. The findings of this study will help the government, media, suppliers and consumers to interact properly to maintain panic buying during a pandemic crisis. Giving a holistic explanation of the causes and consequences of panic buying by introducing some novel variables is a momentous strength of this study.