What influences panic buying behaviour? A model based on dual-system theory and stimulus-organism-response framework

Panic buying has been observed across many regions during the COVID-19 pandemic which greatly disrupts supply chains and market economies. The determinants of panic buying, upon being identified, can be applied to control the escalation of panic buying behaviour that is highly detrimental to societies. This research aims to synthesise the dual-system theory and stimulus-organism-response framework to investigate into the causes of panic buying. Structural equation modelling is employed to analyse data collected from 508 residents in Singapore. The results reveal that panic buying can be explained as a response to both environmental stimuli and reflective thinking. Specifically, perceived susceptibility and perceived severity of a pandemic event as well as social influence and social norm can stimulate consumers' perceptions of scarcity and affective response, which in turn leads to the impulsive decision of panic buying; meanwhile, a rational reflection which is operationalised by perceived lack of control also influences panic buying. Furthermore, the perceived lack of control positively moderates the effect of affective response on panic buying. Theoretically, this research provides a unique explanation of panic buying. The findings also provide managerial implications on dealing with panic buying in response to disasters such as a health crisis.