Exploring panic buying as a situational response – the role of fear, media exposure and context-specific paranoia

Abstract

Purpose

Drawing on prospect theory, terror management theory, and social influence theories, this study explores the phenomenon of panic buying amid the COVID-19 pandemic, namely its situational antecedents such as fear of COVID-19, increased media exposure to COVID-19-related news, and context-specific paranoia. It offers insight into the situational nature of panic buying, contrary to the purely dispositional/trait conceptualization of irrational spending, usually depicted through the phenomenon of compulsive buying.

Design/methodology/approach

This is a cross-sectional study. An online questionnaire was used for data collection from 621 Croatian citizens. The questionnaire features a series of validated instruments designed to measure compulsive buying, fear of COVID-19, and context-specific paranoia. The media exposure scale (MES) was also specifically developed and empirically tested for the purpose of this research.

Findings

The results suggest that individuals who exhibited greater fear of COVID-19 while also experiencing increased exposure to COVID-19-related news were more likely to engage in panic buying. This connection has remained significant even after controlling for compulsive buying tendencies, suggesting that panic buying witnessed during the coronavirus pandemic was a situational phenomenon, not strictly dispositional. This establishes the fear of COVID-19 and increased exposure to pandemic-related news content as situational antecedents to panic buying. After controlling for compulsive buying, this paper does not demonstrate a significant connection between context-specific paranoia and panic buying. Furthermore, context-specific paranoia does not mediate the relationship between media exposure to pandemic-related content and panic buying, whereas the fear of COVID-19 significantly mediates the same relationship.

Practical implications

This study recognizes people's panic behavior amid the COVID-19 pandemic as a byproduct of a situational, reactive process – not a psychopathological one. Furthermore, it recognizes media sensationalism and the audience's impaired capacity for rational spending as major risk factors preceding the event of panic buying.

Originality/value

This study proposes a novel conceptual framework of irrational spending amid crises such as COVID-19 pandemic, introducing the differentiation between the situational nature of the phenomenon (panic buying), thereby separating it from its previous dispositional operationalizations (hoarding, compulsive buying).

Citation

Nakić, M., Koričan Lajtman, M. and Oblaković, G. (2024), "Exploring panic buying as a situational response – the role of fear, media exposure and context-specific paranoia", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-09-2022-1407