An Endowment, Commodity, and Prospect Theory Perspective on Consumer Hoarding Behavior

King, Diana; Devasagayam, Raj

doi:10.22158/jbtp.v5n2p77

Cited by 13 publications

(7 citation statements)

References 10 publications

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“…McKinnon et al (1985) distinguish inventory accumulation activities based on two sets of criteria: (1) whether the accumulation is for profit‐seeking or loss‐avoidance, and (2) whether the accumulation can be viewed as conventional or unconventional. According to King and Devasagayam (2017), consumer stockpiling for natural disasters can be explained using commodity theory (Brock 1968) and prospect theory (Kahneman and Tversky 1979). Commodity theory deals with the psychological effects of scarcity (Lynn 1991), in that any commodity will increase in value due to scarcity (Brock 1968).…”

Section: Theoretical Foundationsmentioning

confidence: 99%

Pre‐Hurricane Consumer Stockpiling and Post‐Hurricane Product Availability: Empirical Evidence from Natural Experiments

Pan¹,

Dresner

Mantin

et al. 2020

Production and Operations Management

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T he provision of essential supplies is a key service provided by retailers when demand spikes due to consumer stockpiling during environmental emergencies. Moreover, it is important for retailers to quickly recover from these events by replenishing the stock of essential supplies to meet the continuing needs of local residents. The main purpose of this research is to study consumer precautionary stockpiling behavior prior to the onset of hurricane landfalls and determine the impact of this behavior on in-store product availability for various formats of retail store outlets. Specifically, we focus on the bottled water product category, an essential emergency category in hurricane preparedness. This study combines an event analysis methodology with econometric models using archival retail scanner data from 60 US retail chains located in 963 counties and real-time data from four recent US continental hurricanes. We find that supply-side characteristics (retail network and product variety), demand-side characteristics (hurricane experience and household income), and disaster characteristics (hazard proximity and hazard intensity) significantly affect consumer stockpiling propensity as the hurricanes approach. The increased consumer stockpiling has immediate and longer-term impacts on retail operations, namely, in-store product availability. Among various retail formats, drug stores are associated with the highest consumer stockpiling propensity before hurricanes, while dollar stores and discount stores are associated with the lowest in-store product availability following hurricanes. Our study points to the need for retailers and policymakers to carefully monitor factors affecting consumer stockpiling behavior that will allow for better allocation of critical supplies during the hurricane season.

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Section: Theoretical Foundationsmentioning

confidence: 99%

Pre‐Hurricane Consumer Stockpiling and Post‐Hurricane Product Availability: Empirical Evidence from Natural Experiments

Pan¹,

Dresner

Mantin

et al. 2020

Production and Operations Management

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show abstract

“…Authors broadly regard media and interpersonal communications as being among the major drivers of consumers’ uncustomary purchase of enormous amounts of goods/supplies before or during a crisis or panic buying that is driven by an expectancy of a supply shortage or a price surge (Fang and Shou, 2015; King and Devasagayam, 2017; Kulemeka, 2010; Stiff et al , 1975; Zheng et al , 2020). Hall et al (2021) conceptualise panic buying as consumption displacement resulting from a shift in consumption when consumers experience a change in the accessibility of the goods, services and amenities to which they are accustomed as the result of an external event.…”

Section: Literature Reviewmentioning

confidence: 99%

Conceptualising the panic buying phenomenon during COVID-19 as an affective assemblage

Zaky

Mohamed

Saxena

2022

EJM

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Purpose This study aims to conceptualise the panic buying behaviour of consumers in the UK during the novel COVID-19 crisis, using the assemblage approach as it is non-deterministic and relational and affords new ways of understanding the phenomenon. Design/methodology/approach The study undertakes a digital ethnography approach and content analysis of Twitter data. A total of 6,803 valid tweets were collected over the period when panic buying was at its peak at the beginning of the first lockdown in March 2020. Findings The panic buying phase was a radical departure from the existing linguistic, discursive, symbolic and semiotic structures that define routine consumer behaviour. The authors suggest that the panic buying behaviour is best understood as a constant state of becoming, whereby stockpiling, food waste and a surge in cooking at home emerged as significant contributors to positive consumer sentiments. Research limitations/implications The authors offer unique insights into the phenomenon of panic buying by considering DeLanda’s assemblage theory. This work will inform future research associated with new social meanings of products, particularly those that may have been (re)shaped during the COVID-19 crisis. Practical implications The study offers insights for practitioners and retailers to lessen the intensity of consumers’ panic buying behaviour in anticipation of a crisis and for successful crisis management. Originality/value Panic buying took on a somewhat carnivalesque hue as consumers transitioned to what we consider to be atypical modes of purchasing that remain under-theorised in marketing. Using the conceptual lenses of assemblage, the authors map bifurcations that the panic buyers’ assemblages articulated via material and immaterial bodies.

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“…Academically, this behavior is known as the effect of perceived scarcity. Perceived scarcity is the term that is used to refer individual's perception and conception of product shortage or limited availability that resulted in anticipated regret behavior by acquiring large quantities of items (Aggarwal, Jun, & Huh, 2011;Chua et al, 2021;King & Devasagayam, 2017). Perceived scarcity is more common than actual scarcity.…”

Section: Perceived Scarcitymentioning

confidence: 99%

Exploring the Determinant Factors of Impulsive Buying Behavior during the COVID-19 Pandemic among Indonesian Consumers

Rahmawati

Primanto

2021

Minds

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The COVID-19 pandemic has ravaged the global economy, igniting much fear and panic that disrupted buying patterns and behavior. This study aims to investigate the phenomenon of impulsive buying behavior during the COVID-19 crises by exploring the influences of panic buying, perceived scarcity, and the mediation role of fear appeals. This study uses path analysis which is processed by using the Preacher-Hayes technique. A total of 243 respondents participated in the study. The result of this study revealed that perceived scarcity and panic buying were successfully proved to be significant predictors of impulsive buying behavior. However, the direct effect of fear appeals and the mediation role of fear appeals and panic buying on the relationship between perceived scarcity and impulsive buying behavior were failed to prove in this study.

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An Endowment, Commodity, and Prospect Theory Perspective on Consumer Hoarding Behavior

Abstract: This study investigated

Cited by 13 publications

References 10 publications

Pre‐Hurricane Consumer Stockpiling and Post‐Hurricane Product Availability: Empirical Evidence from Natural Experiments

Pre‐Hurricane Consumer Stockpiling and Post‐Hurricane Product Availability: Empirical Evidence from Natural Experiments

Conceptualising the panic buying phenomenon during COVID-19 as an affective assemblage

Exploring the Determinant Factors of Impulsive Buying Behavior during the COVID-19 Pandemic among Indonesian Consumers

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