Evaluation of Factors Promoting Panic Buying in Retail Sector of Pakistan during COVID – 19 Pandemic

Abstract

By the start of global crisis Covid-19 pandemic, it has changed the world’s economy and the healthcare by creating uncertainty, fear and panic among people around the globe. Due to the implementation of lockdowns, Panic buying has emerged as a new phenomenon during coronavirus outbreak. Hence, there is a need to examine the panic buying behavior of consumers during Covid-19 in order to gain an understanding about this new phenomenon so that retail marketers and policy makers can get benefit. In this research, Stimuli Organism Response (SOR) model is being used in order to investigate that how Panic Buying is being done as a Response when e-WOM, Fear Appeal and Perceived Scarcity acts as Stimulus, and Social Media Information (SMI) acting as an Organism. This study is conducted in the twin cities of Pakistan i.e. Rawalpindi and Islamabad. Findings show that e-WOM, Fear Appeal have positive and significant relation with Panic Buying. However, Perceived Scarcity has no significant relation with Panic Buying. There is a positive influence of Social Media Information between e-WOM, Fear Appeal, Perceived Scarcity and Panic Buying. All the managerial and theoretical implications are discussed in detail.