Retailer’s sourcing strategy under consumer stockpiling in anticipation of supply disruptions

Yoon, Jiho; Narasimhan, Ram; Kim, Myung Kyo

doi:10.1080/00207543.2017.1401748

Cited by 74 publications

(42 citation statements)

References 38 publications

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“…In the case of COVID-19, examples of stockpiling including acquiring many months' worth of toilet paper, canned food, and medical supplies have been observed worldwide. The same phenomenon of consumer panic buying has been observed during other disruptive events (e.g., snowstorms, tornadoes), where people have bought uncommonly large amounts of supplies in fear of potential future shortage (Yoon, Narasimhan, and Kim 2018). Thus, when facing a natural disaster or during troubling times, consumers often try to regain control of the situation by purchasing large volumes of items they expect to become scarce.…”

Section: Introductionmentioning

confidence: 75%

Nudging to Reduce the Perceived Threat of Coronavirus and Stockpiling Intention

Kim

Giroux

González-Jiménez³

et al. 2020

Journal of Advertising

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Prior research in behavioral economics has examined the effects of nudging and the diverse aspects of choice on individuals' decisions and behaviors. Based on this premise, the current research offers a novel and timely view by examining how communication messages in public service advertisements (PSAs) can alter the perception of threat under uncertain situations such as the SARS-CoV-2 coronavirus pandemic. This article investigates the role of additional relative statistical information on the perception of threat and stockpiling intention. First, we examine whether there is a reduction in the perceived threat of the coronavirus if information about the potential severity of an alternative threat (car accidents) is activated, when compared to offering only statistics on the disease caused by SARS-CoV-2, which is known as COVID-19. Furthermore, we established the mediating role of a perceived threat in consumers' decisions and behavior in times of severe crisis. This suggests that organizations and policymakers can influence individuals by increasing or decreasing their perceived level of threat depending on the desired outcomes (e.g., respecting authorities' recommendations or avoiding stockpiling). This research offers a deeper understanding of how consumers can be "nudged" toward desired behavior in the context of public health and safety.

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Section: Introductionmentioning

confidence: 75%

Nudging to Reduce the Perceived Threat of Coronavirus and Stockpiling Intention

Kim

Giroux

González-Jiménez³

et al. 2020

Journal of Advertising

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“…Very often, fear is noted to modify shopping behaviour rather than the occurrence of the outbreak itself [29]. Past statistics suggest that spending at retail outlets increased significantly in preparation for impending disasters to prepare for the unknown [30,31].…”

Section: Fear Of the Unknownmentioning

confidence: 99%

The Psychological Causes of Panic Buying Following a Health Crisis

Yuen

Wang

et al. 2020

IJERPH

421

498

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Attributed to the recent COVID-19 pandemic, panic buying is now a frequent occurrence in many countries, leading to stockouts and supply chain disruptions. Consequently, it has received much attention from academics and the retail industry. The aim of this study is to review, identify, and synthesise the psychological causes of panic buying, which is a relatively new and unexplored area in consumer behaviour research. A systematic review of the related literature is conducted. The review suggests that panic buying is influenced by (1) individuals’ perception of the threat of the health crisis and scarcity of products; (2) fear of the unknown, which is caused by negative emotions and uncertainty; (3) coping behaviour, which views panic buying as a venue to relieve anxiety and regain control over the crisis; and (4) social psychological factors, which account for the influence of the social network of an individual. This study contributes to the literature by consolidating the scarce and scattered research on the causes of panic buying, drawing greater theoretical insights into each cause and also offers some implications for health professionals, policy makers, and retailers on implementing appropriate policies and strategies to manage panic buying. Recommendations for future research are also provided.

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“…Frightened individuals were seen queuing in grocery stores trying to stockpile bread, toilet paper, flour, canned goods, and medical supplies, leaving empty shelves. This phenomenon is not new, as consumers have been observed in the past to purchase uncommonly large amounts of supplies out of fear of potential future shortages ( Yoon, Narasimhan, and Kim, 2018 ), disrupting food distribution markets.…”

Section: Introductionmentioning

confidence: 99%