Effects of National Culture on the Extent of Panic Buying during the COVID-19 Outbreak

The COVID-19 outbreak and its declaration as a pandemic by the WHO on March 11, 2020 resulted in consumer panic buying across the globe. Extant research into panic buying is scant, and its cultural context practically unexplored. This article uses mobility change data provided by Google and draws on reactance theory to establish how perceived scarcity limits freedoms, and ultimately drives individuals to panic buying. It hypothesizes and analyzes the influence of cultural factors; the findings show that individualism and uncertainty avoidance both exert a positive effect on the extent of panic buying, whereas power distance has a negative effect.