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Cited by 436COVID-19 Pandemic ImpactsConsumer Behavior and Market DynamicsConsumer Market Behavior and Pricing

Consumer Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the Role of the Media in Influencing Behaviour

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Loxton, Mary, Truskett, Robert, Scarf, Brigitte, Sindone, Laura, Baldry, George, Zhao, Yinong·2020·Journal of Risk and Financial Management
DOI 10.3390/jrfm13080166
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Abstract

The novel coronavirus (COVID-19) pandemic spread globally from its outbreak in China in early 2020, negatively affecting economies and industries on a global scale. In line with historic crises and shock events including the 2002-04 SARS outbreak, the 2011 Christchurch earthquake and 2017 Hurricane Irma, COVID-19 has significantly impacted global economic conditions, causing significant economic downturns, company and industry failures, and increased unemployment. To understand how conditions created by the pandemic to date compare to the aforementioned shock events, we conducted a thorough literature review focusing on the presentation of panic buying and herd mentality behaviours, changes to discretionary consumer spending as defined by Maslow’s Hierarchy of Needs, and the impact of global media on these behaviours. The methodology utilised to analyse panic buying, herd mentality and altered patterns of consumer discretionary spending (according to Maslow’s theory) involved an analysis of consumer spending data, largely focused on Australian and American markets. Here, we analysed the volume and timing of consumer spending patterns; the volumes of spending on specific, highly-demanded consumer goods during the investigative period; and the distribution of spending on luxury and non-durable goods to identify the occurrence of these consumer behaviours. Moreover, to identify the presence of the media in influencing consumer behaviour we focused on web traffic to media sites, alongside keyword and phrase data mining. We conclude that, to date, consumer behaviour during the COVID-19 crisis appears to align with behaviours exhibited during historic shock events. We hope to contribute to the body of research on the early months of this pandemic before longer-term studies are available.

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Research works printed but not linked: 13

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Authors
Loxton, M., Truskett, R., Scarf, B., Sindone, L., Baldry, G., & Zhao, Y.
Affiliations
  • The University of Sydney (AU)
  • Fudan University (CN)
Corresponding author
Zhao, Yinong
ORCID
Baldry, George
Venue
Journal of Risk and Financial Management
Publisher
MDPI AG
Published
2020-07-30
Volume
13
Issue
8
Pages
166
ISSN
  • 1911-8066 (ISSN-L)
  • 1911-8074
DOI
10.3390/jrfm13080166
OpenAlex
W3045639497
Cited by
415
References
42
Citations by year
2026: 21 · 2025: 38 · 2024: 51 · 2023: 81 · 2022: 110 · 2021: 99 · 2020: 15
FWCI
64.79
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of risk and financial management (publishedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
  • Econstor (Econstor) (submittedVersion, cc-by)
  • The Sydney eScholarship Repository (The University of Sydney) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › COVID-19 Pandemic Impacts
  • Social Sciences › Sociology and Political Science › Consumer Behavior and Market Dynamics
  • Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
Keywords
COVID-19 pandemic, consumer behavior, panic buying, herding behavior, discretionary spending, Maslow's hierarchy of needs, media influence on consumers, consumer spending patterns, luxury goods, non-durable goods, shock events, SARS, Christchurch earthquakes, Hurricane Irma

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