The Role of Perceived Scarcity and Anxiety on Panic Buying Behaviour Among Consumers in the United Arab Emirates

Abstract

Panic buying, even though seldom and inconsistently documented, is acknowledged as an unpredictable human behavior that has endured throughout history, often surfacing in response to significant emergency situations. Due to the significant psychological and behavioral impact of panic buying on society, this study aimed to examine the determinants of panic buying behavior among the consumers in the United Arab Emirates. The purpose of this study is to investigate the influence of perceived scarcity and anxiety on panic buying behavior, the mediating effect of anxiety on the relationship between perceived scarcity and panic buying behavior, and the moderating effect of government interventions on the relationship between anxiety and panic buying behavior. This study is quantitative in nature and uses a convenient sampling method to collect the online survey-based data from 157 respondents. Data were analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The results of data analysis indicated that perceived scarcity and anxiety had significant influences on panic buying behavior, while perceived scarcity also significantly influenced anxiety. On the other hand, anxiety mediates the relationship between perceived scarcity and panic buying behavior. This study could not find evidence of the moderating role of government interventions in the relationship between anxiety and panic buying behavior. The findings highlight the role of perceived scarcity and anxiety in causing panic buying behavior and thus provide implications for policymakers on the control of panic buying among consumers.