Consumer Panic Buying Behavior and Supply Distribution Strategy in a Multiregional Network after a Sudden Disaster

Abstract

Panic buying is now a frequent occurrence in many countries, leading to stockouts and supply chain disruptions. This paper highlights consumers’ panic buying behavior in different types of regions and the impact of different replenishment strategies after an emergency supply disruption. Panic buying behavior occurs when consumers try to mitigate the negative impact of a supply disruption. Therefore, this paper develops a consumer-based agency model to study the correlation between public opinion and panic buying and simulates the influence of consumers’ panic buying behavior under different situations in a complex network. The results show that the spread of panic feelings can lead to panic buying behavior among consumers, which then shocks the retailer market. The distribution of supplies according to the type of city and the number of people can have an impact on consumer panic buying behavior, and when the government adopts a restrictive strategy, implementing a quota policy or uniform rationing is very effective in reducing the number of consumers participating in panic buying.