"If you don't buy it, it's gone!": The effect of perceived scarcity on panic buying

To identify the mechanisms by which perceived scarcity affects consumers' panic-buying behaviours and to explore the underlying reasons for panic-buying. Building on signalling theory and scarcity theory, we constructed a model of panic-buying behaviour. In total, 361 sources of valid data were collected via online questionnaires, and partial least squares structural equation modelling was employed for the empirical analysis. In the context of COVID-19, perceived scarcity significantly and positively influenced the macro signals, for example, by impacting perceived value and perceived competitiveness. Furthermore, perceived scarcity significantly affected consumers' micro signals, such as their perceived anxiety and perceived uncertainty. In combination, perceived value, perceived competitiveness, perceived anxiety and perceived uncertainty significantly and positively influenced consumers' panic-buying behaviours. Trust in the government also played a significant role by regulating consumers' micro signals and macro signals. The originality of this paper lies in its in-depth exploration of the multiple impacts of scarcity on consumer perceptions and it reveals the reasons for panic-buying behaviours. In doing so, it provides practical guidelines and understanding for consumers, businesses and the government.