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.
Highlights
As the novel coronavirus spread globally from its outbreak in China, rates of infection and death caused by the virus began to spike significantly
As there are no broadly researched modern pandemics outside of SARS, which was fairly localised in its presentation, research on COVID-19 will be formative for understanding and perhaps anticipating the future of shock and crisis research
Through critical analysis of several crises, we find that the results do suggest that the consumer behaviours experienced during the COVID-19 pandemic were highly comparable to those experienced during previous crises and shock events
Summary
As the novel coronavirus spread globally from its outbreak in China, rates of infection and death caused by the virus began to spike significantly. As regular consumer movement, capabilities and purchases were restricted, and as the fear of infection rose globally, consumer behaviour began to change in a capacity more than the typical geographic presentation of purchases, to affect the timing, breadth and volume of purchases. Survival psychology acknowledges that individuals may undergo behavioural changes due to the occurrence of particular events, including natural disasters, healthcare crises and terrorist attacks (Forbes 2017). These behavioural changes might include negative occurrences of herd mentality, panic buying, changes to discretionary purchasing habits and investment decision making. This, and further future research, will become an important foundation for organisational and governmental preparedness for future shock events and pandemics
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