Quantitative Analysis of Consumer Panic Buying under Supply Disruption

Project: Research

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Supply disruption refers to the interruption of normal supply of products, due to various reasons such as natural disasters and man-made break-downs. Consumer panic buying often arises when supply disruption happens. With panic buying, consumers purchase unusually large quantities of products to protect from future supply shortage. Recent years have seen many occurrences of supply disruption and consumer panic buying worldwide. It often leads to long waiting-lines, large-scale stockout, great amount of anxiety, and thus has a significant negative impact on the market.Supply disruption and consumer panic buying pose great challenges as well as opportunities for retailers. Instead of passively accepting whatever happens, a retailer may exercise effective strategies such as inventory management, pricing adjustments, information disclosure, and quota policy to minimize the negative consequences.The goal of this project is to develop an analytical framework to study the interaction between firm’s disruption management strategies and consumers’ strategic behaviors.


Project number7008116
Grant typeSRG
Effective start/end date1/05/117/03/14