The role and potential of trusted change agents and freight demand management in mitigating “Panic Buying” shortages

Abstract

The goal of this research is to help develop effective freight demand management (FDM) programs to reduce the amounts of “panic buying” purchases. Such programs are indispensable because, as explained in the paper, in “panic buying” environments, supply chains are frequently unable to rapidly increase the amounts of critical supplies delivered to points of sales. Thus, reducing the demand is the only option to mitigate shortages. To reach this goal, this research assesses the potential of a novel FDM initiative that relies on Trusted Change Agents (TCAs) to convince individuals to limit their purchases of critical supplies, and outlines a comprehensive FDM program with initiatives spanning the entire disaster management cycle. The research: analyzes survey data to gain insight into the reasons people participate in “panic buying;” establishes that the term “panic buying” is a misnomer—as the instances of true “panic” are extremely rare—and suggests the term “Disaster Related Buying Behaviors” (DRBBs)” to better describe the phenomena; creates a data-driven taxonomy of objectives and motivating reasons for DRBBs; estimates a Structural Equation Model (SEM) to assess the strengths of the interconnections between reasons, themes, and objectives pursued by individuals who enact DRBBs; assesses the impacts of TCA appeals; identifies the initiatives needed, together with the timing and sequencing, to be conducted at the various stages of the disaster management cycle; identifies the stakeholders that ought to be involved in the executions of these initiatives; and puts these elements together to outline a comprehensive FDM program.

Keywords

• Panic Buying
• Disaster Related Buying Behaviors
• DRBB
• Freight demand management