What is the worst doomsday scenario that you could possibly encounter. For many Australians it seems that the fear of being stuck on the toilet and finding themselves down to the last square of toilet paper has taken over their consumer behaviours and the hottest new item on the market, rolls of toilet paper, has gone viral.
Although this fear has quickly and abruptly taken over the minds of Australian’s and in some cases, their bodies, what caused people to suddenly bulk buy toilet paper and is this fear warranted?
Clinical psychologist Steven Taylor and author of “The Psychology of Pandemics” spoke towards the widespread panic, “On the one hand, [the widespread panic is] understandable, but on the other hand it’s excessive,” and also told CNN that “We can prepare without panicking.” Taylor also said “When people are told something dangerous is coming, but all you need to do is wash your hands, the action doesn’t seem proportionate to the threat,” he said. “Special danger needs special precautions.” With this in mind the behaviour of many Australian’s and their approach towards the new and practically unknown coronavirus is justifiable up to a certain extent.
One of the most crucial reasons for such panic within the community is the bounded rationality for consumers which has accumulated as a result of unclear directions, instructions, and lack of information from officials along with the over exaggerated media portrayals regarding the virus. Bounded rationality can come about as a result of media portrayal where they present the shortage of toilet paper however do not warn consumers that the shortage of toilet paper is not an immediate threat within the market as 60% of Australia’s toilet paper is produced locally. This lack of information leads panic and bulk buying from citizens. The absence of clear directions from officials is another reason for the such panic as Baruch Fischhoff, a psychologist and professor in the Department of Engineering and Public Policy and the Institute for Politics and Strategy at Carnegie Mellon University told CNN “Unless people have seen… official promises that everyone will be taken care of, they are left to guess at the probability of needed the extra toilet paper, sooner rather than later.”
Furthermore, when people panic buy, it simply causes more panic buying. People see images of panic buyers online and assume there must be a valid reason for this and also end up bulk buying supplies. Steven Taylor said, “People, being social creatures, we look to each other for cues for what is safe and what is dangerous,” he said. “And when you see someone in the store, panic buying, that can cause a fear contagion effect.” Such behaviour is described as ‘Herd Behaviour’ where people act collectively as part of a group and are influenced by each other as a result of uncertainty and ignorance within the community so people follow the crowd, thinking that the rest of the crowd is more informed. This is an example of anchoring, a common error in the decision making of consumers where they rely too heavily on the first piece of information that is offered or exposed to them which in this case would be that other individuals are panic buying. This leads to sporadic decision making (bulk buying toilet paper) which may not be in their best interest financially however they believe that they have no other options due to lack of information
Lastly, there is some practicality in bulk buying and stocking up, says Frank Farley, a professor at Temple University. With many warnings and advice from the CDC (centers for disease control and prevention) as well as other international health agencies for certain populations to stay at home and avoid contact with rother people and crowds, the overpreparation is only natural. With many people being urged to stay in the safety of their own homes, stocking up on essentials such as food and water is only warranted with toilet paper also seemingly making the list of essentials for many. “You’ll be spending money on toilet paper at one point or another—the only extra costs are the hassle of doing it sooner rather than later, contending with long lines and having difficulty finding it.” Said Fischhoff.
Bibliography
https://edition.cnn.com/2020/03/09/health/toilet-paper-shortages-novel-coronavirus-trnd/index.html
Year 11 MHS Economics 2020 