Panic buying: The effect of thinking style and situational ambiguity

This paper examines the direct effect of thinking style and situational ambiguity on the panic behavior model as well as the moderating effect of information overload. A total of 255 responses were collected from QUALTRICS, but only 139 were found to be useable for further analysis. A Smart-PLS software was used for data analysis. Based on the results, it was found that situational ambiguity and the judicative thinking style increase perceived risk. In turn, perceived risk and situational ambiguity were found to be responsible for generating panic buying. In contrast, executive and legislative thinking styles were found to have no significant effect on perceived risk. Finally, information overload was found to moderate the relationship between situational ambiguity and panic buying, but not the relationship between perceived risk and panic buying. This study proposes and tests a model of panic buying and contributes to the theoretical knowledge as well as offering clear avenues for future research and suggesting managerial best practices.