Consumption Adjustments of Turkish Consumers During The Global Financial Crisis

Abstract

The impacts of the global financial crisis, which started in 2007 and affected both developed and developing countries, were felt in not only banking and finance sectors but also people’s way of living and consumption. The purpose of this paper is to reveal the impacts of the global financial crisis on Turkish consumers and compare these effects with respect to demographic factors. According to the findings, 35 consumption adjustment statements are grouped under seven dimensions: Cautious spending, simplicity in purchase and distribution, product adjustments, quest for low price, financial anxiety, promotion adjustments, and awareness. The ANOVA and t-test results demonstrate that 436 respondents made adjustments in these dimensions with significant differences regarding their gender, age, marital status, occupation, and income

Keywords

• Financial crisis, consumption adjustments, Turkish consumers

References

1. Allen, R. E., & Snyder, D. (2009) “New Thinking on the Financial Crisis”. Critical Perspectives on International Business, 5(1-2): 36-55.
2. Altunışık, R., Torlak, Ö., & Özdemir, Ş. (2003) Ekonomik Kriz ve Değişen Alışveriş Alışkanlıkları Üzerine Bir Araştırma [A Research on Economic Crisis and Changing Consumption Habits], Paper presented at the 8th National
3. Congress of Marketing, Kayseri, Turkey.
4. Ang, S. H., Siew, M. L., & Philip, K. (2000) “The Asian Apocalypse: Crisis Marketing for Consumers and Businesses”, Long Range Planning, 33: 97-119.
5. Ang, S. H. (2001a) “Crisis Marketing: A Comparison across Economic Scenarios”, International Business Review, 10: 263-284.
6. Ang, S. H. (2001b) “Personality Influences on Consumption: Insights from the Asian Economic Crisis”, Journal of International Consumer Marketing, 13 (1): 5-20.
7. Aydin, K. (2009) “Küresel Kriz ve Türkiye [The Global Crisis and Turkey]”, http://perakende.org/haber. php?hid=1231342495, (31.05.2009)
8. Cohen, J. (1969) Statistical Power Analysis for the Behavioral Sciences, New York, Academic Press.

9. Duygan, B. (2005) Aggregate Shocks, Idiosyncratic Risk, and Durable Goods Purchases: Evidence from Turkey’s 1994 Financial Crisis, European University Institute Finance and Consumption Program Working Paper.
10. Fernandez, J. (2009) “Crunchonomics: Understanding Consumers in the Recession”, Marketing Week, April 23: 32.
11. Frankenberg, E., Thomas, D., & Beegle, K. (1999) The Real Costs of Indonesia’s Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys, Labor and Population Program Working Paper, RAND DRU 2064. Santa Monica, RAND.
12. French, S., Leyshon, A., & Thrift, N. (2009) “A Very Geographical Crisis: The Making and Breaking of the 2007-2008 Financial Crisis” Cambridge Journal of Regions, Economy and Society, 2: 287-302.
13. Friedman, J. & Levinsohn, J. (2002) “The Distributional Impacts of Indonesia’s Financial Crisis on Household Welfare: A ‘Rapid Respond’ Methodology”, The World Bank Economic Review, 16 (3): 397-423.
14. Krejcie, R. V. & Morgan, D. W. (1970) “Determining Sample Size for Research Activities”, Educational and Psychological Measurement, 30: 607-610.
15. Malhotra, N. K. (2007) Marketing Research: An Applied Orientation, 5th ed., Upper Saddle River, NJ, Pearson/ Prentice Hall.
16. McKenzie, D. J. (2006) “The Consumer Response to the Mexican Peso Crisis”, Economic Development and Cultural Change, 55 (1): 139-172.
17. Özkan, G. (2008) “Küresel Ekonomik Kriz: Makroekonomik Bir Yaklaşım [The Global Financial Crisis: A Macroeconomical Approach]” Banking Regulation and Supervision Agency Special Publication, http://www.york.ac.uk/depts/econ/documents/misc/ financial_crisis_macroeconomic_explanation.pdf, (19.04.2009).
18. Reinhart, C. M. & Rogoff, K. S. (2008) “Is the 2007 US Sub-Prime Financial Crisis So Different? An International Historical Comparison”, (NBER Working Paper, No. 13761), http://www.nber.org/papers/w13761, (20.10.2009).
19. Roscoe, J. T. (1975) Fundamental Research Statistics for the Behavioral Sciences (2nd ed.), New York: Holt, Rinehart and Winston.
20. Selçuk, B. & Yılmaz, N. (2010) “Küresel Finansal Sistemde Değişim ve Türkiye’ye Etkileri [The Alteration in the Global Financial System and Its Effects on Turkey]”. http://bsy.marmara.edu.tr/Konferanslar/2008/33.pdf, (19.04.2009).
21. Shama, A. (1978) “Management and Consumers in an Era of Stagflation”, Journal of Marketing, 42: 43-52.
22. Shama, A. (1981) “Coping with Stagflation: Voluntary Simplicity”, Journal of Marketing, 45: 120-134.
23. Sheth, J. N. (1970) “Multivariate Analysis in Marketing”, Journal of Advertising Research, 10 (1): 29-39.
24. Susam, N. & Bakkal, U. (2008) “Kriz Süreci Makro Değişkenleri ve 2009 Bütçe Büyüklüklerini Nasıl Etkileyecek? [How will the Crisis Period Affect Macro Variables and 2009 Budget Sizes?]”, Maliye Dergisi, 155: 72-88.
25. Uzunoğlu, S. (2009) “Global Kriz: Ne Zaman ve Nasıl Sona Erecek? [The Global Crisis: When and How Will it End?]”, TGSK Akademi, 4 (2): 80-88.
26. Whitney, M. (2009) “Credit Cards are the Next Credit Crunch”, The Wall Street Journal, March 11. http://on- line.wsj.com/article/SB123664459331878113.html, (20.10.2009).
27. Yang, B., Prescott, N. & Bae, E. (2001) “The Impact of Economic Crisis on Health-Care Consumption in Korea”, Health Policy and Planning, 16 (4): 372-385.
28. Yıldız, Z. & Durgun, A. (2010) “2008 Küresel Ekonomik Krizi ve Turizm Sektörü Üzerine Etkileri [The 2008 Global Economic Crisis and Its Effects on the Tourism Sector]”, Vizyoner Dergisi, 2 (1): 1-15.