Abstract
The fact that those countries going through tough times like economic crises can predict the change consumers experience so that they could take the necessary precautions brings them competitive advantage and helps them provide solutions accordingly. With this in mind, the present qualitative study paints a picture of a general overview of consumer behaviors in times of crises. The studies in Turkey into consumer behavior during periods of economic crises have shown that buying behavior of consumers change, that consumers resort to cheap good and services, and that they limit their spending on food the least. The Turkish consumers have started to cut back on their spending and postpone their needs in times of economic crisis. It could be stated that Turkish consumers now avoid hasty decisions when buying.
TopIntroduction
Consumer behavior refers to a dynamic and very complicated process which is affected by external factors such as economic crisis, and which varies from person to person (Odabaşı & Barış, 2002, p. 30). Estimation of consumer behavior in times of economic crises is especially extremely difficult.
Despite the fact that economic crisis is a popular agenda, studies looking at the process in terms of consumers, families and household are not common. However, previous and prospective research is thought to contribute to the effort to figure out consumer behavior, giving both manufacturers and marketers competitive advantages, as well as giving clues to the policy-makers.
The change which consumers, backbones of economic activities, have been going through needs to be thoroughly identified. Early anticipation of change that consumers go through on the part of those countries undergoing crucial periods like economic crises in order to take the necessary measures in advance not only puts them in an advantageous position but also helps them create effective solutions. With this in mind, this study summarizes the studies examining consumer behavior during economic crises. Analyzing the examples from Turkey, the study is going to help the identification of the shortcomings and hint the necessary precautions.
Key Terms in this Chapter
Recession: The period of general economic decline, defined as a contraction in the GDP for six months or longer.
Consumer Behavior: The process by which individuals search for, select, purchase and dispose of goods and services, in satisfaction of their needs and wants.
Globalization: The worldwide movement toward economic, financial, trade and communications integration.
Inflation: Inflation is when the prices of most goods and services continue to creep upward. You have to spend more to get the same goods and services.
Stagflation: It is an economic anomaly where high unemployment.
Scarcity: Ever-present situation in all markets whereby either less goods are available than the demand for them, or only too little money is available to their potential buyers for making the purchase.
Economic Crisis: Economic crisis can be defined as the wild fluctuations, outside the acceptable limits of change, in the prices or supplies in any markets of commodity or services, or factors of production.
Global Economic Crisis: A worldwide economic difficulty experienced by markets and consumers.