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Consumer response to economic crisis and lessons for marketers: The Turkish experience

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  • Kaytaz, Mehmet
  • Gul, Misra C.
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    Abstract

    Private consumption is the largest component of gross domestic product (GDP). It has a substantial impact on the speed of recovery from an economic crisis. This paper aims to examine the behavior of consumers, firms, and government in Turkey in response to the recent global economic crisis. Turkey was one of the few countries that emerged from the economic downturn relatively quickly. The demographics of consumers, the solidity of financial sector, and the government policies led to a speedy recovery from the crisis through an increase in consumption expenditures. During the initial shock, consumers switched to cheaper goods and decreased consumption expenditures in total. The government emphasized that the impact of crisis would be limited. The opening of credit lines, the temporary reduction in value-added tax and special consumption tax on certain commodities, aggressive marketing campaigns, and a rosy future drawn by chambers of commerce and NGOs in specific promotional activities were influential in increasing consumption. This paper discusses the consumer response to and the marketing lessons derived from this experience.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 67 (2014)
    Issue (Month): 1 ()
    Pages: 2701-2706

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    Handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2701-2706

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Consumer behavior; Economic crisis; Marketing; Consumption;

    References

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    1. Pushan Dutt & V. Padmanabhan, 2011. "Crisis and Consumption Smoothing," Marketing Science, INFORMS, INFORMS, vol. 30(3), pages 491-512, 05-06.
    2. Susan Dynarski & Jonathan Gruber, 1997. "Can Families Smooth Variable Earnings?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 229-303.
    3. Barbara Deleersnyder & Marnik G. Dekimpe & Miklos Sarvary & Philip M. Parker, 2004. "Weathering Tight Economic Times: The Sales Evolution of Consumer Durables Over the Business Cycle," Quantitative Marketing and Economics, Springer, Springer, vol. 2(4), pages 347-383, December.
    4. Zurawicki, Leon & Braidot, Nestor, 2005. "Consumers during crisis: responses from the middle class in Argentina," Journal of Business Research, Elsevier, Elsevier, vol. 58(8), pages 1100-1109, August.
    5. Martin Browning & Thomas F. Crossley, 2000. "The Life Cycle Model of Consumption and Saving," Social and Economic Dimensions of an Aging Population Research Papers, McMaster University 28, McMaster University.
    6. Sung Jin Kang & Yasuyuki Sawada, 2008. "Credit Crunch And Household Welfare, The Case Of The Korean Financial Crisis," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 59(4), pages 438-458.
    7. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers, RAND - Labor and Population Program 99-04, RAND - Labor and Population Program.
    8. McKenzie, David J., 2003. "How do Households Cope with Aggregate Shocks? Evidence from the Mexican Peso Crisis," World Development, Elsevier, Elsevier, vol. 31(7), pages 1179-1199, July.
    9. Ang, Swee Hoon, 2001. "Crisis marketing: a comparison across economic scenarios," International Business Review, Elsevier, vol. 10(3), pages 263-284, June.
    10. David McKenzie & Ernesto Schargrodsky, 2005. "Buying Less, But Shopping More: Changes In Consumption Patterns During A Crisis," Business School Working Papers, Universidad Torcuato Di Tella buyinglessshop, Universidad Torcuato Di Tella.
    11. Samuel Bentolila & Andrea Ichino, 2008. "Unemployment and consumption near and far away from the Mediterranean," Journal of Population Economics, Springer, Springer, vol. 21(2), pages 255-280, April.
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