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

  • Kaytaz, Mehmet
  • Gul, Misra C.
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    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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    File URL: http://www.sciencedirect.com/science/article/pii/S0148296313001136
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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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    1. Sun Jin Kang & Yasuyuki Sawada, 2003. "Credit Crunches and Household Welfare: The Case of the Korean Financial Crisis," CIRJE F-Series CIRJE-F-234, CIRJE, Faculty of Economics, University of Tokyo.
    2. McKenzie, David J., 2003. "How do Households Cope with Aggregate Shocks? Evidence from the Mexican Peso Crisis," World Development, Elsevier, vol. 31(7), pages 1179-1199, July.
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    8. Zurawicki, Leon & Braidot, Nestor, 2005. "Consumers during crisis: responses from the middle class in Argentina," Journal of Business Research, Elsevier, vol. 58(8), pages 1100-1109, August.
    9. Martin Browning & Thomas F. Crossley, 2001. "The lifecycle model of consumption and saving," IFS Working Papers W01/15, Institute for Fiscal Studies.
    10. Samuel Bentolila & Andrea Ichino, 2008. "Unemployment and consumption near and far away from the Mediterranean," Journal of Population Economics, Springer, vol. 21(2), pages 255-280, April.
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