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

Kaytaz, Mehmet; Gul, Misra Cagla

doi:10.1016/j.jbusres.2013.03.019

Cited by 94 publications

(98 citation statements)

References 11 publications

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“…Some researchers attribute this growth to the economic crisis in the European context (Lamey et al, 2007). Other researchers showed that during this economic shock, consumers switched to store brands and decreased their consumption expenditures (Kaytaz and Gul, 2014). However, although prior studies emphasized the importance of store formats for consumers in different contexts (Martínez-Ruiz et al, 2010;Seock, 2009;Tripathi and Dave, 2013;Zielke, 2010), it is not clear how consumers make their choice of brands in different store formats during crisis periods.…”

Section: Introductionmentioning

confidence: 99%

Consumer choice of store brands across store formats: A panel data analysis under crisis periods

Kaswengi

Diallo

2015

Journal of Retailing and Consumer Services

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Section: Introductionmentioning

confidence: 99%

Consumer choice of store brands across store formats: A panel data analysis under crisis periods

Kaswengi

Diallo

2015

Journal of Retailing and Consumer Services

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“…In particular, we answer a call for scholars to analyze how firms absorb and react to economic downturns (Kaytaz & Gul, 2014;Latham & Braun, 2008) and to examine organizational factors (Srinivasan, Lilien, & Sridhar, 2011) that influence investment preferences in these environments (Zona, 2012). To our knowledge, this is the first study to propose an integrative model with several variables to investigate recessions and to empirically test it with survey data.…”

Section: Introductionmentioning

confidence: 94%

“…Consumers become more price conscious (Hampson & McGoldrick, 2013) and "downtrade" to cheaper items and stores (Ang, Leong, & Kotler, 2000;Kaytaz & Gul, 2014) or substitutes (Dutt & Padmanabhan, 2011;Srinivasan et al, 2011). Discretionary such as leisure and luxury items suffer more (Mansoor & Jalal, 2011;Zurawicki & Braidot, 2005), while necessities such as housing and health care are less affected (Dutt & Padmanabhan, 2011;Kamakura & Du, 2012).…”

Section: Recessions and Their Consequences To Firmsmentioning

confidence: 99%

“…Demand contraction creates pressure for firms to cut prices in order to keep sales level (Kaytaz & Gul, 2014;Kamakura & Du, 2012), which tends to increase rivalry among industry players (Porter, 1979). In addition, new demand patterns change relationships, power balance, and trust between firms and their competitors, customers, and suppliers (Apaydın, 2011;Lamey et al, 2012), also leading to higher rivalry.…”

Section: Recessions and Their Consequences To Firmsmentioning

confidence: 99%

See 1 more Smart Citation

Strategies for Superior Performance in Recessions: Pro or Counter-Cyclical?

Conti¹,

Goldszmidt

Vasconcelos

2015

Rev. adm. empres.

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Estratégias para desempenho superior em recessões: pro ou contra-cíclicas? Estrategias para el desempeño superior en las recesiones: ¿pro o contra cíclicas?ABSTRACT Recessions are recurring events in which most firms suffer severe impacts while others are less affected or may even prosper. Strategic management has made little progress in understanding such performance differences. In a scenario of decreased demand, intensified competition, and higher uncertainty, most firms try to survive by pro-cyclically cutting costs and investments. But firms could take advantage of undervalued resources in the market to counter-cyclically invest in new business opportunities to overtake competitors. We survey Brazilian firms in various industries about the [2008][2009] recession and analyze data using PLS-SEM. We find that while most firms pro-cyclically reduce costs and investments in recessions, a counter-cyclical strategy of investing in opportunities created by changes in the market enables superior performance. Most successful are firms with a propensity to recognize opportunities, an entrepreneurial orientation to invest, and the flexibility to efficiently implement investments.KEYWORDS | Recession, cycle, opportunity, entrepreneurship, flexibility. RESUMO Recessões são eventos recorrentes nos quais a maioria das empresas sofre impactos severos enquanto outras são menos afetadas ou até prosperam. A gestão estratégica tem feito pouco progresso para entender tais diferenças de desempenho. Em um cenário de demanda reduzida, competição aumentada e muitas incertezas, a maioria das empresas tenta sobreviver cortando custos e investimentos, de maneira pró-cíclica. Mas as empresas poderiam aproveitar os recursos subestimados no mercado para investir, contra-ciclicamente, em novas oportunidades de negócios para superar a concorrência. Pesquisamos empresas brasileiras em várias indústrias sobre a recessão de 2008-2009 e analisamos dados usando PLS-SEM. Descobrimos que enquanto a maioria das empresas reduzem custos e investimento pró-ciclicamente durante as recessões, uma estratégia contra-cíclica de investir em oportunidades criadas pelas mudanças no mercado possibilitam desempenho superior. Firmas com propensão a reconhecer oportunidades, com orientação empresarial para investir e com flexibilidade para implementar os investimentos de modo eficiente são as mais bem sucedidas. PALAVRAS-CHAVE | Recessão, ciclo, oportunidade, empreendedorismo, flexibilidade. RESUMEN Las recesiones son eventos recurrentes en los cuales la mayoría de las empresas sufre impactos severos mientras que otras son menos afectadas o incluso RAE-Revista de Administração de Empresas | FGV-EAESP

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“…However, these cuts are not spread equally among all product categories, but rather affect DCG than CPG due to their different product characteristics. Consumer spending is influenced by income and consumer confidence which in turn depend on the economic climate (Quelch & Jocz, 2009;Kaytaz & Gul, 2014). …”

Section: Research On Industry Levelmentioning

confidence: 99%

Sales Drive Advertising Expenditures: Evidence for Consumer Packaged and Durable Goods in Germany

Lischka

Kienzler

Mellmann

2014

IJMS

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The relation between sales and advertising is both complex and diverse. Whether advertising activities drive or follow sales is still unclear. We uncover this relation distinguishing between consumer packaged goods (CPG) and durable consumer goods (DCG) industries. We fit vector autoregressive models to sales and advertising expenditures of four CPG and three DCG industries in Germany from 1991 q1 to 2009 q4. Findings reveal that advertising expenditures do not increase total sales of industries according to the distribution hypothesis. According to the deterministic view, advertising budgeting is often influenced by previous sales and partly by future sales expectations. We conclude that past sales and partly sales expectations may change company and marketing goals that eventually affect the use of strategic communication instruments such as advertising.

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

Cited by 94 publications

References 11 publications

Consumer choice of store brands across store formats: A panel data analysis under crisis periods

Consumer choice of store brands across store formats: A panel data analysis under crisis periods

Strategies for Superior Performance in Recessions: Pro or Counter-Cyclical?

Sales Drive Advertising Expenditures: Evidence for Consumer Packaged and Durable Goods in Germany

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