The Relationship Between Credit Card Expenditures, Consumer Confidence and Consumers' Saving Tendencies

Abstract

The decisions of consumers in the economy have a decisive role in the understanding of economic indicators and planning the future. Consumer decisions are affected by many different elements.Foremost among them among are the consumer confidence index, which measures the tendency of consumers to spend or save, and credit card expenditures, which have a significant share in the consumption structure. Although the decisions taken by the households vary from time to time, it is thought that the spending of consumers with credit cards has increased especially during the COVID 19 period, but some consumers have a precautionary behavior and tend to save. Therefore, behavior of the households can be forecasted if the relationship between the expectations of consumers, saving trends and expenditure trends is determined.For this purpose, the relationship between credit card expenditures, consumer confidence and consumers' saving tendencies are investigated for the period 2014: 03-2021: 12. The relationship between the variables for this period is analyzed with ARDL model. As a result of the applied analyzes, it has been found that there is a statistically significant cointegration relationship between variables. In the long term, credit card expenditures have a negative and significant effect on the consumer confidence index and the tendency of the savings is has no significant effect.The short-term relationship between variables is analyzed with the error correction model (ECM). As a result of the analyzes, it was found that the savings tendency has a significant impact on the consumer confidence index, and credit card expenditures have positive but low-effect on the consumer confidence index for its lagged values.

The Influence of Online Consumer Credit on College Students' Consumption Behavior

“…Others criticize the firms for focusing on young people because of their ludicrous consumption habits, including vulnerability to external pressures. Consequently, many people have applauded new rules that target microloan firms (Basarir, 2022).…”

“…The stark differences involving the largest and smallest groups embodies consumption habit shifts betwixt the diverse Chinese generations at the moment. This implies that older persons are keen on limiting consumption and living standards within affordable ranges, whilst the younger generation prefers to consume first before payments are affected at a later debt or living in the moment (Basarir, 2022).…”

“…Two-thirds of undergraduates possess credit cards, with the majority having numerous cards (Limbu, 2017). Credit cards, as the primary method of conventional credit consumption, have a number of regulatory issues, including cumbersome processing procedures, a high threshold, ease of use, and limited personal access to credit consumption (Basarir, 2022). The banking regulatory body in China in 2009 stops financial institutions from processing university learners' credit cards, resulting in a major shift where college student loans are mostly provided through online lending platforms (Zhou, 2019).…”

“…Novel financial offerings like online installment payment-lending, and network lending, among others, are being availed, providing a boost to China's credit consumption industry, illustrating the exponential growth of China's Fintech sector in the last few years. Consequently, this has substantially subverted the old financial paradigm and altered people's daily lives because to its affordability, high efficiency, as well as wide coverage (Basarir, 2022). Simultaneously, with the growth of the credit market for domestic consumers along with the increased usage of big data, resulted in the maturity of digital financial systems in China with regard to financial products targeting personal consumers (PwC, 2020).…”

Tüketici Güven ve Fiyat Endeksleri Banka ve Kredi Kartı Harcamalarında Etkili Mi

“…Toda -Yamamoto nedensellik analizi sonucunda ise plastik kart harcamalarından enflasyona, enflasyondan da öze l tüketim harcamalarına doğru tek yönlü nedensellik ilişkisi tespit edilmiştir. Başarır (2022) kredi kartı harcamaları ile tüketici güveni ve tüketici tasarruf eğilimleri arasındaki ilişkiy i 2014 Mart ayı 2021 yılı Aralık ayı arasındaki dönem için incelemiş ve aralarında uzun dönem ilişk i bulmuştur. Uzun dönemde kredi kartı harcamalarının tüketici güven endeksini negatif yönde etkilediği sonucuna ulaşmıştır.…”