CONCLUSION& FURTHER RESEARCH
The aim of this study is to investigate the fundamental dynamics of consumerism and credit
card debts under the influence of advertising in the presence of extensive use of credit cards.
To realize this aim, system dynamics methodology is utilized. Afterwards, excessive spending
behavior of people with middle income in Turkey is investigated via a dynamic simulation
model.
It is observed that advertising frequency has substantial effect on excessive spending.
Moreover, some credit card systems may pave the way for huge amount of debt for middleincome
consumers. It is seen that although advertising influences people to buy things,
excessive spending, which may result in debt, can be inhibited through Debt Loyalty Law.
However, limited spending causes people not meeting their expectations that ultimately result
in dissatisfaction. Furthermore, it is observed that if advertising frequency is constrained and
is reduced almost 50% by regulations, comparison tendency of people becomes significantly
lower. This causes both lower debt and higher satisfaction. Lastly, a hybrid policy provides
improvement for new regulations about credit card limit by sustaining less oscillatory
spending behaviors, and higher and consistent satisfaction level.
The research described in the paper can be broadened and deepened. Presented model can
serve as infrastructures to more sophisticated models. Distinct from advertising, media effect,
which influences subconscious of consumers via different ways, can be included in the model.
This may provide a more extensive and a more realistic model though, in the cost of
increasing complexity and hence, possibly, less explanatory power.
Another alternative is to include installment system in the model. Installment system provides
consumers to buy possessions easily with the delusive impact of longer payment period
(Kiron,1996). This system is widespread for some other countries than Turkey, too. Thus,
including installment may make model more realistic for those cases.
CONCLUSION& FURTHER RESEARCHThe aim of this study is to investigate the fundamental dynamics of consumerism and creditcard debts under the influence of advertising in the presence of extensive use of credit cards.To realize this aim, system dynamics methodology is utilized. Afterwards, excessive spendingbehavior of people with middle income in Turkey is investigated via a dynamic simulationmodel.It is observed that advertising frequency has substantial effect on excessive spending.Moreover, some credit card systems may pave the way for huge amount of debt for middleincomeconsumers. It is seen that although advertising influences people to buy things,excessive spending, which may result in debt, can be inhibited through Debt Loyalty Law.However, limited spending causes people not meeting their expectations that ultimately resultin dissatisfaction. Furthermore, it is observed that if advertising frequency is constrained andis reduced almost 50% by regulations, comparison tendency of people becomes significantlylower. This causes both lower debt and higher satisfaction. Lastly, a hybrid policy providesimprovement for new regulations about credit card limit by sustaining less oscillatoryspending behaviors, and higher and consistent satisfaction level.The research described in the paper can be broadened and deepened. Presented model canserve as infrastructures to more sophisticated models. Distinct from advertising, media effect,which influences subconscious of consumers via different ways, can be included in the model.This may provide a more extensive and a more realistic model though, in the cost ofincreasing complexity and hence, possibly, less explanatory power.Another alternative is to include installment system in the model. Installment system providesconsumers to buy possessions easily with the delusive impact of longer payment period(Kiron,1996). This system is widespread for some other countries than Turkey, too. Thus,including installment may make model more realistic for those cases.
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