THE EFFECT OF REDUCED PERCEIVED FINANCIAL WELL-BEING ON DOMESTIC PRODUCT PURCHASING BEHAVIOR: THE CASE OF TURKEY DURING COVID-19

Abstract

This paper aims at determining whether reduced perceived consumer financial well-being level impacts on the domestic product purchasing behavior mediated by frugality descriptive norms, frugality injunctive norms and ethnocentric tendencies during the economic recession (especially during the COVID-19 period). Accordingly, the data were collected from 513 respondents and structural equation modeling was used to analyze the data. The results revealed that reduced perceived financial well- being has a direct effect on domestic product purchasing. Also, prosocial consumer ethnocentrism, frugality injunctive and frugality descriptive norms have a significant mediating effect between these two variables. This paper is the first study conducted during a pandemic period of COVID-19 that caused broader economic recession in Turkey. Testing of a structural model regarding the mediation of the consumer brand loyalty or the local or international identity definition is recommended to future researchers.