How to Prevent Consumption Spree?

Financial literacy can prevent unnecessary spending! Altınbaş University Faculty of Business Administration Lect. Prof. Dr. Murad Canbulut stated that the inability to control the urge to buy whether the person needs it or not triggers shopping addiction.

Shopping habits have changed in today's world. The majority of consumers now prefer to shop online. However, this advantage provided by technology sometimes leads consumers to unnecessary spending. At a time when reducing consumption is crucial in combating inflation, how can this digital consumption frenzy be prevented?

Dr. Murad Canbulut, a faculty member at Altınbaş University Faculty of Business Administration, states that the inability to control the urge to buy, whether needed or not, also triggers oniomania, or shopping addiction. Dr. Murad Canbulut argues that financial literacy can help prevent unnecessary spending. So what measures can be taken to prevent this?

Today, consumers prefer shopping online rather than going to stores. This situation provides many advantages such as saving time and quick access to products. Dr. Murad Canbulut mentions that although this factor makes consumers comfortable, it can also lead to waste.

Canbulut states, "Consumers now shop without going to stores or malls. With the increase in e-commerce after the pandemic, unnecessary spending is also increasing. Looking at the statistics for 2023, the annual e-commerce volume has exceeded 1 trillion TL."

Dr. Canbulut emphasizes that looking at numerical data clarifies the picture further. "During the pandemic, the most used payment method was 'credit card.' 62% of total purchases were made with credit cards, and 38% with debit cards. In the first half of 2021, the e-commerce volume was 161 billion TL, which means a 49% increase compared to the same period last year. Credit cards are at the top of the e-commerce payment methods with 56%. The total volume in 2021 reached 400 billion TL. In 2022, it is expected that the e-commerce sector will reach a volume of 560 billion TL."

Pointing out the existence of unnecessary spending, Dr. Murad Canbulut from Altınbaş University emphasizes that to prevent this, consumers need to first determine their needs. He says it's important for consumers to determine what their needs are and then create monthly budgets. Canbulut states, "It's important to determine how much I will spend monthly, which items I will spend on. Developing financial literacy is crucial here. When we talk about financial literacy, reading prices, labels, and campaigns correctly becomes important. Not every discount or campaign is actually a discount or campaign. I want to emphasize this as well."

Canbulut highlights that some brands advertise as if they are constantly offering discounts, and before shopping from these brands, it is essential to compare the prices of the product in different stores. He explains that considering market price averages would greatly benefit consumers.

According to Canbulut, another issue to pay attention to is the changes in pricing, especially during campaign periods, to motivate consumers to make purchases. Noting that price increases are followed by discounts, Canbulut recommends tracking applications where price changes in products can be seen and avoiding unnecessary purchases during campaign periods.