The effect of social media on intergenerational consumer preferences in terms of behavioral economics

Traditional economics, sees the individual as a machine that is not affected by any factor, always makes rational decisions, makes the right decisions in every situation and tries to explain consumer behavior with mathematical elements. Transferring economics from a mathematical perspective to theoretical foundations is insufficient to explain the relavance of economic analyzed to real life. Because human behaviors are not precise and rational enough to be reduced to only mathematical formulas. In daily life, environmental, social, psychological and technological factors affect human behavior and drive them away from rationality. Behavioral economics, which criticizes the assumption of traditional economics that human is a rational being, states that mental affective and environmental factors can affect people's behavior. According to behavioral economics, which examines the decision processes of consumers, consumers can only show limited rationality in their decisions. In this thesis, the concept of social media, which is a technological factor that can affect consumer decisions and behaviors, is discussed. It has been mentioned that social media can accelerate the interaction of individuals and affect their spending behavior thanks to virtual networks. When the studies in the literature are examined, it has been seen that the values and norms created in social media can shape the purchasing behaviors of individuals of all age groups. The fact that the development stages of social media are different in each generation period also differentiates the effectiveness on generations. However, it has been observed that this effect stil causes irrational behaviors on all age groups.