The effect of social media in consumption expenditure from behavioral economics perspective: An analysis on the Y and Z generations

The behavioral economics that arises when the rational human model is brought into discussion argues that people are affected by a number of cognitive and environmental factors while making consumption decisions. Behavioral economists have uncovered the limited nature of human rationality with their work. Social media, which emerged with the development of internet technologies, has accelerated the interaction of people over virtual networks. With this interaction, users frequently encounter advertisements and trends created by other users via social media platforms. How effective this situation was on consumers' spending preferences was the main subject of the research. With the data obtained as a result of the survey, the relationship between the views of consumers in the Y and Z generations on social media, brands, fashion and phenomena and spending preferences were examined. As a result of the analysis, the relationship between fashion trends created on social media and brands introduced on social media and spending preferences were determined. In addition, it has been observed that the perspective on brands introduced on social media differs between the Y and Z generations. Keywords: Behavioral Economics, Social Media, Generations