Antecedents and consequences of compulsive buying behaviour: the moderating effect of financial management

Abstract

PurposeThis paper investigates the determinants of compulsive buying behaviour (CBB) and ascertains the effect of CBB on the propensity of an individual to be dependent on loans and fall into financial trouble. The study additionally examines the moderating effect of financial management on the hypothesized relationships.Design/methodology/approachThe survey method of research was adopted using questionnaires as the principal means of data collection. The predicted relationships of the study were tested using the partial least square structural equation modelling technique.FindingsThe authors’ results suggest materialism, socioeconomic status and financial management skills of an individual are significant predictors of CBB. The authors also find CBB to be positively associated with loan dependence and the authors’ analysis suggests financial management skills moderate the hypothesized relationships.Social implicationsFindings of this study suggest buying compulsively increases the risks of over-dependence on loans and can be indirectly associated with the risk of individuals falling into financial trouble.Originality/valueThe findings highlight the adverse effects of CBB on loan dependence and financial trouble and the moderating effect of financial management on the dominant factors that influence CBB.

Influencing Factors of Online Impulsive Buying Behavior to Gamers in Purchasing Gaming Peripherals

“…Rana (2012) added that consumers would impulsively purchase products in an attempt to appeal to the emotional side that it accompanies. Owusu (2021) further believed that consumers that spend beyond their needs are occasioned by the gratification, or their inner urge to make repeated purchases.…”

“…Consumers would impulsively purchase products in an attempt to appeal to the emotional side that it accompanies. According to Owusu (2021), the tendency to spend beyond the needs of consumers is occasioned by the gratification, or known as the inner urge to make repeated purchases. Consumers perform this behavior due to the need to provide relief from mental disquiet.…”

Factors Affecting Financial Well-being of Millennials: A Systematic Review

“…In relation to the theory of planned behavior in predicting an individual's intention to engage in a behavior at a specific time and place (Ajzen 1991), one of the most widely researched areas, particularly in Western countries, is the effects of compulsive buying on an individual's FWB (Lins and Lage 2016). Compulsive buying, which is associated with craving and withdrawal and is frequently characterized by euphoria and/or relief from negative emotions (Weinstein et al 2016), raises the risk of over-dependence on loans and can be indirectly associated with the risk of individuals falling into financial trouble (Owusu et al 2021). Individuals who are more aware of the consequences of their purchasing behavior and have more control over their purchasing are perceived to have a high level of financial well-being (Ajzen, 2001).…”

The Phenomenon of Compulsive Buying Behavior Due to the Rise of Fintech Lending Among Indonesian Millennials

“…Skills in financial management are very important in encouraging responsible financial behavior. In general, individuals with good financial management skills usually have a lower tendency to compulsive buying (Owusu, Amoah Bekoe, Arthur & Koomson, 2021). Therefore, according to research by Lim, Lee & Kim (2017, Owusu, Amoah Bekoe, Arthur & Koomson ( 2021 and Ramalho & Forte (2019), financial management behavior has a significant influence on compulsive buying behavior.…”

“…In general, individuals with good financial management skills usually have a lower tendency to compulsive buying (Owusu, Amoah Bekoe, Arthur & Koomson, 2021). Therefore, according to research by Lim, Lee & Kim (2017, Owusu, Amoah Bekoe, Arthur & Koomson ( 2021 and Ramalho & Forte (2019), financial management behavior has a significant influence on compulsive buying behavior. H3: Financial management behavior has a significant effect on compulsive buying behavior.…”