The power of materialism among young adults: exploring the effects of values on impulsiveness and responsible financial behavior

Abstract

Purpose The purpose of this paper is to investigate the effects of values of materialism on cognitive and affective impulsiveness and responsible financial behavior among young adults. Design/methodology/approach A large-scale study (n = 483) was conducted on a sample of young adults 18 to 25 years of age in Croatia. Findings The research found that materialism has no direct effect on responsible financial behaviour (RFB), however, cognitive impulsiveness fully mediates the relationship of all three there three elements of materialism, centrality, success and happiness and RFB. Affective impulsiveness has no effect on the relationship. Furthermore, only materialism as centrality strongly and positively influences cognitive and affective impulsiveness. Practical implications Presented conclusions could be used by policymakers as guidelines for developing educational plans and curriculum to build financial capability and consumer protection among young adults and could be helpful for brand management activities targeting young people purchase decisions. Originality/value This paper’s ultimate purpose is to uncover the mechanism and the power of materialism on impulsiveness and responsible financial behavior. The paper’s originality is established by the focus on the investigation of materialism as an antecedent factor of impulsiveness and by questioning the nature of the relationship between materialism and responsible financial behavior through the mediating effect of impulsiveness.

Combination of Financial Knowledge and Financial Attitude in Establishing Good Financial Management Behaviour for Students After the COVID-19 Pandemic

“…Based on table 6, the correlation value of materialism to financial management behaviour is very low, namely 0.19. The results of this study are in accordance with research conducted by Lučić et al (2021), who suggest no correlation between materialism and financial behaviour. Materialism does not prevent students from having good financial management behaviour.…”

“…Arofah et al (2018) suggested that materialism has a positive influence on financial behaviour. Meanwhile, Lučić et al (2021) suggested no correlation between materialism and financial behaviour. The inconsistency of these results becomes a gap to be examined further in the relationship between financial knowledge, financial attitude, locus of control, and materialism with financial management behaviour.…”

Research on the Impact of Marketing Strategy on Consumers’ Impulsive Purchase Behavior in Livestreaming E-commerce

“… Lee and Chen (2021) stress that instant reactivity and convenience trigger impulsive purchase in mobile commerce. Studies have identified products that are bought impulsively, including groceries ( Inman et al, 2009 ; Bellini et al, 2017 ), financial products ( Lučić et al, 2021 ), milk tea ( Guo et al, 2017 ; Wu et al, 2021 ), necessities during COVID-19 pandemic ( Islam et al, 2021 ), “unhealthy” foods ( Verplanken et al, 2005 ), and brand-related user-generated content products ( Kim and Johnson, 2016 ). Some studies are keen to discover how different purchase channels influence impulsive buying, for instance, online markets ( Kim and Johnson, 2016 ; Guo et al, 2017 ; Aragoncillo and Orus, 2018 ; Pal, 2021 ; Rejikumar and Asokan-Ajitha, 2021 ; Wu et al, 2021 ), mobile commerce ( San-Martin and López-Catalán, 2013 ; Chen et al, 2021 ), and offline/in-store shopping ( Rook and Fisher, 1995 ; Inman et al, 2009 ; Tendai and Crispen, 2009 ; Sharma et al, 2010 ; Aragoncillo and Orus, 2018 ).…”

“… Rook (1987) describes impulse buying as spontaneous and hedonic purchase driven by an urgent, forceful, and persistent craving, regardless of possible consequences. Lučić et al (2021) assert that impulsive purchase is actuated by irrational emotions. Researchers also claim that impulsive purchase is the result of an irresistible reaction that is triggered by often deliberately designed stimuli ( Stern, 1962 ; Rook, 1987 ; Liu et al, 2013 ; Kim and Johnson, 2016 ; Aragoncillo and Orus, 2018 ).…”

Relationship among Materialism, Attitudes Regarding Money, Peer Influence and Satisfaction with Life in Chilean Adolescents

“…An important issue to take in consideration is that studies of materialism tend to focus on adult populations, nevertheless, the study of materialism on younger populations is relatively scarce. For example, several studies have focused on the study of materialism of higher education students and young adults (Adib & El-Bassiouny, 2012;Chaplin & John, 2010;Durvasula, & Lysonski, 2010;Goldberg et al, 2003;Karabati & Cemalcilarb, 2010;Lučić et al, 2021), however similar studies can barely be found on younger populations. Therefore, the present work explores materialism on adolescents.…”