Young Europeans abroad in Scotland: an exploration of how their attitudes to consumer credit reflect dimensions of culture

Abstract

Nineteen young Europeans from across the Continent took part in in‐depth interviews where a wide range of consumer‐related issues were explored. These issues ranged from specific consumer behaviours and consumer value gained to consumer protection and other aspects of policy. Respondents were postgraduates studying at Scottish universities or young professionals currently working in Scotland. The interviews were structured around a number of key themes that were developed both from the literature and from an in‐depth pilot study. One of these themes was designed to explore the respondents’ attitudes towards saving and borrowing, in particular, consumer credit; and this forms the focus for the current paper. The theme had been developed initially with reference to Hofstede’s cultural dimension of ‘uncertainty avoidance’. However, it also successfully illuminated some of the other cultural dimensions in Hofstede’s typology. As anticipated, respondents tended to benchmark consumer culture in their home country against that of the host country (Scotland). What was surprising was the consensus with which they considered the Scottish/British consumers to be the ‘odd ones out’. This observed convergence appears to indicate that historical cultural differences between continental and Anglo‐Saxon cultures survive and may be stronger and more sustained than any differences between the post‐World War II socialist and market democracies.

Young adults’ attitudes towards credit

“…Similar observations have been made by researchers and specialists from other countries in both Europe and North America (e.g. McKinnon and Schröder, ; O'Loughlin and Szmigin, ; Cummins et al ., ; Bankruptcy Legal Group, ).…”

“…Indeed, beginning their adult life, students or young workers often have a less stable financial situation (Lokken Worthy et al ., ) and generally show a lower level of literacy in regard to their personal finances (e.g. Lachance et al ., ; McKinnon and Schröder, ). Moreover, young adults are more likely than others to engage in more risky financial behaviours (Nelson and Barry, ; National Foundation for Credit Counseling, ).…”

“…Young adults' feelings about credit are of growing interest to researchers. With some exceptions [see, for instance, McKinnon and Schröder's (2006) qualitative study with young adults from continental Europe], and although the concepts studied are not all the same, nearly all available studies from North America, Europe and even countries such as New Zealand, China and Saudi Arabia on youth attitudes towards credit or debt reveal rather positive attitudes (Makela et al, 1993;Xiao et al, 1995;Collins and Mammen, 1998;Hayhoe et al, 1999;Warwick and Mansfield, 2000;Yang and Lester, 2001;Hayhoe, 2002;Wells, 2007;Abdul-Muhmin, 2008;Penman and McNeill, 2008;Parker and Chatterjee, 2009;Arias and Miller, 2010). However, the majority of these studies have been undertaken with samples composed of students.…”

Learning good judgement: young Europeans’ perceptions of key consumer skills

“…Although they considered themselves as sufficiently empowered, respondents spent some time considering the position of more vulnerable consumers in society. There were some cultural differences in the attribution of blame, with Scandinavians tending to hold unscrupulous providers responsible and CEE and Southern Europeans criticizing a lack of family and community support (see also McKinnon and Schröder, 2006).…”

“…For goods where evaluation prior to purchase is difficult, such as used cars, legal advice and home repairs, one‐quarter to one‐half of purchases in the US are made through personal networks (Granovetter, 2005). McKinnon and Schröder (2006) found that in the context of attitudes towards consumer credit Eastern and Southern Europeans in particular tended to mention the loss of traditional family values as a cause of the rise in consumer debt. Respondents generally expressed suspicion and distrust of institutional lenders, with Eastern and Southern Europeans tending to borrow from their inner circle of family and friends.…”