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.
Highlights
Studies into shopping and buying behaviour of people argue that the essence of shopping traditionally is to satisfy utilitarian needs of individuals, the objective of shopping in contemporary times for some individuals goes beyond the satisfaction of utilitarian needs
On the basis of this, we argue that the effect of materialism, time affluence and socio-economic status on Antecedents of compulsive buying behaviour (CBB) could change in the presence of strong financial management skills
We investigate the role of financial management on CBB and further predict that the effect of materialism, socio-economic status, time affluence on CBB could be moderated by financial management skills of an individual
Summary
Studies into shopping and buying behaviour of people argue that the essence of shopping traditionally is to satisfy utilitarian needs of individuals, the objective of shopping in contemporary times for some individuals goes beyond the satisfaction of utilitarian needs. A major challenge often associated with shopping meant to serve other purposes other than utilitarian is that it can sometimes lead to uncontrolled buying behaviour especially for people plagued with self-control issues. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/ legalcode
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