Compulsive buying among young adults: a behavioural segmentation

Purpose The purpose of this paper is to study the impact of materialism on credit card (CC) use and impulsive buying (IB) and compulsive buying (CB) behaviour. Furthermore, it assesses whether CC use and IB behaviour mediate the relationship between materialism and CB behaviour. Design/methodology/approach Data were collected from adult consumers with CCs via an online survey. For model assessment, a two-step approach was followed. First, a measurement model was created and tested using maximum likelihood estimation and validity of the study constructs was assessed. This was followed by structural equation modelling to test the hypotheses. Findings Materialism influences CC use and increases the propensity for IB (IB), which then precipitates CB habits. Reduction in CC use can decrease both IB and CB. Out of the six hypotheses assessed, only the one linking CC use to CB was not supported, requiring further investigation. Mediation relationships were identified, where CC use and IB act as mediators between materialism and CB. Research limitations/implications The paper captured responses from adult consumers of India. Hence, the findings may not be generalised across geographies and age groups. The study contributes to the debate on the impulsive–CB paradigm by showing that impulsive and CB are not distinct constructs. In fact, the former could lead to the latter. Practical implications CC use in itself need not necessarily lead to CB. The only way CC could cause CB is through IB. Hence, firms must promote responsible buying habits, as there has been an increase in IB, which, if not controlled, could lead to debt trap resulting from CB. The findings of this paper will help both retailers and CC institutions to better understand the spending pattern of consumers. Those will also help the policymakers to chalk out ways to the curb indiscriminate issuance of CCs without educating users. Originality/value The findings confirm that IB and CB exist on two ends of a continuum, and not as two distinct theoretical constructs. IB acts as a mediator between CC use and CB as well as between materialism and CB.

Compulsive buying behavior is a negative form of behavior that leads to overspending. In the current study, the author examines the applicability of a compulsive buying behavior scale developed by Valence et al. (1988) with Indian consumers. Compulsive buyers are likely to relate money to power, success, and status. Compulsive buyers perceive their purchases as a way of overcoming negative self-esteem and anxiety. The influence of consumers’ attitude toward credit cards, demographic factors, and credit card use on compulsive buying was studied. The findings suggest the compulsive behavior scale should be modified in the Indian context. Age, income, education, and marital status influence compulsive buying. Consumers’ attitude toward credit cards did not affect compulsive buying.

PurposeAlthough much research focuses on the compulsive buying behavior theory, little attention has been paid to evaluation and diagnosis of compulsive buying in Eastern Europe. This is surprising, given an increasing prevalence of consumerism in many transitioning economies. Young consumers are particularly vulnerable to this phenomenon. The purpose of this study is to adapt the Richmond Compulsive Buying Scale to the Eastern European, specifically Polish cultural and language environment, and to validate it within a group of young Polish consumers, as well to assess the compulsive buying prevalence and the relationship between the compulsive buying and its precursors.Design/methodology/approachThe Richmond Compulsive Buying Scale was selected for adaptation to the Polish context as it represents one of the best methodological and substantive compulsive buying measures in literature. The research is composed of two studies. Study 1 uses an in-person survey of young consumers (N = 504). A wide range of statistical procedures and latent variable modeling was used in the analysis. Study 2 (N = 756) uses an online survey to evaluate the correlation and relationship between the compulsive buying measure and its precursors, including consumers’ traits and states, by implementing a multiple indicators and multiple causes model.FindingsThe results of the two studies confirm that the adapted scale represents a valid and reliable measure of compulsive buying tendency in Poland, with the identified incidence rate of compulsive buying among Polish young consumers ranging from 11% in Study 1 to 11.6% in Study 2. In comparison with the results of other studies using the same measure, the current research findings reveal a similarity with the compulsive buying prevalence in China (10.4%; He et al., 2018), Brazil (9.8%; Leite et al., 2013) and slightly exceed the level found in western societies (e.g. 8.9% in the USA; Ridgway et al., 2008). The results of Study 2 indicate that compulsive buying in Poland is induced by low self-esteem and high levels of materialism, depression, anxiety, stress and negative feelings.Research limitations/implicationsThe present research offers a methodological and substantive contribution by adapting and testing the original version of the Richmond Compulsive Buying Scale within an Eastern European transitional market; specifically Poland. In addition, the study offers an empirical contribution to the international research on compulsive behavior, including its precursors, as seen in young consumers.Practical implicationsThis research offers important public policy implications and highlights ethical implications for business organizations. In particular, the findings of this study offer suggestions for enhancing policies and processes of programing appropriate social and educational campaigns that can save young consumers from the negative consequences of compulsive buying.Originality/valueThe transitional status of the Polish economy and other Eastern European countries has given rise to compulsive buying behavior, especially among young consumers. This emerging consumer behavior trend in Eastern Europe is still underexplored and underreported; hence, there exists a strong need for exploring and measuring such behavior across different Eastern European markets.

PurposeThe purpose of this paper is to investigate how young Chinese consumers' money attitudes influence their compulsive buying behavior.Design/methodology/approachIn total, 303 undergraduate students from Tianjin and Ningbo (two major cities in coastal China) answered a self‐administered questionnaire.FindingsMoney attitudes were found to significantly affect young Chinese consumers' compulsive buying behaviour. Specifically, the Retention‐Time dimension significantly affected both male and female consumers' compulsive buying. However, the Power‐Prestige dimension only affected male consumers' compulsive buying. Finally, the Quality dimension had a greater impact on male than on female consumers' compulsive buying.Research limitations/implicationsThe data were collected in two major cities in the coastal region of China. Given the differences between coastal and inland China, caution must be taken when generalizing the research results to young consumers from inland China.Practical implicationsThe discussion of the relationships between young Chinese consumers' money attitudes and their compulsive buying will help marketers and policy makers to better understand these consumers' spending behaviour. Thus, marketers can identify new market opportunities and form marketing strategies to target young consumers in China. On the other hand, policy makers can also form more effective education strategies to help young consumers to spend wisely.Originality/valueDifferent from previous research in money attitudes and compulsive behaviour, the research provides an in‐depth overview of how male and female young Chinese consumers perceive money and how their beliefs about money affect their spending.

The purpose of this study was to develop an understanding of the compulsive buying experience through an in-depth exploration of what it is like to be a compulsive buyer, and in particular, a compulsive clothing buyer. A phenomenological approach to inquiry was employed. In-depth interviews were conducted with a total of 6 females in the US. Participants were also asked to keep personal journals. Recorded interviews and journals were transcribed verbatim. Responses were analyzed thematically by the researchers. Four main core thematic areas emerged and were used to structure the interpretation: The Person, The Process, The Product, and The Path to Recovery. Findings from this study support and enhance previous studies suggesting the importance of clothing among compulsive buyers. However, this study is the first to offer potential explanations for this preference, including the physical attributes of the product as well as its ability to transform the self through appearance.

Introduction Compulsive buying refers to a condition where consumers make purchases repetitively and excessively (Ridgway, Kukar-Kinney & Monroe, 2008; Japutra, Ekinci & Simkin, 2017). Previous literature shows that two types of behaviors characterize compulsive buying: impulsive buying and obsessive-compulsive buying (Ridgeway et al, 2008). Impulsive buying refers to unplanned purchase due to consumers’ inevitable impulse (Kacen & Lee, 2002), and obsessive-compulsive buying reflects a preoccupation in buying to reduce anxiety (Ridgway et al, 2008). Compulsive buying behaviors have been analyzed under the framework of motivation theory (McGuire, 1976). Nevertheless, research is still needed to understand more on the phenomena of compulsive buying (e.g., Kukkar-Kinney et al., 2016; Japutra et al., 2017). This study aims to explore the antecedents of compulsive buying behaviors using implicit theories. According to the implicit theories, mindset shapes the motivation of consumer behaviors (Dweck, 2000; Murphy & Dweck, 2016). Mindset refers to the beliefs about the nature of human characteristics, and individuals may possess two types of mindset – fixed and growth mindset (Murphy & Dweck, 2016). People with a fixed mindset believe that individuals’ qualities such as intelligence and competence are set and hard to change, whereas those with a growth mindset tend to believe that all individuals are able to change and develop through efforts and experiences. We argue that mindsets influence compulsive buying, and we propose that deal proneness mediates the relationship between mindset and compulsive buying. In doing so, we aim to enhance our knowledge in understanding how mindset affects compulsive buying behavior. Literature review and hypotheses According to the implicit theories, consumers with fixed mindsets believe that one’s abilities are fixed and hard to improve, and thus feel the need to prove, to themselves and others, that they have the abilities and/or they are successful (Murphy & Dweck, 2016). Thus, fixed mindset consumers tend to demonstrate their worth by using image-enhancing products and brands (Park & John, 2012). Deals, such as free gifts and offer of coupons, reduce the transaction cost and increase the perceived value of these image-enhancing purchases. In particular, since fixed mindset consumers favor success with little effort (Murphy and Dweck, 2016), deals can help them achieve their goal of image enhancement with lower cost. Thus, we hypothesize that: H1 Fixed mindset is positively related to deal proneness. For consumers with growth mindsets, a major motivation for their consumer behavior is to learn and improve (Murphy & Dweck, 2016). As the research by Blackwell et al. (2007) shows, growth mindset consumers are eager to participate in the self-improving process and achieve mastery. Thus, growth mindset consumers may perceive the information of discounts, free gifts and coupons as part of the adventurous process where they make the cost-benefit analysis and improve their abilities as wiser consumers. Thus, we propose: H2 Growth mindset is positively related to deal proneness. Previous studies show that compulsive buying is associated with high deal proneness (Kukar-Kinney et al, 2012). Deals may imply perceived value of the purchase and enhanced shopping enjoyment (Grewal, Monroe, & Krishnan, 1998), and thus serve as an effective contextual factor in inducing compulsive behaviors (Kukar-Kinney et al, 2016). Furthermore, deals provide an excuse and rationale for the purchase, which can be used to overcome the sense of guilt compulsive buyers often experience after their compulsive buying behavior (O’Guinn & Faber, 1989). Thus, we make the following hypotheses. H3 Deal proneness is positively related to impulsive buying. H4 Deal proneness is positively related to obsessive-compulsive buying. Finally, we argue that deal proneness mediates the relationship between consumer mindsets and compulsive buying behavior. According to the implicit theories, consumer mindsets inspire how consumption goals are pursued (Murphy & Dweck, 2016). Consumers with a fixed mindset pursue a performance goal, and they tend to use brands to feel positive about themselves and improve impression on others (Park & John, 2010). In contrast, consumers with a growth mindset hold that people can always learn and improve and thus are tuned to learning goals (Murphy & Dweck, 2016). Hence, for fixed mindset consumers, deal offers suggest lower costs for image-enhancing purchases, and provide an excuse for the compulsive buying behavior. For growth mindset consumers, deal offers can imply a learning and adventurous process .These consumers may feel that they can make better purchasing decisions by taking advantage of various deals. We thus hypothesize that: H5 Deal proneness mediates the relationship between fixed mindset and impulsive buying (H5a), between fixed mindset and obsessive-compulsive buying (H5b), between growth mindset and impulsive buying (H5c), and between growth mindset and obsessive-compulsive buying (H5d). Method A questionnaire was developed to gather responses and test the hypotheses. All of the items to measure the constructs were developed from existing scales based on previous research. Fixed and growth mindsets were measured using scales developed by Park and John (2012). Deal proneness was measured using items following Lichtenstein et al. (1997). Impulsive buying and obsessive-compulsive buying were measured using items developed by Ridgway et al. (2008). All items were rated on a 7-point Likert scale, ranging from “strongly disagree” (1) to “strongly agree” (7). The questionnaire was administered using an online survey (N=421 respondents). Of these, 57.7% were female, 71.5% had a university degree, 50% were 31-40 years old, 41% were 26-30 years old, and 46.3% had a monthly income of 5,001-10,000 RMB. Results and discussion To test the hypotheses within the research model, a Structural Equation Modeling (SEM) approach was employed, using AMOS 18.0. First, a measurement model was created to assess the validity and reliability of the scales. The distribution of the data was checked. The absolute value of the skewness and kurtosis of each items were within +/- 1, suggesting normal distribution was achieved. The measurement model produced good fit (Hair et al., 2010): χ2(109) = 281.21, χ2/df = 2.58, GFI = .93, NFI = .93, CFI = .96, and RMSEA = .06. All values representing the AVE were greater than 0.5 and greater than the squared inter-constructs correlations, indicating convergent and discriminant validity were achieved (Fornell & Larcker, 1981). Cronbach’s alpha values exceeded .70, indicating the constructs were reliable (Hair et al., 1995). The results of the checking common-method variance problem through exploratory factor analysis (EFA) test revealed 3 factors with Eigen values greater than 1. The results accounted for 64.67% of the total variance, where the first factor accounted for 27.55% of the total variance, suggesting that common-method variance did not pose a significant problem since there was no general factor in the un-rotated structure (Podsakoff et al., 2003). Next, a structural model was created. The structural model produced good fit (Hair et al., 2010): χ2(114) = 476.15, χ2/df = 4.18, GFI = .89, NFI = .89, CFI = .91, and RMSEA = .09. Table 1 displays the results of SEM. The results support H1 and H2. Both fixed and growth mindsets are positively associated with deal proneness. The results support H3 and H4, which shows that deal proneness are positively associated with impulsive and obsessive-compulsive buying. The results support H5a, which states that deal proneness mediates the relationship between fixed mindset and impulsive buying. However, the results do not support H5b, H5c and H5d. Conclusion Using the implicit theories, this research aims to gain better insight into compulsive buying behavior. Our findings, obtained from a sample of respondents in China, show that deal proneness serves as a mediator between fixed mindset and compulsive buying behaviors. According to the implicit theories, consumer mindsets inspire how consumption goals are pursued (Murphy & Dweck, 2016). For instance, consumers with a fixed mindset pursue a performance goal. They tend to use brands to feel positive about themselves and improve impression on others (Park & John, 2010). Thus, it is likely that fixed mindset consumers buy compulsively to signal and communicate their “self” to others. In particular, for fixed mindset consumers, deals may increase the perceived value of image-enhancing purchases. Thus, deals provide an excuse for the compulsive purchase where fixed mindset consumers can improve self-image and demonstrate their worth with lower costs. Given this mediating role of deal proneness between fixed mindset and compulsive buying, it will be interesting to test further how consumers with a fixed mindset respond to different types of deals in future research. For firm managers and public policy makers, our findings imply that, to lessen consumers’ overspending, firms should reduce excessive number of deals, and governments should also regulate firms’ advertisement so that it will not overly promote deals.

In recent years, the credit card market in India has shown positive growth. However, the Indian market with infrastructural constraints, collectivist tendencies, and recent economic developments due to liberalisation is different from Western countries. It was assumed that Indian consumers' attitude about credit card use is likely to differ from their Western counterparts. The purpose of current research was to examine relationship of money attitudes, credit card use, age and gender on compulsive buying behaviour of Indian consumers. It would enable in understanding differences, if any, between developing and developed country markets. Insights about consumers' attitudes towards credit cards and money can help credit card companies educate consumers about over spending and debt. It also attempts to understand applicability of money attitude and compulsive scale on Indian consumers. The results suggest that compulsive buying behaviour is influenced by money attitudes of power and price sensitivity. Extravagance-prudence and age moderate money attitude. Credit card companies can use themes of 'power' and 'price sensitivity' to target consumers. Compulsiveness can lead to social and financial problems; it is important to educate consumers about credit card use and associated risks.

PurposeCollege students often embrace credit card use and do not always consider the potential risks of incurring debt from irresponsible credit card use. This paper aims to focus on this issue.Design/methodology/approachCollege students (n=301) were surveyed and reported their disposable income and employment status. Outcome variables were attitudes toward irresponsible credit card use, compulsive buying, money anxiety, and money price sensitivity.FindingsIt is found that an incremental pattern of greater levels of disposable income and employment was associated with greater credit card use irresponsibility. Greater levels of disposable income were associated with greater levels of compulsive buying and money anxiety. Part‐time employment was associated with the greatest level of money price sensitivity.Originality/valueThe paper shows that college students should seek information about, or counseling for, the responsibilities associated with credit card use and proper handling of personal finances.

Purpose – The purpose of this study is to assess the moderating and mediating roles of credit card usage in the relationship between money attitudes (i.e. power-prestige, retention-time, distrust and anxiety) and compulsive buying behaviour. Design/methodology/approach – The research design comprised a cross-sectional survey and two focus-group interviews. A structured questionnaire was completed by 365 young credit card users in São Paulo in Brazil, and two focus group discussions were conducted comprising six participants each. Findings – Results showed that misuse of credit cards significantly increased compulsive buying among individuals with high levels of anxiety. Credit card usage partially mediates the relationship between compulsive buying and three variables established in the literature: power-prestige, retention-time and anxiety. Credit card usage did not significantly mediate the effect of distrust (or price sensitivity) on compulsive buying behaviour. Respondents’ price sensitivity did not by itself reduce levels of usage, though it did have an effect on overspending in conjunction with the other factors studied. The key themes that emerged from the focus-group interviews enhanced the survey’s results with greater in-depth understanding. Originality/value – This study was the first to compare the moderating and mediating effects among the four elements of money attitudes and compulsive buying behaviour. It addresses the issue of financial literacy, money management and overspending – a special concern for today’s emerging economies – in a Brazil, Russia, India and China (BRIC) country.

Having unlimited needs and wants, humans as economic beings will struggle to meet their needs. In this modern era, shopping for human needs and desires has become easier to do with the availability of various stores and malls to online retail. This ease of shopping has increased interest in shopping for unlimited material needs and indulges Indonesians to continue making purchases in order to develop uncontrolled compulsive buying behavior. Therefore the authors aim to examine the effect of materialism on compulsive buying mediated by the use of credit cards and impulsive buying. The object of this research is credit card users in Batam. Sampling was done by giving a google form questionnaire to credit card users in the city of Batam. Demographic data of respondents were then analyzed using IBM SPSS Statistics version 25.0 and analysis of the effect of independent variables on the dependent variable was carried out using Smart PLS version 3.2.8. The results of this study indicate that the variables of materialism, use of credit cards and impulsive buying have a significant effect on compulsive buying .

The Credit Card Use and Debt: Is there a trade-off between compulsive buying and ill-being perception?

Compulsive buying is a psychosocial symptom as indicated by excessive buying behavior, even items purchased not always have a positive use value. This study analyzes the existing compulsive buying in adolescence and review of the role offamily factors. The hypothesis is there a relationship between compulsive buying behavior in families with several factors, including a divorce in the family, the family members of deviant behavior, patterns communication in families, parental yielding, and the perceptions of parents of compulsive buying. The subject of this research is student of senior high school and university in Yogyakarta. This research using compulsive buying scale, deviant behavior of family member scale, pattern communication in families scale, parental yielding scale, and perceptions of parents of compulsive buying scale.Through a quantitative approach to the studyfound that of the severalfactors mentioned, there is only perception of compulsive buying factor that has a positive influence on compulsive buying behavior. Regression analysis showed that compulsive buying behavior in adolescents, 8.2 % is determined by the perception of the parents and the rest of the behavior is influenced by otherfactors. The more positive perception ofthe parents, then the compulsive buying behavior in which appears also higher. Conversely, the more negative the perception of older people who appear compulsive buying is also lower.Key words: Compulsive buying, family factors

Compulsive behavior is an important topic for social scientists. One form of this behavior is compulsive buying. Using data sets from two countries, the USA and South Korea, the Diagnostic Screener for Compulsive Buying (DSCB) (Faber and O'Guinn 1992) is tested with specific emphasis on the scale's cross‐cultural transferability. We find evidence that the DSCB is unidimensional in the USA and bi‐dimensional in South Korea, suggesting a lack of transferability. Potential cultural reasons for the findings are discussed in detail as well as the implications for public policy and future research.

The phenomenon of impulse behavior has been extensively studied by social studies researchers over the last century. An extension of this, impulse buying behavior has also been well-researched at least within the brick-and-mortar context. However, impulse buying behavior within the online context has been relatively unstudied compared to the offline equivalent. In this systematic literature review the authors attempt to synthesize literature on this topic, provide clarity of concept regarding the various forms of impulse shopping behavior, propose a theoretical framework that encapsulates both impulsive and compulsive buying behaviors within the online context, and discuss the underlying theoretical foundations, characteristics, contexts, and methodologies that define the literature within this domain. This review is the first within the online impulse buying behavior domain which provides a distinction between the various forms of impulse buying behavior, such as consumer impulsivity, the buying impulse, impulsive, compulsive, and panic buying behaviors. It is also the first to propose a comprehensive framework that incorporates both impulsive and compulsive buying behaviors within the online context. The theoretical framework proposed within this review would be of managerial relevance to practitioners within the e-commerce or social commerce domain since this is the first paper that discusses both online impulsive and compulsive buying behaviors within the same theoretical model. Policyholders in the field of addictive behavior and disaster management would benefit from the discussion of online compulsive and panic buying, along with the theoretical underpinnings of these phenomena. Lastly, this review would provide a fundamental but holistic view of online impulse shopping behavior to academicians within this domain.

Purpose– The compulsive buying (CB)behaviour has become topics of increasing interest to researchers and policy makers, particularly because researches have shown that it can influence consumer behaviour and well-being. However, a clear picture of how this phenomenon arises has proven elusive. Using the adolescents perceived level of stress as an integrative framework, the purpose of this paper is to derive hypotheses from two theoretical perspectives (the stress and CB behaviour), and uses a survey of adolescents (15-18) year in India to test the hypotheses.Design/methodology/approach– The present study is the first to experimentally manipulate important stressors in the lives of adolescents, i.e. familial and non-familial; and measures its impact on CB among a sample of 15-18-year old adolescents. Next, the authors investigate the relationship between CB and post-purchase regret and then whether gender moderates the stress-CB relationship.Findings– The present study finds that adolescents increasingly turn to CB in an attempt to cope with heightened levels of stress due to familial and non-familial factors. Surprisingly, findings reveal that non-familial factors are not a major source of stress among adolescents. Gender was not found to moderate stress-CB relationship. Both boys and girls were found to respond to higher levels of stress with higher incidences of CB. Results suggest that CB behaviour is a common coping strategy for adolescents from both genders. The findings indicate that one’s experiences and circumstances in adolescence are related to their CB behaviour, thus a framework has been used to elucidate them, have important implications for theory and practice.Originality/value– The study makes some inimitable and significant contributions to the literature. It portrays one of few studies to investigate CB during adolescence period – a hard to reach population. Here authors experimentally manipulate stress levels to investigate its impact on CB. The study’s findings in regard to gender’s impact on the stress-CB relationship suggest that CB begins during adolescence period and is a common coping strategy for both boys and girls.