Abstract
Purpose: This study aims to examine the factors that influence credit card misuse among working adults in Klang Valley, Malaysia. The relationship among self-esteem, materialism, impulsive buying, budget constraint, compulsive buying and credit card misuse are explored in this study. Design/methodology/approach: A total of 186 questionnaires was collected via convenience sampling from credit card users of working adults in Malaysia. A structural equation model that assesses the relationship between the proposed variables is tested using AMOS 20. Findings: The findings reveal that budget constraints, impulsive buying and materialism have a statistically significant influence on compulsive buying. In terms of credit card misuse, it is influenced negatively by self-esteem while positively by compulsive buying. Originality/value: Despite vast research on compulsive buying and credit card misuse, very few studies have examined it in the non-Western context.
Highlights
Credit card is a mode of payment that is widely used by consumers to purchase goods and services on credit
Research Objectives and Research Model The main objective of the study is to investigate if self-esteem, materialism, budget constraint and impulsive buying are key factors that contribute to compulsive buying and credit card misuse among working adults in Malaysia
The findings showed the credit card misuse by the working adults was directly related to materialism, budget constraint, impulsive buying and compulsive buying
Summary
Credit card is a mode of payment that is widely used by consumers to purchase goods and services on credit. The growth in credit card usage is parallel with the growth in other types of consumer credits such as bank overdrafts, personal loans, hire purchase and others. According to Soman (2001), those who use credit cards usually will make extra purchases and tend to spend over their means. They carry large balances in their credit cards which tend to accumulate because they usually pay only the minimum amount required by the banks
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