Money attitudes, credit card and compulsive buying behaviour: a study on Indian consumers

Abstract

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.