The power of materialism among young adults: exploring the effects of values on impulsiveness and responsible financial behavior

Andrea Lučić,Andrea Previšić,Marija Uzelac

doi:10.1108/yc-09-2020-1213

Andrea Lučić, Andrea Previšić + Show 1 more

Open Access

https://doi.org/10.1108/yc-09-2020-1213

Copy DOI

Abstract

PurposeThe purpose of this paper is to investigate the effects of values of materialism on cognitive and affective impulsiveness and responsible financial behavior among young adults.Design/methodology/approachA large-scale study (n = 483) was conducted on a sample of young adults 18 to 25 years of age in Croatia.FindingsThe research found that materialism has no direct effect on responsible financial behaviour (RFB), however, cognitive impulsiveness fully mediates the relationship of all three there three elements of materialism, centrality, success and happiness and RFB. Affective impulsiveness has no effect on the relationship. Furthermore, only materialism as centrality strongly and positively influences cognitive and affective impulsiveness.Practical implicationsPresented conclusions could be used by policymakers as guidelines for developing educational plans and curriculum to build financial capability and consumer protection among young adults and could be helpful for brand management activities targeting young people purchase decisions.Originality/valueThis paper’s ultimate purpose is to uncover the mechanism and the power of materialism on impulsiveness and responsible financial behavior. The paper’s originality is established by the focus on the investigation of materialism as an antecedent factor of impulsiveness and by questioning the nature of the relationship between materialism and responsible financial behavior through the mediating effect of impulsiveness.

Highlights

There has been a growing interest in the investigation of responsible financial behavior of young adults (Pinto et al, 2000; Watson, 2003; Norvilitis et al, 2006; Yang et al, 2008; Tang et al, 2015; Bamforth et al, 2018; Bapat, 2020)
According to the presented results, conducted research established that cognitive impulsiveness fully mediates the relationship between materialism and responsible financial behaviour (RFB), at the same time it is important to note that materialism has no direct effect on RFB
Such findings confirm that those who are prone to materialism have lower control over their consumption (Lee and Ahn, 2016), they are prone to make ineffective financial decisions and vulnerable to irresponsible financial behavior (Barbic et al, 2019)

Summary

Introduction

There has been a growing interest in the investigation of responsible financial behavior of young adults (Pinto et al, 2000; Watson, 2003; Norvilitis et al, 2006; Yang et al, 2008; Tang et al, 2015; Bamforth et al, 2018; Bapat, 2020). Even though there has been an array of studies on the relationship between materialistic values and consumption (Podoshen and Andrzejewski, 2012; Lysonski and Durvasula, 2013; Ahuvia and Wong, 2002; Sirgy, 1998; Pandelaere, 2016) and related to individuals financial management (Watson, 2003; Richins and Dawson, 1992; Arndt et al, 2004) the role of materialism as an antecedent factor that influences cognitive and affective impulsiveness is under-researched and not well-understood. Various studies have indicated that because of the increased need for social acceptance materialism among the young has a great impact on consumption behavior (Yang et al, 2008; Demirbag et al, 2010; Xu, 2008), indicating the importance of further examination of the outcomes of materialism on financial behavior

Objectives

Methods

Results

Conclusion