Credit Card Use and Compulsive Buying Behavior

ABSTRACT

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.     

Compulsive Buying Among College Students: An Investigation of Its Antedecents,Consequences, and Implications for Public Policy

This study is an investigation of the incidence, antecedents, consequences, and public policy implications of compulsive buying among college students, a segment of the 44 million Americans born between 1965 and 1976, known as the Baby Bust generation. Previous research involving a broader range of adult consumers resulted in estimates of one to six percent classified as compulsive, buyers. Using Faber and O'Guinn's (1992) clinical screener for compulsive buying, six percent of the college students sampled were classified as compulsive buyers, thus indicating the need for better understanding of compulsive buying behavior in this segment of the Baby Bust generation. Various contributing factors, including familial, psychological, sociological, and demographic influences, are detailed. Of particular interest is the relationship between credit card use and compulsive buying. Implications for consumer policy are discussed, and suggestions for research are offered.     

A Neurological Study of Compulsive Buying Behaviour

The following article describes a study of the neural correlates of compulsive buying. Twenty-six non-compulsive (“normal”) and 23 compulsive buyers were measured using functional magnetic resonance imaging while performing purchasing decisions. The compulsive buyers were selected based on strict criteria, such that they were all undergoing psychotherapeutic treatment due to their buying behaviour. The results show evidence of significant differences between non-compulsive and compulsive buyers regarding brain activity in regions known to be involved in decision making. The findings give a deeper insight into the nature of compulsive buying and are relevant to consumer policy.     

Consumers’ personality and compulsive buying behavior: The role of hedonistic shopping experiences and gender in mediating-moderating relationships

Although existing research suggests that personality plays an important role in explaining compulsive buying behavior, there is still potential space to diagnose the theoretical mediational mechanisms underlying these effects or the extent to which these relationships vary across different consumer demographic groups. Indeed, the role of specific personality traits on hedonistic shopping experiences and compulsive buying still awaits an in-depth examination and clarification. Thus, the present research contributes to existing knowledge by: (1) examining hedonistic shopping experiences (HSE) as a mediating mechanism on compulsive buying (CB); and (2) investigating the role of gender as a moderating variable. Using a sample of 363 adults and data derived from the US market, we confirmed the role of hedonistic shopping experiences, a central trait, in mediating the effects of cardinal traits (i.e., neuroticism, extraversion, openness to experience, conscientiousness and agreeableness), on compulsive buying, a surface trait. Specifically, neuroticism, extraversion, openness to experience exerted a more indirect and positive influence on compulsive buying, while conscientiousness and agreeableness showed a stronger direct and negative relationship with hedonistic shopping experiences and compulsive buying. In addition, neuroticism, extraversion, and openness to experience were a stronger driver of compulsive buying for women than for men, while conscientiousness and agreeableness jointly decreased the importance of hedonistic shopping experiences, and more strongly inhibited compulsive buying for women than for men. The research findings offer important theoretical, public policy and marketing implications.     

Who pays your debt? An important question for understanding compulsive buying among American college students

Compulsive buying, defined as the inability to control purchasing behaviour, is higher among college‐aged students than it is among the general public. The present study examined the factors related to compulsive buying among college students and how those factors differ as a function of who paid the majority of their debt: themselves or their parents. A total of 628 undergraduates from the US completed a questionnaire containing items to measure compulsive buying, personality and financial responsibility. Results revealed that variables predictive of compulsive buying varied depending on the amount of credit card debt that the student was personally responsible for paying. Findings have implications for reducing compulsive buying in college students.     

Purchasing veg private labels? A comparison between occasional and regular buyers

Retailers are increasingly extending their private label assortments with meat-substitute, vegetarian and vegan foods (here called veg foods) to respond to emerging consumer trends. However, no studies on consumer buying behavior with regard to veg private labels exist. Accordingly, this work analyses the impact of ethical motives (i.e., environmental, animal welfare, health, and spiritual concerns) and perceptual factors (i.e., trust, perceived quality, and perceived value) as drivers of consumers' buying intentions of regular and occasional buyers of veg private labels, identified by their purchase frequency. The multigroup structural model findings show that occasional buyers are motivated by perceived quality, environmental, and animal concerns, while regular buyers opt for veg private labels on the grounds of their trust in the retailer's own-brand and environmentally-friendly claims. The perceived value is key for both segments.     

I,me, and my everything: Self conceptual traits and compulsive buying behavior

Compulsive buying behavior is detrimental to the well-being of the consumers, brands, and the economy. Therefore, the current study aims to understand how the self-conceptual traits and values underline the corridors to the compulsive buying behavior of fashion apparel products. We collected self-administered data from systematically selected 744 young shopping mall consumers and employed structural equation modeling (SEM) via maximum likelihood method for analysis. Self-conceptual traits (physical and achievement vanity), materialism, and brand consciousness play a pivotal role in the development of compulsive buying behavior in young consumers of Pakistan. Furthermore, the presence of materialistic attitude and brand consciousness in consumers firmly explains vanity-driven consumer's excessive, chronic, and unneeded purchasing of fashion appeal products. Policymakers and fashion apparel marketers should limit the excessive use of self-oriented and self-defining appeals in their marketing campaigns and focus on strategies that build consumer relationships with brands based on mutual benefits and welfare.     

The impact of money attitudes and global life satisfaction on the maladaptive pursuit of consumption

The goal of this research was to examine how money attitudes and global life satisfaction relate to and predict compulsive buying among young adults. Using a Prolific Academic sample, 265 adults between the ages 18 and 25 completed the Money Attitudes Scale, Money Ethics Scale, Spendthrift‐Tightwad Scale, Satisfaction with Life Scale, and the Richmond Compulsive‐Buying Scale. As expected, motives toward saving and spending money as assessed by the Money Attitude Scale and pain of paying as assessed by the Spendthrift‐Tightwad Scale were correlated and predicted compulsive buying. However, these findings are qualified by an interaction effect such that those who held negative attitudes toward saving money and experienced little pain of paying were compulsive buyers. Theoretical and practical implications for maladaptive purchasing behavior among young adults are discussed.     

Friends with benefits: Behavioral and fMRI studies on the effect of friendship reminders on self-control for compulsive and non-compulsive buyers

Does the real or imagined presence of friends invariantly drive consumers to engage in disinhibited behavior, and give in to the “urge to splurge” in the face of consumption temptations? Or might there be situations in which being with friends or even merely thinking of friends or the friendships we have with them can actually improve self-control?In five studies, using a unique combination of controlled experiments examining overt consumer behavior and functional magnetic resonance imaging (fMRI), we propose and show that the extent to which consumers identify a goal conflict between giving in to buying temptations on the one hand and the perceived consequences for maintaining satisfactory relationships with close friends on the other is a critical mediator of whether friendship reminders decrease or increase self-control. We further show that such a goal conflict is most likely for consumers with a chronic, compulsive tendency for uncontrolled, disinhibited acquisition and consumption—for consumers classified as compulsive buyers. For their non-compulsive counterparts, in contrast, acts of acquisition and consumption, even incidental disinhibited ones, are perceived to be less problematic in light of their friendships and hence do not induce a goal conflict to the same extent. Our findings provide insights into social influences on self-control and identify the concept of friendship reminders as a way to reduce a common type of dysfunctional consumer behavior. In addition to enhancing consumer well-being, reducing compulsive buying will substantially reduce handling costs for organizations. Hence, the findings are of academic, societal and managerial relevance.     

The Psychology of Impulse Buying: An Integrative Self-Regulation Approach

Impulsive buying grossly violates the assumptions of homo economicus. A variety of perspectives on impulse buying are presented, which have been put forward in consumer, economic, social, and clinical psychology. These include heuristic information processing, time-inconsistent preferences, personality traits and values, self-identity, emotions, conscious self-control, and compulsive buying. These perspectives may sometimes lead to contradictory or paradoxical findings. For instance, impulse buying is often associated with joy and pleasure but has also been found related to negative emotions and low self-esteem. Our argument is that impulsive buying can be understood in terms of psychological functioning, in particular as a form of self-regulation. Regulatory focus theory is then used to bring the various perspectives together by classifying each as a promotion focus strategy (e.g., seeking pleasure) or a prevention focus strategy (e.g., avoiding feelings of low self-esteem). Finally, the question is discussed whether consumers can and should be protected against impulsivity. Our assertion is that regulation against misleading practices that play on the vulnerabilities of impulsive buyers could be sharpened and that information provision to consumers and retailers aimed at strengthening consumers’ self-regulatory capacities may mitigate adverse consequences of impulse buying.     

Retail buyer segmentation based on the use of assortment decision factors

The purpose of this study is to provide detailed information about apparel retail buyers' buying behaviors based on their use of assortment decision factors. After interviews with five retail buyers and merchandisers, surveys were conducted in Seoul, South Korea for this exploratory study. Apparel retail buyers, merchandisers, and retail store owners, who are involved in assortment planning and buying, participated in the survey (N=378). Results of factor analysis created seven assortment decision factor groups. Based on the factor groups, four cluster groups were the best cluster result: (1) Least Factor Use Buyers, (2) Traditional Factor Use Buyers, (3) Consumer-Oriented Buyers, and (4) Most Factor Use Buyers. Because this study used convenience and snowball sampling methods in one country, the findings cannot be generalized to the general population of apparel retail buyers and merchandisers. However, the study provides researchers with planning factors and cluster information for retail buying behavior. The results offer insight to buyers for their decision-making by organizing assortment decision factors from the most to the least important, especially for younger buyers, who need guidance about assortment planning. Although assortment planning and trade-off decisions are known to be extremely important to retail success (e.g., Kok et al., 2008), no previous study identified a typology of retail buyers on the basis of their consideration of assortment decision factors. This study adds new information and confirms the application of traditional assortment decision factors from 1980s and 1990s to post-2008 era.     

How buyers frame problems: Revisited

This article investigates the following propositions: a useful approach for building an organizational‐buying–behavior taxonomy might begin with classifying how buyers frame purchasing problems followed by how such frames affect subsequent perceptions and actions in the decision process. Unlike previous taxonomies of buying situations, direct questioning of organizational buyers is used to learn: (1) whether or not they identify different categories of buying problems; (2) if they do, what dimensions they use when framing buying problems; and (3) how do such frames influence their choices of value‐added service alternatives offered by suppliers. To test the propositions empirically, supplier choices are modeled with the use of buying‐decision exercises. A key result of this study is that the buyers’ framing of problems affects their preferences for vendor designs of value‐added customer services. Most likely, the framing of buying problems by organizational buyers is layered and more complex than related taxonomies found in the marketing literature. © 2001 John Wiley & Sons, Inc.     

Contingent Self‐Esteem,Self‐Presentational Concerns,and Compulsive Buying

The present study investigates the influence of contingent self‐esteem (CSE) on compulsive buying tendencies. It is argued that this influence is mediated by the self‐presentational concerns of fear of negative evaluation (FNE) and the importance of social identity (SI). These core propositions are tested using a multimethod approach that includes a survey of 402 US adults and two experiments with 160 and 243 subjects, respectively. Survey results find that CSE's impact on compulsive buying is fully mediated by FNE and SI. The two experiments deepen understanding of this effect. Only under high levels of anxiety do those high in CSE exhibit compulsive buying. High CSE leads to higher FNE and SI regardless of anxiety levels, but only at high anxiety levels do FNE and SI lead to compulsive buying. The study's results increase understanding of the role and process by which CSE impacts compulsive buying in adults of all ages.     

Loyalty or lethargy? Keeping sellers committed,not entrenched

While business sellers frequently enjoy long-term relationships with their buyers, not every extended association is based on a genuine sense of customer loyalty. Many organizations remain in relationships with providers for too long; while the seller has stopped providing value, the buyer sticks to the routine. Building from empirical research and theory on buyer-seller relationships, this research extends our understanding of customer complacency and seller entrenchment and introduces the concept of customer lethargy. Synthesizing theory from multiple domains with exploratory interviews conducted with business customers, this article offers insight into the functioning of organizational buying centers, the evolution of business exchanges over time, and how some exchanges can be undermined by various forms of relational dysfunction. I define customer lethargy, explore its root causes and offer business buyers a strategy which aims to help them self-audit their loyalty, avoid complacency and lethargy, and keep sellers committed, not entrenched.     

Product Procurement: A Comparison of Taiwanese and US Retail Companies

The buying function of Taiwanese and US retailers differs in several areas. The consingment method of selling is very prevalent in Taiwan but rarely used in the US. Taiwanense retail buyers were found to have less buying and retail experience than their US counterparts. However, neither buying nor retail experience were found to be significantly retaled to taiwanese buyers' attitudes about product procurement. Significant differences were identified between Taiwanese and US retail buyers' attitudes about country of origin and perceived value of imported merchandise. Taiwanese buyers were found to be more likely to rely on country of origin as an information cue than their US counterparts. On the other hand, as compared to Taiwanese buyers, US buyers were found more likely to percieve foreign apparel as having value than domestically manufactured products.     

“My Fifty Shoes Are All Different!” Exploring,Defining, and Characterizing Acquisitive Buying

Why does someone buy the tenth pair of black shoes or the fourteenth white t‐shirt? Typically, extreme buying is associated with negative feelings and consequences: issues of self‐control, guilt, and financial problems are common among compulsive, impulsive, excessive buying, fixated buying, and hoarding. However, through two studies, the authors describe “acquisitive buyers,” who exhibit an extreme yet controlled acquisition process for items in a chosen product category. In his/her mind, these items are minutely differentiated and enrich the inventory, and there is logical justification that every purchase enhances his/her preparedness for anticipated specific product use occasions. Materialism, positive perfectionism and variety‐seeking in a particular product category are some of the characteristics of these buyers. The studies also help distinguish acquisitive buying from other types of extreme buying and mainstream buying.     

The Relationship Between Consumers’ Tendencies to Buy Compulsively and Their Motivations to Shop and Buy on the Internet

This paper presents the results of a survey of customers of an Internet clothing retailer examining how consumers’ preferences to shop and buy on the Internet rather than at bricks-and-mortar stores differ depending on their compulsive buying tendencies. Using shopping motivations such as seeking product and information variety, the ability to buy unobserved, avoiding social interactions, and experiencing positive feelings during shopping and buying, we find a positive linear relationship between a tendency to buy compulsively and Internet shopping and buying motivations. The research demonstrates that the items used to measure these motivations can also be used to identify buyers who have a tendency to buy compulsively. The paper also offers important retailing, managerial and public policy implications of the findings.     

Buying Behavior of Western European Food Retailers

Abstract

The aim of this study has been to analyze important aspects of buying behavior of food retailers, i.e., trade buyers' evaluation of product and vendor attributes, based on a number of background variables, when choosing a new supplier of an already well-known product category. The study encompassed the retailers' buying behavior for pork, fish and cheese products. By conducting a conjoint analysis in sixteen Western European countries (15 'old' EU Countries (except Luxemburg), plus Norway and Austria), it is demonstrated that the traditional four Ps are losing ground to some previously neglected attributes, and that it is possible to generalise retailers' buying behavior for different food products across countries, retail organizations, and buyers.     

An extended interpersonal influence model of organizational buyer behavior

Traditional views of buyer-seller dyads in organizational buyer behavior (OBB) research often focus on the dyad as a unit. This article considers the purchasing member of the dyad in the dual role of information source and decision influencer embedded in the buying center. The sales representative then is seen to approach the buying center through this liaison, who in many respects performs selling functions within the purchasing organization. A model operationalizing this approach and specific implications for further research are presented.     

Benchmarking buyer behavior towards new brands

New brand launches are risky endeavors for marketers, as many fail to attract a sustainable customer base. This research examines the buying behavior of customers acquired by a new brand and revisits the theoretical norms of the NBD-Dirichlet model benchmarks. Investigating 40 new brand launches in the UK, across a wide range of brand and category conditions, we find that in the first 12 months, new launches have more, but less loyal buyers than expected from NBD-Dirichlet benchmarks, irrespective of type, price point, or the sales gained by the new launch. Further we find exploratory evidence that new buyers of brands have weaker associations than existing buyers. We propose that the combination of the new experience that lacks distinctiveness in encoding means that the experience of buying the new brand creates weaker memory traces in new buyers and that these buyers need additional marketing reinforcement to consolidate the memory of buying the brand to establish the brand in their ongoing repertoire.