Compulsive Buying Behaviour of Credit Card Users and Affecting Factors Such as Financial Knowledge, Prestige and Retention Time: A Cross-sectional Research

2021 ◽  
pp. 097226292098142
Author(s):  
Rahul Khandelwal ◽  
Ashutosh Kolte ◽  
Nitin Veer ◽  
Pratik Sharma
Keyword(s):  
Retention Time ◽  
Financial Stability ◽  
Credit Card ◽  
Compulsive Buying ◽  
Financial Knowledge ◽  
Affecting Factors ◽  
Cross Sectional ◽  
Credit Card Market ◽  
Buying Behaviour ◽  
Credit Card Usage

A leading concern in client and vender relations is that the rising new situation of influence deploying of the credit card market. This situation is accountable for compulsive buying, which has disapprovingly exaggerated consumers, leading to impossible debt levels. Financial counsellors search for why and how individuals get themselves into financial debt. Compulsive buying behaviour and credit card could have a powerful effect on consumers’ financial stability. Further, in place of comprehending credit card usage and compulsive buying, this study correlates them with wealth attitudes such as power-prestige, financial knowledge and retention time. A cross-sectional descriptive research design using convenience sampling and non-probability sampling with quota samples of 313 credit cardholders was surveyed. The outcome showed that those with power-prestige money attitudes are likely to have free usage of credit cards through compulsive spending. Results also showed that those with a higher financial understanding have lower compulsive spending off the credit card.

Effects of credit card usage on young Brazilians’ compulsive buying

2014 ◽  
Vol 15 (2) ◽  
pp. 111-124 ◽  
Author(s):  
Tania Modesto Veludo-de-Oliveira ◽  
Marcelo Augusto Falciano ◽  
Renato Villas Boas Perito
Keyword(s):  
Focus Group ◽  
Credit Card ◽  
Compulsive Buying ◽  
Price Sensitivity ◽  
Focus Group Interviews ◽  
Content Type ◽  
Group Interviews ◽  
Buying Behaviour ◽  
Credit Card Usage ◽  
The Relationship

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.

scholarly journals Credit Card Usage Among College Students in China

2018 ◽  
Vol 29 (2) ◽  
pp. 304-315 ◽  
Author(s):  
Rui Yao ◽  
Xiangyi Meng
Keyword(s):  
College Students ◽  
Credit Card ◽  
Credit Cards ◽  
Common Method ◽  
Financial Knowledge ◽  
Chinese College Students ◽  
Credit History ◽  
Using Data ◽  
High Level ◽  
Credit Card Usage

Credit cards have become a common method of payment for college students in China. It is important that they form good credit card usage behaviors and build a good credit history early in their financial life. Using data collected from 10 universities in China, results of this study found that being financially dependent on their parents is negatively associated with Chinese college students’ ability to pay their credit card bills. The study also found that students with a high level of financial knowledge were less likely to take cash advances on their credit card. Implications for financial educators and parents as well as policymakers were provided.

Overconfidence in the Credit Card Market

2016 ◽  
pp. 150-168
Author(s):  
Susan Kriete-Dodds ◽  
Dietmar Maringer
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
Trading Volume ◽  
Credit Card Debt ◽  
Agent Based ◽  
Credit Card Market ◽  
Income Expectations ◽  
Credit Card Usage ◽  
Payment Credit ◽  
The U.S

High credit card debt default has been symptomatic for the U.S. and other countries in the last decades. Different explanations for this situation exist in the literature. One explanation is overconfidence, which has become a key concept in behavioural economics for explaining anomalies in financial markets such as excessive trading volume. There is also the idea that overconfidence is to blame for high credit card debt. In this paper, an agent-based model is presented that examines the effects of overconfidence on credit card usage. Overconfidence is used here to explain why people who never intend to borrow on their credit card(s) do so anyway. The model contains consumption, two means of payment (credit card and cash), and a distortion to agents' income expectations via overconfidence. It was found that overconfidence leads to more “accidental” borrowing and higher interest rates.

scholarly journals Effect of Marketing Practices on Credit Card Usage: The Mediating Role of Consumer Attitudes

2019 ◽  
Vol 1 (1) ◽  
pp. 16-27
Author(s):  
Dorcas Achieng Kerre
Keyword(s):  
Credit Card ◽  
Consumer Attitudes ◽  
Mediating Effect ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Mediating Role ◽  
Two Factors ◽  
Credit Card Usage ◽  
The Relationship

Credit card use has gained popularity throughout the world.  Banks introduce the credit card service as a way of improving their revenue streams. However, in Kenya, the rate of growth in usage has rather been slow. This research surveyed credit card holders in Nairobi, Kenya with a view to investigate the effect of marketing practices on credit usage and whether consumer attitudes had a mediating effect between the two factors.   A cross-sectional survey was conducted by administering a structured questionnaire to 380 respondents. The study established that marketing practices affect credit card usage and that consumer attitudes did not significantly mediate the relationship between marketing practices and credit card usage. This paper makes a valuable contribution to managerial practice by showing how the elements of the extended marketing mix affect credit card usage. Thus it serves to inform the implementation of marketing strategy in banks by guiding on which aspects of marketing should be emphasised so as to increase credit card usage.

scholarly journals Determinant Factors Influencing Impulse Buying Behavior of Turkish Customers in Supermarket Setting

2018 ◽  
Vol 7 (1) ◽  
pp. 1-10 ◽  
Author(s):  
Aysen Akyuz
Keyword(s):  
Regression Analysis ◽  
Credit Card ◽  
Sales Promotion ◽  
Impulse Buying ◽  
Common Phenomenon ◽  
Affecting Factors ◽  
Buying Behavior ◽  
Independent Variables ◽  
Factors Influencing ◽  
Credit Card Usage

Impulse buying is a common phenomenon of consumption today and its getting great attention from consumer researchers as well as marketers. It is important for companies to have a good understanding of factors triggering impulse buying. The main aim of this study is to identify the determinants influencing Turkish consumers’ impulse buying behavior in supermarkets. 593 surveys were taken into analysis which were collected between the dates 5-10 December, 2017. Regression analysis, t-test and ANOVA test were conducted to test the hypotheses. While some independent variables such as sales promotion and credit card usage found to be the affecting factors of impulse buying; variables such as income level is found to have no relation with impulse purchasing.

scholarly journals Compulsive buying among young adults: a behavioural segmentation

2019 ◽  
Vol 21 (1) ◽  
pp. 57-76 ◽  
Author(s):  
Agata Maccarrone-Eaglen ◽  
Peter Schofield
Keyword(s):  
Credit Card ◽  
Structural Equation ◽  
Compulsive Buying ◽  
Temporal Dimension ◽  
Content Type ◽  
Wide Range ◽  
Compulsive Behaviour ◽  
Product Preferences ◽  
Buying Behaviour ◽  
The Impact

Purpose The purpose of this study is to re-examine the characteristics of compulsive buying behaviour (CBB) based on a new improved screener. The study analyses young compulsive buyer attitudes, decision-making, product preferences, the impact of credit card use and post-purchase perspectives in relation to CBB severity. Design/methodology/approach The study takes a quantitative approach to the analysis of compulsive behaviour among young consumers, using data from a questionnaire survey and a large sample. A wide range of statistical procedures and structural equation modelling are used in the analysis. Findings The segmentation of compulsive buyers, on the basis of disorder severity, provides important insights into the asymmetrical between-group variation in anxiety levels, product preferences, feelings, attitudes and credit card impact and the within-group variability in daily compulsivity patterns and associated shopping behaviour. Research limitations/implications Although the overall used sample size is large, the subdivision of compulsive consumers into mild and severe categories resulted in a relatively small group of severely compulsive buyers; hence, further research is recommended to corroborate the findings from this study. In addition, this research does not address the disorder’s temporal dimension; therefore, future longitudinal studies should be undertaken to analyse the progression and characteristics of the disorder over time. Practical implications The significant differences between mild compulsive buyers and severely compulsive buyers make a significant contribution to counselling practitioners because of the different levels of support that should be offered in relation to the severity of the condition. Originality/value The study compares non-compulsive behaviour with occasionally compulsive, mildly compulsive and severely compulsive consumers using an improved screening tool. It identifies critical criteria that distinguish between mild and severe forms of the disorder, which have hitherto been neglected, yet represent key diagnostic and predictive factors, which can inform both early intervention and our understanding of CBB and its complexity.

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