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College of Business & Finance

Journal of Business and Socio-economic Development

Antecedents and consequences of compulsive buying behaviour: the moderating effect of financial management

License

Published in Journal of Business and Socio-economic Development. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Abstract

Purpose

This paper investigates the determinants of compulsive buying behaviour (CBB) and ascertains the effect of CBB on the propensity of an individual to be dependent on loans and fall into financial trouble. The study additionally examines the moderating effect of financial management on the hypothesized relationships.

Design/methodology/approach

The survey method of research was adopted using questionnaires as the principal means of data collection. The predicted relationships of the study were tested using the partial least square structural equation modelling technique.

Findings

The authors’ results suggest materialism, socioeconomic status and financial management skills of an individual are significant predictors of CBB. The authors also find CBB to be positively associated with loan dependence and the authors’ analysis suggests financial management skills moderate the hypothesized relationships.

Social implications

Findings of this study suggest buying compulsively increases the risks of over-dependence on loans and can be indirectly associated with the risk of individuals falling into financial trouble.

Originality/value

The findings highlight the adverse effects of CBB on loan dependence and financial trouble and the moderating effect of financial management on the dominant factors that influence CBB.

Further Information

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