IDEAS home Printed from https://ideas.repec.org/a/eee/beexfi/v29y2021ics2214635020303725.html
   My bibliography  Save this article

Antecedents of consumer indebtedness in a majority-Muslim country: Assessing the moderating effects of gender and religiosity using PLS-MGA

Author

Listed:
  • Lebdaoui, Hind
  • Chetioui, Youssef

Abstract

The aim of this research was to investigate the mechanisms that explain why people choose to buy on credit in a majority-Muslim country context. We propose and test a thorough model explaining the key behavioral and demographic factors leading to attitude towards debt, materialism, and consumer indebtedness. Materialism is assessed as a mediator in the effect of attitude towards debt on consumer indebtedness, and the moderating effects of gender and Islamic religiosity were examined and analyzed using Multi-Group analysis (MGA). Based on data collected from 1,294 Moroccan households, we empirically tested the conceptual model using structural equation modeling. This empirical study is the first of its type to address consumer indebtedness in the MENA region. Our findings allow a better comprehension of consumer indebtedness and have a potential to help in promoting enhanced public policies, better promotional campaigns, and fruitful financial education programs for households in similar markets.

Suggested Citation

  • Lebdaoui, Hind & Chetioui, Youssef, 2021. "Antecedents of consumer indebtedness in a majority-Muslim country: Assessing the moderating effects of gender and religiosity using PLS-MGA," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    • Handle: RePEc:eee:beexfi:v:29:y:2021:i:c:s2214635020303725
    DOI: 10.1016/j.jbef.2020.100443
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214635020303725
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbef.2020.100443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gentina, Elodie & Shrum, L. J. & Lowrey, Tina M. & Vitell, Scott J. & Rose, Gregory, 2018. "An Integrative Model of the Influence of Parental and Peer Support on Consumer Ethical Beliefs: The Mediating Role of Self-Esteem, Power, and Materialism," HEC Research Papers Series 1291, HEC Paris.
    2. French, Declan & McKillop, Donal, 2016. "Financial literacy and over-indebtedness in low-income households," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 1-11.
    3. Gregorio Caetano & Miguel Palacios & Harry A. Patrinos, 2019. "Measuring Aversion to Debt: An Experiment Among Student Loan Candidates," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 117-131, March.
    4. Mette, Frederike Monika Budiner & de Matos, Celso Augusto & Rohden, Simoni F. & Ponchio, Mateus Canniatti, 2019. "Explanatory mechanisms of the decision to buy on credit: The role of materialism, impulsivity and financial knowledge," Journal of Behavioral and Experimental Finance, Elsevier, vol. 21(C), pages 15-21.
    5. Richard Disney & John Gathergood, 2011. "Financial Literacy ad Indebtedness: New Evidence for UK Consumers," Discussion Papers 11/05, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    6. Mahfuzur Rahman & Nurul Azma & Md. Abdul Kaium Masud & Yusof Ismail, 2020. "Determinants of Indebtedness: Influence of Behavioral and Demographic Factors," IJFS, MDPI, vol. 8(1), pages 1-14, February.
    7. Belk, Russell W, 1985. "Materialism: Trait Aspects of Living in the Material World," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 265-280, December.
    8. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
    9. Nurul Azma & Mahfuzur Rahman & Adewale Abideen Adeyemi & Muhammad Khalilur Rahman, 2019. "Propensity toward indebtedness: evidence from Malaysia," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 11(2), pages 188-200, June.
    10. Lebdaoui Hind & Wild Joerg, 2016. "Islamic Banking and Financial Development," Review of Middle East Economics and Finance, De Gruyter, vol. 12(2), pages 201-224, August.
    11. Watson, John J., 2003. "The relationship of materialism to spending tendencies, saving, and debt," Journal of Economic Psychology, Elsevier, vol. 24(6), pages 723-739, December.
    12. Nilay Bıçakcıoğlu & İlkin Yaran Ögel & Burcu İlter, 2017. "Brand jealousy and willingness to pay premium: The mediating role of materialism," Journal of Brand Management, Palgrave Macmillan, vol. 24(1), pages 33-48, January.
    13. Gathergood, John, 2012. "Self-control, financial literacy and consumer over-indebtedness," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 590-602.
    14. Hongyan Jiang & Peizhen Sun & Yeyi Liu & Mengjie Pan, 2016. "Gratitude and Late Adolescents’ School Well-being: The Mediating Role of Materialism," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1363-1376, July.
    15. Richins, Marsha L. & Rudmin, Floyd W., 1994. "Materialism and economic psychology," Journal of Economic Psychology, Elsevier, vol. 15(2), pages 217-231, June.
    16. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    17. Siti Nurazira Mohd Daud & Ainulashikin Marzuki & Nursilah Ahmad & Zurina Kefeli, 2019. "Financial Vulnerability and Its Determinants: Survey Evidence from Malaysian Households," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(9), pages 1991-2003, July.
    18. Richins, Marsha L & Dawson, Scott, 1992. "A Consumer Values Orientation for Materialism and Its Measurement: Scale Development and Validation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(3), pages 303-316, December.
    19. repec:zbw:rwirep:0169 is not listed on IDEAS
    20. Elodie Gentina & L. Shrum & Tina Lowrey & Scott Vitell & Gregory Rose, 2018. "An Integrative Model of the Influence of Parental and Peer Support on Consumer Ethical Beliefs: The Mediating Role of Self-Esteem, Power, and Materialism," Working Papers hal-01933852, HAL.
    21. Davies, Emma & Lea, Stephen E. G., 1995. "Student attitudes to student debt," Journal of Economic Psychology, Elsevier, vol. 16(4), pages 663-679, December.
    22. Ottaviani, Cristina & Vandone, Daniela, 2011. "Impulsivity and household indebtedness: Evidence from real life," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 754-761.
    23. Gärling, Tommy & Kirchler, Erich & Lewis, Alan & van Raaij, Fred, 2009. "Psychology, Financial Decision Making, and Financial Crises," Sustainable Investment and Corporate Governance Working Papers 2009/7, Sustainable Investment Research Platform.
    24. Garðarsdóttir, Ragna B. & Dittmar, Helga, 2012. "The relationship of materialism to debt and financial well-being: The case of Iceland’s perceived prosperity," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 471-481.
    25. Livingstone, Sonia M. & Lunt, Peter K., 1992. "Predicting personal debt and debt repayment: Psychological, social and economic determinants," Journal of Economic Psychology, Elsevier, vol. 13(1), pages 111-134, March.
    26. Elodie Gentina & L. J. Shrum & Tina M. Lowrey & Scott J. Vitell & Gregory M. Rose, 2018. "An Integrative Model of the Influence of Parental and Peer Support on Consumer Ethical Beliefs: The Mediating Role of Self-Esteem, Power, and Materialism," Journal of Business Ethics, Springer, vol. 150(4), pages 1173-1186, July.
    27. Flores, Silvia Amélia Mendonça & Vieira, Kelmara Mendes, 2014. "Propensity toward indebtedness: An analysis using behavioral factors," Journal of Behavioral and Experimental Finance, Elsevier, vol. 3(C), pages 1-10.
    28. Elodie Gentina & L. Shrum & Tina Lowrey & Scott Vitell & Gregory Rose, 2018. "An Integrative Model of the Influence of Parental and Peer Support on Consumer Ethical Beliefs: The Mediating Role of Self-Esteem, Power, and Materialism," Post-Print hal-01914742, HAL.
    29. Keese, Matthias, 2010. "Who Feels Constrained by High Debt Burdens? – Subjective vs. Objective Measures of Household Indebtedness," Ruhr Economic Papers 169, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    30. Pham, Thi H. & Yap, Keong & Dowling, Nicki A., 2012. "The impact of financial management practices and financial attitudes on the relationship between materialism and compulsive buying," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 461-470.
    31. Wajiha Haq & Noor Azina Ismail & NurulHuda Mohd Satar, 2018. "Household debt in different age cohorts: A multilevel study," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1455406-145, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hind Lebdaoui & Youssef Chetioui & Elias Guechi, 2021. "The Impact of Behavioral Biases on Investment Performance: Does Financial Literacy Matter?," International Journal of Economics and Financial Issues, Econjournals, vol. 11(3), pages 13-21.
    2. Aswathi Rebecca Asok & Joe Cox, 2024. "Debt Attitude and Debt Accumulation among Rural Poor Households in a Developing Region: A Q-squared Approach," Working Papers in Economics & Finance 2024-03, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
    3. Kumar, Satish & Rao, Sandeep & Goyal, Kirti & Goyal, Nisha, 2022. "Journal of Behavioral and Experimental Finance: A bibliometric overview," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    4. Bikramjit Rishi & Dilip Kumar Mallick & Atul Shiva, 2024. "Examining the dynamics leading towards credit card usage attitude: an empirical investigation using importance performance map analysis," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 79-96, March.
    5. Hind Lebdaoui & Youssef Chetioui & Tahar Harkat, 2024. "Propensity towards Islamic banking among non-users: a mixed-methods analysis," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 45-66, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahfuzur Rahman & Nurul Azma & Md. Abdul Kaium Masud & Yusof Ismail, 2020. "Determinants of Indebtedness: Influence of Behavioral and Demographic Factors," IJFS, MDPI, vol. 8(1), pages 1-14, February.
    2. Gentina, Elodie & Chen, Rui & Yang, Zhiyong, 2021. "Development of theory of mind on online social networks: Evidence from Facebook, Twitter, Instagram, and Snapchat," Journal of Business Research, Elsevier, vol. 124(C), pages 652-666.
    3. Asli Elif Aydin, 2022. "Psychological and demographic factors influencing responsible credit card debt payment," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(1), pages 17-26, March.
    4. Clinton Gudmunson & Sharon Danes, 2011. "Family Financial Socialization: Theory and Critical Review," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 644-667, December.
    5. Michael Goedde-Menke & Carsten Erner & Michael Oberste, 2017. "Towards more sustainable debt attitudes and behaviors: the importance of basic economic skills," Journal of Business Economics, Springer, vol. 87(5), pages 645-668, July.
    6. James W. Peltier & Andrew J. Dahl & John E. Schibrowsky, 2016. "Sequential loss of self-control: Exploring the antecedents and consequences of student credit card debt," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(3), pages 167-181, September.
    7. Kirk Warren Brown & Tim Kasser & Richard M. Ryan & James Konow, 2016. "Materialism, Spending, and Affect: An Event-Sampling Study of Marketplace Behavior and Its Affective Costs," Journal of Happiness Studies, Springer, vol. 17(6), pages 2277-2292, December.
    8. Nepomuceno, Marcelo Vinhal & Laroche, Michel, 2015. "The impact of materialism and anti-consumption lifestyles on personal debt and account balances," Journal of Business Research, Elsevier, vol. 68(3), pages 654-664.
    9. Mainardes, Emerson Wagner & Coutinho, Ananda Raquel Silva & Alves, Helena Maria Batista, 2023. "The influence of the ethics of E-retailers on online customer experience and customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    10. Dick, Christian D. & Jaroszek, Lena M., 2013. "Knowing what not to do: Financial literacy and consumer credit choices," ZEW Discussion Papers 13-027, ZEW - Leibniz Centre for European Economic Research.
    11. Mrdjan Milićev Mladjan & Dušan Zvonkov Marković, 2021. "Generational Responsibility in Consumption as a Response to Global Economic Crises," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    12. Alexander Davidson & Marcelo Vinhal Nepomuceno & Michel Laroche, 2019. "Shame on You: When Materialism Leads to Purchase Intentions Toward Counterfeit Products," Journal of Business Ethics, Springer, vol. 155(2), pages 479-494, March.
    13. Aswathi Rebecca Asok & Joe Cox, 2024. "Debt Attitude and Debt Accumulation among Rural Poor Households in a Developing Region: A Q-squared Approach," Working Papers in Economics & Finance 2024-03, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
    14. Grace B. Yu & Dong-Jin Lee & M. Joseph Sirgy & Michael Bosnjak, 2020. "Household Income, Satisfaction with Standard of Living, and Subjective Well-Being. The Moderating Role of Happiness Materialism," Journal of Happiness Studies, Springer, vol. 21(8), pages 2851-2872, December.
    15. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    16. Donnelly, Grant & Ksendzova, Masha & Howell, Ryan T., 2013. "Sadness, identity, and plastic in over-shopping: The interplay of materialism, poor credit management, and emotional buying motives in predicting compulsive buying," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 113-125.
    17. Yongbo Sun & Jiajia Zhang, 2019. "Acquiescence or Resistance: Group Norms and Self-Interest Motivation in Unethical Consumer Behaviour," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    18. Seuntjens, Terri G. & van de Ven, Niels & Zeelenberg, Marcel & van der Schors, Anna, 2016. "Greed and adolescent financial behavior," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 1-12.
    19. Jaspers, Esther, 2018. "Opening up on consumer materialism," Other publications TiSEM a21cb1c8-5af1-46cc-9ea0-a, Tilburg University, School of Economics and Management.
    20. Hüttel, Alexandra & Balderjahn, Ingo & Hoffmann, Stefan, 2020. "Welfare Beyond Consumption: The Benefits of Having Less," Ecological Economics, Elsevier, vol. 176(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:beexfi:v:29:y:2021:i:c:s2214635020303725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-behavioral-and-experimental-finance .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.