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Shopping without pain: Compulsive buying and the effects of credit card availability in Europe and the Far East

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  • Lo, Hui-Yi
  • Harvey, Nigel

Abstract

The financial consequences of compulsive buying are obvious given the large amount of debt reported by compulsive buyers in many studies. Credit cards allow consumers to borrow money very easily in order to satisfy their desire to purchase. In two web-based experiments, we found that compulsive shoppers often overspent and were rarely influenced by price. Their overspending was partially mediated by their excessive use of credit cards. Furthermore, compulsive shoppers were less conscious of their budgets, especially when they used credit cards. They also obtained more pleasure from accomplishing a shopping trip and were more distressed by delayed product delivery than normal shoppers. Finally, compulsive shoppers in Taiwan were more compulsive than those in the United Kingdom: they displayed many of the above symptoms of compulsive buying more saliently.

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  • Lo, Hui-Yi & Harvey, Nigel, 2011. "Shopping without pain: Compulsive buying and the effects of credit card availability in Europe and the Far East," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 79-92, February.
    • Handle: RePEc:eee:joepsy:v:32:y:2011:i:1:p:79-92
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    Cited by:

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    2. Chunchun Chen & Chengchun Li & Guoying Ren, 2022. "The effect of present‐biased preferences on revolving debts: Evidence from urban households in China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2653-2668, July.
    3. Luis E. Arango & Lina Cardona-Sosa, 2019. "Tarjetas de crédito en personas de ingresos medios y bajos en Colombia: ¿qué determina su uso?," Borradores de Economia 1089, Banco de la Republica de Colombia.
    4. Amit Poddar & Cameron Ellis & Timucin Ozcan, 2015. "Imperfect Recall: The Impact of Composite Spending Information Disclosure on Credit Card Spending," Journal of Consumer Policy, Springer, vol. 38(1), pages 93-104, March.
    5. Just, David R. & Jiao, Jie, 2024. "Using Multiple Methods to Improve Validity," 2024 Annual Meeting, July 28-30, New Orleans, LA 345097, Agricultural and Applied Economics Association.
    6. Piotr Tarka & Jasurbek Babaev, 2021. "Methodological insights on measurement and evaluation of compulsive buying behavior among young consumers in Poland: the case of compulsive- and non-compulsive buyers," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(5), pages 1581-1611, October.
    7. Donou-Adonsou, Ficawoyi & Basnet, Hem C., 2019. "Credit card delinquency: How much is the Internet to blame?," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 481-497.
    8. Mittal, Banwari, 2015. "Self-concept clarity: Exploring its role in consumer behavior," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 98-110.
    9. 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.
    10. Ayaz Ali & Chen Li & Ashfaque Hussain & Bakhtawar, 2024. "Hedonic Shopping Motivations and Obsessive–Compulsive Buying on the Internet," Global Business Review, International Management Institute, vol. 25(1), pages 198-215, February.
    11. Ma, Qingguo & He, Yijin & Tan, Yulin & Cheng, Lu & Wang, Manlin, 2024. "Unveiling the Impact of Payment Methods on Consumer Behavior: Insights and Future Directions," OSF Preprints 3fphk, Center for Open Science.
    12. Basnet, Hem C. & Donou-Adonsou, Ficawoyi, 2016. "Internet, consumer spending, and credit card balance: Evidence from US consumers," Review of Financial Economics, Elsevier, vol. 30(C), pages 11-22.
    13. Robert Powell & Anh Do & Denise Gengatharen & Jaime Yong & Rasiah Gengatharen, 2023. "The relationship between responsible financial behaviours and financial wellbeing: The case of buy‐now‐pay‐later," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4431-4451, December.
    14. Danilo Braun Santos & Wesley Mendes-Da-Silva & Jill M. Norvilitis & Philippe Protin & Luciana Onusic, 2022. "Parents Influence Responsible Credit Use in Young Adults: Empirical Evidence from the United States, France, and Brazil," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 368-383, June.
    15. Japutra, Arnold & Ekinci, Yuksel & Simkin, Lyndon, 2022. "Discovering the dark side of brand attachment: Impulsive buying, obsessive-compulsive buying and trash talking," Journal of Business Research, Elsevier, vol. 145(C), pages 442-453.
    16. 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.
    17. Hem C. Basnet & Ficawoyi Donou‐Adonsou, 2016. "Internet, consumer spending, and credit card balance: Evidence from US consumers," Review of Financial Economics, John Wiley & Sons, vol. 30(1), pages 11-22, September.
    18. Arango, Luis E. & Cardona-Sosa, Lina & Pedraza-Jiménez, Nataly, 2021. "The use of credit cards among low- and middle-income individuals in Colombia and the channels of monetary policy," Economic Modelling, Elsevier, vol. 94(C), pages 150-169.
    19. A. Håkansson, 2020. "Role of Gambling in Payback Failure in Consumer Credit—Data from a Large Body of Material Regarding Consumer Loan Recipients in Sweden," IJERPH, MDPI, vol. 17(8), pages 1-18, April.
    20. Atte Oksanen & Mikko Aaltonen & Kati Rantala, 2015. "Social Determinants of Debt Problems in a Nordic Welfare State: a Finnish Register-Based Study," Journal of Consumer Policy, Springer, vol. 38(3), pages 229-246, September.
    21. 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.

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