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Compulsive Buying Behavior and Its Impact on Borrowing Habit

Author

Listed:
  • Supramono

    (Satya Wacana Christian University, Indonesia)

  • Iwi Rambu Kareri

    (Satya Wacana Christian University, Indonesia)

Abstract

The aim of this study is to analyze the effect of pocket money, peer acceptance, and money retention on Compulsive Buying Behavior (CBB) and borrowing habit, as well as the effect of CBB on borrowing habit and the mediating effect of CBB. The samples of this study were the undergraduate students. A total of two hundred questionnaires were obtained and analyzed by using Structural Equation Modelling (SEM). The result of this study showed that peer acceptance and money retention had an impact in determining the level of CBB. Meanwhile, pocket money and peer acceptance did not affect borrowing habit. On the other hand, only money retention that had the direct effect on borrowing habit. Moreover, this study also found that CBB mediated the effect of money retention on borrowing habit.

Suggested Citation

  • Supramono & Iwi Rambu Kareri, 2018. "Compulsive Buying Behavior and Its Impact on Borrowing Habit," Management, University of Primorska, Faculty of Management Koper, vol. 13(1), pages 3-17.
    • Handle: RePEc:mgt:youmng:v:13:y:2018:i:1:p:3-17
    DOI: 10.26493/1854-4231.13.3-17
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    References listed on IDEAS

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    1. O'Guinn, Thomas C & Faber, Ronald J, 1989. "Compulsive Buying: A Phenomenological Exploration," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 147-157, September.
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    3. Sofia N. Andreou, 2011. "The Borrowing Behaviour of Households: Evidence from the Cyprus Family Expenditure Surveys," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 5(2), pages 57-83, December.
    4. P. M. Bentler & Chih-Ping Chou, 1987. "Practical Issues in Structural Modeling," Sociological Methods & Research, , vol. 16(1), pages 78-117, August.
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