Effects of Money Attitudes and Credit card Usage on Young Malaysians’ Compulsive Buying

Abstract :

Although many researchers have investigated the factors that influence compulsive buying behaviour, but little is known about how Malaysian young consumers react to money attitudes and credit card usage. Drawing on the Theory of Planned Behaviour, this study investigates the relationship between the different dimensions of money attitudes (power prestige, anxiety, and distrust) and compulsive buying behaviour in Malaysia, with credit card usage as moderator. The research design used a cross-sectional survey. A structured questionnaire was completed by 142 young credit card users in Malaysia. Hypotheses were tested using structural equation modelling. The findings reveal that anxiety and power prestige have a significant effect on consumers’ compulsive buying behaviour and that credit card usage strengthens the effect between anxiety, power prestige and compulsive buying behaviour. Distrust was found to be insignificant. This suggests that money attitudes are critical in determining the behavioural results of credit card abuse and compulsive buying behaviour. This study has also addressed the issue of overspending, money management, financial literacy and credit card misuse in emerging economies, especially among young Malaysian consumers.