Correlates of Compulsive Buying

H2: An individual with an internal consumer locus of control orientation will score low on the Credit Card Use Scale. Statistically significant: r = . 280, p<. 001, external consumer locus of control orientation (Busseri, Lefcourt, & Kerton, 1998) is correlated with higher credit card use (Roberts & Jones, 2001). RESULTS To predict compulsive buying behavior, a multiple regression analysis and correlations were performed to examine spending behavior. The independent variables for the multiple regression model consisted of the two factors: compulsive buying and impulsive buying from the Compulsive-Buying Scale (Ridgway et al., 2008), the external weight of locus of control (Busseri, Lefcourt, & Kerton, 1998), the three factors: success, budget, and evil from the Short Money Ethic Scale (Tang, 1995), the three factors: power-prestige, anxiety, and distrust from the Money Attitude Scale (Yamauchi and Templer,1982), the extent of credit misuse measured by the Credit Card Use Scale (Roberts & Jones, 2001), and the four factors: savings and investment behavior, insurance behavior, cash management, and credit management from the Financial Management and Behavior Scale (Dew & Xiao, 2011). The overall model was statistically significant, R = . 688, R2 = . 473, F(14,195) = 12.485, p<. 001. Compulsive buying t(195) = 4.012, p<. 001, budget t(195) = -2.338, p<. 03, credit card misuse t(195) = 3.115, p<. 003, and credit management t(195) = -3.984, p<. 001 each contributed a statistically significant amounts of the variance to the overall equation. Compulsive buyers hold cognitive predispositions to engage in binge shopping behavior, and are likely to act upon those predispositions if extra funds are available via credit. According to the multiple regression analyses, habitual spending behaviors, especially budgeting and credit card use, strongly influence the shopper. Frequent budgeting practice discourages compulsive buying behavior. Alternatively, inexperienced credit card holders are likely to mismanage their credit when shopping and engage in binge purchasing behavior. Additionally, obsessive compulsive buying, as opposed to impulsive buying elicits compulsive buying behavior to a more significant degree. Thus, the conceptualization of compulsive buyers as candidates of ICD was not supported by this study. In terms of consumer locus of control, the correlations demonstrate a statistically significant relationship between perception of control and financial management. An externally oriented consumer locus of control individual is less likely to use good judgment when purchasing with cash or credit, thus acting as a predisposition to compulsive buying behavior. However, an internally oriented individual is more likely to execute responsible spending behavior when a credit card is in hand. Furthermore, an individual labeled as externally oriented will foster cognitive predispositions to compulsive buying by associating wealth with social status or by engaging in shopping behavior as a means to relieve anxiety. REFERENCES Busseri, M. A. , Lefcourt, H. M. , & Kerton, R. R. (1998). Locus of control for consumer o u t comes: Predicting consumer behavior. Journal Of Applied Social Psychology, 28(12), 1 0 6 7 1087. doi:10.1111/j.1559-1816.1998. tb01668.x Dew, J., & Jing Jian, X. (2011). The Financial Management Behavior Scale: Development and Validation. Journal Of Financial Counseling & Planning, 22(1), 43-59. Faber, R. J., & O’Guinn, T. C. (1992). A Clinical Screener for Compulsive Buying. Journal Of Consumer Research, 19(3), 459-469. Mansfield, P. M. , Pinto, M. , & Parente, D. H. (2003). Self-Control and Credit-Card Use among College Students. Psychological Reports, 92(3), 1067-1078. Ridgway, N. M. , Kukar-Kinney, M. , & Monroe, K. B. (2008). An Expanded Conceptualization and a New Measure of Compulsive Buying. Journal Of Consumer Research, 35(4), 622-639. Roberts, J. A. , & Jones, E. (2001). Money Attitudes, Credit Card Use, and Compulsive Buying among American College students.Journal Of Consumer Affairs, 35(2), 213-240. Sang-Hee, S. , & Yun-Jung, C. (2012). A Model of Compulsive Buying: Dysfunctional Beliefs and Self-Regulation of Compulsive Buyers. Social Behavior & Personality: An Inter national Journal, 40(10), 1611-1624. Tang, T. (1995). The development of a short Money Ethic Scale: Attitudes toward money and pay satisfaction revisited. Personality And Individual Differences, 19(6), 809-816. doi:10.1016/S0191-8869(95)00133-6 Yamauchi, K. &Templer, D. (1982). The Development of a Money Attitudes Scale.Journal of Personality Assessment, 46:522-528. Workman L. (2010). Compulsive Buying: A Theoretical Framework. Journal Of Business Inquiry: Research, Education & Application, 9(1), 89. ABSTRACT Compulsive buying is a chronic issue for shoppers exacerbated by a nation obsessed with consumption. To predict compulsive buying behavior, a survey was administered to 283 college students in southern Nevada. The results suggested that the compulsive buyer exhibits am external consumer locus of control and purchases goods with the intent to increase social status or quell anxiety. Given that responsible financial behavior changes as a function of age, college students are particularly vulnerable to compulsive purchasing behavior, as it is exacerbated by irresponsible credit spending behaviors.