Determinants of compulsive buying among Jakarta credit card users: PLS-SEM analysis of direct and indirect effects

Payment systems have evolved quite quickly throughout the history of payment systems and the advent of digital technologies. In the digital age, economic expansion in Indonesia has resulted in an increase in the banking population and the growth of cashless payment channels. Surprisingly, despite the introduction of new non-cash payment channels, many consumers continue to use credit cards, particularly in major cities. Much previous research has indicated that the role of credit cards is directly tied to materialism and purchasing behavior. This is especially pertinent to impulsive and compulsive purchase behavior, which credit cards are extremely likely to facilitate. The purpose of this study was to investigate how materialism influences credit card use as well as impulsive and compulsive buying. This study also investigates whether materialism has mediation effects on compulsive buying. Adult credit card users in Jakarta were polled for the data. This quantitative approach, with ۱۹۷ participants employs SEM-PLS and SMART PLS ۳.۰. Materialism influences credit card use and impulsive purchasing. In this instance, impulsive purchases become compulsive. Meanwhile, compulsive buying is caused by internal forces, and credit card use has no impact on it.

Keywords:

compulsive buying , impulsive buying , Credit card , Usage behavior , materialism