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Effects of credit card usage on young Brazilians’ compulsive buying

Tania Modesto Veludo-de-Oliveira (based at Department of Marketing, Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas (EAESP-FGV), São Paulo, Brazil)
Marcelo Augusto Falciano (based at Department of Marketing, Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas (EAESP-FGV), São Paulo, Brazil)
Renato Villas Boas Perito (based at Department of Marketing, Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas (EAESP-FGV), São Paulo, Brazil)

Young Consumers

ISSN: 1747-3616

Article publication date: 10 June 2014

1936

Abstract

Purpose

The purpose of this study is to assess the moderating and mediating roles of credit card usage in the relationship between money attitudes (i.e. power-prestige, retention-time, distrust and anxiety) and compulsive buying behaviour.

Design/methodology/approach

The research design comprised a cross-sectional survey and two focus-group interviews. A structured questionnaire was completed by 365 young credit card users in São Paulo in Brazil, and two focus group discussions were conducted comprising six participants each.

Findings

Results showed that misuse of credit cards significantly increased compulsive buying among individuals with high levels of anxiety. Credit card usage partially mediates the relationship between compulsive buying and three variables established in the literature: power-prestige, retention-time and anxiety. Credit card usage did not significantly mediate the effect of distrust (or price sensitivity) on compulsive buying behaviour. Respondents’ price sensitivity did not by itself reduce levels of usage, though it did have an effect on overspending in conjunction with the other factors studied. The key themes that emerged from the focus-group interviews enhanced the survey’s results with greater in-depth understanding.

Originality/value

This study was the first to compare the moderating and mediating effects among the four elements of money attitudes and compulsive buying behaviour. It addresses the issue of financial literacy, money management and overspending – a special concern for today’s emerging economies – in a Brazil, Russia, India and China (BRIC) country.

Keywords

Acknowledgements

The authors thank the Brazilian National Council for Scientific and Technological Development (grant number 125594/2011-9) and the Fundação Getulio Vargas for their financial support.

Citation

Modesto Veludo-de-Oliveira, T., Augusto Falciano, M. and Villas Boas Perito, R. (2014), "Effects of credit card usage on young Brazilians’ compulsive buying", Young Consumers, Vol. 15 No. 2, pp. 111-124. https://doi.org/10.1108/YC-06-2013-00382

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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