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Article
Publication date: 3 July 2017

Yam B. Limbu

By applying the information-motivation-behavioral (IMB) skills model, the purpose of this paper is to examine the direct and indirect effects of credit card knowledge and…

Abstract

Purpose

By applying the information-motivation-behavioral (IMB) skills model, the purpose of this paper is to examine the direct and indirect effects of credit card knowledge and social motivation on credit card misuse behavior mediated through credit card self-efficacy among college students in the USA.

Design/methodology/approach

A sample of 427 participants was surveyed. Structural equation modeling was used to assess the hypothesized model.

Findings

Credit card knowledge and social motivation were inversely associated with credit card misuse mediated through credit card self-efficacy. Credit card knowledge had a direct negative relationship with credit card misuse. The results confirm the theoretical relationships in the IMB model.

Practical implications

The results offer several implications for bank marketers and policy makers. The IMB model could be used to predict credit card abuse among college students; credit card literacy programs should incorporate strategies that can enhance students’ knowledge, social motivation, and behavioral skills with regard to responsible use of credit cards.

Originality/value

This study is unique in that it applies the IMB model to examine predictors of credit card misuse among college students.

Details

International Journal of Bank Marketing, vol. 35 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

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Article
Publication date: 12 April 2019

Rozaimah Zainudin, Nurul Shahnaz Mahdzan and Ming-Yee Yeap

The concept of “buy now pay later” leads Malaysian Generation Y (Gen Y) to excessively use their credit cards for spending. To gauge the extent of this worrisome scenario…

Abstract

Purpose

The concept of “buy now pay later” leads Malaysian Generation Y (Gen Y) to excessively use their credit cards for spending. To gauge the extent of this worrisome scenario, the purpose of this paper is to attempt to investigate the factors, including credit attitudes, knowledge on credit card, materialism, social norm and self-efficacy, that influence credit card misuse amongst Gen Y in Malaysia.

Design/methodology/approach

The authors have collected responses from a total of 501 respondents in two urban areas in Malaysia and estimated six multiple regression models to test five hypotheses.

Findings

The results suggest that credit card knowledge and self-efficacy are negatively related to credit card misuse amongst Gen Y in Malaysia. In contrast, positive relationships were found to exist between credit card attitudes, materialism and social norm and the dependent variable.

Research limitations/implications

In this study, the authors limit the data collection to the two biggest urban areas in Malaysia, namely, Klang Valley and Ipoh.

Practical implications

For the regulator’s perspective, the results can be used to understand the alarming indebtedness behaviour amongst working members of Gen Y and outline appropriate and effective policies to reduce their serious indebtedness. Financial service providers, however, can collaborate with regulators to curb credit card misuse amongst Gen Y, so that the latter can avoid high bad debt from line of credit facilities and bankruptcy.

Originality/value

The study’s findings will further enrich the existing literature on the factors affecting the credit card misuse, especially for the unique Gen Y cohort in Malaysia.

Details

International Journal of Bank Marketing, vol. 37 no. 5
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 23 November 2010

Joyce K.H. Nga, Lisa H.L. Yong and Rathakrishnan D. Sellappan

Credit card bankruptcies in Malaysia trebled from 2006 to 2007 and study loan defaults increased by 103 percent in the same period. In response to this, the paper aims to…

Abstract

Purpose

Credit card bankruptcies in Malaysia trebled from 2006 to 2007 and study loan defaults increased by 103 percent in the same period. In response to this, the paper aims to investigate the level of general financial and product awareness among young adults. The two research questions addressed are: how do demographic factors (age, gender and education level) influence the general financial awareness, and whether undertaking a business degree promotes greater financial and product awareness amongst youth today.

Design/methodology/approach

A survey method was employed using a sample of 280 students at a private higher education institution in Subang Jaya, Malaysia. The study also develops valid and reliable scales for general financial awareness and financial product awareness. Hypothesis testing was conducted using multivariate analysis of covariance.

Findings

The findings of the study revealed that the level of education and majors influence general and financial product awareness among youths. Also, males were found to have higher levels of financial awareness compared to females.

Research limitations/implications

Future research is required to investigate whether family background has an impact on personal finance knowledge.

Practical implications

By identifying the specific areas where financial product awareness may be lacking, the paper may assist educators, regulators and financial institutions to design financial planning courses in helping youths to achieve greater financial freedom and be better equipped for retirement.

Originality/value

This paper also develops reliable and valid measurement scales for both general and financial product awareness which were not evident in previous studies. The paper's findings may prompt the educational institution and government authorities to be concerted in promoting financial planning awareness nationwide.

Details

Young Consumers, vol. 11 no. 4
Type: Research Article
ISSN: 1747-3616

Keywords

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Article
Publication date: 27 July 2018

Eugene Cheng-Xi Aw, Jun-Hwa Cheah, Siew Imm Ng and Murali Sambasivan

The purpose of this study is to examine compulsive buying and its interrelationships with careful spending, loan dependence and financial trouble. This study also aims to…

Abstract

Purpose

The purpose of this study is to examine compulsive buying and its interrelationships with careful spending, loan dependence and financial trouble. This study also aims to investigate the moderating role of gender.

Design/methodology/approach

A questionnaire-based survey was conducted. Two hundred and seven responses were collected using purposive sampling technique. Partial least square–structural equation modelling was performed to analyze the proposed hypotheses.

Findings

The salient findings are (1) careful spending negatively influences compulsive buying, (2) compulsive buying positively influences loan dependence and financial trouble, (3) loan dependence positively influences financial trouble, (4) the relationships between careful spending and compulsive buying, and between loan dependence and financial trouble differ between male and female consumers, (5) there is a sequential mediation effect between careful spending and financial trouble and (6) there are gender differences between careful spending and compulsive buying and between loan dependence and financial trouble.

Research limitations/implications

This study empirically validates the role of short-term money attitude, conceptualized as careful spending in compulsive buying context and how it attenuates the consequences of compulsive buying.

Originality/value

This study explains the serial mechanism in which careful spending can be used to counteract financial trouble of youngsters, and further looks into the differences of relationships in term of gender through multi-group analysis.

Details

Young Consumers, vol. 19 no. 3
Type: Research Article
ISSN: 1747-3616

Keywords

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Article
Publication date: 1 June 2021

Ümmühan Mutlu and Gökhan Özer

This study examines the effects of variables such as financial literacy and locus of control on the financial behavior of individual investors. Additionally, this article…

Abstract

Purpose

This study examines the effects of variables such as financial literacy and locus of control on the financial behavior of individual investors. Additionally, this article aims to reveal the moderator effect of financial literacy on locus of control and financial behavior.

Design/methodology/approach

Responses were collected from a questionnaire given to a convenience sample of 1,347 individual investors. Exploratory factor analysis (EFA), which reveals the factor structure of the scale, was used at the beginning of the study, and then confirmatory factor analysis (CFA) was performed to confirm this new factor structure. Hypothetical relationships were examined using structural equation modeling.

Findings

The study provides statistical support for the validity and reliability of the scales. The statistical results of the analysis reveal that financial literacy and locus of control have a positive effect on financial behavior. Moreover, the authors prove that financial literacy changes the relationship between internal locus of control and financial behavior. In conclusion, financial literacy plays a significant role as a moderator variable that interacts with locus of control.

Originality/value

The findings of the research are important in demonstrating empirical evidence for the theoretical correlations. In support of the current literature, this study has confirmed the positive effects of internal locus of control and financial literacy on the financial behavior of individual investors. In addition, it has been determined that the relationship between an individual's financial behavior and internal locus of control varies according to their level of financial literacy.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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Article
Publication date: 20 April 2015

Jakob Cakarnis and Steve Peter D'Alessandro

This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and…

Abstract

Purpose

This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card.

Design/methodology/approach

This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals.

Findings

In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse.

Originality/value

This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

Details

Young Consumers, vol. 16 no. 1
Type: Research Article
ISSN: 1747-3616

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Article
Publication date: 1 August 2004

Karin Braunsberger, Laurie A. Lucas and Dave Roach

The Federal Reserve Board has recently adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The first study investigates how…

Abstract

The Federal Reserve Board has recently adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The first study investigates how vulnerable consumers (i.e. college students) might respond to the revised credit card disclosure requirements and investigates credit card knowledge of college students. The second and third studies examine external validity issues, that is, whether urban college students are more knowledgeable about credit cards than rural students, and whether adult populations are more knowledgeable than student populations. These latter studies further investigate the relationships among objective knowledge, subjective knowledge and product usage. The results show that consumers in general are not very knowledgeable about credit cards. In order to avoid government regulation of the industry, it is recommended that credit card issuers become involved in educating consumers.

Details

Journal of Services Marketing, vol. 18 no. 5
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 1 June 2002

George K. Chacko

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade…

Abstract

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange for Auto Parts procurement by GM, Ford, Daimler‐Chrysler and Renault‐Nissan. Provides many case studies with regards to the adoption of technology and describes seven chief technology officer characteristics. Discusses common errors when companies invest in technology and considers the probabilities of success. Provides 175 questions and answers to reinforce the concepts introduced. States that this substantial journal is aimed primarily at the present and potential chief technology officer to assist their survival and success in national and international markets.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 14 no. 2/3
Type: Research Article
ISSN: 1355-5855

Keywords

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Article
Publication date: 1 December 2000

Jacquelyn Warwick and Phylis Mansfield

Given the proliferation of the credit card industry in today’s US households, and the aggressive promotional tactics employed to get college students to sign on as…

Abstract

Given the proliferation of the credit card industry in today’s US households, and the aggressive promotional tactics employed to get college students to sign on as customers, this exploratory study takes a look at the credit card activity of college students at one Midwestern campus. The majority of students surveyed did not report knowledge of their credit card interest rate, although approximately half did report knowing their credit balance and credit limit. Students appear to have a realistic attitude toward the use of credit cards.

Details

Journal of Consumer Marketing, vol. 17 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

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Article
Publication date: 1 May 2005

Karin Braunsberger, Laurie A. Lucas and Dave Roach

In the USA, the Federal Reserve Board (FRB) has adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The present study aims to…

Abstract

Purpose

In the USA, the Federal Reserve Board (FRB) has adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The present study aims to use the elaboration likelihood model to explore how consumers might respond to the revised credit card disclosure requirements, focusing specifically on college students.

Design/methodology/approach

Each subject was randomly assigned to one of two financial scenarios and asked to choose, among competing offers, the credit card that presented the “best” match to the scenario. Subsequently, all subjects completed measures designed to test hypothesized relationships within the framework of the elaboration likelihood model.

Findings

College students possess a fairly low level of knowledge of credit cards and thus are not very well equipped to make educated choices concerning such cards.

Research limitations/implications

The use of a rural student sample is a limitation and future research should investigate different populations, including those in urban and international markets.

Practical implications

Since the variable APR information appears to distract consumers from taking into account other important cost information, credit card issuers should develop solicitations that aid consumers in making knowledgeable choices.

Originality/value

The present research is the first to investigate the impact of the FRB's recently adopted final rule amending the Truth in Lending Act's Regulation Z. The findings should thus be of interest to regulators, credit card issuers, and consumer advocates.

Details

International Journal of Bank Marketing, vol. 23 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

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