The role of time preference and credit card usage in compulsive buying behaviour

College students represent a lucrative market for businesses selling a wide array of goods and services, including credit. One area of concern regarding credit debt is its association with compulsive buying behaviour. This study analysed compulsive buying behaviour within an economic framework using a college student sample. Data were collected from 7342 students enrolled in a major Midwestern university. Regression analysis revealed that income, rate of time preference, money attitudes, credit card usage and gender were significantly related to compulsive buying. This study provides useful information for developing, or revising, university policies regarding financial education and counselling, as well as curriculum considerations.

[1]  G. Zinkhan,et al.  Diagnostic Screener for Compulsive Buying: Applications to the USA and South Korea , 2003 .

[2]  M. Abdel-Ghany,et al.  Cigarette Smoking in Japan: Examination of Myopic and Rational Models of Addictive Behavior , 2003 .

[3]  James A. Roberts.  Compulsive Buying Among College Students: An Investigation of Its Antedecents, Consequences, and Implications for Public Policy , 1998 .

[4]  Kevin M. Murphy,et al.  A Theory of Rational Addiction , 1988, Journal of Political Economy.

[5]  K. Kwon,et al.  Consumers’ Use of Credit Cards: Store Credit Card Usage as an Alternative Payment and Financing Medium , 2002 .

[6]  Marilyn J. Bruin,et al.  Differences in Spending Habits and Credit Use of College Students , 2000 .

[7]  Ronald J. Faber,et al.  Compulsive Buying: A Phenomenological Exploration , 1989 .

[8]  S. Huston,et al.  Factors Affecting the Probability of Choosing a Risky Diet , 2005 .

[9]  Eli Jones,et al.  Money Attitudes, Credit Card Use, and Compulsive Buying among American College Students. , 2001 .

[10]  Ronald J. Faber,et al.  Compulsive consumption and credit abuse , 1988 .

[11]  S. Lennon,et al.  Compulsive Consumption Tendencies Among Television Shoppers , 2000 .

[12]  Ronald J. Faber,et al.  A Clinical Screener for Compulsive Buying , 1992 .

[13]  Jennifer Yurchisin,et al.  Compulsive Buying Behavior and Its Relationship to Perceived Social Status Associated with Buying, Materialism, Self‐Esteem, and Apparel‐Product Involvement , 2004 .

[14]  J. Mowen,et al.  Understanding Compulsive Buying Among College Students: A Hierarchical Approach , 1999 .

[15]  K. Yamauchi,et al.  The development of a Money Attitude Scale. , 1982, Journal of personality assessment.