Institutional Repository | Satya Wacana Christian University: Compulsive Buying Behavior: The Effects of Pocket Money, Peer Acceptance, Money Retention And Its Impact On Borrowing Habit T2 912012034 BAB V
CHAPTER V
CONCLUSIONS AND IMPLICATIONS
5.1. Conclusions
This study had investigated the antecedents of CBB and whether
CBB had any influence on borrowing habit. There were three variables that
had been tested whether they influenced CBB or not, they were pocket
money, peer acceptance, and money retention. This study also investigated
the effect of those three variables to borrowing habit. Pocket money referred
to the amount of money the students received every month from their
parents, while peer acceptance referred to the effort the students made in
order to gain acceptance from their friends. The third independent variable
was money retention, which referred to the degree to which the students
were being careful with money. The last variable used in this study was
borrowing habit, which referred to the tendency to borrow money.
The result of this study showed that money retention was the only
independent varible that had significant effect on both CBB and borrowing
habit. Pocket money, in contrast, did not have significant effect on both.
Although it did not significantly affect borrowing habit, peer acceptance was
found to have significant influence on CBB. As it had been hypotesized,
CBB was proved to increase borrowing habit significantly. The last finding
67
of this study was the mediation effect of CBB on the effect of money
retention to borrowing habit.
Pocket money in this study was found as a factor that did not have
any effect on both CBB and borrowing habit. The result however supported
hypothesis H1 in case the influence was positive but it did not support
hypothesis H4 since the effect of pocket money to borrowing habit was
positive. Here pocket money was bad for increasing CBB but it was also
good for reducing borrowing habit in the other side. However it must be
noted that both effects were not significant.
Even not significant, interestingly the effect of peer acceptance to
borrowing habit was negative. This result was in contrast with the
hypothesis, meaning that even the tendency to be compulsive buyers would
be increased when peer acceptance was increased, in the other side people’s
tendency to have negative borrowing habit would be decreased even not
significant. There seemed to be dualism of peer acceptance but fortunately
the effect of peer acceptance to borrowing habit was not significant.
Therefore here peer acceptance was suggested to be reduced, not to be
increased.
68
5.2. Theoretical Implications
This study proved that pocket money did not significantly influence
CBB, while peer acceptance and money retention significantly affected
CBB. Previous studies that had investigated the effect of pocket money and
income to CBB had shown different results where some found a significant
effect but some did not. The result that pocket money had significant effect
on CBB however did not support the study of Ergin (2010) as well as the
study of Guo and Cai (2011) but it supported the study of Reisch et al.
(2010). Proving that peer acceptance increased CBB, this study had
confirmed the study done by Guo and Cai (2011). The result of the study that
money retention had negative and significant effect on CBB had supported
the result of study done by Li et al. (2009).
This study also found that money retention and CBB had significant
influence on borrowing habit. This study could be considered as one pilot
study that investigated and focused on borrowing habit since there hasn’t
found any previous studies that explored and investigated borrowing habit.
Therefore there’s an opportunity for future studies to investigate more about
borrowing habit.
69
5.3. Applied Implications
Being compulsive buyer is not a good advice, as well as having high
borrowing habit since both were negative. CBB will push people to have
high borrowing habit which will come with some negative consequences.
Beside it may damage people’s relation to their friends or colleagues,
borrowing habit may also lead people to bankruptcy. The study have found
some factors that may help students and people in general to avoid or reduce
the tendency to have both negative behavior and habit.
1.
The study found that higher peer acceptance would lead to higher
tendency of CBB. Therefore students should understand that buying
trendy and high quality products as well as follow their friends to buy
certain products are not the best and easiest ways to get acceptance from
their friends. Students need to avoid these actions and try not to buy
products only to be accepted by the people around since it will lead them
to be compulsive buyers.
2.
This study also have found that money retention significantly reduce
CBB. A form of money retention is make saving, that’s why set aside
money regularly will help students to reduce their spending. Note
everyday’s spending and evaluate which spending is necessary and
which one is not will also help the students to evaluate the use of their
money.
70
5.4. Limitations & Recommendations for Future Research
As well as other studies, this study also had some limitations. These
limitations however were expected to be improved in future studies. The
limitations of this study open opportunities for future studies.
Firstly, pocket money in this study was regular pocket money that
the students received every month. This study did not consider the difference
between the students who lived with their parents and the students who lived
in boarding houses, since their pocket money was quite different in general.
Those who lived with their parents generally received lower pocket money
than those who lived in boarding houses that received medium to high pocket
money. This might be the reason why there wasn’t any significant effect of
pocket money to CBB and borrowing habit. Future studies were expected to
look into this difference, by making different measurement of pocket money
for each group.
Secondly, as it was reported in chapter four, the students involved in
this study were mostly female and mostly came from outside Salatiga. There
were only 36% male students, while only 30.5% of the students that
originally from Salatiga. The likely balance percentage of gender and origin
was also important to be analyzed since these differences might have
consequences to the result. It was because some previous studies found that
peer acceptance and money retention might be differ between male and
71
female and that ethnicity might have effect on both. Therefore, by obtaining
a balance proportion of students in case of gender and origin, it was expected
to obtain a better result.
Future studies are also expected to explore and investigate more
about borrowing habit since there were still limited studies about it. Selfcontrol will be the first variable that may be proposed as a factor that affect
borrowing habit. Baumeister (2002) asserted that self-control is a personality
trait that capable of explaining a variety of individual differences in
behavior, while Tangney et al. (2004) put ‘breaking habit’ as an indicator of
self-control. Besides self-control, demographic factors such as sex, age,
education, and marital status, will be the second suggested variable to be
investigated. As Furnham (1996) noted that people’s habits toward money
were multifaceted with beliefs and behaviours differing according to
demographic variables. The third variable that may be investigated as an
independent variable to borrowing habit is personality. Personality however
in many studies has been proved as a factor that affect behavior and habit
(Mowen & Spears, 1999).
Exploring about borrowing habit in future studies can also be done
by using certain theories. A theory that may be used as a model in examining
borrowing habit would be the sociocultural theory. The theory emphasizes
how behavior is influenced by cultural values, social norms, and social roles.
72
Another theory that can be used to investigate CBB and borrowing habit is
the Theory of Planned Behavior. The theory emphasizes that a behavior is
triggered by the intention to perform the behavior. Moreover, there are three
factors that trigger the intention, they are: the attitude toward the behavior,
subjective norm, and the perceived behavioral control.
73
CONCLUSIONS AND IMPLICATIONS
5.1. Conclusions
This study had investigated the antecedents of CBB and whether
CBB had any influence on borrowing habit. There were three variables that
had been tested whether they influenced CBB or not, they were pocket
money, peer acceptance, and money retention. This study also investigated
the effect of those three variables to borrowing habit. Pocket money referred
to the amount of money the students received every month from their
parents, while peer acceptance referred to the effort the students made in
order to gain acceptance from their friends. The third independent variable
was money retention, which referred to the degree to which the students
were being careful with money. The last variable used in this study was
borrowing habit, which referred to the tendency to borrow money.
The result of this study showed that money retention was the only
independent varible that had significant effect on both CBB and borrowing
habit. Pocket money, in contrast, did not have significant effect on both.
Although it did not significantly affect borrowing habit, peer acceptance was
found to have significant influence on CBB. As it had been hypotesized,
CBB was proved to increase borrowing habit significantly. The last finding
67
of this study was the mediation effect of CBB on the effect of money
retention to borrowing habit.
Pocket money in this study was found as a factor that did not have
any effect on both CBB and borrowing habit. The result however supported
hypothesis H1 in case the influence was positive but it did not support
hypothesis H4 since the effect of pocket money to borrowing habit was
positive. Here pocket money was bad for increasing CBB but it was also
good for reducing borrowing habit in the other side. However it must be
noted that both effects were not significant.
Even not significant, interestingly the effect of peer acceptance to
borrowing habit was negative. This result was in contrast with the
hypothesis, meaning that even the tendency to be compulsive buyers would
be increased when peer acceptance was increased, in the other side people’s
tendency to have negative borrowing habit would be decreased even not
significant. There seemed to be dualism of peer acceptance but fortunately
the effect of peer acceptance to borrowing habit was not significant.
Therefore here peer acceptance was suggested to be reduced, not to be
increased.
68
5.2. Theoretical Implications
This study proved that pocket money did not significantly influence
CBB, while peer acceptance and money retention significantly affected
CBB. Previous studies that had investigated the effect of pocket money and
income to CBB had shown different results where some found a significant
effect but some did not. The result that pocket money had significant effect
on CBB however did not support the study of Ergin (2010) as well as the
study of Guo and Cai (2011) but it supported the study of Reisch et al.
(2010). Proving that peer acceptance increased CBB, this study had
confirmed the study done by Guo and Cai (2011). The result of the study that
money retention had negative and significant effect on CBB had supported
the result of study done by Li et al. (2009).
This study also found that money retention and CBB had significant
influence on borrowing habit. This study could be considered as one pilot
study that investigated and focused on borrowing habit since there hasn’t
found any previous studies that explored and investigated borrowing habit.
Therefore there’s an opportunity for future studies to investigate more about
borrowing habit.
69
5.3. Applied Implications
Being compulsive buyer is not a good advice, as well as having high
borrowing habit since both were negative. CBB will push people to have
high borrowing habit which will come with some negative consequences.
Beside it may damage people’s relation to their friends or colleagues,
borrowing habit may also lead people to bankruptcy. The study have found
some factors that may help students and people in general to avoid or reduce
the tendency to have both negative behavior and habit.
1.
The study found that higher peer acceptance would lead to higher
tendency of CBB. Therefore students should understand that buying
trendy and high quality products as well as follow their friends to buy
certain products are not the best and easiest ways to get acceptance from
their friends. Students need to avoid these actions and try not to buy
products only to be accepted by the people around since it will lead them
to be compulsive buyers.
2.
This study also have found that money retention significantly reduce
CBB. A form of money retention is make saving, that’s why set aside
money regularly will help students to reduce their spending. Note
everyday’s spending and evaluate which spending is necessary and
which one is not will also help the students to evaluate the use of their
money.
70
5.4. Limitations & Recommendations for Future Research
As well as other studies, this study also had some limitations. These
limitations however were expected to be improved in future studies. The
limitations of this study open opportunities for future studies.
Firstly, pocket money in this study was regular pocket money that
the students received every month. This study did not consider the difference
between the students who lived with their parents and the students who lived
in boarding houses, since their pocket money was quite different in general.
Those who lived with their parents generally received lower pocket money
than those who lived in boarding houses that received medium to high pocket
money. This might be the reason why there wasn’t any significant effect of
pocket money to CBB and borrowing habit. Future studies were expected to
look into this difference, by making different measurement of pocket money
for each group.
Secondly, as it was reported in chapter four, the students involved in
this study were mostly female and mostly came from outside Salatiga. There
were only 36% male students, while only 30.5% of the students that
originally from Salatiga. The likely balance percentage of gender and origin
was also important to be analyzed since these differences might have
consequences to the result. It was because some previous studies found that
peer acceptance and money retention might be differ between male and
71
female and that ethnicity might have effect on both. Therefore, by obtaining
a balance proportion of students in case of gender and origin, it was expected
to obtain a better result.
Future studies are also expected to explore and investigate more
about borrowing habit since there were still limited studies about it. Selfcontrol will be the first variable that may be proposed as a factor that affect
borrowing habit. Baumeister (2002) asserted that self-control is a personality
trait that capable of explaining a variety of individual differences in
behavior, while Tangney et al. (2004) put ‘breaking habit’ as an indicator of
self-control. Besides self-control, demographic factors such as sex, age,
education, and marital status, will be the second suggested variable to be
investigated. As Furnham (1996) noted that people’s habits toward money
were multifaceted with beliefs and behaviours differing according to
demographic variables. The third variable that may be investigated as an
independent variable to borrowing habit is personality. Personality however
in many studies has been proved as a factor that affect behavior and habit
(Mowen & Spears, 1999).
Exploring about borrowing habit in future studies can also be done
by using certain theories. A theory that may be used as a model in examining
borrowing habit would be the sociocultural theory. The theory emphasizes
how behavior is influenced by cultural values, social norms, and social roles.
72
Another theory that can be used to investigate CBB and borrowing habit is
the Theory of Planned Behavior. The theory emphasizes that a behavior is
triggered by the intention to perform the behavior. Moreover, there are three
factors that trigger the intention, they are: the attitude toward the behavior,
subjective norm, and the perceived behavioral control.
73