Financial behavior for status seeking purposes of consumers in emerging markets. A case study of suburban Jakarta, Indonesia

A.R.S. Ibn Ali
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A.R.S. Ibn Ali: Graduate School of Economics, Osaka University

No 21-21, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study addresses the influencing factors on financial behavior of consumers in emerging markets. In particular, we examine the role of psychographic variables (i.e., lifestyle, brand loyalty, and personality) and demographic variables (i.e., age, income, education, family size, and occupation) in affecting individual decisions to use several types of consumer loans. A survey was conducted to collect data from 447 Indonesian consumers, and a probit model analysis was used to measure the effect of the variables. The results revealed that the effect of psychographic and demographic variables varies depending on financial product types (i.e., housing loans, car loans, and motorbike loans). Saving is positively associated with the use of car loans, but is negatively associated with the use of motorbike loans. The findings could be useful for marketers of financial products to improve market segmentation and target their offerings more effectively.

Keywords: Microcredit; status consumption; emerging markets; psychographic variables; demographic variables; financial behavior. (search for similar items in EconPapers)
JEL-codes: G21 G41 G51 G53 (search for similar items in EconPapers)
Pages: 35pages
Date: 2021-11
New Economics Papers: this item is included in nep-ban, nep-cwa, nep-fle and nep-sea
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