 Explanatory mechanisms of the decision to buy on credit: The role of materialism, impulsivity and financial knowledgeFrederike Monika Budiner Mette, Celso Augusto de Matos, Simoni F. Rohden and Mateus Canniatti Ponchio Journal of Behavioral and Experimental Finance, 2019, vol. 21, issue C, 15-21 Abstract: The purpose of this research was to investigate the mechanisms that explain why people choose to buy on credit. The individual characteristics of materialism, impulsivity and financial knowledge were analysed in order to better understand the relationship that exists between payment conditions and the decision to purchase on credit. Two experiments with a total sample of 409 respondents were conducted. Our analyses reveal that the offer of a discount for payment in cash has a negative effect on the propensity to buy on credit, regardless of whether interest was charged or not. Personal characteristics also play an important moderating role: individuals with high levels of materialism and impulsivity tend to buy on credit more. When the type of product is hedonic as opposed to utilitarian, there are larger variations in the average intention to buy on credit. Keywords: Decision-making; Purchase on credit; Materialism; Impulsivity; Financial knowledge; Experiment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:21:y:2019:i:c:p:15-21 DOI: 10.1016/j.jbef.2018.10.002 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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