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Understanding the Psychological and Financial Correlates for Consumer Credit Use

Year 2024, Volume: 32 Issue: 59, 31 - 48, 31.01.2024

Tuna Cakar , Türkay Şahin , Seyit Ertuğrul , Alperen Sayar

https://doi.org/10.17233/sosyoekonomi.2024.01.02

Abstract

This study investigated the behavioural and cognitive predictors of consumer credit usage to develop a behavioural credit risk assessment procedure for a factoring company. Participants completed surveys measuring personality traits, self-esteem, material and monetary values, compulsive and impulsive buying tendencies, self-control, and impulsiveness. Financial surveys also assessed financial literacy and knowledge of financial concepts. The results indicated that extraversion, conscientiousness, emotional stability, and experiential self-control were significant predictors of consumer credit usage. These findings suggest that a finance company can use these personality traits and financial characteristics to develop a more accurate and effective credit risk assessment procedure, such as psychometric tests.

Keywords

Consumer Credit Behavioural Economics Financial Literacy Consumer Behaviour Factoring

Supporting Institution

MEF Üniversitesi

Project Number

E-47749665-050.01.04-893

Thanks

We appreciate all our participants who had a participation in these surveys on a voluntary basis. Moreover, we would like to thank the CEO of Tam Factoring, Hakan Karamanlı, for the project idea and his effort on the different stages of this project

References

  • Achtziger, A. et al. (2015), “Debt out of control: The links between self-control, compulsive buying, and real debts”, Journal of Economic Psychology, 49, 141-149.
  • Baumeister, R.F. (2002), “Yielding to temptation: Self‐control failure, impulsive purchasing, and consumer behavior”, Journal of Consumer Research, 28(4), 670-676.
  • Biljanovska, N. & S. Palligkinis (2018), “Control thyself: Self-control failure and household wealth”, Journal of Banking & Finance, 92, 280-294.
  • Braswell, M.G. & E. Chernow (N.A.), Consumer credit law & practice in the U.S., United States of America Federal Trade Commission.
  • Brown, S. & K. Taylor (2014), “Household finances and the ‘Big Five’ personality traits”, Journal of Economic Psychology, 45, 197-212.
  • Disney, R.F. & J. Gathergood (2011), “Financial literacy and indebtedness: New evidence for U.K. consumers”, SSRN Electronic Journal, http://dx.doi.org/10.2139/ssrn.1851343
  • Donnelly, G. et al. (2012), “The Big Five personality traits, materialism values, and financial well-being of self-described money managers”, Journal of Economic Psychology, 33(6), 1129-1142.
  • Duyan, V. et al. (2012), “Self-control scale - SCS: Reliability and validity study”, Toplum ve Sosyal Hizmet, 23(1), 19-30.
  • Faber, R.J. & T.C. O’Guinn (1989), “Classifying compulsive consumers: Advances in the development of a diagnostic tool”, Advances in Consumer Research, 16(1), 738-744.
  • Faber, R.J. & T.C. O’Guinn (1992), “A clinical screener for compulsive buying”, Journal of Consumer Research, 19(3), 459-469.
  • Gathergood, J. (2012), “Self-control, financial literacy, and consumer over-indebtedness”, Journal of Economic Psychology, 33(3), 590-602.
  • Goldberg, L.R. (1992), “The development of markers for the Big-Five factor structure”, Psychological Assessment, 4(1), 26-42.
  • Güleç, H. et al. (2008), “Psychometric properties of the Turkish version of the Barratt Impulsiveness Scale-11”, Bulletin of Clinical Psychopharmacology, 18(4), 251-258.
  • Güler, E. & H. Tunahan (2017), “Finansal okuryazarlık: Hane halkı üzerine bir araştırma”, İşletme Bilimi Dergisi, 5(3), 79-104.
  • Howitt, D. & D. Cramer (2017), Understanding statistics in psychology with SPSS, Pearson.
  • Kahneman, D. & A. Tversky (1979), “Prospect theory: An analysis of decision under risk”, Econometrica, 47(2), 263-291.
  • Moeller, F.G. et al. (2001), “Psychiatric aspects of impulsivity”, American Journal of Psychiatry, 158(11), 1783-1793.
  • Okutan, S. et al. (2013), “Keşifsel satın alma eğilimleri ve bu eğilimlerin plansız, kompülsif ve hedonik satın alma tarzlarıyla olan ilişkisinin incelenmesi”, Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 8(3), 117-136.
  • Omar, N.A. et al. (2014), “Compulsive buying and credit card misuse among credit card holders: The roles of self-esteem, materialism, impulsive buying, and budget constraint”, Intangible Capital, 10(1), 52-74.
  • Otero-López, J.M. & E. Villardefrancos (2013), “Five-factor model personality traits, materialism, and excessive buying: A mediational analysis”, Personality and Individual Differences, 54(6), 767-772.
  • Ottaviani, C. & D. Vandone (2011), “Impulsivity and household indebtedness: Evidence from real life”, Journal of Economic Psychology, 32(5), 754-761.
  • Ottaviani, C. & D. Vandone (2017), “Financial literacy, debt burden and impulsivity: A mediation analysis”, Economic Notes, 47(2-3), 439-454.
  • Özgüngör, S. & A.D. Paksu (2017), “Üniversite öğrencilerinde benlik saygısı düzeyine göre akademik başarıyı yordayan değişkenler”, Türk Psikolojik Danışma ve Rehberlik Dergisi, 7(48), 111-125.
  • Palan, K.M. et al. (2011), “Compulsive buying behavior in college students: The mediating role of credit card misuse”, Journal of Marketing Theory and Practice, 19(1), 81-96.
  • Patton, J.H. et al. (1995), “Factor structure of the Barratt Impulsiveness Scale”, Journal of Clinical Psychology, 51(6), 768-774.
  • Pettit, N.C. & N. Sivanathan (2011), “The plastic trap: Self-threat drives credit usage and status consumption”, Social Psychological and Personality Science, 2(2), 146-153.
  • Richins, M.L. & S. Dawson (1992), “A consumer values orientation for materialism and its measurement: Scale development and validation”, Journal of Consumer Research, 19(3), 303-316.
  • Richins, M.L. (2011), “Materialism, transformation expectations, and spending: Implications for credit use”, Journal of Public Policy & Marketing, 30(2), 141-156.
  • Rook, D.W. & R.J. Fisher (1995), “Normative influences on impulsive buying behavior”, Journal of Consumer Research, 22(3), 305-313.
  • Rosenbaum, M. (1980), “A schedule for assessing self-control behaviors: Preliminary findings”, Behavior Therapy, 11(1), 109-121.
  • Rosenbaum, M. (1993), “The three functions of self-control behaviour: regressive, reformative and experiential”, Work & Stress, 7(1), 33-46.
  • Rosenberg, M. (1965), Society and the adolescent self-image, Princeton University Press.
  • Strömbäck, C. et al. (2017), “Does self-control predict financial behavior and financial well-being?”, Journal of Behavioral and Experimental Finance, 14, 30-38.
  • Süer, Ö. et al. (2017), “Impact of money attitude on career goals: A survey on undergraduate students”, Ege Academic Review, 17(4), 527-537.
  • Tatar, A. (2017), “Büyük Beş-50 Kişilik Testinin Türkçeye çevirisi ve Beş Faktör Kişilik Envanteri Kısa Formu ile karşılaştırılması”, Anadolu Psikiyatri Dergisi, 18(1), 51-61.
  • Tukuş, L. (2010), The self-esteem rating scale short form, [Medical Specialization, Kocaeli University], Kocaeli University Academic Data Management System.
  • Ünal, S. et al. (2013), “Materyalizmin statü tüketimini üzerindeki etkisini belirlemeye yönelik bir araştırma”, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 27(2), 43-62.
  • Van Rooij, M.C.J. et al. (2012), “Financial literacy, retirement planning and household wealth”, The Economic Journal, 122(560), 449-478.
  • Wang, J. & J.J. Xiao (2009), “Buying behavior, social support and credit card indebtedness of college students”, International Journal of Consumer Studies, 33(1), 2-10.
  • Wang, L. et al. (2011), “The impact of attitude variables on the credit card debt behavior”, Nankai Business Review International, 2(2), 120-139.
  • Watson, J.J. (2003), “The relationship of materialism to spending tendencies, saving, and debt”, Journal of Economic Psychology, 24(6), 723-739.
  • Wittmann, M. & M.P. Paulus (2008), “Decision making, impulsivity and time perception”, Trends in Cognitive Sciences, 12(1), 7-12.
  • World Bank (2013), Financial Literacy Diagnostic Surveys 2008 and 2009 (Panel), <https://microdata.worldbank.org/index.php/catalog/1028>, 23.08.2021.
  • Yamauchi, K.T. & D.J. Templer (1982), “The development of a Money Attitude Scale”, Journal of Personality Assessment, 46(5), 522-528.

Tüketici Kredisi Kullanımının Altında Yatan Psikolojik ve Finansal Değişkenleri Anlamak

Year 2024, Volume: 32 Issue: 59, 31 - 48, 31.01.2024

Tuna Cakar , Türkay Şahin , Seyit Ertuğrul , Alperen Sayar

https://doi.org/10.17233/sosyoekonomi.2024.01.02

Abstract

Bu çalışma, tüketici kredisi kullanımını etkileyen davranışsal ve bilişsel faktörleri araştıran ilk çalışmalardan biridir. Araştırmanın sonuçları, bir faktöring şirketi için daha doğru ve etkili bir kredi risk değerlendirme prosedürü geliştirmek için kullanılabilecek önemli bilgiler sağlamaktadır. Bu tür bir prosedür, finansal kurumların risklerini azaltmasına ve tüketicilerin finansal refahını artırmasına yardımcı olabilir. Çalışmanın sonuçları ayrıca, tüketici kredisi kullanımını etkileyen faktörler hakkında daha fazla anlayış sağlamaktadır. Bu bilgiler, tüketicilerin daha sorumlu kredi kullanımı yapmalarına yardımcı olacak müdahalelerin geliştirilmesinde kullanılabilir. Sonuç olarak, bu çalışma, tüketici kredisi kullanımı konusunda önemli bir katkı sağlamaktadır. Araştırmanın sonuçları hem finans kurumları hem de tüketiciler için faydalı olabilir.

Keywords

Tüketici Kredisi Finansal Okuryazarlık Tüketici Davranışı Faktoring

Project Number

E-47749665-050.01.04-893

References

  • Achtziger, A. et al. (2015), “Debt out of control: The links between self-control, compulsive buying, and real debts”, Journal of Economic Psychology, 49, 141-149.
  • Baumeister, R.F. (2002), “Yielding to temptation: Self‐control failure, impulsive purchasing, and consumer behavior”, Journal of Consumer Research, 28(4), 670-676.
  • Biljanovska, N. & S. Palligkinis (2018), “Control thyself: Self-control failure and household wealth”, Journal of Banking & Finance, 92, 280-294.
  • Braswell, M.G. & E. Chernow (N.A.), Consumer credit law & practice in the U.S., United States of America Federal Trade Commission.
  • Brown, S. & K. Taylor (2014), “Household finances and the ‘Big Five’ personality traits”, Journal of Economic Psychology, 45, 197-212.
  • Disney, R.F. & J. Gathergood (2011), “Financial literacy and indebtedness: New evidence for U.K. consumers”, SSRN Electronic Journal, http://dx.doi.org/10.2139/ssrn.1851343
  • Donnelly, G. et al. (2012), “The Big Five personality traits, materialism values, and financial well-being of self-described money managers”, Journal of Economic Psychology, 33(6), 1129-1142.
  • Duyan, V. et al. (2012), “Self-control scale - SCS: Reliability and validity study”, Toplum ve Sosyal Hizmet, 23(1), 19-30.
  • Faber, R.J. & T.C. O’Guinn (1989), “Classifying compulsive consumers: Advances in the development of a diagnostic tool”, Advances in Consumer Research, 16(1), 738-744.
  • Faber, R.J. & T.C. O’Guinn (1992), “A clinical screener for compulsive buying”, Journal of Consumer Research, 19(3), 459-469.
  • Gathergood, J. (2012), “Self-control, financial literacy, and consumer over-indebtedness”, Journal of Economic Psychology, 33(3), 590-602.
  • Goldberg, L.R. (1992), “The development of markers for the Big-Five factor structure”, Psychological Assessment, 4(1), 26-42.
  • Güleç, H. et al. (2008), “Psychometric properties of the Turkish version of the Barratt Impulsiveness Scale-11”, Bulletin of Clinical Psychopharmacology, 18(4), 251-258.
  • Güler, E. & H. Tunahan (2017), “Finansal okuryazarlık: Hane halkı üzerine bir araştırma”, İşletme Bilimi Dergisi, 5(3), 79-104.
  • Howitt, D. & D. Cramer (2017), Understanding statistics in psychology with SPSS, Pearson.
  • Kahneman, D. & A. Tversky (1979), “Prospect theory: An analysis of decision under risk”, Econometrica, 47(2), 263-291.
  • Moeller, F.G. et al. (2001), “Psychiatric aspects of impulsivity”, American Journal of Psychiatry, 158(11), 1783-1793.
  • Okutan, S. et al. (2013), “Keşifsel satın alma eğilimleri ve bu eğilimlerin plansız, kompülsif ve hedonik satın alma tarzlarıyla olan ilişkisinin incelenmesi”, Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 8(3), 117-136.
  • Omar, N.A. et al. (2014), “Compulsive buying and credit card misuse among credit card holders: The roles of self-esteem, materialism, impulsive buying, and budget constraint”, Intangible Capital, 10(1), 52-74.
  • Otero-López, J.M. & E. Villardefrancos (2013), “Five-factor model personality traits, materialism, and excessive buying: A mediational analysis”, Personality and Individual Differences, 54(6), 767-772.
  • Ottaviani, C. & D. Vandone (2011), “Impulsivity and household indebtedness: Evidence from real life”, Journal of Economic Psychology, 32(5), 754-761.
  • Ottaviani, C. & D. Vandone (2017), “Financial literacy, debt burden and impulsivity: A mediation analysis”, Economic Notes, 47(2-3), 439-454.
  • Özgüngör, S. & A.D. Paksu (2017), “Üniversite öğrencilerinde benlik saygısı düzeyine göre akademik başarıyı yordayan değişkenler”, Türk Psikolojik Danışma ve Rehberlik Dergisi, 7(48), 111-125.
  • Palan, K.M. et al. (2011), “Compulsive buying behavior in college students: The mediating role of credit card misuse”, Journal of Marketing Theory and Practice, 19(1), 81-96.
  • Patton, J.H. et al. (1995), “Factor structure of the Barratt Impulsiveness Scale”, Journal of Clinical Psychology, 51(6), 768-774.
  • Pettit, N.C. & N. Sivanathan (2011), “The plastic trap: Self-threat drives credit usage and status consumption”, Social Psychological and Personality Science, 2(2), 146-153.
  • Richins, M.L. & S. Dawson (1992), “A consumer values orientation for materialism and its measurement: Scale development and validation”, Journal of Consumer Research, 19(3), 303-316.
  • Richins, M.L. (2011), “Materialism, transformation expectations, and spending: Implications for credit use”, Journal of Public Policy & Marketing, 30(2), 141-156.
  • Rook, D.W. & R.J. Fisher (1995), “Normative influences on impulsive buying behavior”, Journal of Consumer Research, 22(3), 305-313.
  • Rosenbaum, M. (1980), “A schedule for assessing self-control behaviors: Preliminary findings”, Behavior Therapy, 11(1), 109-121.
  • Rosenbaum, M. (1993), “The three functions of self-control behaviour: regressive, reformative and experiential”, Work & Stress, 7(1), 33-46.
  • Rosenberg, M. (1965), Society and the adolescent self-image, Princeton University Press.
  • Strömbäck, C. et al. (2017), “Does self-control predict financial behavior and financial well-being?”, Journal of Behavioral and Experimental Finance, 14, 30-38.
  • Süer, Ö. et al. (2017), “Impact of money attitude on career goals: A survey on undergraduate students”, Ege Academic Review, 17(4), 527-537.
  • Tatar, A. (2017), “Büyük Beş-50 Kişilik Testinin Türkçeye çevirisi ve Beş Faktör Kişilik Envanteri Kısa Formu ile karşılaştırılması”, Anadolu Psikiyatri Dergisi, 18(1), 51-61.
  • Tukuş, L. (2010), The self-esteem rating scale short form, [Medical Specialization, Kocaeli University], Kocaeli University Academic Data Management System.
  • Ünal, S. et al. (2013), “Materyalizmin statü tüketimini üzerindeki etkisini belirlemeye yönelik bir araştırma”, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 27(2), 43-62.
  • Van Rooij, M.C.J. et al. (2012), “Financial literacy, retirement planning and household wealth”, The Economic Journal, 122(560), 449-478.
  • Wang, J. & J.J. Xiao (2009), “Buying behavior, social support and credit card indebtedness of college students”, International Journal of Consumer Studies, 33(1), 2-10.
  • Wang, L. et al. (2011), “The impact of attitude variables on the credit card debt behavior”, Nankai Business Review International, 2(2), 120-139.
  • Watson, J.J. (2003), “The relationship of materialism to spending tendencies, saving, and debt”, Journal of Economic Psychology, 24(6), 723-739.
  • Wittmann, M. & M.P. Paulus (2008), “Decision making, impulsivity and time perception”, Trends in Cognitive Sciences, 12(1), 7-12.
  • World Bank (2013), Financial Literacy Diagnostic Surveys 2008 and 2009 (Panel), <https://microdata.worldbank.org/index.php/catalog/1028>, 23.08.2021.
  • Yamauchi, K.T. & D.J. Templer (1982), “The development of a Money Attitude Scale”, Journal of Personality Assessment, 46(5), 522-528.
There are 44 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Tuna Cakar 0000-0001-8594-7399

Türkay Şahin 0000-0002-7722-7233

Seyit Ertuğrul 0000-0003-0828-7336

Alperen Sayar This is me 0000-0001-6089-2547

Project Number E-47749665-050.01.04-893
Early Pub Date January 26, 2024
Publication Date January 31, 2024
Submission Date November 14, 2021
Published in Issue Year 2024 Volume: 32 Issue: 59

Cite

APA Cakar, T., Şahin, T., Ertuğrul, S., Sayar, A. (2024). Understanding the Psychological and Financial Correlates for Consumer Credit Use. Sosyoekonomi, 32(59), 31-48. https://doi.org/10.17233/sosyoekonomi.2024.01.02
AMA Cakar T, Şahin T, Ertuğrul S, Sayar A. Understanding the Psychological and Financial Correlates for Consumer Credit Use. Sosyoekonomi. January 2024;32(59):31-48. doi:10.17233/sosyoekonomi.2024.01.02
Chicago Cakar, Tuna, Türkay Şahin, Seyit Ertuğrul, and Alperen Sayar. “Understanding the Psychological and Financial Correlates for Consumer Credit Use”. Sosyoekonomi 32, no. 59 (January 2024): 31-48. https://doi.org/10.17233/sosyoekonomi.2024.01.02.
EndNote Cakar T, Şahin T, Ertuğrul S, Sayar A (January 1, 2024) Understanding the Psychological and Financial Correlates for Consumer Credit Use. Sosyoekonomi 32 59 31–48.
IEEE T. Cakar, T. Şahin, S. Ertuğrul, and A. Sayar, “Understanding the Psychological and Financial Correlates for Consumer Credit Use”, Sosyoekonomi, vol. 32, no. 59, pp. 31–48, 2024, doi: 10.17233/sosyoekonomi.2024.01.02.
ISNAD Cakar, Tuna et al. “Understanding the Psychological and Financial Correlates for Consumer Credit Use”. Sosyoekonomi 32/59 (January 2024), 31-48. https://doi.org/10.17233/sosyoekonomi.2024.01.02.
JAMA Cakar T, Şahin T, Ertuğrul S, Sayar A. Understanding the Psychological and Financial Correlates for Consumer Credit Use. Sosyoekonomi. 2024;32:31–48.
MLA Cakar, Tuna et al. “Understanding the Psychological and Financial Correlates for Consumer Credit Use”. Sosyoekonomi, vol. 32, no. 59, 2024, pp. 31-48, doi:10.17233/sosyoekonomi.2024.01.02.
Vancouver Cakar T, Şahin T, Ertuğrul S, Sayar A. Understanding the Psychological and Financial Correlates for Consumer Credit Use. Sosyoekonomi. 2024;32(59):31-48.
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