Executive summary of “Compulsive buying: the role of earlier-in-life events and experiences”

Citation

(2015), "Executive summary of “Compulsive buying: the role of earlier-in-life events and experiences”", Journal of Consumer Marketing, Vol. 32 No. 4. https://doi.org/10.1108/JCM-06-2015-027

Executive summary of “Compulsive buying: the role of earlier-in-life events and experiences”

Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 32, Issue 4

This summary has been provided to allow managers and executives a rapid appreciation of the content of this article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefits of the material present.

Much research has been conducted into compulsive consumer behavior. The damaging financial, psychological and societal consequences which arise are generally attributed to negative experiences or emotions. The recent global economic downturn has also been partly blamed for the surge in uncontrolled spending which is prompted by a severe impulse to purchase.

Depressed and anxious females with poor self-control and low self-esteem are profiled as being the typical compulsive buyer. Such individuals are also materialistic and have inadequate money management skills. Their purchasing tendencies are amplified within societies where consumption is lauded.

To date, attempts to increase understanding of impulsive buying and similar behaviors such as binge eating have largely focused on psychological factors like stress. However, evidence also suggests that biological and social factors might be significant. In particular, advocates of the “life course paradigm” purport that conditions and experiences during adolescence can lead to addictions and compulsive behaviors in later life. Individuals experience “critical life events” which often means having to adjust to different life conditions. How people cope impacts on their socialization, development and growth.

In previous work, three different life course perspectives have been widely deployed. The perspectives are labeled:

1. Stress: The premise here is that psychological equilibrium is disturbed as a result of critical life experiences. People use various “mental and behavioral strategies” as a means of coping with the emotional upheaval. But such efforts can in time become ingrained and evolve into attitudinal and behavioral tendencies toward compulsive purchasing. Family conflicts and break-ups can have a strong negative impact on the emotional well-being of children. Self-indulgent activities like consumption can be used as a means of coping with the insecurity and lowering of self-esteem that arises following stressful events. Left unchecked, such habits often spiral out of control and become compulsive. It has also been found that family discord prompts parents to attempt greater control of their child’s behavior. This is perceived as a reduction in parental support by the child, who then engages in social interaction as a means of alleviating the negative emotional fall-out. Greater interaction with peers about consumption issues is one manifestation of this tendency.

2. Normative: This perspective holds that parents and peers act as socializing forces for young people. Purchasing habits are among the “socially desirable norms” acquired as a result of this process. Peer values and behaviors are especially influential in shaping an adolescent’s belief in consumption norms. Thus, younger individuals can be attracted to any excessive behaviors which their peers exhibit. The increase in peer influence following family disruptions has also been attributed to changes in the normal style of communication within the family. Evidence shows that events like divorce frequently trigger a shift towards “socio-oriented” communication, where children are expected to obey and conform. The lack of autonomy and opportunities for self-expression makes it likelier than adolescents will choose peers rather than parents to confide in.

3. Human capital, which refers to the skills and resources acquired by individuals that help shape their future prospects. Family and work are among the micro-level determinants of human capital that is also shaped at macro-level in such as culture and social class. The possibility of changed processes and outcomes can lead to dysfunctional behaviors. Development of children has been found to suffer, following family break-ups as the impact on their socio-economic status (SES) is usually negative. It has thus been suggested that tendency toward compulsive buying increases when family structures change following such as divorce. Normal socialization processes which deter such developments are affected and result in adolescents being more prone to seeking peer advice. Shifts toward parenting which involves greater control additionally mean that teenagers lack the skills needed to make rational decisions independently. Emotionally driven behaviors like compulsive buying are more common in family environments with an emphasis on control. This contrasts with “concept-oriented communication” that encourages children to form their own opinions. Greater development of human capital results and facilitates more balanced decision making.

These issues are explored further in a study involving 285 undergraduates from universities in Greece. Respondents were aged 18-28 and were asked to recall experiences from their adolescence. Gender representation in the sample was almost equal. Participants were asked to complete a questionnaire containing items relating to compulsive buying behavior, family disruptions, communication with peers, family communication, intangible family resources and SES.

Analysis revealed that compulsive buying behavior is:

• positively influenced by frequency of peer communication and socio-oriented communication; and

• less likely among young adults where concept-oriented family communication was the dominant form during their adolescence.

It was likewise evident that family disruptions have a negative impact on:

• intangible family support, such as time and attention; and

• SES.

Results also indicated that SES positively relates to concept-oriented communication and is negatively associated with socio-oriented communication.

An unanticipated finding was that family disruptions during adolescent years do not always result in compulsive buying behavior where consumers become young adults. Grougiou et al. suggest that this might be down to the strength of family ties within Greek society. The negative fallout from family breakdowns can be alleviated to some extent by the input of extended family members.

Tendency for adolescents from low SES families to discuss consumption with peers was also not indicated in this study. Protection of self-image by not highlighting their deprivation is one possible reason for their reluctance to confide in peers regarding their economic status. However, support was found for the claim that adolescents are prone to emulate the consumption behavior of peers.

That both family communication styles are positively associated with compulsive buying behavior which is deemed highly significant by the authors. They purport that this suggests that frequent buying is linked with social status among families in Greece. In particular, low SES families might view consumption as a means of escaping poverty and acquiring respect. Results here raise the probability that the influence of family communication styles on compulsive buying behavior will vary across cultural contexts due to differing priorities. The degree of materialism that persists is one likely significant factor.

Grougiou et al. recommend moves to discourage compulsive tendencies among young adults. Emphasis on the importance of strong family ties could be supported by school programs advocating sensible consumption patterns. Retailers are advised to act more socially responsible toward the issue. This could take the form of identifying compulsive buyers and excluding them from promotional activities. Refraining from promoting excessive consumption within advertisements targeting adolescents is another approach to adopt. Such moves are not in a firm’s short-term interests, but the public support likely to be gained provides ample compensation. On a macro-level, responsible marketing can help protect society from accessing easy credit and all the ensuing problems which that involves.

Young adult segments other than university students could be targeted with similar research in future. Perspectives might differ, while the expected negative link between family disruptions and SES could be more prevalent among the less educated. Further analysis to examine the possible significance of gender is also warranted, along with comparative explorations within other Mediterranean countries where young adult consumers are enduring similar financial difficulties to their counterparts in Greece.

To read the full article, enter 10.1108/JCM-01-2015-1283 into your search engine.

(A précis of the article “Compulsive buying: the role of earlier-in-life events and experiences”. Supplied by Marketing Consultants for Emerald.)