Young adults’ borrowing to purchases of desired consumer products related to present‐biased temporal discounting, attitude towards borrowing and financial involvement and knowledge

Tommy Gärling; Patrik Michaelsen; Amelie Gamble

doi:10.1111/ijcs.12552

journal article Dec 10, 2019

Young adults’ borrowing to purchases of desired consumer products related to present‐biased temporal discounting, attitude towards borrowing and financial involvement and knowledge

Tommy Gärling

Patrik Michaelsen Amelie Gamble

International Journal of Consumer Studies Vol. 44 No. 2 pp. 131-139 · Wiley

View at Publisher Save 10.1111/ijcs.12552

Abstract

AbstractThe aim is to investigate how present‐biased temporal discounting caused by feelings of financial deficit, attitude towards borrowing and financial involvement and knowledge determine young adults’ likelihood of borrowing to purchases of desired consumer products. A sample of 273 young adults aged 18–30 years answered an online questionnaire including experimental treatments to induce present‐biased temporal discounting, followed by questions about attitude towards borrowing, financial involvement/knowledge and financial resources. In different treatment conditions, participants rated the likelihood of borrowing to purchases of desired consumer products at prices judged to be unaffordable or to replace purchases of equally expensive products in the future but not immediately. In a control condition, participants rated the likelihood of borrowing to an equally expensive, already purchased product to be paid immediately. A higher likelihood of borrowing to purchases of the desired and already purchased unpaid products was observed, but the difference to the needed products was not statistically significant. Likelihood of borrowing was strongly suppressed by a negative attitude, in all between‐group conditions equally influenced by self‐assessed financial resources but unaffected by financial involvement/knowledge. Both financial involvement/knowledge and a negative attitude decreased choices of months of instalment payments with the consequence that the monthly repayment cost increased.

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Details

Published: Dec 10, 2019
Vol/Issue: 44(2)
Pages: 131-139
License: View

Authors

T

Tommy Gärling

University of Gothenburg Göteborg Sweden

P

Patrik Michaelsen

University of Gothenburg Göteborg Sweden

A

Amelie Gamble

University of Gothenburg Göteborg Sweden

Cite This Article

Tommy Gärling, Patrik Michaelsen, Amelie Gamble (2019). Young adults’ borrowing to purchases of desired consumer products related to present‐biased temporal discounting, attitude towards borrowing and financial involvement and knowledge. International Journal of Consumer Studies, 44(2), 131-139. https://doi.org/10.1111/ijcs.12552

Young adults’ borrowing to purchases of desired consumer products related to present‐biased temporal discounting, attitude towards borrowing and financial involvement and knowledge

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