DOES MILLENNIAL RATIONAL IN DECISION MAKING? THE IMPACT OF SELF-CONTROL AND E-MONEY ON COMPULSIVE BUYING: REFERENCE GROUP AS MODERATING VARIABLE

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JAM

J u r n a l A p l i k a s i M a n a j e m e n J o u r n a l o f A p p l i e d M a n a g e m e n t

V o l u m e 2 1 I s s u e 1 M a r c h 2 0 2 3

2 1 | 1 | 2 0 2 3

R e c e i v e d A u g u s t ‘ 2 2 R e v i s e d O c t o b e r ‘ 2 2 F e b r u a r y ‘ 2 2 A c c e p t e d M a rc h ‘ 2 3

DOES MILLENNIAL RATIONAL IN DECISION MAKING? THE IMPACT OF SELF-CONTROL

AND E-MONEY ON COMPULSIVE BUYING:

REFERENCE GROUP AS MODERATING VARIABLE

Zainur Rahman

Department of Management, Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia

Awan Santosa Sumiyarsih Rina Dwiarti

Department of Management, Faculty of Economics, Universitas Mercu Buana Yogyakarta, Indonesia

Norlaile Salleh Huddin

Universitas Pendidikan Sultan Idris, Tanjong Malim, Perak, Malaysia

Abstract: The millennial generation is known as the sandwich generation, where they sometimes experience various problems in making decisions, including purchasing goods or services. These problems are essential to study regarding decision-making, especially in the digital era. There are various con- veniences in conducting transactions, such as e-money. The millennial generation tends to compulsive buying for goods or services with various factors, both due to individual internal and external factors. This study aims to examine the effect of self-control and e-money on compulsive buying, which a reference group moderates. The sampling technique used is purposive sampling with a total of 249 respondents, where the sample criteria are the younger generation with e-money applications. The data analysis technique uses SEM-PLS to test the hypothesis. The results showed that self-control weakened compulsive buying due to the individual's ability to control himself in shopping. E-money usage has a positive effect on compulsive buying because of easier transactions. The novelty of this study used the reference group as a moderating variable, where the results of the reference group strengthen the influence of self- control on compulsive buying because individuals get positive information and suggestion from the group. Finally, the reference group can weaken the influence of e-money on compulsive buying. Although there is convenience in transacting, the presence of information from the group can prevent them from compulsive buying.

Keywords: Compulsive Buying, E-Money, Self-Control, Reference Group

CITATION

Rahman, Z., Santosa, A., Sumiyarsih, Dwiarti, R. and Huddin, N. S. 2023. Does Millennial Rational in Decision Making? The Impact of Self-Control and E-Money on Compulsive Buying: Reference Group as Moderating Variable. Jurnal Aplikasi Manajemen, Volume 21, Issue 1, Pages 14-24. DOI:

http://dx.doi.org/10.21776/ub.jam.2022.021.1.02.

I N D E X E D I N

D O A J - D i r e c t o r y o f O p e n A c c e s s J o u r n a l s

A C I - A S E A N C i t a t i o n I n d e x S I N T A - S c i e n c e a n d T e c h n o l o g y I n d e x

D i m e n s i o n s G o o g l e S c h o l a r R e s e a c h G a t e G a r u d a

I P I - I n d o n e s i a n P u b l i c a t i o n I n d e x

I n d o n e s i a n O N E S e a r c h

C O R R E S P O ND I N G A U T H O R

Z a i n u r R a h m a n

D e p a r t m e n t o f M a n a g e m e n t , F a c u l t y o f E c o n o m i c s a n d B u s i n e s s ,

U n i v e r s i t a s N e g e r i S u r a b a y a , I n d o n e s i a

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OPEN ACCESS

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15 INTRODUCTION

Everyone is very closely related to the process of buying goods or services, both secondary and primary needs, in which buying goods or services is not planned because of activities and even occurs repeatedly. Ditmmar (2005) stated that compulsive buying is an abnormal form of shopping with four disorders associated with buying behavi- or: impulse control, compulsiveness, addiction, and depression. Thus, it is essential to understand anddesigninterventionmechanismstocontroland manage behavior (Gupta, 2013). Compulsive buying behavior can occur in all ages, from teenagers to adults. Along with technological development, buying behavior is more accessible because it is facilitated using smartphones and electronic payments (E-money). E-money is used by transferring funds electronically at the time of payment by directly reducing the value of E-money on applicati- on media that has been used (Usman, 2017). The existence of E-money makes people very vulnera- ble to consumptive behavior and creates compulsive buying behavior, especially among teenagers.

Spending with cash is considered more con- trollable than spending using electronic money.

According to Runnermark et al. (2015), individuals' desire to make purchases with E-money incre- ased by 22-54% compared to cash. Traut-Matta- usch et al. (2008) argued that consumers are often irrational in making decisions and are often influenced by feelings and sentiments, motives, attitudes, subjective biases, and heuristics in information processing, as well as social influences from family or peer groups.

Impulsebuyingisclosetopurchasinggoods that improve the one's appearance quality and individual drive, such as overcoming anxiety and depression (Dittmar and Drury, 2000). Self-control is an individual's ability to modify behavior, the ability to manage information, and the individual's ability to choose an action. Individuals with low self-control are very impulsive, respond quic- kly to environmental stimulation, seek job satisfaction, andprefersimpletasks(Kimetal., 2017).

Mulyono and Rusdarti (2020) found that people with high self-control will be able to regulate their actions and make them not consumptive.

Yurchisin and Johnson (2004) found that compulsive buying and perceived social status have a clo- se definition to materialism and self-esteem by a

respected product. Tangney et al. (2004) found that self-control and compulsive buying had a significant negative effect. The findings are still inconsistent, which becomes a gap for further study.

Inaddition,invariousstudies,noonehasin- cluded the Reference group variable in making a decision. Yadav et al. (2013) suggested that the social atmosphere is one of the determinant factors and directs a person to behave. A person can also consume an item or a service caused by the Refe- rence Group (Hoonsopon, 2016). Based on Social Learning Theory developed by Bandura (1977), individuals canaddinsightthroughadviceorinfor- mationfrom others. That is, the effect of self-control and E-money on compulsive buying can change because other factors (reference group) have not been studied in more detail. The previous studies showed inconsistent results regarding the effect of self-control on compulsive buying. In addition,e-moneyhasalsobecomeadebateinresearch from its use, so it has become one of the triggers for compulsive buying. The result of previous studies is still a question mark, which is possible other variables can affect the relationship between variables. The novelty of this study is to use group referenceasamoderatingvariablebecausethemil- lennial generation is identical in the togetherness between them, so the role of group members can also influence their decisions. Based on the literature and practice gap, this study tests the effect of self-control and E-money on compulsive buying.

Then, try the reference group's role in moderating the effect of self-control and E-money on compulsive buying.

LITERATURE REVIEW Self-Control

The concept of self-control has been studied in organizational literature and practice. Self-control refers to the capacity to alter one's behavior, especially to align with standards such as ideals, values, morals, andsocialexpectations, andtosup- port the pursuit of long-term goals (Baumeister a- nd Tierney, 2012). De Ridder et al. (2012) defined self-control as an individual's ability to regulate the tendencies to respond to situations that inhibit undesirablebehaviorsandpromotelong-terminte- rests. Self-control has various impacts on an individual in social life. Pitesa et al. (2013) stated that individual differences in self-control had been at-

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tributed to personal commitment and beliefs, alt- ruism, or moral orientation. Individual self-control leadstocommitment, personalawareness, andmo- ral standards.

E-Money

Many people use electronic money (e-money) to make them more efficient. E-money is an electronic store of monetary value on a technological device that may be widely used for making payments to undertakings other than the issuer wi- thout necessarily involving bank accounts in the transaction but acting as a prepaid bearer instrument (European Central Bank, 2001). The development of e-money gives rise to essential differences both in the character of e-money and in the transactions where electronic money can be used. Soft- ware-based electronic money is often operated by non-banking institutions (Cohen, 2001). Electro- nic money is not instantiated in the technical devi- cesorthenetworksfacilitatingcirculation. Instead,

the electronic pulses, if anything, give e-money a physical identity (Henderson, 1987).

Compulsive Buying

Compulsive buying refers to a chronic, re- petitive, and problematic behavior in which individuals lose control of their impulsive buying habits (Faber and O'Guinn, 1992). Youth's compulsive buying behavior, particularly those with a poor- ly defined sense of self-identity, may push them to buy more (Reeves et al., 2012). Compulsive buying refers to an individual losing control in purchasing goods or services. Social psychology defined compulsive buying as a compensatory behavior to counteract mood and identity problems through purchasing material products (Dittmar, 2005; El- liot, 1994).

Reference Group

Reference groups have an essential role in consumer behavior studies. The reference group is actual or imaginary institution, individual, or group conceived of having significant relevance to an individual's evaluations, aspirations, or behavior (Lessig and Park, 1978). Kotler (2003) argued that person's reference groups consist of all the groups that directly (face-to-face) or indirectly influence the person's attitudes or behavior. Besides that, Sc- hiffman and Kanuk (2004) defined reference gro-

up as any person or group that serves as a point of comparison (or reference) for an individual in for- ming either general or specific values, attitudes, or specific guide for behavior. They pointed out that other references can influence individuals to make decisions. Blackwell et al. (2001) divided three primary influences that affect an individual's decisions, behaviors, purchases, and lifestyles. Referen- ce groups also have a personal impact on making the decision, even for an individual lifestyle.

HYPOTHESIS DEVELOPMENT Self-Control and Compulsive Buying

According to Edwards (1993), compulsive buyingisanintolerable, uncontrolledbuyingbeha- vior that occurs repeatedly and is unplanned. Mo- wen and Minor (2002) defined compulsive buying as a response to an uncontrollable purchase of a product or service, use, or activity that guides a person to engage repeatedly, eventually leading to deviantordetrimentalbehavior. Thus, onethatcan overcome the compulsive buying behavior is self- control. According to Rosenbaum (1993), three functions of self-control behavior are repressive, reformative, and experiential. When someone has strong self-control, it can support someone to ado- pt bad behavior. Self-control is the ability to break bad habits to overcome impulsive behavior. Bau- meister (2002) stated that self-control changes a person's dominant response and interferes with unwanted behavior. This self-control scale is measured by the main factors, namely controlling tho- ughts, emotions, performance, and impulsivity. A high level of self-control will reduce compulsive buying behavior because the individuals have high self-control. Following the research conducted by Otero-LópezandVillardefrancosPol(2013)found that individuals who tend to compulsive buying have low self-control in two aspects: moral obliga- tion and self-discipline. According to DiClemente and Hantula (2000), self-control will reduce compulsive behavior. Thus, the self-control can reduce compulsive behavior.

H1 : Self-control has a negative effect on compul- sive buying.

E-money and Compulsive Buying

E-money is a form of electronic media that canbeusedforpaymentsortransactions. Theexis- tence of the E-money makes it easier for people to

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17 transact and influences higher consumer behavior.

E-money increases compulsive buying behavior due to convenience when transacting. Feinberg (1986) stated that if someone has a credit card, it will be easier to make a quick decision to buy and spendmoremoney. Paymentsusingelectronicmo- ney will make it easier for the consumers to shop.

It will increase the possibility of reduced self-control in shopping so it will increase the occurrence of compulsive buying. Palan et al. (2011) showed that the consumers who behave compulsively have non-cash payments like E-money. Wibawa et al.

(2020) found that non-cash payments positively affect compulsive behavior because non-cash payments have the opportunity for consumers to ful- fill their shopping satisfaction.

H2 : E-money has a positive effect on compulsive buying.

The Moderate Role of Reference Group In the social environment, a person's behavior can be influenced by others, individually and in groups. Yadav et al. (2013) emphasize that individuals tend to be affected by a group of commu- nities, one of which is buying or consuming goods or services. A person can also consume goods or services caused by the reference group (Hoonso- pon, 2016). Childers and Rao (1992) revealed that reference groups have various characteristics and different effects on a person's behavior. Jalilvanda et al. (2011) suggested that the reference group has two roles: a provider of information and a suggestion. Thus, the reference group can affect the inter- nalconditionsthatexistinconsumers, suchasself- control. Reference groups that act as advisors will be able to strengthen the influence of self-control toresistthetemptationofthecompulsivebehavior.

Childers and Rao (1992) stated that public referen- cegroupsconsistingofcelebritiesandexpertstend to be used as comparison materials for themselves.

Social Learning Theory (Bandura, 1977) reveals thatinformationandobservationofothersisaform of learning. That is, the reference group factor, the influence of e-money on compulsive buying, will be weaker because before making a decision alrea- dy refers to the opinions of other people, especially experts.

H3 : Reference group strengthens the effect of self -control on compulsive buying.

H4 : Reference group weakens the influence of E-

msoney on compulsive buying.

METHOD

This study uses a quantitative approach to analyze the effect of self-control and e-money on compulsivebuying, whichthereferencegroupmo- derates. The millennial generation is the populati- on of this study. The sampling technique used purposive sampling with a total sample size of 275, where the missing data were removed in analyzing data test. Finally, a total of 249 were usable questi- onnaires to be analyzed, and this study used PLS to analyze the data. The measurement items were adopted from past literature using a 5-point Likert- type scale as a measurement tool for compulsive buying measure based on measures in the previous study (Faber et al., 1987). Compulsive buying is uncontrollable and problematic behavior to purchase goods or services. Self-control based on the measure of the Self-Control Scale (SCS) was developed by Tangney et al. (2004). The self-control is an individual's ability to regulate themselves in responding to the situation, for e-money was adop- tedbyRobertsandJones(2001). E-moneyisaform of electronic media that can be used for payments or transactions. The last is the reference group, and the measures were adopted from (Serralvo et al., 2010). Thereferencegroupisacomparisonorview from another group member that influences specific values, attitudes, or behavior.

The PLS test consists of two parts: the measurement model and the structural model test. The measurement model test aims to test the validity of the instrument used, which consists of the validity test used to determine the feasibility of the sta- tement items in the questionnaire. The validity test of this study consisted of two parameters, namely convergent validity and discriminant validity. The convergent validity test is based on the outer loading. The rule of 0.50 loading is considered significant in practice (Hair et al., 2010). The reliability test is assessed based on composite reliability and Cronbach alpha. According to Hair et al. (2010), the rule of thumb for the reliability test is a coefficient with a value of 0.60, indicating that the reliability test results are considered poor but can still be used for further analysis. Then, the coefficient shows a value between 0.60 to 0.70. Then the reliability can be accepted, then a value of 0.80 reliability is considered good.

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The structural model test is measured using several criteria: R-square for endogenous variables. The exogenous variables in this study are self- control, E-money, and reference group, while the endogenous variables are compulsive buying. Tes- ting the hypothesis by looking at the path coefficient and significance value (p-value), which consists of three parts, which are p-value < 0.01, p- value < 0.05, and p-value < 0.1. The positive path coefficient value indicates that the exogenous variable positively relates to the endogenous variable.

In contrast, the negative coefficient value means that the exogenous variable is negatively related to the endogenous variable.

RESULTS

Measurement Model Test

The measurement evaluation model is used to determine the quality of the measuring instrument of a construct. The results of the validity and

reliability tests are used as the initial step to proce- ed to the next stage of hypothesis testing. The convergent validity test was assessed based on a loading factor higher than 0.50 for each construct (Hair et al., 2010). The reliability test was carried out to determine the internal consistency of each statem- ent item contained in the measurement variable th- roughthevalueofCronbach'salphacoefficientand composite reliability. The results of the convergent validity and reliability test are described in Ta- ble 1. The result of the convergent validity test was 3 items lower than 0.5, for e-money2itemslower than0.5, andforthelastcompulsive buying 1 item lower than 0.5. so the item was lower than 0.5 del- eted because it is considered not to meet the criteria of the convergent validity test. The reliability test results shown in Table 1 that all constructs had met the internal consistency reliability. It can be proven by the value of Cronbach's alpha coefficient and composite reliability greater than 0.60.

Table 1. Validity and Reliability Test

Variable Items Outer Loading Cronbach Alpha Composite Reliability

Self-control SC1 0.764 0.707 0.711

SC2 -0.062 0.708 0.712

SC3 0.704 0.709 0.713

SC4 0.773 0.710 0.714

SC5 -0.093 0.711 0.715

SC6 0.669 0.712 0.716

SC7 0.089 0.713 0.717

SC8 0.678 0.714 0.718

SC9 -0.096 0.715 0.719

SC10 0.697 0.716 0.720

E-Money EM1 0.822 0.861 0.893

EM2 0.826 0.862 0.894

EM3 0.860 0.863 0.895

EM3 0.715 0.864 0.896

EM4 0.637 0.865 0.897

EM5 0.781 0.866 0.898

EM6 0.760 0.867 0.899

EM7 0.005 0.868 0.900

EM8 0.356 0.869 0.901

EM9 0.753 0.870 0.902

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19 Variable Items Outer Loading Cronbach Alpha Composite Reliability

Reference group GR1 0.751 0.811 0.878

GR2 0.895 0.812 0.879

GR3 0.890 0.813 0.880

GR4 0.654 0.814 0.881

Compulsive Buying CB1 -0.187 0.826 0.868

CB2 0.743 0.827 0.869

CB3 0.728 0.828 0.870

CB4 0.713 0.829 0.871

CB5 0.649 0.830 0.872

CB6 0.538 0.831 0.873

CB7 0.546 0.832 0.874

CB8 0.616 0.833 0.875

CB9 0.642 0.834 0.876

CB10 0.754 0.835 0.877

CB11 0.763 0.836 0.878

The second validity test is the discriminant validity which is assessed by comparing the avera- ge variance extracted (AVE) square root with the correlation between constructs. Hair et al. (2010) stated that the discriminant validity test could also be assessed by comparing the loading of the measured construct with the loading of other constructs.

Therefore, the results of the discriminant validity test are described in Table 2. The results of the discriminant validity test that the data processing in- dicate a greater difference in the results of construct compared to other constructs in same column.

Table 2. Correlation among Variable

CB EM GR SC

CB 0.645 0.461 0.518 -0.132

EM 0.461 0.700 0.353 -0.003

GR 0.518 0.353 0.804 0.019

SC -0.132 -0.003 0.019 0.557

Structural Model Test

The second step is a structural model test e- valuatedusingthecoefficientofdetermination(R²) and the Q-Square. An explanation of the latent variables is contained in Table 3. Table 3 illustrated the coefficient of determination (R²) results of data statistics, and it shows that the R² of the endogeno-

us compulsive buying (CB) construct is 0.318. Th- ese results mean that the variance of the endogenous CB construct can be explained by 32% by the variance of the Exogenous Self-Control (SC) and E-Money(EM)constructs. Thetestresultsshowed that the Q-Square value on the endogenous construct is greater than zero, namely CB of 0.341. The test indicated that the Q-Square of this study had a predictive relevance that is very good. Table 3 also showedtheeffectsizeforSelf-control(SC)onem- ployee performance is 0.020 (classified as weak).

The effect size showed that Self-control (SC) has alessvitalrolefromapracticalperspectiveincom- pulsive buying behavior. The effect size for e-money on compulsive buying is 0.229 (medium). The analysis results for the effect size show that e-money has a fairly strong role from a practical perspective in compulsive buying behavior.

Table 3. Coefficient Variable

Coefficient CB EM SC GR

R² 0.318 - - -

Q-Square 0.341 - - -

Effect Size 0.229 0.020

Figure 2 showed the results of each hypothesis test. Self-control has a negative effect on com-

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pulsive buying, as evidenced by the value of the SC → CB path coefficient of -0.11, p-value 0.03 (<0.01). Based on the test results, it can be conclu- ded that self-control has a negative effect on compulsive buying, so H1 is supported. E-money has

a significant positive effect on compulsive buying, as indicated by the EM → CB path coefficient of 0.49, with a p-value of <0.001. Based on the test results, E-money significantly positively affects compulsive buying. Therefore, H2 is supported.

Figure 2. Hypothesis Testing Result

The reference group moderates the effect of self-control on compulsive buying as indicated by the path coefficient value of SC*RG → CB of 0.25, with a p-value of <0.001 (smaller than 0.01).

Based on the test results, the Reference group moderates the effect of Self-control on Compulsive Buying. Therefore, hypothesis 3 is supported. The reference group weakens the effect of Self-control on Compulsive Buying as indicated by the path coefficient value of EM*RG → CB of -0.01 with a p-value of 0.43. Based on the test results, the Re- ference group weakens the effect of Self-control on compulsive buying because the results are negative. Therefore hypothesis 4 is supported.

Table 4. Path Coefficient Test

Variable Path Coefficient P-Value

SC→ CB -0.11 0.03***

EM→ CB 0.49 <0,001***

SC*RG→ CB 0.25 <0,001***

EM*RG→ CB -0.01 0.43***

*Significant at level 0.1 (2-tailed)

** Significant at level 0.05 (2-tailed)

*** Significant at level 0.01 (2-tailed)

DISCUSSION

Self-Control and Compulsive Buying

Self-control has a negative effect on compulsive buying. These results follow the research of Tangney et al. (2004) found that self-control significantly negatively affected compulsive buying. The higher control can make person hold back and think logically before buying something. Sul- tan et al. (2012) reinforced the importance of self- control insuppressing individualcompulsive behavior. They showed that a person's self-control would be well-formed through self-control exercises to impact behavior, one of which is a compulsive behavior in buying goods or services. Self- control in a person has minimal effect on compulsive behavior, so it is necessary to practice self- control in the millennial generation so that they do not behave compulsively.

E-money and Compulsive Buying

E-money has a significant positive effect on compulsive buying. These results were consistent with Wibawa et al. (2020) found that the non-cash payments positively affect compulsive behavior.

Compulsive behavior can occur because it is influenced by several factors, one of which is the ease SC

(R)7I

CB (R)10I RF

(R)4I

Β=-0.11 (P=0.03) Β=0.25

(P<.01)

Β=-0.01 (P=0.43)

Β=0,49 (P<.01) EM

(R)8I

R²=0.33

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21 of transactions. The behavior of buying goods that

is unbearable and uncontrolled occurs because of several impulses, both from internal individuals andfromexternalindividuals. Inaddition, thecon- venience factor in the processing transactions and payments can make individuals behave compulsively. E-moneyhasastrongenoughroleincompul- sive buying behavior. The millennial generation's attitudes towards money, one of which is the use of e-money, have an impact on materialism (Dur- vasula and Lysonski, 2010; Lau, 2017), whereas materialism has an impact on compulsive buying (Pradhan et al., 2018; Hayu et al., 2020). A person will tend to show the strength of his social power andwealthwithhisabilitytobuyluxurygoodsand services (Phau and Woo, 2008). One indicator of the social strength, including the rich, is the incre- asinglywidespreaduseofe-moneyintransactions.

Thus, e-money usage becomes one of the characteristics of financial strength, and they will be easier to transact, so it has an impact on compulsive buying behavior.

Reference Group Moderate the Effect of Self- Control on Compulsive Buying

The Reference groups moderate the effect of self-control on compulsive buying. A positive reference group can strengthen individuals in ref- raining from compulsive shopping behavior. Sel- vakumar (2009) stated that the reference group bu- ilds positive norms and values based on their inter- action. Hoyer et al. (2001) said that people have the perception that they often compare themselves with the group and follow them because the group provides direction to improve attitudes, knowled- ge, and behavior. Empirically, this opinion has been proven by the results of this research, where a positive reference group can move a person to be able to control himself so that compulsive behavi- or can be minimized. Pransopon and Hoonsopon (2019) also found that reference groups vary in influence depending on each individual's position and societal characteristics.

Reference Group Moderate the Effect E-money on Compulsive Buying

A positive reference group can weaken the influence of e-money on compulsive buying. That is in line with Schiffman and Kanuk's (2004) state- ment that Reference groups can provide a compa-

rative view to provide a value in general or specifi- cally. Childers and Rao (1992) showed that reference groups consist of many types and impact decision-making differently. A positive reference group can make someone more aware of their behavi- or to avoid compulsive because they get information and insight from the reference group. Empiri- cally it has been proven that a positive Reference group can weaken the effect of e-money on compulsive buying. Jalilvanda et al. (2011) strengthen this finding, where the Reference group has a role for someone in providing advice or input so that it can affect their behavior. This study proves that the advice given by a positive Reference group can weaken compulsive behavior.

IMPICATIONS

Inpractice, theresearchimplicationcancon- tribute to the importance of the role of the reference group in minimizing compulsive behavior. The role of the Reference Group can strengthen the individual's ability to control himself and reduce the uncontrolled use of e-money. Theoretical perspective, this study contributes to strengthening the So- cialLearningTheoryproposedbyBandura(1977), which stated that individuals learn from direct experience or observations of others. Therefore, the Reference group becomes one of the media to add positiveinformationandinsighttocontrolcompul- sive behavior.

RECOMMENDATIONS

The findings contribute to the existing literature by providing the role of a reference group moderatetheeffectofself-controlande-moneyto- ward compulsive buying. But, this study has several limitations that should be considered. First, the effect size of self-control on compulsive buying was weak. Second, this study collected cross-sect- ional data, which cannot confirm the causal effect of self-control and e-money on compulsive buying.

Future research should examine the other internal factor of compulsive buying, such as self- efficacy, internal consistency, etc. Besides, future research can use the longitudinal design to test the causal effect of the conceptual framework. It would be interesting to analyze the types of reference groups, such as celebrities, family, or co-workers, as theeffect can offermoreinsightful results for

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splitting the type of reference groups.

CONCLUSIONS

Basedonthestudy'sresults, itcanbeconclu-

ded that self-control has a negative effect on compulsive buying because person's ability to control himself can make the right decisions so that compulsive behavior can be minimized. E-money has a significant positive effect on compulsive buying because in today's modern era, especially among millennials, E-money usage in the transaction process so that with this convenience it will have an impact on compulsive behavior. Social factors also prove that they have a role in one's behavior.

The study results prove that the reference group strengthenstheroleofself-controlagainstcompul- sive behavior because the role of the reference group will provide advice and positive information.

In addition, the reference group can weaken the influence of e-money on compulsive buying. Alth- ough there is convenience in transacting, it turns out that individuals can hold themselves back because of the positive role of the reference group.

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