67 CHAPTER V
CONCLUSIONS AND IMPLICATIONS
5.1. Conclusions
This study had investigated the antecedents of CBB and whether CBB had any influence on borrowing habit. There were three variables that had been tested whether they influenced CBB or not, they were pocket money, peer acceptance, and money retention. This study also investigated the effect of those three variables to borrowing habit. Pocket money referred to the amount of money the students received every month from their parents, while peer acceptance referred to the effort the students made in order to gain acceptance from their friends. The third independent variable was money retention, which referred to the degree to which the students were being careful with money. The last variable used in this study was borrowing habit, which referred to the tendency to borrow money.
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of this study was the mediation effect of CBB on the effect of money retention to borrowing habit.
Pocket money in this study was found as a factor that did not have any effect on both CBB and borrowing habit. The result however supported hypothesis H1 in case the influence was positive but it did not support hypothesis H4 since the effect of pocket money to borrowing habit was positive. Here pocket money was bad for increasing CBB but it was also good for reducing borrowing habit in the other side. However it must be noted that both effects were not significant.
Even not significant, interestingly the effect of peer acceptance to borrowing habit was negative. This result was in contrast with the hypothesis, meaning that even the tendency to be compulsive buyers would be increased when peer acceptance was increased, in the other side people’s
69 5.2. Theoretical Implications
This study proved that pocket money did not significantly influence CBB, while peer acceptance and money retention significantly affected CBB. Previous studies that had investigated the effect of pocket money and income to CBB had shown different results where some found a significant effect but some did not. The result that pocket money had significant effect on CBB however did not support the study of Ergin (2010) as well as the study of Guo and Cai (2011) but it supported the study of Reisch et al. (2010). Proving that peer acceptance increased CBB, this study had confirmed the study done by Guo and Cai (2011). The result of the study that money retention had negative and significant effect on CBB had supported the result of study done by Li et al. (2009).
This study also found that money retention and CBB had significant influence on borrowing habit. This study could be considered as one pilot study that investigated and focused on borrowing habit since there hasn’t
found any previous studies that explored and investigated borrowing habit. Therefore there’s an opportunity for future studies to investigate more about
70 5.3. Applied Implications
Being compulsive buyer is not a good advice, as well as having high borrowing habit since both were negative. CBB will push people to have high borrowing habit which will come with some negative consequences. Beside it may damage people’s relation to their friends or colleagues,
borrowing habit may also lead people to bankruptcy. The study have found some factors that may help students and people in general to avoid or reduce the tendency to have both negative behavior and habit.
1. The study found that higher peer acceptance would lead to higher tendency of CBB. Therefore students should understand that buying trendy and high quality products as well as follow their friends to buy certain products are not the best and easiest ways to get acceptance from their friends. Students need to avoid these actions and try not to buy products only to be accepted by the people around since it will lead them to be compulsive buyers.
2. This study also have found that money retention significantly reduce CBB. A form of money retention is make saving, that’s why set aside money regularly will help students to reduce their spending. Note everyday’s spending and evaluate which spending is necessary and
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5.4. Limitations & Recommendations for Future Research
As well as other studies, this study also had some limitations. These limitations however were expected to be improved in future studies. The limitations of this study open opportunities for future studies.
Firstly, pocket money in this study was regular pocket money that the students received every month. This study did not consider the difference between the students who lived with their parents and the students who lived in boarding houses, since their pocket money was quite different in general. Those who lived with their parents generally received lower pocket money than those who lived in boarding houses that received medium to high pocket money. This might be the reason why there wasn’t any significant effect of
pocket money to CBB and borrowing habit. Future studies were expected to look into this difference, by making different measurement of pocket money for each group.
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female and that ethnicity might have effect on both. Therefore, by obtaining a balance proportion of students in case of gender and origin, it was expected to obtain a better result.
Future studies are also expected to explore and investigate more about borrowing habit since there were still limited studies about it. Self-control will be the first variable that may be proposed as a factor that affect borrowing habit. Baumeister (2002) asserted that self-control is a personality trait that capable of explaining a variety of individual differences in behavior, while Tangney et al. (2004) put ‘breaking habit’ as an indicator of self-control. Besides self-control, demographic factors such as sex, age, education, and marital status, will be the second suggested variable to be investigated. As Furnham (1996) noted that people’s habits toward money
were multifaceted with beliefs and behaviours differing according to demographic variables. The third variable that may be investigated as an independent variable to borrowing habit is personality. Personality however in many studies has been proved as a factor that affect behavior and habit (Mowen & Spears, 1999).
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