THE CREDIT CARD USE ON MILLENNIALS’ MATERIALISTIC AND COMPULSIVE BUYING

Abstract

The growth of Indonesian economy is supported by the high consumption and the ease of credit card transaction, especially among the millennials. A survey implied that 63% of millennial generation need credit card. This research shows the impact of materialism towards compulsive buying with the intermediation of credit card in context of millennial generation in Indonesia. The managerial implication of this research shows that the credit card industry has to emphasize on giving credit card limits dan installments to millennial generation to minimize the amount of debt and to decrease bad debt that could be counted as loss by the company. This research focuses on three variables that are: materialism, credit card uses and compulsive buying with quantitative research method. The primary data from this research also gathered using online questionnaire and analyzed using Partial Least Square tool. The result of the research shows that there is a significant amount of relationship between materialism towards credit card use, and also the relationship between credit card use towards compulsive buying that is mediated by credit card use.

Keywords

• compulsive buying
• credit card use
• materialism
• millennial