#### Abstract/Description

he aim of this paper is to measure the effect of materialism, interpersonal influence and compulsive buying behavior through a conceptual framework based on the Theory of Reasoned Action (TRA). The questionnaire was administrated by the appointed enumerators in the selected malls of Karachi. The enumerators visited these malls during different hours and days of the week. The valid sample size for this study is 300 comprising of all age groups. Mall intercept method which is a kind of convenience sampling was used for collecting data. The instrument used for collecting data for this study comprised of four constructs which are (1) Compulsive buying behavior ( ten items) (2) materialism (seven items) (3) self esteem (seven items) and (4) influence of others (ten items). Only those constructs were used in the development of the instrument which have established reliabilities and have been used in the context similar to the theme of this paper. After ascertaining the normality of data a typical multiple step procedure was adopted for this study which is inclusive of (1) Exploratory Factor Analysis (2) Reliability Analysis (3) Validity Analyses (4) CFA for all the constructs through Structural Equation Modeling (SEM), and (5) Testing overall Model through SEM (6) Analyzing the derived hypotheses based on SEM output that is standardized Regression Estimates (SRE), Critical Ratios, and Probability.The conceptual framework based on Structural educational modeling (SEM) was found to be relevant in understanding the impact of predictor variables on compulsive buying behavior. The Chi Square value was significant (x2 = 98.403, DF = 74, p= 0.030 < .05). The CMIN/df (Relative χ2/df) was 1.330 < 5. The Root Mean Square Error of Approximation (RMSEA) = 0.033 < 0.08 and Goodness of Fit Index (GFI) = 0.957> 0.90 meet both the absolute of goodness-of-fit and badness-of-fit criteria. The Comparative Fit Index (CFI) = 0.966 > 0.900 and Normed Fixed Index (NFI) = 0.966 > 0.900 meet Relative Fit Measures. Whereas Parsimony Adjusted Normed Fit Index (PNFI) =0.744 > .0.50 and Parsimony Comparative Fit Index (PCFI) = 0.786 > 0.50 meets Parsimonious Fit measure. In sum, the CFA results indicate that the overall hypothesized model is a good fit. Of the four hypotheses one on the relationship of materialism and compulsive buying was rejected (Standardized Regression Estimates= 0.303, CR= -0.014, p = 0.989 >.05) and the rest three were substantiated (failed to reject). The SEM results also shows that the relationship between materialism and influence of others (Standardized Regression Estimates = 0.359, CR= 4.254, p = 0.001 < 0.05), was the strongest predictor followed by influence of others viz. compulsive (Standardized Regression Estimates = 0.321, CR=3.550 p = 0.001< 0.05) and self esteem viz. compulsive (Standardized Regression Estimates = 0.2920, CR=3.088, p =.002< .05). The three substantiated hypotheses were consistent to earlier studies. Implication for managers and policy makers were drawn from the results. The author of the Theory of Reasoned Action on which the conceptual framework of this study has been developed has confessed that theory might run into problems if extended to other countries and cultures. Perhaps this is the first study based on TRA and in the domain of compulsive buying behavior which has been successfully extended in Pakistan, thus increasing the generaliziblity of the theory (TRA). After empirically testing the proposed model new measures have been derived from it, which could be used by the policy makers and managers for understanding the significance of compulsive buying behavior.

#### Location

Seminar Room, S5 2nd Floor, CED Bldg

#### Session Theme

Session 3: Parallel Sessions

#### Session Type

Event

#### Session Chair

Dr. Zeenat Ismail

#### Start Date

3-5-2014 2:30 PM

#### End Date

3-5-2014 5:00 PM

#### iRepository Citation

Jalees, T., Amen, U., & Kazmi, Q. -. (2014). Parallel Sessions (Consumer Behavior): A structural approach on compulsive buying behaviour. International Conference on Marketing. Retrieved from https://ir.iba.edu.pk/icm/2014/day1/17

#### Included in

Parallel Sessions (Consumer Behavior): A structural approach on compulsive buying behaviour

Seminar Room, S5 2nd Floor, CED Bldg

he aim of this paper is to measure the effect of materialism, interpersonal influence and compulsive buying behavior through a conceptual framework based on the Theory of Reasoned Action (TRA). The questionnaire was administrated by the appointed enumerators in the selected malls of Karachi. The enumerators visited these malls during different hours and days of the week. The valid sample size for this study is 300 comprising of all age groups. Mall intercept method which is a kind of convenience sampling was used for collecting data. The instrument used for collecting data for this study comprised of four constructs which are (1) Compulsive buying behavior ( ten items) (2) materialism (seven items) (3) self esteem (seven items) and (4) influence of others (ten items). Only those constructs were used in the development of the instrument which have established reliabilities and have been used in the context similar to the theme of this paper. After ascertaining the normality of data a typical multiple step procedure was adopted for this study which is inclusive of (1) Exploratory Factor Analysis (2) Reliability Analysis (3) Validity Analyses (4) CFA for all the constructs through Structural Equation Modeling (SEM), and (5) Testing overall Model through SEM (6) Analyzing the derived hypotheses based on SEM output that is standardized Regression Estimates (SRE), Critical Ratios, and Probability.The conceptual framework based on Structural educational modeling (SEM) was found to be relevant in understanding the impact of predictor variables on compulsive buying behavior. The Chi Square value was significant (x2 = 98.403, DF = 74, p= 0.030 < .05). The CMIN/df (Relative χ2/df) was 1.330 < 5. The Root Mean Square Error of Approximation (RMSEA) = 0.033 < 0.08 and Goodness of Fit Index (GFI) = 0.957> 0.90 meet both the absolute of goodness-of-fit and badness-of-fit criteria. The Comparative Fit Index (CFI) = 0.966 > 0.900 and Normed Fixed Index (NFI) = 0.966 > 0.900 meet Relative Fit Measures. Whereas Parsimony Adjusted Normed Fit Index (PNFI) =0.744 > .0.50 and Parsimony Comparative Fit Index (PCFI) = 0.786 > 0.50 meets Parsimonious Fit measure. In sum, the CFA results indicate that the overall hypothesized model is a good fit. Of the four hypotheses one on the relationship of materialism and compulsive buying was rejected (Standardized Regression Estimates= 0.303, CR= -0.014, p = 0.989 >.05) and the rest three were substantiated (failed to reject). The SEM results also shows that the relationship between materialism and influence of others (Standardized Regression Estimates = 0.359, CR= 4.254, p = 0.001 < 0.05), was the strongest predictor followed by influence of others viz. compulsive (Standardized Regression Estimates = 0.321, CR=3.550 p = 0.001< 0.05) and self esteem viz. compulsive (Standardized Regression Estimates = 0.2920, CR=3.088, p =.002< .05). The three substantiated hypotheses were consistent to earlier studies. Implication for managers and policy makers were drawn from the results. The author of the Theory of Reasoned Action on which the conceptual framework of this study has been developed has confessed that theory might run into problems if extended to other countries and cultures. Perhaps this is the first study based on TRA and in the domain of compulsive buying behavior which has been successfully extended in Pakistan, thus increasing the generaliziblity of the theory (TRA). After empirically testing the proposed model new measures have been derived from it, which could be used by the policy makers and managers for understanding the significance of compulsive buying behavior.