Materialist values, financial and pro-environmental behaviors, and well-being

Abstract

Purpose The purpose of this study is to examine young consumers’ financial behavior (e.g. saving) and pro-environmental behavior (i.e. reduced consumption and green buying) as effective proactive strategies undertaken in the present to satisfy materialistic values and maximize well-being. Design/methodology/approach The study is based on an online survey among a panel of young American adults (N = 968). Findings The study finds a positive effect of materialism on personal well-being and negative effects on financial satisfaction, proactive financial coping and reduced consumption, but no effect on green buying, a separate and distinct pro-environmental strategy. Both proactive financial coping and reduced consumption are positively associated with subjective well-being. Research limitations/implications Future research should re-examine conceptualizations of materialism in the context of climate change and the meaning of possessions in the global digital economy; studies could also focus on the specific well-being effects of reduced consumption and alternative pathways to align materialistic and environmental values. Practical implications Consumer education should look to models of financial education to demonstrate how limited natural resources can be managed at the micro level to enhance consumers’ subjective well-being, as well as reduce resource strain at the macro level. Originality/value Key contributions are the examination of materialism and consumption in the dual contexts of financial and environmental resource constraints and the effects of these key macro-social phenomena on consumers’ perceived well-being. Another study highlight is the differentiation of two strategies for proactive environmental coping, of which only one, reduced consumption, increased personal well-being and decreased psychological distress.

The power of materialism among young adults: exploring the effects of values on impulsiveness and responsible financial behavior

“…There has been a growing interest in the investigation of responsible financial behavior of young adults (Pinto et al , 2000; Watson, 2003; Norvilitis et al , 2006; Yang et al , 2008; Tang et al , 2015; Bamforth et al , 2018; Bapat, 2020). Efficient and well-structured financial decisions, hence responsible financial behavior, is crucial for young people’s prosperity in personal and professional life (Sachitra et al , 2019), as well as in the advance of general well-being (Helm, et al , 2019). Therefore, it is necessary to investigate young adults’ financial behavior to better understand and predict their financial behavior but also to encourage responsible and avoid irresponsible financial behaviors.…”

Consumer’s subjective financial well‐being: A systematic review and research agenda

“…Another example shows a negative effect of materialism on FWB for young consumers, but a positive relationship on personal well-being, a finding that needs further investigation for broader consumer samples (Helm et al, 2019). In a more recent study, Strömbäck et al (2017) found that self-control as an individual difference parameter significantly predicts positive financial behavior such as savings and financial anxiety (which is a measure of FWB).…”

“…Another example shows a negative effect of materialism on FWB for young consumers, but a positive relationship on personal well‐being, a finding that needs further investigation for broader consumer samples (Helm et al., 2019). In a more recent study, Strömbäck et al.…”

A Guiding Framework for Levels of Sustainability in Marketing

“…Thus, society in general and green consumers, in particular, are questioning the genuineness of green marketing activities, particularly after the Volkswagen scandal in 2015. In addition, research has demonstrated that "green buying", in reality, offers a way for materialists to fulfill their desire to accumulate new items [51]. For this reason, green marketing appears as a pretense alternative for continued consumption to satisfy the extrinsic goals of individual consumers or to have recognition from other stakeholders [52].…”