Relating mindfulness to financial well-being through materialism: evidence from India

Sinha, Nishit Kumar; Kumar, Pankaj; Priyadarshi, Pushpendra

doi:10.1108/ijbm-07-2020-0375

Cited by 20 publications

(18 citation statements)

References 88 publications

(159 reference statements)

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“…This study contributes both to the emerging, but still limited, literature on mindfulness and financial decision-making as well as to the more established literature on financial well-being. In terms of the former, mindfulness has scantly appeared in the literature on financial decision-making, although its popularity has started to increase with the rise of concepts such as mindful finance (Sinha et al , 2021). We contribute to this developing stream of literature by demonstrating how mindfulness can benefit consumers by reducing their usage of BNPL payment schemes through the underlying mechanisms of increasing their financial self-control and decreasing their impulse buying tendency.…”

Section: Discussionmentioning

confidence: 99%

How mindfulness reduces BNPL usage and how that relates to overall well-being

Schomburgk

Hoffmann²

2022

EJM

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Purpose The purpose of this study is to examine how mindfulness reduces consumers’ buy-now-pay-later (BNPL) payment scheme usage and how that relates to their overall well-being. Design/methodology/approach This study uses partial least squares structural equation modeling to test the hypotheses of a conceptual framework which is rooted in the extant literature, using an approximately representative sample of Australian consumers (N = 275). Findings This study finds empirical evidence for the ability of mindfulness to reduce BNPL usage through increasing consumers’ financial self-control and decreasing their impulse buying tendency. This study also obtains empirical evidence that greater BNPL usage is associated with lower subjective evaluations of consumers’ overall well-being by increasing their current money management stress and decreasing their expected future financial security. Research limitations/implications Future research could build on the effect of mindfulness that the authors find in this study and how it could be leveraged as a protective mechanism for consumers’ financial decision-making. Such research could involve mindfulness-based interventions, such as instant messaging within smartphone applications. Doing so would also help assess causality, thus addressing the limitation of the cross-sectional nature of this study. Practical implications The findings have implications for public policymakers and business practitioners. Financial counselors are encouraged to include the measurement of personality traits such as impulse buying tendency and financial self-control in intake meetings with clients and consider the benefits of offering short mindfulness training. Given the negative effect of BNPL usage on consumers’ financial and overall well-being, and the reputational risks this implies, BNPL providers are recommended to take more responsibility to ensure consumers do not fall into a debt trap, while retailers are advised to take steps to make payment processes more “mindful.” Originality/value Although mindfulness has established effects on consumer behavior, its beneficial influence on consumer financial decision-making has rarely been explored. This study also contributes to a better understanding of the antecedents and consequences of consumers’ BNPL payment scheme usage. Although its prominence is increasing in daily life, and despite the concerns of consumer advocates, policymakers and regulators regarding its risks, the topic of consumers’ BNPL usage has received little attention in academic research so far. Finally, this study extends the emerging financial well-being literature by demonstrating how BNPL usage can reduce consumers’ overall well-being through the mediating effect of increasing current money management stress and decreasing expected future financial security.

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Section: Discussionmentioning

confidence: 99%

How mindfulness reduces BNPL usage and how that relates to overall well-being

Schomburgk

Hoffmann²

2022

EJM

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“…The study finds that mindfulness is negatively associated with online IBB as well as with PIU. PIU is associated with multiple detrimental psychosocial outcomes and adverse emotional experiences ( Caplan, 2002 ; Sinha et al, 2021a ). Since the essential features of e-commerce websites may play a significant role in triggering emotions to stimulate the impulse buying behavior ( Park et al, 2012 ), e-commerce firms may look at ways to institutionalize the embedded mechanisms (e.g., pop-up messages) within their interactive web portal framework to boost mindfulness of the customers which, in turn, reduces the dysfunctional usage of the Internet in the form of PIU Such external interventions are effective in augmenting customers’ awareness level ( Monaghan, 2008 ), allowing them to make informed purchase decisions.…”

Section: Discussionmentioning

confidence: 99%

Effect of mindfulness on online impulse buying: Moderated mediation model of problematic internet use and emotional intelligence

et al. 2022

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IntroductionOnline impulse buying behavior is an unplanned urge to buy a product or service in an online setting and it has several negative consequences for customers, such as guilt and financial distress, and e-commerce firms, such as higher returns and customer complaints. Evidently, it is important to examine the various psychological processes which may assist in a better understanding, therefore addressing the high prevalence of online impulse buying. This study builds upon self-regulation theory to explore how mindfulness influences online impulse buying, and examines problematic internet use as a mediator in the relationship between mindfulness and online impulse buying. Further, this study investigates how emotional intelligence as a moderator plays the role of a suppressant on the adverse impact of problematic Internet use which fuels online impulse buying.MethodA total of 598 individuals working with various servicebased industries responded to the questionnaire. Multiple regression and moderated mediation analysis was used using SPSS and AMOS for analyzing the data.ResultProblematic internet use mediates the relationship between mindfulness and online impulse buying behavior. Emotional intelligence negatively moderates the relationship between problematic internet use and online impulse buying behavior.DiscussionThis study findings outlined the inverse relationship of mindfulness & online impulse buying, along with the mediating effect of problematic internet use between mindfulness and online impulse buying. Further, this study showed how emotional intelligence played an important role as a moderator by suppressing the adverse impact of problematic Internet use and preventing online impulse buying. The study offers implications to online marketers in regulating the unplanned purchase process—while minimizing uninhibited buying behavior that leads to regret, and the subsequent intention to return products. Further, social and theoretical implications are discussed.

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“…, 2021), financial anxiety (Fünfgeld and Wang, 2009; Strombäch et al. , 2017; Sinha et al. , 2021) and the financial strain (Ianole-Calin et al.…”

Section: Theoretical Framework Of the Perceived Financial Well-being ...mentioning

confidence: 99%

“…This construct was inspired by the financial attitudes and behaviors present in the OCDE/INFE (2018) tools related to FWB. The dimension portrays financial tranquility as the opposite feeling of financial stress (Delafrooz et al, 2011;Gutter and Copur, 2011;Netemeyer et al, 2018;Prawitz et al, 2006;Iannello et al, 2021), financial anxiety (F€ unfgeld and Wang, 2009;Stromb€ ach et al, 2017;Sinha et al, 2021) and the financial strain (Ianole-Calin et al, 2021). Table 4 lists the FWBPS items according to the financial tranquility dimension.…”

Section: Theoretical Framework Of the Perceived Financial Well-being ...mentioning

confidence: 99%

Construction and validation of a perceived financial well-being scale (PFWBS)

Vieira

Matheis

Bressan

et al. 2022

IJBM

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PurposeThe aim of the study is to build and validate a perceived financial well-being scale (PFWBS).Design/methodology/approachA total of 34 items were developed on a five-point Likert scale. Validation involved two phases and four steps. In the qualitative phase, interviews, validation by specialists and the pre-test were carried out. In the quantitative phase, a sample of 1,020 cases was used in the exploratory stage and another sample of 2,293 individuals in the confirmatory validation stage.FindingsThe PFWBS is composed of 23 items distributed in four dimensions (financial security, financial tranquility, financial freedom and satisfaction with financial management) that identify the perception of financial well-being of the consumers of financial products.Practical implicationsThe authors propose a methodological framework that allows researchers, managers and policy makers to use the indicator to assess citizens' perception of financial well-being.Social implicationsThe PFWBS can be useful in evaluating the results of different public policies, such as income transfer programs and financial education policies. It can also serve as a parameter for the financial system to assess the perception of its customers, helping to evaluate products and services.Originality/valueFinancial well-being lacks valid measurement scales in the literature. This study advances by creating a scale for the assessment of the perception of financial well-being, which can be applied in different contexts.

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Relating mindfulness to financial well-being through materialism: evidence from India

Cited by 20 publications

References 88 publications

How mindfulness reduces BNPL usage and how that relates to overall well-being

How mindfulness reduces BNPL usage and how that relates to overall well-being

Effect of mindfulness on online impulse buying: Moderated mediation model of problematic internet use and emotional intelligence

Construction and validation of a perceived financial well-being scale (PFWBS)

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