Journal of International Consumer Marketing

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A Cross-National Study of Consumer Spending

Behavior: The Impact of Social Media Intensity and
Materialism

Amonrat Thoumrungroje

To cite this article: Amonrat Thoumrungroje (2018) A Cross-National Study of Consumer

Spending Behavior: The Impact of Social Media Intensity and Materialism, Journal of International
Consumer Marketing, 30:4, 276-286, DOI: 10.1080/08961530.2018.1462130

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JOURNAL OF INTERNATIONAL CONSUMER MARKETING, 2018
VOL. 30, NO. 4, 276–286
https://doi.org/10.1080/08961530.2018.1462130

A Cross-National Study of Consumer Spending Behavior: The Impact of Social

Media Intensity and Materialism
Amonrat Thoumrungroje
Department of International Business Management, Assumption University, Bangkok, Thailand

ABSTRACT KEYWORDS
The ubiquity of Internet, mobile devices, and online social media platform has undeniably altered Conspicuous consumption;
consumer lifestyles and business conduct globally. To explore the influences of social media credit overuse; cross-
on consumer behavior, this study applied the “self-regulation” concept and a cross-cultural national; impulse buying;
conceptualization of “self” to propose a model explicating how social media intensity directly and materialism; social media
indirectly—through materialism—impact consumers’ credit overuse, conspicuous consumption,
and impulse buying. Using data collected from the U.S. and South Korea, social media intensity
strongly influences consumer spending in the American sample but has no effect on credit overuse
behavior in the South Korean sample.

Introduction
behaviors and to investigate whether the relationships
Given the advanced communication technologies are consistent across cultures.
driven by the ease of Internet accessibility, the intro- Among several personal values, materialism has
duction of Web 2.0 technologies, and the availability been a contemporary construct of interest in cross-
of mobile devices such as smart phones, tablets, etc., cultural consumer marketing (e.g., Podoshen, Li, and
people spend many hours per day online, especially Zhang 2011; Watchravesringkan and Yurchisin 2007;
on social networking sites such as Facebook, Twitter, Wong and Ahuvia 1997). It refers to a system of values
and Instagram. In 2017, the global daily average time that a person places central importance on material
spent on social network sites is 135 minutes per con- possessions in pursuit of happiness and success
sumer. According to recent statistics in 2017, more (Richins and Dawson 1992). Such value is driven by
than 500 comments, almost 300,000 statuses, and over different rationales based on a person’s cultural back-
130,000 photos are updated every minute on Facebook ground (Wong and Ahuvia 1997). In the Confucian
alone (www.cmocouncil.org). Unsurprisingly, 71% of collectivist culture of most Southeast Asian countries,
Internet users have reported they would buy brands “self” is viewed as interdependent of others in one’s
that they are following on social networking sites group (Markus and Kitayama 1991). Conformity, har-
(www.cmocouncil.org). This phenomenon has mony, and legitimacy gained through group affiliation
unquestionably and drastically altered consumer life- is of utmost importance (Kashima et al. 1995); there-
styles and consumption behaviors. Specifically, con- fore, materialism is induced by these external forces.
sumers now interact directly and instantaneously with On the contrary, the western individualistic culture
marketers, family, and peers via social networking perceives self as independent of others. As such, per-
sites. These technological changes have made consum- sonal achievements and needs supersede those of
ers more engaged and susceptible to the influences of groups. Here, materialism is driven from a person’s
social networks. Hence, it is deemed worthwhile to internal motivations.
examine how social media intensity, specifically the Building on Wong and Ahuvia’s (1997) east-west
extent to which consumers are engrossed in online conceptualization of materialism, studies by Schaefer,
social media, affects their personal value and spending Hermans, and Parker (2004) and Podoshen, Li, and

CONTACT Amonrat Thoumrungroje [email protected] Assumption University, 592/3 Soi Ramkhamhaeng 24, Ramkhamhaeng Road., Hua Mak,
Bangkok 10240, Thailand.
© 2018 Taylor & Francis Group, LLC
 JOURNAL OF INTERNATIONAL CONSUMER MARKETING 277

Zhang (2011) revealed different degrees of materialism Given the Confucian value, South Korea scores
between Asians (i.e., Chinese and Japanese) and Ameri- particularly high on pragmatism, which indicates
cans. However, when linking materialism to other how people relate to their past in order to manage
behavioral constructs such as: (1) conspicuous con- their present and future and the long-term oriented
sumption between Americans and Chinese (Podoshen, value (Hofstede, Hofstede, and Minkov 2010).
Li, and Zhang 2011); and, (2) price perception and Another cultural dimension that distinguishes these
value consciousness between Americans and Koreans two cultures is the degree of indulgence. People in
(Watcharavesringkan and Yurchisin 2007), the rela- an indulgent culture tend to be less resistant to
tionships are positive and consistent across cultures. their desires and impulses. In this aspect, Koreans
Moreover, Fang and Podoshen (2017) also indicated tend to be less indulgent than Americans
that Chinese consumers have adopted a similar con- (Hofstede, Hofstede, and Minkov 2010). With these
sumption pattern, which reflects higher materialistic cultural distinctions, the two countries represent
value and more conspicuous consumption, as those of interesting research contexts to explore the impact
Western consumers in the midst of China’s rapid eco- of social media. A clear understanding of such
nomic growth in recent years. They also alluded that impact across cultures will enable international
public and social media exert a strong influence on con- marketers to better serve consumers with different
sumption behavior among younger Chinese consum- cultural backgrounds.
ers. On the contrary, the consumption pattern of the
older cohorts in China is largely influenced by income.
Literature review and hypotheses
In addition, despite the myriad of research emphasizing
the impact of traditional media on consumers’ materi- Research investigating the impact of online media
alism (e.g., Ger and Belk 1999; Goldberg and Gom intensity on consumer spending behavior is either
1978), the effect of online social media on materialism limited or scattered. This study selected three
and other consumer spending behaviors is still scarce. spending behaviors—credit overuse, conspicuous
Only recently, Kamal, Chu, and Pedram (2013) found consumption, and impulse buying—due to the
that social media usage positively affects materialism implicit relationships sporadically asserted in recent
across Arabian and American students. Furthermore, literature without solid empirical grounds (e.g.,
although extant literature has already examined the Croft 2013; Talukdar and Lindsey 2013). Therefore,
effects of materialism on credit overuse (e.g., Ponchio a comprehensive model of how social media inten-
and Aranha 2008; Richins 2011; Watson 1998), con- sity directly and indirectly affects consumer spend-
spicuous consumption (Fang and Podoshen 2017; ing behavior is proposed here.
Podoshen, Andrzejewski, and Hunt 2014; Segal Credit overuse behavior refers to the difficulty in
and Podoshen 2013), and impulse buying (e.g., Belk paying debt caused by excessive use of credit
1995; Podoshen and Andrzejewski 2012; Tatzel 2002; (Roberts and Jones 2001). Conspicuous consump-
Watson 2003), the direct and indirect (via materialism) tion indicates the act of acquiring and displaying
influences of online social networking on these spend- luxurious goods and services that reflect one’s
ing behaviors remain unexplored. For this reason, this wealth (Podoshen and Andrzejewski 2012). Accord-
study integrates Baumeister’s (2002) “self-regulation/ ing to Beatty and Ferrell (1998, p. 160), impulse
control” concept with the cross-cultural construal of buying is defined as “a sudden and immediate pur-
“self” (Markus and Kitayama 1991) to investigate social chase with no pre-shopping intentions either to
media-materialism-consumer spending relationships buy the specific product category or to fulfill a spe-
across eastern and western societies amid globalization. cific buying task.” Building on the “self-control/reg-
Since South Korea represents one of the Southeast ulation” concept (Baumeister 2002), credit overuse,
Asian nations whose manifestation of Confucian collec- conspicuous consumption, and impulse buying
tivism is not only prominent but also persistent (Hof- reflect consumer behaviors that fail to uphold self-
stede and Bond 1988; Hsu 1981) while the U.S. control, a personality trait wherein an individual
symbolizes a typical western individualistic culture, possesses the capacity to refrain from irrational
these two countries were selected as research contexts and harmful acts that contradict the norms. As
in this study. such, a person with self-control will act rationally
278 A. THOUMRUNGROJE

rather than indulgently. When making a product 2006; Wilcox, Kramer, and Sen 2011; Wilcox and
choice, decisions would be more utilitarian- rather Stephen 2013). As found in Khan and Dhar (2006),
than hedonic-based. When self-control fails, con- consumers tend to display their luxurious product
sumers are prone to engage in more indulgent choices on these sites to improve their self-esteem.
behaviors such as spending beyond their means In the same vein, self-esteem enhancement gained
(Limerick and Peltier 2014), eating unhealthy food through social networks induces indulgent behav-
(Wilcox and Stephen 2013), buying luxurious prod- iors (Wilcox, Kramer, and Sen 2011). Likewise,
ucts (Khan and Dhar 2006), and committing Wilcox and Stephen (2013) discovered that social
impulsive purchases (Luo 2005). network users adopt irrational/impulsive behaviors
such as choosing unhealthy food and increasing
spending. For this reason, it is postulated that
The direct impact of social media intensity
social media intensity relates to the three spending
on consumer spending behavior
behaviors since it becomes a potential source of
The relationship between social media intensity and self-control failure that may enable people to
consumer spending behavior can be explained by engage in indulgent acts such as overuse of credit,
the failure of self-regulation. Three potential sour- impulse buying, and conspicuous consumption.
ces of such failure include: (1) conflicting goals With the changes in lifestyles, a rising number of
leading to emotional distress; (2) lack of self-aware- people spend more time exchanging information
ness due to the inability to monitor oneself; and, through online networking platforms. Many people
(3) depletion of self-control capacity resulting from gain positive feedback from their posts so their
previous exertion of self-control (Baumeister 2002). self-esteem increases (Gonzales and Hancock 2011)
Being absorbed in online social media induces while their self-control decreases—a condition that
these possibilities since social media play a major makes people more vulnerable to behaving indul-
role in shaping the standards, assisting individuals gently. As revealed by Gonzales and Hancock
in monitoring their behaviors, and giving them (2011) and Wilcox and Stephen (2013), online
support and encouragement/discouragement. First, social networks help enhance people’s self-esteem,
social media provide overwhelming information but lower self-control, resulting in irrational behav-
that might create conflicting standards about ior such as overspending (Limerick and Peltier
expected behaviors. When people become unclear 2014). As such,
about which goals/standards/norms to pursue, they
Hypothesis 1:Social media intensity positively influences
tend to adopt choices that make them feel good to credit overuse behavior.
reduce the agony. Therefore, they act rather indul-
gently. As indicated in previous research, happiness An ethnographic study of consumer networks in
lessens impulsive acts (Baumeister, Heatherton, and social media conducted by Croft (2013) also sug-
Tice 1994). Second, browsing through a social net- gests that social media intensity induces conspicu-
work allows people to focus on others’ statuses and ous consumption. Since social media intensity
stories; thus, lowering their self-awareness. This, in exposes consumers to a tremendous amount of
turn, tampers self-control, and makes people to information regarding products or services, con-
engage in more indulgent behaviors (Wilcox and sumers may likely develop conflicting goals, lose
Stephen 2013). Finally, self-control capacity resem- self-awareness, and deplete self-control capacity—
bles energy that can be temporarily depleted and all conditions leading to self-control failure—which
restored (Baumeister 2002); hence, an excessive increases the chance of committing indulgent
involvement in social media can drain self-control behaviors. Furthermore, a recent review on materi-
capacity because it heavily draws on one’s cognitive alism and conspicuous consumption conducted by
effort. Fang and Podoshen (2017) also indicates changes
The impact of excessive usage of social media in younger Chinese consumers, who are deemed to
such as those of networking sites on lowering con- be prone to public and social media influences, in
sumer’s self-control and increasing indulgent acts becoming more materialistic and consuming more
has been investigated previously (Khan and Dhar conspicuously. Building on this stream of research
 JOURNAL OF INTERNATIONAL CONSUMER MARKETING 279

along with the discussion on the lack of self-control Hypothesis 5: Higher degree of materialism leads to
elucidated by Gonzales and Hancock (2011) and higher credit overuse behavior.
Wilcox and Stephen (2013), it is believed that
Since materialists highly value owning luxurious items
higher intensity in social media engagement will
as a means to demonstrate wealth, success, and happi-
likely lead to higher conspicuous consumption and
ness while conspicuous consumption refers to the act
impulse buying. Therefore, H2 and H3 are postu-
of engaging in the acquisition of expensive items and
lated as follows:
the purchase of lavish services as a way to display
Hypothesis 2: Social media intensity positively influen- wealth and social status or prestige (Podoshen,
ces conspicuous consumption. Andrzejewski, and Hunt 2014), consumers with
Hypothesis 3: Social media intensity positively influen- higher levels of materialism would be more inclined to
ces impulse buying.
consume more conspicuously. In addition, the materi-
alism-conspicuous consumption relationship has been
The mediating role of materialism
extensively studied in the past (e.g., Chung and
Impact of social media on materialism Fischer 2001; Podoshen and Andrzejewski 2012;
Social media websites provide platforms for con- Podoshen, Andrzejewski, and Hunt 2014; Segal and
sumers to retrieve, share, and exchange various Podoshen 2013) with the results indicating that
kinds of information. Given the rising popularity of regardless of consumers’ nationalities, materialism is
these sites, marketers employ them to communicate positively related to conspicuous consumption. Hence,
to their potential consumers. While prior literature hypothesis 6 can be stated as:
has already documented the influence of traditional
Hypothesis 6: Materialism has a positive impact on con-
media on materialism (Ger and Belk 1999; Gold- spicuous consumption.
berg and Gom 1978), investigation of the online
social media-materialism relationship has been lim- According to materialism literature, self-indulgent
ited. Recently, Kamal, Chu, and Pedram (2013) purchase decisions are common to materialists (Belk
examined this relationship and discovered that con- 1995; O’Cass 2001). They have a propensity to buy
sumers tend to have higher degrees of materialism products based on impulses. Being materialistic indi-
when they engage more in social networking activi- cates that purchase decisions are no longer based on
ties. Similarly, Bush and Gilbert (2002) found that rational demand but rather on an impulsive one. As
consumers who are absorbed in Internet media suggested by Richins and Dawson (1992), a materialist
have higher materialism levels than those who are values both quantity and type of products acquired.
absorbed in newspapers. Building on this stream of Provided this desire to possess certain products to dis-
research, it is hypothesized that consumers who are play one’s wealth and success, a materialist will be
more engaged in online social media will likely be more prone to impulsive purchases. As such,
more materialistic. Therefore,
Hypothesis 7: Materialism has a positive impact on
Hypothesis 4: Social media intensity has a positive impulse buying.
impact on materialism.
Methodology
Impact of materialism on consumer spending behavior
Sample and data collection
Since materialists value possessions of objects that can
indicate social status, it is not surprising that they will A self-administered survey was used to collect data
be more inclined to spend beyond their means. As from the U.S. and from South Korea via snow-ball
revealed in Ponchio and Aranha (2008), materialism and quota sampling procedures. Electronic mail with
can predict the probability of being in debt in order to the questionnaire attached were delivered to both
consume. Likewise, Fitzmaurice and Comegys (2006) undergraduate and graduate students attending uni-
found a positive correlation between materialism and versities in California, Washington, and Ohio in the
consumer spending. Furthermore, Limerick and Pelt- U.S. and universities in Seoul in South Korea with the
ier (2014) confirmed that social status and materialism aim to obtain samples that establish similar character-
increase credit card debts of college students. Thus, istics in terms of age and gender division. In order to
280 A. THOUMRUNGROJE

Table 1. Sample profile. Lewis Index (TLI) of 0.91, standardized root mean
*
Characteristics Total U.S. Korea square residual (SRMR) of 0.07, and root mean square
Sample size 659 355 304 error approximation (RMSEA) of 0.05. The factor
Gender loadings of the remaining items were significant (p <
Male 319 (48%) 191 (54%) 128 (42%)
Female 340 (52%) 164 (46%) 176 (58%) 0.00) and the standardized factor loadings were above
Age (years) 0.5 in both groups.
Mean 32.81 33.14 32.06
SD 12.78 13.18 11.81 Table 2 reports the results of scale assessment
Household income ($) after removing items with insignificant loadings.
< 10,001 77 (12%) 35 (10%) 42 (14%)
10,001–30,000 150 (23%) 104 (29%) 46 (15%) Given that most of the squared multiple correla-
30,001–50,000 134 (20%) 58 (16%) 76 (25%)
50,001–70,000 69 (10%) 35 (10%) 34 (11%)
tions (r2) were above 0.60 and all factor loadings
70,001–90,000 79 (12%) 43 (12%) 36 (12%) are significant (p < 0.00), all scales established con-
> 90,000 113 (17%) 67 (19%) 46 (15%)
vergent validity (Diamantopoulos and Siguaw


Percentages may not total up to 100 due to non-responses on demographic 2000). With composite reliability (rc) above 0.60 in
items.
all constructs, a sufficient level of construct reliabil-
control for sample equivalence, such non-probability ity in both samples was attained (Bagozzi and Yi
sampling technique is acceptable for a comparative 2012). Since all of the square roots of the average
study to acquire homogenous set of samples variance extracted (AVE) were larger than their
(Reynolds, Simintiras, and Diamantopoulos 2003). corresponding correlations, the constructs exhibited
Hence, the use of student samples seems justified. discriminant validity (Fornell and Larcker 1981)
After eliminating unusable questionnaires, the final across both nations (see table 4). Metric invariance
samples compose of 355 Americans and 304 South was also achieved after constraining all factor load-
Koreans. Table 1 illustrates the sample profile of this ings to be equal between the two groups since the
study. Dx2 (14) of 13.69 was insignificant (p D 0.47).
Thus, this indicates a similar interpretation of the
Measures scale items across cultures and the measures proved
to operate equivalently.
The questionnaire was developed based on existing The results of parameter estimates from a multiple-
scales. The items and sources are described in table 2. group structural equation modeling are reported in
The original scales in English were translated to table 5. The model x2 (407) was 1,019.03 (p < 0.00).
Korean using split translation (Craig and Douglas The overall model fits the data well (CFI D 0.91; TLI D
2005). Several bilinguals reviewed the translation in 0.90; RMSEA D .05; SRMR D .07). An insignificant
order to verify translation equivalence. The means Dx2 after constraining the factor loadings to be equiva-
and standard deviations of the key constructs are lent across nations (Dx2 D 15.62, p D 0.34) demon-
reported in table 3. strates metric invariance. However, the structural paths
were significantly different across groups (Dx2 D 41.32,
Results p D .02), which suggests that the relationships proposed
in this study were not consistent between nations.
Cross-national scale validation
To validate the scales across cultures, a multiple-group The direct impact of social media intensity
confirmatory factor analysis (CFA) was performed fol- on consumer spending behavior
lowing the procedure outlined in Steenkamp and Hypothesis 1 was only supported in the American sam-
Baumgartner (1998). Materialism was treated as a sec- ple since the path coefficients from social media intensity
ond-order construct, comprising of three first-order (SMI) to credit overuse behavior (COB) is positive and
constructs (centrality, happiness, and success). After significant (g U.S. D 0.22, p < 0.00), but was not sup-
eliminating two items with extremely low factor load- ported in the South Korean group (g Korea D 0.04, p >
ings (see details in table 2), the model of seven first- 0.10). Hypothesis 2 posits a positive relationship between
order and one second-order constructs achieved con- SMI and conspicuous consumption (CSC) and it was
figural invariance, yielding x2 (396) of 962.93 (p < supported in both groups as the SMI-CSC path was posi-
0.00), comparative fit index (CFI) of 0.92, Tucker– tive and significant (g U.S. D 0.16, p < 0.01; g Korea D 0.22,
 JOURNAL OF INTERNATIONAL CONSUMER MARKETING 281

Table 2. Scale assessment and CFA results.

Standardized loadingsa

Research constructs U.S. Korea

1. Social Media Intensity (aU.S. D 0.83, aKorea D 0.92; CRU.S. D 0.63, CRKorea D 0.73;
AVEU.S. D 0.37, AVEKorea D 0.48) (six-point scale, anchored by “very unlikely” and
“very likely”) Source: Bush and Gilbert (2002)
 How likely are you to genuinely enjoy the time you spend on the social media? 0.59 (15.91) 0.74 (11.20)
 How likely are you to feel that social media helps you forget about daily problems?c

 How likely are you to feel totally absorbed while you are on the social media? 0.73b 0.76b
 How likely are you to get so involved on the social media that you forget everything 0.91 (14.74) 0.96 (11.73)
else?
2. Materialism (aU.S. D 0.90, aKorea D 0.93; CRU.S. D 0.96, CRKorea D 0.95; AVEU.S. D
0.89, AVEKorea D 0.87) (six-point scale, anchored by “strongly disagree” and “strongly
agree”) Source: Richins (2004)
Centrality
 I try to keep my life simple as far as possessions are concerned. (R) c

 Buying things gives me a lot of pleasure. 0.76 (15.62) 0.88 (10.94)

 I like a lot of luxury in my life. 0.84b 0.78b
Happiness
 My life would be better if I owned certain things I do not have. 0.62 (11.08) 0.65 (8.09)
 I would be happier if I could afford to buy more things. 0.72 (13.01) 0.69 (11.10)
 It sometimes bothers me quite a bit that I cannot afford to buy all the things I would 0.75b 0.75b
like.
Success
 I admire people who own expensive homes, cars, and clothes. 0.79 (15.10) 0.84 (8.65)
 I like to own things that impress people. 0.84 (15.91) 0.75 (7.97)
 The things I own say a lot about how well I am doing in my life. 0.77b 0.69b
3. Credit Overuse Behavior (aU.S. D 0.90; aKorea D 0.82; CRU.S. D 0.78, CRKorea D 0.80;
AVEU.S. D 0.53, AVEKorea D 0.49) (six-point scale, anchored by “never” and “all the
time”) Source: Richins (2011) adapted from Roberts and Jones (2001)
 How often did you make only the minimum payment on your monthly credit card 0.62 (15.91) 0.54 (11.20)
bills?
 How often were your credit cards at or near their maximum limit? 0.75b
0.69b
 How often were you behind in making credit card payments? 0.93 (19.08) 0.94 (11.78)
 How often were you behind in making other debt payments? 0.88 (18.26) 0.96 (11.85)
4. Conspicuous Consumption (aU.S. D 0.91, aKorea D 0.91; CRU.S. D 0.83, CRKorea D
0.84; AVEU.S. D 0.46, AVEKorea D 0.43) (six-point scale, anchored by “strongly
disagree” and “strongly agree”) Source: Chung and Fischer (2001)
 Before purchasing a product, it is important to know what friends think of different 0.77b 0.77b
brands or products I am considering.
 Before purchasing a product, it is important to know what kinds of people buy brands 0.90 (18.40) 0.80 (10.62)
or products I am considering.
 Before purchasing a product, it is important to know what others think of people who 0.91 (18.53) 0.93 (12.36)
use certain brands or products I am considering.
 Before purchasing a product, it is important to know what brands or products to buy 0.84 (17.03) 0.88 (11.73)
to make a good impression on others.
5. Impulse Buying (aU.S. D 0.86, aKorea D 0.86; CRU.S. D 0.73, CRKorea D 0.75; AVEU.S.
D 0.46, AVEKorea D 0.50) (six-point scale, anchored by “strongly disagree” and
“strongly agree”) Source: Beatty and Farrell (1998)
 When I go shopping, I buy things that I had not intended to purchase. 0.85b 0.83b
 I am a person who makes unplanned purchases 0.91 (18.06) 0.93 (11.54)
 It is fun to buy spontaneously. 0.70 (14.53) 0.72 (9.67)

a
t-values are in parentheses.
b
Item fixed for model estimation.
c
Item excluded after validity and reliability check.

Table 3. Mean and standard deviations of key constructs.

p < 0.01). The relationship between SMI and impulse
buying (IPB) was positive and significant in the Ameri-
U.S. (n D 355) Korea (n D 304)
Mean (SD) Mean (SD) can group (g U.S. D 0.35, p < 0.00) but insignificant in
the South Korean group (g Korea D 0.15, p > 0.10), so
Social media intensity 3.53*** (1.27) 3.10 (1.29)
Materialism 2.44 (1.16) 3.77** (1.18) hypothesis 3 was partially supported. Therefore, social
Credit overuse behavior 3.16*** (1.29) 1.99 (1.19) media intensity has a direct impact on three consumer
Conspicuous consumption 3.15 (1.35) 3.51** (1.22)
Impulse buying 3.45*** (1.35) 2.88 (1.32) spending behaviors in the U.S. while it only influences
y D p < 0.10;
D p < 0.05;

D p < 0.01;


D p < 0.001 denote that the
conspicuous consumption in South Korea.
mean is higher between groups.
282 A. THOUMRUNGROJE

Table 4. Correlations and discriminant validity.

U.S. Korea

SMI MAT COB CSC IPB SMI MAT COB CSC IPB

SMI 0.61 0.69

MAT 0.51*** 0.73 0.44*** 0.70
COB 0.40*** 0.46*** 0.94 0.09 0.11 0.93
CSC 0.43*** 0.61*** 0.30*** 0.68 0.47*** 0.55*** 0.11 0.66
IPB 0.44*** 0.41*** 0.22*** 0.22*** 0.69 0.27** 0.32*** 0.11 0.20* 0.71

Note: Bolded numbers on the diagonal elements represent the square root of the average variance extracted (AVE).
y D p < 0.10;
D p < 0.05;

D p < 0.01;


D p < 0.001.

The mediating role of materialism social media intensity and credit overuse behavior in
Hypothesis 4 postulates a positive relationship the American sample. However, materialism serves as
between SMI and materialism (MAT) and it was a full mediator in the SMI-MAT-IPB relationship in
strongly supported in both samples (bU.S. D 0.51, p < the South Korean sample. The results of the hypothe-
0.00; bKorea D 0.39, p < 0.00). Since the MAT-COB sis testing are depicted in figure 1.
path was only significant in the American sample (b
U.S. D 0.35, p < 0.00) but not in the South Korean
Discussion
sample (bKorea D 0.07, p > 0.10), hypothesis 5 was not
fully supported. The findings of Hypothesis 1, 4, and 5 This study contributes to theoretical advancements in
together indicate that materialism is a partial mediator international marketing by integrating marketing, psy-
in the SMI-COB relationship in the American group chology, and international business literature in
while social media intensity does not have either direct explaining the phenomenon of how social media
or indirect effects on credit overuse behavior among influences consumer spending behavior across two
South Koreans. Hypothesis 6 also gained strong sup- distinct cultures through Baumeister’s (2002) “self-
port in both national groups (bU.S. D 0.52, p < 0.00; regulation/control” concept and Markus and
bKorea D 0.43, p < 0.00, respectively). This result cou- Kitayama’s (1991) cross-cultural construal of “self”
pled with those of Hypothesis 2, 4, and 6 reveal that perspectives. Consistent with Hofstede, Hofstede, and
social media intensity has both direct and indirect Minkov (2010), who assert that South Koreans are
influences on conspicuous consumption. In other highly pragmatic and restraint while Americans are
words, materialism serves as partial mediation in the short-term oriented and very indulgent, the results
SMI-MAT-CSC links in both groups. Finally, hypoth- confirm that South Koreans have better self-control
esis 7, which elucidates that there exists a positive and act less impulsively than Americans. As shown in
MAT-IPB relationship, was significantly supported in figure 1, the three non-significant paths in the model
the American group (bU.S. D 0.28, p < 0.00), and mar- are SMI-COB, SMI-IPB, and MAT-COB in the South
ginally supported in the South Korean group Korean sample. When taking into account the means
(bKorea D 0.28, p < 0.10). Integrating the results of of the constructs displayed in table 3, the results of
hypothesis 3, 4, and 7, it can be concluded that materi- this study further suggest that South Koreans are
alism partially mediates the relationship between highly long-term oriented and disciplined. Although

Table 5. Unstandardized structural coefficients of direct, indirect, and total effects (with standard errors).
Direct Indirect Total

U.S. Korea U.S. Korea U.S. Korea

SMI ! MAT 0.51*** (0.07) 0.39*** (0.08)

MAT ! COB 0.35*** (0.07) 0.07 (0.08)
MAT ! CSC 0.52*** (0.07) 0.43*** (0.09)
MAT ! IPB 0.28*** (0.08) 0.28* (0.11)
SMI ! COB 0.22*** (0.07) 0.04 (0.07) 0.18* (0.04) 0.03 (0.03) 0.40*** (0.06) 0.07 (0.08)
SMI ! CSC 0.16** (0.06) 0.22** (0.07) 0.27* (0.05) 0.18** (0.05) 0.42*** (0.06) 0.39* (0.10)
SMI ! IPB 0.35*** (0.08) 0.15 (0.09) 0.14* (0.05) 0.11* (0.05) 0.49*** (0.07) 0.26** (0.08)

y D p < 0.10;
D p < 0.05;

D p < 0.01;


D p < 0.001.
 JOURNAL OF INTERNATIONAL CONSUMER MARKETING 283

0.22***
(0.07)
0.04
Social Media (0.07) Credit Overuse
Intensity 0.16** Behavior
(0.06)
0.22**
(0.07)
0.35***
0.51*** (0.08)
(0.07) 0.15
0.39*** (0.09)
(0.08)
0.52*** Conspicuous
(0.07)
0.43***
Consumption
(0.09)
0.35***
(0.07)
0.07
(0.08)
0.28***
(0.08)
0.28*
(0.11) Impulse
Materialism
Buying

Figure 1. Unstandardized structural path coefficients for hypothesis testing (with standard errors) Note: Numbers on the top of the line
represent parameter estimates of U.S. and the numbers on the bottom are those of South Korea. Standard errors of estimates are in
parentheses. y D p < 0.10;
D p < 0.05;

D p < 0.01;


D p < 0.001.

the mean of materialism is higher among South ety. Since the society is long-term oriented, its citizens
Korean consumers (x Korea D 3.77 > x U.S. D 2.44; p are compelled to conform. Unlike American consumers
< 0.01), they tend to be more careful in their credit who value “self” more than “group” as part of their indi-
usage (x Korea D 1.99 < x U.S. D 3.16; p < 0.00) and vidualist character, they rather fulfill their own needs.
less tempted to buy things based on impulse than Therefore, Americans have a higher propensity to over-
American consumers (x Korea D 2.88 < x U.S. D 3.45; use their credit and are easily influenced by social media
p < 0.00). This is because South Korea is the most when their selves wish to do so. Generally, materialism
pragmatic culture with Hofstede’s score of 100 on a leads to overspending and larger consumer debts, behav-
100-point index, which emphasizes thrift and perse- iors that are considered to be detrimental to the society
verance toward long-term goals (Hofstede, Hofstede, (Podoshen, Andrzejewski, and Hunt 2014). The findings
and Minkov 2010). As such, the non-significant SMI- of this study demonstrate that such relationships seem
MAT-COB and SMI-IPB relationships are not sur- to be intensified among Americans, but not among
prising. South Koreans. These results provide a crucial implica-
Nevertheless, with respect to conspicuous consump- tion to both national policy makers and marketing
tion, South Koreans demonstrate a higher degree of this strategists in crafting ways to minimize consumer over-
behavior (x Korea D 3.51 > x U.S. D 3.15). When com- spending and debts. Specifically, the Confucian ontology
paring all structural paths between two countries, Amer- of “long-term orientation” should be instilled to ensure
icans establish stronger relationships than South that people are not insolvent while they might still be
Koreans in all except one, that is, the SMI-CSC path (g consuming conspicuously and impulsively.
U.S. D 0.16, p < 0.01; g Korea D 0.22, p < 0.01). This result Among South Koreans, while materialism does not
reveals that South Koreans are more influenced by social help mediate the influence of social media on credit
media when it comes to the urge to consume conspicu- overuse nor directly leads to credit overuse itself, it
ous products than Americans. Yet, South Koreans will fully mediates the SMI-MAT-IPB relationship. Since
not spend beyond their means or be in debt in order to social media intensity increases materialism, which
acquire goods. This, again, implicates the pragmatism has a positive effect on the consumption of conspicu-
that is rooted in their culture. Also, it could be the collec- ous goods and on impulsive purchases in both con-
tive nature of South Korea that makes people care more sumer groups, it signifies the role of social media in
about what they do in order to be accepted by their soci- today’s international marketing activities. Across both
284 A. THOUMRUNGROJE

national samples, social media intensity shows a sig- to be discussed. Due to the cross-sectional nature and
nificant impact on enhancing materialism. This find- the non-probability sampling technique with relatively
ing implies that values can be infused through social small sample sizes, the findings may serve as a prelimi-
media. Thus, it is crucial that firms emphasize the nary examination of the phenomenon. Expanding the
application of this channel to not only reach consum- study over several other cultures with larger samples
ers, but also to promote certain moral values given would enable the generalizability of the findings. In
that the global trend indicates a substantial growth in addition, future research may extend this study by
the number of people engaging and relying tremen- incorporating other factors such as the role, character-
dously on social media. This study also illustrates that istics, and traits of network opinion leaders, the
even consumers from a highly restraint culture such strength of ties, the availability and accessibility of
as South Korea can be susceptible to act impulsively credit, and social media type to explore consumer
given the indirect influence of social media through behavior in today’s ever-changing competitive plat-
materialism. This finding unveils that when people are form. Moreover, a longitudinal ethnographic method-
repeatedly and frequently exposed to messages, pic- ology combining with indirect observation through
tures, advertisements, or stories that demonstrate archival measures in tracing consumer behavior is
wealth, happiness, and success through ownership of highly recommended for more in-depth and accurate
products and consumption of services, they tend to studies. Finally, an experimental study designed to
become more materialistic, leading to the desire to capture the impact of using social media as a means to
consume conspicuously and impulsively or even promote long-term oriented value to enhance self-
spending beyond their means, which can be viewed as control that enables people to refrain themselves from
a negative consequence of materialism. Nonetheless, negative behaviors such as overspending is deemed
such negative behavior of credit overuse is only evi- warranted.
dent when self-control fails. Given the insignificant
relationships found in the South Korean sample dis-
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