Relationship Between Personal Financial Discipline and Impulse Buying Behaviour

Abstract

This paper explores the connection between a personal financial discipline and an impulse buying behaviour based on the self-regulation theory and Daoist studies. Quantitative, cross-sectional design was adopted and a structured questionnaire was used to collect primary data on 350 urban consumers. The research focuses on the direct impact of personal financial discipline on impulse buying behaviour, and moderating impact of self-regulation and mediating impact of Daoist balance orientation. The analysis of the results with the help of the SEM shows that personal financial discipline is the very factor that decreases the impulse buying behaviour considerably. The mediation of this relation was noted to be partially done by self-regulation, which implies that disciplined people have a possibly stronger emotional and cognitive control and thus restrain impulsive consumption. Moreover, the relation is moderated by Daoist alignment of orientation reducing the financial discipline effect, which had more strength because of moderation and restraint, enhanced by the moderator Daoist alignment of orientation. The results add to the literature by combining behavioral finance and philosophical wisdom that provides a comprehensive perspective on consumer behaviour.