Consumer Socialization on Adolescent Impulsive Buying Behavior through School and Parents: A Random Effects Model

Abstract

This study examines the effects of consumer socialization on Korean adolescent impulsive buying behavior. The current study used the third and sixth waves from the Korean Education and Employment Panel (KEEP) survey that has been administered by the Korea Research Institute for Vocational Education and Training since 2004. The subjects were high school juniors and university sophomores in 2006 and 2009, respectively. The final sample for panel regression analysis included 1,718 individuals. Two major agents of socialization (school and parents) were utilized in our model. Parent financial behavior (if the parents had savings) and the effectiveness/helpfulness of economics education in middle or high school were included in our estimation model. Two categories were included as individual factors: (1) psychological aspects and personal traits covering variables such as stress from self-image, academic stress, self-regulation, and a tendency of risky behavior and (2) financial behavior and attitudes, which include work experience, amount of money in hand, shopping habits, and if parental financial support is expected after high school graduation. The results from a random effects model revealed that the effects of consumer socialization through school was marginally significant, while through parents was not. Stress from self-image and the level of self-regulation were found to be significant. Neither risky behavior nor academic stress were a significant factor for impulsive buying behavior. The amount of money available in hand and shopping habits showed a significant influence. Implications for educators, parents and policy makers are identified.