Materialism, Transformation Expectations, and Spending: Implications for Credit Use

The document from 2011 explores the concept of transformation expectations, which are the beliefs that acquiring goods will lead to significant life changes, and how these expectations relate to materialism and credit use. The study found that individuals with high levels of materialism are more likely to have transformation expectations, which in turn lead to a more favorable attitude towards debt and increased credit overuse. The research involved a pilot study with 168 college students and a main study with 386 respondents from a consumer panel, using regression models to test hypotheses. The findings indicate that transformation expectations fully mediate the relationship between materialism and credit overuse, suggesting that materialists' expectations of life transformations through acquisitions are associated with credit overuse. The study highlights the importance of addressing psychological aspects of credit use in financial literacy programs and suggests that further research could explore the broader impact of transformation expectations on consumer behavior and well-being.