Intention to Use PayLater among Young Muslim Consumers: The Role of Islamic Religious Commitment

Sulhaini Sulhaini; Baiq Handayani Rinuastuti; Siti Nurmayanti

doi:10.29244/jcs.10.2.197-223

Authors

Sulhaini Sulhaini Department of Management, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia http://orcid.org/0000-0001-9170-4844
Baiq Handayani Rinuastuti Department of Management, Faculty of Economics and Business, University of Mataram, Mataram, Indonesi
Siti Nurmayanti Department of Management, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia

DOI:

https://doi.org/10.29244/jcs.10.2.197-223

Keywords:

conspicuous consumption, global luxury brand admiration, intention to use PayLater, Islamic religious commitment, materialism, young Muslim consumers

Abstract

Background: Compared to other consumer groups, young Indonesian consumers have a stronger desire for debt and overconsumption

Purpose: This study aims to develop and empirically test a model of the influence of materialism and global luxury brand admiration on conspicuous consumption and intention to use conventional PayLater, with Islamic religious commitment as a moderating variable.

Method: Data was collected from consumers on the island of Lombok, Indonesia. The island was chosen because it is widely known for its religious community. The study followed a quantitative approach. The respondents were young Muslim consumers between 17 and 35 years of age who were active shoppers in the marketplace. This research involved 364 conveniently selected respondents.

Findings: The study indicates that Islamic religious commitment can mitigate the influence of materialism on conspicuous consumption. This commitment also reduces the impact of conspicuous consumption on the willingness to go into debt by using conventional PayLater. The findings also reveal that young Muslim consumers desire global luxury brands to show off.

Conclusions: Islamic religious commitment weakens materialism's influence on conspicuous consumption and intention to use PayLater because consumers understand and obey their religion's teachings. Youthful materialistic Muslim consumers may seek comfort, equilibrium, and a high quality of life rather than a desire to flaunt their possessions.

Research implication: This study indicates that young Muslim consumers could become the largest users later. To assist them in avoiding riba, PayLater’s owners should provide services according to Islamic teaching and/or encourage them to restrict their use of its services to less than the interest-free period of 30 days.

Author Biographies

Sulhaini Sulhaini, Department of Management, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia

Sulhaini is a faculty member of Department of Management, the University of Mataram. Her research interests are consumer behavior, relationship marketing, and tourism marketing. She received her BA in Management from the University of Mataram, M.Sc in International Marketing and Management from Copenhagen Business School – Denmark; and Ph.D in International Marketing from Sheffield Hallam University, England – UK. She has published her research works at some Indonesian Business Journals and reputable international journals such as Asia Pacific Management Review, Tourism and Hospitality Research and Journal of Relationship Marketing
Baiq Handayani Rinuastuti, Department of Management, Faculty of Economics and Business, University of Mataram, Mataram, Indonesi

Baiq Handayani Rinuastuti is a lecturer and the head of the Department of Management, University of Mataram. She attained bachelor and master degrees from University of Mataram and received doctoral degree from Brawijaya University-Indonesia. Her research and Publications Focus on Marketing Management, especially consumer behaviour and tourism marketing. She has published in some Indonesian Business Journals and reputable international journals.
Siti Nurmayanti, Department of Management, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia

Siti Nurmayanti is a lecturer and the secretary of the Department of Management, the University of Mataram. Her research interests are organizational behavior and human resource management. She received her BA in Management from the University of Mataram, she reached her master and doctoral degrees in Human Resource Management from Brawijaya University – Indonesia. She has published her research works at some at some Indonesian Business Journals and international journals.

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