The correlation between materialism, social comparison and status consumption among students

T. Pelser; P. J. van Schalkwyk; J. H. van Schalkwyk

doi:10.20853/37-2-5025

T. Pelser Gordon Institute of Business Science, University of Pretoria
P. J. van Schalkwyk North-West University, Potchefstroom https://orcid.org/0000-0002-6800-4978
J. H. van Schalkwyk North-West University, Potchefstroom https://orcid.org/0000-0001-8887-9715

DOI: https://doi.org/10.20853/37-2-5025

Keywords: materialism, social comparison, status consumption, financial resources, student finances, students

Abstract

South African students face many challenges when completing their tertiary education, finances being one of the most significant. This is not only due to a lack of monetary resources but also to students’ inability to manage their available resources. Students often make financial decisions not in their own interest due to both internal and external factors. Consequently, many students do not finish their studies or end up in debt.

The research reported on in this article examined the correlation between three factors which influence spending and debt according to previous research, namely Materialism, Social Comparison and Status Consumption. These concepts refer to how much people value material possessions and how they compare their possessions to those of others and spend on status-conferring possessions to improve their image.

This study used convenience sampling of 630 Generation Y students registered from four university campuses. Data collection was conducted using a self-reporting questionnaire. Data analysis comprised 597 valid questionnaires. The results reveal that Status Consumption can be predicted using Materialism and Social Comparison tendencies.

The net result of this situation is that students first compare themselves to their peers and then spend money to feel better about themselves or present an improved image to their peers instead of investing their limited resources in their education. Very often, this spending is funded using credit. According to existing literature, this is true for students and the population at large and is one of the main drivers of the current debt problems South Africa is experiencing.

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Author Biographies

T. Pelser, Gordon Institute of Business Science, University of Pretoria

Professor Theuns Pelser was appointed at UKZN from 1 April 2015 as the Dean and Head of School for the Graduate School of Business and Leadership. Prior to his appointment he was the Director of the Graduate School of Business and Government Leadership, North-West University, South Africa. Before that he was the Head of Regenesys Business School (RBS) and Strategy Manager at Sasol. He holds a PhD in Strategic Management from the Potchefstroom University, which he obtained in 2001.

His academic interest is strategic management, within the fields of strategic marketing and small business development, especially within the context of technology and innovation management. Prof. Theuns had published 50 academic peer reviewed papers in the last five years and supervised 16 postgraduate dissertations/theses that successfully resulted in the conferring of degrees.

P. J. van Schalkwyk, North-West University, Potchefstroom

School of Management Sciences

J. H. van Schalkwyk, North-West University, Potchefstroom

School of Management Sciences

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The correlation between materialism, social comparison and status consumption among students

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