The Role of Religious Commitment and Conspicuous Consumption in
Predicting Compulsive Buying of Islamic Goods: A Case Study of
Muslim Consumers in Indonesia
Jhanghiz Syahrivar
1,2
and Chairy
2
1
Institute of Marketing and Media, Corvinus University of Budapest, Fővám tér 8, Budapest, Hungary
2
Faculty of Business, President University, Jl. Ki Hajar Dewantara, Bekasi, Indonesia
Keywords: Religious Commitment, Conspicuous Consumption, Compulsive Buying, Compensatory Consumption
Abstract: Despite the fact that halal businesses are mushrooming all over the world, partly as a result of Muslims’ mass
migration in the last decade, some empirical studies suggest that Halal consumptions are not always
religiously motivated decisions. Consumption of Islamic goods as a form of the compensatory mechanism
remains an area less explored in Islamic research. This study aims to investigate the role of religious
commitment and conspicuous consumption in predicting compulsive buying of Islamic goods among 267
Muslim consumers in Indonesia. The data was processed using PLS-ADANCO software. This study generates
three important findings: 1) Muslims consumers who are less committed in religious practices would
compensate through status-conveying Islamic goods 2) conspicuous consumption has a strong and positive
relationship with compulsive buying of Islamic goods and 3) conspicuous consumption and compulsive
buying may belong to a wider construct called compensatory consumption. This research is significant in
explaining a form of neurotic and chronic consumption behaviors in the Islamic context, such as compulsive
buying of Islamic goods.
1 INTRODUCTION
In the last decade, the world has witnessed the rise of
halal businesses fostered by Muslims' mass migration
to Western countries. Muslims are a large and
lucrative market representing around 24 percent of
the global population (Pew Research, 2017), yet they
are essentially fragmented; Muslims are different in
terms of religious commitment, culture, and
education, which makes global offerings quite
challenging. It has been reported that big Western
fashion brands were unable to crack the Muslim
market because of their lack of cultural awareness
(The Islam News, 2018); hence, marketing myopia.
Indonesia is the world's largest Muslim majority
country in the world, with more than 227 million
adherents (The World Atlas, 2019). Muslim and non-
Muslim business practitioners alike capitalize on the
market by offering Islamic goods and services, from
Halal foods to Islamic fashion. However, there has
been a growing empirical pieces of evidence that the
consumptions of Islamic goods are not solely driven
by religious ideals, but instead a compensatory
mechanism of some sort (Sobh, Belk & Gressel,
2011; Mukhtar & Mohsin Butt, 2012; Hassim, 2014;
El-Bassiouny, 2017; Syahrivar & Pratiwi, 2018).
Compensatory consumption of Islamic goods and
services is an area less studied in Islamic research.
The term was popularized by Woodruffe (1997),
which encompassed a wide range of neurotic and
chronic consumption behaviors, such as conspicuous
consumption and compulsive buying. One of the
early studies which precisely used the term
“compensatory consumption” in the context of
Indonesian Muslims was conducted by Syahrivar, and
Pratiwi (2018) who concluded in their research that
religiosity had a significant yet negative correlation
with compensatory consumption, indicating that
compensatory consumption was driven by self-
deficits as Woodruffe (1997) suggested or in this
particular case, lack of religiosity. Moreover, a study
by Pace (2014) suggested a complex relationship
between religiosity and religious brands: a trade-off
can occur between the religious brand and religious
commitment, meaning the people who are high in
religious commitment would be less dependent on
religious goods to express themselves.
Syahrivar, J. and Chairy, .
The Role of Religious Commitment and Conspicuous Consumption in Predicting Compulsive Buying of Islamic Goods: A Case Study of Muslim Consumers in Indonesia.
DOI: 10.5220/0009958300050011
In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 5-11
ISBN: 978-989-758-471-8
Copyright
c
2020 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
5
Woodruffe (1997) previously suggested that both
conspicuous consumption and compulsive buying
belonged to a wider or latent construct called
compensatory consumption, although no empirical
evidence was provided to support the claim.
However, a study by Roberts (2000), which treated
the two as different constructs suggested that
conspicuous consumption played a role in predicting
compulsive buying among college students.
The purpose of this research is multifold: first, we
wished to investigate the relationship between
religious commitment, conspicuous consumption,
and compulsive buying among 267 Muslim
consumers in Indonesia. Second, we wished to know
if Woodruffe’s theory on compensatory consumption,
which is a multi-variable construct, could be
empirically proven.
2 LITERATURE REVIEW
Religiosity is a multidimensional construct. Over the
years, various researchers have come up with their
constructs to explain religiosity. While there are some
common features across different religions, there are
also dissimilarities in terms of doctrines and practices
which make assessing different religious groups
using a single measurement quite challenging. One
such attempt was made by Huber and Huber (2012),
who came with a so-called The Centrality of
Religiosity Scale (CRS) consisting of five
dimensions: intellectual, ideology, public practice,
private practice, and religious experience. Some
Muslim scholars would rather use a tailored construct
to assess Muslim consumers. For instance, Zamani-
Farahani and Musa (2012) measured Islamic
religiosity using three dimensions: belief, piety, and
practice. Meanwhile, El-Menouar (2014) measured
Islamic religiosity using five dimensions: basic
religiosity, central duties, experience, knowledge,
and orthopraxis. Regardless of the dimensions, we
argued that one's claim of religiosity should be proven
at some point through religious practices. In this
research, we focused our attention on the religious
practice of Muslim consumers, which we called
religious commitment. Therefore, we defined
religious commitment as the commitment of Muslim
consumers on upholding prayer, fasting, and halal
dietary.
Compensatory consumption is a consumption-
driven by perceived emotional deficits (Woodruffe,
1997) and self-discrepancy (Mandel, Rucker, Levav
& Galinsky (2017). The concept of “compensatory
consumption” was popularized by Woodruffe in
1997. The researcher mentioned that the concept was
linked to other known consumption behaviors, such
as addictive consumption, self-gift giving,
compensatory eating behavior, and conspicuous
consumption. Later, Kang & Johnson (2011)
introduced the term "retail therapy" into the concept
along with its measurement; however, their research
more focused on therapeutic aspects of shopping
activities rather than the symbolic benefits of the
goods purchased. Mandel et al. (2017) introduced the
first model of compensatory consumption behavior,
which includes five factors; however, no validity and
reliability testing was provided. Finally, Koles,
Wells, and Tadajewski (2018) came up with a quite
useful meta-analysis of compensatory consumption
literature, but this time another term which was
"impulsive buying" was being introduced into the
concept. Therefore, as Woodruffe (1997) had also
noted, compensatory consumption was a complex
concept that encompassed both neurotic and chronic
consumption behaviors.
Compensatory consumption is not only linked to
generic goods but also religious goods. A study by
Sobh, Belk, and Gressel (2011) among Muslim
women in the Arabian gulf revealed that Muslim
women might favor Halal fashion because it gave
them a sense of uniqueness and superiority over
expatriates and foreigners. Similarly, a study by El-
Bassiouny (2017) among Muslim consumers in the
UEA revealed a unique intersection between halal
and luxury brands between modesty and vanity
where Muslims engaged in conspicuous
consumptions in order to reflect their modernity,
luxury, and uniqueness. The intention to show off,
coupled with perceived self-congruity, may influence
customers' purchase decisions (Raut, Gyulavári &
Malota, 2017). In this research, conspicuous
consumption is defined as the consumption of Islamic
goods driven by the need to signal one’s positive
attributes, whether true or false, to others. Whereas,
Islamic goods are defined as goods marketed towards
Muslim consumers for the purpose of upholding
specific Islamic tenets.
In a comparative study by Lindridge (2005)
among Indians living in Britain, with Asian Indians
and British Whites, suggested that people with low
religiosity (or religious commitment) would rely
more on status-related products. In their study,
Syahrivar and Pratiwi (2018) found an inverse
relationship between religiosity and compensatory
consumption. Moreover, Pace (2014) stipulated a
trade-off between religiosity and religious
dependency. In this research, we hypothesized as
follows:
ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management
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H1: The higher the religious commitment, the
lower the conspicuous consumption.
Compulsive buying is the preoccupation to
excessively and repetitively spend money owned or
borrowed for goods and services as a result of
negative events (Lee & Mysyk, (2004). Compulsive
buying is also reported occurring in the Muslim
context; a study by Islam et al. (2017) among young
adult Pakistanis revealed that materialistic young
adults were more prone to compulsive buying,
although it is discouraged in Islam. A study by
Thomas, Al-Menhali, and Humeidan (2016) among
Emirati women indicated that cultures highly
influenced by Islam, which restricted much freedom
for Muslim women, fostered compulsive buying
activities. Compulsive buying may be facilitated
through the ownership of credit cards; however, a
study by Idris (2012) suggested that Muslim
consumers spent less per month on Islamic credit
cards suggesting the role of religiosity in minimizing
compulsivity. In this research, we hypothesized as
follows:
H2: The higher the religious commitment, the
lower the compulsive buying.
A study by Roberts (2000) concluded that
conspicuous consumption played a role in predicting
compulsive buying among college students.
Similarly, Phau & Woo (2008) argued that the desire
to compete in the ownership of status-signaling goods
and services could lead to compulsive buying. A
study by Palan, Morrow, Trapp, and Blackburn
(2011) among U.S. college students indicated that the
desire to acquire status-related goods (e.g., power and
prestige) influenced compulsive buying. In this
research, we hypothesized that the greater the need to
acquire status-signaling Islamic goods, the greater the
compulsiveness tendency towards Islamic goods.
H3: The higher the conspicuous consumption,
the higher the compulsive buying.
3 METHODOLOGY
Researchers gathered convenience sampling of 267
valid Muslim respondents (159 females: 108 males)
who lived in Jakarta, the capital city, where there are
wide options of Islamic businesses. The descriptive
analysis suggested that about 73 percent of our
respondents engaged in conspicuous consumptions,
and about 66 percent of them engaged in compulsive
buying of Islamic goods. Our respondents were
considered moderate in religiosity.
The 5-item Likert scale questionnaires were
distributed in several big shopping places,
particularly where there were Islamic retailers. The
data was then analyzed using PLS-ADANCO
software, promising better features than other PLS
software. We analyzed the data based on the guideline
provided by Henseler, Hubona, and Ray (2016).
The measurement for religious commitment was
adapted from the Islamic religiosity scale developed
by El-Menouar (2014). The measurement for both
conspicuous consumption and compulsive buying
was adapted from Syahrivar and Pratiwi (2018) and
Edwards (1993) consecutively. Table 1 presents valid
variables, indicators, and their reliabilities used in this
research.
Table 1: Variables, Indicators, and Reliability.
Variable
Indicators
Measurements
Reliability
Religious
Commitment
1. Frequency of
performing the
ritual prayer
(PRT1).
2. Fasting during
Ramadan (PRT2).
3. Halal consumption
(PRT3).
Likert Scale 1-
5
0.7680
Conspicuous
Consumption
1. Purchasing Islamic
goods to signal
one’s positive
image (STA1).
2. Purchasing Islamic
goods to signal
one’s status in
society (STA2).
3. Purchasing
Islamic goods to
signal one’s faith
(STA3).
0.8252
Compulsive
Buying
1. The preoccupation
with purchasing
Islamic goods that
one normally
cannot afford
(COM1).
2. The preoccupation
with purchasing
Islamic goods
even if one has to
pay using credit
cards or
installments
(COM2).
3. If one has some
money left at the
end of the pay
period, he or she
just has to spend it
on Islamic goods
(COM 3).
0.8512
Figure 1 presents the theoretical model of this
research:
The Role of Religious Commitment and Conspicuous Consumption in Predicting Compulsive Buying of Islamic Goods: A Case Study of
Muslim Consumers in Indonesia
7
Figure 1: The theoretical model generated by PLS-
ADANCO.
As can be seen in Figure 1, our model has 1
exogenous, namely Religious Commitment, and 2
endogenous variables, namely Conspicuous
Consumption, and Compulsive Buying.
4 DATA ANALYSIS AND
DISCUSSION
Table 2: The goodness of model fit (saturated and estimated
model).
Value
HI95
HI99
SRMR
0.0602
0.0999
0.1261
d
ULS
0.1631
0.4489
0.7154
d
G
0.1335
0.1339
0.1900
The goodness of model fit of the PLS model is
measured through SRMR, or standardized root means
square residual. Based on Table 2, the SRMR of the
model is 0.0602. According to Henseler, Hubona, and
Ray (2016), the cut-off of less than 0.08 is adequate
for the PLS model. Moreover, for the theoretical
model to be true the value of dULS cannot exceed the
values of the 95%-percentile (“HI95”) and the 99%-
percentile (“HI99”) (Henseler, 2017). Moreover, both
saturate and estimated models have the same values
indicating a relatively good model.
Table 3: Construct Reliability.
Dijkstra-
Henseler's rho
A
)
Jöreskog's
rho (ρ
c
)
Cronbach's
alpha(α)
0.8274
0.8240
0.8252
0.8512
0.8508
0.8512
0.7833
0.7608
0.7680
Table 3 presents the construct reliability.
According to Henseler, Hubona, and Ray (2016), for
each construct to be reliable, Dijkstra-Henseler's rho
A
) should be higher than 0.7, and Cronbach's
alpha(α) should be higher than 0.7. In this regard, all
constructs in the model satisfy the requirements for
construct reliability.
Table 4: Convergent Validity.
Construct
The average variance extracted
(AVE)
Conspicuous
Consumption
0.6102
Compulsive Buying
0.6554
Religious Commitment
0.5210
Table 4 presents the convergent validity.
According to Henseler, Hubona, and Ray (2016), the
Average Variance Extracted (AVE) for each variable
should be higher than 0.5. In this regard, all variables
satisfy this requirement.
Table 5: Discriminant Validity: Fornell-Larcker Criterion.
Construct
Conspicuous
Consumption
Compulsive
Buying
Religious
Commitment
Conspicuous
Consumption
0.6102
Compulsive
Buying
0.5714
0.6554
Religious
Commitment
0.0354
0.0440
0.5210
Squared correlations; AVE in the diagonal.
According to Henseler, Hubona, and Ray (2016),
factors with theoretically different concepts should
also statistically be different. Table 5 presents
discriminant validity using Fornell-Larcker Criterion.
According to Henseler, Hubona, and Ray (2016), a
factor's AVE should be higher than its squared
correlations with all other factors in the model. In this
regard, all factors satisfy the requirement.
Table 6: Loadings.
Indicator
Conspicuous
Consumption
Compulsive
Buying
Religious
Commitment
PRT1
0.8028
PRT2
0.7854
PRT3
0.5493
STA1
0.7404
STA2
0.7584
STA3
0.8410
COM1
0.7910
COM2
0.8098
COM3
0.8274
ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management
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Table 6 presents the factor loadings. Each
indicator is statistically placed in the right factor as
theorized.
Table 7: R-Squared.
Construct
Coefficient of
determination (R
2
)
Adjusted
R
2
Conspicuous
Consumption
0.0354
0.0318
Compulsive Buying
0.5761
0.5729
Table 7 presents the R-squared. Compulsive
buying has an adjusted R
2
of 0.5729, meaning about
57.29 percent variance in compulsive buying of
Islamic can be explained by the variables included in
the model. The rest is due to other variables not
included in the model.
Table 8: Effect Overview.
Effect
Beta
Indirect
effects
Total
effect
Cohen's
f
2
Note
Conspicuous
Consumption ->
Compulsive
Buying
0.7427
0.7427
1.2554
Significant
Religious
Commitment ->
Conspicuous
Consumption
-
0.1882
-
0.1882
0.0367
Significant
Religious
Commitment ->
Compulsive
Buying
-
0.0700
-0.1398
-
0.2098
0.0112
Not
Significant
Table 8 presents the direct and indirect effects
among the variables included in the model. Religious
commitment significantly influenced conspicuous
consumption, and the nature of the relationship is
negative; hence, hypothesis 1 is accepted. This result
is in line with Lindridge (2005) and Syahrivar &
Pratiwi (2018). Religious commitment does not
significantly influence compulsive buying; hence,
hypothesis 2 is rejected, although the direction of the
relationship between the two variables was correctly
predicted. A study by Idrus (2012) provided a hint
that there might be some mediating factors at play in
the relationship between the two, such as whether
Muslim customers owned a credit card or not.
Moreover, a study by Harnish & Bridges (2015)
concluded that irrational belief was associated with
compulsive buying only for those who scored high on
narcissism, suggesting the role of personality
(disorder). Finally, conspicuous consumption
significantly and strongly influenced compulsive
buying, and the nature of the relationship is positive;
hence, hypothesis 3 is accepted.
As noted earlier in this article, Woodruffe (1997)
speculated that both conspicuous consumption and
compulsive buying were parts of a wider construct
called compensatory consumption. We wished to test
this assumption by merging the two variables into one
latent construct (composite) called compensatory
consumption. During the process, we had to omit one
indicator of conspicuous consumption (STA2) in the
compensatory consumption for a better fit. The
alternative model also generated a relatively good fit,
as presented in Table 9:
Table 9: Good Fit Alternative Model.
Measurements
Religious
Commitment
Compensatory
Consumption
Cut-off
Values
Cronbach's
alpha(α)
0.7680
0.8510
> 0.7
Dijkstra-
Henseler's rho
(ρA)
0.7814
0.8535
> 0.7
The average
variance
extracted (AVE)
0.5236
0.5236
> 0.5
Cross Loadings
PRT1
PRT2
PRT3
STA1
STA3
COM1
COM2
COM3
0.7785
0.7980
0.5727
-0.1616
-0.1804
-0.1574
-0.1614
-0.1880
-0.1816
-0.1862
-0.1336
0.6927
0.7733
0.6747
0.6918
0.8059
SRMR
0.0742
< 0.08
Adjusted R
2
0.0509
Religious
Commitment ->
Compensatory
Consumption
-0.2333
Significant
Although the alternative model (Figure 2) is not
necessarily better than the original model, it is
nonetheless a good indication that conspicuous
consumption and compulsive buying can be joined
into a composite variable called compensatory
consumption. Also, by comparing the original model
with the alternative model, a consistent and negative
relationship between religious commitment and the
elements of compensatory consumption can be found.
The Role of Religious Commitment and Conspicuous Consumption in Predicting Compulsive Buying of Islamic Goods: A Case Study of
Muslim Consumers in Indonesia
9
Figure 2: Alternative PLS Model.
5 CONCLUSIONS
After more than two decades of its introduction,
research on compensatory consumption is the Islamic
context is relatively scarce, perhaps due to its
sensitive nature. However, we believe that the study
of compensatory consumption in an Islamic context
is necessary for two reasons: 1) to better understand
the motives of religious consumptions and 2) to come
up with Islamic goods and services that actually
address the needs of Muslim consumers in the world.
Our research is consistent with the previous
studies (Pace, 2014; Lindridge, 2005; Syahrivar &
Pratiwi, 2018), who proposed a negative relationship
between religiosity and religious brands. Our findings
suggest that Muslims consumers who are less
religious would rely higher on status-conveying
Islamic goods. As Muslim consumers relied higher on
status-conveying Islamic goods, they were also prone
to engage in compulsive buying of Islamic goods. Our
finding also confirmed the previous studies (Roberts,
2000; Palan et al., 2011) that proposed a positive
relationship between conspicuous consumption and
compulsive buying. Finally, our study managed to
prove empirically regarding the theory proposed by
Woodruffe (1997) that conspicuous and compulsive
buying belonged to a wider and latent construct called
compensatory consumption, thus closing the gap in
the theory.
6 LIMITATION AND FUTURE
STUDIES
The findings of this study limit to investigating the
relationship between a single-dimensional behavioral
construct of religiosity, which we called religious
commitment with two elements of compensatory
consumption. The relationship between religious
commitment and compulsive buying cannot be
supported, although the direction of the relationship
was correctly predicted. This demands further
investigation in the future by adding moderating
variables, such as credit card ownership and
materialism. Apart from conspicuous consumption
and compulsive buying, Woodruffe (1997) also
theorized other constructs, such as self-gift giving,
compensatory eating, addictive consumption, etc. All
other constructs that were theorized to be parts of
compensatory consumption merit further
investigations in an Islamic context.
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The Role of Religious Commitment and Conspicuous Consumption in Predicting Compulsive Buying of Islamic Goods: A Case Study of
Muslim Consumers in Indonesia
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