Compulsive Online Shopping, Spending Habits, And Locus of Control on Financial Vulnerability Among Malaysians

Nuradli Ridzwan Shah Mohd Dali, Wan Rasyidah Wan Nawang, Umi Hamidaton Mohd Soffian Lee, Wan Nur Fazni Wan Mohamad Nazarie, Hanifah Abdul Hamid
Universiti Sains Islam Malaysia, Malaysia



At a time when the world economy is uncertain, people need to be financially prepared to ensure stability. However, many people are prone to financial vulnerability because of their attitude and behaviour, apart from their environment. Some people have excessive online shopping lifestyles, poor spending habits, and a lack of self-control, leading them into a major debt trap and other financial obstacles that increase their financial vulnerability. This study aims to examine the impact of the abovementioned factors on the financial vulnerability of Malaysians. The online survey targeted Malaysian consumers and received 2241 responses. The data were analysed by Partial Least Square-Structural Equation Modelling (PLS-SEM) using Smart PLS software. The results show that compulsive online shopping behaviour has a negative impact on financial vulnerability, while spending behaviour and locus of control have a positive effect. The findings of this study hold significance for both academics and practitioners alike. Theoretically, this study adds to the limited knowledge base in financial health and promotes a better understanding of the behavioural and psychological factors that influence individuals’ financial vulnerability. Practically, this study highlights the importance of collaboration between the government and relevant agencies in developing comprehensive strategies to improve the financial stability and well-being of Malaysians to achieve the country’s goal of becoming a high- income country with a high standard of living.

Keywords:  compulsive online shopping behaviour, consumer spending behaviour, consumer financial vulnerability, locus of control