Materialism and the Use of PayLater in Digital Marketing: Implications for Consumers Overall Well-Being
Andi Mohammad Riyaldi Kahfianka (a*), Yulia Arisnani Widyaningsih (b)

a.) Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada Jalan Sosio Humaniora No. 1, Bulaksumur, Yogyakarta 55281, Indonesia. *andimohammadriyaldikahfianka1998[at]mail.ugm.ac.id
b.) Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada Jalan Sosio Humaniora No. 1, Bulaksumur, Yogyakarta 55281, Indonesia.

Abstract

This research stems from concerns over the increasing use of PayLater services in digital marketing in Indonesia, which may simultaneously threaten consumer well-being. Based on Stimulus-Organism-Response (SOR) theory and hedonic adaptation, this study aims to examine how materialism influences the use of PayLater and its impact on consumers^ overall well-being. Specifically, we propose that materialistic impulses induce impulsive consumption behavior through the use of PayLater, which subsequently increases current money management stress and decreases expectations of future financial security, thereby decreasing overall well-being. Using a survey-based quantitative approach of active PayLater users from among millennials and Gen Z. This research contributes academically by enriching the literature in the field of digital marketing, especially in the context of materialism where there is still very little empirical evidence on innovative payments such as PayLater and its relationship with overall well-being. Practically, the results of this study can be used by companies to design more ethical and sustainable marketing strategies, by understanding the negative impact of PayLater on consumers in order to reduce the risks that can be posed by the use of paylater and build long-term loyalty.

Keywords: Materialism- Buy Now Pay Later- Digital marketing- Consumer well-being- Paylater

Topic: Marketing management