Materialism as a predictor variable of low income consumer behavior when entering into installment plan agreements

This paper explores the influence of materialism on consumer indebtedness among low income individuals who live in poor regions of Sao Paulo. A materialism scale was adapted to this context and used to describe the level of materialism among the population surveyed. Results obtained relative to the relationship between materialism and socio‐demographic variables are compared to those of previous studies. A logistic regression model was developed in order to characterize individuals who have an installment plan payment booklet—the main source of consumer credit for the population studied—and to differentiate them from those who do not, based on the materialism level, socio‐demographic variables and purchasing and consumer habits. The proposed model confirms materialism as a behavioral variable that is useful for forecasting the probability of an individual getting into debt in order to consume. Income had the biggest relative influence on the regression model, followed by materialism and age, controlled by gender.