Impact of Financial Distress on Consumer Anxiety and Spending Behavior: A Moderated Mediation Model

This paper aims to examine a moderated mediation model of consumers’ financial distress and spending behavior through anxiety moderated by income. Data from 826 consumers in the United States were collected, and partial least squares structural equation modeling (PLS-SEM) was applied to analyze the hypothesized relationships in the research model. The findings indicated a positive impact of financial distress on anxiety, subsequently resulting in reduced spending behavior. Importantly, the analysis revealed that consumers’ income levels did not exhibit moderating effects on the correlation between financial distress and consumer anxiety. Furthermore, it was observed that income did not play a moderating role in the relationship between consumer anxiety and consumer spending behavior. We contribute to consumer behavior research by offering theoretical and contextual insights into spending behavior. Additionally, we provide managerial recommendations for marketers in the context of consumer financial distress.