Abstract

This is an accepted article with a DOI pre-assigned that is not yet published.

The objective of this study is to test the association of rational and impulse spending behavior towards online shopping under the Theory of Planned Behavior (TPB) framework. In this quantitative research with Structural Equation Modeling (SEM), the research measures how rational and impulse spending behavior affects attitude, subjective norms, perceived behavior control, intention, and spending behavior.The findings show that intention and perceived behavioral control are the most predictive of spending behavior, with rational and impulsive spending affecting subjective norms, perceived behavioral control, and attitude toward spending behavior to varying extents. The research contributes to TPB by accepting rational and impulsive spending as interacting variables with a bearing on spending behavior mediated through intention and perceived control. It emphasizes the importance of marketers striking a balance between rational and intuitive appeals and recommends improving financial literacy to enable informed decision-making. The study is constrained by its cross-sectional nature, requiring future research to incorporate longitudinal designs as well as larger populations to enhance generalizability.

Keywords: Rational Spending, Impulse Spending, Theory of Planned Behavior, Online Shopping, Structural Equation Model