The Influences of Individual Modernity, Social Environment, an

Economic Literacy on Lifestyle and Their Implications on Student’s

Consumptive Behavior

Entin Jumantini

Universitas Kuningan, Jalan Pramuka No. 67 Kuningan, Jawa Barat, Indonesia

jumantinie04@gmail.com

Keywords: Individual modernity, social environment, economic literacy, lifestyle, consumptive behaviour.

Abstract: The research aims to study, measure, and analyze the influences of individual modernity, social

environment, and economic literacy on lifestyle and their implications on students’ consumptive behavior. It

adopted quantitative approach with survey method, while data analysis employed the Structural Equation

Modeling (SEM). Data were collected with the instrument of questionnaire. The research population

consisted of students from 12 Business and Management Vocational High Schools accredited A in

Bandung. The number of sample was determined using Taro Yamane equation, employing the technique of

proportionate random sampling. Research result show that individual modernity and social environment had

positive influences on lifestyle, while economic literacy had no influence on lifestyle. Individual modernity

and social environment had influences on students’ consumptive behaviors, both directly and indirectly;

meanwhile, economic literacy and lifestyle directly influenced students’ consumptive behavior. It is

concluded that the levels of students’ consumptive behavior are influenced by individual modernity, social

environment, economic literacy, and lifestyle.

1 INTRODUCTION

Economic literacy has an important role in

improving the quality of human resources in this

case the ability of students in managing information

to make intelligent economic decisions. A smart

economic decision is the ability to create the

resources it has to make a profit. To create a value

that crystallizes in the required behavior of

economic literacy, economic literacy is in principle

because it is a useful tool for converting

unintelligent behavior into intelligence. Economic

literacy has a low impact on welfare, therefore it is a

priority to increase economic literacy into individual

needs, as increased economic literacy in particular

has a positive impact on the accumulation of assets,

salvage and accumulated tremendous detail for

managing expenditures.

Previous studies supporting this research include

the results of Jayasree Krishnan's research in the

International Journal of Economics and Management

5 (2011), this study emphasizes the importance of

lifestyle and its influence on the consumer's

purchase behavior. The main purpose of this study is

to empirically examine the association between the

consumer's general lifestyles and their consumption

patterns. AIO measure was used to identify the

lifestyle dimensions of the consumers. The study

confirmed that there was a significant association

between the lifestyle of the consumers and the

brands of products used by them. From the study it

was concluded that the consumers often choose the

products, services and activities over other because

they are associated with a certain lifestyle. The

products are the buildings blocks of lifestyle,

marketers should therefore, have a complete idea of

the changing lifestyles so as to segment them and

position their product successfully. Another

supportive study is research conducted by Siti

Hamzah et all published in the article Asian Social,

Vol. 9, No. 13, 2013, entitled The Moderating Effect

of Parent and Peer Influences on Hedonistic

Behavior among Undergraduate students in

Malaysia, This study assesses the moderating

influence of parental and peer attachment on

hedonistic behavior among a sample of youth in

Malaysia. Using Bronfenbrenner’s theory of human

ecology and Armsden and Greenberg’s attachment

Jumantini, E.

The Inﬂuences of Individual Modernity, Social Environment, an Economic Literacy on Lifestyle and Their Implications on Student’s Consumptive Behavior.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 225-229

ISBN: 978-989-758-308-7

225

model, this study examines the direct and indirect

influences of religiosity and worldview on the

development of hedonistic behavior as moderated

through parental and peer attachment. Drawing on a

quantitative survey of 408 malaysian university

students, Structural Equation Modeling and Path

Analysis findings reveal that peer attachment

moderated the relationship between religiosity and

worldview, and hedonistic behavior. The results

further show the unique moderating effect of trust

and alienation within peer attachment. The results

are discussed in light of Malaysia’s unique socio-

cultural setting. Implication from the findings are

also discussed. Juliana and colleagues concluded in

his research entitled The Effect of Economic

Literacy on Student Consumption Behavior FKIP

UNTAN as follows: 1) The level of economic

literacy or understanding of students to the economy

give influence to someone in the economic action,

especially consumption activities; 2) Respondents

have consumption behavior in accordance with the

level of knowledge and understanding of the science

of economics; 3) There is a positive influence of

economic literacy on consumption behavior.

The previous research which became the

reference in this research consists of several research

with focus of theme relevant to the variables in this

research,that is individual modernity, social

environment, economic literacy, lifestyle, and

consumption behavior. The author has not found

exactly the same research with this research, all the

previous research results that became the reference

have their own characteristics. The importance of

these variables to be examined because 1) individual

modernity is a condition of one's level of personality

in which there is a set of personality traits such as

views of values, attitudes, and behavior that make

individuals active and dynamic to follow the

development of advanced societies 2) Pride, self-

esteem, mental attitude, achievement motivation,

work ethic, spirit of life, consciousness of a person

or group in everyday life. How meaningful family as

a social environment to the encouragement of

achievement of a member. Similarly, the role of

other social environments, such as friends, peers in

the work of encouragement to a person to remain

vibrant, achieving, and ultimately achieving success,

3) Economic Literacy is a life skill that is useful for

making the right economic decisions , 4) Lifestyle is

the way a person displays his identity through the

use of time, money, and goods more leads to fun and

appreciation regardless of what the actual needs, 5)

Consumption activity is no longer based on the

needs but because the product has Certain symbols

that can increase the prestige of the purchaser.

Consumption activity is increasing due to

globalization because globalization as a product of

modernity offers all forms of ease of technology in

human life.

2 METHODS

Respondents in this study are students of Vocational

High School Business and Management in Bandung.

Vocational students with an age range of 15-18

years with their analytical unit at the individual

level. Sampling technique to determine the unit of

analysis with proportionate random sampling

technique. The determination of the sample number

of students is done through calculations using the

formula of Taro Yamane (Riduwan, 2008: 44).

Based on these calculations, the minimum sample

size in this study is 386 students from 12 Vocational

Schools consisting of 3 Vocational Schools of

Business and Management Affairs and 9 Vocational

Secondary Vocational Business and Private

Management. Female respondents as many as 260

students (67.36%) while the male sex of 126

students (32.64%).

In this study the questionnaire is used to measure

all the variables of both dependent and independent

variables, measured by using the Likert Scale.

According to Riduwan and Kuncoro (2011: 20),

Likert Scale is used to measure attitudes, opinions,

and perceptions of a person or group of social events

or phenomena.

Hypothesis testing in this study using structural

equation model analysis or commonly referred to as

Structural Equation Modeling (SEM). SEM is a

statistical technique used to test a series of

relationships between several variables. More

clearly Hair, et.al. (1998) put forward as follows:

Structural equation modeling, often referred to

simply as LISREL (the name of one of the more

popular software packages), is multivariate

technique combining aspects of multiply regression

and factor analysis to estimate a series of

interrelated dependence relationships simultaneousl.

It is characterized by two components: (1) the

structural model and (2) the measurement model.

The structural model is a “path” model, which

relates independent to dependent variables

(indicators) for a single independent or dependent

variable.

Hypothesis Testing 1: The Influence of Social

Environment, Individual Modernity, and Literacy

Economics on Lifestyle. The research findings show

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

226

that the height of lifestyle is positively influenced by

the high and low of individual modernity and social

environment but not influenced by economic

literacy. This can be judged from the value of the

path coefficient (SRW)> 0. The magnitude of the

influence of social environment and modernity on

the lifestyle of each of 0.296 and 0.659. As big as.

86% of the high variations in lifestyle can be

explained together by the individual's modernity and

the social environment. The remaining 14% is the

influence of other variables not described in the

model. If each individual variable's contribution to

individuality, social environment, and economic

literacy influences the lifestyle variable, then for the

variable of individual modernity it can be seen that

the indicator of trust without prejudice gives the

highest contribution, while the indicator of ability to

utilize mass media gives the lowest contribution.

While for social environment variable can be seen

indicator of existence in group give highest

contribution, while indicator of residence

environment give lowest contribution. While on the

economic literacy variable can be seen that the

indicator of supply and demand provide the highest

contribution. For more details can be seen in the

table below:

Table 1: Direct Influence X

, X

to X

Direct effect

0,296

0,659

0.000

Hypothesis 2: The Influence of Social

Environment, Individual Modernity, Economic

Literacy, and Lifestyle to Consumption Behavior.

The research findings show that high consumption

behavior is positively influenced by the high low of

individual modernity, social environment, economic

literacy and lifestyle. This can be judged from the

value of the path coefficient (SRW)> 0. The

magnitude of the influence of social environment,

individual modernity, economic literacy and style

Life against consumer behavior each of 0.467,

0.314, 0.231 and 0.089. of 91% of the high

variations that occur in consumer behavior can be

explained jointly by the social environment,

individual modernity, economic literacy and

lifestyle. The remaining 19% is the influence of

other variables not described in the model.

If each variable of X is seen in influencing

variable Y then for the variable of individual

modernity can be seen that indicator of trust without

prejudice give highest contribution, while indicator

ability utilize mass media give lowest contribution.

While for social environment variable can be seen

indicator of existence in group give highest

contribution, while indicator of residence

environment give lowest contribution. While on the

economic literacy variable can be seen that the

demand and supply indicators provide the highest

contribution, while the indicators of industrial

development contributed the lowest. And on lifestyle

variable can be seen that indicator of expenditure

pattern give highest contribution, while activity

indicator give lowest contribution. For more details

can be seen in the table below:

Table 2: Direct Influence and Indirect Influence X

, X

dan X

to Y

Model

Influence

Direct

Effect

0,232

0.314

0.089

0.467

Indirect

Effect

0.138

0,307

Total

Effect

0.370

0.621

0,089

0,467

3 RESULTS AND DISCUSSION

Based on the data analysis, hypothesis testing

obtained the findings as follows:

Individual modernity demonstrated by openness

to new experiences and changes, able to argue for a

problem, planning and orientation, selfefficacy, self-

assertiveness, educational participation, risk-taking,

trust, optimism, and ability to utilize the mass media

Positively influence, directly or indirectly, through

lifestyle to student consumption behavior. Thus,

individual modernity can be used as a predictor of

low lifestyle and student consumption behavior.

Existence in groups is an indicator that gives the

highest contribution to social environment variables.

These findings reinforce Hurlock's (1996: 213)

argument that: The influence of peers on attitudes,

interest, appearances, and know that if

they wear the some clothing model as the popular

group member’s clothing, then the chance for them

to be accepted by the group becomes greater.

The results of data processing indicate that the

level of economic literacy of the respondents is high

category, but based on the significance test of each

path coefficient estimate turns out that economic

literacy does not affect the lifestyle of students, thus

proving that the students' level of understanding of

good economics has no effect on Lifestyle that lived.

This is in line with the opinion of Jean Baudrillard

(Suyanto, 2013: 109) which states that "Consumer

society as a society in which there is a shift in the

The Inﬂuences of Individual Modernity, Social Environment, an Economic Literacy on Lifestyle and Their Implications on Student’s

Consumptive Behavior

227

logic of consumption, the logic of needs into the

logic of desire, That is how consumption becomes

the fulfillment of signs (message) ".

Lifestyle changes certainly cause. One of the

factors that influence it is self-control or self-control.

Lifestyle changes cannot be separated from the

control of each individual, such as how one should

control themselves in spending money. Self-control

is the ability of the individual in controlling himself

from impulsive actions and follow the emotions for

a moment. According to Imam Hoyri (2014: 49)

self-control in adolescents is the capacity of self

(self) that can be used to control the outside

variables that determine behavior. No matter how

powerful an external stimulus is, an individual can

still change it using the self-control process.

Meanwhile, according to Chaplin (Dira Sarah, 2014:

316) states that self-control is the ability to guide his

own behavior, the ability to suppress or impulse

impulsive impulse or impulse. In addition, the

control of the behavior contains the meaning that is,

do the considerations before doing an action. Self-

control enables individuals to guide, direct and

manage their behavior strongly and ultimately lead

to positive consequences. (Lazarus, 1976). The

process of working is self-control to reject the

response that is formed and replace it with another.

The replacement response consists of the use of

thought, emotional change, impulse setting, and

behavioral change (Baumeister, 2002). Self-control

tends to minimize irrational consumption behavior.

Based on the concept of Averill (1973) there are

three types of self-control covering five aspects

namely, the ability to control behavior (behavioral

control) consists of the ability to control the

implementation (regulated administration) and the

ability to control the stimulus (stimulus

modifiability), cognitive control (cognitive control)

ability to gain information (information gain) and

ability to make an appraisal (appraisal), as well as

the ability to control the decision.

In other words in this case with proper self-

control, teenagers are able to guide, organize, and

direct their behavior toward a positive consequence.

Self-control is needed to assist the individual in

overcoming his limited ability and can be useful to

overcome various things that can harm the

individual caused by conditions outside himself

(Kazdin, 1994).

Lifestyles shown by activity, spending patterns,

and the use of time have a positive effect on student

consumption behavior. This is in line with the

opinion of Kasali (2001: 91) which states that

lifestyle is a consumption pattern that reflects one's

choice of things and how to spend time and money.

Rao, Kim and Cho (2000) in the research of Long-

Yi Lin and Hsing-Yu Shih (2012) also explained

that lifestyles have an important role in consumer

purchasing decisions. Consumers are motivated to

buy products in order to maintain or pursue a

particular lifestyle.

The magnitude of the influence of individual

modernity, social environment, economic literacy,

and lifestyle on consumption behavior of students

each of 0.467, 0.314, 0.231 and 0.089. This means

that 91% of the high variations in student

consumption can be explained together by the

individual's modernity, social environment,

economic literacy, and lifestyle. The remaining 19%

is the influence of other variables not described in

the model.

4 CONCLUSION

Some of the findings in this study either

descriptively or verificatively show that this study

has provide scientific contribution in development

consumer behavior, especially high school students.

The findings indicate that consumption behavior is

influenced by individual modernity, social

environment, economic literacy, and lifestyle is a

new repertoire in consumer behavior research which

has never been reviewed by previous researchers. In

addition, this study solidifying previous theories

that discuss variables that influence consumer

behavior. This finding also implies that for

consumptive behavior control, it is necessary for

simple living habits and unnecessary to follow

trends, priority scale placement becomes the main

part through making a list of needs.

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Consumptive Behavior

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