A Study on Middle-Class Gen Z Consumers in Kupang City: Materialism and the Status Consumption Trap

Abstract

This research studies the influence of materialism on the status consumption trap among middle-class Generation Z consumers in Kupang City, and analyzes the mediating role of status consumption in that relationship. The study used a causal-explanatory quantitative approach, with a cross-sectional survey design comprising 200 respondents chosen through purposive sampling. The SmartPLS 4.0 software was used to perform partial least squares structural equation modeling (PLS-SEM) on the data. The findings show that materialism increases status consumption and directly contributes to the status consumption trap. Status consumption also significantly strengthens the consumption trap and partially mediates the relationship between materialism and the trap among middle-class Generation Z consumers in Kupang City. This study operationalizes the status consumption trap as a measurable variable that is conceptually distinct from traditional status consumption, bridging the gap between the literature on status consumption and compulsive purchasing. This is the first study to look at this link in the non-metropolitan setting of Eastern Indonesia. The findings are useful for financial authorities creating digital credit limitations based on purchasing behavior, social media platforms analyzing the algorithmic impact on aspirational consumption, and colleges incorporating financial literacy into the curriculum. Cross-sectional design constrains the ability to capture the dynamics of trap creation over time. The findings' generalizability is limited because they only cover a single city. Further study with a longitudinal approach and cross-city comparative studies is strongly encouraged.