Understanding peer pressure on joint consumption decisions: the role of social capital during emerging adulthood

Purpose The purpose of this paper is to examine the effect of peer pressure on joint consumption decisions among emerging adults. Building on prospect theory and characteristics of emerging adulthood, the authors propose that influence from peers (i.e. informational and normative influence) serves as a channel to understand how peer pressure shapes joint consumer behaviors at different levels of social capital. Design/methodology/approach An online survey is distributed to the emerging adults, aged 18 to 25, in the south, west, east and middle of the USA. Construct validity and reliability are tested by using confirmatory factor analysis. Structural equation modeling is used to test the mediating and moderating effects. Findings The results show that social capital moderates the relationship between peer pressure and group-oriented consumer decisions, such that the relationship is positive in groups with high-level social capital but negative in groups with low-level social capital. Furthermore, such effects tend to be achieved via peer influence. And peer influence is stronger in groups with high-level social capital than those with low-level social capital. Originality/value The current literature has shown contradictory results: it is usually believed that emerging adults may conform to pressure and engage in group-oriented decisions; however, some research has reported the opposite result. To better understand this relationship, the authors aim at a group-level factor – perceived social capital – as a boundary condition. This research contributes to the young consumer decision-making literature by involving the interplay among peer pressure, perceived social capital and peer informational and normative influence.