The Role of Loss Aversion and Emotional Involvement in Shaping Generation Z's Consumptive Behavior in Using Paylater Services

Abstract

The rapid advancement of digital technology has significantly transformed consumption patterns, particularly among Generation Z, who are highly familiar with digital financial services such as paylater. While this service offers transactional convenience through deferred payments, it also carries the risk of fostering uncontrolled consumer behavior. This study aims to analyze the role of loss aversion and emotional involvement in shaping the consumptive behavior of Generation Z in the use of paylater services. A qualitative approach was employed, using a case study of students at Universitas Semarang. The findings indicate that loss aversion motivates individuals to make purchases to avoid the perceived loss of opportunity, while emotional involvement amplifies consumptive tendencies through the influence of trends and social pressures. These insights expected to contribute to the consumer psychology literature and provide practical recommendations for service providers and educational institutions to improve financial literacy among the younger generation.