QXGX6103 Research Methods and Data Analysis for Social Scientists

RESEARCH PROPOSAL:GENDER DIFFERENCES IN SPENDING BEHAVIOR

AND FINANCIAL STRESS AMONG EMPLOYEES IN MALAYSIA

By

SITI MAHERA BT AHMAT AMINCHRISTINA KRYBUS

LEE WENG KEN

Asia-Europe Institute

September 2011

TABLE OF CONTENTS

Chapter Title Page

Abstract iAcknowledgment ii

1 INTRODUCTION 1.1 Background of the Study 1

1.2 Problem Statement 21.3 Purpose of the Study 31.4 Research Objectives 51.5 Research Questions 51.6 Theoretical Framework 51.7 Significance of the Study 61.8 Scope of the Study 61.9 Limitation of Study 6

References 7

2 LITERATURE REVIEW2.0 Introduction 9

2.1 Credit Card Spending in Malaysia 92.2 Saving behavior 102.3 Interrelationship between credit card spending and 11

level of financial stress among employees in workplace

2.4 Interrelationship between saving habit and 12level of financial stress among employees in workplace

2.5 Interrelationship between gender differences in 12spending behavior

2.6 Summary 13References 14

3 RESEARCH METHODOLOGY 3.0 Introduction 16 3.1 Measurement 16

3.2 Questionnaire Design 16 3.3 Sampling Procedure and Data Collection Methods 16 3.4 Independent and Dependent Variables 17 3.5 Hypothesis Testing 18 3.6 Data Analysis 18

References 19

ABSTRACT

Financial stress has become the major stressor among employees in Malaysia. This type

of stress will give many bad effects not only to the employees but also to the employers.

The employees’ productivity will be affected and at the same time their employers will be

facing with loss too. Understanding gender differences in the spending habit, particularly

among the employees in the workplace has important implications. A good employer

must be able to provide financial education programmes for the staffs so that they can

manage their own financial matters. To study the gender differences in spending behavior

among employees in Malaysia, is not an only an easy task but also this topic is not

researched enough, .therefore this study is being conducted.

Keywords: financial stress, financial education, spending habit, spending behavior,

ACKNOWLEDGMENT

First of all, we would like to be thankful to The Mighty God for giving us the

patience and feeling to be committed in completing this research proposal. Without this

courage, we would not be able to accomplish this research on time.

We also would like to say a great expression to our beloved lecturer, Assoc. Prof.

Dr. Hjh. Sabitha Marican for guiding and assisting us in order to complete this research

proposal smoothly without any severe problems. The guidance from her helped us to

arrange everything according to the standard procedure. During her research class, she

had supplied us with many examples to make sure we understand. Throughout that, we

were able to come out with a complete chapter 1, 2 and 3 as the complete research

proposal at the end. Her kindness will always be memorable.

Special thanks to all of our friends that helped us to find any related information

to our research and gave us hands when we were really in need. Lastly, we offer our

regards and blessings to all of those who supported us in any respect during the

completion of this research proposal paper.

Chapter 1

1.1 Background of Study

At the moment, human being and stress cannot be separated. However people

rarely know what kind of stress they are facing with. Stressfocus (2011) divides stress

into two kinds ; eustress is the good one meanwhile distress is the bad one. Acute

stress and chronic stress falls under distress type. Positive stress may lead to positive

acts, however negative stress surely will give bad implications as a new study from

Couriermail (2011) states that most women that become violence victims usually

facing with financial strain and other related stress.

For students, homework and going to morning class can become their major stress

but for the working people, money is the main reason why they work hard so that

they can get all the necessity goods (Socyberty, 2006). Scott (2011) points out from

the study she conducted, 70% of the respondents highly rates finance as the most

stress factors in their life. Marine Corps Community Services (2011) explains person

that facing with financial stress is the one that facing with too much debt in hands and

were given warning letter of returned checks due to the deficiency understanding in

financial education.

Raghubir and Srivastava (2008) reported various form of payments such as by

using credit card rather than cash and put aside cash for savings and to spend can

reflect the differences in spending behavior. According to Leila and Laily (2011), the

behavior of men and women are dissimilar whereby they socialized in a different way

due to the gender theories, moreover individual’s attitude and behavior will be shaped

through the social structural variables. Hence, there must be differences in their

spending behavior too, that is why this study need to be conducted.

Armour (2007) in USA Today asserts workers that facing with the increasing of

defaults on credit card and home foreclosures will affect their work productivity and

at the same time they also facing with high level of emotional stress within the

working area. In another study from Virginia Tech (n.d) estimates 10 to 15% of the

personnel who are infected with this silent epidemic will perform lower level of job

productivity.

1.2 Problem Statement

There is no denying that financial strain has become one of the major stressors for

employees within workplace. Delafrooz and Laily (2011) also agree that financial

stress is the main stressor compare to others. With the challenges posed by

globalization, there is a significant need for identifying the relationship between

gender and their spending behavior toward the financial stress in the place of work.

Numerous studies have been conducted on the spending behavior of men and women

are being published in various scientific journals and in the form of other literature

review too.

According to the Counseling and Credit Management Agency or known as AKPK

(2010), men is the one who spend more and most of the cases that being carried out

shows the young who just turn 30 already in debt to tune of thousands and nowadays

it has become a worrisome trend. Through the common observation, most will answer

women will spend more than men. However, some of the studies from AKPK (2010)

has investigated that men used to spend without thinking, they will just take the thing

they need and just straight away go to the pay counter. Different from the women,

women tend to list out all the thing she need in a paper then bring it along while do

the shop, and it is believed working wives and mothers will put on much concern on

the household’s welfare more than anything else. Master card Worldwide Index of

Women’s Advancement (2010: 140) contends that 48.5% women see themselves as

the financial decision maker in the household. As if more women tend to control all

the financial management in the house, so women might be facing with many

stressful condition rather than men. Another study from Prawitz and Garman (2009)

claim that people that facing with financial stress at house will carry it to the

workplace and the employer will facing with loss of employee’s job productivity.

Meanwhile Bernama (2011) has reported about 53 000 individuals with debts

amounted nearly RM 5 billion have asked AKPK’s guidance due to the financial

problem. As Mohd Yusoff Abd Rahman, FOMCA Communication Director reports

in Harian Metro (2011) the debt from credit card holder in Malaysia has nearly reach

RM 28.8 billion overall. From study being mentioned above, it is believed the

excessiveness spending with credit card has become the main problem and for sure

the credit card holders usually are the working people. The Association of Banks in

Malaysia (2003) points out that the approval credit card holders are among the person

who 21 years or above and their minimum income per year must be RM 18 000. Is it

true every working people spend much on the credit card? And is it true spending

much on credit card can become one of the stressors that lead to financial stress in the

working place? Other than spending on credit card, what are the other spending

behaviors among the working people? The employer should educate their employees

with proper financial education to ensure the employees can monitor their own

spending behavior in a right way. Findings from Delafrooz and Paim (2011) clearly

indicate too many debts are one of the unmanageable stressors and it can become a

challenging issue nowadays.

On a more serious note, 6.43 percent of the outstanding debts had to be converted

to non-performing loans. An alarming increase in the number of credit card holders

seeking bankruptcy proceedings over the years was also reported according to Zafar

and his other friends (2010). Given the situation, it is high time that our local

government takes serious effort in helping public to manage their financial stress by

establishing the Counseling and Credit Management Agency (AKPK) which been set

up by Bank Negara Malaysia in April 2006 to assist individuals take control of their

financial situation and gain peace of mind that comes from the wise use of credit.

What is required now is to identify what is the relation between financial stress and

the spending behavior. Furthermore, we can see that issue of credit card debt has

become a hot topic in magazines and newspapers. Therefore it is relevant to observe

about employee’s spending behavior and additionally, there is no holistic in-depth

research study that has been conducted in Malaysia to identify how the gender

differences contribute to level of financial stress in the workplace.

Apart from the studies conducted on the issue of credit card debt that been

mushrooming seriously and become a trend for working people, there is a growing

need to determine whether the gender differences in spending behavior can affect

their level of financial stress in place of work. This is because women is said to be

emotional rather than men and their level of financial stress in workplace must be

much higher.

1.3 Purpose of Study

The purpose of this study is to examine the gender differences in the spending

behavior which lead to financial constrain. To determine this purpose of study,

thorough analysis of study need to be done in order to make this research study a

success. Henceforth, the objectives of this study have been stated in the following

paragraph.

1.4 Research Objectives

The purpose of this study is to examine the relationship between gender

differences in spending behavior and the level of financial stress among employees in

Malaysia. Specifically, this study is conducted to fulfill the following objectives:

1. To determine the most type of spending behaviors which lead to the financial

stress among the employees in the workplace.

2. To assess if there is any relationship between gender differences and financial

stress in workplace.

1.5 Research Questions

This study sets forth the following research questions:

1. What are gender differences in the spending behavior that leads to financial

stress?

2. Is there any relationship between gender and financial stress in workplace?

1.6 Theoretical Framework

Spending Behavior

-Credit Card spending-Saving behavior

Financial Stress in workplace

Gender

Figure 1 : Research Model

This section includes a discussion of the components in the theoretical framework

developed for this study which is presented in Figure 1. It was assumed that there is a

relationship between gender differences in spending behavior and financial stress

among individuals especially within the workplace. One of the ways to measure

spending behavior is to operationalize spending behavior and have a look on the

people’s Credit Card debts. Credit card spending can lead to financial stress since the

more a person spend on their credit card, the higher the amount of debt they will be

facing, and the higher level of financial stress they will have. Another element in

financial behavior is the saving behavior. The saving habit among employees will

reflect how they manage their own financial matters. The higher concern of people to

save more can reduce the stress level in the future.

1.7 Significance of the Study

This study is apparently one of the first few attempts to help employers to identify

the need of financial education for their employees in the workplace. Hence, it will

give implication to the employees in their financial management practices. The

findings of this study could provide some form of empirical data for future research in

this area and become an additional research study to help other researchers in doing

the study in this area in depth. Furthermore this study will help managers to have a

better understanding of cardholders in Malaysia and their attitude and behavior

toward usage of credit cards.

1.8 Scope of the Study

This study investigated the gender differences in spending behavior that lead to

financial stress which based on the questionnaires. They will be distributed to the list

of names and addresses which will be obtained by Malaysian Trade Union Congress.

1.9 Limitations of the Study

This study is based on a case study within Malaysia only. There is not enough

statistical support for conclusive results or for generalizing the findings of this study.

References

AKPK (2010). Who said women spend more?. Retrieved September 16, 2011, from http://www.akpk.org.my/my/peristiwa/berita/siaran-akhbar/id/196/bisik-bisik

Armour, S. (2007) Workers' financial stress may hurt productivity. USA Today, Retrieved September 25, 2011, from http://www.usatoday.com/money/workplace/2007-09-04-foreclosure-stress_N.htm

Bernama (2011). AKPK Assists 53,000 Individuals With Debts Totalling RM5 Billion Since 2006. Retrieved September 17, 2011, from http://www.akpk.org.my/my/peristiwa/berita/siaran-akhbar/id/192/akpk-assists-53000-individuals-with-debts-totalling-rm5-billion-since-2006

Couriermail (2011). Financial stress linked to violence. Retrieved September 23, 2011, from http://www.couriermail.com.au/news/breaking-news/financial-stress-linked-to-violence/story-e6freonf-1226143480316

Delafrooz, N., and Laily,H. P. (2011). Determinants of Saving Behavior and Financial Problem among Employees in Malaysia. Australian Journal of Basic and Applied Science, Volume number 5, Issue number 7, Page number 222 – 228. Retrieved September 17, 2011, from http://www.insipub.com/ajbas/2011/July-2011/222-228.pdf

Harian Metro. Hutang kad kredit rakyat kita RM 28.8 bilion, (2011, September 2). p. Metroplus 5.

Leila, F. And Laily, H. P. (2011). Gender Differences in Financial Well-being, Financial Socialization and Financial Knowledge among CollegeStudents. Life Science Journal. Volume number 8. Issue number 3, Page number 173 – 178. Retrieved September 20, 2011, from http://www.lifesciencesite.com/lsj/life0803/033_6168life0803_173_178.pdf

Marine Corps Community Services (2011). Financial Problems. Retrieved September 15,2011, from http://www.usmc-mccs.org/LeadersGuide/Personal/Financial/findistress

Master card Worldwide Index of Women’s Advancement (2010). Money matters. Herworld. Page number 140 – 141.

Prawitz, A.D., and Garman, E.T. (2009). It’s time to create a financially literate

workforce to improve the bottom line. Benefits Compensation Digest, Volume number 46, Issue number 4, Page number 1 – 6. Retrieved September 15, 2011, from http://pfeef.org/research/vte/Benefits-Compensation-Feb-09-Article.pdf

Raghubir, P., and Srivastava,J. (2008). Monopoly Money: The Effect of Payment Coupling and Form on Spending Behavior. Journal of Experimental Psychology. Volume number 14, Issue number 3, Page number 213 – 225. Retrieved September 20, 2011, from http://blogs.southtownstar.com/money/xap143213.pdf

Scott, E. (2011). Financial Stress - How It Affects You and What You Can DoBreak Free From Financial Stress. Retrieved September 25, 2011, from http://stress.about.com/od/financialstress/a/financialstress.htm

Socyberty (2006). Why do People Think Work is so Important?. Retrieved September 15,

2011, from http://socyberty.com/work/why-do-people-think-work-is-so-important/

Stressfocus (2011). Types of Stress - Some Good, Some Bad. Retrieved September 25, 2011, from http://www.stressfocus.com/stress_focus_article/types-of-stress.htm

The Association of Banks in Malaysia (2003). Card Transactions and you. Retrieved September 17, 2011, from http://www.bankinginfo.com.my/_system/media/downloadables/bnm_eng.pdf

Virginia Tech (n.d). Chapter 1 and Chapter 2. Retrieved September 24, 2011, from http://scholar.lib.vt.edu/theses/available/etd-10082000-23210012/unrestricted/chapter1and2.pdf

Worell, J. (2002). Gender and Coping With Stress. Encyclopedia of Women and Gender: Sex Similarities and Differences and the Impact of Society on Gender, Band 2. ACADEMIC PRESS, Elsevier. L – Z Volume 2. Pages 1106 – 1111. Retrieved September 24, 2011 from http://books.google.de/books?id=3w-xAgGUsaYC&pg=PA1107&lpg=PA1107&dq=spending+stress+gender&source=bl&ots=3f5cVPyyDn&sig=Xz23f_cB4mywJwExw7Pwk1cJf3I&hl=de&ei=tE95Tv26Ds_nrAePxJjYDw&sa=X&oi=book_result&ct=result&resnum=4&sqi=2&ved=0CDsQ6AEwAw#v=onepage&q=spending%20stress%20gender&f=false

Zafar U. Ahmed, Ishak Ismail, M. Sadiq Sohail, Ibrahim Tabsh, & Hasbalaila Alias. (2010). Malaysian consumers’ credit card usage behavior. Asia Pacific Journal of Marketing and Logistics Vol. 22 No. 4, 2010 pp. 528-544. from http://www.emeraldinsight.com/journals.htm?articleid=1889590&show=abstract

Chapter 2

2.0 Introduction

Researchers found out that the most popular problem regarding to financial

matters is credit card debts. From the problem statement, it is believed many credit

card holders are not aware of the consequences of credit. They only made the

minimum payment and that makes them involved with serious financial problem

(1klassifieds : C11). Spending behavior as credit card spending and saving habit will

influence the level of financial stress among the employees in the work place

whereby it will also give impact toward their work performance as well. However, in

this study, researchers decide to focus on the spending part only.

2.1 Credit Card Spending in Malaysia

Green (2011) finds out the history of credit card whereby is can be defined as a

card that permit the circling of credit from month to month, which means the

cardholder do the debt repayment over more than a few months. Speaking of credit

card, working people is the first group of people that will come into our mind.

Findings from Cheu and Loke (2008) indicates that Bank Negara Malaysia only

offers a minimum of RM 18 000 annually for the credit card applicants after the

Asian crisis in 1997 rather than RM 24 000 before the crisis started.

As Zafar, Ishak, M.Sadiq, Ibrahim and Hasbalaila (2010) reports that during the

early stage of the credit card introduction in the middle of 1970’s, only being used by

the successful businesspersons and also to the professionals. However, at the end of

that year, about 20 000 cards were being issued. Currently, C K (2010) claims there is

an uprising number of Malaysian credit card holders. This situation shows Malaysian

tend to use credit rather than cash. Another study from Financial Planning Malaysia

(2005) founds credit card is the gadget that can either lead to positive or negative way

of living. Malaysia Credit Card (2008) contends that the credit card utilization can

actually save more if being used appropriately.

Table 1 : Credit Card Operations in Malaysia

Source: Bhattacharjee, R. B.(2010). Tame the demon of credit card debt. The Edge. Retrieved September 22, 2011, fromhttp://www.theedgemalaysia.com/commentary/178725-tame-the-demon-of-credit-card-debt.html

The table above shows the credit card operations in Malaysia and there is

increasing in the amount of balances overdue, though the gap is quite small but it has

given many negative impacts.

2.2 Saving behavior

Delafrooz and Laily (2011: V2-361) clearly indicates that consumers are very

concerned about their financial savings sufficiency even the personal saving rate is

declining over time. The study also discovers the saving rate is quite low among 68%

of the respondents that involve working people. Saving behavior is said to become

part of the financial management practices, hence it is one of the most important

factors for increase the people intention to save more or less (Delafrooz and Laily,

2011). Saidatulakmal (2004: 59) suggested other than income growth, labour force

involvement of elderly, inflation, social security retirement, saving rate is also part of

important determinants in one’s economic development.

2.3 Interrelationship between credit card spending and level of financial stress among

employees in workplace

EAP (n.d) challenges the view of Malaysia Credit whereby credit card debts are

not easy to be removed. It leads to financial stress among employees for sure.

Excessive spending behavior and the failure to pay back are the consequences from

the credit card holders’ unawareness toward the agreements that being made with the

credit card issuers (Cheu and Loke, 2008). Contradictly, one of the study by Hafalir

and Loewenstein (2009) disagree that usage of credit card can increase spending.

However, there are not many articles or journals can be found to support this

statement.

Irby (2011) maintains that three of bad spending habits that involve with

credit card usage are : use credit card for daily goods, use credit card when have cash

in hands, and pay off debt using credit card. These three kinds of credit card spending

behavior will lead an individual to carry out thousands up to millions of debts.

Another article from the same author explained on the do’s and don’ts when using

credit card. One of the don’ts has already been mentioned in the previous article,

another three don’ts are; making minimum credit card payment, purchase things you

can’t afford, and another bad credit card spending habit is by closing credit card

without knowing the impact.

Uncontrolled credit card spending can affect employer’s profitability since

Financial Literacy Partners (n.d) indicates employee’s personal finance matters will

give direct influence toward it. 10 % of working adults who have been identified are

facing financial difficulties frequently in their daily life as reported during 1979, up

till now it has increased to 25%. Based on the foregoing review of literature, the

following hypothesis is postulated:

H1: The level of credit card spending can affect the level of financial stress among

employees in workplace

2.4 Interrelationship between saving habit and level of financial stress among employees

in workplace

Today the economically life is tougher and the workers have o face higher prices

in food, energy costs and health care services. The care about those necessary goods

leads the individuals to think about savings. (Delafrooz and Laily, 2011) The

knowledge about money is important because it can affect the attitude towards it in

either a positive or negative way. Financial literacy, income, and marital status were

found to be the most influential predictors of saving behavior. Financial illiteracy and

lack of information affect the ability to save and to secure a comfortable retirement.

Financial literacy will enhance the ability to handle day to day financial matters and

will reduce the negative consequences of poor financial decisions that otherwise

might take years to overcome. Low financial knowledge leads to a lack of financial

planning which causes financial stress. thus the following directional hypothesis is

created:

H2 : Saving habit can affect the level of financial stress among employees in

workplace

2.5 Interrelationship between gender differences in spending behavior and financial stress

Based on the findings made by Cheu and Loke (2008), men are found to become

the main holders of planned debts which refers to house and car loans, meanwhile the

unplanned debt holders goes to women. Credit card debts had fallen down under the

category of unplanned debts for sure. In addition, both of the researchers said women

tend to be facing with difficulties in doing the credit card payment after the bills

getting higher without realized.

Borneo Post Online (2011) points out nearly 10% of women are having financial

stress rather than small percentage of men which is only 3%. It is believed that

women tend to have the sense that they must fulfill their children’s needs and also the

household as reported by California based Financial Finesse, the research analyst that

conduct this survey in New York.

Tahira and Mugenda (2000) mentioned that twice as many women as men

reported buying without need, buying things they wouldn’t need and making

unplanned purchases. A significantly higher number of women compared with men

reported buying as often as they could, shopping as a method of celebrating,

demonstrated an inability to resist sales, and agreed that spending habits created

chaos in their lives. But women are more likely than men to be satisfied with their

level of savings. Not many findings can be found on the relationship between gender

and the spending behavior but generally, researchers can say that women tend to have

high level of financial stress rather than men. Hence this directional hypothesis being

forwarded:

H3 : There is no gender differences in spending behavior which lead to financial

stress

2.6 Summary

Based on the above literature, it can be seen that there are contradictory views as

to identify whether gender differences is an important element in deciding the

spending way. Each elements will be analyzed carefully by assistance of all the

secondary sources and the primary sources which will collected. As for the

employers, this research paper surely can help to identify the importance in creating

financial well being program in assisting all of their employees in workplace to

generate more profit for the sake of the company.

References

Bhattacharjee, R. B.(2010). Tame the demon of credit card debt. The Edge. Retrieved September 22, 2011, from http://www.theedgemalaysia.com/commentary/178725-tame-the-demon-of-credit-card-debt.html

Borneo Post Online (2011). More women report financial stress. Retrieved September 23,2011, from http://www.theborneopost.com/2011/06/29/more-women-report-%e2%80%98financial-stress%e2%80%99-survey-finds/

Cheu, S. P., and Loke. Y. J. (2008). Credit Card Holders: Distinguishing the good apples from the bad apples. 11th International Convention of the East Asian Economic Asso. Retrieved September, 22, 2011, from http://eprints.usm.my/11456/1/Credit_Cardholders.pdf

C K, C. C. (2009). Credit Cards and the Malaysian Budget 2010. Retrieved September 18, 2011, from http://www.creditcardlighthouse.com/2009/10/credit-cards-and-malaysian-budget-2010.html

Delafrooz, N. and Laily, P. (2011). Personal Saving Behavior among Malaysian Employees: Socio Demographic Comparison. 2011 International Conference on Social Science and HumanityIPEDR. Volume number 5. Page number V2:361 – V2:363. Retrieved September

22, 2011, from http://www.ipedr.net/vol5/no2/79-H10207.pdf

Delafrooz, N., and Laily,H. P. (2011). Determinants of Saving Behavior and Financial Problem among Employees in Malaysia. Australian Journal of Basic and Applied Science, Volume number 5, Issue number 7, Page number 222 – 228. Retrieved September 17, 2011, from http://www.insipub.com/ajbas/2011/July-2011/222-228.pdf

EAP (n.d). Emotions, Money, and Financial Stress. Retrieved September 22, 2011, from http://www.bnl.gov/eap/linkable_files/pdf/Emotions_Money_Financial_Stress.pdf

Financial Literacy Partners (2005). Employee Financial Stress is Costing Your Company a Bundle-And How You Can Stop It Now! Retrieved September 20, 2011, from https://www.takefinancialaction.com/upload/Is_Employee_Financial_Stress_Costing_Your_Company_A_Bundle.pdf

Green, A. (2011). History of Credit Cards. Credit Donkey. Retrieved September 16, 2011, from http://www.creditdonkey.com/history-of-credit.html

Hafalir, E. I., and Loewenstein, G. (2009). The Impact of Credit Cards on Spending: A Field Experiment. Retrieved September 15, 2011, from http://server1.tepper.cmu.edu/Seminars/docs/CreditCardStudy%2009.10.01.pdf

Harian Metro. Profil Hutang AKPK, (2011, September 2). p.1klassifieds C11

Irby, L. (2011). Dos and Don'ts Of Using Credit Cards Responsibly. About.com Guide.

retrieved September 17, 2011, from http://credit.about.com/od/creditcardbasics/a/dosandonts.htm

Irby, L. (2011). Five Spending Habits That Lead To Debt. About.com Guide. retrieved

September 17, 2011, from http://credit.about.com/od/avoidingdebt/tp/debtspending.htm

Malaysia Credit Card (2008). Using Credit Card. Retrieved September 22, 2011, from http://www.creditcardmalaysia.com/using-credit-card/

Saidatulakmal, M. (2004). A Co-integration Analysis on the Saving Rate Determinants in Malaysia. Kajian Malaysia, Jld. XXII, No.1. Retrieved September 15, 2011, from http://eprints.usm.my/17376/1/A_CO-INTEGRATION_ANALYSIS_ON_THE_SAVING_RATE_DETERMINANTS_IN_MALAYSIA.pdf

Tahira K. Hira, & Mugenda, O. (2000). Gender Differences in Financial Perceptions, Behaviors and Satisfaction. FPA Journal. Issues/jfp0200

Zafar, U. A., Ishak, I., M. Sadiq, S., Ibrahim, T. and Hasbalaila, A. (2010). Malaysian consumers’ credit card usage behavior. Asia Pacific Journal of Marketing and Logistics. Volume number 22. Issue Number 4, Page number 528 – 544. Retrieved September 22, 2011, from www.emeraldinsight.com/1355-5855.htm

Chapter 3

3.0 Introduction

This chapter reviews the methodology for this research proposal as overall. As

researchers stated in chapter 1, the aim of this study is to identify the gender

differences in spending behavior which lead to financial stress among employees in

Malaysia. Data for this research will be collected through questionnaires as the

instrument which has been adapted from others’ questionnaires and being adapted

from the theoretical framework model as well(Figure 1) in chapter 1.

3.1 Measurement

Construct measurements in this study are the level of Credit Cards Debts, Saving

Habit (e.g. monthly saving) and The Level of Stress. This study will be able to

identify the correlation between these 3 measurements.

3.2 Questionnaire Design

As being discussed above, a questionnaire was developed to obtain appropriate

amount of data to be analyzed. This questionnaire contains 4 sections to explore (i)

basic demographic information, (ii) the level of credit cards debts among respondents,

(iii) the saving habit of respondents and (iv) the psychological stress level of the

respondents.

In order to record respondents’ opinion and test the relevancy of the

questionnaire, the questionnaire will be distributed through mail to the selected

respondent from the Committee Members of Malaysian Trade Union Congress.

3.3 Sampling Procedure and Data Collection Methods

Researchers decided to apply multistage sampling to obtain unbiased samples.

First of all, to get the right population, researchers went through Malaysian Trade

Union Congress website to identify the whole population of employees in Malaysia.

After went through the website, researchers apply the cluster sampling which refers to

randomly selected group to ensure the selected population will have an equal and

independent chance to be selected for the sample. Researchers decide to cluster it

according to the ‘sector’ such as government sector, private sector, local authorities

and also the employer. Researcher’s sampling frame will be obtained from Malaysian

Trade Union Congress which consists of 662 workers union and more than 800,000

of members in Malaysia. From the sampling frame, researchers will pick up the

sample size according to Sekaran (2010).

To complete the research design process, questionnaires will be distributed at the

end of October if this proposal is being approved and researchers assume the data can

be analyzed in the early of December. Follow ups will be used to ensure the number

of respondents could be reached at the given time.

3.4 Independent and Dependent Variables

According to the theoretical framework in Chapter 1, one independent variable

has been identified which is spending behavior. The mediating variable is gender, and

the dependent variable refers to financial stress level within the workplace.

3.5 Hypothesis Testing

Based on the literature review on chapter 2, several research hypotheses were

developed:

H1: The level of credit card spending can affect the level of financial stress

among employees in workplace

H2 : Saving habit can affect the level of financial stress among employees in

workplace

H3 : There is no gender differences in spending behavior which lead to

financial stress

3.6 Data Analysis

Due to our quantitative research by using a questionnaire the best way to analyse

the data will be the Statistical Package for the Social Science (SPSS) version 19.0

will be applied as two means had been picked up as the most preferable in the

researcher’s study to analyze all the data that been collected from the questionnaires.

Several analyses will be performed:

i. Regression coefficient

Most of the moderator variables measure casual relationship using regression

coefficient. Deciding which variable is the moderator depends in large part on

the researchers’ interest. Researchers pick gender which will give effect to the

relationship of independent variable and dependent variable.

iii. Correlation

To examine the natural relationship between independent and the dependent

variables, this test analysis is the most suitable mean which been called as Pearson

correlation test. Hence, a reliable result will be achieved because the data will be

measure using the continuous scales of measurement. Positive correlation coefficient

means that as the particular independent variable increases, the dependent variable

will also increases and vice versa for determining the negative relationship.

References

Sekaran, U and Bougie, R (2010). Research Methods for Business: A Skill Building Approach, 5th Edition, West Sussex: John Wiley & Sons Ltd

Yu, C. H. (n.d). Statistics, Data Analysis, and Data Mining, Page number 1 – 6. Retrieved July 19, 2010 http://www2.sas.com/proceedings/sugi26/p246-26.pdf