Chapter 3

Chapter 3: Methodology
3.1 Introduction
This chapter aims to look at the design and methodology used to obtain data. It explains the research design, data collection methods, sampling design, and data analysis methods.
3.2 Research Design
This is an explanatory study on the determinants of saving behaviour among university students, a case study of Strathmore University. It can be classified as a cross-sectional study where data is going to be collected for 3months from august to October 2018. This research uses quantitative method as the empirical assessment contains numerical measurements. This research follows the theory of planned behaviour used by ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“author”:{“dropping-particle”:””,”family”:”Zyed”,”given”:”Zafirah Al Sadat Binti”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Axsen”,”given”:””,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Faculty of Built Environment University of Malaya”,”id”:”ITEM-1″,”issue”:”May”,”issued”:{“date-parts”:”2014″},”page”:”1-7″,”title”:”DETERMINANTS OF SAVING BEHAVIOUR AMONG THE UNIVERSITY STUDENTS IN MALAYSIA BY TAN CHANG TSEN A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF COMMERCE ( HONS ) ACCOUNTING FACULTY OF BUSINESS AND FINANCE”,”type”:”article-journal”,”volume”:”1″},”uris”:”http://www.mendeley.com/documents/?uuid=d3d045b4-90c1-469c-92ba-d54a36963aea”},”mendeley”:{“formattedCitation”:”(Zyed & Axsen, 2014)”,”plainTextFormattedCitation”:”(Zyed & Axsen, 2014)”,”previouslyFormattedCitation”:”(Zyed & Axsen, 2014)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Zyed & Axsen, 2014) and ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.3968/j.ccc.1923670020100603.009″,”ISSN”:”17128358″,”abstract”:”This study analyzes the relationship of savings behavior and financial problems to financial literacy among college students in Malaysia. Controlling for correlates of financial literacy, multivariate analysis of a sample obtained at 11 colleges and universities demonstrated that students who had higher financial knowledge test scores were more likely to report savings behavior and also reported fewer financial problems. The influence of childhood consumer experience and financial socialization agents on savings and financial problems was more mixed, indicating that financial experience before college may create bad habits or poor attitudes toward financial management that could be mitigated through financial education during college. Implications of these findings for targeting financial education on particular kinds of students are discussed. Key words: Savings behavour; financial problems; financial literacy; college students”,”author”:{“dropping-particle”:””,”family”:”Sabri”,”given”:”Mohamad Fazli”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”MacDonald”,”given”:”Maurice”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Crosscultural Communication”,”id”:”ITEM-1″,”issue”:”3″,”issued”:{“date-parts”:”2010″},”page”:”P103-110″,”title”:”Savings Behavior and Financial Problems among College Students: The Role of Financial Literacy in Malaysia | Sabri | Cross-cultural Communication”,”type”:”article-journal”,”volume”:”6″},”uris”:”http://www.mendeley.com/documents/?uuid=2c401ce2-b2e1-4566-900a-2ba6d9593a8e”},”mendeley”:{“formattedCitation”:”(Sabri & MacDonald, 2010)”,”plainTextFormattedCitation”:”(Sabri & MacDonald, 2010)”,”previouslyFormattedCitation”:”(Sabri & MacDonald, 2010)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Sabri & MacDonald, 2010) to test the relationship between the four independent variables (Financial literacy, parental socialization, peer influence and self control) and the dependent variable savings behaviour.
3.3 Population and Sampling
Sampling design is a process to select an appropriate amount of units from the population of interest to provide accurate information about the entire population. ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“author”:{“dropping-particle”:””,”family”:”Zyed”,”given”:”Zafirah Al Sadat Binti”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Axsen”,”given”:””,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Faculty of Built Environment University of Malaya”,”id”:”ITEM-1″,”issue”:”May”,”issued”:{“date-parts”:”2014″},”page”:”1-7″,”title”:”DETERMINANTS OF SAVING BEHAVIOUR AMONG THE UNIVERSITY STUDENTS IN MALAYSIA BY TAN CHANG TSEN A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF COMMERCE ( HONS ) ACCOUNTING FACULTY OF BUSINESS AND FINANCE”,”type”:”article-journal”,”volume”:”1″},”uris”:”http://www.mendeley.com/documents/?uuid=d3d045b4-90c1-469c-92ba-d54a36963aea”},”mendeley”:{“formattedCitation”:”(Zyed & Axsen, 2014)”,”plainTextFormattedCitation”:”(Zyed & Axsen, 2014)”,”previouslyFormattedCitation”:”(Zyed & Axsen, 2014)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Zyed & Axsen, 2014)
3.3.1 Target population
The target population is the entire group of people a researcher is interested in. ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.3102/00346543067001043″,”ISBN”:”WPS6107″,”ISSN”:”04194209″,”PMID”:”11752481″,”abstract”:”Financial literacy programs are fast becoming a key ingredient in financial policy reform worldwide. Yet, what is financial literacy exactly and what do we know of its effectiveness? This paper collects insights from the literature thus far and summarizes global evidence on financial literacy, its correlates, and existing and upcoming causal investigations. The authors conclude with a synthesis of policy advice and practical suggestions for the way forward in this fast growing area of research.”,”author”:{“dropping-particle”:””,”family”:”Xu”,”given”:”Lisa”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Zia”,”given”:”Bilal”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Policy Research Working Paper”,”id”:”ITEM-1″,”issue”:”6107″,”issued”:{“date-parts”:”2012″},”page”:”1-56″,”title”:”Financial Literacy around the World: An Overview of the Evidence with Practical Suggestions for the Way Forward”,”type”:”article-journal”},”uris”:”http://www.mendeley.com/documents/?uuid=a3e77f02-1b03-49d2-a7b9-2b881d817e54″},”mendeley”:{“formattedCitation”:”(Xu & Zia, 2012)”,”plainTextFormattedCitation”:”(Xu & Zia, 2012)”,”previouslyFormattedCitation”:”(Xu & Zia, 2012)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Xu & Zia, 2012) In this research the target population is the over 6,000 students in Strathmore University.
3.3.2 Sample size
The minimum sample size of 384students is considered to be representative and sufficient at a 95 confidence level for population range from 1,000,000 to 10,000,000 (Saunders et al., 2009). Besides, Cattell (1978) also recommended a minimum size of 250 respondents for research with three to six independent variables. Since there are only four independent variables to be studied in this research, a total of 300 samples are deemed sufficient to represent the population.

3.3.3 Sampling Elements
The target respondents are fulltime students and professional courses students at Strathmore University. The fulltime students represent students from the various courses of study and qualifications. This leads to more general and accurate results.
3.3.4 Sampling Technique
Non-probability sampling technique is employed in the research as it ensures good estimates of the population characteristics (Malhotra, 2010). The research then uses a convenience sampling technique to obtain data where the sample is selected randomly until the required sample size is met. Questionnaires therefore will be distributed to university students randomly until the amount equals the sample size
3.4 Data Collection and Methods
The two types of data are primary data and secondary data. In this research, primary data collection method is used to obtain information and opinions directly from the university students in Strathmore University.
3.4.1 Primary data
Primary data obtained first hand from the university students provides up to date and accurate information which helps is answering our research questions. In this research, primary data is going to be collected using a questionnaire that relates to the students saving behaviour. So as to get sufficient information, the questionnaires will be distributed to 600 students around Strathmore University. The students will be given a time limit of 20 minutes to answer the questions. The self- administered questionnaire will then be collected to make sure the respondents answered all the questions.
3.5 Construct measurement
Measurement is determination of ratios or numbers to represent size of objects. The four levels of measurement scales are nominal, ordinal, interval and ratio.

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3.5.1 Demographic variables
Ordinal and nominal scales are used to measure the demographic variables of respondents in certain section. Ordinal scale can be used in this research to measure the age and allowance received from parents per month containing less than and greater than judgments from respondents.

3.5.2 Independent variables
An interval scale measurement is employed to measure the independent variables. All the independent variables are measured using a five-point Likert scale ranging from strongly disagree (1) to strongly agree (5).

3.5.3 Financial literacy
Seven questions have been developed to measure the agreement level of the students on the extent to which they possess financial literacy. These questions are mainly adopted from Hira and Loibl (2005) and Cude et al. (2006). A higher scale indicates respondents possess greater financial literacy and vice versa.ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“author”:{“dropping-particle”:””,”family”:”Huston”,”given”:”Sandra J”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”id”:”ITEM-1″,”issue”:”2″,”issued”:{“date-parts”:”2016″},”page”:”296-316″,”title”:”Measuring Financial Literacy Author ( s ): SANDRA J . HUSTON Source : The Journal of Consumer Affairs , Vol . 44 , No . 2 , Second Special Issue on Financial Published by : Wiley Stable URL : http://www.jstor.org/stable/23859793 Accessed : 12-06-2016 23 :”,”type”:”article-journal”,”volume”:”44″},”uris”:”http://www.mendeley.com/documents/?uuid=9a101366-3a07-40ab-8a4f-d68e945e3036″},”mendeley”:{“formattedCitation”:”(Huston, 2016)”,”plainTextFormattedCitation”:”(Huston, 2016)”,”previouslyFormattedCitation”:”(Huston, 2016)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Huston, 2016)
3.5.4 Parental socialization
Eight questions have been developed to measure the relationship of the students saving behaviour to their parents. A high scale score indicates high influence of parental socialization to the students saving behaviour and vice versa. ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“author”:{“dropping-particle”:””,”family”:”Zyed”,”given”:”Zafirah Al Sadat Binti”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Axsen”,”given”:””,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Faculty of Built Environment University of Malaya”,”id”:”ITEM-1″,”issue”:”May”,”issued”:{“date-parts”:”2014″},”page”:”1-7″,”title”:”DETERMINANTS OF SAVING BEHAVIOUR AMONG THE UNIVERSITY STUDENTS IN MALAYSIA BY TAN CHANG TSEN A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF COMMERCE ( HONS ) ACCOUNTING FACULTY OF BUSINESS AND FINANCE”,”type”:”article-journal”,”volume”:”1″},”uris”:”http://www.mendeley.com/documents/?uuid=d3d045b4-90c1-469c-92ba-d54a36963aea”},”mendeley”:{“formattedCitation”:”(Zyed & Axsen, 2014)”,”plainTextFormattedCitation”:”(Zyed & Axsen, 2014)”,”previouslyFormattedCitation”:”(Zyed & Axsen, 2014)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Zyed & Axsen, 2014)
3.5.5 Peer influence
Five questions have been developed to measure the extent to which peers influence the saving behaviour of their fellow students. A high score indicates high peer influence and vice versa. ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“author”:{“dropping-particle”:””,”family”:”Zyed”,”given”:”Zafirah Al Sadat Binti”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Axsen”,”given”:””,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Faculty of Built Environment University of Malaya”,”id”:”ITEM-1″,”issue”:”May”,”issued”:{“date-parts”:”2014″},”page”:”1-7″,”title”:”DETERMINANTS OF SAVING BEHAVIOUR AMONG THE UNIVERSITY STUDENTS IN MALAYSIA BY TAN CHANG TSEN A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF COMMERCE ( HONS ) ACCOUNTING FACULTY OF BUSINESS AND FINANCE”,”type”:”article-journal”,”volume”:”1″},”uris”:”http://www.mendeley.com/documents/?uuid=d3d045b4-90c1-469c-92ba-d54a36963aea”},”mendeley”:{“formattedCitation”:”(Zyed & Axsen, 2014)”,”plainTextFormattedCitation”:”(Zyed & Axsen, 2014)”,”previouslyFormattedCitation”:”(Zyed & Axsen, 2014)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Zyed & Axsen, 2014)
3.5.6 Self-control
Ten questions have been developed to measure the extent to which self control influences the saving behaviour of students. A higher score indicates students have greater impulsivity which results a lower self-control and vice versa.

3.5.7 Dependent variables
Eight questions have been developed to rate the saving behaviour of students. A higher scale demonstrates the respondents practices effective saving behaviour and vice versa.

3.5 Data Analysis
Once the respondents return the questionnaires, they will be checked and reviewed to ensure completeness and also discard the incomplete questionnaires. The objectives of data analysis include measuring central of tendency and variability and testing reliability. This is to prevent any errors that may invalidate this research. This analysis enables us to compare the variables numerically hence it becomes statistical and data can be interpreted. Mean, median and mode are used to measure the central tendency while standard deviation, variance and skewness are used to measure variability of the data. Additionally, pie charts are inserted to make the data more understandable and effectively communicate with the readers in visually appealing way (Hair, et al., 2003).

3.6 Research Quality (Research Validity & Reliability)
This research uses Cronbach’s alpha to ensure the results obtained are free from bias so as to get accurate results. This test is mainly appropriate for multi- scaled items. The co-efficient alpha value ranges from 0 to 1. The rule of thumb for Cronbach’s alpha coefficient value works as shown below.
Alpha Coefficient Range Strength of Association
0.60 And below- Poor
0.60- 0.70- Moderate
0.70- 0.80- Good
0.80 – 0.90- Very good
0.90 And above Excellent
Source: Hair, J. F., Babin, B. Jr., Money, A. H., & Samouel, P. (2003). Essential of business research methods, United Stated of America: John Wiley & Sons. ADDIN CSL_CITATION {“citationItems”:{“id”:”ITEM-1″,”itemData”:{“author”:{“dropping-particle”:””,”family”:”Zyed”,”given”:”Zafirah Al Sadat Binti”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Axsen”,”given”:””,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},”container-title”:”Faculty of Built Environment University of Malaya”,”id”:”ITEM-1″,”issue”:”May”,”issued”:{“date-parts”:”2014″},”page”:”1-7″,”title”:”DETERMINANTS OF SAVING BEHAVIOUR AMONG THE UNIVERSITY STUDENTS IN MALAYSIA BY TAN CHANG TSEN A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF COMMERCE ( HONS ) ACCOUNTING FACULTY OF BUSINESS AND FINANCE”,”type”:”article-journal”,”volume”:”1″},”uris”:”http://www.mendeley.com/documents/?uuid=d3d045b4-90c1-469c-92ba-d54a36963aea”},”mendeley”:{“formattedCitation”:”(Zyed & Axsen, 2014)”,”plainTextFormattedCitation”:”(Zyed & Axsen, 2014)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Zyed & Axsen, 2014)
3.7 Ethical Considerations
The research respondent’s information is to be kept private and confidential. There should also be full consent of the respondents to participate in the survey. The respondents will not also be judged or harmed as a result of their participation in the survey. The anonymity of the respondents in the survey has also to be assured.