background n problem statement

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CHAPTER 1

INTRODUCTION

1.0INTRODUCTION

This section aims at discussing the scope of the research.

1.1 BACKGROUND OF STUDY

Generally, spending means the act of spending or disbursing money. It also can be stated

as outgo: money that paid out otherwise refers as an amount spends for something. The spending

pattern is about the people behavior in spending their money and this behavior is vary among

people. The spending pattern among people is mostly depending on the economic situation other

than other factors. People will spend most money when economic is blooming. At this time,

people are thought to have more purchasing power. This is because they can coop with the price

and affordable to buy things. At this time people will spend most of their income or money to go

for shopping as the value of money tends to be high. Instead of, this situation will become vice

versa when economics slow down. People will spend less when economic is slow down. At this

time, the purchasing power is low because they can not afford with the price, so they can only

focus on necessity things and tend to save more money than spend it. The value of money is

decrease.

Then, when the world faces economic problem, especially when the oil and other

commodities price is increase, it brings the great effect on people spending pattern. People being

more wisely in spending their money as their income probably can not afford their expenses.

This situation affects people purchasing power. People now tend to spend only on necessity

things rather than personal things as one of the way for saving.


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Different people have different spending behavior as different people demand for different

things. Of course people may have different needs and wants. The spending pattern vary in term

of gender, marital status, family size, social classes, job level and etc.People always thought that

women are spent more than men. Besides, married people and unmarried people will have

different spending behavior because their needs and wants are varying according to family size.

Basically, people with large family are intend to spend more for their needs and wants as

compare to people who still single. It goes same with the people who have high job level and

have high rank in social class may intend to spend more as their spending pattern are whether

based on their needs, wants or affordable.

So, this study is focus on determining the various factors leading to the various spending

pattern among people, especially focus on staffs at UiTM Machang Kelantan.


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1.2 PROBLEM STATEMENT

The pattern of spending behavior might change due to certain causes.Obsviously; the

economic situation plays an important determinant of the appending pattern. In economic

recession, of course people purchasing power is low as they can not afford to coop with the

price, thus, the spending is low. It goes same as when economic is blooming. The people

purchasing power is relatively high as people can afford the price.

As refer to the chart 1.0 in the appendix, the spending pattern among people is affected

by several determinants such as

The income that the UiTM staffs received does not enough to cover their monthly

expenses. Whereby, income that they receive monthly cannot support their expenses until at the

end of the month. The several problems that we found that cause the problem of inadequate

money expenses are as follows:

First, because of the increasing of the commodities price nowadays such as rice, sugar,

oil and etc, which make the household expenses, become increase. Thus, it affects the spending

pattern among people who had married and have large family.

Second, the nature of the income that they received is not same to adapt and meet with

their needs and wants. As for people who have received income less than RM1000 to RM1500.

Nowadays, of course these groups of people cannot compete to satisfy their needs as compare to

people with the high salary.

Third, as we know everyone have their own burden of liabilities such as education loan,

property loan like car and house. Therefore their real income is much lesser than what they had

spent. Thus, it affects the spending pattern among people who had lots of liabilities.


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1.2 PROBLEM STATEMENT


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1.3 OBJECTIVE

First of all the main purpose of the research that we want to conduct is to determined

the spending pattern among the staffs in UiTM Kelantan. What we want to determine here

is whether the family size, income, status, needs and demographic factors such as age and

gender had influenced in their spending pattern. In proving the outlined the outcomes of

this research study, we have chosen all the staffs from all job levels in UiTM Machang to

conduct this study.

A careful review of those question areas lead to the development of the following

specific research objectives:

To identify the allocation of spending expenses among UiTM staff. To identify whether the demographic factors such as age, gender and marital

status influenced the spending pattern among the staff.

To know the relationship between income, various needs and wants have aninfluence toward the spending pattern.

1.4 RESEARCH QUESTION

Is the family size has a direct influence towards spending pattern? Is the income factor has influenced the spending pattern? How much do they spent for the household, health, childrens education?


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1.5 HYPOTHESIS

Hypothesis is defined as an educated guess of a researcher concerning the research problem. The

most important role of hypothesis is to reflect general problem statement that motivates the

researcher to study.

Ho: There is no relationship between the family size and spending pattern.

H1: There is a relationship between the family size and spending pattern.

Ho: There is no relationship between income and spending pattern.

H1: There is a relationship between income and spending pattern.

Ho: There is no relationship between age and spending pattern.

H1: There is a relationship between age and spending pattern.

1.6SCOPE OF STUDY

The study is focus on spending pattern among staffs at UiTM Machang.The populations

involved in our research are UITM Machang's staff and the respondents are both male and

female in UITM Machang. The amounts of the respondents that we take for this research are

100 staff, including married and bachelor staff. From the 100 respondent we divided them

according to their job level which is 25 people per one grade, (A, B, C and D). research is to

examined the factors that affect their various spending pattern.


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1.8 SIGNIFICANCE OF STUDY

The knowledge acquired through this study should contribute to better understanding

of the phenomena of spending pattern among people in Malaysia specially, and in

contributing to the future research in similar areas generally. Since this study may be treated

as a case study, the results should contribute greatly in terms of methodology for studies to

be conducted at a different level of population or with a broader scope of population.

To UiTMThe management will be more understand the factor which

influences the staffs spending pattern. Thus, they can encourage the staffs to be

more efficient in works in order to get appropriate return to meet with their

needs.

To staffsStaffs will be more understand the important of spending wisely and according to

their needs and capabilities.

To researcherResearcher will get some knowledge as well as experiences in conducting this

research. We can know the spending pattern among people in Malaysia generally.


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