Spending profiles of sultan idris education university undergraduates: a CHAID-based segmentation
DOI:
https://doi.org/10.37134/ibej.vol12.4.2019Keywords:
Spending behaviour, undergraduates, Sultan Idris Education University, Chi-squared Automatic Interaction Detector, decision tree analysisAbstract
Issues on college students spending behaviour have been studied numerous times due to improper use of education funds. Various studies examined determinant factors for this misbehaviour in order to understand, identify and recommend ways to educate these future generations. Some documented relationships between financial behaviours and financial literacy, money beliefs and socialization agents. This study walks the same path but focuses on spending behaviour rather than financial behaviour and examines its association with determinant factors by means segmentation analysis. The aim of the study is to profile Sultan Idris Education University undergraduates’ according to their spending using a decision tree analysis procedure called Chi-squared Automatic Interaction Detector (CHAID). CHAID generates predictive tree models by segmenting based on predictor variables which include demographic characteristics, program of study related traits and funding aspects that were utilized to profiles students’ spending. Spending in this study excludes most incurred expenditures namely living and subsistence costs. Spending profiles were determined based on 751 feedbacks received from business students of Sultan Idris Education University. It was found that, top five most incurred non-subsistence expenses were personal hygiene products, study materials, telecommunications services, clothing and health products. Interestingly, all these five types of spending can be segmented according to only one predictor variable namely, faculty. It can be assumed from this results that, spending profiles are shared within the same faculty. Since spending profiles can be differentiated between faculties, it can be recommended that education programs directed at influencing spending behaviour should be tailor-made according to faculties.
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References
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Gentina, E., Shrum, L., Lowrey, T. M., Vitell, S. J., & Rose, G. M. (2018). An integrative model of the influence of parental and peer support on consumer ethical beliefs: The mediating role of self-esteem, power, and materialism. Journal of Business Ethics, 150(4), 1173-1186.
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Lemrová, S., Reiterová, E., Fatěnová, R., Lemr, K., & Tang, T. L.-P. (2014). Money is power: Monetary intelligence—love of money and temptation of materialism among Czech University students. Journal of Business Ethics, 125(2), 329-348.
Lynch, A., Best, T., Gutierrez, S. C., & Daily, J. A. (2018). What should I do with my student loans? A proposed strategy for educational debt management. Journal of graduate medical education, 10(1), 11-15.
Masuo, D. M., Malroutu, Y. L., Hanashiro, R., & Kim, J. H. (2004). College Students' Money Beliefs and Behaviors: An Asian Perspective. Journal of family and economic issues, 25(4), 469-481.
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Muniady, R., Al-Mamun, A., Permarupan, P. Y., & Zainol, N. R. B. (2014). Factors Influencing Consumer Behavior: A Study among University Students in Malaysia. Asian Social Science, 10(9), 18.
Norhaslinda Daud, Norlia Mat Norwani, Rohaila Yusof (2018). The Primaru Sources of Student Financing in Higher Education Institutions. International Journal of Academic Research in Business and Social Sciences, 8(11), 1888-1895
OnCampus Research. (2018). Student Watch: Attitudes and Behavior toward Course Materials 2017-2018 Report. The College Store Magazine. http://www.nacs.org/email/html/OnCampusResearch/SPR-080-03-12_Client%20Newsletter.pdf
Paul, M., Nolan, J., & Smith-Hunter, A. (2017). Financially at Risk: A look at College Students. Credit Card Usage. Journal of Higher Education Theory and Practice, 17(5), 110-128.
Serido, J., Curran, M. J., Wilmarth, M., Ahn, S. Y., Shim, S., & Ballard, J. (2015). The Unique Role of Parents and Romantic Partners on College Students' Financial Attitudes and Behaviors. Family Relations, 64(5), 696-710.
Singh, S., Rylander, D. H., & Mims, T. C. (2018). Understanding credit card payment behavior among college students. Journal of Financial Services Marketing, 23(1), 38-49.
Sorooshian, S., & Teck, T. S. (2014). Spending behaviour of a case of Asian university students. Asian Social Science, 10(2), 64.
Souma, W. (2001). Universal structure of the personal income distribution. Fractals, 9(04), 463-470.
Wang, J., & Xiao, J. J. (2009). Buying behavior, social support and credit card indebtedness of college students. International Journal of Consumer Studies, 33(1), 2-10.
Zendehdel, M., Paim, L. H., & Osman, S. B. (2015). Students’ online purchasing behavior in Malaysia: Understanding online shopping attitude. Cogent Business & Management, 2(1), 1078428.
Anderson, C., & Card, K. (2015). Effective practices of financial education for college students: students' perceptions of credit card use and financial responsibility. College Student Journal, 49(2), 271-279.
Avery, C., & Turner, S. (2012). Student Loans: Do College Students Borrow Too Much--Or Not Enough? Journal of Economic Perspectives, 26(1), 165-192.
Ayupp, K., Ling, L. N., & Tudin, A. (2013). An Analysis of Luxury Products Purchasing Behavior of Malaysian University Students. Asian Journal of Social Sciences and Humanities, 2(4), 219-227.
Banerjee, A., Yakovenko, V. M., & Di Matteo, T. (2006). A study of the personal income distribution in Australia. Physica A: statistical mechanics and its applications, 370(1), 54-59.
Baran, B., & Kihç, E. (2015). Applying the CHAID algorithm to analyze how achievement is influenced by university students' demographics, study habits, and technology familiarity. Journal of Educational Technology & Society, 18(2), 323-335.
Beale, E. M., & Cude, B. J. (2017). College Students’ Attitudes toward Debt. International Journal of Undergraduate Research and Creative Activities, 9(1), 5.
Ching, T. H., Tang, C. S., Wu, A., & Yan, E. (2016). Gender Differences in Pathways to Compulsive Buying in Chinese College Students in Hong Kong and Macau. Journal of behavioral addictions, 5(1), 1-9.
Coussement, K., Van den Bossche, F. A. M., & De Bock, K. W. (2014). Data accuracy's impact on segmentation performance: Benchmarking RFM analysis, logistic regression, and decision trees. Journal of Business Research, 67(1), 2751-2758. doi: http://dx.doi.org/10.1016/j.jbusres.2012.09.024
Deloitte. (2019). 2019 Back-to-College Market Study (pp. 14). UK: Deloitte Center for Industry Insights.
Desrochers, D. M., & Hurlburt, S. (2014). Trends in College Spending: 2001-2011. A Delta Data Update. Delta Cost Project at American Institutes for Research.
Desrochers, D. M., & Hurlburt, S. (2016). Trends in College Spending: 2003-2013. Where Does the Money Come From? Where Does It Go? What Does It Buy? Delta Cost Project at American Institutes for Research.
eMarketer. (2014). College Students May Not Be as Broke as You Think. Retrieved 20 October 2014, from http://www.emarketer.com/Article/College-Students-May-Not-Broke-You-Think/1011019
Gelman, M., Kariv, S., Shapiro, M. D., Silverman, D., & Tadelis, S. (2014). Harnessing naturally occurring data to measure the response of spending to income. Science, 345(6193), 212-215.
Gentina, E., Shrum, L., Lowrey, T. M., Vitell, S. J., & Rose, G. M. (2018). An integrative model of the influence of parental and peer support on consumer ethical beliefs: The mediating role of self-esteem, power, and materialism. Journal of Business Ethics, 150(4), 1173-1186.
Gordon, M., & Pemberton, C. (2018). Factors Influencing Purchasing Behaviour for Clothing by Adolescents: Implications for Their Food Purchasing, The Journal of the Carribean Agro-Economic Society, 10(1), 53-65
Harnish, R. J., Bridges, K. R., & Karelitz, J. L. (2017). Compulsive buying: prevalence, irrational beliefs and purchasing. International Journal of Mental Health and Addiction, 15(5), 993-1007.
Hayhoe, C., Leach, L. J., Allen, M., & Edwards, R. (2005). Credit cards held by college students. Journal of Financial Counseling and Planning, 16(1).
Ismail, N., & Zainal, N. S. (2004). Analisis penggunaan wang Perbadanan Tabung Pendidikan Tinggi Negara (PTPTN) di kalangan pelajar Universiti Teknologi MARA (UiTM).
Jalil, N. A., Yusof, H., Rambeli, N., Samsudin, N., & Zakariya, Z. (2015). The Expenditure Behavior of the Economic Literates. International Business Education Journal (IBEJ), 8(1), 95-104.
Jorgensen, B. L., Foster, D., Jensen, J. F., & Vieira, E. (2017). Financial Attitudes and Responsible Spending Behavior of Emerging Adults: Does Geographic Location Matter? Journal of family and economic issues, 38(1), 70-83. doi: http://dx.doi.org/10.1007/s10834-016-9512-5
Kalender, I. (2017). Do university students really need to be taught by the best instructors to learn? Cogent Education, 4(1), 1389334.
Karakaya, I., Mehmet, S., Corbaci, E. C., & Cetin, B. (2018). An Investigation of the Factors That Affect High School Students’ Attitudes Towards Social Media by CHAID Analysis. Eurasian Journal of Educational Research, 18(76), 21-40.
Lemrová, S., Reiterová, E., Fatěnová, R., Lemr, K., & Tang, T. L.-P. (2014). Money is power: Monetary intelligence—love of money and temptation of materialism among Czech University students. Journal of Business Ethics, 125(2), 329-348.
Lynch, A., Best, T., Gutierrez, S. C., & Daily, J. A. (2018). What should I do with my student loans? A proposed strategy for educational debt management. Journal of graduate medical education, 10(1), 11-15.
Masuo, D. M., Malroutu, Y. L., Hanashiro, R., & Kim, J. H. (2004). College Students' Money Beliefs and Behaviors: An Asian Perspective. Journal of family and economic issues, 25(4), 469-481.
Milanović, M., & Stamenković, M. (2016). CHAID decision tree: Methodological frame and application. Economic Themes, 54(4), 563-586.
Mokhlis, S., & Yaakop, A. Y. (2012). Consumer choice criteria in mobile phone selection: An investigation of malaysian university students. International Review of Social Sciences and Humanities, 2(2), 203-212.
Moody, J. (2018). Study: Student Spending On Course Materials Slips. Forbes. Retrieved from Forbes website: https://www.forbes.com/sites/joshmoody/2018/08/18/study-student-spending-on-course-materials-slips/#e9a98b762af3
Muniady, R., Al-Mamun, A., Permarupan, P. Y., & Zainol, N. R. B. (2014). Factors Influencing Consumer Behavior: A Study among University Students in Malaysia. Asian Social Science, 10(9), 18.
Norhaslinda Daud, Norlia Mat Norwani, Rohaila Yusof (2018). The Primaru Sources of Student Financing in Higher Education Institutions. International Journal of Academic Research in Business and Social Sciences, 8(11), 1888-1895
OnCampus Research. (2018). Student Watch: Attitudes and Behavior toward Course Materials 2017-2018 Report. The College Store Magazine. http://www.nacs.org/email/html/OnCampusResearch/SPR-080-03-12_Client%20Newsletter.pdf
Paul, M., Nolan, J., & Smith-Hunter, A. (2017). Financially at Risk: A look at College Students. Credit Card Usage. Journal of Higher Education Theory and Practice, 17(5), 110-128.
Serido, J., Curran, M. J., Wilmarth, M., Ahn, S. Y., Shim, S., & Ballard, J. (2015). The Unique Role of Parents and Romantic Partners on College Students' Financial Attitudes and Behaviors. Family Relations, 64(5), 696-710.
Singh, S., Rylander, D. H., & Mims, T. C. (2018). Understanding credit card payment behavior among college students. Journal of Financial Services Marketing, 23(1), 38-49.
Sorooshian, S., & Teck, T. S. (2014). Spending behaviour of a case of Asian university students. Asian Social Science, 10(2), 64.
Souma, W. (2001). Universal structure of the personal income distribution. Fractals, 9(04), 463-470.
Wang, J., & Xiao, J. J. (2009). Buying behavior, social support and credit card indebtedness of college students. International Journal of Consumer Studies, 33(1), 2-10.
Zendehdel, M., Paim, L. H., & Osman, S. B. (2015). Students’ online purchasing behavior in Malaysia: Understanding online shopping attitude. Cogent Business & Management, 2(1), 1078428.
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Published
2019-11-20
How to Cite
Khalid, K., & Ismail, R. (2019). Spending profiles of sultan idris education university undergraduates: a CHAID-based segmentation. International Business Education Journal, 12, 39–52. https://doi.org/10.37134/ibej.vol12.4.2019
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