i
COMPULSIVE BUYING BEHAVIOR:
THE EFFECTS OF POCKET MONEY, PEER
ACCEPTANCE, MONEY RETENTION
AND ITS IMPACT ON BORROWING HABIT
Thesis
Proposed to Master of Management Postgraduate Program
to Obtain The Master of Management Degree
By:
Iwi Rambu Kareri
912012034
Master of Management Study Program
Postgraduate Program
Satya Wacana Christian University
Salatiga
ii
APPROVAL PAGE
The Title : Compulsive Buying Behavior: The Effects of Pocket Money, Peer Acceptance, Money Retention and Its
Impact on Borrowing Habit
Name : Iwi Rambu Kareri
Student Numer : 912012034
Program : Master of Management
Approved by
Advisor
Prof. Supramono, SE., MBA., DBA
The Chairperson of Master of Management
Prof. Christantius Dwiatmadja, SE., ME., Ph.D
Defended before the Board of Examiners on June 17th,2014
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STATEMENT OF WORK’S ORIGINALITY
I undersigned here:
Name : Iwi Rambu Kareri
NIM : 912012034
Program : Master of Management
Address : Jl. Rumbia no.42 Kupang, East Nusa Tenggara
I honestly declare that this thesis, entitled Compulsive Buying Behavior: The Effects of Pocket Money, Peer Acceptance, Money Retention and Its
Impact on Borrowing Habit, which I have written, does not contain the
work or parts of the work of other people, except those who cited in the quotations and references, as a scientific paper should.
Salatiga, June , 2014 The writer
iv ABSTRACT
The objective of the study is to analyze the effect of pocket money, peer acceptance, and money retention to Compulsive Buying Behavior (CBB) and to borrowing habit, as well as the effect of CBB to borrowing habit. Using a sample of 200 college students, the data was collected by means of questionnaire. The result of this study revealed that peer acceptance and money retention had impact on determining the level of CBB. Meanwhile, only money retention had direct impact on borrowing habit. Moreover, CBB also mediated the effect of money retention on borrowing
habit. The students’ amount of pocket money did not affect both CBB and
borrowing habit.
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ACKNOWLEDGEMENTS
Give thanks to Lord Jesus for His guidance in doing this thesis. The writer realized that there were a lot of people that have helped the wrtier during the completing of this thesis. They were the people who gave support and prayers for the writer so this thesis could be done.
1. I profoundly would like to express grateful for my family: my parents, my two sisters and one and only brother who have provided me with endless prayers and support.
2. My gratitude goes to my supervisor, Prof. Supramono, SE., MBA., DBA, for the valuable feedback, the constructive advices throughout the writing of this thesis, and above it all for being one of my inspirations. 3. To all the lecturers for the knowledge they have shared and for the
motivation they have given, I would like to give my sincere thanks. I would also like to thank Mbak Ira for all the help throughout my study. 4. I thank all the students who have been willing to become my
respondents. I would also like to thank Mas Yus, Rama, Vita, Sara, Ronald, Ade, Indrika, Ria, Icha, Nita, Mosby, and Yobo for the help during the collecting data process.
5. Special thanks I would like to give to all my classmates in MM batch 25 and also to MM batch 26, especially to Iin, Epin, and Messach for the togetherness, the pleasant memories, especially for the encouragement.
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Table of Content
Contents Page
Title ... i
Approval ... ii
Statement of Work’s Originality ... iii
Abstract ... iv
Chapter II Review of Related Literature&Hypothesis Development 2.1 Personal Finance ... 6
2.7.8 The Mediating Role of CBB on the Effect of Pocket Money to Borrowing Habit ... 18
2.7.9 The Mediating Role of CBB on the Effect of Peer Acceptance to Borrowing Habit ... 19
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Chapter IV Results and Discussion 4.1 Respondents’ Characteristics ... 27
4.3.2 Full Structural Equation Model Analysis ... 36
4.3.2.1 Model Fit ... 36
2.7.8 The Mediating Role of CBB on the Effect of Pocket Money to Borrowing Habit ... 63
2.7.9 The Mediating Role of CBB on the Effect of Peer Acceptance to Borrowing Habit ... 64
2.7.10 The Mediating Role of CBB on the Effect of Money Retention to Borrowing Habit ... 65
Chapter V Conclusions and Implications 5.1 Conclusion ... 67
5.2 Theoretical Implications ... 69
5.3 Applied Implications ... 70
5.4 Limitations and Recommendations for Further Research ... 71
References ... 74
viii List of Figures
Figure Page
2.1 Research Model ... 22
4.1 CFA for Exogenous Construct ... 35
4.2 CFA for Endogenous Construct ... 36
4.3 Full Model Structural before Modification ... 38
ix List of Tables
Table Page
3.1 Concepts and Indicators ... 24
4.1 Respondents’ Characteristics ... 27
4.2 Assessment of Normality ... 30
4.3 Descriptive Statistics of Z-score ... 31
4.4 Residuals Statistics ... 32
4.5 Exogenous Construct Goodness of Fit Indices ... 33
4.6 Endogenous Construct Goodness of Fit Indices ... 34
4.7 Full Model Structural Goodness of Fit Indices before Modification ... 37
4.8 Squarred Multiple Correlations ... 37
4.9 Full Model Structural Goodness of Fit Indices after Modification 40 4.10 Construct Reliability ... 41
4.11 Descriptive Statistics of Peer Acceptance, Money Retention, CBB, and Borrowing Habit ... 42
4.12 Regression Weights ... 45
4.13 Standardized Regression Weights ... 45
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5. Statistic Descriptive of Pocket Money ... 83
6. Statistic Descriptive of Average Peer Acceptance ... 83
7. Statistic Descriptive of Average Money Retention ... 84
8. Assessment of Normality ... 84
9. Univariate Outliers ... 85
10. Multivariate Outliers ... 86
11. Instruments’ Validity ... 86
12. Instruments’ Reliabiltiy ... 87
13. Statistic Descriptive of the Instruments ... 88
14. Regression Weight ... 89
15. Standardized Regression Weight ... 89
16. The Output of CFA ... 90
17. The Output of Full SEM before Modification ... 92
18. The Output of Full SEM after Modification ... 93
19. The Relationship between Money Retention and Borrowing Habit 95 20. The Relationship between Money Retention and CBB ... 95
21. The Mediating Effect ... 96
22. Respondents’ Characteristics ... 98
23. Respondents’ Answers ... 104
