The Impact of Allowance to the Purchasing Behavior as
Preferred by Grade 12 ABM Students of La Consolacion
University Philippines
Abuan, P.V.; Alhambra J.E.; Castillo, J.V.; Dela Cruz, C.P; Lopez, L.P; Santos, H.B.; Ticar, C.L.;
KEYWORDS: Allowance, Purchasing Behavior
ABSTRACT
Aim: The study of this research is to know the
impact of allowance on the purchasing behavior
as preferred by Grade 12 ABM Students of La
Consolacion University Philippines.
Method: In this research, descriptive research
design was used to explain the impact of
allowance on the purchasing behavior of the
students. Researchers used stratified random
sampling to gather data. And questionnaire was
used to collect accurate and reliable data. It was
found that students’ allowance has a big impact on
their purchasing behavior.
INTRODUCTION
Purchasing Behavior or Buying Behavior is
people's buying attitudes and intentions. If a
group of people is exposed to some form of
advertising of a product or a service they will, and
allowance is the sum of money that is given in
every student to buy the things or the expenses
they want. An allowance is money that helps you
to learn how to manage the process of budgeting,
saving, investing, spending cash usage. Though it
is not something we are born with, they are
acquired over one’s lifetime through many
successes and some failures as well. When
buying online, perceived risk is an important
aspect (Mwencha, Muathe, & Thuo, 2014)
because consumers feel uncertain about their
purchase decisions in this setting. It is particularly
2019, La Consolacion University Philippines
important to study the subject of consumer buying
behavior as it facilitate firms to plan and execute
superior business strategies (Khaniwale, 2015).
As privacy concerns increase, the more
consumers will be wary of sharing their personal
information (Mwencha et al., 2014)
Students today have a lot of needs and wants.
Their allowances are limited and it is up to their
parents’ financial state how much their
allowance they can have. It is the main problem
for students on how they will manage their
allowance or their own finance over their needs
and wants. There are many factors that
influence their buying behavior.
According to Clara(2015),researcher discovered
the factors affecting purchasing decisions which
influence consumers buying behavior, and also
discovered subjective factors and objective
factors which motivate buying behavior such as
individual factors final consumers, price, quality
and trust towards purchasing environment. It is
evident that students’ personality had the most
significant effect on consumer behavior
compared to their lifestyle and economic
condition. This study also noted that the
economic situation had a negative relationship
with consumer behavior. Findings of this study
improve our understanding Based on the
outcome of this study, it is evident that students’
personality had the most significant effect on
Senior High School 1
consumer behavior compared to their lifestyle
and economic condition. This study also noted
that the economic situation had a negative
relationship with consumer behavior (Muniady
et al.,2014). Product Usage and Purchasing
Behavior, social status, prestige and satisfaction
is related to people’s tendency to have
consumptive behavior. Therefore, by knowing
these factors, hopefully people will be able to
suppress their consumptive behavior or help the
people in our surroundings not to be
consumptive (Enrico et al.,2014).
A study by Bona (2017) concluded that most of
the respondents spent more money on their
projects and assignments, tuition fees and
school supplies, and room and board. This is
due to increasing price of materials to be used
in doing their projects and assignments.
Moreover, the growing rate of tuition fees, room
and board resulted to more spending. Students
today have a lot of needs and wants. Their
allowance are limited and it is up to their
parents’ financial state how much their
allowance they can have. It is main problem for
students on how they manage their allowance
over their needs and wants. This may include in
personal allowances to cover the cost of food,
school supplies, and other miscellaneous items.
Students with less knowledge on finance tend to
have wrong opinions and make incorrect
decisions (Villanueva,2017).And there is many
factors influence their buying behavior. The
main influencing factors for their buying
behavior identified in this study were availability,
best price, best promotions, comparison,
convenience, customer service, ease of use,
enjoyment, friends/family/relatives, product
information, return policy, time consciousness,
trust, variety and visual merchandising ( Jadhav
and Khanna 2016).
2019, La Consolacion University Philippines
Financial status depends on the source of
finance. The self-sponsored students are more
satisfied than those that get their money either
from their parents or from a scholarship fund. It
was also discovered that the adequacy
/inadequacy of a student’s finance does not
depend on gender. Bi-serial correlation analysis
reveals that adequacy of the money affects
student’s academic performance (Ngene et
al.,2014). The study reveals a positive
correlation between product attribute and
consumer purchase decision (Shih et al.,2015).
When deciding how students manage their
allowance sometimes they are making bad
choices. Sometimes their allowance was
spending in not a good way. Sometimes they
choose first their wants that leads ignored their
needs in school. Consumer behavior mainly
sheds light on how consumers decides to spend
their various resources like time, money etc. on
various products so as to meet their needs and
requirement. Consumer behavior encompasses
study of what, when, why and where the
consumers will buy their products. It also focuses
on how often the consumers use the products
(A,H.Hemanth Kumar, S.Franklin John &
S.Senith 2014) Students' academic
performances are affecting in their lack of
allowance. It is one factors for students not to
finish their study. The financial problems of
students immensely contribute to low
performance, thereby leading to poor quality of
education in a number of ways. In the first place,
most students cannot afford the essential
learning materials like textbooks. Secondly, a
student one who takes lunch every day and
cannot take anything again) cannot be expected
to give his full attention to what is going on in
class. All these lead to absenteeism since the
student may have to be out of school, trying to
meet these needs (Nnamani, C.N, Dikko, H. G &
Kinta, L.M 2014)
Senior High School 2
This study aims to know the impact of students’
allowance on their purchasing behavior. It also
shows the relationship between students’
allowance and their purchasing behavior. And to
know the purchasing behavior of students with
regards to their allowance.
The success of this research benefits different
audiences. This research helps the students to
know the impact of allowance on their purchasing
behavior. The students will be aware of where
they invest their money. Knowing where their
allowances go is a good way because they can
easily manage their money and know their
financial responsibility. This research can also
help the parents to know if the allowance they
give is enough and to identify what is the buying
behavior of every child. Whatever the result of
the study, the students need to know every detail
of their allowance and how their buying behavior
may affect on what they may spend it on. It will
give knowledge to the parents and students who
want to learn how to maintain good purchasing
behavior. It also contributes to the field of
research this can be a review of related literature
to other researchers. And to the future
researcher, it will give them an idea about the
impact of students’ allowance on their purchasing
behavior.
METHOD(S)
This part contains the method that is used by the
researchers to seek information and data about
their research topic. This part of the study
involves the research design, population and
sample size, sampling techniques,
instrumentation, and statistical treatment. The
researchers used descriptive design as their
research design because it is applicable to the
topic. Descriptive research is defined as a
2019, La Consolacion University Philippines
research method that describes the
characteristics of the population or phenomenon
that is being studied. This methodology focuses
more on the “what” of the research subject rather
than the “why” of the research subject. (Adi Bhat
2019) And under the descriptive research design
is survey research design and the researcher
used questionnaire to easily gather accurate data.
The researchers used Slovin;s formula to know
the sample size.
𝑁
𝑛=
1 + 𝑁𝑒 2
The researchers have 249 respondents which
were divided by 13 sections of ABM students.
First, the researchers used Slovin’s Formula to
know the accurate sample size. Second, in
selecting the respondents, researchers went to La
Consolacion University Philippines and went to
the rooms of ABM students. Third, they
distributed the 19 copies of questionnaire
randomly in each section. Fourth, after
distributing the questionnaire the respondents
start to answer the questions. Lastly, after they
finish answering, the researchers collect the
questionnaires and they start tallying the results
of the responses. This questionnaire helps the
researcher to know the impacts of allowance to
the students’ purchasing behavior. According to
Paul Kenyon (2000), there are distinct
advantages in using a survey-questionnaire.
Compared to other methods, questionnaires yield
a broader range of information. It is usually faster
and cheaper than interviews and direct
observations. It is also important to note that
questionnaires provide reliable data that are
simpler to administer, analyze, quote and
interrelate. Researchers used questionnaires to
be able to know the exact answers from the
respondents.
Senior High School 3
The researchers used stratified random sampling
as their technique in selecting the respondents to Source of Allowance
100.00% 82.19%
gather information about the impact of allowance 80.00%
on the purchasing behavior of Grade 12 ABM 60.00%
Students of La Consolacion University 40.00%
13.77%
Philippines. According to Adi Bhat, Stratified 20.00% 4.05%
0.00%
random sampling is a type of probability sampling from from part- from
using which a research organization can branch parents time job scholarship
off the entire population into multiple non- financial wages allowance
assistance
overlapping, homogeneous groups (strata) and
randomly choose final members from the various In the second figure, 82.19% of the respondents
strata for research which reduces cost and said that the source of their allowance came from
improves efficiency. Members in each of these their parents’ financial assistance, 13.77% said
groups should be distinct so that every member of that their allowance came from their part-time
all groups get equal opportunity to be selected wages, and 4.05% said that it came from their
using simple probability. This sampling method is scholarship allowance.
also called random quota sampling.

Results Consideration in Buying

100.00% 89.47%
Daily Allowance
80.00%
50.00% 43.72%
60.00%
40.00% 33.20%
40.00%
30.00%
19.43% 10.53%
20.00% 20.00%
10.00% 3.64% 0.00%
0.00% Yes No
₱0- ₱50.00 ₱51.00- ₱101.00- ₱151.00-
₱100.00 ₱150.00 ₱200.00 In the third figure, it shows the result if they are
considering their financial condition when they
The question was asked to determine the buy a product. It is analyzed that 89.47% agree
respondents’ allowance. It is analyzed that 3.64% that they considered their financial assistance
has an allowance ranging to ₱0- ₱50.00, 33.20% when buying a product and 10.53% disagree.
has an allowance ranging to ₱51.00- ₱100.00,
43.72% has an allowance ranging to ₱101.00-
150.00, and 19.43% has an allowance ranging to
₱151.00- ₱200.00.

2019, La Consolacion University Philippines Senior High School 4

 In the sixth figure, it shows that 80.16% agree
Overestimation of Purchases
that their daily allowance affects their purchasing
100.00% 87.45% behavior while the other 19.84% disagree.
80.00%
60.00%
40.00%
12.55%
Allowance Limitation
20.00%
80.00%
0.00% 64.78%
Yes No 60.00%

40.00%
In the fourth figure, it shows the result if they
overestimate purchases to ensure that they have 20.00% 12.55%
enough money. It is analyzed that 87.45% agree 0.00%
that when they are budgeting their allowance they Yes No
overestimate purchases to ensure that they have
enough money and 12.55% disagree. In the seventh figure, it shows that 64.78% said
that their allowance is limited and 35.22% are not.

Saving Money
100.00% 87.45% Lack of Money
80.00% 30.00% 25.51%
25.00%
60.00% 20.00% 12.96%
15.00%
40.00% 10.00% 3.24% 2.43%
5.00%
20.00% 12.55% 0.00%
lack of lack of lack of others
0.00%
money for money for money for please
Yes No
their their their daily specify
savings wants needs
In the fifth figure, it shows that 87.45% said that
they save money in case of emergencies and the In the eighth figure, it shows that 12.96% said that
other 12.55% said that they didn’t. they don’t have enough money for their savings,
25.51% said that they don’t have enough money
for their wants, 3.24% said that they don’t have
Allowance to Purchasing enough money for their daily needs and the other
Behavior 2.43% are not in the choices.

100.00% 80.16%
80.00%
60.00%
40.00%
19.84%
20.00%
0.00%
Yes No

2019, La Consolacion University Philippines Senior High School 5

 In the eleventh figure, it shows that 78.54% said
Purchasing Behavior Importance
that they prioritize their needs more while 21.46%
to the students
they prioritize their wants.
100.00% 88.26%
80.00%
60.00%
40.00% Allowance for their Needs
20.00% 11.74%
80.00% 74.49%
0.00%
Yes No 60.00%

40.00%
In the ninth figure, it shows the result if they are 25.51%
giving importance to their purchasing behavior. It 20.00%
is analyzed that 88.26% agree that they give 0.00%
importance on their purchasing behavior and Yes No
11.74% disagree.
In the twelfth figure, it shows that 74.49% agree
that they can afford to buy their needs using their
own allowances and 25.51% disagree.
Spending of Allowance
60.00% 51.01%
50.00% 44.53%
40.00% Sufficiency of Allowance for
30.00% 22.27%
Needs
20.00%
56.28%
10.00% 60.00%
0.00% 43.72%
Needs Wants School 40.00%
Expenses
20.00%

In the tenth figure, it shows the result of where 0.00%

they usually spend their allowances. We gathered Yes No
51.01% for their own needs, 44.53% for their
wants and 22.27% for their school expenses. In the thirteenth figure, it shows that 56.28% of
the respondents said that their allowance is
enough for daily needs and 43.72% said that their
allowance is not enough.
Needs vs. Wants
100.00%
78.54%
80.00%
60.00%
40.00%
21.46%
20.00%
0.00%
Needs Wants

2019, La Consolacion University Philippines Senior High School 6


Sufficiency of Allowance for
Wants
80.00%
62.75%
60.00%
37.25%
40.00%
20.00%
0.00%
Yes No
In the fourteenth figure, it shows that 62.75% of
the respondents said that they still have enough
money for their wants while the other 37.25% said
that they do not have enough money for their
wants.
Discussion
Nowadays, students are learning the impact of
allowance on their purchasing behavior.
Purchasing behavior considers many reasons
why personal, situational, psychological, and
social people shop for products, buy and use
them. Oliver Florian Friede (GRIN Verlag,2002)
study of individuals, groups, or organizations and
the processes they use to select, secure, use,
and dispose of products, services, experiences,
or ideas to satisfy needs. The buying behavior of
students affects and had an impact on their
purchasing behavior. Researchers gathered
information about the impact of students buying
behavior to their allowance. Researchers found
out that forty-three point seventy-two percent
(43.72%) of the sample size has an allowance
ranging P101-150 nineteen percent (19%) said
that their source of allowance is from the income
of their parents. Eighty-nine point forty-seven
percent (89.47%) said that they consider their
financial condition whenever they buy a product.
Eight-seven point forty-five percent (87.45%) said
that they overestimate purchases to ensure they
have enough money and they also said that they
2019, La Consolacion University Philippines
save money in case of emergency. Eighty point
sixteen percent (80.16%) agree that their daily
allowance affects their purchasing behavior, sixty-
four point seventy-eight percent (64.78%) said
that their allowance was limited. Twelve point
ninety- six percent (12.96%) said that they don’t
have enough money for their savings. Eighty-
eight point twenty-six percent (88.26%) are giving
importance on their buying behavior. Fifty-one
point 1 percent (51.01%) usually spend their
allowances for their own need. Seventy-eight
point fifty-four percent (78.54%) of the
respondents prioritizes their needs rather than
their wants. Seventy-four point forty-nine percent
(74.45%) agree that they can afford to buy their
needs using their own allowance. Fifty-six point
twenty-eight percent (56.28%) said that their daily
allowance is enough for their daily needs. Lastly,
researchers found out that sixty-two point
seventy-five percent (62.75%) of the sample size
said that they still have money for their wants.
Conclusion
The study about the impact of students’
allowance to their purchasing behavior concludes
that the respondents’ allowance is ranging from
₱101.00 to ₱150.00, majority of their allowance
came from their parents’ financial assistance and
minority came from their own part-time wages. By
that the allowance from their parents’ financial
assistance and part-time wages are limited, their
daily allowance affects their purchasing behavior.
They tend to consider their financial
condition/stability as a tactic to overestimate their
expenses to avoid experiencing shortage in
money, so they should have proper budgeting
and lessen the expenses. Despite of having a
limited allowance they can still save money in
case of emergencies and give importance on their
purchasing behavior. They focused on spending
their allowance on their needs than their wants. In
line with this facts, it is clearly concluded that
Senior High School 7
students’ allowance has a big impact on their
purchasing behavior.

This research tells the impact of students’ buying

behavior to their allowance. As they conducted
the research there are some factors that affect
their buying behavior. Most of the respondents
said that the main source of their allowance was
from their parents’ financial assistance, they
considered their financial condition before buying
products, they overestimate purchases to ensure
they have enough money, their money was not
enough for their wants, etc. Aside from that,
students must reduce their budget for their wants
and focus on what is needed. They can budget
their money for their needs and wants. You must
also check the price and quality before you
purchase a product. They can also start using a
piggy bank or simply keep excess money from
their allowances so that they have money just in
case there’s an emergency.

2019, La Consolacion University Philippines Senior High School 8

Reference Muniady, R., Al- Mamun, A., Permarupan, P., &
Zainol, P. (2014). Factors Influencing
Bhat, A. (n.d.). STRATIFIED RANDOM Consumer Behavior: A Study among
SAMPLING: DEFINITION, METHOD University Students in Malaysia. Canada:
AND EXAMPLES. Canadian Center of Science and
Education.
Bona, J. C. (2017). Spending Behavior Among
Opoku, A. (2015). Financial Literacy Among
College Students. Lahore, Pakistan:
Science International (Lahore) Senior High School Students. Kumasi,
Ashanti, Ghana: KWAME NKRUMAH
Clara, K. W. (2015). Factors affecting Purchasing UNIVERSITY OF SCIENCE AND
TECHNOLOGY.
Decisions of the Consumers in Kinondoni
District: Dar es Salaam City. Morogoro, Villanueva, S. (2017). An Analysis of the Factors
Tanzania: Mzumbe University.
Affecting the Spending and Saving Habits
De Guzman, M., Fojas, G., Inamac, J., Lee, N., of College Students. Saratoga Springs,
New York: Economics Student Theses
Sangria, K., & Tia, T. (2012). A
and Capstone Projects, Skidmore
DESCRIPTIVE RESEARCH ON
College.
ALLOWANCE AND BUDGET OF
SECOND YEAR STUDENTS OF Zendehdel, M., Paim, L., & Osman, S.
UNIVERSITY OF SANTO TOMAS'
COLLEGE OF FINE ARTS AND (2015). Students’ online purchasing
DESIGN. Aleksandra Cuento Buendicho. behavior in Malaysia: Understanding
online shopping attitude (Vol. 2). Cogent
Enrico, A., Aron, R., & Oktavia, W. (2014). The Business & Management.
Factors that Influenced Consumptive
Behavior: A Survey of University
Students in Jakarta. Gujarat, India:
International Journal of Scientific and
Research Publications.
Haider, T., & Shakib, S. (2017). A Study On The
Influences of Advertisement On
Consumer Buying Behavior (Vol. 9).
Business Studies Journal.
Jadhar, V., & Khanna, M. (2016). Factors
influencing online buying behavior of
college students: A qualitative analysis.
Mumbai, India: NSU Works.

2019, La Consolacion University Philippines Senior High School 9


Patrick Jasper V. Abuan
Born at City of Malolos,
Bulacan on april 8, 2001
Studied at central
Elementary School located
at Brgy. sto, rosario
Malolos City, Bulacan. In
High School, transferred at CMIS Sto rosario
located at Santisima Trinidad Malolos City,
Bulacan. Currently a Senior High School Student
at La Consolacion University Philippines taking
Accountancy, Business and Management.
Jea Jemina E. Alhambra
Born at City of Malolos,
Bulacan on December 1,
2000. Studied at Look 1st
Elementary School located
at Brgy. Look 1st Malolos
City, Bulacan. In high
school, transferred at MCHS Santisima Trinidad
located at Santisima Trinidad Malolos City,
Bulacan. Currently
Author’s formao a senior high school student at
La Consolacion University Philippines taking
Accountancy, Business and Management.
Joice Anne V. Castillo
Born at Manila on January
16, 2001. Studied at Sta.
Rita Elementary School
located at Sta. Rita,
Guiguinto, Bulacan. In
2019, La Consolacion University Philippines
High School, transferred at Guiguinto National
Vocational High School located at Poblacion,
Guiguinto, Bulacan. Currently a Senior High
School Student at La Consolaciom University
Philippines taking Accountancy, Business and
Management.
Carolyn P. Dela Cruz
Born at City of Quezon on
June 12 2000. Studied at
Gen. Emilio Isidoro Torres
Memorial Elementary
School at Brgy. Matimbo
Malolos City, Bulacan. In High School, transferred
at Cong. Teodulo C. Natividad Highschool located
at Bangkal, Malolos City, Bulacan. Currently a
Senior High School Student at La Consolacion
University Philippines taking Accountancy,
Business and Management.
Laurence Jay P. Lopez
Born at Malolos, Bulacan
on September, 23, 2001.
Studied at Sta. Cruz
Elementary school located
at Sta. Cruz, Guiguinto,
Bulacan. In High School
transferred at Marcelo H. Del Pilar National
Highschool located at Sta. Isabel Malolos
Bulacan . Currently a Senior High School Student
at La Consolacion University Philippines taking
Accountancy Business and Management.
Hazzel B. Santos
Born at Pulilan, Bulacan on
October 18, 2000. Studied
at Pulilan Central School
located at Poblacion,
Pulilan, Bulacan. In High School, transferred at
Senior High School 10
Engr. Virgilio V. Dionisio Memorial High School
located at Poblacion, Pulilan, Bulacan. Currently
a Senior High School Student at La Consolacion
University Philippines taking Accountancy,
Business and Management.

Clarisse Abegail L. Ticar

Born at City of Malolos,
Bulacan on April 3, 2001.
Studied at Sta. Isabel
Elementary School located
at Brgy. Sta Isabel Malolos
City, Bulacan. In High School, transferred at
Marcelo H. Del Pilar National High School at Brgy
Sta. Isabel Malolos City, Bulacan. Currently a
Senior High School Student at La Consolacion
University Philippines taking Accountancy,
Business and Management.

2019, La Consolacion University Philippines Senior High School 11