RELATIONSHIP BETWEEN CURRENT TRENDS AND SPENDING

BEHAVIOR OF SCHOOL OF BUSINESS MANAGEMENT AND

ACCOUNTANCY STUDENTS

EUNICE CASANDRA A. BUHIAN

FAITH KEIZSA M. GUISADIO
TRISTAN GEORGE O. YBAÑEZ

DECEMBER 2023
 RELATIONSHIP BETWEEN CURRENT TRENDS AND SPENDING BEHAVIOR
OF SCHOOL OF BUSINESS, MANAGEMENT, AND ACCOUNTANCY STUDENTS

-------------------------------------------------------------------------------

A Thesis
Presented to the
Faculty of the School of Business, Management, and Accountancy
Liceo de Cagayan University
Cagayan de Oro City

-------------------------------------------------------------------------------

In Partial Fulfillment of the

Requirements for the Degree
Bachelor of Science in Management Accounting

-------------------------------------------------------------------------------

EUNICE CASANDRA A. BUHIAN

FAITH KEIZSA M. GUISADIO
TRISTAN GEORGE O. YBAÑEZ

DECEMBER 2023
Liceo de Cagayan University School of Business Management and Accountancy Page iii

APPROVAL SHEET

This thesis entitled “RELATIONSHIP BETWEEN CURRENT TRENDS AND

SPENDING BEHAVIOR OF SBMA STUDENTS”, in partial fulfilment of the requirements
for the degree Bachelor of Science in Management Accounting, prepared and submitted by
EUNICE CASANDRA A. BUHIAN, FAITH KEIZSA M. GUISADIO, & TRISTAN
GEORGE O. YBAÑEZ has been examined, accepted and recommended for Oral
Examination.

Mr. Rhey Manuel A. Siao, Jr., DMHRM

__________________________________
Adviser

PANEL OF EXAMINERS

APPROVED in partial fulfillment of the requirements for the degree Bachelor of Science in
Management Accounting by the Panel of Examiners with a grade of ___.

FELSA A. LABIS, PhD, LPT, REB, CPM

Chairman

EDZEN A. ESPINA, DM, RRT, LPT ATTY. LEO PAOLO PEREZ

Member Member

Comprehensive Examination: ________________

FELSA A. LABIS, PhD, LPT, REB, CPM

Dean, School of Business, Management, & Accountancy
Liceo de Cagayan University School of Business Management and Accountancy Page iv

Certificate of Originality

I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief, it contains no material previously published or written by another person
nor material to which to a substantial extent has been accepted for award of any other degree
or diploma of a university or other institute of higher learning, except where due
acknowledgement is made in the text.

I also declare that the intellectual content of this thesis is the product of my work, even
though I may have received assistance from others on style, presentation and language
expression.

_______________________________ __________________
Signature of advisee over printed name Date

_______________________________ __________________
Signature of advisor over printed name Date
Liceo de Cagayan University School of Business Management and Accountancy Page v

GRAMMARLY TEST REPORT

Liceo de Cagayan University School of Business Management and Accountancy Page vi

PLAGIARISM DETECTOR REPORT

Liceo de Cagayan University School of Business Management and Accountancy Page vii

ENGLISH WRITING READABILITY

Liceo de Cagayan University School of Business Management and Accountancy Page viii

English Editing Certification Form

This is to certify that I have edited this thesis manuscript entitled

RELATIONSHIP BETWEEN CURRENT TRENDS AND

SPENDING BEHAVIOR OF SCHOOL OF BUSINESS, MANAGEMENT, AND
ACCOUNTANCY STUDENTS

Prepared by:

EUNICE CASANDRA A. BUHIAN

FAITH KEIZSA M. GUISADIO
TRISTAN GEORGE O. YBAÑEZ

and have found it thorough and acceptable with respect to grammar and composition.

____________________________
Signature over printed name

________________
Date
Liceo de Cagayan University School of Business Management and Accountancy Page ix

DEDICATION
Liceo de Cagayan University School of Business Management and Accountancy Page x

ACKNOWLEDGEMENT
Liceo de Cagayan University School of Business Management and Accountancy Page xi

ABSTRACT
Liceo de Cagayan University School of Business Management and Accountancy Page xii

TABLE OF CONTENTS

Page

COVER PAGE i

TITLE PAGE ii

APPROVAL SHEET iii

CERTIFICATE OF ORIGINALITY iv

GRAMMARLY TEST REPORT v

PLAGIARISM DETECTOR REPORT vi

ENGLISH WRITING READABILITY vii

ENGLISH EDITING CERTIFICATION FORM viii

DEDICATION ix

ACKNOWLEDGMENT x

ABSTRACT xi

TABLE OF CONTENTS xii

LIST OF TABLES xv

LIST OF FIGURES xvi

LIST OF PLATES (If available, e.g. pictures) xvii

Chapter

1 THE PROBLEM AND ITS SCOPE 1

Introduction 1

Theoretical and Conceptual Framework 3

Liceo de Cagayan University School of Business Management and Accountancy Page xiii

Statement of the Problem 6

Hypothesis/Assumption 6

Significance of the Study 7

Scope and Delimitation 7

Definition of Key Terms 8

2 REVIEW OF RELATED LITERATURE AND STUDIES 1

3 METHODOLOGY (if social science research) 18

Research Setting 21

Research Design 21

Respondents of the Study and Sampling Procedure 22

Research Instruments 23

Validity and Reliability of the Instruments 23

Research Protocol 24

Data Gathering Procedure 24

Statistical Techniques 25

4 PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA

Problem 1

Problem 2

Problem 3
Liceo de Cagayan University School of Business Management and Accountancy Page xiv

Problem 4

5 SUMMARIES, CONCLUSIONS

AND RECOMMENDATIONS

Summary

Conclusions

Recommendations

REFERENCES

APPENDICES

A. Letter of Consent
B. Letter of Approval
C. Survey Questionnaires/Laboratory Results/Diagnostic Results 14
D. Curriculum Vitae
Liceo de Cagayan University School of Business Management and Accountancy Page xv

LIST OF TABLES

TABLE TITLE PAGE

Liceo de Cagayan University School of Business Management and Accountancy Page xvi

LIST OF FIGURES

TABLE TITLE PAGE

Liceo de Cagayan University School of Business Management and Accountancy Page xvii

LIST OF PLATES

TABLE TITLE PAGE

Liceo de Cagayan University School of Business Management and Accountancy Page 1

Chapter 1

THE PROBLEM AND ITS SCOPE

Introduction

The spending behavior of college students has long been a subject of interest and

concern, given its implications for financial well-being, education, and the broader economy.

The spending behavior among college students has undergone significant changes, driven by

evolving societal trends, economic factors, and the advent of technology. As young adults

become acculturated in a credit-heavy culture, findings have shown dependence on this method

of payment, resulting in the development of poor habits and personal financial issues (Hayhoe

et al., 2000).The further analysis of personal finance among young adults can help identify

methods to resolve common issues that may arise as well as develop strategies that promote

better financial practices.

People’s spending habits differ based on a number of conditions. Age, income, gender,

ethnicity, family history, personality, and a host of other variables play a role. Therefore, it is

very important for us to know to what extent the youth of our country are aware of different

financial practices and services. According to Carter (2014), spending is the act of investing

money in something a person wants or needs; this can be in the form of goods or services.

Food, shelter, clothing, health care, and transportation are just a few examples. It is not only

important that students have financial knowledge, but also that it is implemented in their daily

lives. Therefore, it is critical to explore the extent to which students are financially literate and

how to promote financial awareness.

Liceo de Cagayan University School of Business Management and Accountancy Page 2

College-aged students are a demographic with a unique set of circumstances that make

focused studies on this group meaningful. For many, young adulthood is the time where

lifelong habits and behaviors are formed. Routines and preferences are established, and

decisions are made that will affect the path in life that each person will take. College students,

specifically, are in a time of significant transition. They are challenged to be independent,

explore the world, and establish an identity. It is a time of great opportunity, but with it comes

many dangers. Students are often uneducated and unguided when it comes to finances

(Beierlein & Neverett, 2013; Goetz et al., 2011; Gudmunson et al., 2015; Markovich &

DeVaney, 1997).

Money is a limited yet critically necessary resource. As such, the ability to control the

movement of one’s finances is a significant factor in quality of life. Despite this, people all

over the globe struggle with handling their finances and covering their cost of living. The

importance of money management stems, quite simply, from common sense. Common

practices that contribute to financial success or struggle include possession of a bank account,

timely bill paying, utilization of an expense tracking system, savings discipline, diversification

of investments, use of a retirement plan, ownership of a home, and understanding of financial

concepts (Hilger et al., 2003).

In the dynamic milieu of contemporary society, the spending behavior of college

students has become intricately entwined with the ever-evolving landscape of current trends.

This research delves into the multifaceted relationship between the prevailing trends and the

financial decisions made by college students. As trends rapidly emerge and dissipate, shaping

societal preferences and influencing consumer choices, it becomes imperative to unravel the
Liceo de Cagayan University School of Business Management and Accountancy Page 3

intricate threads connecting these trends to the spending of the student demographic. The

financial decisions of college students are often reflective of broader societal shifts,

incorporating a myriad of influences ranging from socio-cultural dynamics to economic

considerations. This study seeks to explore the nuanced connections between the adoption of

current trends and the corresponding impact on the spending habits of college students.

By understanding these relationships, not only can we gain insights into the factors

shaping the financial choices of this demographic but also anticipate potential implications for

both individuals and the broader economy. The intersection of trends and spending behavior

serves as a compelling lens through which to examine the intricate interplay of psychological,

social, and economic forces. Unraveling these connections holds the promise of providing

valuable insights for marketers, educators, policymakers, and individuals alike.

Through a comprehensive exploration of this relationship, this research aims to

contribute to a deeper understanding of the complex dynamics influencing the financial

decisions of college students in the contemporary era. You sent in our rapidly changing world;

college students' spending habits are closely tied to the latest trends. By unraveling this

connection, we aim to understand the factors influencing their spending behavior, offering

insights for marketers, educators, and policymakers. This study delves into the dynamic

relationship between trends and spending, shedding light on the complex interplay of

psychological, social, and economic influences in the lives of college students.

Theoretical and Conceptual Framework

These theories will serve as an anchor and guide to the study. These are Social Theory, Rational
Liceo de Cagayan University School of Business Management and Accountancy Page 4

Choice Theory, and Maslow’s Hierarchy of Needs.

According to Kelmen (1958), Social Influence Theory is a framework for

understanding how individuals are influenced by the people around them. The theory proposes

three main types of social influence: compliance, identification, and internalization. Kelman

(1958) posited that social influence brings about changes in attitude and actions, and that

changes may occur at different “levels.” This difference in the level of changes can be

attributed by the differences in the processes through which individuals accept influence.

According to Rational Choice Theory, people calculate the costs and benefits of choices

in making decisions. The perceived costs, risks, and benefits of certain actions can be

dependent on one’s own personal preferences. Rational choice theory uses axioms to

understand human behavior. The most important of these is that people make choices due to a

consideration of costs and rewards. People will only carry out an action when the benefit of an

action outweighs its cost and will stop doing an action when the cost outweighs the benefit and

individuals use the resources at their disposal to optimize rewards.

Maslow's theory suggests that human needs are organized in a hierarchical manner,

with lower-order needs requiring fulfillment before higher-order needs come into focus. At the

base of the hierarchy are physiological needs, such as food, shelter, and clothing. As college

students navigate the landscape of current trends, understanding how these trends align with

or fulfill their basic physiological needs is crucial. For instance, if certain trends influence the

cost or accessibility of essential items, it may impact spending priorities. Further up the

hierarchy, esteem needs involve self-esteem and the recognition of others. Current trends may

influence the perception of social status and self-worth among college students. Investigating
Liceo de Cagayan University School of Business Management and Accountancy Page 5

how spending aligns with trends that contribute to self-esteem or social recognition can provide

deeper insights.

As can be seen in Figure 1 on the next page, illustrates the variables of the study. The

diagram contains graphical symbols representing the components of the independent and

dependent variables. On the left portion of the figure, it contains the independent variables

which consist of a combination factor like the demographic profile of SBMA students such as

age, gender, course, and year levels, and Current Trend. On the right portion, it contains the

dependent variable of the study which is the students’ Spending Behavior.

Independent Variable Dependent Variable

Demographic Profile
• Age
• Gender
• Course and
Year Level

Spending Behavior

Awareness on
The Current Trends
• Food
• Fashion
• Beauty Product

Figure 1: Schematic presentation of all the variables of this cross-sectional study.

Liceo de Cagayan University School of Business Management and Accountancy Page 6

Statement of the Problem

This study will explore the relationship between current trend and spending behavior

of the SBMA Students in Liceo de Cagayan University.

Specifically, this will attempt to look into the answers to the following research questions:

1. What is the demographic profile of respondent in terms of:

1.1. Age;

1.2. Gender;

1.3. Course; and

1.4. Year Level?

2. What is the respondents’ level of awareness on current trend in terms of

2.1. Food;

2.2. Fashion; and

2.3. Beauty Products?

3. What is the respondents’ level of spending behavior?

4. Is there a significant relationship between the demographic profile, awareness on current

trends, and spending behavior?

Hypothesis

Below is the hypothesis that was formulated in conducting the study:

Ho: There is no significant relationship between the demographic profile, motivational factors,

and academic performance.

Liceo de Cagayan University School of Business Management and Accountancy Page 7

Significance of the Study

The findings of the study would benefit the following participants:

Students – This research will help students understand how current trends influence spending

behavior and will enable them to make better financial choices.

Teachers – Teachers can use the results of this study to teach students about financial literacy

and responsible spending.

Parents – This study will help parents in improved planning and budgeting for their children's

college expenses.

Future Researchers – Researchers can build on the findings, examine related questions, and

further improve our understanding of how trends influence spending behavior, not just among

college students.

Scope and Delimitation of the study

The study will focus on exploring the relationship between current trends and spending

behavior students’ of Liceo de Cagayan University – School of Business, Management and

Accountancy, the study aims to determine how the current trends affects the spending behavior

of college students, not only does this research aims in determining spending behaviors but it

also considers budgeting behaviors of the college students do in their allowances.

Researchers also take into account the following a description of the respondents, age,

gender, year of study, and course information. The study does not limit its case to SBMA

students only but for other Departments also. Any issues unrelated to students’ purchasing
Liceo de Cagayan University School of Business Management and Accountancy Page 8

habits will not be covered in this study. There are times and cost constraints on

this study’s execution.

Definition of Terms:

To understand the study well, these terms are operationally used.

Awareness - knowledge and understanding that something is happening or exists.

Beauty Products - means skincare, personal care, fragrance, hair care and color (cosmetics)

products, in each case including all components, ingredients, related tools and implements

thereof and tools and accessories for use in connection therewith.

Behavior - The variety of actions, reactions, or conduct that creatures, people, or systems

display in response to different stimuli, situations, or internal states is referred to as behavior.

It includes all of the audible behaviors, responses, and interactions that people or other things

exhibit.

Current - occurring, being utilized, or being carried out right now.

Fashion – any way of dressing, behaving, writing, or performing that is favored at any one

time or place.

Food - consisting essentially of protein, carbohydrate, and fat used in the body of an organism

to sustain growth, repair, and vital processes and to furnish energy.

Relationship - the way in which two or more concepts, objects.

Spending - refers to the act of using money or resources to purchase goods, services, or assets.

It involves the allocation of financial resources towards acquiring something of value.

Students - It indicates to a person who studies at school.

Liceo de Cagayan University School of Business Management and Accountancy Page 9

Trend - a general direction in which something is developing or changing.

Liceo de Cagayan University School of Business Management and Accountancy Page 10

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter examines and assesses the relationship between current trends and the

spending behavior of students at Liceo de Cagayan University's School of Business

Management and Accountancy, to provide sufficient depth, observations, and reviews. It does

this by illustrating a variety of related studies. Additionally, studies could benefit from the

literature's discussion of how Peer Influence of Social Media impact Current Trends,

Personality, and Saving Behavior, and how those factors connect to students' spending

behavior. The information provided in this chapter will enable a more comprehensive

examination of the data obtained, which will contribute to the success of the research.

Demographic Profile

Age

A significant number of today's college students do not meet the traditional description

of being between the ages of 18 and 22, financially reliant on their parents, and enrolled full-

time in school, according to the current trend in student demographics. Many students struggle

to balance their schoolwork and other obligations because they are older, have families, or all

three. Student spending habits may be impacted by this change in demographics. Students'

spending behaviors have been found to be influenced by variables like financial attitude,

financial knowledge, family background, and course of study. Age, however, does not appear
Liceo de Cagayan University School of Business Management and Accountancy Page 11

to have a statistically significant effect on college students' spending habits. It is important to

note that while millennial may have higher levels of student loans, education is still seen as an

investment that can improve future earnings and productivity. Therefore, concerns about

millennial' spending and saving habits may be alleviated by the potential for longer time in the

labor force to accumulate assets and pay off debts.

The demographic influence of age on consumer behavior is significant. People's needs

evolve as they mature. Their purchasing decisions appear to have undergone similar

adjustments. Our other demands and our health-related needs evolve as we become older.

People's lifestyles change as they become older, and this has an impact on their requirements

and personal values. Younger folks spend more on lifestyle necessities like entertainment and

clothes. As individuals become older, they spend less money on these things (Pratap, 2017).

Gender

Gender plays a significant role in the spending behavior of students. Research suggests

that males and females are socialized differently, which can affect their saving and spending

behaviors. Early family experiences also contribute to financial behavior, with paternal

influence being a significant predictor of impulsive spending, financial satisfaction, and credit

card debt for college students. Additionally, demography, specifically age and gender, shows

significantly different buying behavior in different countries, including online shopping

attitudes of male and female college students. However, a study found no statistically

significant difference in the spending habits of male and female university students.

Furthermore, gender moderates the effect of changes. childhood consumer experiences,

Liceo de Cagayan University School of Business Management and Accountancy Page 12

primary and secondary socialization agents' influence, financial knowledge, and financial skills

on savings behavior, with males exhibiting higher levels of financial knowledge, skills, and

better savings behavior than females.

Course and Year Level

Studies have shown that freshmen tend to spend more during their first year of college.

They often face a learning curve in managing finances, making them susceptible to

overspending. This phase is crucial for universities and colleges to offer financial education

and support. Student spending patterns change as they progress through different year levels.

While freshmen may spend more on textbooks and campus-related items, upperclassmen might

focus on housing, transportation, and technology investments. Understanding these year-level-

specific expenses is essential for creating targeted financial resources.

As students advance through their academic journey, many choose to work part-time to

support their education and lifestyle. Year levels can influence the availability of employment

opportunities, impacting students' income and, subsequently, their spending patterns.

Current Trends

Food, Fashion and Beauty Products

These foods are designed to be easy to eat, simple to prepare or reheat for consumption at

home. It is estimated that eight out of ten meals eaten at home were not necessarily homemade

Hernandez and Kamal-Eldin. (2013). Additionally, there is a growing demand for functional

foods that offer specific health benefits beyond basic nutrition. These foods are designed to
Liceo de Cagayan University School of Business Management and Accountancy Page 13
prevent nutrition-related diseases and improve overall well-being Sunil, Manohar et al., (2018).

University students' spending behavior in terms of current food trends is influenced by

various factors. Research shows that students pay high attention to the price and sales

promotions of food products, indicating a focus on affordability. Additionally, they are well-

informed about the ingredients, origin, and healthiness of the food they consume. Students also

consider convenience and the assortment and quality of food when selecting a store. Financial

and temporal constraints can impact students' food behaviors, with those living with their

families facing fewer barriers to accessing food. Prioritizing healthful food consumption is

associated with a higher likelihood of reporting a healthy diet. Understanding these factors can

help researchers and practitioners develop marketing programs that cater to the food demand

of this specific market segment.

Clothing, accessories and behavior are part of the fashion universe and are manifested as

a significant aspect of the language of personal communication, reflecting in the social-

historical path of each subject Laise et al., (2022). Fashion plays a significant role in the

formation of identity. It incorporates various aspects such as ethnicity, age, gender, and

country, allowing individuals to express and explore their sense of self. Fashion is not only a

means of self-expression but also a tool for individuals to aspire to an ideal image or other that

has been constructed by the fashion media over time Yurii et al., (2022).

Students tend to exhibit consumptive behavior by following current fashion trends rather

than buying based on necessity. This behavior is influenced by both internal and external

factors. The study found that female students tend to buy trendy items as a way to demonstrate

their ability to own fashionable goods. Social media plays a significant role in shaping students'
Liceo de Cagayan University School of Business Management and Accountancy Page 14

dress styles and influencing their consumptive behavior. Additionally, materialism and

depression have been found to have a significant impact on compulsive buying behavior among

university students, particularly in buying apparel.

In recent days many cosmeceutical products are introduced in market. Cosmeceuticals,

which combine cosmetics and pharmaceuticals, have become popular for their ability to affect

the skin's biological function Sanket et al., (2020). The current trends in beauty products

include the rise of nature-friendly cosmetics without chemical or synthetic ingredients, known

as clean beauty Célia et al., (2022).

There are two major implications of college students embracing social media. First is the

growing trend of associating with products or brands—either by liking their pages, or by

mentioning brands or products in posts, pictures, tweets, and more; second is the ability to

personalize social media advertisements based on internet searches. It is no secret that today’s

college students are very active on social media. Young people of all sorts have embraced the

age of the promotion of the self, and spend plenty of time, effort, and concern making sure

they create a perfect picture of their life on social media.

The impact of current developments on college students' spending habits is an intriguing

topic that is drawing interest from researchers. A recent study found that 88% of college

students' shopping habits are significantly influenced by social media sites like Facebook and

Instagram (Social media effects student buying habits, n.d.). One of the main factors

influencing how much money students spend on social media is the easy, in-platform buying

experience that these platforms provide (Social media effects student findings. For instance,

personality types and interests influence the profession decisions made by spending habits,
Liceo de Cagayan University School of Business Management and Accountancy Page 15

n.d.). 39% of college students cite peer pressure and fear of missing out (FOMO) as their main

motivators for using social media for purchases (Social media effects student purchasing

habits, n.d.). Interestingly, the report found a difference in spending behavior between male

and female students influenced by social media (Social media impacts student spending habits,

n.d.).

The study also revealed that 82% of university students use their own savings or debit cards

for making purchases (Social media impacts student spending habits, n.d.). There is a clear

consumer trend toward the use of "Buy now, pay later" (BNPL) methods for making purchases,

which is becoming increasingly popular among university students (Social media impacts

student spending habits, n.d.).

However, 32% of students found that their purchase was not what they wanted, indicating

that careful consideration should be given to purchases before committing to them (Social

media impacts student spending habits, n.d.). The report concludes by exploring current trends

in the spending behavior of university students and found that 65% of students regretted not

spending on something better or more important (Social media impacts student spending

habits, n.d.).

Peer influence on social media is a significant factor that can shape adolescents' behaviors

and attitudes. Social media platforms such as Instagram and Facebook have been found to

influence healthful eating behaviors, including fruit and vegetable intake, as well as

unhealthful eating behaviors related to fast food advertising. Additionally, social media

environments can transform various peer experiences, including peer status, peer influence,

victimization, and other interpersonal behaviors and skills.

Liceo de Cagayan University School of Business Management and Accountancy Page 16

The features of social media, including algorithms, play a crucial role in shaping continue

adolescents' peer experiences. Research on online peer influence is still in its early stages, but

it is important to understand the unique effects of social media use on peer influence processes

in adolescence. Future studies should focus on longitudinal and experimental designs,

integrating peer self-reports, controlling for offline peer influence, and exploring mechanisms

and moderators.

Spending Behavior

People who save more frequently, as compared to those who do not, have a positive attitude

in their saving behavior, according to Mahdzan and Tabiani (2013, as referenced in Hinga,

2012). Numerous factors, such as lifestyle, family influence, financial literacy, pocket money,

and current trends, affect students' purchasing habits. The connection between these elements

and students' spending patterns has been studied. For instance, a study discovered that trends,

pocket money, and lifestyle affect students' internet buying habits. According to a different

study, students' spending habits are significantly influenced by their families, their saving

attitudes, and their financial literacy.

The study looked at the connections between spending habits and race, gender, and course

of study. Fascinatingly, studies have also revealed that children's tight-wad and wasteful

tendencies emerge independently of their parents' actions. Furthermore, it has been

demonstrated that student spending behavior is influenced by credit card use, academic

achievement, socialization agents and social identities, debt and financial education familiarity,

and access to credit.

Liceo de Cagayan University School of Business Management and Accountancy Page 17

A further study that examined college students' spending and saving habits discovered a

link between those students' savings practices and financial problems. According to the life-

cycle model, college students' spending and saving habits were the subject of another study.

All things considered, these studies show that a variety of factors impact students' spending

behavior, and knowing these aspects can aid in the development of programs that effectively

encourage students to adopt sound financial practices.

Kotler (2017) defines personality as "the distinctive psychological traits that set an

individual or group apart." Generally speaking, personality is defined in terms of

characteristics like aggression, defensiveness, adaptability, friendliness, dominance, and self-

assurance. A consumer's personality is revealed when they choose to buy a certain branded

product over other branded products.

Brands have individual personalities as well. "Brand personality is the specific mix of

human traits that we can attribute to a particular brand," according to Kotler & Keller (2016).

Customers are the top priority for most marketers. They create strategies to persuade customers

to buy their products or services based on personality. Personal elements that affect customers'

purchasing decisions.

Numerous variables can have varying effects on the behavior of consumers. Hoyer et al.

(2012) classified these characteristics into four major categories: situational, individual, social,

and cultural influences. According to Hoyer et al. (2012), situational elements that influence

customer behavior can include location, timing, surroundings, and even the state of the

weather.

Create environments and scenarios in their stores that sway potential customers' decisions
Liceo de Cagayan University School of Business Management and Accountancy Page 18

to buy. You can use a range of strategies to assist you in reaching this objective, such placing

bread and milk items in supermarkets at the opposite end of the store to draw customers in and

playing calming music in businesses to create invigorating scents.

“Cashless” has become the most prominent disbursement genre among consumers in the

retail industry (Vojvodic and Matic, 2016), as it offers more efficient and secure payment

modes. Although riddled with challenges, the association between e-wallets and excessive

spending has sparked great study interest among scholars (Runnemark et al., 2015; Tee and

Ong, 2016; Vojvodic and Matic, 2016).

They will easily spend it like “monopoly money.” Despite e-wallets’ countless benefits,

previous studies reported several drawbacks such as impulsive buying behavior, especially in

e-retailing (Vojvodic and Matic, 2016). Such behavior is a ubiquitous component of consumer

studies and a focal point for significant marketing efforts (Tee and Ong, 2016).

The spending behavior of students in terms of current trends is a topic of concern in society.

Studies have shown that college students already have some financial awareness, but there are

limitations to their knowledge and behavior. Student loans, as a credit method, have been found

to impact spending behavior, with students who rely on loans exhibiting lower self-control and

a tendency towards impulsive purchases.

Factors such as poor knowledge in budgeting and financial management contribute to

students' spending habits, with non-academic items and food and beverage being the main

areas of expenditure. Additionally, there is a significant relationship between students'

spending behavior and their financial management skills, suggesting the need for improved

financial education and smarter spending habits. Overall, understanding and addressing the
Liceo de Cagayan University School of Business Management and Accountancy Page 19

The concept of career opportunities includes two important notions: spending behavior of students

is crucial for promoting healthy financial management and reducing post-graduation

indebtedness.

Existing literature supports the view that the payment instruments did affect spending

behavior (Soman, 2001; Raghubir and Srivastava, 2008; Runnemark et al., 2015), challenging

the standard economic theory assumption, which states that product valuation and payment

instruments are independent (Runnemark et al., 2015). However, prior research on mobile

payment has been strongly criticized, as it had only focused on a few topics, with a limited

accumulation of new knowledge and similar findings (Dahlberg et al., 2015).

Liceo de Cagayan University School of Business Management and Accountancy Page 20

Chapter 3

RESEARCH METHODOLOGY

This chapter presents the methods and procedures which will be used in this study to

identify whether the independent variable, current trend, can be a factor towards the dependent

variable which is the spending behavior, among the college students of Liceo de Cagayan

University- School of Business Management and Accountancy for the academic school year

2024-2025. This chapter is subsequently divided into different sections namely (a) research

setting, (b) research design, (c) respondents of the study and sampling procedure, (d) research

instruments, (e) scoring procedure, (f) research protocol, (g) data gathering procedure, and (h)

statistical treatment of data.

Research Setting

The study will be conducted at Liceo de Cagayan University. It is a private non-

sectarian university located at Rodolfo N. Pelaez Blvd, Cagayan de Oro, 9000 Misamis

Oriental. The Liceo de Cagayan University offers a wide array of academic course as well as

other opportunities that enable students to characterize total human formation that the

institution imbues to its student.

Liceo de Cagayan University has three campuses which are the Main Campus, Rodolfo

N Pelaez Campus located at Carmen Road, and Paseo del Rio Campus at Rodelsa Circle,

Macasandig. However, this study will be conducted during the first semester of school year

202400-2025 and it will only take place at Main Campus under the School of Business,
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Management and Accountancy (SBMA) Department of Liceo de Cagayan Particularly,

considering that people now a day live in a generation where the use of social media is timely

and rampant, the researchers want to find out the relationship between current trend and

spending behavior by all means among the students of School of Business Management and

Accountancy. Thereupon, the knowledge that can be garnered in this study can contribute in

the field of research in terms of the factors if that affects the students’ spending behavior.

Research Design

The study will utilize the descriptive - correlational research design. A design classified

as correlational is involved in forming relationships among two or more variables in a similar

population or among similar variables in two populations (Leedy & Ormrod, 2010). The intent

of correlational research is to: a) to identify variables that relate to one each other, b) to make

predictions of one variable from another variable, and c) to examine possible cause and effect

relationships between one variable and another.

The researcher’s goal is to identify the relationship between the independent variable and

dependent variable in a group which comprises students. This is to determine the relationship

between current trend and spending behavior.

Respondents and Sampling Procedure

The involvement of the participants in this study will be according to the specific

criterion that the researchers will set. The participants of the study which will be the

respondents is composed of all year level from the students of School of Business Management
Liceo de Cagayan University School of Business Management and Accountancy Page 22

and Accounting Department from the following courses: Bachelor of Science in Accountancy

(BSA), Bachelor of Science in Management Accounting (BSMA), Bachelor of Science in

Business Administration major in Financial Management (BSBA-FM), Bachelor of Science in

Business Administration major in Marketing Management (BSBA-MM), Bachelor of Science

in Real Estate Management (BSREM), Bachelor of Science in Business Administration major

in Human Resource Management (BSBA-HRM), Bachelor of Science in Business

Administration major in Operation Management (BSBA-OM), Bachelor of Science in

Tourism Management (BSTM), and Bachelor of Science in Hospitality Management.

The researchers will then use the simple random sampling strategy in which the

researchers will divide the finite populations into a subpopulation of the department to have an

equal chance to participate. The participating respondents must be able to meet the following

criterion including: a.) Must be 18 years old and above, b.) Must be enrolled in school year

2024-2025, and c.) Must be enrolled in the course offered from the SBMA Department.

Research Instruments

The researchers will employ a researcher, closed-ended survey questionnaire to collect

the necessary data. It is also referred to as a "static questionnaire" and includes rating scales,

multiple choice, and item response theory. There will be three parts to it. The respondents'

demographic profile will be covered in the first section. They will be questioned about their

name, age, gender, and course and year level in this section. The second section is all about

how they spend their money in current trends like food, fashion and beauty products. Questions

about the current trend influence their spending habits will make up the third section. In the
Liceo de Cagayan University School of Business Management and Accountancy Page 23

second and third section, the researchers will utilize the Likert type scale, which has the

following responses: 5-Strongly Agree, 4-Agree, 3-Neutral, 2-Disagree, and 1-Strongly

Disagree.

Validity and Reliability of the Instruments

A pilot test will be conducted to 30 respondents who will be selected randomly and

will be excluded as participants from the main study to review the clarity, applicability, and

reliability, as well as the estimation of the time required to complete the research tool. The

reliability of the research instruments will be tested at the Vice President of Research,

Publication, and Extension's office. After passing the said test, the researchers will start

collecting data from the actual respondents of the study.

Research Protocol

The researchers will ensure that the respondents are informed of the data collection

technique in accordance with the proper research protocols. This will give the respondents a

broad framework, overview, and idea of the study. The researcher will also inform and explain

how their personal data will be used to the participants. The researchers’ proposed scheme

after the Dean will give a positive feedback regarding the said matter is that these researchers

will then conduct a survey to the students of School of Business Management and

Accountancy. The information that will be gathered will be sub-joint as additional information

in the researcher’s study. The respondents of the research survey will be assured that their

personal information will be kept confidential.

Liceo de Cagayan University School of Business Management and Accountancy Page 24

Data Gathering Procedure

The researchers will ensure that the respondents are informed of the data collection

technique in accordance with the proper research protocols. This will give the respondents a

broad framework, overview, and idea of the study. The researcher will also inform and explain

how their personal data will be used to the participants. The researchers’ proposed scheme

after the Dean will give a positive feedback regarding the said matter is that these researchers

will then conduct a survey to the students of School of Business Management and

Accountancy. The information that will be gathered will be sub-joint as additional information

in the researcher’s study. The respondents of the research survey will be assured that their

personal information will be kept confidential.

Statistical Techniques

Appropriate statistical tools will be used according to the research problem of this

study. The following are the statistical techniques to be used in this study:

Frequency. The data of the respondents’ demographic profile including age, gender, course

and year level, will be analyzed, organized and interpreted through frequencies.

Percentage. The demographic profile of the respondents will be analyzed and interpreted

through the use of percentage.

Mean. The mean will be used to determine the relationship between current trend and spending

behavior of students.

Standard Deviation. The researchers will use standard deviation as statistical technique to
Liceo de Cagayan University School of Business Management and Accountancy Page 25

determine the relationship between current trend and spending behavior of students.

education to the youth of Northern Mindanao especially those who are deserving.

Pearson’s Product Correlation. The researchers will use Pearson’s Product Correlation to

correlate the relationship between the demographic profile, current trend and spending

behavior of the SBMA students.

Liceo de Cagayan University School of Business Management and Accountancy Page

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Liceo de Cagayan University School of Business Management and Accountancy Page

APPENDICES

APPENDIX A

LETTER OF CONSENT
Liceo de Cagayan University School of Business Management and Accountancy Page

APPENDIX B

LETTER OF APPROVAL
Liceo de Cagayan University School of Business Management and Accountancy Page

APPENDIX C

SURVEY QUESTIONNAIRES

Dear respondent;

Thank you for taking the time to complete these questionnaires. This study looked at the

relationship between current trends and spending behavior. Kindly complete this questionnaire

by providing your honest response.

Please take time to fill out this study. Rest assured that all information provided will be treated

with utmost confidentiality. Thank you!

Sincerely,

The Researcher

Part 1: Demographic Profile

Name (Optional):__________________

Year: Age:

o 1st Year o 18 years old & below

o 2nd Year o 19 - 21 years old

o 3rd Year o 22 years old & above

o 4th Year

Gender;

o Male o Female
Liceo de Cagayan University School of Business Management and Accountancy Page

Course:

o BS in Accountancy o BS in Hospitality Management

o BS in Management Accounting o BS in Tourism Management

o BS in Business Administration o BS in Real Estate Management

Part II: Current Trends

• Food

Strongly Strongly
Agree Neutral Disagree
Agree Disagree

1. I spend most of my
money on food.
2. I visit a trendy place
because of endorsements
or recommendations
from social media
influencer or celebrities.
3. My friends influence me
to eat out.
4. I wants to visit a new
open café I saw online
5. I visit restaurants
because they’re popular
online.
6. I check the ingredients
before purchasing.
7. I check the price of the
before buying.
8. I create a list when
purchasing foods.
9. I feel fast-food is
cheaper than regular
food items.
10. My spending habits have
been influenced by the
promotion of fast-food
chains on social media.
Liceo de Cagayan University School of Business, Management, and Accountancy Page

• Fashion

Strongly Strongly
Agree Neutral Disagree
Agree Disagree

1. I do spend much of my
money on new trendy
clothes
2. I purchased clothes
because of endorsements
or recommendations
from social media
influencers or celebrities.
3. I was influence to buy
new things through
social media platform.
4. I was influenced by my
friends to buy new
trendy clothes.
5. I save money to buys
new clothes.
6. I buy clothes l like
regardless of the current
fashion trend.
7. I am not as concern
about fashion as I am
about modest prices and
wearability.
8. I am confident of my
taste in fashion.
9. My friends regard me as
a good source of advice
on fashion selection.
10. What you think of
yourself is reflected by
what you wear.
Liceo de Cagayan University School of Business, Management, and Accountancy Page

• Beauty Products

Strongly Strongly
Agree Neutral Disagree
Agree Disagree

1. I sometimes spend my
money on beauty
products.
2. I am influence to buy
cosmetic products
because of endorsements
or recommendations
from social media
influencers or celebrities.
3. I was influence to buy
newly launch beauty
products through social
media platform.
4. I was influenced by my
friends to try beauty
products.
5. I want to try new beauty
products I see online.
6. I prefer known products
over less known
products.
7. I always check the
chemical contents of the
products.
8. I use a product that is
animal cruelty-free.
9. I am aware I overspend
my allowance when it
comes to beauty
products.
10. Price matters when I buy
beauty products.
Liceo de Cagayan University School of Business, Management, and Accountancy Page

Part III: Spending Behavior

Strongly Strongly
Agree Neutral Disagree
Agree Disagree

1. Fashion trends impact

clothing and apparel
spending of college
students
2. Peer influence plays a role
in the spending choices
3. I prioritize spending on
education- related expenses
(e.g., textbooks, tuition)
over spending on current
trends and non-essential
items?
4. I made impulsive
purchases because of the
influence of current trends.
5. I do experience financial
stress during your college
years.
6. Current trends affect my
spending behaviour.
7. Current trends influence
my decision to spend
money on fashion and
clothing
8. Economic factors like
inflation and the cost of
living impact your
spending choices related to
current trends.
9. I balance my desire to
follow current trends with
my budget and financial
responsibilities.
Liceo de Cagayan University School of Business, Management, and Accountancy Page

10. I do think the factor of

making spending behavior
is important (e.g. brand
reputation, price,
sustainability and ethical
sourcing, convenience).
11. I feel good when I buy
something new.
12. I am considered a
trendsetter in my social
group
13. I am aware that I spend
most of my money food,
clothes, and beauty
products.
14. I overspend my allowance
when it comes to food.
15. I budget my allowance
Liceo de Cagayan University School of Business, Management, and Accountancy Page