To Save or Not to Save Dilemma: Insights from a Behavioural Perspective
Abstract
This qualitative study explored the role of psychographics on the saving behaviour of individuals. Forty-three (43) semi-structured interviews were conducted with informants at their places of work. The results showed that most informants did not immediately recognize saving money as an important personal value. Instead, various dimensions of the safety and security value emerged as most important in the informants’ life. Surprisingly, a majority of the informants expressed positive attitudes toward savings and claimed that they save money in different formal and informal savings instruments. Informants also revealed that they save in order to achieve safety and social needs. The decision to save or not was perceived as a choice dilemma that is predominantly influenced by psychographics and marketing efforts. The study calls for policy makers and financial institutions to work closely to facilitate education on savings, which will improve the level of financial literacy among adults or inculcate the culture of saving at an early age.Downloads
References
Anderson Jr, W. T., & Golden, L. L. (1984). Lifestyle and Psychographics: A Critical Review and Recommendation. Advances in Consumer Research, 405-11.
Ando, A., & Modigliani, F. (1963). The ‘Life-Cycle’ Hypothesis of Saving: Aggregate Implications and Tests. American Economic Review, 53(1), 55-84.
Assael, H. (1995). Consumer Behaviour and Marketing Action. New York: South Western Publishing.
Attanasio, O., Picci, L., & Scorcu, A. (2000). Saving, Growth, and Investment. Review of Economics and Statistics, 182-211.
Bank of Botswana. (2012). Bank of Botswana Annual Report. Gaborone: Bank of Botswana.
Bank of Botswana. (2013). Bank of Botswana Annual Report. Gaborone: Bank of Botswana.
Bank of Botswana. (2014, May 26). Foreign Reserves. Retrieved May 26, 2014, from Bank of Botswana Website: http://www.bankofbotswana.bw/index.php/content/2009103012050-foreign-reserves
Burton, D. (2001). Savings and Investment Behaviour in Britain: More Questions than Answers. The Service Industry Journal, 130-46.
Central Statistics Office. (2003). Household Income and Expenditure Survey. Gaborone: Government Printer.
Central Statistics Office. (2008). 2005-6 Labour Force Report. Gaborone: Government Printer.
Central Statistics Office. (2010). 2006-7 Census of Enterprises and Establishments Report. Gaborone: Government Printer.
Cosmas, S. C. (1982). Life Styles and Consumption Patterns. Journal of Consumer Research, 453-55.
Devaney, S. A., Anong, S. T., & Whirl, S. E. (2007). Household Saving Motives. The Journal of onsumer Affairs, 174-186.
Elbadawi, I. A., & Mwega, F. M. (2000). Can Africa's Saving Collapse Be Reversed? The World Bank Economic Review, 415-43.
Friedman, M. (1957). The Theory of the Consumption Function. In M. Friedman, National Bureau of Economic Research (pp. 1-6). Princeton: Princeton University Presss.
Glaser, B., & Strauss, A. (1967). The Discovery of Grounded Theory. London: Weidenfeld and Nicholson.
Haruna, I. (2011). Determinants of Saving and Investments in Deprived District Capitals in Ghana: A Case Study of Nadowli in the Upper West Region of Ghana. Continental Journal of Social Sciences, 1-12.
Hausman, A. (2000). A Multi-method Investigation of Consumer Motivations in Impulse Buying Behavior. Journal of Consumer Marketing, 403-26.
Hong, G., Sung, J., & Kim, S. (2002). Saving Behaviour among Korean Households. Family and Consumer Sciences Research Journal, 437-62.
Hope, K. R. (1997). Growth, Savings and Investment in Botswana. Savings and Development, 195-210.
Kahle, L. R. (1983). Social Values and Social Change: Adaptation to Life in America. New York: Praeger.
Katona, C. (1951). Psychological Analysis of Economic Behaviour. New York: McGraw-Hill.
Kaynak, E., & Kara, A. (2001). An Examination of the Relationship among Customer Lifestyles, Ethnocentrism, Knowledge Structures, Attitudes and Behavioral Tendencies. International Journal of Advertising, 457-82.
Keynes, J. M. (1936). The General Theory of Interest, Employment and Money. London: Macmillan.
Lawson, R., & Todd, S. (2002). Consumer Lifestyles: A Social Stratification Perspective. Marketing Theory, 295-307.
Lea, S. G., Webley, P., & Levine, R. M. (1993). The Economic Psychology of Consumer Debt. Journal of Economic Psychology, 85-119.
Loayza, N., Schmidt-Hebbel, K., & Serven, L. (2000). What Drives Private Saving Across the World? Review of Economics and Statistics, 165-81.
Loibl, C., & Scharff, R. L. (2010). Examining the Effect of Expressing a Quantitative Goal on Consumer Savings. The Journal of Consumer Affairs, 127-54.
Lunt, P. K., & Livingstone, S. M. (1991). Psychological, Social and Economic Determinants of Saving: Comparing Recurrent and Total Savings. Journal of Economic Psychology, 621-62.
Lusardi, A. (2007). Household Savings Behavior in the U.S: The Role of Literacy, Information and Financial Educational Programs. Implications of Behavioral Economics for Economic Policy (pp. 27-70). Boston: Federal Reserve Bank of Boston.
Meier, K., Kirchler, E., & Hubert, A. (1999). Savings and Investment Decisions Within Private Households: Spouses Dominance in Decisions on Various Forms of Investment. Journal of Economic Psychology, 499-519.
Metin-Ozcan, K., Gunay, A., & Ertac, S. (2003). Determinants of Private Savings Behaviour in Turkey. Applied Economics, 1405-16.
Mitchell, A. (1983). The Nine American Life Styles. New York: Warner.
Modisaatsone, N. C. (2013). What Drives Private Saving in Botswana? Journal of Economics and Behavioral Studies, 603-11.
Muradoglu, G., & Taskin, F. (1996). Differences in Household Savings Behaviour: Evidence from Industrial and Developing Countries. The Developing Economies, XXXIV-2, 138-153.
Nyphus, E. K., & Webley, P. (2001). The Role of Personality in Household Saving and Borrowing Behaviour. European Journal of Personality, 85-103.
Prinsloo, J. W. (2000, November). News and Publications. Retrieved May 28, 2014, from South African Reserve Bank: https://www.resbank.co.za/Lists/News%20and%20Publications/Attachments/2513/occ14fin.pdf
Radipotsane, M. O. (2006). Determinants of Household Saving and Borrowing in Botswana. IFC Bulletin, 25, pp. 284-96.
Rokeach, M. (1973). The Nature of Human Values. New York: Free Press.
Schiffman, L. G., & Kanuk, L. L. (2010). Consumer Behaviour. New Jersey: Printice Hall.
Schmidt-Hebbel, K., Webb, S. B., & Corsetti, G. (1992). Household Savings in Developing Countries: First Cross Country Evidence. The World Bank Economic Review, pp. 529-47.
Shoham, A., Davidow, M., & Brencic, M. M. (2003). Measuring Values’ Importance: the Use of Different Scales to Measure the LOV. European Advances in Consumer Research, 154-61.
Stanford Research Institute International. (1956). VALS2+: Psychographic Segmentation System . Califonia: SRI International .
Swinyard, W. R. (1998). Shopping Mall Customer Values: The National Mall Shopper and the List of Values. Journal of Retailing and Consumer Services, 167-72.
Thaler, R. H. (1994). Psychology and Savings Policies. American Economic Review, 186-92.
The Economist. (2013, April 2). Saving: Too Thin a Cushion. Free Exchange Economics.
Ülkümen, G., & Cheema, A. (2011). Framing Goals to Influence Personal Savings: The Role of Specificity and Construal Level. Journal of Marketing Research, 958-69.
Vyncke, P. (2002). Lifestyle Segmentation: From Attitudes, Interests and Opinions, to Values, Aesthetic Styles, Life Visions and Media Preferences . European Journal of Communication, 445-63.
Wells, W. D., & Tigert, D. J. (1971). Activities, Interests, and Opinions. Journal of Advertising Research, 27-35.
Yuh, Y., & Hanna, S. D. (2010). Which Households Think They Save? The Journal of Consumer Affairs, 70-97.
Zamir, S. (2012, June 11). Low National Savings Lead to Poor Economy. The Nation.
TRANSFER OF COPYRIGHT
JRBEM is pleased to undertake the publication of your contribution to Journal of Research in Business Economics and Management.
The copyright to this article is transferred to JRBEM(including without limitation, the right to publish the work in whole or in part in any and all forms of media, now or hereafter known) effective if and when the article is accepted for publication thus granting JRBEM all rights for the work so that both parties may be protected from the consequences of unauthorized use.
