REPORT ON RESEARCH JOURNAL
Yao Rui, Wang Feifei, Weagley O. Robert, & Liao Li. (2011). Household Saving Motives: Comparing American and Chinese Consumers. New Jersey: John and Wiley publishers. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1552-3934.2011.02086.x/full#f1
The research topic in this research journal is the saving motives in households. The authors have done this by comparing the consumers from America and China. The journal looks at American households as well as American households, grouping them according to their income, and determining whether they would save, how they would save, and their reasons for saving.
When conducting the research, the reasoning approach used by the authors was an inductive one (Bui, 2009, p. 213). In this type of reasoning approach, the problem or issue under study usually is something that the researcher may have experienced firsthand. Studying such issues may lead to reasons why things are as they are, or why the phenomenon is in existance. The reasons may then be used as a hypothesis for the study, making it necessary to carry out further research on the phenomenon. Whatever reasons or explanations one may come up with for the phenomenon under study should not be treated as conclusions until they have been tested and proven right.
This being a social scientific research, the method used is that of positivist social science. This method focuses on natural sciences. It has a number of varieties, ranging from logical empiricism to behaviorism. The information in this journal is meant to be used by financial institutions and planners, explaining why the method used was positivist. The method calls for objective research. Hence, surveys, and statistics are used to help come up with reliable conclusions (Bui, 2009, p. 215).
The type of research used in this journal is quantitative (Bui, 2009, p. 216). This is because there already was a hypothesis that the researchers used to work with, which was an issue in relation to families. To have a much comprehensive and thorough study, the hypothesis was further downed to saving habits in different households, with the focus being on families in America being compared against families in China. For this study, figures were needed to give the needed information and make viable conclusions. In quantitative research, the methods used include secondary analysis, content analysis, survey, and experiments. For this particular research, the most probable methods used are survey, and content analysis.
Besides the above, other elements that qualify this study as being a quantitative study are that the concepts in the research form distinct variables. The variables are grouped into two: dependent variables and independent variables. The dependent variables used were precautionary, educational, and retirement saving motives. The independent variables used include financial resources, and demographic factors. Main data is mainly in figures form and when analyzing it, charts, statistics and tables are deemed best. When conducting this research, measures and procedures to be used were first created and standardized to ensure that collection was sequential.
The conceptual framework of this research is based on the five-level hierarchy of needs. According to the Maslow’s hierarchy, the needs of a human being are physiological, safety, need to belong and be loved, self esteem, and the need of self actualization. Of these needs, there is a facet of finances (Yao, Wang, Weagley, & Liao, 2011). Finances determine the saving habits and ability of a person. A deep look at the reasons for saving form a hierarchal structure that is similar to that of human needs. This means that the ability of a household to save can be classified based on the resources or income of the household, as well as the financial needs or expenditure of the family. Again, reasons as to why a household will save differ from one country to another.
The main hypothesis in this research were clearly stated: the chances that Chinese will have a higher precautionary saving motive as compared to that of Americans is higher, Americans are less likely than the Chinese to report an educational saving motive, and that both the Chinese and Americans are not likely to report a retirement saving motive (Yao, Wang, Weagley, & Liao, 2011). The major variables studies in the research are precautionary, educational, and retirement saving motives (Yao, Wang, Weagley, & Liao, 2011). These dependent variables re related to the independent variables that include financial resources and demographic factors. The relationship between the variables and the stated hypothesis is that the demographic characteristics greatly affect the finances of a household. For instance, the research reveals that families in China are more reserved when it comes to spending as compared to families in America. A household that spends a lot will have low saving rates. Another relationship is that a family that has many and stable financial resources has the ability to save more. On the other hand, as per the variables, households will prioritize some motives depending on their income.
The survey method was used to collect data for the research. For the American sample, the data was drawn from the Survey of Consumer Finances carried out in 2007. For the Chinese sample, the data was drawn from the Survey of Chinese Consumer Finance and Investor Education carried out in 2008 (Yao, Wang, Weagley, & Liao, 2011). The families used as samples were those in urban areas and a number of families that had members from certain departments had to be omitted so as have an equal platform of comparison between households in China and America. The SCF provided information on household balance sheets, demographic factors, and attitudes towards investments as well as information on the economic environment. The SCCFIE provided information on demographic factors, balance sheets, financial planning activities and attitudes, saving practices and attitudes as well, and other financial information such as insurance and debts (Yao, Wang, Weagley, & Liao, 2011).
Quantitative analytical approach was used to conduct the research (Bui, 2009, p. 220). This is evidenced by the use of tables when analyzing the collected data. The tables used show tabulations of the saving motives of the two countries. Each hypothesis was studied for every motive. The relationships between the variables and motives were tested. These tests were done using the t- test, the chi-square test, and logistic regressions. These were the measurements that were used for the variables. Figures have also been used throughout the journal. In addition to that, the method of data collection used is surveys, which are examples of methods of data collection for quantitative research.
In conclusion, distinctive differences were put out in saving behaviors between households in China and America for two variables: precaution and educational saving motives. However, not much difference could be pointed out when it came to the third retirement saving motive. It is also clear that the Chinese had saved more that the Americans. The implications are that the households need to save more due to uncertainties of the future. For the financial professionals, more needs to be done to provide financial products that will motivate households to save more (Yao, Wang, Weagley, & Liao, 2011). For further research, differences between the two countries should be clearly defined. This will help reduced biasness in other researches that will be carried out in the future.
Bui N. Yvonne. (2009). How to Write a Master's Thesis. California: Sage Publications.
Yao Rui, Wang Feifei, Weagley O. Robert, & Liao Li. (2011). Household Saving Motives:
Comparing American and Chinese Consumers. New Jersey: John and Wiley publishers.
Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1552-