Model Development Potential Capacity Management Through PNPM and
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communication skills and knowledge technical, ability to establish relationships, in order to meet the needs of achievement, independence, influence the response to someone
entrepreneurial risk in decision-making.
Aspects of business strategy will affect a persons decision making process. In running a business, think the changes to products or services, marketing strategies,
customer oriented buyersconsumers, the quality, focus on innovation, and accelerate the time in dealing with the buyercustomers. Adaptation its strategic influence behavior
change and improve compensation.
Aspects of decision making in the business of SME farmers fishermen will affect business performance both in technical efficiency and economic efficiency.
Business carried on having a clear vision and goals, have the will and courage in the face of risk, have a plan that is organized, and responsible for the success or failure of the
business run. VI. CONCLUSIONS AND RECOMMENDATIONS
6.1. Conclusion Based on the analysis conducted it can be concluded that:
1. Characteristics of individuals and organizationsinstitutions either partially or jointly affects entrepreneurship through PNPM Urban P2KP
2. Mental and entrepreneurial behavior of a person will affect a persons capacity in this management decision-making process through PNPM Urban P2KP.
3. Strategies will affect ones efforts in capacity management in the decision making process through PNPM Urban P2KP.
4. Capacity management in this decision-making process in the SME business of farmers fishermen will affect business performance both in technical efficiency
and economic efficiency through PNPM Urban P2KP. 5. Establishment of model of development potential entrepreneurial management
capacity through PNPM Urban P2KP in the city of Bengkulu, namely institutional and individual characteristics affect entrepreneurial spirit and behavior of
farmersfishermen in implementing the business strategy with the application of appropriate technology for the decision making process of the business
performance of SMEs either in terms of technical efficiency and economic efficiency.
6.2. Suggestion This study has several limitations that need improvement and development in future
studies, including:
1. Entrepreneurial soul will affect farmersfishermen in looking at opportunities, determine business objectives, budgeting, organizing resources and conduct an
evaluation of their business activities in determining the manner and style of decision making is done by the receiving facility MFI PNPM Urban P2KP in the
city of Bengkulu .
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2. Success of farmersfishermen are not only determined by an entrepreneurial spirit, but also that the management capacity related to personal characteristics and skills
to achieve that goal.
VII. REFERENCES BPS City of Bengkulu. 2011. Bengkulu City in the 2011 Figure. Bengkulu: Central Bureau of
Statistics BPS. Halima, W., Kadarsan. , 1992. Financial Agriculture and Agribusiness Financing Agriculture
Company . Jakarta: PT. Gramedia Pustaka Utama.
Priyanto, Sony Heru, Suprihati, Endang Pudjihartati, Danar Pramonosidhi. , 2001. Agricultural Development Master Plan in the District Flower People, Bangsri, and Mlonggo Keling
Jepara . Not Published.
Rougoor, Carin W., Ger Trip, Ruud BM Huirne and JA Renhema. How to Define and Study Farmers Management Capacity: Theory and Use in Agriculture Economic
. Agriculture Economist 18 1998 161-272.I.
Saragih, Bungaran. 2001. Thought set Agribusiness: New Paradigm of Agriculture-Based Economic Development.
IPB Development Studies Center. Bogor. SIM PNPM. 2011. National Program for Community Empowerment. Jakarta: PNPM.
Wilson, Paul, David Hadley, and Carol asby. 2001. Characteritics The Influence of Management on the Technical Efficiency of Wheat Farmers in Eastern England
. Agriculture Economic 24, 329-338 2002.
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The Effects of Attitude toward Money and Credit Card Usage Behaviour on Compulsive Buying Behaviour
CHE ANIZA CHE WEL AMIN ANSARY
NOR ASIAH OMAR HAWATI JANOR
Universiti Kebangsaan Malaysia anizaukm.edu.my
Abstract This paper examines the effects of attitudes towards money and credit card usage behaviour on
consumer compulsive buying behaviour. Compulsive buying is a study of inefficient consumer behaviour which yields adverse psychological and financial consequences. The present research
attempts to better understand compulsive buying by examining attitude toward money dimensions and credit card usage as the predictors of consumer compulsive buying. Among four dimensions
of attitude toward money, only power-prestige and retention-time are significant predictors of consumer compulsive buying. Credit card usage however fails to show significant effect on
compulsive buying among Malaysian consumers. Key Words:
Money Attitudes Scales MAS, Compulsive Buying, Credit Card Usage Behavior, Malaysia
INTRODUCTION
For many people, buying is a routine and daily activity. A number of people, however, engage in an uncontrolled and excessive buying of goods which results in distress and adverse
consequences on individuals’ lives Dittmar, 2005. Such a behavior is called compulsive buying which is increasing around the world Neuner et al., 2005. Accordingly, researchers have
recently turned their attention into this topic more and more. Indeed, they are digging to understand which factors affect compulsive buying behavior. For example Dittmar, 2005; Li et
al., 2009 examined the effect of specific factors e.g., money attitudes, age, gender on compulsive buying behavior.
One critical factor affects compulsive buying is money attitudes. Phau and Woo 2008 stated that money is
an instrument for exchange to facilitate trade. In addition, once an individual’s need for safety is not met, they attempt to replace their desires and materialistic values which in turn, lead
to excessive buying Mueller, et al., 2007. Moreover, people who are obsessive in terms of power and presitige which are resluted from having money tend to undue consumption of
consumer goods that may result in adverse consequences such as compulsive buying Roberts Jones, 2001. Accordingly, a number of researchers e.g., Roberts Jones, 2001; Phau and Woo,
2008 examined the effect of money attitudes on compulsive buying. For decades, the debts incurred by credit cards are much greater than those of other debts
Roberts Jones, 2001. Therefore, credit cards business are very profitable business that leads
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cards issuers to give more credits to people who have less abilty to pay. Indeed, Mitchell and Mickel 1999 defined credit card as an expansion of money in which payment could be
postponed. This, in turn, leads individuals to purchase extreme products which results in compulsive buying. Some reseachers e.g., Roberts Jones, 2001 have examined the
moderating role of credit card usage on the relationship between money attitude dimension and compulsive buying. In spite of the importance significance of credit card usage, the direct effect
of this factor on complusive buying has neglected. On the other hand, it is valuable for marketers to identify which factor has more effect on
compulsive buying behavior. To the best knowledge of the researchers, however, there is limited study that investigates the difference impacts of money attitude and credit card usage on
compulsive buying bheavior. This study therefore intended to fill these gaps. Indeed, the study has two main purposes. First, it aims to examine the effect of money attitude dimensions and
credit card usage on compulsive buying. Second, this study examines which factors i.e., money attitude dimensions and credit card usage has the greatest effect on compulsive buying. The
hypotheses of this study, are explained using theory of planned behavior.
LITERATURE REVIEW
Compulsive Buying - Compulsive buying is viewed as “frequent preoccupation with buying or
impulses to buy that are experienced as irresist ible, intrusive, andor senseless” Muller et al.,
2005. Koran et al., 2006 claimed that compulsive buyers attempt to purchase unnecessary items which are more than one could afford to buy. This, in turn, leads compulsive buyers to face
adverse consequences such as noticeable anxiety and financial problem. By contrast, Phau Woo 2008 suggested that compulsive buying is the consumer’s main response to reduce stress,
disappoinment, lack of self-esteem, and distortion of autonomy in their lives via buying action. According to Dittmar et al., 2007, compulsive buying includes three characteristics 1
consumers have an irrestible urge to purchase; 2 consumers lose their control over buying behavior; and 3 consumers keep on buying in spite of adverse consequences in their personal,
social, or occupational lives, and financial debts. Consistent with Dittmar et al. 2007, Kearney and Stevens 2012 suggest that compulsive buyers attempt to buy due to escape from problems
and conditions in their lives. The authors also mention that compulsive buyers may not stope to buy in spite of adverse consequences of the behavior such as financial issues and mental health.
Therefore, addressing this behavior is important from researchers’ point of view. In fact, res
earchers are interested to know what factors influence consumers’ compulsive buying behavior. In this sense, a number of researchers e.g., Roberts Jones, 2001; Phau Woo ,2008;
Li et al., 2009 have conducted studies on the factors influence that this behavior. However, none of these studies have been conducted in Malaysia a developing country with uniques
cultural composition. Money Attitudes -
Most probably, individuals’ perceptions of money start from childhood Wong, 2010. Indeed, money attitud
es are, at the outset, developed by an individual’s experience with parental teaching, surveillance of family money practices, and interaction with others Wong,
2010. Wong 2010 claimed that even though, talking about sex and drug is very common, debate on the function and importance of money has largely been neglected. Surprisingly, quite a
number of young people are not exposed to personal financial management until they entered a university life. Accordingly a number of researchers attempt to measure money attitude e.g.,
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Yamauchi and Templer, 1982; Forman, 1987; Tang, 1992. Among those, Yamauchi and Templer’s 1982 Money Attitude Scale MAS is the most common used scale to measure
money attitude Roberts Jones, 2001. Therefore, the present research adopts Yamauci and Templer’s 1982 money attitude scale MAS. Based on Yamauci and Templer’s 1982 MAS
instrument, money attitude has four dimensions, namely power-prestige, retention-time, distrust, and anxiety.
Power-prestige Power-prestige is
the first factor presented in the Yamauchi and Templer’s 1982 MAS instrument. All items of the factor point out that people use money to make an impact on others
and as a symbol of success Yamauchi and Templer, 1982. In other words, money plays the role of power for many people. That is, they do not use money so much to purchase some products
such as cars, cloths, and house; instead, they use money to buy status, supremacy, and control Roberts Jones, 2001. Therefore, money can be viewed as a means to remove impediments
that exist in the way of people seeking power. According to Yamauchi and Templer 1982, people who achieve high score on power-prestige
have positive attitudes towards the significance of money to reach power and status. By contrast, people with low score in power-prestige show less concern on money as a symbol of success and
status and as a means to impress others. Phau and Woo 2008 stated that nowadays, status is achieved by possession of status goods and services rather than by personal and occupational
reputation. Therefore, since individuals could gain the best in the social competition, they must reveal their social power by exhibiting their riches through the ability to buy goods and services
material objects. The reason i
s that riches is the best pointer of an individual’s power and status in today’s modern society Roberts and Jones, 2001.
Moreover, Tang and Arocas 1997 stated that competition results in creating pressure on people in an organization as well as in social living to achieve more material objects to demonstrate their
social status. Indeed, the competition in acquiring prestigious goods and services which may result in compulsive buying behavior Phau Woo, 2008. On the other hand, some other
researchers e.g., Hoon Lim, 2001 suggest that people are willing to buy material belongings that grant status and symbolic respect sharply which in turn could result in compulsive buying
behavior. Accordingly, we propse that: H
1
: Power-prestige dimension of money attitudes has a significant positive effect on compulsive buying.
Retention-time The second factor of Yamauchi and Templer’s 1982 MAS instrument is retention-time. This
factor explains the behaviours concentrated on the future which needs a plan of preparation Yamauchi and Templer, 1982. According to Yamauchi and Templer 1982, people who
achieve a high score on this factor care significantly about the process of preparation as well as the objective of security in the future. In contrast, individuals with low score on time retention
dimension reveal a present rather that future orientation and show less anxiety on careful accounting of funds. In other words, individuals holding high score on this dimension worry a lot
about the future of their funds so that they strive to make a careful plan on and monitor their financial future. Low score holders, however, have less self-esteem and reflect present rather than
future orientation. As a result, they have little concern on careful management of their funds.
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Accordingly, people who hold low score on this factor may tend to use compulsive buying. For example, Hanley and Wilhelm 1992 indicated that compulsive buyers hold lower score on
retention-time dimension than do non-compulsive buyers. In addition, some other researchers e.g., Li et al., 2009 showed that there is an inverse relationship between retention-time
dimension and compulsive buying. Thus, we hypothesize that: H
2
: Retention-time dimention of money attitude has a significant negative effect on compulsive buying.
Distrust The third factor included in Yamauchi and Templer’s 1982 MAS instrument is labelled as
distrust. According to Yamauchi and Templer 1982, individuals who gain high score on this factor can be described as hesitate, suspicious, and doubtful concerning the circumstances
involving money. In fact, such people feel insecure and are unsure about their ability to maximize the value of their money via effective purchases Phau Woo, 2008. In addition, Roberts and
Jones 2001 stated that individuals with high score on this dimension tend to lose their belief towards their ability to make efficient purchase decision. The authors claim that another label for
this dimension could be price sensetivity because the items of this dimension concentrate on the
individuals’ sensetivity to the price paid for products. After all, consumers who are sensetive to the price are less likely to demonstrate compulsive buying behavior. As a result, we predict that:
H
3
: Distrust dimension of money attitudes has a significant negative effect on compulsive buying. Anxiety
The last factor of Yamauchi and Templer’s 1982 MAS is labelled as anxiety. People with high score on this factor view money as a source of anxiety and protection from anxiety Yamauchi
Templer, 1982, Roberts Jones, 2001. Roberts and Jones 2001 suggested that compulsive buying is veiwed as solution for anxiety and that compulsive buyers respond to pressure and
stress with higher level of anxiety compared with non-compulsive buyers. In addition, Valence et al. 1988 proposed a model in which anxiety is a central factor for compulsive buying behavior.
As predicted, they found that anxiety is a significant predictor of compulsive buying. Moreover, Desarbo and Edwards 1996 clarified that escape from anxiety is the main motivation of people
who are addicted to purchase or show compulsive buying behavior. In other words, compulsive buyers attempt to shop and do spending activity to reduce the stress and its related anxiety. In
short, compulsive buyers could lower their anxiety through shopping and spending, and they frequently utilize compulsive buying during periods of stress as a way to release. Thus, based on
above, we offer the following hypothesis: H
4
: Anxiety dimension of money attitudes has a significant positive effect on complusive buying. Credit Card Usage -
Nowadays, usage of credit cards is on the increase in all over the world Abdul-Muhmin Umar, 2007. In fact, credit cards, is a significant and integral part of financial
systems in modern countries Abdul-Muhmin Umar, 2007. Abdul-Muhmin and Umar 2007 claimed that the penetration rate of credit cards especially in developed contries is reaching 100
percent. Nevertheless, there is still a significant variation of credit cards penetration among societies. Penetration rate of credit cards is higher in developed countries with high income
Kaynak Harcar, 2001 because per capita income and purchase power are high and the basis of paymant via credit cards is available entire the country. Accordingly, Some researchers e.g.,
Kaynak Harcar, 2001; Norvilitis Mendes-Da-Silva, 2013 have conducted studies on
concumers’ attitudes towards credit cards because understanding individuals’ attitudes towards credit cards may influence development of marketing strategies of credit card companies.
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However, scholars have identified some advantages and disadvantages for using credit cards. In general, choosing credit card as a payment method is usually incidentally and driven by simple
considerations such as “convenience” e.g., credit cards are often in individuals’ wallet, “acceptability” e.g., some stores may not accept check, “accessibility” e.g., in some places
automated teller machines may not be available to withdraw cash, and “habit” e.g., rental is
usually paid via checks Soman, 2001. Yet, customers are more willing to pay when they use credit cards rather than cash Prelec Simester, 2001. In fact, according to Prelec and Simester
2001, credit cards encourage customers to spend. For instance, Hirschman 1979 showed that customers who possess more credit cards make larger purchases. Another disadvantage of usage
of credit cards is that customers usually forget the amount spent on their purchases Soman, 1999. Accordingly, finance experts suggest that people should replace the usage of credit cards
with cash in difficult economic conditions Henegar et al., 2013 because it may lead to a compulsive buying behavior. Basd on the above, we offer the following hypothesis:
H
5
: Credit card usage has a significant positive effect on compulsive buying. Based on H
1
to H
5
, the conceptual framework is illustrated in figure 1.
Figure 1. Theoretical Framework
Attitudes towards money VS credit card usage behaviour
In the scope of consumer behavior credit cards is viewed as a mean to promote spending by simplifying transactions or to resolve urgent need of money Roberts Jones, 2001. For
example, Feinberg 1986 indicated that university students who saw credit cards logo in shopping centers were more likely to purchase and spend more money in that shopping centers.
According to Roberts Jones 2001, credit cards induce individuals to spend more money and, compared to cash, credit cards result in greater recklessness. For instance, the introduction of
credit cards into restaurants led to greater sales up to 50 to 100 percent than cash transaction Ritzer, 1995. Since, for many people, the money included in the credit card is unrealistic, they
attempt to purchase through credit cards than cash, and increase their debts Ritzer, 1995. Thus H
5
+ H
4
+ H
1
+
Compulsive buying
Power- prestige
Time- retention
Distrust
Anxiety
Credit card usage
H
2
- H
3
-
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credit card leads individuals to be involved in compulsive buying behavior. Accordingly, we offer the following hypotheses:
H
6
: credit card usage has more effect on compulsive buying than money attitudes dimensions do. Theory of Planned Behaviour
The present study utilizes theory of planned behaviour to predict consumers’ intention to use credit cards or cash. The theory was developed by Ajzen 1991 and suggests that attitudes
towards the behaviour, subjective norms, and perceived behavioural control affect actual behaviour. According to Ajzen 1991, attitudes refer to the degree to which an individual has a
positive or negative evaluation of the behaviour. Subjective norms refer to perceived social pressure to perform the behaviour Ajzen, 1991. Perceived behaviour control refers to the degree
to which whether performing a behaviour is easy or difficult Ajzen, 1991. In the present research, c
onsumers’ attitudes towards cash or credit cards are important so that some scholars e.g., Kaynak Harcar, 2001 have conducted researches on this topic. Indeed,
Attitudes are formed by significant beliefs that influence behaviour Rutherford DeVaney, 2009. In addition, Individuals who seek a comparable lifestyle with people around engage in
behaviours which are expected by reference groups Rutherford DeVaney, 2009. Moreover, according to Rutherford and DeVaney 2009, people who try to conform themeselves to the
social norm, they engage in impulse purchases which is easy to do with credit cards. Concerning perceived behavioural control, it should be noted that one way to achieve control over credit cards
is shopping for credit Hazembuller et al., 2007. Accordingly, attitudes towards money and credit card usage behaviour could be explained via theory of planned behaviour.
RESEARCH METHODOLOGY
Data Collection Data was collected data using a structured survey questionnaire. The questionnaire was first
pretested with a small sample size n=30 of the population under the study and experts in the area. In this stage, respondents were requested to comment on the overall structure and clarity of
the items of the questionnaire. According to Roscoe 1975, a sample size between 30 and 500 is appropriate for most
researches. Accordingly, we administered 423 questionnaires among credit card holders in Malaysia, based on convenience sampling method, from which 385 questionnaires were usable.
Data was collected in February of 2014. Measurement Instruments
The questionnaire consists of three sections. Section one is about background information of
respondents. The second section discovers respondents’ demographics profiles. Section three comprised of three subsections, namely consumer compulsive buying, credit card usage, and
attitude toward money. Compulsive buyers were identified using clinical screener developed by Faber and O’Guinn 1992. The seven point Likert scale asked the respondents to indicate their
agreement with the statement presents as well as the frequency of experiencing a behaviour with the statement present as “Always” to “Never”. For credit card usage, we employed a twelve-item
five- point Likert scale anchored by 1= “strongly agree” to 5= “strongly disagree” that were used
in Roberts and Jones 2001’s research. As for attitude toward money, we used the modified
version of Yamauchi and Templer’s 1982 29 MAS items to measure respondents’ attitudes towards money. Respondents were requested to respond on Seven-point Likert Scale ranging
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from always 1 to never 7. As we had two types of scale i.e., both five and seven point Likert scales, we converted all scales into five-point Likert scale in order to be able to do the
calculations.
DATA ANALYSIS
Background Information An overview of respondents characteristics are detailed in Table 1.
Table 1: Respondents’ characteristics and background information Respondents’ characteristics
Background information N
Percentage N
Percentage Gender
Male Female
187 198
48.6 51.4
Credit Card Yes
No 298
87 77.4
22.6
Age Group 18-22
23-27 28-32
33-77 38-41
More than 41 47
78 115
70 37
38 12.2
20.3 29.8
18.2
9.6 9.9
Purchase frequency Less than once
Once a month 2-3 times a month
4-5 times a month 6 times and more
119 83
101 48
34 30.9
21.6 26.2
12.5 8.8
Marital Status Single
Married 165
220 42.9
57.1 Credit
Card Ownership
Supplementary Principles
Both 174
208 3
45.2 54.0
.8
Race Malay
Chinese Indian
Other 306
35 21
23 79.5
9.0 5.5
6.0 Number of Credit
Card Only 1
2-3 4-5
More than 5 254
113 13
5 66
29.3 3.4
1.3
Education Level SPMSTPMCert
Diploma Bachelor Degree
Master PhD
98 124
125 30
8 25.5
32.2 32.5
7.8 2.0
Income Less than MYR3,000
MYR3,001 –
MYR5,000 MYR5,001
– MYR7,000
MYR7,001 –
MYR9,000 More
than MYR9,000
225 111
29 12
8 58.4
28.8 7.5
3.1 2.0
Exploratory Factor Analysis - Exploratory factor analysis was performed to see whether the same
four dimensions of money attitudes scales: 1 power-prestige, 2 retention-time, 3 distrust, and
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4 anxiety as suggested by Yamauchi and Templer 1982 emerged in this study. As expected the same four factors emerged in Malaysian respondents with a slight difference. All four
dimensions also demonstrate high reliability with Cronbach Alpha higher than .60. Six items loaded highly on the first factor labelled retention-time. The high score on this factor shows that
Malaysian respondents are really concern on how they manage their money. The second factor is similar to Yamau
chi and Templer’s power prestige, which denotes that Malaysians are similar to those in wealthier country which place a great emphasis towards money
as symbol of success and achievement. The third factor identified as anxiety shows that Malaysian respondents treat money as a source of anxiety. The fourth factor identified as distrust,
with 5 items loaded highest on this factor and represent a hesitant, suspicious, and doubtful attitude towards situations involved money. Respondents respond to all items were recorded on
seven-point Likert scale which ranged from always to never. Then, the scale of all items were converted into five-point Likert scale in order to run a regression analysis between them and
dependent variable i.e., compulsive buying which is based on a five-point Likert scale. Table 2 contains the final money attitude items and factors retained for the current study.
Reliability Test -
To assess internal consistency of constructs, we used the coefficient Cronbach’s alpha. As indicated in tab
le 3, all constructs involve a Cronbach’s alpha of higher than .6 which support the reliability of constructs. The coefficients are acceptable for further analysis.
Table 3. Cronbach’s alpha coefficient for each construct Construct
Cronbach’s alpha coefficient
Power-prestige .86
Retention-time .89
Distrust .77
Anxiety .80
Credit card usage .86
Compulsive buying .66
Hypotheses testing Multiple regression analysis was used to test the hypotheses. As indicated in table 4, power-
prestige has a significant positive effect t = 6.039 on compulsive buying P.001.
Accordingly, H1 is supported. In addition, Based on table 4, retention-time significantly negatively
t= -2.353 affect compulsive buying P.05. Thus, H2 receive a strong support.
However, table 4 indicates that distrust, anxiety, and credit card usage do not have a significant effect on compulsive buying. As a result, H3, H4, and H5 are not supported. Naturally, H6 is not
supported, as well.
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Table 4. Coefficients
a
Construct Unstandardized
Coefficients Standardized
Coefficients t
Sig. B
Std.Error Beta
Power- prestige
.294 .049
.303 6.039
.000 Retention-
time -.122
.052 -.117
-2.353 .019
Distrust .014
.056 .013
.248 .804
Anxiety .024
.053 .023
.446 .656
Credit card usage
.066 .041
.080 1.630
.104
Conclusion and Future Study To sum up, the perception of money as an instrument of power-prestige and retention-time tend to
reinforce compulsive buying behaviour. The results, however, showed that distrust, anxiety, and credit card usage are not significant predictors of compulsive buying among Malaysian
consumers. The results, up to a point, are consistent with several previous researches. For example, Phau and Woo 2008 indicated that power-prestige and credit card usage are significant
predictors of compulsive buying among Australian consumers. In addition, they found that there are no significant relationships between distrust, anxiety, and time-retention as independent
variables, and compulsive buying behavior as dependent variable. The findings provide marketers and policy makers with a few implications. Malaysian consumers
view money as an instrument of power and prestige which reinforce their self-esteem and
ascertain an identity for them. Compulsive buyers show this “exessive desire for things” because they meet their emotional needs for self-worth Faber OGuinn, 1988. In this sense,
organizations could do campains to appeal more customers. For example, they should attempt to do advertising campains to demonstrate image of status and prestige in order to capture more
customers. In addition, Malaysian consumers are concern about managing their funds. This, in turn, results in
decreasing compulsive buying. Thus, policy makers should attempt to teach on how to spend their money responsibly, and how to mange their funds. Faber and OGuinn 1988 stated that
compulsive buying behaviour is not just financially impeded but that compulsive buyers’ behavior is more psychological. Hence, consumer education programs can focus more on offering
skills rather than information. For example, In the USA, a number of organizations such as Visa and MasterCard educate people who are willing to own credit cads Norvilitis Maria, 2002.
As with any other research, the present study has a few limitations. First, our study is cross- sectional. Since, money attitude dimensions and credit card usage may change over time, our
findingas should be interpreted with caution. Future research could focus on the relationship between money attitude dimensions and credit card usage as indepndent constructs and
compulsive buying as dependent construct based on a longitudinal study for better understanding. Second, our study took credit card usage as an indipendent construct. Future study, however,
could take credit card usage as either mediating or moderating construct between money attitude dimensions and compulsive buying. Finally, the present study only examined the effect of money
attitude dimensions and credit card usage on compulsive buying. Future studies may address the effect of other factors e.g., online purchasing on compulsive buying behavior.
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Table 2: Exploratory Factor Analysis for Money Attitudes Item
Retentio n- time
Power prestige
Anxiety Distrust
I save to prepare for my old age I do financial planning for the future
I put money aside on a regular basis for the future I keep track of my money
I have money available in the event of another economic depression I follow a careful financial budjet
.864 .846
.843 .782
.760 .745
I must admit that I purchase things because I know they will impress others In all honesty, I own things in order to impress others
I use money to influence individuals to do things for me Although I should judge success on individuals by their deeds, I am more influenced by the amount of money they have
Individuals tell me I place too much emphasis on the amount of money a person has as a sign of success I seem to find that I show more respect for individuals with more money than I have
I behave as if money were the ultimate symbol of success .807
.801 .784
.751 .737
.703 .624
I show worrisome behaviour when it comes to money I shows signs of nervousness when I do not have enough money
I worry I will not financially secure It’s hard for me to pass up a bargain
I am bothered when I have to pass up a sale .824
.812 .710
.646 .493
I automatically say “I can’t afford it”, when I can or not When I buy something, I have suspicion that I have been taken advantage of
I argue and complain about the cost of things I buy I hesitate to spend money even on necessities
When I buys things I wonder if I could have gotten the same for less elsewhere .749
.661 .650
.629 .576
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The Survey of Online Mediation in South-East Asia
1
Olivia Tan Swee Leng Faculty of Management
Multimedia University, Cyberjaya Campus, Jalan Multimedia 63100 Cyberjaya, Selangor Darul Ehsan, Malaysia
oliviatanmmu.edu.my Shereen Khan
Faculty of Management Multimedia University, Cyberjaya Campus,
Jalan Multimedia 63100 Cyberjaya, Selangor Darul Ehsan, Malaysia shereen.khanmmu.edu.my
Rohani Abdul Rahim Faculty of Law
Universititi Kebangsaan Malaysia Bangi
Selangor rohaniyahoo.co.uk
ABSTRACT
We cannot deny that Information Communication Technology ICT is a necessity to commercial industry at this 21
st
century. Necessity is the mother of all creation and at the current global economy recession, many commercial industries seek recourse to the best alternate resolution
mechanism and practices to overcome commercial disputes. Costs and time became the major consideration factors whenever any commercial dispute arises. The widespread use of internet
technology in the late 90’s in South East Asia has heightened interest in online mediation. Over time, our technologic array has grown, many, if not most South-East Asia, mediators are already
using internet to some extent to assist in their mediation business promotion and practice. Many mediators use email to communicate with clients and colleagues and some even use webcamtele-
conferencing for this instance. This paper seeks to understand the nature of the online environment, and how this environment affects disputes and dispute resolution. Consequently, in
first part of this paper, advantages and disadvantages of traditional mediation will be briefly exposed before presenting the role of mediation through online mediation. Then, the three
successful areas of online mediation: business to consumer, business to business and domain names will be examined. Second part will be focused on legal and technical issues surrendering
online mediation. The challenges posed by online mediation will be studied separately. In addition, advantages of online mediation through concrete case studies will be presented. Third
part, the transformations ahead will be examined: that is to say if online mediation mechanisms are going to replace the traditional mediation or a complement mechanisms, what should be the
1
This paper has been presented at IAMA 2009 Conference: Resolution and Resillience: ADR in the Global Recession 29
th
-31
st
May 2009, Hotel Sofitel, Melbourne, Australia
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role of governments and other stakeholders in South-East Asia, and the impact of information technology on the alternate dispute resolution scene. This paper will explore the future of online
mediation in South-East Asia. Online mediation is an arena of exploration and experimentation. IT is a rapid changing process and hence, the emergence of effective online mediation will
require considerable efforts by the governments and other stakeholders creativities.
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“The mind is like a parachute-to use it we have to open it” THE GEOGRAPHICAL LOCATION AND HISTORY OF SOUTH EAST ASIA
To appreciate the present and recognize the future, one must know the past, enough to understand the culture of the people”
Definitions of Southeast Asia vary, but most definitions include the area represented by the countries:
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
East Timor All of the above are members of the Association of Southeast Asian Nations ASEAN,
except East Timor also known as Timor Leste, which is an ASEAN candidate state. The area, together with part of South Asia, was widely known as the East Indies or simply the
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Indies until the twentieth century. Christmas Island and the Cocos Keeling Islands are considered part of Southeast Asia though they are governed by Australia. Taiwan is
sometimes considered part of Southeast Asia as well as East Asia but it is not a member of ASEAN. Sovereignty issues exist over some islands in the South China Sea. Papua is
politically part of Southeast Asia through Indonesia, although geographically it is often considered as part of Oceania.
2
Even prior to the penetration of European interests, Southeast Asia was a critical part of the world trading system. The Ryukyu Kingdom often participated in maritime trade in
Southeast Asia. A wide range of commodities originated in the region, but especially important were such spices as pepper, ginger, cloves, and nutmeg. The spice trade
initially was developed by Indian and Arab merchants, but it also brought Europeans to the region. First the Portuguese, then the Dutch, and finally the British and French
became involved in this enterprise in various countries. The penetration of European commercial interests gradually evolved into annexation of territories, as traders lobbied
for an extension of control to protect and expand their activities. As a result, the Dutch moved into Indonesia, the British into Malaya, and the French into Indochina.
As a business hub since history, South East Asia has always been active in trading and involved in commercial industrial. The demand of the industry since then has been a
known fact and in case of commercial dispute amongst the businessman many resolves such dispute by the traditional method that is through the court system. This has created
backlog of cases in the courts. The government of each region has decided to introduce ways and process to overcome the backlogs and the alternate dispute resolution is the
mechanism to complement the court process. Alternate Dispute Resolution such as conciliationmediation, arbitration and adjudication has been introduced in South East
Asia legal systems some decade ago and yet this mechanism is always an ever changing tools due to changes in technology advancement and the needs of the people to resolve
dispute speedily and cost effective as possible. We are no longer living in the ice-age but in the 21
st
century whereby computer and Information Communication Technology ICT is a necessity for everyday usage
especially in the commercial world. These technological tools have made industries to realize that they cannot move forward without getting themselves involve in the
borderless technology era.
2
en.wikipedia.orgwikiSoutheast_Asia
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INTERNET USAGEPOPULATION DATA IN ASIA
3
INTERNET USERS AND POPULATION STATISTICS FOR ASIA
ASIA REGION Population
2012 Est. Pop.
World Internet Users
30-June-2012 Penetration
Population Internet
Users Facebook
31-Dec-2012 Asia Only
3,922,066,987 55.9
1,076,681,059
27.5 44.8
254,336,520
Rest of World
3,095,779,935 44.1
1,328,837,317
42.9 55.2
721,607,440 WORLD TOTAL
7,017,846,922 100.0
2,405,518,376 34.3
100.0 975,943,960
Source: Internet World Statistic
Fixed Wired Broadband per 100 inhabitants, ASEAN COUNTRIES Year
Singapore Malaysia
Thailand Vietnam
Brunei 2011