Amounts of Money Student Spend on Drinks Per Week - Paper

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AMOUNTS OF MONEY STUDENT SPEND ON DRINKS PER WEEK
DETERMINANTS OF STUDENTS’ BEVERAGE SPENDING USING AN ECONOMETRICS MODEL

ABSTRACT

The objective of the present study was to investigate how beverage consumption among UUM students is different in some respects (e.g., age, gender, status, preference). In total, 59 university undergraduates were studied. The study is conducted in UUM (Northern University of Malaysia) at Kedah, Malaysia. By using econometrics model, factors that influence the amount of money spending on beverage consumption were determined. The students usually drink beverages 6.47 times for one week. Beverages were more preferred by boys than girls. However, the beverages consumption is not significantly different on different personal income of students. For student with partner will tend to purchase less compare to single. A student with better health condition will consume more beverages compare to others. It is suggested that undergraduate students and their parents should encourage limited consumption of beverage. Therefore, policies that limit student’s access to beverages at campus should be promoted.

Keywords: Beverages consumption, students spending, econometrics model.

I. INTRODUCTION

UUM have a lot of machines, booths, and stalls selling drinks. As UUM students, will they spend too much of money on drinks during the whole semester? From the investigation, we want to know about how much do they spend from their pocket money for a week on drinks. Due to limitation of income or pocket money of the student, the amount of money spend on drinks are important so that they won’t facing problem on their daily needs. Nevertheless, beverages are elective purchase which does not affect their normal daily life without consuming it. The opportunity cost of purchasing beverage can transfer to other more useful goods that may bring them more benefits when consume, such as literature books etc.

This paper looks at the student behaviour on purchasing beverages due to different factors that will influence their decision. This paper will carry out an econometrics model study which is conducted by collecting data through online survey targeted the UUM undergraduates. Those data will be put into SPSS to obtain the result and then make interpretation on those variables and make a clear conclusion about significant or not the variables are.

This paper is organized as follows. The next section contain theoretical framework. Section 3 contains literature review. The section 4 describes data. The next section contains descriptive statistics. For section 6, the econometrics model is set up. The next section will be result & finding. At last section concludes.

II. THEORETICAL FRAMEWORK

Family income; other extra income
Family income; other extra income

Consumer Theory
Price
Price
Law of Demand
Spending on drinks
Spending on drinks
Gender; age; weather; health; brand

Gender; age; weather; health; brand

Preference
Preference
Consumer Behaviour

Figure 2.1 A Conceptual Model of Factors Influencing the Consumers of Drinks

According to Jeffrey M.Perloff(2012), Law of Demand state that consumers demand more of a good the lower its price, holding constant tastes, the price of other goods, and other factors that influence the amount they consume. According Law of Demand, the demand curves is downward slopping from left to right where y-axis is price of good and x-axis is quantity of good consume. Hence, we can make a hypothesis that when the price of a beverage decrease, the demand of the beverage will increase, the spending of UUM students on drinks will increase.

According to Jeffrey M.Perloff(2012), the Income Effect in Consumer Theory is the change in the quantity of a good a consumer demands because of a change in income, holding price constant. Hence, we can make a hypothesis that the UUM students with a higher income will consume more...
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