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This study assessed the Influence of income and savings on purchasing behaviour of working class Women in Niger State. The study had four (4) objectives among which are to assess the influence of income on purchasing behaviour of working class women in Niger State. related to these are four research questions and four null hypotheses. The research design adopted for this study was the descriptive survey design. Population of the study consisted of 3850 women working in 12 tertiary institutions located in Niger State. The researcher adopted a stratified random sampling technique to select 385 Sample; this number represents 10% of the entire population. The main Instrument for data collection was a structured Questionnaire titled Savings and Buying Behavior of Working Class Women Questionnaire (SBBWCWQ). Data collected was presented in tables and analysed using frequencies and percentages of the demographic variables and answering of research questions. Simple regression was used to test null hypotheses 1-3, and ANOVA was used to test null hypothesis 4. All the null hypotheses were tested at 0.05% level of significance. It was found that the level of income was statistically found to have significant influence on Purchasing Behavior of working class women in Niger State. This is because r-cal value of .775 > r-crit value of .088. This is also evident in the probability value of P+000 hence, the null hypothesis was rejected; the level of saving had significant influence on Purchasing Behavior of working class women in Niger State. This is because the r-cal value of .683 > r-crit value of 0.088, hence the null hypothesis was rejected; and Budgeting practices had significant influence on Purchasing Behavior of working class women in Niger State, r-cal value of .786> r-crit value of 0.088. Therefore the null hypothesis was rejected. The study concluded that income and savings had significant influence on purchasing behaviour of working class women in Niger State. It was recommended among others that Working class women in Niger State should base their purchases on their needs and not on their wants, because human wants are insatiable.




Declaration i
Certification ii
Dedication iii
Acknowledgements iv
Abstract vi
Table of Content vii
List of Tables x
Operational Definiton of Terms xi
1.1 Background To The Study 1
1.2 Statement Of The Problem 3
1.3 Objectives Of Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Significance Of Study 6
1.7 Basic Assumptions Of The Study 8
2.1 Theoretical Framework 11
2.2 Conceptual Framework 15
2.2.1 Concept Of Income 15
2.2.2 Concept Of Savings And Saving Attitudes 18
2.2.3 Concept Of Purchasing Behavior 21
2.2.4 Concept Of Budgeting 23
2.3 Women Income And Determinants 23
2.3.1 Managing Income 31
2.4 Causes Of Poor Savings Culture 32
2.4.1 Factors Accounting For The Low Level Of Savings In Nigeria 34
2.4.2 Determinants Of Personal Savings 37
2.4.3 Strategies For Improving Savings 38


2.5 Factors Affecting Purchasing Behavior 41
2.5.1 Buying Process Of The Consumer 52
2.5.2 Model Of Buying Decision Process 53
2.5.3 Relationship Between Income, Savings And Consumption Pattern 54
2.6 Reasons For Budgeting 55
2.6.1 Budgeting In Relation To Income And Savings 56
2.7 Review Of Related Empirical Studies 57
2.8 Summary Of Reviewed Literature 67
3.1 Research Design 69
3.2 Population Of The Study 70
3.3 Sample Size And Sampling Technique 71
3.4 Instrument For Data Collection 71
3.4.1 Validation Of The Instrument 72
3.4.2 Pilot Study 72
3.4.3 Reliability Of The Instrument 73
3.5 Procedure For Data Collection 73
3.6 Procedure For Data Analysis 73
4.1 Analysis Of Demographic Variables 75
4.2 Answers To Research Questions 76
4.2.1 Research Question One: 77
4.3 Test Of Null Hypotheses 81
4.4 Summary Of Major Findings 85
4.5 Discussion Of Findings 85
5.1. Summary 89
5.2 Conclusions 90
5.3 Contribution to Knowledge 91
5.4 Recommendations 91


5.5Suggestions For Further Studies 90







1.1         Background to the Study


Women‟s income is always considered as a supplementary income within the family. Many studies suggested that women‟s earnings mainly go to the general expenditure for the wellbeing of the family, such as food, fuel, and health care, among others other than for their personal needs. One‟s income determines how much one can afford to allocate to different needs and wants. All humans need a place to live, clothing and a balanced food for healthy growth and vitality. Economists refer to these as basic needs, which tend to get first priority. A person‟s income is limited, whether it comes from traditional employment, self-employment or a combination of these; even if one is a billionaire. Of course, someone who has a lower income will tend to spend a higher percentage of salary on basic needs. Households with higher incomes can afford to allocate more of their incomes, to discretionary purchases, such as vacations, cars, second homes, expensive clothing, choice schools for children, and many more.


According to Idyorough, (2005), gender discrimination is socially construed, that is, positive or negative disposition towards women is perpetuated and maintained in the family, peer groups and religious centers. He stated that women in the last decades have made significant progress in obtaining responsible positions in various organizations, this paradigm shift is as a result of laws governing equal opportunities and equal pay, fair employment practices, changing societal attitudes towards women in the work place, and organizations, desire to place qualified women in managerial positions to project a favorable image.


Women in the workforce earning wages or salaries are part of a modern phenomenon, yet the women have been challenged by inequality in the workforce. Not until now women have



been marginalized by cultural practices, combined with the longstanding religious beliefs that restricted women’s entry and participation in the workforce.


Women are naturally endowed with the capacity to do domestic duties and maternal roles while men are to be breadwinners. At the playground in those days in the village, the girl children gather leaves and sticks (used as firewood) to prepare play food while the male children use mud to build their little castles. This indirectly tells the girl of her future role in the upkeep of the home (Idyorough, 2000). There has been an unprecedented concern over the rights of women participating in economic activities in different parts of the world and prolonged governance process in Nigeria has created a fertile ground for gender inequality. Being the Africa‟s largest and most populous nation, Nigeria has witnessed a lot of contradictions and inconsistencies created by the application of Nigeria‟s three legal systems, namely, Islamic Sharia, customary law and common law, in its six geopolitical zones. Such inconsistencies have paved way for negative affectivity of women, thereby marginalizing women‟s participation in economic activities. Many scholars, feminist and advocates of gender balance have reported that women are greatly discriminated against and marginalized in Africa (Okokie, 2000).


Savings has an inverse proportional relationship to consumption (Nwachukwu and Egwaikhide, 2007). The more the savings habit of the woman worker, the less will be the consumption of the woman. A woman who spends everything she earns in a month cannot possibly save any of her earnings. Conversely, a woman who spends her earnings mainly on required items and that which had been earlier budgeted for could have excess to keep for future use. A change in the amount of savings leads to a change in the expenditure of an individual. If a person decides to save more out of his present income, he will spend less on comforts and






luxuries. Economists have established the functional relationship between income and savings as important source of the supply of investment (Nwakwo, Ewauim & Asoya, 2013).


Purchasing behavior according to Dawson and Sparks (2006) are set of attitudes that characterize the patterns of consumer choices, apart from the essential internal factors. Purchasing behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the purchasing behavior. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes a budget of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume (Dawson & Sparks, 2006).


1.2         Statement of the Problem


Traditionally, it is the duty, of the men to provide for the needs of the family while the women remain to take charge of family affairs. However, industrialization and civilization motivated women into labour market to earn income so as to support the men while saving some part for the future. This is essentially important to cushion against economic shock while providing a way for women to accumulate the means to purchase asset, satisfaction of their needs and the support of their families.


In an ideal situation, it is expected that the working class women should be able to save meaningfully to purchase productive assets and need based on their planned budgets. Unfortunately, observation has shown that most working class women are unable to save or lack savings. This may not be unconnected to the fact that most responsibilities of the family have


been shifted to the women willingly or unwillingly (Ayenew, 2014). He added a voice that 3



nowadays, economically life is tougher, women workers face higher food prices, energy cost and health care expenses and deficient savings increased anxiety among the working class women which often leads to health problems.


Women earning and savings meant for the satisfaction of their personal needs and household effects, and the inability of the working class women to save generates a lot of financial controversies in the home between the husband and the wife, or mother and children respectively. This may also necessitate them to purchase on credit hereby making them to go bankrupt and creating more troubles in their homes.


Mehoob and Tasneen, (2009) argued that women in urban areas have less saving behavior as they engage in payable jobs and spend more on fashion and aso ebi, which are subjected to periodic changes less house ownership and hence high cost of living, spending on luxury products and on families consumptions.


Similarly, the economy underpinning the relationship between men and women in working class household no longer holds, leaving working class women bearing the brunt of the institutional and structural change that constitute the current economic crisis. This inability to save has hindered the bargaining power and appropriate decision making for example a woman without cash at hand is more likely to buy goods that come her way on credit rather than her choice.


Working class women of tertiary institutions in Niger state earn income but this income has not been able to meet up with their demands due to pressure of family demand. As such their purchasing behaviour and savings has been affected. Despite all these, no previous studies have





conducted on the issue in Niger State, this has motivated the researcher to undertake a study so as to determine the influence of income and savings on purchasing behavior of working class women in Niger State, Nigeria.


1.3         Objectives of Study


The main objective of this study is to examine the influence of income and savings on purchasing behavior of working class women in Niger State, Nigeria. The specific objectives are to:-


  1. assess the influence of income level on purchasing behavior of working class women in Niger State.


  1. determine the role of savings on purchasing behavior of working class work in Niger state.


  1. ascertain the influence of budgeting practices on purchasing behavior among working class women in Niger state


  1. determine the relationship of income, saving and budgeting on purchasing behavior of working class women in Niger state.


1.4         Research Questions


Based on the specific objectives, the following research questions were raised:



  1. How does income level affect the purchasing behavior of working class women in Niger State?


  1. How does saving affect the purchasing behavior of working class women in Niger state?









  1. How does budgeting practices affect the purchasing behavior of working class women in Niger State?


  1. What is the relationship of income level, saving and budgeting have on purchasing behaviour of working class women in Niger state?


1.5         Research Hypotheses


HO1: Income level has no significant influence on purchasing behavior of working class women in Niger State.


HO2: Saving has no significant influence on purchasing behavior of working class women in Niger State.


HO3: Budgeting has no significant influence on purchasing behavior of working class women in Niger State.


HO4: Interaction of Income level, saving and budgeting has no significant effects on purchasing behavior of working class women in Niger State


1.6         Significance of Study


When published, the outcome of this research work will be of immense benefits to working class women and home makers, employers of labour, family members, Non – governmental Organizations (NGOs), curriculum developers, financial agencies, researchers, young women yet to be married and the society at large.


The end product of this research work will help the working class women to be able to strike a balance between their income level, saving level and the way and manner they purchase


goods and services because the study will provide valid data on influence of budgeting on 6



purchase hence will sensitize the workers on the need to budget before making purchases. This could be achieve through organizing of seminars and workshops for working class women.


The home makers can use this work as an enlightenment in planning their budgeting and executing the budget to meet their satisfaction. Employers of labour (public and private) will use the findings of this study as a guide in the placement and positioning of women in the work place so as to enable them or earn the same income their male counterparts who possess the same qualifications. The information about the study could be disseminated to the working class women through workshops, seminars and at conferences.


Family members can use this findings in understanding the predicaments of their mother and be able to advise them rightly and also in cutting down unnecessary expenses. The information about the study could get to the family members during family meeting or ceremonies.


Non – governmental Organization (NGOs) who are advocate of gender quality, girl – child education and women empowerment would use the findings of this study as basis for enlightenment in the area of their coverage and other parts of the country. This could be achieved through workshops and seminars.


Curriculum planners can use this study as an important guide for planning curriculum. Through workshops and conferences for curriculum planners for inclusion in the curriculum and implementing in curriculum for the students at all levels of education.










Financial institutions can use this study to understand the reasons for low women savers and the economic sectors who are directly or indirectly responsible for women like micro and small scale institutions. The financial could include the findings in their training programmes.


This study can serve as a data base for researcher‟s interested in the research to do further study on the issue. Through publication, this study can serve as a reference point on which other researches can be built.


Finally, spinsters ; that is young ladies who are not married yet, will use the findings of this study to adjust and learn how to save whenever they get married so as to enhance their purchasing behavior moderately. This work when published can be useful to the general society.


1.7         Basic Assumptions of the Study


For the purpose of this study, the following assumptions are made:



  1. Income level determines the extent to which working class women save.


  1. Income level influence purchasing behavior of working class women in Niger State.


  1. Level of income influence saving behavior of working class women in Niger state


  1. Income level and savings influence purchasing behavior of working class women in Niger state.


1.8         Delimitation of the Study


This study was delimited to the influence of income and savings on purchasing behavior among working class women in Niger State, Nigeria. It was delimited to all the women in tertiary institutions of learning in Niger State. The women include both academic and non academic staff of these institutions. There are twelve tertiary institutions of learning in Niger





State. These include both State and Federal government owned. The institutions are Federal University of Technology Minna, Ibrahim Badamasi Babangida University Lapai, College of Education Minna, Justice Fati Lami Abubakar College of legal and Advanced Studies, Minna, Niger State School of Midwifery Minna, School of Nursing Bida, Zungeru Polytechnic Zungeru, Federal Polytechnic Bida, Niger State College of Agriculture Mokwa, Federal College of Education, Kontagora, Niger State School of Health Technology Minna and New Gate College of Health Technology, Minna.


The study was delimited to all working class women in all tertiary Institutions in Niger State because they have similar pay package that is academic and non- academic working women.






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