Chapter 2

METHODOLOGY

This chapter presents the research method used, the respondents, the

instrumentation, administration of instruments, and the procedure of

analysis.

RESEARCH DESIGN

The researcher utilized the descriptive method using qualitative and

quantitative approaches in gathering information about the present condition.

Krathwohl, D. R., (2009), defined descriptive research as a purposive

process of gathering, analyzing, classifying, and tabulating data about

prevailing condition, practices, beliefs, processes, trends, and cause-effect

relationships and then making adequate and accurate interpretation about

such data with or without the aid of statistical methods.

A descriptive type of research according to Best (1993), involves the

collection of data to answer questions concerning the current status of the

subjects in the study. It is designed to gather information or conditions

existing at a particular period of time. The focus of the whole process is on

the discovery of theory on comparison or contrast of the findings.

The qualitative style is utilized to make a descriptive detail of the data

gathered. It is a purposive process of gathering, analyzing, classifying and

tabulating information about prevailing conditions, beliefs, processes, trends,

cause-effect relationships and then making adequate and accurate and

interpretations about such data with the aid of statistical method. It needs

smaller but focused samples in which data are categorized into patterns that

are used as primary basis for organizing and reporting results.

Qualitative research involves the examination, analysis and

interpretation of observations for the purpose of discovering underlying

meanings and patterns of relationships, including classifications of types of

phenomena and entities, in a manner that does not involve mathematical

models (Krathwohl, D. R., 2009).

Quantitative research gathers data in numerical form which can be

put into categories, or in rank order, or measured in units of

measurement. This type of data can be used to construct graphs and tables

of raw data. Quantitative research is a formal, objective, systematic process

in which numerical data are used to obtain information about the world.
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This research method is used: to describe variables; to examine

relationships among variables; to determine cause-and-effect interactions

between variables. (Burns & Grove, 2005)

SAMPLING TECHNIQUE

The researcher used the random sampling technique. For this

purpose, the total number of population of the NEU students from all levels

will have to be determined separately from the total number of NEU workers,

staffs and teachers. An equal percentage will be taken from each level of the

students and from the workers. To exact a more accurate result, a .05 error

of margin will be adopted.

RESPONDENTS

The principal respondent will be the NEU students, from elementary to

Junior and Senior High School, College and Graduate Students, Teachers,

Employees and Staff, full time and part time selected randomly.
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INSTRUMENTATION

In gathering the data relevant to the study, the researcher used

structured questionnaire as a survey instrument to elicit the pertinent

information from the principal respondents.

Questionnaire

The questionnaire is the most important instrument used in the study.

It is the major tool used by the researcher in gathering the significant data

from the respondents. The instrument was designed in a simple and clear

manner. The questionnaire was divided into two parts. Part I contained the

profile information on the respondents gender, age, monthly income,

capacity to save and consume. Part II is on viable to establish a thrift bank

for the NEU Community along deposit, interest on deposit, interest on loans

and loans rated on both on a five point scale of very important (5), important

(4), somewhat important (3), less important (2), and not important (1).

Construction

The instrument is an electronic sample of research based from the

readings cited in Chapter 2. The researcher submitted the first draft of the

questionnaire to the adviser for comments and suggestions. Then other two
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professionals in banking institutions to ensure the items would be relevant to

the study.

Validation

The questionnaire were referred to her adviser for connection or

modification. The results of the revision served as the basis for its

improvement and refinement said instruments were assessed in terms of its

construction, organization, structure and purpose.

Thirty (30) copies of the questionnaires was initially produced for pilot

testing. It was treated using Cronbachs Alpha using SPSS version 23. When

the revisions were incorporated enough copies of the questionnaire were

reproduced for the target respondents.

Structured research questionnaires will be formulated to measure

basic financial literacy on three contracts, namely, interest and loans rates,

inflation, risk awareness in investment.

Administration and Retrieval of Instrument

The survey questionnaires were distributed to the students during

school days to ensure majority attendance and presence of the students.

The researcher tap the assistance of the teachers in explaining to the

students the entire process from distribution and collection of the

questionnaires. The researcher briefly explain to the students the goals and

objectives and the relevance of the process being conducted. To enable the

researcher to gather the most reliable result and answer from the

respondents, interviews were also be resorted and questions from the

students was entertained.

With regard to teachers, workers and employees, the researcher allow

the questionnaires to be taken home for further study and evaluation by the

respondents. They were given ample time to reflect on the answers but

caveat will be given to them that they should not fabricate or tailored fit their

answers.

Opinions and suggestions was allowed and incorporated on the

analysis of the study. But these kind of answers from the respondents were

utilized only in assessing the correctness of the answers given in the

questionnaires and will be weighed in making the appropriate

recommendations.

Interview

The researcher conducted an interview using unstructured interview

techniques based on the SOP to obtain additional information. In this type,

the interviewee talked freely about the topics under consideration, which is
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where the interviewer (researcher). This was done for the purpose of the

gathering more information for the enrichment of the study.

Sources of Data

The primary sources of data for this study is through distributing and

conducting of questionnaire and interviews from the future target market and

depositors such as the NEU students and alumni, workers, employees and

staff. Interview will also be conducted on representatives Officers from

Central bank, Monetary Board, Philippine Deposit Insurance Company

(PDIC) and auditing firms from three different leading bank.

DATA ANALYSIS AND PROCEDURE

After collating all the data, the researcher made an in-depth analysis

and interpretation of the data using the following statistical tools:

1. Frequency and Percentage distribution was used to determine the

frequencies of the respondent responses using the formula:

P = (f/n) x 100

Where:

P = percentage of the distribution

f = frequency of an item or response

n = total number of respondents

2. Weighted Mean was used to interpret the results for problem statements

1 and 2, on the profile of the respondents and viability to establish a thrift

bank for the NEU Community along deposit, interest on deposit, interest

on loans and loans The responses of the respondents using assigned

points.

The formula is:

WM =
-------
N

Where: WM = Weighted Mean

X = Weight of each scale item value

f = frequency of the responses

N = number of respondents

The obtained weighted mean will be interpreted using the following

scales:

Obtained Weighted Mean Verbal Interpretation

2.50 3.49 Somewhat Important

1.50 2.49 Less Important

1.00 1.49 Not Important